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08-04-23 CC Reg Mtg Agenda Packet CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS MONDAY, AUGUST 14, 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 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 July 24, 2023 Minutes B. City Council Regular Meeting Minutes of July 24, 2023 Minutes C. Approval of the Verified Claims List Claims List D. Approve Permanent Appointment of Communications City Clerk/HR Director Memo Coordinator E. Approve Amended South Lake Minnetonka Police Department City Administrator Memo 2024 Budget Resolution 23-074 F. Accept Improvements for 2022 Catch Basin & Culvert Repairs, City Engineer Memo City Project 22-04 Resolution 23-075 CITY COUNCIL REGULAR MEETING AGENDA Page 2 G. Award 2023 Pavement Seal Quote, City Engineer Memo City Project 23-04 Resolution 23-076 H. Authorize Inflow & Infiltration Grant Program Agreement Public Works Director Memo with Metropolitan Council 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 A. Legislative Update by Rep. Andrew Myers City Administrator Memo B. Recycling Advisory Committee Report Communications/Recycling Coordinator Memo 5. PARKS A. Accept Girl Scouts Compost Bin and Sign Donation Parks/Rec Director Memo Resolution 23-077 B. Accept Bids and Award Contract for Freeman Park Trail City Engineer Memo Improvements, City Project 22-05 Resolution 23-078 C. Approve Cooperative Agreement for Freeman Park Trail City Engineer Memo Improvements, City Project 22-05 Resolution 23-079 6. PLANNING 7. ENGINEERING/PUBLIC WORKS A. Severe Drought Warning and Water Conservation Public Works Director Memo Efforts Resolution 23-080 8. GENERAL/NEW BUSINESS A. Approve Excelsior Fire District Budget City Administrator Memo Resolution 23-081 CITY COUNCIL REGULAR MEETING AGENDA Page 3 B. Approve Tobacco License: Jim’s Liquor City Clerk/HR Director Memo Resolution 23-082 C. Public Purpose Expenditure/Employee Wellness Policy City Clerk/HR Director Memo Resolution 23-083 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, JULY 24, 2023 6:00 P.M. MINUTES 1. CONVENE CITY COUNCIL WORK SESSION MEETING Mayor Labadie called the meeting to order at 6:00 P.M. A. Roll Call Present. Mayor Labadie; Councilmembers Callies, Maddy, Sanschagrin, and Zerby; City Administrator Nevinski. B. Review Agenda Maddy moved, Zerby seconded, approving the agenda as presented. Motion passed 5/0. 2. CLOSED SESSION: CITY ADMINISTRATOR 6-MONTH PERFORMANCE REVIEW 6:01 P.M.: Zerby moved, Maddy seconded, to move into a closed session pursuant to Minnesota Statutes, section 13D.05, Subd. 3(a), as permitted, to evaluate the performance of the City Administrator. Motion passed 5/0. 6:50 P.M.: Sanschagrin moved, Maddy seconded, to come out of the closed session. Motion passed 5/0. 3. ADJOURN Maddy moved, Zerby seconded, Adjourning the City Council Work Session Meeting of July 24, 2023, at 6:50 P.M. Motion passed 5/0. ATTEST: Jennifer Labadie, Mayor Sandie Thone, City Clerk 2B CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS MONDAY, JULY 24, 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 Callies, Maddy, Sanschagrin, and Zerby; City Attorney Shepherd; City Administrator Nevinski; City Clerk/HR Director Thone; Finance Director Rigdon; Planning Director Darling; Director of Public Works Morreim; Park and Recreation Director Crossfield; and City Engineer Budde Absent: None 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. A. City Council Regular Meeting Minutes of July 10, 2023 B. Approval of the Verified Claims List C. Approve Permanent Appointment of City Administrator D. Acknowledge Change in Attorney for Development Review E. Approve Quote for 2023 Crack Seal, City Project 23-03, Adopting RESOLUTION NO. 23-071, “A Resolution Approving 2023 Crack Seal Quotes, City Project 23-03.” F. Approve Kitchen Rental Agreement: The Salsa Collaborative Councilmember Callies asked about item 2.D. and asked what project this was related to and what the conflict was with City Attorney Shepherd. Planning Director Darling stated that a few months ago, the City received an application for a paddle sports club on a piece of property that is just west of the apartment building on Smithtown Road. She explained that the applicant is a planner and performs consulting for several different CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JULY 24, 2023 Page 2 of 17 cities which has resulted in a conflict of interest for both the City Engineer and the City Attorney. She stated that this was why the City had looked for another attorney and engineer to review this development proposal. City Administrator Nevinski noted that it was the City Attorney and not the City Engineer that was changing tonight. Councilmember Callies stated that she also had a question about item 2.F. and noted that the agreement was dated May through December of 2023 and asked if they had been operating without an agreement up until this point. Park and Recreation Director Crossfield stated that they had started under the pre-existing rental agreement policies. She stated that she felt that this kind of rental warranted a more substantive agreement, which is what is before the Council. Callies moved, Maddy seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. Motion passed. Mayor Labadie noted that item 2.C. was approving the permanent appointment of City Administrator Nevinski and explained that the Council had conducted a review at the Council work session just prior to this meeting. She stated that the Council had glowing things to say about him and were excited to continue working with him. 3. MATTERS FROM THE FLOOR No one appeared to address the Council. 4. REPORTS AND PRESENTATIONS A. Park and Recreation Month Proclamation Park and Recreation Director Crossfield explained that July is NRPA’s Park and Recreation Month and explained that it was designed to promote building strong, vibrant, and resilient communities through the power of parks and creation. Mayor Labadie read aloud the Park and Recreation Month Proclamation. 5. PARKS A. Discuss Options for Freeman Park Trail Improvements, City Project 22-05 City Engineer Budde stated that the City had opened bids for the Freeman Park Trail Improvements on July 12, 2023. He noted that the bids came in about $70,000 above what they had budgeted for within the City’s CIP. He stated that staff would like to have a bit of dialogue with the Council on how they would like to move forward with it. He explained the plans and how they had been developed including the trail head connection that will be done in conjunction with the Three Rivers Park District. He reviewed the financial and budget considerations for this project and explained that there were three options for Council consideration, including: move forward CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JULY 24, 2023 Page 3 of 17 with that project as it was bid and come up with the additional funds; delay the City portion of the project but move forward with the trailhead connection; reduce the project scope and focus on the more visible and used portions of the trail and delay some of the other segments for future years. He noted that for option three, staff had taken a look at the trails and feels that segments C, E, J, K, and L would be considered the ‘primary’ trails. He reminded the Council that they had budgeted $400,000 for this project with the assumption that $200,000 would be transferred from the City’s reserve fund. He asked for input from the Council on what direction they would like to move for this project. Councilmember Zerby asked how old the existing trail system is that has deteriorated and asked what life span was typically expected for a trail. City Engineer Budde stated that they usually assume a lifespan of about twenty years for a trail. Planning Director Darling stated that she believes these trails were constructed sometime in the mid-1990s. City Engineer Budde stated that he believes these trails are between 25-30 years old. Councilmember Zerby asked if there was anything like a mill and overlay that could be done to the trails. City Engineer Budde explained that there are maintenance type things that could be done to a trail, however, these particular trails have been neglected too long so these types of activities will not do it justice. He stated that they would overlay the trails, but if they did that there would still be a lot of cracks and divots that would reflect through within the first year or two, so it would not give the longevity that the City is looking for. Councilmember Sanschagrin asked if option three was the least costly of the three approaches. City Engineer Budde stated that option two would be the least costly because it would cut out most of the City scope of the project and just do the Three Rivers Park District trailhead. Councilmember Callies asked if the City had gotten feedback on why they were turned down for a grant. Planning Director Darling stated that they do get feedback but explained that this year she thinks it just came down to the fact that there were eighteen million dollars in requests for six million dollars’ worth of available grant funds. She stated that they did pass along some suggestions on how the City could improve their applications in the future. Councilmember Callies stated that one of the options was to do the main trails and not some of the lesser used but noted that if the City did that then those trails would just deteriorate even further. City Engineer Budde stated that was true and noted that they had also had conversations about allowing some of the lesser used trails on the periphery to deteriorate to basically turn to gravel. He stated that he does think that is an option to be considered but they would probably not want to do that for the major trails where there are more ADA concerns because it is very difficult to get a gravel trail to be ADA compliant. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JULY 24, 2023 Page 4 of 17 Councilmember Maddy stated that if the City chooses option three, they would be mobilizing equipment twice which will just roll into the total cost of the project. City Engineer Budde agreed that there would be some lost efficiencies so the City would have to pay for mobilization again in a future year. Mayor Labadie stated that the City would also have to seek new bids and would have no guarantee that the bids would be the same as in prior years. City Engineer Budde stated that this was true and noted that with the way inflation currently is, he expects everything will continue to cost more in future years. Mayor Labadie explained that she was worried about option two and simply waiting for next year hoping for a different result. She stated that she feels it is risky because the bids and cost of construction could increase, and the City may still be denied grant funds. She noted that if the City decides to cut down the scope of the project, she feels they will just end up watching the trails turn to gravel which is not ADA compliant. Councilmember Sanschagrin asked if there was any data that showed the usage rates of the periphery trails. City Engineer Budde stated that they do not have any hard data other than just observation as the facilities are getting used. Planning Director Darling explained that she has been out there at all times of the day and there is always somebody on most of these trail segments. Councilmember Callies explained that her concern is that all of the trails need to be improved but it is hard to know what other items the City may be facing that may also need to utilize reserve funds. She stated that she felt that option three was the best for the City. Councilmember Sanschagrin stated that he also supported option three in order to keep their finances in reserves for emergency use and to focus on the trails that are the most used. Mayor Labadie asked Finance Director Rigdon to expand on the budget. Finance Director Rigdon explained that the City had $400,000 set aside in the CIP for parks. He stated that if this went through, they would need to transfer $270,000 from reserves rather than just $200,000, as planned. Mayor Labadie stated that she supports option one in order to do the full project. She noted that Finance Director Rigdon has stated that there is enough