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11-27-23 CC Reg Mtg Agenda Packet CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS MONDAY, NOVEMBER 27, 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 November 13, 2023 Minutes B. City Council Regular Meeting Minutes of November 13, 2023 Minutes C. Approval of the Verified Claims List Claims List D. Approve Holiday Schedule City Clerk/HR Director Memo E. Approve Quote for SCEC Audio Visual Equipment Parks/Rec Director Memo CITY COUNCIL REGULAR MEETING AGENDA Page 2 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. Spring/Summer Photo Contest Winners Communications Coordinator Memo 5. PARKS A. Consider Quote for Buckthorn Removal Contract for Public Works Director Memo Freeman Park 6. PLANNING A. Report by Commissioner Eggenberger for 11-21-23 Planning Planning Director Memo Commission Meeting 7. ENGINEERING/PUBLIC WORKS A. Award Quote for SE Well Rehabilitation, City Project 23-07 City Engineer Memo Resolution 23-119 8. GENERAL/NEW BUSINESS A. Hazardous Building Declaration City Attorney Memo Location: 5815 Club Lane Resolution 23-120 B. Renewal of Property and Casualty Insurance Premium City Administrator Memo C. Premium Option Workers Compensation Insurance City Administrator Memo D. Participation in DuPont and 3M PFAS Settlements City Administrator Memo E. Approve Earned Sick and Safe Time Policy City Clerk/HR Director Memo Resolution 23-122 CITY COUNCIL REGULAR MEETING AGENDA Page 3 9. STAFF AND COUNCIL REPORTS AND DISCUSSION 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, NOVEMBER 13, 2023 5:15 P.M. MINUTES 1. CONVENE CITY COUNCIL WORK SESSION MEETING Mayor Labadie called the meeting to order at 5:15 P.M. A. Roll Call Present. Mayor Labadie; Councilmembers Labadie, Callies, Maddy, Sanschagrin, and Zerby; City Attorney Shepherd; City Administrator Nevinski; Parks and Recreation Director Crossfield; City Clerk/HR Director Thone; Finance Director Rigdon; Planning Director Darling; Director of Public Works Morreim; and, City Engineer Budde Absent: None B. Review Agenda Zerby moved, Maddy seconded, approving the agenda as presented. Motion passed 5/0. 2. ENTERPRISE FUNDS DISCUSSION Finance Director Rigdon gave a general overview of the projected future balances in the City’s utility funds, including: water, sewer, and storm sewer, and explained that these funds were designed to pay for themselves via user charges. Councilmember Sanschagrin asked if there were any ideas or observations about why Chanhassen’s rates were so low. Finance Director Rigdon stated that he does not know and was something that staff could check into. Councilmember Sanschagrin stated that the way he calculated this information it appears as though it was roughly about $600 per household. Councilmember Callies stated that there are 1,500 accounts that use City water and also 1,500 not using City water. She asked how that compared to overall households and if those numbers basically meant that there were 3,000 households in the City. City Engineer Budde stated that was about right. Councilmember Callies asked about the difference between the operating revenues and the operating cash. CITY OF SHOREWOOD WORK SESSION COUNCIL MEETING MINUTES NOVEMBER 13, 2023 Page 2 of 7 Finance Director Rigdon explained that there is operating income and under that there is a statement of position which rolls in everything including large capital items and long term debt. He noted that, in his opinion, the cash number is what the Council should be reviewing in full. Councilmember Sanschagrin asked how much the analysis had taken into account the new connections on Strawberry Lane. Finance Director Rigdon explained that there were ten connections budgeted, per year, in this scenario, throughout its duration. He noted that in the five years he has been with the City they have averaged between ten to fifteen connections per year. Councilmember Callies stated that she thought the report had indicated that the City had over estimated the number of connections. Finance Diregor Rigdon confirmed that they had initially over-estimated the connections when they first provided this information, at thirty to forty connections per year. City Engineer Budde noted that this was largely from when the Minnetonka Country Club was coming on line when they were getting around thirty, but now that it is mostly built out they are back to the lower number. Councilmember Sanschagrin stated that part of the challenge with the water fund is that there are lots of costs and infrastructure but do not have as many people hooking up, which means it becomes an economic issue and the City will have to find a way to compensate through something like user fees. Councilmember Callies noted that she feels there are some inconsistencies within the City code in terms of the costs of water and how it is being paid for. She stated that there is not a lot of incentive for people to hook up, and suggested that this may be a good topic for a larger discussion at the Council Retreat. Councilmember Zerby stated that this topic has come up in past conversations and noted that they talked about things like having a half-priced sale to encourage people to hook up, but that raised concerns about whether it would be fair to the others who paid full price. Mayor Labadie noted that they had touched briefly on this issue at last year’s Retreat and anticipates that it will be a topic for the upcoming Retreat as well. Councilmember Callies referenced various sections of the Code related to hook ups such as 903.04, Subd. 3D. She noted that she believes the City needs to have a consistent policy so some people are not paying the cost of construction and others are only paying for the hook up fee. Mayor Labadie asked if Planning Director Darling had noticed inconsistencies in the City’s ordinances. Planning Director Darling explained that she did not work very often with the water code, but agrees that the issue was pretty apparent when you look at a situation where someone is interested in extending the watermain, even if it is just a short distance. CITY OF SHOREWOOD WORK SESSION COUNCIL MEETING MINUTES NOVEMBER 13, 2023 Page 3 of 7 City Engineer Budde stated that he deals with this the most and confirmed that Councilmember Callies was correct that when it is neighborhood or resident driven, for example, come to the City with a petition, the Code says that they will basically pay for the project, which will most likely be $50,000 per property. He noted that if the project has been in the City’s CIP, such as Strawberry Lane, then the City has not assessed or pushed the total cost onto the adjacent property owners and have just charged the hook up. Councilmember Callies stated that if the City wants to have a policy about this, she thinks it should be clarified for consistency. She stated that it would not necessarily need to be in the Code but could just be in a City policy of some kind. Councilmember Sanschagrin explained that he had done some quick calculations on possible rate increases that would