10-10-23 CC Reg Mtg MinutesCITY OF SHOREWOOD
CITY COUNCIL REGULAR MEETING
TUESDAY, OCTOBER 10, 2023
MINUTES
CONVENE CITY COUNCIL REGULAR MEETING
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
7:00 P.M.
Mayor Labadie called the meeting to order at 7:02 P.M. and announced that the City was having
a problem with their Zoom video connection.
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; Park and Recreation Director
Crossfield; and, City Engineer Budde
Absent: None
C. Review Agenda
Councilmember Sanschagrin asked to add an item under New Business — Appointment of Parks
Commissioner.
Maddy moved, Zerby seconded, approving the agenda, as amended.
Motion passed.
2. CONSENT AGENDA
Mayor Labadie reviewed the items on the Consent Agenda.
City Administrator Nevinski explained that there was a typographical error on item D and should
state `to not waive'. He noted that related to item G, within the quote there is a hyperlink that
would take them to the Master Services Agreement, which he did not feel was very clear in the
staff memo. He explained that he wanted to call that out in case it was not clear and noted that
they had also provided copies of it for the Council.
Councilmember Sanschagrin asked to remove items D and F for separate discussion.
Councilmember Callies asked to remove item G for separate discussion.
Sanschagrin moved, Callies seconded, Approving the Motions Contained on the Consent
Agenda and Adopting the Resolutions Therein.
A. City Council Work Session Minutes of September 25, 2023
B. City Council Regular Meeting Minutes of September 25, 2023
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C. Approval of the Verified Claims List
(moved to 8.13)
E. Approve Retail Tobacco License Renewals, Adopting RESOLUTION NO. 23-
098, "A Resolution Approving Annual Retail Tobacco License Renewal."
F. AppFeve Resolution of Support Mill Street Trail and Water -main Cap"
Bending Request (moved to 8.C)
(moved to 8.D)
H. Approve Recruitment for Seasonal Rink Attendants
I. Approve WAC Assessment Agreement for 26370 Peach Circle, Adopting
RESOLUTION NO. 23-101, "A Resolution Approving and Adopting a Special
Assessment."
J. Encroachment Agreement for 5880 Prestwick Court, Adopting RESOLUTION
NO. 23-102, "A Resolution Approving an Encroachment Agreement with
Property at5880 Prestwick Court"
K. Approve HVAC Maintenance Agreement
Motion passed.
3. MATTERS FROM THE FLOOR
Patricia Arnst 5480 Teal Circle explained that she was here tonight to discuss Indigenous
People's Day. She noted that the State legislator had recently passed a law that eliminates
Columbus Day and noted that the City website has a few references still in place and asked that
they make the necessary changes to follow the correct terminology for this holiday.
Mayor Labadie directed staff to ensure that the City's information matches the State information
and terminology.
4. REPORTS AND PRESENTATIONS
5. PARKS
6. PLANNING
A. Review Agreements Related to Lake Park Villas
Applicant: TSML Properties
Location: 24250 and 24320 Smithtown Road
Planning Director Darling gave an overview of the proposed Development and PUD Agreement;
Joint Service Agreement; Stormwater Maintenance Agreement; and the Private Street and
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Encroachment Agreement. She reviewed proposed changes to the language in various parts of
the agreement.
Councilmember Zerby noted that he would also like to proposed some language changes under
the Development and PUD agreement and explained that he would like to see daily clean-up of
the roads during the excavation process.
Councilmember Callies referenced paragraph 18 where she believes there was a discrepancy
and a typographical error. She stated that many of the plans are listed within the approvals, but
then time goes on and no one is able to find the plans and asked that the work to ensure that
somewhere in the City there is a whole document that has all this information in one place. She
stated that she does not want it to be a situation where those plans disappear ten years down the
road when someone wants to make an amendment.
Planning Director Darling stated that she agreed with Councilmember Callies and explained that
she usually puts them in permanent storage immediately following their approval.
Councilmember Sanschagrin asked about the process of deciding which city would provide which
utility service.
Planning Director Darling explained that there were extensive discussions between the two cities
and noted, for example, that Tonka Bay has a watermain within a few feet of the property. She
outlined some of the other factors in determining the utility choices and clarified that they were
simply working towards efficiency.
Mayor Labadie confirmed that the City of Tonka Bay was also reviewing these agreements at
their city council meeting tonight.
