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07-10-23 CC Reg Mtg Agenda Packet CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS MONDAY, JULY 10, 2023 7:00 P.M. 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 MEETING Oath of Office Scott Zerby, Council Member A. Pledge of Allegiance B. Roll Call Mayor Labadie___ Callies___ Maddy___ Sanschagrin___ Zerby___ C. Review and Adopt Agenda Attachments 2. CONSENT AGENDA The Consent Agenda is a series of actions which are being considered for adoption this evening under a single motion. These items have been reviewed by city council and city staff and there shall be no further discussion by the council tonight on the Consent Agenda items. Any council member or member of city staff may request that an item be removed from the Consent Agenda for separate consideration or discussion. If there are any brief concerns or questions by council, we can answer those now. Motion to approve items on the Consent Agenda & Adopt Resolutions Therein: A. City Council Work Session Minutes of June 26, 2023 Minutes B. City Council Regular Meeting Minutes of June 26, 2023 Minutes C. Approval of the Verified Claims List Claims List D. Approve Permanent Appointment of Public Works Director City Clerk/HR Director Memo E. Approve WAC Assessment Agreement 6040 Cajed Lane City Administrator Memo Resolution 23-069 CITY COUNCIL REGULAR MEETING AGENDA Page 2 F. Approve WAC Assessment Agreement 25700 Birch Bluff Rd City Administrator Memo Resolution 23-070 3. MATTERS FROM THE FLOOR This is an opportunity for members of the public to bring an item, which is not on tonight's agenda, to the attention of the Council. Anyone wishing to address the Council should raise their hand, or if attending remotely please use the “raise hand” function on your screen and wait to be called on. Please make your comments from the podium and identify yourself by your first and last name and your address for the record. Please limit your comments to three minutes. No discussion or action will be taken by the Council on this matter. If requested by the Council, City staff will prepare a report for the Council regarding the matter and place it on the next agenda. 4. REPORTS AND PRESENTATIONS 5. PARKS 6. PLANNING 7. ENGINEERING/PUBLIC WORKS 8. GENERAL/NEW BUSINESS A. Discuss SLMPD Joint Powers Agreement Term City Administrator Memo 9. STAFF AND COUNCIL REPORTS A. Staff B. Mayor and City Council 10. ADJOURN 2A CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL WORK SESSION MEETING COUNCIL CHAMBERS MONDAY, JUNE 26 , 2023 5:00 P.M. MINUTES 1. CONVENE CITY COUNCIL WORK SESSION MEETING Mayor Labadie called the meeting to order at 5:00 P.M. A. Roll Call Present. Mayor Labadie; Councilmembers Labadie, Callies, Maddy, and Sanschagrin; City Administrator Nevinski; B. Review Agenda Maddy moved, Sanschagrin seconded, approving the agenda as presented. Motion passed 4/0. 2. COUNCIL CANDIDATE REVIEWS/INTERVIEWS 5:00 P.M. Sarah St. Louis 5:15 P.M. Jason Allerding 5:30 P.M. Michelle DiGruttolo 5:45 P.M. Ian Jamieson 6:00 P.M. Conrad Nill 6:15 P.M. Pamela Magistad The Council allowed each candidate to introduce themselves and share some information about their background and experience. The Council asked questions of each applicant regarding their experience, their approach when persuasion is needed, and how they would deal with difficult individuals or situations. Mayor Labadie noted that Ian Jamieson had withdrawn from consideration for this position and recessed the meeting at 5:43 p.m. and reconvened at 6:01 p.m. The Council continued with the interview process for the remaining candidates. Mayor Labadie noted that they have about twenty minutes left where they can discuss this and noted that it was also on the regular agenda. City Administrator Nevinski clarified that the Council cannot take a vote during the Work Session, but could discuss this issue. He suggested that the Council narrow down the criteria of what they are looking for, because there have been so many interested candidates. Mayor Labadie noted that she thinks that is a good idea and asked the Council to share some of what they are looking for to fill the vacant Council position. CITY OF SHOREWOOD WORK SESSION COUNCIL MEETING MINUTES June 26, 2023 Page 2 of 2 The Council discussed what items they felt were relevant to this position including experience and the ability to competently fill the position; opportunity to bring in new leadership; strong communication skills; how they deal with people in a disagreement; and interest in doing this type of work in the City. Councilmember Sanschagrin stated that he feels that this was a really talented group of individuals and is hopeful that whoever is not appointed to fill the Council seat will consider serving the City in other capacities. 3. ADJOURN Callies moved, Maddy seconded, Adjourning the City Council Work Session Meeting of June 26, 2023, at 6:40 P.M. Motion passed 4/0. ATTEST: Paula Callies, Acting Mayor Sandie Thone, City Clerk 2B CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS MONDAY, JUNE 26, 2023 7:00 P.M. MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING Mayor Labadie called the meeting to order at 7:00 P.M. A. Pledge of Allegiance B. Roll Call Present. Mayor Labadie; Councilmembers Johnson, Callies, Maddy, and Sanschagrin; City Attorney Shepherd; City Administrator Nevinski; City Clerk/HR Director Thone; Finance Director Rigdon; Planning Director Darling; Park and Recreation Director Crossfield; Director of Public Works Morreim; and, City Engineer Budde Absent: None C. Review Agenda Sanschagrin moved, Maddy seconded, approving the agenda as presented. All in favor, motion passed. 2. CONSENT AGENDA Mayor Labadie reviewed the items on the Consent Agenda. Maddy moved, Sanschagrin seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. City Council Work Session Minutes of June 12, 2023 B. City Council Regular Meeting Minutes of June 12, 2023 C. Approval of the Verified Claims List D. Approve Seasonal Public Works Hire All in favor, motion passed. 3. MATTERS FROM THE FLOOR Alan Yelsey, 26335 Peach Circle, noted that he had reviewed the City’s letter to him and explained that he wanted to make some comments in response. He explained that he sees the current Council and staff as imperious and authoritarian. He stated that he felt not allowing Zoom to be used at meetings other than the Council was a suppression of democracy. He noted that the City frequently defends their actions by mentioning the League of Minnesota Cities but stated that group was just a lobbyist for a government and also suppresses democracy. He stated that he CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JUNE 26, 2023 Page 2 of 11 finds the three minute speaking rule and the Councils unwillingness to have a conversation with residents to be outrageous and disrespectful. He stated that the City is also refusing to take his request to do something about mosquitos throughout the City. He referenced the fees that the City charges for data and explained that it took nine months for him to get data from the City Clerk and noted that the State statute gives citizens the option for free inspection of electronic data. Mayor Labadie noted that the City Council phone numbers and e-mails are listed on the City website so residents can get in touch and have conversations. She noted that agenda item 9.A.2. will address the response Mr. Yelsey referenced to his past Matters from the Floor comments. 