get the City to be able to break even and cover cash flows that came out to about thirty percent for the next three years. Councilmember Callies stated that she has some articles that she will bring for the Retreat and noted that there is a significant cost in not spending money for infrastructure in terms of quality of life and sustainability of the City. She stated that always looking to cut costs is not necessarily in the best interests of the residents. She noted that she thinks they need to look at the actual dollar amounts and not percentages, because they give a more realistic idea of what these increases will mean for people. Mayor Labadie noted that there was a lot of information to digest but felt that Finance Director Rigdon did a good job laying it out for the Council. She stated that she liked that there was also information comparing the City with other nearby cities. Councilmember Zerby asked that future information show if the other cities had a treatment plan or not so they are making sure to compare apples to apples. Councilmember Sanschagrin stated that for the sewer fund it appears as though the vast majority of the costs are the Met Council fees. Finance Director Rigdon stated that was correct. Councilmember Sanschagrin asked if the Met Council’s growth, over time, matched up with the nine percent that the City is using. Finance Director Rigdon explained that the City has been a bit behind in that because their fees have been going up fairly high. Councilmember Sanschagrin asked how they calculated their charges. Finance Director Rigdon stated that was determined by the flowage. Councilmember Maddy asked City Engineer Budde about the water access charges. He noted that sidewalks and sewers seem to be a lot cheaper when the City is doing a road reconstruction project. He stated that they ran the numbers to connect their two water supply systems and it was around $50,000 per household and asked what the added cost as for Birch Bluff or Strawberry Lane per household. CITY OF SHOREWOOD WORK SESSION COUNCIL MEETING MINUTES NOVEMBER 13, 2023 Page 4 of 7 City Engineer Budde stated that he did not have that information tonight, but can provide it for a future discussion. Public Works Director Morreim stated that he can say that it was more than $10,000. Councilmember Maddy stated that he feels the City is not charging enough for access. Councilmember Callies stated that years ago, when she was on the Council, there was a similar discussion about the charges. She explained that she had found some minutes from that time that discuss the water access charge which was $10,000 at that time and the City Attorney made a comment that the charge had been the same for many years and was woefully inadequate even back then. She stated that she feels that fee needs to be re-evaluated, but also has to be some amount that provides for an incentive for people to hook up as well, or perhaps they should think about not doing it. Councilmember Maddy stated that if it is spread out far enough where it does not make economic sense to provide City water, that is something that can be accepted, however, there may be a water quality issue on top of this. He stated that he does not know how many PFAS chemicals are in the higher aquifer that individual residents are pulling versus the deeper aquifers that the City pulls from. Mayor Labadie stated that she did not think the City had that information because private wells are not tested unless it is through a private testing company. She noted that she assumes that the deeper you go, the better the water will be. Public Works Director Morreim stated that there are variables on one City street and gave the example of one side of the street having bad water and having a desire to connect to City water and the other side of the street having no issues and are not interested. Councilmember Callies asked how they move forward. City Administrator Nevinski stated that this information is really a snapshot of where the City is currently located and noted that it was intended as a bit of a preparatory discussion for the Retreat. He stated that there are a lot of questions that need to be considered and thinks that staff will bring some different scenarios to the Retreat that they can model for the Council. He noted that if there are specific things the Council would like to see modeled that would be helpful information for staff to have ahead of time. He stated that not all of the City being served by water is also a possibility. He suggested that perhaps the Council can put together some sort of strategy that promotes water connection where it is most efficient and is needed the most. He stated that this should be part of the conversation and then the City can focus its energy and resources on things like connecting the east and west systems. He noted that this issue will not be resolved tonight or mostly likely at the Retreat, but gives them moving in a direction and begin to develop a strategy. Councilmember Zerby stated that he feels one of the components is also looking at the economics of the service. He stated that he is not an engineer, but questions whether the City needed six wells and asked if there may be some efficiencies that they can put into place. CITY OF SHOREWOOD WORK SESSION COUNCIL MEETING MINUTES NOVEMBER 13, 2023 Page 5 of 7 Public Work Director Morreim suggested that they add this topic as a discussion point for the Retreat. He stated that having two separate systems is probably not the most efficient way to run water system and agreed that there may be some efficiencies that can be gained in certain areas. Councilmember Sanschagrin stated that he feels it would also be helpful for the Council to have more data on water quality, even on the private wells, if people were willing to share any of the testing data they have. Public Works Director Morreim stated that they had been in discussions with some residents about testing data for their households, for example Christmas Lake Point. Councilmember Callies stated that she feels it is very unrealistic that the Christmas Lake Point area will be getting City water any time soon, at an economical price. City Engineer Budde stated that he expects the pricing will be somewhere in the $50,000+ range. Councilmember Callies stated that she did not think there were many places left in the City where it would be efficient to hook up to City water. Councilmember Zerbv shared the mixed feelings of residents on his street to City water and noted that he expects this dichotomy is true throughout the City. Mayor Labadie asked if the Council had any more points that they would like staff to talk about at the Retreat relating to water, sewer, and storm water. Councilmember Sanschagrin stated that he would like to understand more about how the Met Council prices their services. He stated that he would also like to see an analysis of average cost per user and how it compares to the other cities. He suggested that the comparison also include other communities such as Orono or Victoria. Councilmember