Zerby moved, Maddy seconded, Adopting RESOLUTION NO. 23-103, "A Resolution
Approving the Agreements Related to Lake Park Villas at 24250 and 24320 Smithtown
Road", with the modifications as discussed during the meeting, and authorizing the Mayor
and city to execute them in a form approved by the city attorneys. Motion passed.
7. ENGINEERING/PUBLIC WORKS
A. Eureka Road Open House Report
City Engineer Budde explained that on September 21, 2023 the City held an Open House for
proposed improvements on Eureka Road which was scheduled for 2025 construction within the
CIP. He noted that in March of 2023 a petition was received by the City which had been signed
by about forty residents informing the City that they wanted the roadway resurfaced in 2024 due
to its poor condition. He stated that they also communicated that they did not want other work
such as curb and gutter or widening to occur. He explained that based on this feedback the
Council had directed staff to pause on completion of the scoping study for this project until they
could engage in additional public engagement. He stated that for the Open House, staff prepared
two options for consideration: Option One — Reclamation with addition of curb and sidewalk on
the east side or Option Two — Mill and overlay and no curb or sidewalk. He noted that about
three -fourths of the feedback from the Open House was in favor of not adding a sidewalk, not
removing trees, and were generally in support of Option Two. He noted that there was some
discussion at the open house of some type of `middle of the road' option that would provide a bit
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more robust of a fix for the roadway than a mill and overlay. He reviewed some of the feedback
they received about drainage issues in the area and the desire for a presentation on the
information and explained that staff was looking for direction from the Council on this project.
Councilmember Zerby stated that he would like to move forward with the option presented that
updates the online engagement tools and provide additional open house with a presentation in
November 2023. He stated that he feels they owe it to the residents to have a better presentation
and does not want the City to simply spin their wheels without getting this additional feedback
from the residents.
Mayor Labadie noted that it was a well -attended open house and in addition to residents all five
Councilmembers as well as many staff members were present. She noted that there was a large
portion of individuals who felt strongly about the desire for another presentation or Open House.
She noted that she feels there is time to examine this more closely and noted that the Open House
got heated at times and thinks that resetting and starting over may be beneficial. She noted that
included in the packet was fifteen pages of comments, so the online, interactive method of
communication appears to be working. She stated that the City also received several letters and
emails that were also included in the packet.
Councilmember Sanschagrin stated that some of the specific feedback he heard was that they
would have liked to have some time of presentation in the beginning and that the start time may
have been a bit too early.
Councilmember Callies stated that she agreed with the idea of having a more formal presentation
but feels that City Engineer Budde is asking for additional guidance from the Council on the
specific things outlined in his report. She stated that she thinks they need to hone in a bit on what
it is they want at the presentation and not just expect him to come up with an infinite number of
possibilities.
Councilmember Zerby noted that he thinks some of this information can just be done generically,
for example, show pictures of roads in the City that have the hybrid or curb and gutter and still
have bituminous edge without actually drilling down and looking at it address by address or be
able to show what a dedicating biking/walking lane would look like on a road. He stated that he
thinks there needs to be more of a presentation made, but that it also include more information.
He gave the example of the terms reclamation versus reconstruction that the Council may be
familiar with, but may not be things that the general public would immediately be able to
understand what the difference would be which could be explained during the presentation. He
reiterated that he did not think they needed to dig into each individual address and decide how
the individual drainage issues would be addressed.
Mayor Labadie stated that she agreed and noted that they had received a request for this work to
be done in the summer of 2024 however the City has put together its budget and this project was
not included. She stated that information should be explained to the residents so they understand
the planning and budget process and timeline.
Councilmember Callies stated that she likes the idea of exploring a rural type pathway to help
address safety concerns without having to have a huge sidewalk.
City Engineer Budde stated that whatever direction the Council gives, they are prepared to hold
another Open House in November.
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Councilmember Maddy explained that what he would like to see is a list of generic options, for
example, reclaim with a sidewalk, only mill and overlay, or a dedicated non -auto lane which rough
life -cycle costs attached to each option.
Councilmember Zerby noted that he did not think the term `Open House' was the correct one to
be used in this instance and referenced other communities who have called this a `Street
Improvement Neighborhood Meeting' and suggested that may be something the City considers
as well.