4. REPORTS AND PRESENTATIONS A. Tim Litfin, Minnetonka Community Ed – Tour de Tonka Update Tim Litfin, ,Minnetonka Community Education, stated that this is the Tour de Tonka’s eighteenth year. He noted that this years’ ride would be in memory of long-time volunteer Ron Kamps. He shared some statistics from their various rides and the major sponsors for 2023. He thanked the City for their partnership throughout the years for this event. He noted that there will be a medallion hunt this year where the finders will receive one free ride, he noted that there are still five medallions left to be found. Councilmember Sanschagrin asked how many volunteers the event needed. Mr. Litfin stated that they have about 600 volunteers involved every year. He noted that if anyone was interested in volunteering to get in touch via www.tourdetonka.org 5. PARKS A. Report by Commissioner Hirner on May and June Park Commission Meeting/Park Tours Mayor Labadie noted that Commissioner Hirner was not present tonight and asked Park and Recreation Director Crossfield if she could pass along any pertinent information to the Council. Park and Recreation Director Crossfield gave an overview of the recent Park Tours and some of the items that they noticed needed attention. 6. PLANNING A. Report by Commissioner Eggenberger on June 6, 2023 Planning Commission Meeting Planning Commissioner Eggenberger gave an overview of the June 6, 2023 Planning Commission meeting. He noted that he also wanted to share with the Council how much the Planning Commission appreciates the work done by Planning Director Darling. He explained that she provides information, but also expertise on every item that comes before them and is quick to correct them if they are traveling down the wrong path. He stated that in the times when the Planning Commission has disagreed with staff’s recommendation, she has made the decision to humble herself and get behind their recommendation. He explained that he just wanted the Council and staff to hear how much they appreciate Planning Director Darling. B. Variance to Setback from Side Yard Abutting a Public Street CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JUNE 26, 2023 Page 3 of 11 Location: 4805 Rustic Way Applicant: John and Amanda Lhotka Planning Director Darling gave an overview of the request for a variance to the side yard setback to allow a two-story home addition to be constructed. She reviewed the recommendation from staff and the different recommendation from the Commission which was to approve the variance, as requested. She noted that staff had received six e-mails in support of this request. She noted that there is one typographical error that was found within the resolution where it should state ‘an addition’ and not ‘a new home’. Councilmember Maddy stated that he had attended the Planning Commission where this item was discussed and agreed with the discussion related to practical difficulties because the way this is set up, this home essentially has three front yards so the boiler plate zoning code does not really reflect those kind of challenges. He stated that he would support this variance request. Maddy moved, Sanschagrin seconded, Adopting RESOLUTION NO. 23-062, “A Resolution Approving a Variance for a Setback from Side-Yard Abutting a Public Street for Property Located at 4805 Rustic Way.” All in favor, motion passed. 7. ENGINEERING/PUBLIC WORKS A. Approve Pavement Management Software Public Works Director Morreim reviewed the main goals of having pavement management software including the ability to reduce or eliminate visual and subjective inspections. He stated that he and City Engineer Budde had reviewed many options and are recommending moving froward with a Vaisala system. He reviewed the benefits of having pavement management software and reviewed the proposed pricing and annual renewal for the software. Mayor Labadie noted that she feels this may be a very useful tool that can assist the City make informed decisions and help residents understand the process better as well. Councilmember Sanschagrin asked what factors had knocked out the competing products in their analysis. Public Works Director Morreim stated that the other product had separate staff conducting the inspections, which still added a ‘human’ element rather than the AI technology that removes from the subjectivity. Councilmember Callies asked if the smart phone gathering pictures and data was constant or would just happen on an annual basis. Public Works Director Morreim explained that the pricing is based on the size of the network and noted that they could potentially do it three to four times per year. He explained that he was not sure if they would actually be doing it that frequently, but could, for example do it in spring and the fall or align it with certain projects and run it before and after in the area to pick up all the pertinent data. Councilmember Callies asked who would be monitoring the ‘control room’ with all the data that will be coming into the City. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JUNE 26, 2023 Page 4 of 11 Public Works Director Morreim explained that it will be hosted on Vaisala’s system, but the City can export the data. Councilmember Maddy asked how staff is proposing that this data be used with scheduled of long-term capital projects. Public Works Director Morreim stated that this system will detect things like rutting and alligator cracking which is essentially road failure and when the City would want to start looking at reconstruction rather than mill and overlay. Sanschagrin moved, Labadie seconded, Approving the contract for Vaisala Road AI and the one-time purchase of the compatible mobile device, as presented All in favor, motion passed. 8. GENERAL/NEW BUSINESS A. Appointment to Fill Council Vacancy City Administrator Nevinski reviewed the interview process for filling the vacant Council seat. He explained that the intent is for the Council to make a selection tonight and for this individual to be sworn in on July 10, 2023. Mayor Labadie explained that the Council had interviewed seven candidates and expressed her gratitude to everyone that applied to serve the City in this fashion. She stated that she feels all seven candidates were extremely qualified and encouraged those that are not selected for this appointment to consider applying for future openings on various Commissions. Councilmember Sanschagrin suggested that the Council each select their top three candidates and see if there is any overlap in their choices. The Council discussed various ways to share their thoughts on which direction they were leaning with the candidates. Councilmember Callies stated that her top three candidates were: Scott Zerby; Nat Gorham; and Jason Allerding. Mayor Labadie stated that her top three candidates were: Scott Zerby; Nat Gorham; and Jason Allerding. Councilmember Maddy stated that he was only going to choose two candidates because he volunteered for many years with two of them: Nat Gorham and Scott Zerby. Councilmember Sanschagrin stated his top three candidates were: Sarah St. Louis; Michelle DeGrutollo; and Nat Gorham. Mayor Labadie reviewed the top choices with Scott Zerby – receiving three votes and Nat Gorham receiving four votes. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JUNE 26, 2023 Page 5 of 11 The Council shared their reasons behind which candidate they would like to support and those that they would not support. Callies moved, Maddy seconded, Adopting RESOLUTION NO. 23-063, “A Resolution appointing Scott Zerby to Fill the Council Vacancy.” Motion passed 3-1 (Sanshagrin opposed). B. Review Council Assignments City Administrator Nevinski reviewed the vacancies that exist now that former Councilmember Johnson has left the City. Councilmember Maddy noted that he is happy to continuing serving on the Excelsior Fire Board. Councilmember Callies suggested that incoming Councilmember Zerby could serve as the Park Commission liaison. Mayor Labadie asked Councilmember Sanschagrin if he was willing to serve as the alternate for the Excelsior Fire Board. Councilmember Sanschagrin shared that he would be happy to serve in that capacity. Callies moved, Sanschagrin seconded, Adopting RESOLUTION NO. 23-064, “A Resolution Revising and Designating 2023 Annual Appointments to Certain Offices and Positions within the City of Shorewood, as discussed with Councilmember Maddy serving on the Excelsior Fire Board, Councilmember Maddy as alternate, and incoming Councilmember Zerby as the Park Commission liaison.” All in favor, motion passed. C. Approve Proposed SLMPD JPA City Administrator Nevinski stated that the JPA that governs the SLMPID is set to expire at the end of 2023. He reviewed the potential changes to the JPA that have been discussed. Councilmember Sanschagrin asked if it was premature for the Council to vote on this before Excelsior takes any action. Mayor Labadie stated that each city runs independently and believes they need to move ahead and take a vote. City Administrator Nevinski noted that there needs to be unanimity from the cities for the JPA and explained that the reason that they had included language related to ‘non-substantive’ changes was because of the concern raised by Councilmember Sanschagrin. Councilmember Maddy confirmed that approval of the JPA just needed to be the majority of the council in each member city. He asked how the new formula would effect the City’s proposed budget. He asked if the City would pay less or pay more. City Administrator Nevinski explained that he believed the City would be spending about a percentage point more under the new formula. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JUNE 26, 2023 Page 6 of 11 Mayor Labadie stated that she believed it was correct that the City would be spending a little bit more and explained that there was a working group that consisted of the four mayors as well as a councilmember from each city that have worked on this JPA. City Administrator Nevinski pointed out Section 7.B. on the JPA and noted that it spells out that the next adjustment would come in 2026 for the 2027, 2028, and 2029 budgets which means that for the coming year the City would still be operating under the current formula. Maddy moved, Sanschagrin seconded, Adopting RESOLUTION NO. 23-065, “A Resolution Approving a Revised Joint Powers Agreement Governing the South Lake Minnetonka Police Department.” All in favor, motion passed. D. Approve the South Lake Minnetonka Police Dept. 2024 Budget City Administrator Nevinski gave a brief overview of the proposed 2024 SLMPD budget options and explained that staff is recommending approval of option one. He explained the difficulty in approving a budget for the Police Department before the City has begun their own budget discussions. Police Chief Tholen gave a presentation outlining details of the proposed 2024 budget for the Department. He reviewed details of the proposed increases and decreases within the budget, including a proposed 8% wage increase. He outlined proposed increases in insurance costs and training/education. He reviewed the Public Safety Bill Funding from SF 2416/HF 1938 and the expected amounts for each city which were based on population. Mayor Labadie expressed her appreciation to Police Chief Tholen and Senator Morrison for their advocacy in getting the State to include JPAs and smaller cities in this bill for available funding. Police Chief Tholen reviewed the eligible uses and restrictions for use of the Public Safety Bill funding. He reviewed his proposed budget and explained the 6.3% increase over last year. Councilmember Maddy asked if there was a time restriction on when the City could dispense the Public Safety funding from the State. Police Chief Tholen stated that they have not found one, so they do not think there is a restriction. He shared various examples of ways that cities may be able to use some of the Public Safety bill funds to offset the proposed budget increase. Councilmember Callies noted that the amount of money dedicated to uniforms seems high to her. Police Chief Tholen reviewed the expenses involved in outfitting a police officer and noted that it is more than a uniform top and bottom and includes other accessories. He noted that he is hoping that this amount will decrease as they retain officers because outfitting a brand-new officer is more expensive than maintaining a uniform for an existing officer. City Administrator Nevinski reiterated that the Council will have the opportunity to decide how to support this budget amount at a later time which means the decision on using levy funds or the Public Safety Bill funds does not need to be made tonight. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JUNE 26, 2023 Page 7 of 11 Councilmember Callies noted that she was comfortable supporting option one, with an increase in the budget of 6.3%, as proposed. Councilmember Sanschagrin stated that he would also support this proposed increase. Mayor Labadie stated that she also supported the increase and pointed out that the Police Department is fully staffed. Councilmember Maddy stated that having this one time money from the State come in at the same time, makes this choice much easier, but noted that Shorewood supports the Police Department, so he would also concur with support for option one. Labadie moved, Maddy seconded, Adopting RESOLUTION NO. 23-066, “A Resolution Approving the 2024 Annual Operating Budget of the South Lake Minnetonka Police Department.” All in favor, motion passed. E. Bond Sale Results Shannon Sweeney, David Drown Associates, explained that in order to finance the Birch Bluff Road and rehabilitation of Lift Station #11, there was a bond sale scheduled for June 26, 2023. He noted that Standard and Poors reaffirmed the City’s AA+ rating with a stable outlook. He explained that the City had received six bids earlier today for the sale of the City’s bonds with the low bid submitted by Robert W. Baird and Company and gave a brief overview of the spread of the bids, which he would describe as narrow. He stated that they are recommending that the City approve the awards resolution that awards the sale of the bonds to Robert W. Baird and Company. Councilmember Sanschagrin thanked Mr. Sweeney and City staff for putting in the work that helped get a good rate and to keep the City’s debt low. He explained that he planned to abstain from voting on this item because he is concerned about the level of debt the City is taking on. He stated that he does not want to vote no, but does not think this is a good use of taxpayer funds. Mayor Labadie asked for an explanation from City Attorney Shepherd on what abstaining to vote meant, when there was not a conflict of interest. City Attorney Shepherd explained that Councilmember Sanschagrin can abstain from this vote, but noted that even though it was not a ‘no’ vote, it would basically be counted in the ‘no’ column because the Council needs three affirmative votes in order for this to pass. Callies moved, Maddy seconded, Adopting RESOLUTION NO. 23-067, “A Resolution Providing for the Issuance and Sale of $5,645,000 General Obligation Street Reconstruction and Utility Revenue Bonds, Series 2023A, Pledging for the Security Thereof Net Revenues and Levying a Tax for the Payment Thereof to Robert W. Baird and Company.” Councilmember Maddy stated that these spending decisions happened before he was on the Council but explained that this was easy for him to support because the City owes the money and this is the most cost effective manner in which to do that. He stated that Shorewood is paying their bills and finishing up what was already started. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JUNE 26, 2023 Page 8 of 11 Motion passed 3-0-1 (Sanschagrin abstained). F. Approve New Retail Liquor License – Red’s Savoy Pizza at 19215 State Highway 7 City Clerk/HR Director Thone gave an overview of the request by Red’s Savoy Pizza for a new Retail Liquor License. She noted that the applicant had passed the background check, submitted all the licensing fees, and met the insurance liability requirements and staff is recommending approval. Reed Daniels, applicant, shared that he was excited to be able to be part of the City and noted that this has been in the works for a long time. Sanschagrin moved, Maddy seconded, Adopting RESOLUTION NO. 23-068, “A Resolution for Red’s Savoy Pizza Wine/3.2 Percent Malt Liquor License.” Councilmember Maddy stated that the applicant is a childhood friend of his, but noted that he did not have a conflict of interest. All in favor, motion passed. G. Adult use Cannabis Discussion City Administrator Nevinski gave a general overview of the legislation that has been passed allowing for adult use cannabis. He noted that the City is no where near ready to establish regulations or make changes in zoning, but staff is looking for some general direction from Council on how they would like to proceed. He introduced McKaia Dykema, Campbell Knutson, and explained that she and City Attorney Shepherd would help guide the Council through this discussion. McKaia Dykema, Campbell Knutson, gave a presentation that outlined the history and background of the newly enacted legislation that legalizes cannabis. She explained that there are still lots of practical details that need to be worked out by the regulators. She gave a high- level explanation of the timeline and the use that this legislation actually authorized and noted that there is still no change to federal laws. She noted that a city may adopt an ordinance that makes use of cannabis in public as a petty misdemeanor. She explained some of the exemptions for legal use by City employees and reviewed some of the commercial regulation details regarding categories and classifications by potency. She noted that cannabis businesses are subject to general business regulations, such as zoning. She noted that for retail sales the businesses will be subject to State licensing and regulations and noted that some home growing is allowed. She explained that a city cannot set up another separate license which means the licensing will only take place through the State process. She stated that the State is creating a new regulatory agency called Office of Cannabis Management and explained that under this new legislation, cities may not ban use, possession, or transportation or prohibit businesses from operating if they are licensed by the State. City Attorney Shepherd reminded the Council that this is simply the first discussion on this topic and the Council would not be asked to make any decisions tonight. He explained that local registration of these businesses are required and noted that the City can choose which zoning districts will allow cannabis businesses, but cautioned that the City cannot ban them. He reviewed CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JUNE 26, 2023 Page 9 of 11 the parameters surrounding hours when sales are allowed. He noted that the City can adopt a moratorium on high potency cannabis businesses until January 1, 2025. He noted that the Office of Cannabis Management has indicated that they will not offer licenses until the first quarter of 2025 anyway, so a moratorium may not serve much of a practical purpose. He reviewed the local registration requirements, enforcement, and compliance and reviewed the options available for the City to consider. Councilmember Callies asked if the City could extend the current moratorium. City Attorney Shepherd stated that the City cannot extend the moratorium on hemp derived THC products. Councilmember Callies stated that if the City can limit this type of business by only allowing one and controlling that with a zoning requirement, she does not think this is worth spending a ton of time on. She noted that Shorewood does not have a lot of commercial businesses and would not imagine that this will end up bringing in cannabis stores everywhere. Mayor Labadie asked if the same restrictions for things like distance from a school would apply to the low-potency products. She asked if the language school/tutoring center in the Holiday strip mall counted as a school and noted that it is just a few doors down from the tobacco shop. City Attorney Shepherd stated that he was not sure and they would have to look into that more closely. Mayor Labadie asked if there was a certain amount of land or acreage needed in order for someone to cultivate or grow cannabis. City Attorney Shepherd stated that the Office of Cannabis Management will make the decision on whether someone qualifies as a grower or cultivator. Councilmember Callies noted that it appears as though the only thing the City can regulate is with zoning and the moratorium would not be all that helpful. Mayor Labadie stated that she believes from the presentation that the City needs to at least allow one of this type of business and asked if the City could cut it off after that one which would essentially make it a first come, first served scenario. City Attorney Shepherd stated that was correct because of the City’s population size. Councilmember Sanschagrin noted that Police Chief Tholen prefers harmonized regulations across the cities they serve and suggested that the City may want to work with the SLMPD and the other member cities. City Administrator Nevinski explained that one thing he heard at the League of Minnesota Cities conference was that eighty percent of the taxes derived from these sales will go to the State, ten percent to the County, and ten percent to the City. The Council discussed allowing the moratorium to expire, the possibility of a short-term licensing scheme, the number of businesses that will be interested in these products, and ways to regulate this via zoning decisions. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JUNE 26, 2023 Page 10 of 11 City Attorney Shepherd suggested that staff bring this back for additional discussion in August or September with some thoughts of ways to regulate these sales via zoning. Mayor Labadie asked how difficult it will be, after the moratorium expires, and the hemp derived THC products are allowed to be sold in the City, to stop a business from selling these products and asked if that would be based on violations. City Attorney Shepherd explained that these businesses will be licensed by the State so the City’s ability to control it will be almost non-existent. There was consensus of the Council to direct staff to look at ways to restrict the sale of high potency cannabis via zoning and potentially just allow one business per 12,500 residents. Mayor Labadie asked them to bring back more information about the definition of what constitutes a ‘school’ for the next discussion as well. 9. STAFF AND COUNCIL REPORTS A. Staff 1. Spring Clean-Up/Shred Event Update Mayor Labadie stated that she believes the staff memo was self-explanatory. 2. Matters from the Floor – Response to Alan Yelsey City Administrator Nevinski stated that Mr. Yelsey had asked a number of questions at the last City Council meeting that he had responded to in the memo. Mayor Labadie stated that she felt it was a well prepared memo. Other Park and Recreation Director Crossfield noted that Commissioner Levy had submitted her resignation from the Parks Commission because she is moving out of the City. She stated that the Silverwood Park grand opening took place on June 20, 2023 and was well received. She noted that coming up they have the Concert in the Park, Movie in the Park, Tai Chi in the Park and Safety Camp events. She noted that there are flyers for all of the events available in the lobby and also information available online. Mayor Labadie suggested that when staff informs the candidates about the Council’s appointment to fill the Council seat that they mention the opening on the Parks Commission and invite them to apply. Public Works Director Morreim stated that he is hoping to have the second seasonal employee starting on July 5, 2023. He stated that this past weekend there were a number of employees that were dealing with power outages and downed trees. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JUNE 26, 2023 Page 11 of 11 City Engineer Budde stated that the trail has been paved for the Smithtown Pond project so the final item will just be some clean-up/restoration. He stated that on Wednesday, at the intersection of Strawberry Lane and Smithtown Road, they will be restricting traffic down to one lane in order to do some utility work in preparation for a watermain connection. Planning Director Darling stated that she is expecting to hear the decision on the outdoor recreation grant through the DNR by the end of June. She stated that the City submitted an item for the Governor’s capital budget bonding bill but will not hear about that decision until closer to the end of the year. City Attorney Shepherd noted that he will be going on vacation beginning tomorrow through July 8, 2023, but explained that City staff is aware of who should be contacted at his office while he is gone. City Administrator Nevinski noted that he had attended the League of Minnesota Cities conference and noted that the discussion covered the many legislative changes that have come out of this session. B. Mayor and City Council Councilmember Maddy asked if the City had heard back from Tonka Bay about the development approval for where the chocolate shop is now. Planning Director Darling stated that it was not unanimous, but Tonka Bay did approve the project. Mayor Labadie stated that she had attended the Silverwood Park Grand Re-opening event and wanted to commend the Public Works Department for getting the park cleaned up and Park and Recreation Director Crossfield and her staff for their work on this event. She stated that it was well attended and noted that the balloon guy was a big hit. 10. ADJOURN Maddy moved, Sanschagrin seconded, Adjourning the City Council Regular Meeting of June 26, 2023, at 10:01 P.M. Motion passed. ATTEST: Paula Callies, Acting Mayor Sandie Thone, City Clerk Item 2D City Council Meeting Item Title/Subject: Approve Permanent Appointment of Public Works Director Matt Morreim Meeting Date: July 10, 2023 Prepared by: Sandie Thone, City Clerk/Human Resources Director Reviewed by: Marc Nevinski, City Administrator Attachments: None Background: Pursuant to Shorewood Personnel Policy Section 3.08 All new, rehired, promoted, or reassigned employees shall complete a six (6) month probationary period upon assuming their new positions. This period shall be used to observe the employee’s work habits and ability to perform the work they are required to do. On January 9, 2023, Matt Morreim began his employment with the City of Shorewood as Public Works Director. Matt has proved to be a valuable member of the team and has made significant contributions in his first six months of employment in the Public Works department and in the entire organization. Matt possesses progressive leadership skills and the application of those skills shows in the current culture of the public works team. Matt is professional and gets along well with team members. Matt exemplifies the City’s core values of Respect, Integrity, Communication, Positive Attitude, Teamwork, and Responsiveness in all he does. Matt has exceeded all expectations in the first six months of his employment. Matt is enthusiastically being recommended for a permanent appointment in the capacity of Public Works Director for the City of Shorewood. Financial Considerations: As delineated below. Action Requested: Staff respectfully recommends the city council approve Matt Morreim’s permanent appointment at the completion of his 6-month anniversary as of July 9, 2023 based on his performance to date and his demonstration of the City’s desired core values and attributes. Motion, second and simple majority vote required. 