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05-08-23 CC Reg Mtg MinutesCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, MAY 8, 2023 MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. Mayor Labadie called the meeting to order at 7:03 P.M. A. Pledge of Allegiance B. Roll Call Present. Mayor Labadie; Councilmembers Callies, Maddy, and Sanschagrin; City Attorney Shepherd; City Administrator Nevinski; City Clerk/HR Director Thone; Finance Director Rigdon; Planning Director Darling; Parks and Recreation Director Crossfield; Director of Public Works Morreim; and City Engineer Budde Absent: Councilmember Johnson C. Review Agenda Sanschagrin moved, Maddy seconded, approving the agenda as presented. Motion passed. 2. CONSENT AGENDA Mayor Labadie reviewed the items on the Consent Agenda. Maddy moved, Callies seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. City Council Work Session Minutes of April 24, 2023 B. City Council Regular Meeting Minutes of April 24, 2023 C. Approval of the Verified Claims List D. Approve Public Works Seasonal Hire E. Approve City Master Fee Schedule Update, Adopting RESOLUTION NO. 23- 045, "A Resolution to Update 2023 City Master Fee Schedule Pertaining to Massage Therapy Fees." F. Approve Excelsior's Park, Dock, and Code Enforcement CSO Agreement with City of Excelsior G. Approve Amplified Music for Private Event at Freeman Park, Adopting RESOLUTION NO. 23-049, "A Resolution Granting Authorization for Saint CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES MAY 8, 2023 Page 2 of 11 Paul Saints Community Youth Spotlight Game on Field 3 at Freeman Park Located at 6000 Eureka Road Motion passed. 3. MATTERS FROM THE FLOOR 4. REPORTS AND PRESENTATIONS A. Auditors Report Andy Berg, Abdo, gave a brief overview of the 2022 audit results, including: General Fund information; Revenues and Expenditures; Governmental Funds; Enterprise Funds; and Key Performance Indicators. He noted that they issued an unmodified, or clean, opinion, which is the best that a city can get. Councilmember Sanschagrin asked if Mr. Berg had seen any areas where costs were higher than normal or areas that he felt the city should take a closer look at. Mr. Berg stated that it is a bit outside the scope of the audit but agreed that it would be something good to look at. He noted that nothing really came to mind and explained that the bulk of the City's money goes to projects that are bid out with a competitive bidding process. B. Excelsior Fire District Presentation Battalion Chief Kim Stern gave an overview of some training burns that they have planned at 2424 Yellowstone Trail and 25480 Birch Bluff Road that are scheduled for upcoming Fridays and Saturdays. He explained that the purpose of the burns is to provide realistic training and scenarios for the Department and noted that live training is a yearly requirement. He shared details of how the training exercises would be conducted and noted that members of the Council are welcome to watch the burns. He noted that they have had nine new members start in the Department over the last six months. 5. PARKS A. Approve Freeman Park Trail Plans and Specifications and Authorize Advertisement for Bids, City Project 22-05 City Engineer Budde noted that on August 8, 2022, the Council authorized preparation of final plans and specifications for the Freeman Park Trail project. He noted that the trailhead will include construction of a new ADA compliant sidewalk adjacent to the park shelters. He stated that the city and the Three River Park District will enter into an agreement to define the costs and maintenance responsibilities. He reviewed details of the trail, way signage, drainage needs in the area, and future maintenance. He noted that the expectation is that bids would be opened in late May or early June and gave an overview of the budgeting details associated with the project. Councilmember Sanschagrin asked if the asphalt trails would include a base. City Engineer Budde stated that they would and are full reconstruction which means removal of the existing asphalt and base and putting in a new base and new asphalt. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES MAY 8, 2023 Page 3 of 11 Councilmember Sanschagrin asked if he could get a copy of the agreement with the County. City Engineer Budde stated that is possible but noted that staff had just reviewed the first draft of the agreement today. He stated that the staff is hoping to have the agreement to the Council for approval at a June Council meeting. Callies moved, Maddy seconded, Adopting RESOLUTION NO. 23-046, "A Resolution Approving the Plans and Specifications for the Freeman Park Trail Improvements Project and Authorizing Bidding; City Project 22-05." Motion passed. 