money in the reserves to cover this cost. She stated that the trails need to get done at some point and she did not believe they would ever be cheaper to do the work than it is right now. Councilmember Maddy asked if all the trails are done at the same time, if the assumption would be that they will start needing maintenance in a similar time frame as well. He asked if there would be more cost savings by doing all the trails at once and then also overlaying them all at once, so CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JULY 24, 2023 Page 5 of 17 it is not broken out between ‘old’ trails and ‘new’ trails. He asked if they could still do option three and still cost about the same. City Engineer Budde stated that his ‘gut’ is telling him that the economics of scale will kind of pay off, for example, if the City does them all at once, the contractors are essentially able to ‘paint themselves out of the room’. He stated that one of his concerns is that, in the future, the City would have the segments that are easily accessible from the parking lot to the facilities and in the future the contractor will want to drive on those segments in order to improve the other segments that are not improved right now which means there is the risk of damaging infrastructure in order to fix stuff that is further inside the park. He reiterated that his ‘gut’ was telling him that the most economical way would be to do the work all at once. Councilmember Maddy stated that he agreed that he believes it will be cheaper to just do the work now and also maintain it all at the same time as well. Councilmember Zerby asked if the existing trail that was deteriorating was also eight feet wide. City Engineer Budde stated that the width varies and explained that they are six to twenty feet wide. Councilmember Zerby stated that he remembers discussion from the past about width and the idea was that eight feet was the standard in order to allow two people in wheelchairs to pass each other. He asked how the wider trails would be protected from vehicle use. City Engineer Budde stated that staff has discussed erecting some type of barriers, such as a bollard, which deters vehicles from getting around, but allows for emergency or snow removal equipment to get around it. He explained that they had not fully fleshed out the options but had discussed them. Councilmember Zerby asked if the engineering costs were truly about one-hundred thousand dollars and noted that, to him, that feels like a full year of someone working on this project. City Engineer Budde stated that they have been tracking this to be about twenty percent of the overall construction costs and noted that a variety of staff ends up working on this project. Councilmember Callies asked if staff was aware of any other pending overruns that the City would need to have access to the reserve funds. She reiterated that was her concern with using additional reserve funds in this situation. Finance Director Rigdon stated that there are reserves set aside, but he feels they are pretty tight. He noted that the Park Commission had gone through a prioritization process in order to come up with the current plan and explained that there are no projects scheduled for 2024. He stated that he feels that is already cutting it close and does not allow for a lot of movement. Councilmember Zerby noted that there is always ‘sticker shock’ when these projects come through, but believes the City needs to do it in a way that is thoughtful and looks towards the future. He agreed that it was expensive to do this type of project, but this park is the City’s largest and one of the most used in the community. He stated that he would also support option one. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JULY 24, 2023 Page 6 of 17 Zerby moved, Maddy seconded, Approving Option 1 to move forward with the project, as is, using additional reserve funds, as necessary. Motion passed 4/1 (Councilmember Callies opposed) 6. PLANNING A. Report by Commissioner Huskins on July 18, 2023, Planning Commission Meeting Commissioner Huskins gave an overview of the July 18, 2023, Planning Commission meeting and recommendations as reflected in the minutes of the meeting. B. Public Hearing: PUD Development Stage Plan and Preliminary Plat Location: 24250 Smithtown Road Applicant: TSML Properties, LLC Mayor Labadie noted that the Council had looked at this one other time which had mixed results. She stated that it had also gone to Tonka Bay’s City Council and asked if there had been any updates since the staff report was put together. Planning Director Darling explained that Tonka Bay had approved the Preliminary Plat with their conceptual approvals, so they are slightly ahead of the City in terms of depth of detail that they have reviewed. She stated that both City’s have also received the Final Plat application and expects Tonka Bay to make a decision on that by the end of August. Mayor Labadie noted that the public hearing was already held on this item but noted that included in the packet were several e-mails from residents that were in opposition to this project. Planning Director Darling noted tonight would be a second public hearing on this item and explained that the Council should open the floor to the public for additional input following the staff presentation. She reviewed the application from TSML Properties to develop the property at 24250 Smithtown Road and subdivide it into six two-family dwellings and one single-family dwelling. She explained that they would be owned individually but would have common property as a townhouse development. She noted that the applicant was also proposing four dwellings on the adjacent parcel in Tonka Bay. She reviewed the location of the property, existing conditions, and plans to develop the property through a PUD process. She stated that the Council had approved the concept plan and allowed for flexibility to the ordinance requirements for a few items. She noted that they are proposing less density than what would typically be seen but explained that the Council had discussed this and felt that because of the site attributes they felt made the site inappropriate for a denser development. She stated that the applicant is proposing a private street rather than a public street but explained that was common with townhouse developments. She reviewed design details related to setbacks, lot area per unit, impervious surface coverage from the proposal. She explained that this phase of the development process is designed to provide greater detail than the concept level stage. She reviewed the proposed home design details for the homes and the overall development. Councilmember Zerby asked for details on the planned changes to the elevation of the site. Planning Director Darling stated that on the north end of the site, the homes will still be about ten feet higher than the main entrance of the Public Works facility. She stated that they plan to remove CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JULY 24, 2023 Page 7 of 17 about forty-five hundred cubic yards from Shorewood and thirteen thousand cubic yards from the site overall. She reviewed the suggested conditions included in the resolution and noted that the Planning Commission was concerned because the construction entrance is technically on the Tonka Bay side, but she explained that before she included that recommended condition, she had spoken with the Tonka Bay planner who had no issue with that condition. She stated that changing the grading on the site requires that nearly all the trees be removed, but reminded the Council that this information was known at the concept stage. She noted that it will be a shock for most of the people that drive by the area but explained that the developer plans to plant one- hundred and ten trees on the site, including trees around the periphery that will eventually provide buffering. She stated that she believes the buffering along the northside will pretty much be in place at the time of planting because they are lowering the site, installing a smaller retaining wall, and also an eight-foot fence plus a hedgerow of arbor vitae. Councilmember Zerby asked if planting one-hundred ten trees on this size parcel was in line with the City’s policy. Planning Director Darling stated that it was well above anything that the City would require. She explained that staff recommended approval subject to the conditions listed in the resolutions. She stated that the Planning Commission held a public hearing on this item and had received two letters that have been included in the staff report. She stated that the Planning recommended approval with a 4/1 vote. She reiterated that tonight’s meeting includes holding a public hearing on this item and explained that if this is approved the next step would be to rezone the site to PUD and review the PUD Final plan and plat. Todd Simning, TSML Properties, stated that the two e-mails that were sent to the City in opposition to their proposal mainly was because of trails and getting into Excelsior than truly with the project. He stated that he believes there is a long-term plan in place that would address the concerns raised by residents about the trails in the area. He stated that he understands that traffic concerns are also an issue but noted that doing anything more than what they propose will add more traffic to County Road 19. He stated that they felt there was a lot of pushback about coming up with a plan that had less density and explained that he feels they have listened to the direction given to them by City staff, the Planning Commission, and the City Council. He stated that he feels what they are proposing is a good alternative to something with a higher density that would bring more traffic to the area. He stated that they are also working with the developer next door to create a better entrance into the commercial project and theirs in order to have more of a ninety- degree angle access point. He noted that the size of the parcel makes it a bit difficult to bring in a walking trail. He explained that he brings affordability to other communities and projects but is not able to bring that element to this project. He stated that this property does not fit that approach unless they want to go vertical. He understands that people do want to lose trees, but trees are renewable and noted that he understands it will be startling at first but when they come back in five years after the trees have had a chance to grow, they will really see something positive. He stated that they feel like this project is the right thing for this location and believes that is also the mindset of City staff. Councilmember Sanschagrin asked if they had looked at a walking trail around the perimeter. Mr. Simning stated that there was really not any space to have a walking trail. Councilmember Zerby asked why they were proposing this number of homes. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JULY 24, 2023 Page 8 of 17 Mr. Simning stated that this number was based on City staff comments about what they wanted to see with regard to number of units and traffic concerns. Councilmember Zerby stated that having this number of units requires a setback variance for the fencing, a hard cover increase, and believes the spacing between the homes is also smaller than usual. He stated that he feels like they are planning to squeeze a lot onto this site and then ask the City to make accommodations. Mr. Simning stated that was true but noted that those things are typical of a townhouse development. He noted that they are managing all of their stormwater. Councilmember Zerby stated that this project almost looks like it is ‘busting at the seams.’ He stated that if the single-family home was off the map he wonders if that would give them enough space to be able to not need accommodations for hard cover and setbacks. Mr. Simning stated that he thinks even without one unit, they would still need things like setback variances. He stated that off the top of his head, he would guess that they would need to lose three of the units to be able to proceed without the need for any variances which would mean that they would need to be two million dollar homes, which there is not a market for in this location. Councilmember Zerby asked about the square footage for the units. Mr. Simning stated that they are just under three thousand square feet total. Councilmember Zerby stated that he has heard a ballpark figure of three hundred dollars per square foot for construction costs and asked if that was still accurate. Mr. Simning stated that constructions costs vary and noted that they are not using vinyl windows or siding. He explained that they were not planning to use inexpensive appliances and would install real wood floors and ceramic tiles for the bathrooms. He stated that they were trying to create a product that will last and noted that they are planning on using Pella windows and other higher-end products. Councilmember Zerby noted that it appears as though they are planning to put in a vinyl fence at the road. Mr. Simning explained that it is a really good product and is more maintenance free than something like cedar would be. He stated that with the common walls in the units, they do build two separate walls which is a more expensive process. Councilmember Callies stated that she recalls when this came before the Council with the concept plan it was a higher density and was rejected. She stated that she believes that the City informed the developer that they should lower the density. Planning Director Darling stated that there was quite a bit of discussion on this project because they had originally proposed eight units with northerly unit butting very close to the City’s property line that would not have provided a buffer between the Public Works facility and this development. She stated that they had removed one unit and added in arbor vitae screening and the fencing. She stated that this also allowed them to widen the spaces between the units. She stated that if the developer lost even more units, they would be even farther from the minimum density range CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JULY 24, 2023 Page 9 of 17 within the Comprehensive Plan. She noted that this would allow them to meet the side setbacks but would not be able to get rid of the setback from the private drive. Councilmember Zerby stated that this site is surrounded by noise pollution because of the location of the Public Works facility, Public Safety, and a shopping mall. He stated that this is a challenging location and was not sure what the planned buffering would actually do for the noise. He stated that based on information from Google it appears that there will be three hundred twenty dump trucks of soil leaving the property from the Shorewood side and additional loads would leave from Tonka Bay. He stated that this will be a considerable change to this location. Planning Director Darling agreed that it will be a substantial change. She asked if Mr. Teppen could answer the questions that were raised about the changing grades. Kevin Teppen, Civil Site Group, stated that they are dropping the top of the hill by about one to two feet. He stated that currently the stormwater run-off goes directly into the street, and they are proposing to handle the runoff onsite in their pond. He stated that they are also taking down the County retaining wall and most of that dirt is having to leave the site as well. He stated that he understands that it sounds like a lot of dirt, but they need to do it in order to capture the stormwater which will be required no matter how much density they have on the site. Councilmember Zerby stated that he feels like there could be other creative solutions, for example underground systems. Mr. Teppen stated that they will have to create a swale in order to capture the water which would need to happen regardless of what system they use and reminded the Council the currently, the water drains by sheeting. Councilmember Zerby stated that he would say that the house that is currently on the property is probably about 30 feet above street level. Mr. Teppen stated that he believed it was less than that but would have to examine the plans to find out the exact amount. He explained that he had taken a look at this issue because he heard the same type of comments from the Planning Commission. He stated that they are dropping the front of the property where the County wall is located, but as they are moving up the site, they are really within a foot or two of the existing grade. Mr. Simning stated that the first portion of the site where the retaining wall is really where the dirt is coming out and noted that the rest will just gradually come up the hill to a plateau. Mayor Labadie opened the public hearing at 8:16 p.m. Nancy Westman, 19515 Vine Ridge Road, stated that she still has a lot of questions about this project. She asked how something that is high density, in a small space, which is also super expensive, reflected the City’s values. She stated that she was sure these would be beautiful and high-quality homes but asked if ‘regular’ folks were supposed to live in the City. She stated that she would like the Council to look at their values, greenspace, affordable housing, and other options. She asked the Council to stick to the values of holding onto the green spaces and value more than just the people who make lots of money that can afford to live in very expensive homes. She stated that people who are retiring have no place to live in the City. She asked the Council to be realistic and to look at everyone’s needs within the community. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JULY 24, 2023 Page 10 of 17 There being no additional public comment, Mayor Labadie closed the public hearing at 8:18 p.m. Councilmember Sanschagrin stated that his understanding is that the Council is being asked to review this more detailed version of the plans that were presented last time and noted that it is difficult to incorporate new things into the discussion, because it would be outside of that scope. He stated that many of the great points that were brought up by Planning Commissioner Huskins and Ms. Westman he would consider more policy and process oriented. He stated that he feels things are too far along at this point and now they need to just review this detailed plan to ensure that it conforms with what the Council had already approved at the last juncture. Councilmember Callies stated that she agreed with what Councilmember Sanschagrin was saying and also with the comments shared by Ms. Westman. She stated that the Council had a lot of earlier discussion about maintaining affordability and it does seem like there are too many homes for this site. She stated that the Comprehensive Plan requires the City to have more density but is not sure that this site, in particular is designated as the site where it has to happen. Planning Director Darling explained that this property is guided for six to eight units per acre and this proposed development is slightly below that density. Councilmember Callies stated that, in her personal opinion, it feels like this site would be better guided for commercial use, but they have not seen that type of application be presented to the City. She stated that they need to evaluate the plans that are before them. She reminded the Council that last year they had considered a concept plan for a much denser senior cooperative project that many people in the City rejected as having too much density. She stated that in terms of the trails, as mentioned by the applicant, there is no room on this particular site. She stated that she understands that there are future plans for a trail connection to Excelsior, but her understanding was that would also be the jurisdiction of the County and not just the City. She stated that if this project goes forward, there will be park dedication fees paid to the City. Planning Director Darling confirmed that there would be six thousand five hundred dollars that will be required from each unit. Mayor Labadie noted that the Council has discussed this at numerous meetings and Councilmember Callies has raised the idea that this parcel would be more appropriate for commercial usage. She noted that she had personally raised concerns about density and affordability, but there have also been concerns raised about traffic. She stated that increasing density means more cars going in and out. She mentioned the concept plan that the Council had reviewed for a large-scale senior project that wanted to share the Public Safety facility driveway. She stated that the City told them they could not use that driveway and those plans never came back. She agreed that there has not been a commercial applicant for this parcel and noted that this applicant has addressed many of the concerns that the Council had raised during the concept plan phase and has gone above and beyond what they had asked with respect to the trees. She stated that she is not sure if this is the best use of the property, however, of the applications that have come before the Council, this is the best one. Councilmember Maddy stated that in this process the Council has learned the following: that the proposal is too dense; it is not dense enough; it is too expensive; but the economics do not allow it to go in any other direction in this community. He stated that this property is zoned residential CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JULY 24, 2023 Page 11 of 17 and explained that this proposal falls into the category of ‘reasonable’ to him and is playing by most of the rules, and he is ‘okay’ with this project, as proposed. Councilmember Sanschagrin stated that he also supports this proposal. Councilmember Zerby stated that he does not support this proposal. He stated that sometimes the Council gets trapped within the ‘train’ process where the train just keeps going and gaining momentum and gets to a point where they say, ‘we cannot change things now.’ He stated that he thinks this will have a negative impact on the City and thinks approving this would be the wrong thing to do. He clarified that he thinks there is a way to do it but does not believe this is the way. Councilmember Maddy asked what the solution would be long-term. He stated that the City is zoning for more traffic than what the applicant is proposing. He asked Councilmember Zerby what his vision is for this parcel. Councilmember Zerby reiterated that he thinks it can be done, but feels the proposal needs to be more creative. He stated that their current plan is literally scraping the entire site and will essentially be like a parking lot at Target without asphalt when construction begins. He stated that he does not feel like this is a very attractive development for the City and stated that he understands that affordable is not possible for new housing without subsidies. He reiterated that with some tweaking, he thinks this project can be turned into a better fit for the City. He explained that he is opposed to this particular set of plans but not opposed to putting townhomes on the property. He reiterated that he feels more can be done to make this a more fitting project for the City. Mayor Labadie referenced the e-mails the City had received that included concerns about sidewalk access to the trail and noted that can be addressed outside of this project. Councilmember Callies noted that there is already a sidewalk in front of the property going towards the trail. Planning Director Darling gave an overview of the existing sidewalk location. Councilmember Callies stated that Tonka Bay had postponed their decision to open this up to the public through Next Door and her recollection is that there was a comment made that Tonka Bay was not sure that they wanted to rezone this property to residential, however nobody showed up to the public hearing. She stated that Tonka Bay approved the project but explained that she was unsure if those concerns were taken into consideration or not. Mayor Labadie noted that sometimes social media chatter is just chatter and noted that the Next- Door site does not restrict who can comment on an issue, so it could be people that do not even live in the area. Councilmember Zerby noted that based on the discussion, he is assuming that that this will be approved. He explained that he was still concerned about fencing and noted that most housing in the area has cedar fencing and stated that he would like to see this be consistent with the other residential fencing. Maddy moved, Sanschagrin seconded, Adopting RESOLUTION NO. 23-072, “A Resolution Approving a PUD Development Stage Plan for “Lake Park Villas” on the Property Located CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JULY 24, 2023 Page 12 of 17 at 24250 Smithtown Road.”; AND, Adopting RESOLUTION NO. 23-073, “A Resolution Approving a Preliminary Plat for Lake Park Villas for Property Located at 24250 Smithtown Road.” Motion passed 4/1 (Councilmember Zerby opposed). 