Maddy noted that if there is a city doing this more efficiently than Shorewood, he would like to be able to understand what they are doing. City Administrator Nevinski noted that staff will take a look at this idea and noted that it may not even need to be a neighboring city, but just a city that is like Shorewood. Public Works Director Morreim noted that he would be giving a report to the Council in December on the new technology for the roads and how it relates to the CIP. Councilmember Callies asked if a neighborhood would move up on the list if there was strong interest from them in having improvements put in. Public Works Director Morreim stated that hopefully if the conditions are bad enough, they are looking at programming that in the near future. Councilmember Zerby stated that he is very skeptical of these numbers seeing the cost that the City has bore over the last few years and noted that it almost feels like they should double them. He noted that from what he has seen in his service to the City is that the squeaky wheel is what gets attention. CITY OF SHOREWOOD WORK SESSION COUNCIL MEETING MINUTES NOVEMBER 13, 2023 Page 6 of 7 Mayor Labadie stated that she thinks everyone on the Council has heard this type of squeaky wheel noise from residents and suggested that they alert staff with what they have heard. The Council listed off Radisson Road, Minnetonka Boulevard, Brackets Road, Boulder Bridge, Country Club and Yellowstone Pass through, as ‘squeaky wheel’ roads. Councilmember Sanschagrin stated that when they talk about this again he would like to understand what this will do to the City’s budget and debt levels. 3. WINTER MAINTENANCE PRACTICES/PLANS Public Works Director Morreim gave an overview of plans for winter operations and plans for improvements in 2023 and 2024. He noted that the goal was to find a way to be more efficient, more effective, and practice environmentally responsible operations. He reviewed snow and ice management priorities, training, Mayor Labadie noted that there are many changes from the City’s old policies and encouraged the Council to clearly understand them and be able to explain them to residents and if not, to point them in Public Works Director Morreim’s direction. She stated that she thinks everything presented were good steps that will move the City in a positive direction. Councilmember Zerby stated that he was thrilled with these plans and believes they will be great for the City and the environment. He encouraged staff to put an article in the Shore Report to explain that changes will be coming. Councilmember Maddy noted that he had gone through the Smart Salting training and thanked Public Works Director Morreim for making this a priority. He noted that he believes the City can use less salt and have better outcomes if it is done correctly. Councilmember Sanschagrin asked if there was an opportunity to recycle the sand. Public Works Director Morreim explained that the cost to recycle the sand because of the necessary treatment, makes it pretty cumbersome and cost prohibitive. He noted that he believes the only agency that ever really did anything like that was MnDot but noted that they own the necessary equipment. Councilmember Sanschagrin asked if the City could collect the sand and reuse it the following year. Public Works Director Morreim stated that could not be done and explained that typically it would need to be used in a base and covered because it would typically be classified as hazardous waste. Councilmember Sanschagrin asked if there was another cost effective way to service the island. Public Works Director Morreim stated that he has not had a relationship with their neighboring community, but that is on his radar. CITY OF SHOREWOOD WORK SESSION COUNCIL MEETING MINUTES NOVEMBER 13, 2023 Page 7 of 7 Councilmember Zerby noted that the City had asked in the past and the answer they received was that they did not have the resources to do it. Councilmember Sanschagrin asked about the possibility of contracting it out to a third party. Public Works Director Morreim stated that they can consider it, but would most likely have to go out there anyway. Mayor Labadie noted that the City of Maple Plain had contracted their snow removal last year which was essentially a disaster, so much so that the mayor ended up formally apologizing to the City and it was featured on the news because threats had been received. She stated that she would highly discourage independent contractors for the City streets. Public Works Director Morreim noted that the information he presented tonight was in its draft form and explained that he would be bringing a final version back to the Council sometime in December. Councilmember Sanschagrin asked how the City handled private roads, for example, if they were treated as driveways. Public Works Director Morreim stated that he believes the City plows them essentially like a driveway and the expectation would be that a contractor would then come in and open it up when they plow it. Councilmember Callies stated that the new Maple Shores development has a private street that that was not listed in this information. Public Works Director Morreim agreed that needed to be added and noted that this was something he is planning to bring to the Council on an annual basis and things like that will be added and updated because this is a living document. 4. ADJOURN Maddy moved, Sanschagrin seconded, Adjourning the City Council Work Session Meeting of November 13, 2023, at 6:37 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, NOVEMBER 13, 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 Zerby moved, Maddy seconded, approving the agenda, as presented. Motion passed. 2. CONSENT AGENDA Mayor Labadie reviewed the items on the Consent Agenda. Callies moved, Zerby seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. City Council Regular Meeting Minutes of October 23, 2023 B. Approval of the Verified Claims List C. Assign Development Contract for Excelsior Woods. Adopting RESOLUTION NO. 23-109, “A Resolution Authorizing the Assignment of the Development Agreement for Excelsior Woods Located at 20325 Excelsior Boulevard.” D. Approve Independent Contract with Roots and Wings Therapeutic Services, LLC E. Approve SCEC Attendant Hires F. Approve Memorandum of Agreement for AFSCME Members CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES NOVEMBER 13, 2023 Page 2 of 8 G. Utility Operate Pay Issue, Adopting RESOLUTION NO. 23-110, “A Resolution to Pay Utility Operators Backpay to Resolve Utility Operate Pay Discrepancy” H. Approve Timesaver’s Addendum to Recording Secretary Services Agreement for 2024 I. Approve Food Truck Permit for SCEC Rental, Adopting RESOLUTION NO. 23-111, “A Resolution Granting a Food Truck Permit for a Private Rental at Shorewood Community and Event Center” J. WAC Assessment Report, Adopting RESOLUTION NO. 23-112, A Resolution Certifying Special Assessments on the 2024 Hennepin County Property Tax Rolls” K. Approve WAC Assessment Agreement for 26625 Strawberry Court, Adopting RESOLUTION NO. 23-113, “A Resolution Approving and Adopting a Special Assessment.” Motion passed. 