Mayor Labadie stated that she liked that terminology much better than 'open house' and asked if
they could make that change.
The Council discussed the possible format and expectations for a street improvement
neighborhood meeting.
City Engineer Budde stated that the direction he felt the Council was giving was to do everything
outlined in the staff report except for the focus on the drainage issues. He stated that he would
suggest that they push this information out online prior to the meeting in order for people to have
time to absorb the information before the meeting.
The Council discussed changing the time to be slightly later to begin at 6:00 p.m. rather than 5:00
p.m.
8. GENERAL/NEW BUSINESS
A. Appointment of Park Commissioner
Councilmember Sanschagrin explained that the Council had interviewed Michelle DeGruttulo
during the earlier Work Session meeting and noted that they had found her to be a strong
candidate who they felt would be a strong asset for the Park Commission. He explained the
discussion of appointing her to serve a term that would end on February of 2027.
Sanschagrin moved, Callies seconded, Appointing Michelee DeGruttulo to serve as Park
Commissioner with a term to expire February 2027, as discussed. Motion passed.
B. LMCIT Liability Coverage Waiver
City Administrator Nevinski explained that as staff was in the process of doing the annual
insurance renewal, one of the things that needs to come directly to the Council is the decision on
whether or not to waive the statutory tort limits. He explained that generally, cities do not waive
those limits and clarified that staff is recommending that the City not waive the statutory limits.
He noted that they were also recommending that they consider purchasing excess liability
insurance coverage.
Mayor Labadie sked City Attorney Shepherd to weigh in on this issue.
City Attorney Shepherd explained that the reason for this recommendation as around the idea is
that if the City waives those limits, someone could come in and bring a suit and get more than the
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statutory limits and reiterated that as City Administrator Nevinski stated, almost all cities choose
not to waive those limits, which is what they are recommending as well.
Councilmember Sanschagrin stated that he agrees that the City should choose not to waive those
limits but noted that he would like to know the cost of the additional liability coverage that was
being recommended.
City Administrator Nevinski stated that if the City waived the tort limits and purchase additional
liability insurance, the premium would increase by about three point five percent (3.5%) but noted
that he was still waiting for a quote on adding additional liability.
Councilmember Maddy asked if the Council was being asked to make a decision on additional
liability coverage tonight.
City Administrator Nevinski stated that he was working under the assumption that the cost for this
increased coverage will be nominal and the plan, unless the Council said not to do it, would be to
move forward and incorporate it into the budget.
Callies moved, Maddy seconded, that the City not waive the statutory tort limits related
to the LMCIT Liability Coverage. Motion passed.
Councilmember Sanschagrin stated that he was not sure that he felt that he had enough
information regarding the recommended additional liability coverage.
City Administrator Nevinski noted that the City has typically purchased excess liability coverage
and noted that the only question is whether they want to increase it from one million to two million.
He reiterated that his expectation was that making this change will fall within the existing budget
and that they would look for the advice of their counsel and insurance agent.
Councilmember Sanschagrin stated that with the idea of potential cost savings, he would like to
have the option of not getting the additional coverage, if it doesn't make sense financially. He
stated that he understands that City Administrator Nevinski is saying that it probably will make
financial sense, but it is hard to make that determination without having the information in front of
him.
Councilmember Maddy asked if those final numbers could be brought back before the Council at
a future meeting.
City Administrator Nevinski stated that he believed the policy expires sometime in November.
Councilmember Callies asked about the history of this issue and if the City had used the excess
liability coverage.
City Administrator Nevinski explained that the budgets and operations have been increasing, so
having some additional coverage probably makes sense. He noted that he thinks they can bring
this information back for Council consideration.
Councilmember Callies stated that she did not want the Council to end up being penny wise and
pound foolish and explained that staff had looked into this and were recommending some
additional insurance.
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City Administrator Nevinski clarified that this issue was not really before the Council for a decision
tonight and was intended as something that staff was informing the Council about looking into.
The Council agreed to have this information come back to the Council for review when the quotes
are received.
C. Approve Resolution of Support Mill Street Trail and Watermain Capital Bonding
Request,
Planning Director Darling explained that staff had submitted a request to the Capital Bonding
project in order to help fund the Mill Street Trail and Watermain project. She noted that the
bonding is for fifty percent of the cost of the project, including inflation. She stated that required,
as part of this request, is a resolution of support from the City Council.