6. PLANNING A. Request for PUD Concept Plan for Smithtown Road Redevelopment Location: 24250 Smithtown Road Applicant: TSML Properties, LLC Planning Director Darling gave an overview of the request for a PUD Concept Plan for property located at 24250 Smithtown Road. She stated that the concept is six, two family dwellings and one single family dwelling that would be owned individually but with common property like a townhouse development. She noted that this parcel would have an impact in Shorewood as well as Tonka Bay where they are proposing four additional two -unit structures. She gave an overview of the proposed units, layouts of common areas, access, and planned density. She reviewed the original plans and Planning Commission discussion where they recommended denial. She noted that following this action, the applicant revised their plans to meet the buffer requirements. She showed renderings of the landscape plans to portray the proposed buffer which will provide a physical barrier to the Public Works facility. She stated that the Planning Commission had reviewed the changes to the proposal on April 4, 2023, and recommended approval with a split vote. She gave a brief overview of items staff would like the Council to consider related to traffic, setbacks, grading, and tree preservation. She noted that, if this project is approved, there will need to be some shared agreements between the City and Tonka Bay for things like utility service agreements. Councilmember Sanschagrin asked if there were any concerns related to safety on Smithtown Road with relation to sight lines and access. Planning Director Darling stated that there were some concerns regarding safety and noted that with the previous application for an apartment, the County had suggested that in lieu of the existing angled access point that there be an access road that would approach with a 90 degree angle so there would be a better view of both sides of County Road 19. Councilmember Sanschagrin noted that one of the Planning Commissioners had expressed concern about the level of housing and asked if staff knew the target price of these units. Planning Director Darling explained that the applicant has indicated that they would be priced at about one million dollars for each. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES MAY 8, 2023 Page 4 of 11 Councilmember Maddy asked if the impervious coverage estimate included the private road on the Shorewood side of the project. Planning Director Darling stated that she believed that it did include the private road. Councilmember Maddy asked what just the lots on the Shorewood side would have for impervious coverage. Planning Director Darling stated that she did not calculate that out separately, but typically when the road is removed from the impervious surface calculation, you also remove the net area. Councilmember Callies stated that she agreed with the one Planning Commission who had some concerns about this proposal related to the housing model. She stated that the City does not have a lot of diversity in terms of housing options and noted that she feels this site may be better designated as commercial. She stated that this proposal does not seem to meet the objectives in the Comprehensive Plan related to density. She asked what other multi -family applications the city had seen for this parcel. Planning Director Darling explained that the only application she had seen is the sketch that was submitted to the Council a few years ago for a fifty -six -unit apartment building. Councilmember Callies asked about the Planning Commission discussion related to the height of the building and noted that the adjacent parcels are commercial in nature. Planning Director Darling stated that she believed their concern was that this site sits up a bit higher and were concern that adding a multi -story building on top of an already high site, it would loom over the adjacent properties. Councilmember Callies stated that she was not too concerned about a building looming over them because the adjacent properties were commercial and the Public Safety building. She noted that she was also concerned with the setbacks. She explained that she would like to see some more alternatives in terms of housing and feels this parcel is more appropriate for medium density housing. Mayor Labadie stated that she would echo those statements. She noted that this is a beautiful project but does not think this is in the best interest of the city, long-term, to let go of an opportunity where they could increase density at a price point that would serve the community in a way that it is currently underserved. She stated that she believes this would be a suitable place for something that is higher density at a lower price point. She explained that she agreed with Planning Commission Huskins who stated that the city should wait for development that meets the density range and provides less expensive dwellings and meets the needs of a broader economic spectrum of residents. Councilmember Maddy noted that there was no political will to raise the density zoning on the Comprehensive Plan until the Met Council came and told the city that they needed to. He stated that as a result they raised the density in a few areas of the city where they felt it would be the least impactful for the residents. He stated that it was implied that if the city did not have a higher number of housing units here, the city would be forced to do elsewhere in the city, and he did not think that was accurate. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES MAY 8, 2023 Page 5 of 11 Planning Director Darling stated that the City has identified a number of properties that could be developed at five units/acre or greater. She reviewed the areas throughout the city that have been proposed for this medium to higher density use. Councilmember Maddy noted that even once the Comprehensive Plan is approved by the Met Council, the market will still define what will be built. He explained that he did not think the extra units that were not built here would be required to be built elsewhere in the city. Todd Simning, ADOR Homes, stated that it is a bit disheartening going through two Planning Commission meetings and then coming before the Council and still not having a plan. He stated that from what they had heard from staff and Planning, they spent a great deal of money putting together something that they felt would meet the City's needs. He stated that it is disheartening to hear that there is a debate about whether the city wants higher density in this area or not. He stated that as a developer, they do not care if it is lower or higher density and shared details from projects that they have had in Chanhassen that involved affordable housing. He stated that they are open to this type of project but did not feel that was the feedback that they had gotten from staff or the Planning Commission. He stated that they have already been working on this for about four months and would like to get good direction from the city about what they want. Councilmember Callies stated that she appreciated this feedback and believes that to provide affordability, the city would need to provide some type of incentive such as TIF. She explained that she could appreciate Mr. Simning's frustration with the overall process but noted that she was not sure how else this could be done other than to involve the Council earlier in the process. Planning Director Darling explained that there is one option available where the applicant could provide a sketch directly to the City Council to get feedback. She noted that it can be done at either a work session or a regular meeting and noted that the comments received would be non- binding, which is what the apartment building had essentially done. Councilmember Callies noted that she felt there was a range between strictly affordable housing and a million -dollar unit. Mr. Simning stated that looking at the 60% adjusted gross income in and around the area, more of the affordable housing would be someone that can spend about $1,800/month for their payment which equates to about a $450,000 to $500,000/unit. Mayor Labadie stated that even if the City voted unanimously to approve this request, the applicant still must gain approval from Tonka Bay. Councilmember Maddy stated that in his mind the problem with this proposal is not density but transportation and access to jobs. He stated that the city does not have the road network out here to move people efficiently at high enough density to drive down pricing. He stated that the proposal is nice and if they did want to move in a different direction for higher density, he does not think this is the site for it because of the way it is tucked up on the curve. He stated that he is fine supporting it as proposed with the hope that other, larger parcels will free up for higher density projects in the future. He stated that he feels that this proposal seems like it will be the least offensive for that corner. Councilmember Sanschagrin stated that he agreed and while he understands the sentiment shared about having affordable housing, however, in this instance, having more access like that CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES MAY 8, 2023 Page 6 of 11 to Smithtown Road seems like it is the wrong place to do that. He stated that he thinks many of the comments are for future direction in terms of what the City does as they continue to strive for higher density. Mayor Labadie stated that she appreciated the efforts the applicant had put into the driveway access plans and that they had been willing to take one unit out of their plans. She stated that she understands the comments made by Councilmembers Maddy and Sanschagrin but noted her concern that the city has less and less land within the city that can be developed with density. Councilmember Callies stated that she agreed with Mayor Labadie and noted that her understanding was also some single-family homes can generate more traffic than apartments. She noted that they are all just speculating because there is not an actual plan yet and reiterated that, to her, this should be a commercial site. Councilmember Maddy stated that a dense apartment building went up right next door to this location and asked if staff knew what the rents were. He stated that he has been told some high numbers and noted that in this community, without substantial subsidy, they cannot do moderate income housing. Councilmember Callies stated