3. MATTERS FROM THE FLOOR Steve Klimowicz, 26135 Shorewood Oaks Drive, noted that he wanted to comment on items related to the buckthorn initiative related to chemical applications, contractor obligations, the DWP fire department burning, and the long-term plan. He noted that the product Garlon 4 can be harmful to aquatic life and is discouraged around wetlands and he feels that the City should reconsider its use around site three in Freeman Park. He stated that he would like to ensure that the community has advance warning and that signing be posted prior to spraying. He asked that the contractor not block any of the existing trails when they clear cut and stack the buckthorn. He noted that if the contractor does any damage the trail system, especially in the wooded area, that it be repaired back to its original state. He stated the community would like to have advance notice about when the DWP fire burning will take place. He stated that the DNR has stated that follow up is critical and it was also expressed at the meeting at Eddy Station that there was a need for long term planning and funding. Mayor Labadie thanked Mr. Klimowicz for his comments and explained that staff would look into them and report back at a future meeting. Barry Brown, 6050 Burlwood Court, stated that he feels there are still a number of unanswered questions regarding buckthorn removal and feels that there was conflicting information that came from the community meeting on October 13, 2023. He explained that they were told that the stems of the buckthorn would be cut back and would need to be sprayed within two hours. He stated that the project proposal says that Garlon 4 is considered a post-emergency herbicide, which means the plant has to be growing and must be applied during active growth periods. He asked when the contractor would be spraying this product and noted in their last proposal they were to come back twice. He asked how close to the pond or wetland areas would the contractor be spraying and if there would be a silt fence around the pond. He noted that the wetland water by Shorewood Ponds runs directly into the new Smithtown Ponds which he has been told replenish the aquifers and move directly into Lake Minnetonka. He asked how this would be treated since CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES NOVEMBER 13, 2023 Page 3 of 8 there is a stickiness to this herbicide. He stated that the hard costs for the fire department were not included in the proposal, nor were the soft costs of things like Public Works employees, Mayor Labadie suggested that Mr. Brown provide his list of items to the City for further investigation. Mr. Brown stated that he can do that and noted that he also has EPA sources listed that discuss the things he has mentioned. 4. REPORTS AND PRESENTATIONS Motion passed. 5. PARKS A. Report by Commissioner Hirner on October 24, 2023 Park Commission Meeting Mayor Labadie noted that Parks Commissioner Hirner was not present and asked Parks and Recreation Director Crossfield to give an update to the Council. Park and Recreation Director Crossfield gave an overview of the October 24, 2023 Park Commission meeting as outlined in the meeting minutes. B. Consider Quote for Buckthorn Removal Contract for Freeman Park Public Works Director Morreim reviewed the project history, schedule, public input, project details, quotes and proposed contract for the buckthorn removal in Freeman Park. Councilmember Sanschagrin stated that his understanding is that the City is required to include some type of chemical treatment as part of the grant. Public Works Director Morreim explained that he would have to check on that detail. Councilmember Sanschagrin asked if the City had considered any options other than the Garlon 4 product and asked if it would be sprayed or applied. Public Works Director Morreim stated that Gralon 4 was the recommended product form the DNR and explained that the proposal outlines that the product would be applied to the stumps. Councilmember Sanschagrin stated that the Council was presented with information tonight about Garlon 4 needing to be applied at certain times of the year and explained that he would like to have more information on that detail as well as the concerns raised about the proximity to the wetlands. Public Works Director Morreim stated that he would need to follow up on that information. Councilmember Zerby noted that it feels like there are still a lot of unanswered questions and asked if there was a timeline for accepting this proposal. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES NOVEMBER 13, 2023 Page 4 of 8 Public Works Director Morreim he stated that if the Council needed to push a decision back in order to get answers to their questions it would just push back the start date of any treatment, but noted that because there is not a contract, they were not included on the contractors schedule yet. Councilmember Zerby asked if Public Works would be in attendance to supervise the process of the removal and treatment. Public Works Director Morreim confirmed that Public Works would be present to supervise. Councilmember Zerby asked if use of this chemical fell in line with the City’s Integrated Pest Management (IPM) program. Public Works Director Morreim explained that spot treating with it would fall in line with the City’s IPM. Mayor Labadie stated that at one point they had talked about utilizing the Fire Department and placing the material in piles and burning them and in this proposal that does not appear to be part of the plans and asked why that had changed. Public Works Director Morreim stated that the proposal was using more mechanical methods so there will not be a whole lot left to stack and will basically be mulched up instead of burned. Mayor Labadie stated that she felt Councilmember Zerby made a good point with the question about the timing because she agreed that there are still a lot of open-ended questions remaining. She noted that she understood that there was a deadline for removal related to the grant funds and asked if delaying this item until staff can bring the Council more information on those questions would jeopardize that deadline. Public Works Director Morreim stated that he did not think delaying a bit would jeopardize meeting the deadline for the grant. Mayor Labadie suggested that the Council move this item to a future agenda in order to give staff time to bring back some answers to the questions that were raised by the resident as well as those raised by the Council. Councilmember Maddy asked if snow cover would hinder the ability of the contractor to do this work. Public Works Director Morreim stated that he did not believe it would be effected because he assumed that even if this was approved tonight, the work would not be included on their schedule until December or January. Zerby moved, Sanschagrin seconded, to continue discussion of the Quote for Buckthorn Removal Contract for Freeman Park to a future meeting in order to allow staff time to provide answers to questions that were raised this evening. Motion passed. 