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 City Council Meeting Item Item Title/Subject: Adopt Resolution Approving a Special Assessment 2E 6040 Cajed Lane Meeting Date: July 10, 2023 Prepared by: Marc Nevinski, City Administrator Attachments: Assessment Agreement Resolution Approving and Adopting a Special Assessment Background: To assist in managing the cost of connecting to City water, the City allows homeowners to request the water access charge (WAC) of $10,000 be specially assessed to their property and paid through property taxes through an assessment agreement. The owners of 6040 Cajed Lane wish to enter into such an assessment agreement pursuant to Minnesota Statutes Chapter 429. The special assessment will be certified to taxes and will be payable in five annual installments beginning in 2024 at an interest rate of 5.0%. The assessment will run with the property and the owner may pay off the assessment balance at any time. The owners also waive any rights to appeal the assessment, and the agreement will be recorded against the property. Financial or Budget Considerations: Connecting to City water provides revenue which supports the City’s water utility fund. Action Requested: Motion to adopt the resolution approving and adopting a special assessment agreement for 6040 Cajed Lane Shorewood, Minnesota and authorizing the Mayor to sign the assessment agreement. 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 ASSESSMENT AGREEMENT THIS AGREEMENT is made this 10th day of July, 2023 by and between the City of Shorewood (SHOREWOOD), a municipal corporation organized under the laws of the State of Minnesota, located at 5755 Country Club Road, Shorewood, MN 55331 and Eric Magistad and Pamela Magistad (OWNER). RECITALS WHEREAS, the OWNER is the owner of the real property located at: 6040 Cajed Lane, Shorewood, MN, 55331; PID: 32-117-23-33-0011, legally described as follows: (“SUBJECT PROPERTY”) Lot 2, Block 3, Afton Meadows W HEREAS, the OWNER desires to connect to the municipal water supply; and, WHEREAS, the present Water Access Charge is $10,000; and WHEREAS, the OWNER requests that the full amount of the Water Access charge be assessed against the SUBJECT PROPERTY pursuant to Minn. Stat. Ch. 429. AGREEMENT NOW THEREFORE, pursuant to the mutual agreements provided herein, it is agreed by and between the CITY and the OWNER as follows: 1. The OWNER represents and warrants that he is the OWNER of the SUBJECT PROPERTY and that he has full legal authority to encumber the SUBJECT PROPERTY and that as of the date of the execution of this agreement, the OWNER has fee title to the SUBJECT PROPERTY subject only to the liens, interests or encumbrances of record. 225849v1 2. The OWNER understands and requests that the City levy the Water Access Charge assessed against the PROPERTY in the amount of $10,000.00 (“Assessment”). 3. The OWNER understands and agrees that SHOREWOOD will provide that the Assessment is payable in five (5) annual installments without deferment and will bear an interest rate of five (5.0) percent per annum. The Assessment shall be deemed adopted on the date this Agreement has been signed by all parties. The installments shall begin with taxes paid in 2024 and collected with the ad valorem taxes at the times due as determined by Hennepin County. 4. The OWNER agrees that the covenants, waivers and agreements contained in this Agreement shall bind the successors and assigns of the OWNER and shall encumber the PROPERTY in accordance with the agreements described herein. 5. The OWNER its successors and assigns, waives any and all procedural and substantive objections to the Assessment including but not limited to public hearing requirements and any claim that the assessment exceeds the benefit to the Subject Property. Property Owner waives any appeal rights otherwise available pursuant to Minn. Stat. § 429.081. 6. The OWNER, its successors and assigns, hereby unconditionally releases and forever discharges the City, its elected officials, employees, agents and insurers from any and all claims and causes of action of whatever kind or nature that is in any way connected with the Assessment. This Agreement shall be binding upon Property Owner and its successors and assigns. This Agreement shall run with the land and may be recorded against the title to the Subject Property. \[Remainder of page is intentionally left blank. Signature pages follow.\] 225849v1 OWNER By: ______________________________________ Date: _________________________ By: ______________________________________ Date: _________________________ CITY OF SHOREWOOD By: ______________________________________ Date: _________________________ Its _____________________________ By: ______________________________________ Date: _________________________ Its _____________________________ STATE OF MINNESOTA ) ) SS: COUNTY OF HENNEPIN ) The foregoing ASSESSMENT AGREEMENT dated _________________________ was sworn and subscribed before me in person this ____ day of _________________, 20__ by ___________________ _______________________ and _______________________________. __________________________________ Notary Public STATE OF MINNESOTA ) ) SS: COUNTY OF HENNEPIN ) The foregoing ASSESSMENT AGREEMENT dated _________________________ was sworn and subscribed before me in person this ____ day of _________________, 20__ by Jennifer Labadie, Mayor, and by Sandie Thone, City Clerk of the City of Shorewood (a Minnesota Municipal Corporation), who are personally known to me, on behalf of the Corporation and pursuant to the authority of the City Council. ____________________________________ Notary Public 225849v1 CITY OF SHOREWOOD RESOLUTION 23-069 A RESOLUTION APPROVING AND ADOPTING A SPECIAL ASSESSMENT WHEREAS, Eric Magistad and Pamela Magistad, (“Owner”) has requested that the Shorewood City Council specially assess water access charges that affect Owners’ property at 6040 Cajed Lane, Shorewood, Minnesota (PID 32-117-23-33-0011) and legally described in Exhibit A attached hereto (“Subject Property”); and WHEREAS, the City has received the following signed Assessment Agreement, Exhibit B attached hereto, waiving all applicable assessment procedural requirements and requesting to be assessed for the water access charge in the amount itemized therein for the Subject Property. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD: 1. The signed Assessment Agreement is hereby accepted and approved. 2. The water access charge amounting to $10,000.00 is hereby adopted and shall constitute a special assessment against the Subject Property and hereby made part of this Resolution by reference and that the tract of land therein included is hereby found to be benefited by the charge and connection to municipal water in the amount of the assessment levied against it. 3. Such assessment shall be payable in equal annual installments without deferment extending over a period of five (5) years, the first of the installments to be payable with taxes paid in 2024 and shall bear the interest rate of 5.0% per annum. 