that the City had not examined this to see what the subsidy would need to be but noted that the issue was not in front of the Council tonight. Councilmember Sanschagrin asked what would happen in a situation where one City approved and the other denied the request. Councilmember Callies noted that the resolution language has approval contingent upon approval by the other city. Planning Director Darling stated that Tonka Bay will be considering this concept at tomorrow's meeting. Mr. Simning stated that they had received the staff report which states that they are completely in support of the project, as proposed. Mayor Labadie cautioned that this information was from staff and the Tonka Bay Council would still need to vote on it and could have different opinions. She expressed concern that because there are only four Councilmembers present at the meeting, this item will end up with a split vote. Tom Commerford, of 14906 Blakeney Rd, Eden Prairie, stated that he has been in this business for 30 years as a developer, investor, and broker. He stated that the city only has so much room to work with and stated that this is not a high -density site because it is already on a high elevation. He explained that to go with high density, they would have to build up which means that they would end up with a towering building. He stated that this project, as proposed, was not requesting any City assistance or financing and explained that he felt it was time for something new to happen on this site. Councilmember Callies asked Mr. Simning why there could not be a more reasonably priced medium density project in this location. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES MAY 8, 2023 Page 7 of 11 Mr. Simning stated that the question is how they can create something that has more density at a lower price and asked the Council what price they would like to hit. Councilmember Callies suggested $500,000. Mr. Simning stated that to make a product that would be livable but as they move to multi -family, the costs go up because of fire suppression for each unit and sound barriers between the units. He shared design options for three bedroom, three -level units and noted that he was even concerned with their single level designs looking over the nearby commercial areas. He stated that he would question whether people would even want the three bedroom, three -level unit as he described. He stated that he would agree with the statement made that this site is not one that requires density. He explained that he if thought it was, he would have come to the city with a different plan. He shared examples of his background and experience and explained the reasons why he felt what was being proposed was the right thing for this parcel. Mayor Labadie thanked Mr. Simning for his input and explained that the Council needed to rely on staff for their expertise because no one on the Council is a builder. She stated that she remains concerned about density and would like there to be more affordable housing for people who cannot afford million -dollar homes to be able to live in the community. Councilmember Callies stated that she does not like the proposal and questioned how many more million dollar homes the city needed. She stated that she does not understand why they could not do something that is a little denser that would not have to be the three levels Mr. Simning described. Mayor Labadie asked Planning Director Darling if she felt confident that the city could meet the density asked for by the Met Council using other sites in the city. Planning Director Darling stated that she thinks there is a real potential for it, but the city must accept that sometimes those opportunities may not be in `perfect' locations. Councilmember Callies asked if there was any middle ground and if Mr. Simning could put together a sketch plan to more closely fits what she and Mayor Labadie have been describing without having to go back to the Planning Commission or spending a lot of engineering dollars. Mr. Simning reiterated that he feels that this is the right product for this piece of property. He stated that if he felt that this was a piece of property where they could bring in true affordability, he would do it. He stated that he appreciates having this conversation with the Council but reiterated that he feels this is the best product for this parcel. Mayor Labadie noted that Shorewood's concerns related to density and the Comprehensive Plan are not shared by Tonka Bay, so they are two quite different cities dealing with the same site. She stated that she does not think the city can simply sit back and wait and see what Tonka Bay decides because they will be coming to it from a different mindset. Councilmember Sanschagrin stated he also wants to be cognizant of fairness to the builder in terms of the process. He noted that the Council denying this PUD would seem reactive and noted that he feels the Council should be more proactive in identifying where the high -density housing can actually go and allowing the Planning Commission to have feedback early on in the process. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES MAY 8, 2023 Page 8 of 11 He stated that another strong consideration is how it fits in the city and agreed that it could be a concern to have taller buildings on this lot looming over the area. Councilmember Callies stated that she feels those comments were completely out of line because the process is the process, and the Council makes the decision. She stated that if the Council just rubber stamped everything that the Planning Commission does, they would not be doing their job. She stated that she understood that this developer has been through a lot but felt that saying the Council had to approve this because of the hardship they went through is, in her opinion, a cop out. Councilmember Sanschagrin stated that he did not say that the Council had to approve it but does feel there was a fairness aspect to the situation. Councilmember Maddy asked when the 120-day period would end. Planning Director Darling stated that the 120-day period would end on May 24, 2023, and suggested that if the Council did not have enough votes for action that it be pushed out to the next meeting. Mayor Labadie asked what would happen if the Met Council rejected the most recent Comprehensive Plan submission and the city did not increase its density. Planning Director Darling stated that the city would have to start over but noted that she believed the city had wrapped up the final details that were remaining. She stated that the Met Council could start making it particularly challenging to apply for any grants and could actively work against various applications at the State level. She noted that the Met Council could choose to actively take the city to court which has happened in other communities. City Attorney Shepherd stated that he agreed with this description of what could happen. He states that what is before the Council tonight is this parcel and not the overall Comprehensive Plan guidance. Councilmember Callies noted that she did not feel that this was the site to `fall on her sword' so she will not be in opposition to it. Mayor Labadie stated that she agreed but would do it with major reservations. She requested that a different project bring some density. Councilmember Callies suggested that there be language included in the resolution that says, `while the development does not technically meet the Comprehensive Plan density, current market conditions and the site attributes cannot support higher density'. City Attorney Shepherd suggested this language could be added to the resolution. Maddy moved, Sanschagrin seconded, Adopting RESOLUTION NO.23-047, "A Resolution Approving a PUD Concept Plan for the Property Located at 24250 Smithtown Road, with the addition of `while the development does not technically meet the Comprehensive Plan density, current market conditions and the site attributes cannot support higher density' as a new #3 and renumbering the remaining items accordingly. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES MAY 8, 2023 Page 9 of 11 Motion passed. 7. ENGINEERING/PUBLIC WORKS 8. GENERAL/NEW BUSINESS A. Bond Reimbursement Resolution Finance Director Rigdon explained that this kind of reimbursement resolution is necessary when the city does bond projects. He stated that it allows the City to borrow money internally until such a time as they issue the debt which then repays the internal loan. He stated that it is quite common and is done every year. He noted that they are looking at the Birch Bluff Road and Lift Station #11 projects. He stated that they were not asking for the actual approval of the bond at tonight's meeting. Callies moved, Maddy seconded, Adopting RESOLUTION NO. 23-048, "A Resolution Declaring the Official Intent of the City of Shorewood to Reimburse Certain Expenditures from the Proceeds of Bonds to be Issued by the City." Motion passed. 9. STAFF AND COUNCIL REPORTS A. Administrator and Staff 1. Response to Inquiry — Multiple Dock Permit Fees Planning Director Darling noted that she felt the information included in the memo speaks for itself and explained that they would continue to watch the license fees and can increase them, if necessary. 2. Galpin Lake Trail — Andrew Morrow, 5935 Galpin Lake Road City Engineer Budde stated that there was a lot of history over the desire to have a sidewalk/trail on Galpin Lake Road. He stated that he believes the next best step is that when MnDOT is doing their corridor study that the residents get engaged and involved in that process. He explained that in 2028, MnDOT is planning to do a pavement rehabilitation project on Highway 7 which would be the time to kind of implement some of these strategies. 