6. PLANNING CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES NOVEMBER 13, 2023 Page 5 of 8 7. ENGINEERING/PUBLIC WORKS A. No Parking – Enchanted/Shady Islands and Strawberry Lane, Birch Bluff Public Works Director Morreim and City Engineer Budde reviewed the existing conditions and gave an overview of details regarding the proposal to prohibit parking in certain areas along Enchanted Lane, Enchanted Drive, Shady Island Road, Strawberry Lane, Grant Lorenz Road, and Birch Bluff Road. Councilmember Zerby asked if the City had heard any feedback from residents in terms of the need for ‘No Parking’ signs. Public Works Director Morreim explained that this process had started last spring and began with the residents. He noted that there was already sort of a no parking area and this proposed action solidifies it and fills in the gaps. Councilmember Zerby gave the example of an Amazon truck making a delivery and stopping along the road and asked if that would be considered parking. Public Works Director Morreim stated that he believes that this type of temporary parking situation for a delivery would be overlooked. Councilmember Zerby stated that he also wanted to express his appreciation for the way these items were laid out in the resolutions. Zerby moved, Callies seconded, Adopting RESOLUTION NO. 23-115, “A Resolution to Prohibit Parking for Both Sides of Enchanted Lane and Shady Island Road and Enchanted Drive.” Motion passed. Callies moved, Maddy seconded, Adopting RESOLUTION NO. 23-116, “A Resolution to Prohibit Parking on the West Side of Strawberry Lane; City Project 19-05.” Motion passed. Callies moved, Maddy seconded, Adopting RESOLUTION NO. 23-117, “A Resolution to Prohibit Parking on the North Side of Birch Bluff Road and the West Side of Grant Lorenz Road; City Project 21-01.” Motion passed. 8. GENERAL/NEW BUSINESS A. Public Hearing: Certification of Assessment for Unpaid Charges Finance Director Rigdon noted that this public hearing was related to certification of an assessment for unpaid charges such as water, sewer, recycling, and stormwater. He gave a brief overview of notification, delinquent fees, payment options, and the overall assessment amount. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES NOVEMBER 13, 2023 Page 6 of 8 Councilmember Maddy asked if the City turned off the water supply for non-payment. Finance Director Rigdon stated that he was not aware of the City ever taking that action and reiterated that because this assessment is certified that City will be getting their money back. Councilmember Sanschagrin asked if these delinquent accounts represented a number of years or if the amounts shown were just for 2023. Finance Director Rigdon stated that it was just for 2023. Mayor Labadie opened the public hearing at 7:40 p.m. Planning Director Darling noted that there was one individual on-line who had indicated a desire to address the Council. Nancy Westman, 19515 Vine Ridge Road, stated that they had new water meters installed and their bill has astronomically gone up despite their use decreasing. She asked about the validity and reliability of the new meters in terms of providing accurate readings. Public Works Director Morreim stated that the meters were accurate but noted that they could certainly review the individual situation at any addresses that were concerned. Mayor Labadie asked what steps a resident should take if they want to have their situation reviewed. Public Works Director Morreim suggested that they contact him. There being no additional comment, Mayor Labadie closed the public hearing at 7:42 p.m. Councilmember Sanschagrin asked for an explanation of what would happen if this resolution is approved. Finance Director Rigdon explained that these accounts would be certified for an assessment that is collected through the property taxes by the County. Maddy moved, Sanschagrin seconded, Adopting RESOLUTION NO. 23-118, “A Resolution Certifying Unpaid Charges on the 2024 Hennepin County Property Tax Rolls.” Motion passed. 9. STAFF AND COUNCIL REPORTS A. Staff 1. New Website Kick-off Meeting City Clerk/HR Director Thone gave a brief overview of the first kick-off meeting for the new website which should be completed by March 31, 2024 and answered Council questions. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES NOVEMBER 13, 2023 Page 7 of 8 Park and Recreation Director Crossfield stated that on November 11, 2023 the Southshore Senior Partners and the American Legion hosted a Veteran’s luncheon where they had around sixty participants. She stated that the tai chi program has surpassed their minimum requirements for registrations. She noted that they would be closed on November 16, 2023 for utility work and explained that she would be working remotely that day. She stated that the Parks Commission meeting was cancelled for November. Public Works Director Morreim stated that the fall sweeping was continuing and should be completed before Thanksgiving. He noted that the Public Works Department is continuing to prepare for winter and would be patching Yellowstone later this week. He stated that notices will be sent out regarding the water meter replacement project which he hopes will begin the first week of December. City Engineer Budde stated that he expects the current construction projects to finish up before Thanksgiving. Planning Director Darling stated that there were fourteen deer harvested as part of the 2023 Deer Management Program which is a bit lower than what has been done in the past. She noted that on October 25, 2023, the Met Council concluded their review of the Comprehensive Plan and it will now move into the implementation phase. City Clerk/HR Director Thone thanked Councilmember Callies for bringing up an issue with printing files off of Laserfiche. She stated that because she brought this to their attention they were able to address that issue so now people should be able to transfer, print and download those files directly from the website. City Administrator Nevinski noted that they are planning another Eureka Road neighborhood meeting on November 30, 2023 at 5:30 p.m. B. Mayor and City Council Councilmember Maddy stated that last week he was at the Lake Minnetonka Communications Committee (LMCC) meeting where they voted to sell the real estate that is owned by the LMCC and use those funds for operations as they figure out their new plan. Mayor Labadie expressed appreciation for City staff for their work with the Students Achieve Independent Living (S.A.I.L.) program in partnership with the Minnetonka schools. She specifically noted the efforts of Public Works Director Morreim, Park and Recreation Director Crossfield, City Clerk/HR Director Thone, Planning Assistant Carlson, and City Administrator Nevinski. She stated that on October 24, 2023 there was an Emergency Communications training session at the Public Safety building. She stated that the Regional Council of Mayors took a group of mayors to the Minnesota Department of Health which was very informative in numerous areas. She noted that the Minnesota Mayor’s Executive Committee held their annual business meeting where she was appointed as the fourth vice-president. She explained that their meeting was held in Wyoming where they took a tour of the Polaris facility and noted that Wyoming was also the home of Rosenbauer, which is well known for manufacturing fire trucks. She stated that she attended the Regional Council of Mayors meeting earlier today and tomorrow would be attending a meeting to form a coalition of mayors and city administrators for the Highway 7 corridor. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES NOVEMBER 13, 2023 Page 8 of 8 10. ADJOURN Sanschagrin moved, Maddy seconded, Adjourning the City Council Regular Meeting of November 13, 2023, at 7:59 P.M. Motion passed. ATTEST: Jennifer Labadie, Mayor Sandie Thone, City Clerk Item 2D City Council Meeting Item Title/Subject: Approve Holiday Schedule Meeting Date: November 27, 2023 Prepared by: Sandie Thone, City Clerk/Human Resources Director Reviewed by: Marc Nevinski, City Administrator Attachments: None Background: Shorewood’s Personnel Policy allows for one half-day holiday for Christmas Eve and one full day holiday for Christmas Day. Christmas day lands on Monday, December 25, 2023, and will be designated and observed as the one-day paid holiday for regular FT and PT (on a pro-rated basis) Shorewood employees. Friday, December 22, 2023, will be designated as the Christmas Eve holiday and be paid at a half day holiday for regular FT and PT (on a pro-rated basis) Shorewood employees. Phone and walk-in business is typically very slow the week of Christmas and leading up to the New Year. In addition, many employees opt to utilize vacation days for some or many of these days. Staff is requesting to officially close city hall this year all day on Friday, December 22, 2023, in observance of the Christmas Eve Holiday. City Hall Staff may use personal, vacation, or accrued comp time for the additional hours not covered by holiday pay. As established by the Union contract, the Public Works Department will remain open for the half-day on Friday, December 22, 2023. City Hall closures are posted on the city website and posted on the front door at City Hall. Action Requested: Staff respectfully recommends the city council authorize the official closure of City Hall for the Christmas Eve Holiday on December 22, 2023 and allow staff to use personal, vacation or comp time for the additional hours not covered by holiday pay. Motion, second and simple majority. City Council Meeting Item Item Title/Subject: Spring & Summer 2023 Photo Contest 4A Meeting Date: Monday, November 27, 2023 Prepared by: Eric Wilson, Communications & Recycling Coordinator Reviewed by: Sandie Thone, City Clerk/Human Resources Director Attachments: 2023 Spring & Summer Photo Contest Winners PPT Background: On November 16, 2017 the city rolled out its first photo contest and six years later we have just completed our twelfth bi-annual Community Photo Contest. The goal of the latest contest was for participants to submit photos that show off the joy of living in Shorewood in the Spring and Summer months. The contest entrants submitted photos in the following four categories: (1) Summer Delights, (2) Spring Wonder, (3) People and Pets, (4) Wildlife Winners in each category will have their photos framed and displayed at City Hall or the Shorewood Community & Event Center and will each receive a framed print. Submissions were received from the first day of Spring and due by October 31, 2023. We had 16 total submissions. City Hall staff voted anonymously. The winners of the Spring/Summer 2023 photo contest are as follows: Summer Delights Category: Last Rays of Summer, submitted by Judy Voigt Englund Spring Wonder Category: Christmas Lake Road by Molly Bragg People and Pets Category: Sunday Funday with Daddy by Merry Beth Freienmuth Wildlife Category: Blue Heron Thoughts, submitted by Bryan Oakley Financial or Budget Considerations: N/A Action Requested: N/A City Council Meeting Item 5A Title/Subject: Award Quote and Service Agreement for Buckthorn Removal Project Meeting Date: November 27, 2023 Prepared by: Matt Morreim, Public Works Director Reviewed by: Marc Nevinski, City Administrator Attachments: October 17, 2023 Buckthorn Meeting Handouts Responses to Questions at 11/13/2023 Council Meeting Service Agreement w/ Quote Background: Buckthorn is an invasive plant that can displace native vegetation and harm wildlife. In 2021, the City of Shorewood received a $50,000 MnDNR grant with a $20,000 city match for buckthorn removal in Freeman Park. The grant deadline to complete buckthorn removal is June 30, 2024. The city met with residents on October 17, 2023 to inform residents of project details (see meeting handouts) and receive feedback on the project. In order to complete the buckthorn removal work, the city solicited for and received quotes for the removal of buckthorn in Freeman Park from Davey Resource Group, Prairie Restorations, Inc. and Tree Trust. The city evaluated the quotes based on the following criteria:  Cost  Experience  Timeline  Proposed methods – Mechanized removal or manual removal Staff recommended to award to Prairie Restorations, Inc. for the buckthorn project during the November 13, 2023 meeting. During the meeting, there were questions raised by a resident and council and council directed staff to provide responses to questions at a later council meeting. Staff attached responses to the questions from the meeting. After reviewing quotes, contractor experience, and considering resident feedback, staff recommends awarding the project to Prairie Restorations, Inc. The city has coordinated with Prairie Restorations, Inc. to complete all buckthorn removal in areas two and three and partial removal of area one. Area one removal will focus on the east side of the area and move westwardly. It is proposed and recommended to perform a foliar spray in the fall of 2024 to inhibit new growth from occurring. The proposed methods detailed in the attachment are in line with the city’s IPM workplan. Financial or Budget Considerations: The cost of the buckthorn removal project will be funded through MnDNR grant ($50,000) and a city match. The city match of $17,000 would be funded through operations budget for Department 52 – Parks Maintenance. The remainder of the $20,000 city match ($3,000) is accounted for with city staff time. Action Requested: Motion to approve the contract with Prairie Restorations, Inc. for Buckthorn removal in Freeman Park. TO: Mayor and Council FROM: Ma? Morreim, PW Director DATE: November 21, 2023 SUBJECT: Follow-up Ques?ons/Answers from November 13 Council Mee?ng 1. Is chemical treatment required by the grant? a. Sec?on 2.8 of the grant states: Follow all Invasive Species regula?ons, policies and procedures of the Department of Natural Resources (DNR) to prevent or limit the introduc?on, establishment, and spread of invasive species (see sec?on 4.2). This requirement applies to all ac?vi?es performed on all lands under this grant contract and is not limited to lands under DNR control or public waters. 