7. ENGINEERING/PUBLIC WORKS 8. GENERAL/NEW BUSINESS A. Lake Minnetonka Communications Commission Survey Tom Lesser, Shorewood representative on the Lake Minnetonka Communications Commission (LMCC), stated that a survey was being conducted earlier to get feedback from member cities for the direction of the LMCC. He explained that historically, the LMCC has been self-sustaining through the use of franchise fees and PEG fees from cable television, however that has changed with the recent trend of cord cutting. He asked Jim Lundberg, LMCC, to go over the details of the survey with the Council. Jim Lundberg, Operations Manager, LMCC, reviewed the survey and options presented for consideration including Option A - a dual fund model with PEG fees and City contribution of funds; Option B - continuing with LMCC but selling assets, such as their physical building; and Option C - dissolving the LMCC in 2024. He reviewed the projected budget revenue decline and noted that they are down about thirty-five percent in their funding from where they were six years ago and acknowledged that these were stark numbers. He noted that Shorewood is the last of the cities he is presenting this information to and explained that he would be meeting with the LMCC Executive Committee on August 2, 2023, where they will discuss how the survey results would be presented to the full commission on August 10, 2023. Councilmember Sanschagrin asked about the results they had gotten from other cities. Mr. Lundberg stated that right now, their tally sheet shows that six of the cities have voted B-A-C; one city voted A-B-C; one city voted B-C-A; and two small cities are C-B-A. Councilmember Sanschagrin asked if Mr. Lundberg had any ideas for what the proceeds of the sale of the building may bring in. Mr. Lundberg stated that the insurance value is currently at about one million, two-hundred thousand dollars. He noted that he understood that did not necessarily translate to a sales price, but explained that if they could get one million dollars out of the building that would last them for eight to ten years without costing the member cities anything. Councilmember Callies stated that technology has changed and will most likely continue to change. She gave the example of cable going away entirely and asked about the time frame in which Mr. Lundberg felt the LMCC would still be relevant. Mr. Lundberg noted that their only revenue streams are based on the Cable Act of Minnesota from the mid-1970s it would mean either the cities would have to pick up those costs in order to continue to provide those services or they would have to close. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JULY 24, 2023 Page 13 of 17 Councilmember Maddy asked if there was an estimate how much the City would be out if they just gave up cable altogether. Mr. Lundberg stated that Shorewood has traditionally provided the LMCC with about 28.5% but noted that those funds are continuing to go down about 9% per year. City Administrator Nevinski noted that he believes Shorewood’s share for the 2024 budget ends up at around seventy-seven thousand five hundred dollars. Councilmember Maddy asked, if the City chose option C and did not want to operate a channel how much of those funds would be PEG and how much would be franchise fees. Mr. Lundberg stated that about eighty-five percent would be franchise fees. Councilmember Callies asked about the LMCC programming. Mr. Lundberg stated that they have some really good, award-winning programming that do things like showcase the police/fire and school districts. Councilmember Callies stated that she does not have cable and even when she did, she did not watch the LMCC programming. Mr. Lundberg noted that any program that the LMCC creates is available online. Councilmember Callies stated that she would agree that there has been some creative programming and asked if they knew how many people watch the programming. Mr. Lundberg gave examples of the election where four candidates came in to have their statements taped and, over a four-week period, had over six hundred forty views from the residents. He stated that this year, year to date, there have been three hundred seventy-four views of the City Council meetings online and last year they had six hundred and twenty-four views of government meetings online. He noted that Shorewood’s numbers for on-line views is by far the highest among the LMCC cities. Councilmember Sanschagrin asked if Mr. Lundberg felt there were opportunities to enhance communication coordination with the cities in order to provide additional visibility. Mr. Lundberg explained that they are always open to those types of discussions and to look for ways to make themselves more relevant and valuable. Mayor Labadie stated that Option A makes her very nervous since Shorewood currently comprises about 28.5% of LMCC’s budget which is almost one-third of their total budget. Mr. Lundberg stated that the only way the LMCC will continue on is if the JPA is successful and the member cities stay together. He stated that if they lost one major city, that would be the death of the LMCC. Mayor Labadie clarified that none of the other member cities have indicated that they want out of the JPA. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JULY 24, 2023 Page 14 of 17 Mr. Lundberg stated that was correct but noted that was not what tonight’s discussion was intended to be about. He reiterated that they just wanted to get feedback from the member cities on possible options. Mayor Labadie asked about the ‘long term solutions’ mentioned in the report. Mr. Lundberg explained that there have been three member cities who have expressed an interest in becoming the LMCC’s place to land if they sell their current building. He stated that they would love it if Shorewood would express this same sort of interest since they are the corner tenant that provides them with the most funding, and they feel it would be beneficial to the relationship for this opportunity to help the City receive some additional funding in the process. Councilmember Callies stated that she believes it was mentioned in the staff memo that there was a possibility of renovating the basement of the Shorewood building for this purpose. She stated that she feels the cost of those renovations may be substantial. City Administrator Nevinski stated that a rough cost would be about forty to eighty thousand dollars. He noted that he believes that they would work on some sort of lease agreement with the LMCC and figure out some sort of payback for those costs but was not sure how quickly that would take place. He stated that there would be an ADA requirement that would kick in, but he has no idea of what those costs would be. He stated that it appears as though the current ramp would not meet those requirements because it is too steep. He stated that if this was something that the City wants to explore more closely, they can try to come up with information that provides more detailed and precise information rather than such a broad swath. Mr. Lundberg explained that if Shorewood voted for option B, that would allow them to begin to put together a plan for finding an interested location. He stated that their plan would be that by the end of 2024 they would be ready to move into their new location. Councilmember Sanschagrin stated that he liked Option B the best and believes it is also the most fiscally responsible and puts the LMCC on solid footing in terms of being well-capitalized because they would have money in the bank from the sale of their building. He stated that he is amazed at how much value the LMCC has provided for their cities with the shoestring budget they have to operate with. He stated that he is concerned that Option C would burden City staff with tasks that are not built in but noted that he does see opportunities for working with the LMCC to enhance communications. Mr. Lundberg reminded the Council that this is a rank choice survey, so they would like the Council to present their first, second and third choices of the options presented. The Council discussed their opinions on ranking the options. Maddy moved, Sanschagrin seconded, to rank the rank choice options for the future of the LMCC of in the following order: B-A-C. Motion passed. Councilmember Zerby encouraged residents to contact Mr. Lundberg if they have any complaints about cable services because he considers him a sort of ‘miracle worker’ in this arena. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JULY 24, 2023 Page 15 of 17 9. STAFF AND COUNCIL REPORTS A. Staff 1. Water Quality Update Public Works Director Morreim noted that there was discussion at the recent Council retreat about water quality issues relating to iron content. He noted that over the last few months, Public Works has gathered data to see if the City had any iron testing data, but they did not find anything more recent than about fifteen years ago. He explained that staff then pulled water samples and had them lab tested for iron content. He reviewed the results of those tests for both pre- and post- treatment and compared that information to other nearby communities. He stated that most agencies in the area do have high iron content and treat the water. He noted that one of the first things they did when they got this data was switch the lead well for the west water system and adjust the water tower set point in order to reduce the iron content. He noted that for the east water system they improved the backwash of the water filter in the southeast well location and things that with more regular testing, they should be able to dial in the filter usage better and were also able to reduce the iron levels. He stated that staff have been able to significantly reduce the iron content for both the east and west water systems but noted that they are still slightly above the level where they want them to be. He noted that the changes that they have made up to this point have resulted in no cost difference, but to do anything beyond that will result in a cost and suggested that the Council have more discussion about where they want to go with the water system. Councilmember Sanschagrin asked if getting the levels to point three would reduction the discoloration on trees when people are sprinkling. Public Works Director Morreim stated that he believes that there would still be some discoloration at point three. The Council expressed their appreciation to Public Works staff for looking into this issue more closely. Councilmember Callies asked what is actually done to treat iron. Public Works Director Morreim explained that there is a filter that the water would run through. nd 2. 2 Quarter 2023 Budget Report nd Finance Director Rigdon gave an overview of the 2 quarter 2023 budget report that ended on June 30, 2023. He reviewed some of the details of revenues and expenditures, year to date, and as compared to last year. He stated that overall, there are no significant concerns with the budget report. Councilmember Sanschagrin asked if the County charged the City to advance the funds. Finance Director Rigdon stated that it is a statutory requirement. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JULY 24, 2023 Page 16 of 17 Councilmember Sanschagrin asked if there was any portion of the budget that Finance Director Rigdon was concerned about or if most of the items that were different from budget projections were due to timing. Finance Director Rigdon explained that he was not concerned and agreed that many of the differences were due to timing. nd 3. 