4. The Owners, at any time prior to certification of the assessment to the County Auditor, may pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City, except that no interest shall be charged if the entire assessment is paid within thirty (30) days from the adoption of this Resolution; and such owner may at any time thereafter, pay the City the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. The Owners may also at any time prior to November 15, of any year, pay the remaining unpaid principal balance with interest accrued to December 31 of the year in which such prepayment is made. 225851v1 5. The City Clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of the County. th Adopted by the City Council of the City of Shorewood this 10 day of July, 2023. ___________________________ Acting Mayor Paula Callies ATTEST ______________________________ Sandie Thone, City Clerk 225851v1 Exhibit A Legal Description Lot 2, Block 3, Afton Meadows 225851v1 Exhibit B \[Assessment Agreement\] 225851v1 City Council Meeting Item Item Title/Subject: Adopt Resolution Approving a Special Assessment 2F 25700 Birch Bluff Road Meeting Date: July 10, 2023 Prepared by: Marc Nevinski, City Administrator Attachments: Assessment Agreement Resolution Approving and Adopting a Special Assessment Background: To assist in managing the cost of connecting to City water, the City allows homeowners to request the water access charge (WAC) of $10,000 be specially assessed to their property and paid through property taxes through an assessment agreement. The owners of 25700 Birch Bluff Road wish to enter into such an assessment agreement pursuant to Minnesota Statutes Chapter 429. The special assessment will be certified to taxes and will be payable in five annual installments beginning in 2024 at an interest rate of 5.0%. The assessment will run with the property and the owner may pay off the assessment balance at any time. The owners also waive any rights to appeal the assessment, and the agreement will be recorded against the property. Financial or Budget Considerations: Connecting to City water provides revenue which supports the City’s water utility fund. Action Requested: Motion to adopt the resolution approving and adopting a special assessment agreement for 25700 Birch Bluff Road Shorewood, Minnesota and authorizing the Mayor to sign the assessment agreement. 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 ASSESSMENT AGREEMENT THIS AGREEMENT is made this 10th day of July, 2023 by and between the City of Shorewood (SHOREWOOD), a municipal corporation organized under the laws of the State of Minnesota, located at 5755 Country Club Road, Shorewood, MN 55331 and Edward Wipson Jr. and Nancy MacDonald (OWNER). RECITALS WHEREAS, the OWNER is the owner of the real property located at: 27500 Birch Bluff Road, Shorewood, MN, 55331; PID: 29-117-23-44-0032, legally described as follows: (“SUBJECT PROPERTY”) Lot 6 And West 12 Ft of Lot 5, Birch Bluff Upper Minnetonka W HEREAS, the OWNER desires to connect to the municipal water supply; and, WHEREAS, the present Water Access Charge is $10,000; and WHEREAS, the OWNER requests that the full amount of the Water Access charge be assessed against the SUBJECT PROPERTY pursuant to Minn. Stat. Ch. 429. AGREEMENT NOW THEREFORE, pursuant to the mutual agreements provided herein, it is agreed by and between the CITY and the OWNER as follows: 1. The OWNER represents and warrants that he is the OWNER of the SUBJECT PROPERTY and that he has full legal authority to encumber the SUBJECT PROPERTY and that as of the date of the execution of this agreement, the OWNER has fee title to the SUBJECT PROPERTY subject only to the liens, interests or encumbrances of record. 225849v1 2. The OWNER understands and requests that the City levy the Water Access Charge assessed against the PROPERTY in the amount of $10,000.00 (“Assessment”). 3. The OWNER understands and agrees that SHOREWOOD will provide that the Assessment is payable in five (5) annual installments without deferment and will bear an interest rate of five (5.0) percent per annum. The Assessment shall be deemed adopted on the date this Agreement has been signed by all parties. The installments shall begin with taxes paid in 2024 and collected with the ad valorem taxes at the times due as determined by Hennepin County. 4. The OWNER agrees that the covenants, waivers and agreements contained in this Agreement shall bind the successors and assigns of the OWNER and shall encumber the PROPERTY in accordance with the agreements described herein. 5. The OWNER its successors and assigns, waives any and all procedural and substantive objections to the Assessment including but not limited to public hearing requirements and any claim that the assessment exceeds the benefit to the Subject Property. Property Owner waives any appeal rights otherwise available pursuant to Minn. Stat. § 429.081. 6. The OWNER, its successors and assigns, hereby unconditionally releases and forever discharges the City, its elected officials, employees, agents and insurers from any and all claims and causes of action of whatever kind or nature that is in any way connected with the Assessment. This Agreement shall be binding upon Property Owner and its successors and assigns. This Agreement shall run with the land and may be recorded against the title to the Subject Property. \[Remainder of page is intentionally left blank. Signature pages follow.\] 225849v1 OWNER By: ______________________________________ Date: _________________________ By: ______________________________________ Date: _________________________ CITY OF SHOREWOOD By: ______________________________________ Date: _________________________ Its _____________________________ By: ______________________________________ Date: _________________________ Its _____________________________ STATE OF MINNESOTA ) ) SS: COUNTY OF HENNEPIN ) The foregoing ASSESSMENT AGREEMENT dated _________________________ was sworn and subscribed before me in person this ____ day of _________________, 20__ by ___________________ _______________________ and _______________________________. __________________________________ Notary Public STATE OF MINNESOTA ) ) SS: COUNTY OF HENNEPIN ) The foregoing ASSESSMENT AGREEMENT dated _________________________ was sworn and subscribed before me in person this ____ day of _________________, 20__ by Jennifer Labadie, Mayor, and by Sandie Thone, City Clerk of the City of Shorewood (a Minnesota Municipal Corporation), who are personally known to me, on behalf of the Corporation and pursuant to the authority of the City Council. ____________________________________ Notary Public 225849v1 CITY OF SHOREWOOD RESOLUTION 23-070 A RESOLUTION APPROVING AND ADOPTING A SPECIAL ASSESSMENT WHEREAS, Edward Wipson Jr. and Nancy MacDonald, (“Owner”) has requested that the Shorewood City Council specially assess water access charges that affect Owners’ property at 25700 Birch Bluff Road, Shorewood, Minnesota (PID 29-117-23-44-0032) and legally described in Exhibit A attached hereto (“Subject Property”); and WHEREAS, the City has received the following signed Assessment Agreement, Exhibit B attached hereto, waiving all applicable assessment procedural requirements and requesting to be assessed for the water access charge in the amount itemized therein for the Subject Property. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD: 1. The signed Assessment Agreement is hereby accepted and approved. 2. The water access charge amounting to $10,000.00 is hereby adopted and shall constitute a special assessment against the Subject Property and hereby made part of this Resolution by reference and that the tract of land therein included is hereby found to be benefited by the charge and connection to municipal water in the amount of the assessment levied against it. 3. Such assessment shall be payable in equal annual installments without deferment extending over a period of five (5) years, the first of the installments to be payable with taxes paid in 2024 and shall bear the interest rate of 5.0% per annum. 4. The Owners, at any time prior to certification of the assessment to the County Auditor, may pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City, except that no interest shall be charged if the entire assessment is paid within thirty (30) days from the adoption of this Resolution; and such owner may at any time thereafter, pay the City the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. The Owners may also at any time prior to November 15, of any year, pay the remaining unpaid principal balance with interest accrued to December 31 of the year in which such prepayment is made. 225851v1 5. The City Clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of the County. th Adopted by the City Council of the City of Shorewood this 10 day of July, 2023. ___________________________ Acting Mayor Paula Callies ATTEST ______________________________ Sandie Thone, City Clerk 225851v1 Exhibit A Legal Description Lot 6 And West 12 Ft of Lot 5, Birch Bluff Upper Minnetonka 225851v1 Exhibit B \[Assessment Agreement\] 225851v1 Item 8A City Council Meeting Item Title/Subject: Discuss SLMPD Joint Powers Agreement Term Meeting Date: July 10, 2023 Prepared by: Marc Nevinski, City Administrator Attachments: June 26, 2023 Council Memo Joint Powers Agreement Background th At its June 26 meeting, the Council adopted Resolution No. 23-065 approving an updated joint powers agreement (JPA) with the cities of Excelsior, Greenwood and Tonka Bay governing the South Lake Minnetonka Police Department (SLMPD). The JPA included modifications discussed by the working group, which included Mayor Labadie and Councilmember Sanschagrin, on June th 7. Since that time the Excelsior City Council discussed the modifications to the JPA and indicated they are not agreeable to the 20-year term but would agree to a 10-year term. th The Coordinating Committee will meet in its regular meeting on Wednesday July 12. Council Member Callies will represent Shorewood at that meeting. Financial Considerations No direct financial considerations at this time. Action Requested Council direction is requested. 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 Item 8C City Council Meeting Item Title/Subject: Approval of South Lake Minnetonka Joint Powers Agreement Meeting Date: June 26, 2023 Prepared by: Marc Nevinski, City Administrator Attachments: Resolution Joint Powers Agreement dated 6.13.2023 Background The Joint Powers Agreement that governs the South Lake Minnetonka Police Department is set to expire at the end of 2023. Last fall the cities of Shorewood, Greenwood, and Tonka Bay agreed to and approved an updated JPA but Excelsior delayed approval and instead proposed a host of changes to the JPA at the April 11, 2023 Coordinating Committee meeting. A number of the changes were relatively minor and generally not viewed as particularly controversial. These included:  Various clarifications and updating terminology.  Reducing five-year data intervals to three  Adjusting the procedure if an annual budget is not approved. (Sec 7, Subd 2, A and D, respectively)  Tasking the Operating Committee (City Administrators/Manager) with day to day supervision of the Chief. (Sec 6)  Adjustments to requirements for a party to withdrawal or dissolution of JPA (Secs 10 & 11)  Expenditure guidelines for the Chief (Sec 12) nd Council discussed the proposed modifications at it May 22 work session and assigned Mayor th Labadie and Councilmember Sanschagrin to the JPA working group, which met on June 7. The most notable changes included:  Duration of JPA: 20 year term, beginning August 1, 2023, which will automatically renew for an additional 20 year term unless a member submits notification two years in advance. (Section 8). o Terms of five, ten and indefinite periods were also discussed. Shorter periods were favored by Excelsior which wanted an opportunity to review the JPA for frequently in light of the changing policing practices, as well as provide members more leverage to propose changes. The working group felt that for the stability of the department and strategic planning, it was important to have a longer term for the JPA.  Formula: Retain the current formula structure, which includes using the 2006 arbitration formula. However, the working group agreed to reducing the data review intervals from five years to three years. (Section 7, B) o Several alternative formulas were discussed, including changes to the weight of the formula components. Although proposed changes may result in a simpler 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 formula, the majority of the working group believed it wasn’t worth the protracted process to explain and gain support of the member councils.  Additional Modifications: o A number of modifications were made to clarify or clear up existing language; added duties to the operating committee (Section 6, D) and the coordinating committee (Section 5, Subd 12); o Added the budget formula to the JPA (Section 7, Subd 2); o added language about the timing of a withdrawal (Section 10, Subd 1, A), revisions to the JPA in such and event (Subd 3) and clarified that the JPA remains in full force and effect until remaining parties vote for dissolution (Section 11, subd 1). o Allow the Chief to make unbudgeted expenditures up to $20,000 without the operating committee’s approval. (Section 12, G) o Set a time frame for dispute resolution (Section 14) Financial Considerations Currently Shorewood spends approximately $1.5M on policing. Not entering into an updated JPA would require contracting with another community – perhaps for more money and less service – or establishing its own police department, likely at two to three times the current operating cost. Action Requested Motion to adopt the attached resolution approving the revised joint powers agreement and authorizing the Mayor to execute the finished draft, allowing for any non-substantive changes. A majority vote by the Council is required.