2. Will there be silt fence installed around the wetland area in area 3? a. No. Silt fence is designed to remove silt and suspended solids from running oﬀ. 3. When will the chemical be sprayed or applied? a. For manually cut trees, Garlon 4 will be applied shortly a?er the buckthorn is cut directly to the stump, within 1-2 hours. For the forestry mowed areas, a foliar spray applica?on is recommended the following fall. 4. How close to the wetland will chemicals be applied? a. Treatments will be applied by licensed applicators to the aﬀected areas in accordance with their applica?on guidelines. 5. What are DNR recommenda?ons close to wetland? a. DNR suggests using aqua?c version of triclopyr or glyphosate. 6. Concerns about the temperature for chemical applica?on? a. Oil based products like Garlon 4 can be applied under 32F. The foliar treatment is a water- based product that would be applied next fall when temperatures are above 32F. 7. How does triclopyr get treated in our drinking water system. a. Drinking water systems (public and private) are wells and not surface water. Triclopyr rapidly breaks down in surface water. When exposed to sunlight, the half-life of triclopyr ranges from 3 hours to less than 5 days (US Forest Service). Field studies by US Forest Service found very li?le indica?on of leaching in loamy soils. Generally, Shorewood soil is loamy or clay soil. 8. What will happen to restora?on of the area? a. Steps will be taken to minimize any turf or trail disturbance. Any damage will be restored by the contractor or City. 9. Plan for future maintenance? a. City staﬀ plan to plant small trees following a foliar treatment to develop the understory with na?ve plants. City staﬀ would look for direc?on from the council on a future direc?on of buckthorn removal around the city, including budget and methods for removal. A dra? plan could be developed in the ﬁrst half of 2024. 5755 Country Club Road, Shorewood, MN 55331 ● 952.960.7900 ● www.ci.shorewood.mn.us 10. Addi?onal cost for ﬁre department and public works employees. a. It is an?cipated that there will be no involvement from the ﬁre department as part of this project. Public works staﬀ will be u?lized for inspec?on and miscellaneous func?ons as needed. These func?ons are normal job du?es that city staﬀ perform for projects that occur in the city. 2 PROFESSIONAL SERVICES AGREEMENT FOR BUCKTHORN REMOVAL th THIS AGREEMENT is made this November 28, 2023 (“Effective Date”) by and between Prairie Restorations, Inc., with its principal office located at 601A Lewis Avenue North, Watertown , MN 55338 (“Contractor”), and the City of Shorewood, Minnesota, a Minnesota municipal corporation located at 5755 Country Club Road, Shorewood, MN 55331 (the “City”): RECITALS A. Contractor is engaged in the business of buckthorn removal services. B. The City desires to hire Contractor to provide buckthorn removal services in the wooded areas of Freeman Park. C. Contractor represents that it has the professional expertise and capabilities to provide the City with the requested services. D. The City desires to engage Contractor to provide the services described in this Agreement and Contractor is willing to provide such services on the terms and conditions in this Agreement. NOW, THEREFORE, in consideration of the terms and conditions expressed in this Agreement, the City and Contractor agree as follows: AGREEMENT 1. Services. Contractor agrees to provide the City with the services as described in the attached Exhibit A (the “General Instructions for our Cleaning Staff” & “Service Schedule” & “Terms”). Exhibit A shall be incorporated into this Agreement by reference. All Services shall be provided in a manner consistent with the level of care and skill ordinarily exercised by professionals currently providing similar services. st 2. Time for Completion. The Services shall be completed on or before April 1, 2024, provided that the parties may extend the stated deadlines upon mutual written agreement. This Agreement shall remain in force and effect commencing from the effective date and continuing until the completion of the project, unless terminated by the City or amended pursuant to the Agreement. 3. Consideration. The City shall pay Contractor for the Services according to the terms on the attached hereto as Exhibit A. The consideration shall be for both the Services performed by Contractor and any expenses incurred by Contractor in performing the Services. Contractor shall submit statements to the City upon completion of the Services. The City shall pay Contractor within thirty-five (35) days after Contractor’s statements are submitted. th 4. Term. The term of the Agreement shall commence on November 28, 2023 and terminate on st December 31, 2024. 1 225407v1 5. Termination. Notwithstanding any other provision hereof to the contrary, this Agreement may be terminated as follows: A. The parties, by mutual written agreement, may terminate this Agreement at any time; B. Contractor may terminate this Agreement in the event of a breach of the Agreement by the City upon providing thirty (30) days’ written notice to the City; C. The City may terminate this Agreement at any time at its option, for any reason or no reason at all; or D. The City may terminate this Agreement immediately upon Contractor’s failure to have in force any insurance required by this Agreement. In the event of a termination, the City shall pay Contractor for Services performed to the date of termination and for all costs or other expenses incurred prior to the date of termination. 7. Amendments. No amendments may be made to this Agreement except in a writing signed by both parties. 8. Standard of Care. Contractor shall exercise the same degree of care, skill, and diligence in the performance of the services as is ordinarily possessed and exercised by members of the profession under similar circumstances. Contractor shall be liable to the fullest extent permitted under applicable law, without limitation, for any injuries, loss or damages proximately caused by Contractor’s breach of this standard of care. City shall not be responsible for discovering deficiencies in the accuracy of Consultant’s services. Contractor shall be responsible for the accuracy of the work and shall promptly make necessary revisions or corrections resulting from errors and omissions on the part of Contractor without additional compensation. 9. Remedies. In the event of a termination of this Agreement by the City because of a breach by Contractor, the City may complete the Services either by itself or by contract with other persons or entities, or any combination thereof. These remedies provided to the City for breach of this Agreement by Contractor shall not be exclusive. The City shall be entitled to exercise any one or more other legal or equitable remedies available because of Contractor’s breach. 