2 Quarter 2023 Investment Report nd Finance Director Rigdon gave a brief overview of the 2023 Investment Report for the 2 quarter. He reviewed the general objectives with the priority of safety, liquidity, and yield. He explained that he foresaw no problems with the portfolio at this point in time. Other Park and Recreation Director Crossfield stated that the Concert in the Park was held last Thursday where about one-hundred and thirty people attended. She stated that Safety Camp and Movie in the Park is coming up soon and noted that they are looking for sponsors for Oktoberfest. Public Works Director Morreim stated that MnDOT has awarded the Trunk Highway 7 corridor study to KLJ Engineering and anticipates it will begin sometime this winter. He stated that they installed the flash-cam at Manor and noted that they will have the potential to move the camera around if they need to but right now its home base will be at Manor. He stated that staff has been spending time trimming trees and filling potholes and will begin some sanitary line flushing in a few weeks. Councilmember Zerby asked if there was any signage at the park that lets people know that surveillance was being used. Public Works Director Morreim noted that Badger also has cameras pointed at the bathrooms. He explained that both of the camera locations are due to significant vandalism that they have experienced. Councilmember Callies stated that there are few corners in the City where the weeds have grown and it is difficult to see, for example, Vine Hill and Covington. Public Works Director Morreim asked that they let him know. He stated that he will check on the areas mentioned by Councilmember Callies. Councilmember Zerby noted that he has been watching the SeeClickFix activity and commended the Public Works Department for doing a great job closing out obsolete items and addressing new ones. He stated that he feels the tone that the Public Works Department gives is very professional. City Engineer Budde stated that the Birch Bluff project is continuing to move forward close to schedule. He stated that for the Strawberry Lane project the contractor has indicated that they do not think they are going to hit the September 1, 2023, substantial completion goal. He stated that most of the reason is related to the slow start with the small utility relocations and the contractor not having access to the site until sometime in mid-June. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES JULY 24, 2023 Page 17 of 17 Planning Director Darling informed the Council that the Phase two of the public engagement for the Mill Street Trail Corridor will be moving forward. She stated that based on input from the initial public engagement, what will move forward from the options given is the corridor that had both on-street bike lanes and off-street trails. She explained that this will come back to the public for specific comments along the corridor. She reviewed some of the upcoming opportunities for the public to offer feedback. City Administrator Nevinski stated that he had received word late this afternoon that the SMLPD budget has been reduced to three-point nine percent and noted that he will bring those details to the Council at their August meeting. He stated that the Excelsior Fire District budget will be coming to the Council on August 14, 2023. He reminded the Council that they will hold their first 2024 budget work session on August 14, 2023, as well. He stated that his understanding is that the City is looking at some repurposing of Field five at Freeman Park for football which has spurred a bit of a larger discussion with staff about what the City wants to do with the fields and other opportunities that may exist with the associations. He stated that Police Chief Tholen will be interviewed on Fox 9 about e-bikes. He stated that it appears that the Shorewood segment of the Tonka Bay watermain project will wrap up later this week and noted that the City would be getting a new valve out of this project so they will be able to isolate the neighborhood. B. Mayor and City Council Councilmember Sanschagrin noted that he and Councilmember Maddy had participated in a Veteran’s event on July 11, 2023, that was very well attended. Councilmember Maddy thanked the staff, and everyone involved in the Concert in the Park event because it was well attended, and people looked like they were having a good time. Councilmember Callies stated that she attended the Planning Commission meeting last week and will attend the Park Commission meeting this week. She stated that she attended the SLMPD Coordinating Committee meeting a few weeks ago where they discussed the JPA. 10. ADJOURN Sanschagrin moved, Maddy seconded, Adjourning the City Council Regular Meeting of July 24, 2023, at 9:49 P.M. Motion passed. ATTEST: Jennifer Labadie, Mayor Sandie Thone, City Clerk Item 2D City Council Meeting Item Title/Subject: Approve Permanent Appointment of Communications Coordinator Eric Wilson Meeting Date: August 14, 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 February 9, 2023, Eric Wilson began his employment with the City of Shorewood as Communications Coordinator. Eric has proved to be a valuable asset in his role as Communications Coordinator and in his duties as Recycling Coordinator. Eric came to the city well qualified with experience and education in both Communications and Environmental Education. Eric’s Bachelor’s degree in Sociology and English has provided a good base for the position and his course work in Media Communications and Web Design is proving to be invaluable as we review and update our communication efforts for the city. Eric’s certification and experience in Social Media Marketing has been instrumental in increasing social media communication opportunities and platforms for the city. His experience as a Hennepin County Tree Steward and a Hennepin County Recycling Ambassador and Master Recycling Composter and his work as a MN Greencorps member with the MN Pollution Control Agency has provided an excellent base for his work in recycling and sustainability for the city. Eric has exceeded all expectations and has made significant positive contributions in his first six months of employment. Eric possesses progressive communications skills and has proved to be a valuable member of the organization. Eric is well respected and gets along well with other team members, the public, and the committees he heads up in his work. Eric exemplifies the City’s core values of Respect, Integrity, Communication, Positive Attitude, Teamwork, and Responsiveness in all he does. Financial Considerations: As delineated below. Action Requested: Staff respectfully recommends the city council approve Eric Wilson’s permanent appointment, based on his performance to date and his demonstration of the City’s desired core values and attributes, and approve a salary adjustment to Grade 10, Step D of the City’s Compensation Plan of $35.69 effective August 9, 2023. 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 Item 2E City Council Meeting Item Title/Subject: Approve Amended 2024 South Lake Minnetonka Police Budget Meeting Date: August 14, 2023 Prepared by: Marc Nevinski, City Administrator Reviewed by: Joe Rigdon, Finance Director Attachments: Amended Budget Summary Resolution Approving Amended 2024 Budget Background th The Council approved the 2024 SLMPD budget on June 26 with a 6.3% increase. Following some additional work by the Police Chief and receipt of updated numbers, the SLMPD was able to reduce the overall 2024 budget increase to 3.9%. The changes are as follows:  Increased the DWI Grant by $15,500 to $115,500 from $100K.  Increased “revenues sold” to $12,500 from $5,000 (Selling a used squad).  Removed $5,500 of the tuition reimbursement allocation from the training budget and will add $5,500 in the 2025 budget. th  Additions/changes to 2024 budget after the July 12Coordinating Committee Meeting: o Hennepin County Social worker contract increased by $3,200 to $11,200 a year. o Social Security and Medicare costs increased to $45K due to being fully staffed, State/Fed increases, and adding two officers in 2023. Financial Considerations The modifications to the 2024 SLMPD budget reduce Shorewood’s costs from $1,573,891 in June to $1,538,043, a reduction of $35,848. Shorewood’s 2023 share of the SLMPD budget was $1,481,218, a difference of $56,825. Action Requested Motion to adopt the resolution amending the South Lake Minnetonka Police Department 2024 Budget. A majority vote by the Council is 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 RESOLUTION 23-074 CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA A RESOLUTION APPROVING THE AMENDED 2024 ANNUAL OPERATING BUDGET OF THE SOUTH LAKE MINNETONKA POLICE DEPARTMENT. WHEREAS, the City of Shorewood is a member of the South Lake Minnetonka Police Department through a joint powers agreement which also includes the Ci?es of Excelsior, Greenwood, Tonka Bay; and WHEREAS, under the terms of the joint powers agreement, member ci?es must unanimously approve the annual opera?ng budget; and WHEREAS, the Chief of Police presented a proposed 2024 opera?ng budget for review by the Coordina?ng Commi?ee for the South Lake Minnetonka Police Department on June 14, 2023; and WHEREAS, the Coordina?ng Commi?ee discussed the proposed budget and recommended its considera?on by the Member’s city councils; and WHEREAS, the Shorewood City Council reviewed the proposed 2024 opera?ng budget on June 26, 2023, and finding it reasonable and appropriate to provide the desired level of public safety within the City and the South Lake Minnetonka area, adopted Resolu?on 23-066; and WHEREAS, the South Lake Minnetonka Police Department has since then amended its 2024 opera?ng budget to reduce the overall budget. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA the amended 2024 opera?ng budget of the South Lake Minnetonka Police Department, reflec?ng a 3.9% increase (reduced from 6.3%) and Shorewood’s share at $1,538,043 (reduced from $1,573,891), is hereby approved. h Adopted by the Shorewood City Council this 14 day of August 2023. __________________________ Jennifer Labadie, Mayor A?est: ____________________________ Sandie Thone, City Clerk City Council Meeting Item Item Title/Subject: Accept Final Improvements for 2022 Catch Basin & Culvert Repair & 2F Replacement Improvements Project; City Project 22-04 Meeting Date: Monday August 14, 2023 Prepared by: Andrew Budde, City Engineer Reviewed by: Matt Morreim, Director of Public Works Attachments: Resolution Background: At the August 22, 2022 Council Meeting, Council awarded the contract for the 2022 Catch Basin & Culvert Repair & Replacement Improvements Project to Schneider Excavation & Grading, Inc. The project included the reconstruction of the existing infrastructure, as well as the installation of storm sewer. Schneider Excavation & Grading, Inc. has completed all work associated with the project and is requesting acceptance of the work. Staff has reviewed the site and all remaining punch list items have been completed. Schneider Excavation & Grading, Inc., has submitted the Minnesota IC-134 Withholdings Affidavit Form, Lien Waivers, and request final acceptance. A resolution accepting the improvements for the 2022 Catch Basin & Culvert Repair & Replacement Improvements Project is included for Council consideration and approval. Financial or Budget Considerations: Schneider Excavation & Grading, Inc. was awarded the project with a bid for $68,061.50. The total amount due is for $67,546.70, which is $511.80 below the estimated project cost. The final payment amount is for $4,113.58 and will release all retainage. Action Requested: Staff has reviewed the estimate, verified quantities, and recommends approval of the resolution for final acceptance and payment for city project 22-04, the 2022 Catch Basin & Culvert Repair & Replacement Improvements Project. 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 OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 23-075 A RESOLUTION FOR FINAL ACCEPTANCE FOR THE 2022 CATCH BASIN & CULVER REPAIR; CITY PROJECT 22-04 WHEREAS, pursuant to the approved award of the 2022 Catch Basin & Culvert Repair & Replacement Improvements Project to Schneider Excavation & Grading, Inc. at the August 22, 2022, Council Meeting; and WHEREAS, Schneider Excavating & Grading, Inc. has completed all work in accordance with the awarded contract; and WHEREAS, Schneider Excavating & Grading, Inc. is requesting acceptance for the work; and WHEREAS, Staff has reviewed the estimate, verified quantities, IC-134s, Lien Waivers, and recommends acceptance of the project to Schneider Excavating & Grading, Inc. NOW, THEREFORE, BE IT RESOLVED: the City Council of the City of Shorewood hereby accepts the improvements and authorize final payment to Schneider Excavating & Grading for the 2022 Catch Basin & Culvert Repair & Replacement Improvements Project according to the plans and specifications on file in the office of the City Clerk. th ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 14 day of August, 2023. __________________________ Jennifer Labadie, Mayor Attest: ___________________________ Sandie Thone, City Clerk City Council Meeting Item Item Title/Subject: Award 2023 Pavement Seal Quote: City Project 23-04 2G Meeting Date: Monday August 14, 2023 Prepared by: Andrew Budde – City Engineer Reviewed by: Matt Morreim – Director of Public Works Attachments: Overview Map, Bid, Product Brochure, and Resolution Background: The City has planned for pavement maintenance in the Capital Improvement Plan to be able to efficiently maintain its roadway infrastructure. Pavement sealing is a maintenance practice that helps extend the service life of a roadway by reducing the number of cracks that form in the pavement by preventing the surface of the pavement from oxidizing. Oxidized pavement surface begins to show more aggregates, becomes more brittle, and resultantly lead to more cracking. Historically pavement sealing has been completed by a chip seal or fog seal in Shorewood. The chip seal process includes the application of a thin layer of liquid asphalt followed by a thin layer of rock. This process has led to a number of issues including premature failure, where the rocks became loose much earlier than anticipated, and then the resultant rocks get tracked into homes and scratches flooring. This has led to a lot of resident complaints. A fog seal is an application of a thin layer of liquid asphalt, similar to a residential driveway seal. This is a lower-cost option but has had limited success. Both the chip seal and fog seal require reapplication of pavement markings which is an additional expense. Also the current best practice is to place a pavement sealing on pavement that is between 1 and 3 years of age. A newer emerging technology is a clear penetrating pavement rejuvenator. A product by the brand name of “Replay” which is produced by BioSpan Technologies, Inc has been utilized in western metro communities over the last 10 years. The product penetrates the existing asphalt between 1/4 inch to 3/4 inch and helps reduce oxidization and aging of the pavement surface, therefore resulting in less cracking. One major benefit of the material being a clear product is that it can be placed over existing pavement markings without the need to remark them. One downside of the clear sealers is that many of the products are proprietary, and it is challenging to compare the products evenly. The Minnesota Local Research Board (LRRB), which is funded by MnDOT for the benefit of local agencies, has completed some comparison analysis of bio based clear sealers and petroleum based black sealers. Replay has ranked near the top in the analysis. Quotes for the 2023 Pavement Seal project were solicited and were received on August 7, 2023. Only one quote was received by Bargen Incorporated out of Mountain Lake, MN as they are the only certified installer of Replay in Minnesota. The quote was for $173,653.60. The unit price 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 for installation of this product is consistent with pricing that has been seen in other local communities. Staff has reviewed the quote and the quote received is accurate. Financial or Budget Considerations: The project is to be funded from the Street Reconstruction Fund item LR-99-099 where $300,000 has been budgeted. Approximately $65,000 of this budget item has been utilized by the crack seal project and the pavement evaluation technology of Vaisala. Action Requested: Staff recommends award, in the amount of $173,653.60 to the low quote, Bargen Incorporated out of Mountain Lake, MN. CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 23-076 A RESOLUTION APPROVING 2023 PAVEMENT SEAL QUOTES CITY PROJECT 23-04 WHEREAS, the City of Shorewood (“City”) is responsible for maintaining approximately 50 miles of public roadways and implements a variety of methods to maintain the roadways and extend their useful life ; and WHEREAS, the City solicited quotes for the 2023 Pavement Seal project and received one quote. The one quote was from Bargen Incorporated from Mountain Lake, MN in the amount of $173,653.60 and is the only certified installer for Replay in the areas as manufactured by BioSpan Technologies; and WHEREAS, the project is included in the 2023 Capital Improvements Plan and will fund the project from the Street Reconstruction Fund; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA AS FOLLOWS: 1. Hereby accepts and awards the low quote for the 2023 Pavement Seal Project to Bargen Incorporated in the amount of $173,653.60. Adopted by the City Council of Shorewood, Minnesota this 14th day of August 2023. __________________________ Jennifer Labadie, Mayor Attest: ___________________________ Sandie Thone, City Clerk City Council Meeting Item Item Title/Subject: Authorization to Enter into I/I Grant Program Agreement with 2H Metropolitan Council Meeting Date: Monday, August 14, 2023 Prepared by: Matt Morreim, Public Works Director Reviewed by: Marc Nevinski, City Administrator Andrew Budde, City Engineer Jared Sheperd, City Attorney Attachments: Grant Agreement – End Grant for the Shorewood Sanitary Sewer Project Background: On March 13, 2023, City Council approved the City’s participation in Metropolitan Council Environmental Services’ (MCES) I/I grant program. The grant program reimburses cities biannually for combatting inflow and infiltration (I/I). Work for the submittal was completed as part of the Glen Road, Amlee Road and Manitou Lane improvement project and lift station 7, 9 and 10 rehabilitation projects. Financial or Budget Considerations: Per the attached agreement, the City is approved for grant funds in the amount of $31,192. The funds will be reimbursed to the Sanitary Sewer Fund. Action Requested: Staff recommends that Council authorizes the City to enter into the I/I Grant Program agreement with the Metropolitan Council. Connection to Vision/Mission: Consistency in providing residents quality public services, a healthy environment, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. 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 4A City Council Meeting Item Title/Subject: Legislative Update by Rep. Andrew Myers Meeting Date: August 14, 2023 Prepared by: Marc Nevinski, City Administrator Background Rep. Andrew Myers will present a legislative update. 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 4B City Council Meeting Item Title/Subject: Recycling Advisory Committee Report Meeting Date: August 14, 2023 Prepared by: Eric Wilson, Communications & Recycling Coordinator Reviewed by: Sandie Thone, City Clerk/Human Resources Director Attachments: Proclamation Background: In 2018, City staff was approached by a Shorewood resident expressing his desire to being involved in some manner to help the city become a leader in decreasing the amount of material that is landfilled by increasing the amount of material that is reused and recycled. The following year, a proclamation was created and the Recycling Advisory Committee was formed to help guide the city’s efforts related to decreasing the amount of material that is landfilled through education and tactics geared toward improving recycling awareness and participation to increase the amount of material that is reused and recycled. In addition to assisting the council with new recycling ideas, the group also supported steps required for the city to implement its rules and regulations to comply with Hennepin County’s Ordinance 13 requirements, which regulates the separation of mixed recyclables and organic material. Between 2019 through September 2022, the committee planned and worked on various activities to meet their goals of reducing consumption, waste, and recycling contamination. Some of these activities included awareness campaigns and residential sorts. The Recycling Advisory Committee met for the first time again in May 2023. This year the group has met 5 times to update the committee’s workplan and deliverables, which includes residential sorts, city-wide organics recycling outreach and promotion, campaigns/activities that focus on easy-to-recycle items, and fostering partnerships, to name a few. Each of these approaches tie back to the committee’s objectives: (1) to reduce consumption, (2) to reduce waste, and (3) to reduce recycling contamination. Financial Considerations: No financial considerations at this time. Action Requested: No action requested at this time. 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 of Shorewood Council Meeting Item 5A Title/Subject: Resolution Accepting Compost Bin Donation and Sign Meeting Date: August 14, 2023 MEETING Prepared by: Janelle Crossfield, Parks and Recreation Director TYPE Reviewed by: Marc Nevinski, City Administrator Regular Attachments: Resolution Meeting Policy Consideration Pursuant to Minnesota State Statutes sections §465.03 and §471.17 all donations or gifts of real and personal property, including donations for the benefit of public recreational services, must be accepted by the City Council. Background: Name of Donor Amount/Item Girl Scout Troop 18018 $110 Financial Considerations The donation will offset future expenses of a compost bin and sign. Action Requested Staff respectfully recommends the City Council approve the Resolution Accepting the Donation as Delineated in the Resolution of a compost bin for Freeman Park Community Gardens. Motion, second and 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 OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 23-077 A RESOLUTION ACCEPTING DONATION TO THE CITY OF SHOREWOOD 2023 WHEREAS, the City of Shorewood is generally authorized to accept donations of real and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens, and is specifically authorized to accept gifts and is authorized to accept gifts for the benefit of their public recreational services pursuant to Minnesota Statutes section 471.17; and WHEREAS, the following persons and entities have offered to contribute a donation as set forth below to the city: Name of Donor Amount/Item Charlotte and Layla $110 WHEREAS, the terms or conditions of the donations are to be installed next to the community gardens at Freeman Park; and WHEREAS, all such donations have been contributed to the city for the benefit of its citizens, as allowed by law; and WHEREAS, the City Council finds that it is appropriate to accept the donation offered. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA AS FOLLOWS: 1. The donations described above are accepted and shall be used to establish and/or operate services either alone or in cooperation with others, as allowed by law. 2. The city clerk is hereby directed to issue receipts to each donor acknowledging the city’s receipt of the donor’s donation. Passed by the City Council of Shorewood, Minnesota this 14th day of August 2023. __________________________ Jennifer Labadie, Mayor ___________________________ Sandie Thone, City Clerk City Council Meeting Item Item Title/Subject: Accept Bids and Award Contract for Freeman Park Trail 5B Improvements, City Project 22-05 Meeting Date: Monday, August 14, 2023 Prepared by: Andrew Budde, City Engineer Reviewed by: Marie Darling, Planning Director Attachments: Bid Tabulation, Bid Abstract, Overview Map, and Resolution Background: On May 8, 2023, the Shorewood City Council approved the Final Plans and Specifications for the Freeman Park Trail Improvements project and Council had given authorization to advertise and open bids for the project. After bids were opened and identified as being higher than the engineers estimate, staff discussed with Council at the July 24, 2023 meeting how the city should proceed forward. After a good amount of discussion, Council ultimately gave the direction to staff to come back at the next council meeting with the intent to award the project in full with further discussion to be had on the bid alternatives. Bids for the project were opened on July 12, 2023. A total of six bids were received and the low bidder is submitted by Sunram Construction out of Corcoran, MN. The bids are summarized below: Bidder: Total Bid Amount (w/ Alternate): Sunram Construction $696,765.00 BCM Construction $774,774.00 Meyer Contracting $830,279.52 Peterson Companies $855,647.20 Ramsey Companies $916,722.65 Urban Companies $1,037,097.70 Staff has reviewed all the bids and based on the low bid from Sunram Construction, Inc., the construction costs of the project is 12% above the engineer’s estimate of $623,893.50. The bids received indicate that the bidding process was competitive. The project is to be substantially completed by October 27, 2023 and final completion by June 28, 2024. At this time, construction is anticipated to begin in early September. The project bid included an alternate section of the work that included repaving of the existing asphalt trail that runs on the north end of the park through the wetland area of the property. 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 This is identified as Section B-OLD on the overview figure. The base bid includes work to remove the existing pavement and surface with aggregate. The alternative would reconstruct the trail and pave with new bituminous to match other trail work in the park with this project. The projected total cost for this alternative work including all construction, engineering, and administrative work is $27,359.64. Financial or Budget Considerations: The City has included the Freeman Park Trail Improvements project in their CIP for 2023 and budgeted $400,000. In order to accommodate the $400,000 budget, the city would need to move approximately $200,000 from the city reserve fund. The project will also utilize a portion of the Miscellaneous Drainage Capital of $100,000 for the drainage improvements in the wetland north of the trails. The budget amount includes concept construction estimates and costs for engineering, administration, and legal. Three Rivers Park District has budgeted $327,000.00 for construction and associated engineering costs. The projected total project costs for the project is $836,118.00 and includes all construction, engineering, and administrative work for the project. The city’s share of the estimated cost is $509,118.00 and Three Rivers Park District’s share of the estimated cost is $327,000.00. Any final adjustments to scope can be made at this time to help ensure the project stays within the budget expectation of council. Action Requested: Staff recommends the City Council adopt the Resolution as submitted that awards the contract with Sunram Construction, Inc. in the amount of $673,965.30 for the Freeman Park Trail Improvements project. This amount does not include Alternate A. If Council would like to include Alternative A, staff recommends that they alter the resolution to include this option. CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 23-078 A RESOLUTION TO ACCEPT BIDS AND AWARD CONTRACT THE FREEMAN PARK TRAIL IMPROVEMENTS PROJECT; CITY PROJECT 22-05 WHEREAS, pursuant to an advertisement for bids for the Freeman Park Trail Improvements project, bids were received on July 12th, 2022, opened and tabulated according to law, with the following bids received and complying with the advertisement: Contractor Total Bid w/ Alternate Sunram Construction $696,765.00 BCM Construction $774,774.00 Meyer Contracting $830,279.52 Peterson Companies $855,647.20 Ramsey Companies $916,722.65 Urban Companies $1,037,097.70 WHEREAS, Sunram Construction, Inc. is the lowest responsible bidder; and WHEREAS, Sunram Construction, Inc. is a responsible and responsive contractor, that has completed projects of similar size and scope successfully; and WHEREAS, the project is included in the 2023 Capital Improvements Plan and will fund the project through the Parks Fund; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA AS FOLLOWS: 1. The City Council of the City of Shorewood hereby authorized and directed to enter into a contract with Sunram Construction, Inc. based on the lowest bid amount and not including the Alternate in the amount of $673,965.30 in the name of the City of Shorewood for the Freeman Park Trail Improvements Project according to the plans and specifications therefore approved by the City Council and on file in the office of the City Clerk.. Adopted by the City Council of Shorewood, Minnesota this 14th day of August, 2023. __________________________ Jennifer Labadie, Mayor Attest: ___________________________ Sandie Thone, City Clerk City Council Meeting Item Item Title/Subject: Approve Agreement with Three Rivers Park District for Freeman 5C Park Trail Improvements, City Project 22-05 Meeting Date: Monday, August 14, 2023 Prepared by: Andrew Budde, City Engineer Reviewed by: Marie Darling, Planning Director Attachments: Agreement, Cost Split Summary, and Resolution Background: In order to construct the trailhead connection from the Lake Minnetonka LRT into Freeman Park, the Three Rivers Park District (TRPD) requires an agreement for cost sharing and placement of a trail facility. The attached Cooperative Agreement defines the terms of the participation and long-term maintenance responsibilities for the project. The city has led the design and will lead the construction administration of the entire project and will be reimbursed by the Three Rivers Park District for all actual costs associated with development of the trailhead and access trail, not to exceed $327,000. The trail will be the city’s to maintain after it is constructed. The Three Rivers Park District will include some of their wayfinding signage that they will maintain. They ask for signs on a few parking spaces in the unpaved lot near the entrance to Freeman Park that indicate the spaces are reserved for trail users. Financial or Budget Considerations: The budget amount includes concept construction estimates and costs for engineering, administration, and legal. Three Rivers Park District has budgeted $327,000.00 for construction and associated engineering costs. The projected total project costs for the project is $836,118.00 and includes all construction, engineering, and administrative work for the project. The city’s share of the estimated cost is $509,118.00 and Three Rivers Park District’s share of the estimated cost is $327,000.00. Action Requested: Staff recommends the City Council adopt the Resolution as submitted and executes the final agreement with Three Rivers Park District for the Freeman Park Trail Improvements project. 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 OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 23-079 A RESOLUTION APPROVING AGREEMENT WITH THREE RIVERS PARK DISTRICT FOR THE FREEMAN PARK TRAIL IMPROVEMENTS PROJECT; CITY PROJECT 22-05 WHEREAS, the Three Rivers Park District (the “Park District”) operates the Lake Minnetonka LRT Regional Trail through the City; and WHEREAS, the City of Shorewood (the “City”) owns lands suitable for Lake Minnetonka LRT Regional Trail trailhead establishment at Freeman Park; and WHEREAS, establishment of a trailhead at Freeman Park requires development of an access trail connection through Freeman Park from the parking area to the Lake Minnetonka LRT Regional Trail; and, WHEREAS, the Park District requires an agreement for a proposed new trail connection to the Lake Minnetonka Regional Trail located on the Freeman Park parcel; and WHEREAS, the Park District shall reimburse the City for all actual costs associated with development of the trailhead and access trail, not to exceed $327,000. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA AS FOLLOWS: 1. The City Council of the City of Shorewood hereby approves entering into an agreement with the Park District for improvements related to the Freeman Park Trail Improvements project. Adopted by the City Council of Shorewood, Minnesota this 14th day of August, 2023. __________________________ Jennifer Labadie, Mayor Attest: ___________________________ Sandie Thone, City Clerk CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 23-080 A RESOLUTION, REVISING CODE SECTION 903.12 – CONSERVATIONS MEASURES WHEREAS, the Minnesota Department of Natural Resources notified all suppliers of a population of 1,000 that the Mississippi Headwaters watershed is in a drought warning response phase; and WHEREAS, the Minnesota’s Statewide Drought Plan directs public water suppliers to implement water use reduction actions with a goal of reducing water use; and WHEREAS, the Council reviewed and considered water reduction actions provided by city staff as part of the regular meeting agenda on August 14, 2023; and WHEREAS, section 903.12 of city code establishes water conservation restrictions limiting irrigation to the daily period before 11:00AM and after 4:30 PM unless modified by the City Council by resolution. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood, to revise current water conservation measures outline in section 903.12 of city code with the following: 1) Allow residents and businesses to irrigate before _______________AM and after _______________PM 2) Allow residents to irrigate on odd or even days per their property address. th ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 14 day of August, 2023. __________________________ Jennifer Labadie, Mayor Attest: ___________________________ Sandie Thone, City Clerk 225978v1 Item 8A City Council Meeting Item Title/Subject: Approval of 2024 Excelsior Fire District Budget Meeting Date: August 14, 2023 Prepared by: Marc Nevinski, City Administrator Attachments: Summary of 2024 Budget and Allocation by City Resolution Approving the 2024 EFD Budget 2024 Budget Detail Background The Council is asked to consider approval of the 2024 Excelsior Fire District budget. The Fire th Board recommended approval of the budget at its meeting on July 19 and is now awaiting approval of the budget from the member cities. Fire Chief Curt Mackey will summarize the budget at the Council meeting. Financial Considerations The EFD 2024 budget is $2,054,000 and is not increasing over the 2023 budget due to the retirement of debt service, although Shorewood’s share is increasing by one-half of a percent due to changes in tax capacity and the funding formula (a function of tax capacity and population). Shorewood’s actual cost will increase from $742,647 in 2023 to $746,361 in 2024, an increase of $3714. Action Requested Motion to approve the attached resolution approving the 2024 Excelsior Fire District budget. A majority vote by the Council is 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 Excelsior Fire District 2024 BUDGET 2024 OVERVIEW In preparing the 2024 budget, version 1, the following updates/changes were incorporated into the draft.  Operations and Building budget increase of 0% total.  Updated spreadsheet so that all operating expenses were calculated based upon detailed schedules contained in “2024 SalaryBenefits” and “2024 Supplies & Other” tabs.  All PERA, FICA and Medicare expenses based upon formulas embedded in spreadsheet.  2023 actual updated to include income and expenses through June.  End of year 2022 balance is $303,296, or 22.28% of operating budget. o Reserves within the recommended JPA of 20-30 percent of overall budget. 2024 CHANGES  Maintained overnight duty crew stipend on Friday and Saturday nights at $100. Maintained weekday overnight duty crew stipend at $80 per night.  INCREASED all part-time, firefighter hourly wages by 12.5% effective 1/1/2024. $16.00 to $18.00 per hour. All full-time staff 5% annual increase starting on 01/01/2024.  Funded Capital Equipment purchases support vehicle lease program and Engine 11 lease payment. Budget increase 14%.  Funded Building Improvement Fund. Budget decrease 17%.  Maintained weekend Duty Crew daytime staffing 2 firefighters at both stations.  Due to the building debt service being paid in full in 2023, those funds are transitioned into the budget mainly in staffing two new full time positions along with inflation cost throughout the rest of the 2024 budget. The fire board unanimously decided to have a 0% increase or decrease in the budget and move the $37,000 surplus funds into the reserves for potential anticipated inflationary costs in the next two or three years. 2024 KEY FINANCIAL NOTES  Assumptions: o Staffing predictability and availability will continue to challenge the organization resulting in the need to continue to invest in the duty crew model. o Duty officer program will continue to be needed until additional full-time staff can be added. o Estimated 5-8% growth rate for all operating expenses except health insurance which was set to 10% o Organization complexity along with service demands and desire to achieve a balanced life/work for firefighters will result in the addition of some full-time positions beginning Q3 and Q4 2024. o Fund reserves with a target reserve of 23% to 26%. o Leverage the elimination of mortgage debt into needed staffing. o Continue fire district marketing campaign (branding video, interactive Facebook and website pages), recruitment and retention to maintain paid on call model moving forward augmented with career fireground and administrative staffing. 2024-2026 CHANGES  Adding financial projections to building improvement fund to provide funding for roof replacement, boilers, interior concrete flooring, and other unanticipated building maintenance costs.  ADD full-time Assistant Chief effective 7/1/2024 o Assist Fire Chief with day-to-day operations including response. o Manage duty crew schedules, payroll, training and station duties o Focus on grant funding opportunities o Staff and officer development o Emergency Management risk reduction  ADD three (3) full-time Deputy/Battalion Chiefs in 2024-2026 on 24-hour shifts. o Significantly REDUCE load on current duty officer program o INCREASE daily fireground and response resources o Continue succession planning program o Cover and supervise duty crews during the day and night. o Manage: Training, Administration, and daily operations  REDUCED duty officer coverage for non-full-time coverage days for vacation/sick time coverage only RESOLUTION 23-081 CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA A RESOLUTION MAKING APPROVING THE 2024 ANNUAL BUDGET OF THE EXCELSIOR FIRE DISTRICT WHEREAS, the City of Shorewood is a member of the Excelsior Fire District through a joint powers agreement which also includes the Ci?es of Excelsior, Greenwood, Deephaven, and Tonka Bay; and WHEREAS, under the terms of the joint powers agreement, member ci?es must unanimously approve the annual budget; and WHEREAS, the Fire Chief presented a proposed 2024 opera?ng budget for review by the Board of Excelsior Fire District on July 19, 2023; and WHEREAS, the Board discussed the proposed budget and recommended its approval by the member’s city councils; and WHEREAS, the Shorewood City Council has reviewed the proposed 2024 budget and finds it reasonable and appropriate to provide the desired level of fire protec?on within the City and the South Lake Minnetonka area. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA the proposed 2024 budget of the Excelsior Fire District, reflec?ng a zero percent overall increase, with Shorewood’s share being $746,361, an increase of one-half of a percent, is hereby approved. th Adopted by the Shorewood City Council this 14 day of August 2023. __________________________ Jennifer Labadie, Mayor A?est: ____________________________ Sandie Thone, City Clerk Item 8B City Council Meeting Item Title/Subject: Tobacco License – Jim’s Liquor Meeting Date: August 14, 2023 Prepared by: Sandie Thone, City Clerk/Human Resources Director Reviewed by: Marc Nevinski, City Administrator Brenda Pricco, Deputy City Clerk Attachments: Resolution 23-082 Background: Pursuant to Section 302 (Sale of Tobacco) of the Shorewood City Code and the Shorewood Master Fee Schedule, retailers within the city limits who wish to sell tobacco products are required to obtain a license from the city. Shorewood City Code provides that an applicant completes an application and pays a licensing fee to be considered for a city retail tobacco license. On April 25, 2022, the Shorewood City Council approved a new liquor license for Jim’s Liquor located at 19905 Highway 7 in Shorewood and in 2023 renewed the license in good standing. We received an application for a Retail Tobacco License from Nebeel Hassan and Gurinder P. Singh; NGBS, Inc. DBA Jim’s Liquor located at 19905 Highway 7 in Waterford Center. Mr. Hassan has successfully submitted a complete application, successfully passed a background investigation through South Lake Minnetonka Police Department (SLMPD), paid the current annual tobacco license fee of $250 and signed and is compliant with all requirements for obtaining a license and has agreed to abide by the city code tobacco licensing requirements. This section of code includes providing access to the police department during regular business hours and an annual compliance check. The period of this license to sell tobacco in the City of Shorewood is effective upon approval and through October 31, 2023. At that time the license will come up for annual renewal along with other tobacco licenses for the period of November 1, 2023 through October 31, 2024. The Legislature approved adult use cannabis products in the 2023 legislative session. The City’s 2022 moratorium prohibiting the sale of limited THC products expired in July of 2023. The MN Department of Health provides guidance for limited THC product sales. Low dose (<0.3%) hemp derived THC sales are now allowed in Shorewood and the City is not regulating sales. THC products are available to those 21 years of age and older. Sales are limited to 5mg/serving and 50mg/package. Products are required to be located behind the counter and locked. No artificially derived ingredients are currently allowed except for Delta 8 and Delta 9. Violations are reported to the MN Department of Health. On or before October 1, 2023, retailers of hemp derived THC must register with the Minnesota Department of Health. Registration opened August 1, 2023. Beginning in 2025, hemp derived THC retailers will also need to obtain a license from the State Office of Cannabis Management and register with the City. Use of cannabis by adults 21 and older is legal in Minnesota as of August 1. The sale of cannabis products is not currently legal in Minnesota but is expected to become legal in 2025. In 2025, the State Office of Cannabis Management will issue licenses for retail sales of cannabis products through the State Office of Cannabis Management. Registration with the City of Shorewood will be required. The City will be studying zoning regulations regarding where and when cannabis sales may occur in Shorewood and may consider prohibitions regarding smoking in public places, such as parks. Financial or Budget Considerations: The licensing fees of $250.00 collected as revenue offset the expense of issuing the permit pursuant to Shorewood’s Master Fee Schedule. Recommendation/Action Requested: Motion: Staff respectfully requests the city council approve Resolution 23-082: Shorewood Retail Tobacco License to Nebeel Hassan and Gurinder P. Singh; NGBS, Inc. DBA Jim’s Liquor located at 19905 Highway 7 in the Waterford Center in Shorewood, MN 55331 to Sell Tobacco Products through October 31, 2023. Motion, Second, and Simple Majority required. CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 23-082 A RESOLUTION APPROVING A LICENSE TO TO SELL TOBACCO PRODUCTS IN THE CITY OF SHOREWOOD TO NGBS, INC. DBA JIM’S LIQUOR WHEREAS, Sections 302 of the Shorewood City Code provide for the licensing of the sale of tobacco products in the city and requires all licensees comply with the code; and WHEREAS, the Shorewood City Code provides that an applicant shall complete an application, pay a licensing fee, and successfully pass a background investigation; and WHEREAS, the following applicant has satisfactorily completed an application, paid the appropriate fee, and passed a background investigation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood as follows: That a License for the sale of tobacco products be issued for a term from August 15, 2023 to October 31, 2023, consistent with the requirements and provisions of Chapter 302 of the Shorewood City Code to the following applicant: Applicant Address Nebeel Hassan and Gurinder P. Singh 19905 Highway 7 NGBS, Inc. DBA Jim’s Liquor Shorewood, MN 55331 ADOPTED by the City Council of the City of Shorewood this 14th day of August 2023 _______________________________ ATTEST: Jennifer Labadie, Mayor ____________________________________ Sandie Thone, City Clerk Item 8C City Council Meeting Item Title/Subject: Public Purpose Expenditure/Employee Wellness and Recognition Policy Meeting Date: August 14, 2023 Prepared by: Sandie Thone, City Clerk/Human Resources Director Reviewed by: Marc Nevinski, City Administrator Jared Shepherd, City Attorney Attachments: Public Purpose Expenditure/Employee Wellness and Recognition Policy Resolution 23-083 Background All expenditures made by City employees using City funds must be for a public purpose. An expenditure is made for a public purpose if it: (1) will benefit the community as a body; (2) is directly related to functions of government; and (3) does not have as its primary objective the benefit of a private interest. Expenditures: After a thorough review of the existing policy and practices, the city administrator, city attorney’s office and the city clerk/human resources director worked on revisions to the policy that are based on the analysis that Courts generally use to review public purchase expenditures 1) the expenditure must be for a public purpose, and 2) there must be authority for the expenditure. Employee Wellness and Recognition: The Office of the State Auditor has stated that properly established programs should be in writing and should include clear recognition and wellness objectives. MN Statute, Section 15.46 authorizes expenditures toward employee wellness and recognition programs. City funds may only be spent as necessary to achieve the objectives of established wellness and employee recognition programs. The statute does not apply to city council members, commissioners, or volunteers. The Office of the State Auditor states public entities may not pay for spouses or third parties to attend a recognition event. The attached Public Purpose Expenditure/Employee Wellness and Recognition Policy provides guidelines for the city regarding expenditures that are for public purposes. 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 Financial Considerations The financial impact of the Public Purpose Expenditure/Employee Wellness and Recognition Policy is laid out within the framework of the policy and is budgeted for in each budget cycle under the specified budget and line item for that coming year. The city council has the final authority each budget cycle to review the public purpose expenditures and regulate accordingly. Action Requested Staff respectfully recommends the city council review the City of Shorewood Public Purpose Expenditure/Employee Wellness and Recognition Policy and recommends approval of Resolution 23-083, adopting the Shorewood Public Purpose Expenditure/Employee Wellness and Recognition Policy with any recommended changes as deemed appropriate. Motion, second and simple majority vote required. CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 23-083 A RESOLUTION APPROVING A PUBLIC PURPOSE EXPENDITURE/EMPLOYEE WELLNESS AND RECOGNITION POLICY WHEREAS, all expenditures made by city employees using city funds must be for a public purpose; and WHEREAS, an expenditure made for a public purpose must benefit the community as a body, is directly related to functions of government and does not have as its primary objective the benefit of a private interest; and WHEREAS, Minnesota Statute 15.46 authorizes expenditures toward employee wellness and recognition objectives; and WHEREAS, The Office of the State Auditor has stated that properly established programs should be in writing and should include clear recognition and wellness objectives. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood that the City of Shorewood Public Purpose Expenditure/Employee Wellness and Recognition Policy is hereby approved. ADOPTED by the City Council of the City of Shorewood this 14th day of August 2023 _______________________________ ATTEST: Jennifer Labadie, Mayor ____________________________________ Sandie Thone, City Clerk