3. Strawberry Lane/LRT Trail Crossing City Engineer Budde explained that at the last meeting they had provided an update that the Lake Minnetonka Regional Trail wanted to provide some curvature at the trail crossing of Strawberry Lane. He stated that this required following up with the Three Rivers Park District and the Hennepin County Regional Rail Authority (HCRRA) to discuss this feedback. He stated that everyone involved feels adding the curvature is the best from a safety perspective and noted that the curvature is designed with a slightly smaller radius which would be 15 mph. He stated that they discussed `yield' or `stop' and the HCRRA would like it to be a `yield' because most trail users do not comply with a `stop' condition and simply coast through. He stated that because of the change in the project and the tree removal, they would like to see it be a `stop' control in the short CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES MAY 8, 2023 Page 10 of 11 term, but long term may change to `yield' if conditions and site lines are found to be adequate. He explained that the city will really be in control of the messaging for the public. He noted that they agreed to pay one hundred percent of the additional costs, which had previously been fifty percent. He noted that there will be a formal joint powers agreement that will come at a future meeting. Councilmember Sanschagrin stated that he believes there is a lot of confusion on the bike control in terms of `stop' versus `yield' and noted that he did not think he had ever seen a bike stop if there were no cars coming. He stated that he would be in support of a `yield' sign and an additional sign like they have in Deephaven that states, `Cross traffic does not stop.' Mayor Labadie stated that she felt that was a great idea and suggested that they also add a `Cross traffic does not stop' sign at the intersection of the trail and Cathcart. City Engineer Budde stated that he will have that conversation with them and see if they may be open to that type of signage. Councilmember Maddy commended the funding coming up to over one hundred percent of the costs for the change to the project. He stated that then it becomes their project that they are paying for, and the city can announce that accordingly. Other Parks and Recreation Director Crossfield asked the Council to save the date for upcoming events, including Walk with the Mayor on May 15, 2023, at 5:30 p.m.; Concert in the Park — July 20, 2023. She noted that the community gardens are tilled, and planting has commenced. Public Works Director Morreim stated that they are about seventy percent done with street sweeping and should be done in the next few weeks. He stated that watermain flushing began last week. City Engineer Budde stated that the contractors should be back in for the Smithtown Pond project to finish the grading and noted that their substantial completion date is July 1, 2023. He stated that tree removal will begin for the Birch Bluff project this week and next. He stated that for Strawberry Lane, the small utilities have gone smoothly, thus far. Planning Director Darling stated that there is a new application coming before the planning Commission next month for a variance request and will also continue to work on amendments to the sign code. City Attorney Shepherd stated that they were finally able to serve the property owner for the condemnation of the property on Strawberry Lane which will be going for a hearing on May 24, 2023. City Administrator Nevinski stated that the city participates with the County in the CDBG program and has been informed that the city will have the opportunity to continue involvement for the next few years. He noted that the Spring Clean-up event will be held on May 20, 2023, from 8:00 a.m. to 1:00 p.m. He stated that Communications and Recycling Coordinator Wilson will be hosting a Recycling Committee meeting May 9, 2023, at 5:00 p.m. at the Shorewood Community and Event Center. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES MAY 8, 2023 Page 11 of 11 B. Mayor and City Council Councilmember Sanschagrin stated that there will be a Parks Tour tomorrow evening. He noted that he will attend the upcoming LMCC meeting to discuss the financial situation. Park and Recreation Director Crossfield stated that the Park Tour will begin at 6:15 p.m. at Eddy's Station in Freeman Park. Councilmember Callies stated that the Excelsior Trolley is up and running. She stated that the Minneapolis Open Door will be held this weekend which is when many buildings who are not open to the public are open to the public. She stated that she will be at the downtown post office on Saturday morning where they will host behind -the -scenes tours of the operations. She stated that it is a very cool event and encouraged residents to participate. Mayor Labadie stated that in late April, she met with former Mayor Scott Zerby and the Minnesota Streetcar representative, Aaron Isaacs where they did a general presentation to the public at Shorewood Landings. She noted that earlier today she had attended the Regional Council of Mayors meeting where they had presentations regarding population trends and the economy of the region. She reminded residents that they are about to the midway point of the Step to It challenge. 10. ADJOURN Maddy moved, Sanschagrin seconded, Adjourning the City Council Regular Meeting of May 8, 2023, at 9:19 P.M. Motion passed. ATTEST: r Je fifer abadie, Mayor Sandie Thone, City Clerk