10. Subcontractors. Contractor shall not enter into subcontracts for services provided under this Agreement without the express written consent of the City. Contractor shall comply with Minnesota Statute § 471.425. Contractor must pay subcontractor for all undisputed services provided by Subcontractor within ten days of Contractor’s receipt of payment from City. Contractor must pay interest of 1.5 percent per month or any part of a month to subcontractor on any undisputed amount not paid on time to subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. 11. Records/Inspection. Pursuant to Minnesota Statutes § 16C.05, subd. 5, Contractor agrees that the books, records, documents, and accounting procedures and practices of Contractor, that are relevant to the contract or transaction, are subject to examination by the City and the state auditor or legislative auditor for a minimum of six years. Contractor shall maintain such records for a minimum of six years after final payment. The parties agree that this obligation will survive the completion or termination of this Agreement. 2 225407v1 12. Insurance Requirements. The Contractor, at its expense, shall procure and maintain in force for the duration of this Agreement the following minimum insurance coverages: A. General Liability. The Contractor agrees to maintain commercial general liability insurance in a minimum amount of $1,000,000 per occurrence; $2,000,000 annual aggregate. The policy shall cover liability arising from premises, operations, products completed operations, personal injury, advertising injury, and contractually assumed liability. The City shall be endorsed as additional insured. B. Automobile Liability. If the Contractor operates a motor vehicle in performing the Services under this Agreement, the Contractor shall maintain commercial automobile liability insurance, including owned, hired, and non-owned automobiles, with a minimum liability limit of $1,000,000 combined single limit. C. Workers’ Compensation. The Contractor agrees to provide workers’ compensation insurance for all its employees in accordance with the statutory requirements of the State of Minnesota. The Contractor shall also carry employers liability coverage with minimum limits are as follows:  $500,000 – Bodily Injury by Disease per employee  $500,000 – Bodily Injury by Disease aggregate  $500,000 – Bodily Injury by Accident The Contractor shall, prior to commencing the Services, deliver to the City a Certificate of Insurance as evidence that the above coverages are in full force and effect. The insurance requirements may be met through any combination of primary and umbrella/excess insurance. The Contractor’s policies shall be the primary insurance to any other valid and collectible insurance available to the City with respect to any claim arising out of Contractor’s performance under this Agreement. The Contractor’s policies and Certificate of Insurance shall contain a provision that coverage afforded under the policies shall not be cancelled without at least thirty (30) days advanced written notice to the City. 11. Independent Contractor. Contractor is an independent contractor. Contractor’s duties shall be performed with the understanding that Contractor has special expertise as to the services which Contractor is to perform and is customarily engaged in the independent performance of the same or similar services for others. Contractor shall provide or contract for all required equipment and personnel. Contractor shall control the manner in which the services are performed; however, the nature of the Services and the results to be achieved shall be specified by the City. The parties agree that this is not a joint venture and the parties are not co-partners. Contractor is not an employee or agent of the City and has no authority to make any binding commitments or obligations on behalf of the City except to the extent expressly provided in this Agreement. All services provided by Contractor pursuant to this Agreement shall be provided by Contractor as an independent contractor and not as an employee of the 3 225407v1 City for any purpose, including but not limited to: income tax withholding, workers' compensation, unemployment compensation, FICA taxes, liability for torts and eligibility for employee benefits. 12. Indemnification. To the fullest extent permitted by law, the Contractor agrees to defend, indemnify, and hold harmless the City and its employees, officials, and agents from and against all claims, actions, damages, losses, and expenses, including reasonable attorney fees, arising out of the Contractor’s negligence or the Contractor’s performance or failure to perform its obligations under this Agreement. The Contractor’s indemnification obligation shall apply to the Contractor’s subcontractor(s), or anyone directly or indirectly employed or hired by the Contractor, or anyone for whose acts the Contractor may be liable. The Contractor agrees this indemnity obligation shall survive the completion or termination of this Agreement. 13. Compliance with Laws. Contractor shall exercise due professional care to comply with applicable federal, state and local laws, rules, ordinances and regulations in effect as of the date Contractor agrees to provide the Services. Contractor’s guests, invitees, members, officers, officials, agents, employees, volunteers, representatives, and subcontractors shall abide by the City’s policies prohibiting sexual harassment and tobacco, drug, and alcohol use as defined on the City’s Tobacco, Drug, and Alcohol Policy, as well as all other reasonable work rules, safety rules, or policies, and procedures regulating the conduct of persons on City property, at all times while performing duties pursuant to this Agreement. Contractor agrees and understands that a violation of any of these policies, procedures, or rules constitutes a breach of the Agreement and sufficient grounds for immediate termination of the Agreement by the City. 14. Entire Agreement. This Agreement, any attached exhibits, and any addenda signed by the parties shall constitute the entire agreement between the City and Contractor and supersedes any other written or oral agreements between the City and Contractor. This Agreement may only be modified in a writing signed by the City and Contractor. If there is any conflict between the terms of this Agreement and the referenced or attached items, the terms of this Agreement shall prevail. 15. Third Party Rights. The parties to this Agreement do not intend to confer any rights under this Agreement on any third party. 16. Choice of Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Hennepin County, Minnesota, and all parties to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. 17. Conflict of Interest. Contractor shall use reasonable care to avoid conflicts of interest and appearances of impropriety in representation of the City. In the event of a conflict of interest, Contractor shall advise the City and, either secure a waiver of the conflict, or advise the City that it will be unable to provide the requested Services. 18. