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07-24-23 CC Reg Mtg MinutesCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, JULY 24, 2023 MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. Mayor Labadie called the meeting to order at 7:00 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 a -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 a -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 a -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. 2 2"d Quarter 2023 Budget Report Finance Director Rigdon gave an overview of the 2nd 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. 3. 2"d Quarter 2023 Investment Report Finance Director Rigdon gave a brief overview of the 2023 Investment Report for the 2"d 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: ` J nnif r Labadie, Mayor :yk Sandie Thone, City Clerk