Councilmember Sanschagrin stated that he wanted to point out an issue that he was made aware
of that could impact the City's approach on water projects. He read aloud language that stated
that if an improvement is ordered by the Council, benefitting properties shall be assessed
pursuant to the procedures put forth under Minn. Statute Section 429. He stated that his question
is, given this language, whether the City was able to fund water projects through debt and if they
would be required to assess the properties that are benefitting.
City Administrator Nevinski stated that within City code, it does appear that there is language that
says that if improvements are made, they `shall' be assessed. He stated that they need to look
into this more closely and take a look at what has happened because the City has, historically not
assessed for projects. He noted that it seemed a bit odd that the City would `handcuff' itself that
way without giving some options on how they fund a project.
Councilmember Maddy asked if this was taking about the water access charge or something more
related to the construction.
City Administrator Nevinski stated that he thought it was talking about the actual improvement
and not just the connection.
City Attorney Shepherd referenced City Code 903.18 Water Improvement Process. He noted that
he has not seen anything like this before and while he felt it was confusing, he was not sure it
would hamstring the City's ability to enact the resolution in front of the Councill tonight, but noted
that they did think they should look into this moving forward.
Planning Director Darling explained that without this resolution, the City would essentially be
tossed out of consideration for this project.
Maddy moved, Callies seconded, to Approve Resolution of Support for Mill Street
Trail and Watermain Capital Bonding Request, Adopting RESOLUTION NO.23-100,
"A Resolution of Support for the Mill Street Trail Corridor and Watermain Project."
Motion passed.
Mayor Labadie noted that staff had been directed to look at this portion of the City Code and bring
it back to the Council for further discussion.
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D. Approve Website Contract with CivicPlus
City Clerk/HR Director Thone stated that the Council, at their September 25, 2023 meeting had
supported moving forward with CivicPlus for the new City website. She explained that this item
is the actual contract with CivicPlus and noted that the City Attorney has reviewed the contract
and has recommended approval, as it has been presented. She noted one area that the city
attorney's office highlighted in the contract and that was explained in the staff report was regarding
Section 48 and noted that they had highlighted it because they wanted staff to be aware of this
section because it includes a timeline to respond and although they stated it would unlikely that
CivicPlus would remove this language, it should be noted so staff is aware of it. Thone noted that
if this contract is approved, there was a tentative timeline of what the City can expect moving
forward that was included in the packet. She explained that it is a pretty aggressive timeline
because the City's current contract with the current provider expires in March.
Councilmember Callies explained that she had asked that this item be removed from the Consent
Agenda because she had a number of questions. She stated that she understands that what is
presented appears to be CivicPlus' standard contract but asked if anyone had asked them about
this section and the included language.
City Attorney Shepherd stated that he was not sure because Amy Schmidt in his office was
working on this contract.
City Clerk/HR Director Thone clarified that Ms. Schmidt's message to the City was that this
language would typically not be removed and reiterated that she just wanted staff to be aware of
it.
City Attorney Shepherd stated that it appears as though the question was not asked, but they can
go back and ask. He stated that he would agree that if there is a master agreement such as this,
they are usually not inclined to make changes. He noted that he does believe that there was one
that happened within Public Works that was along these same kind of lines and they were able to
make a few tweaks to it.
Councilmember Callies stated that the other point she noticed in that paragraph there is a
provision that the City would have to notify CivicPlus within ten days and if the City continues to
use the service following the updates, which they will not know about right away, would be
considered acceptance, which seems to be outside of the ten day time period. She stated that
this seems like an onerous provision in her opinion.
City Attorney Shepherd stated that he understood her concerns but suspects that they would
interpret it to be after the ten days, but agrees that this has not been particularly artfully drafted.
Councilmember Sanschagrin asked if staff had spoken with other cities that may have had issues
with this clause.
City Clerk/HR Director Thone stated that they had not heard about any issues from other cities.
She noted that it does say that they will give the City written notice.
Councilmember Maddy expressed concern that it could just be a pop up in an end user licensing
agreement update that says `do you agree' as it gives you thirty pages of material to read, because
nobody ever actually reads it. He noted that he did not like the company for pushing this particular
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item on the City, but understood it was probably fairly common. He stated that perhaps if they
end up doing something malicious to the City, then they will just have to let every other city know
what they have done. He stated that while he does not like this, he understand that this is how it
works.
City Clerk/HR Director Thone stated that CivicPlus has a good reputation, and a lot of major cities
use their services. She stated they have a good reputation to maintain and doubts they would
abuse this. Councilmember Zerby agreed, stating he has no concerns regarding this contract.
Callies moved, Sanschagrin seconded, to approve the Website Contract with CivicPlus,
as presented. Motion passed.
9. STAFF AND COUNCIL REPORTS
A. Staff
Park and Recreation Director Crossfield stated that the CivicRec program is up and running for
activity and shelter registration. She noted that they hosted the Oktoberfest activities last
weekend where they had about four hundred people in attendance and noted that the Excelsior
Rotary Club estimates were for about two -thousand people for their portion of the event.
Mayor Labadie stated that she felt the Oktoberfest event was a really nice event for the City and
people from many age groups and thanked staff for their efforts.
City Engineer Budde stated that the water filter portion of the Smithtown Pond project was being
constructed this week. He stated that curb is down for the Birch Bluff project and plans are to
pave this week, weather permitting. He noted that curb and gutter were placed today for
Strawberry Lane and they hope to have most of the concrete finished by the end of the week.
Councilmember Callies noted that she had seen a sign indicating that Radisson Road would be
closed next week.
City Administrator Nevinski noted that the City had just received word earlier today about that
closure and explained that it was due to Lift Station #11. He noted that he believes information
will be distributed door to door about this planned closure.
Planning Director Darling stated that the Met Council has accepted the City's Comprehensive
Plan as a complete document and began their review. She stated that thus far, it has passed
their review and she anticipates that it will be an item on their consent agenda later in the month.
She stated that the first deer management hunt will be held this coming weekend to assist in
culling the City's herd.
City Clerk/HR Director Thone gave an update on the meeting technology plans to address staffing
and technical issues. She noted that the annual audit for Laserfiche will occur next week and
stated that there will also be some additional training for staff. She stated that annual benefits
open enrollment meeting for City staff is in about a week. She stated that the City will be having
its first BCA audit on November 1.
City Administrator Nevinski stated that there is a buckthorn removal meeting at Eddy Station on
October 17, 2023 at 5:00 p.m.
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B. Mayor and City Council
Councilmember Zerby attended the Excelsior Fire District Fire Prevention Open House and noted
that he enjoyed his interaction with the SLMPD.
Councilmember Sanschagrin stated that he had also attended the Fire Prevention Open House
and the Oktoberfest festivities. He thanked staff for all their work putting together such a great
event.
Councilmember Maddy stated that he was able to attend a portion of the Oktoberfest activities as
well as the Open House.
Councilmember Callies noted that she also attended the Fire Prevention Open House which is
always a great event. She stated that she was able to stop in at Oktoberfest and feels that there
was a good turn out and people enjoyed themselves. She noted that she had also attended the
Planning Commission meeting last week.
Mayor Labadie stated that girl scouts who were donating a compost bin to the community garden
have completed their project and noted that they had it on display at Oktoberfest. She stated that
every Friday she does something called Shorewood Friday Focus on Facebook. She explained
that it was recently brought to her attend that Ryan Brant from the Public Works Department had
recently participated in two divisions of the Minnesota Recreation Park Association Annual
Maintenance Rodeo. She stated that Mr. Brant took second place in the zero turn mower agility
course and placed in the top five of the skid steer skills course. She stated that Mr. Brant is the
youngest member in the department.
10. CLOSED SESSION
Pursuant to Minnesota Statutes, section 13D. 05, subdivision 3(b), as permitted by
Attorney Client Privilege, the City Council will be moving into a Closed Session to
discuss Alex and Elena Ugorets v. City of Shorewood, et al.
Maddy moved, Zerby seconded, to move into Closed Session, Pursuant to
Minnesota Statutes, section 13D. 05, subdivision 3(b), as permitted by Attorney
Client Privilege, the City Council will be moving into a Closed Session to discuss
Alex and Elena Ugorets v. City of Shorewood, et al. Motion passed.
11. ADJOURN
Maddy moved, Labadie seconded, Adjourning the City Council Regular Meeting of October
10, 2023, at 9:13 P.M. Motion passed.
ATTEST:
Jennifer Labadie, Mayor
Sanie Thone, Ci y Clerk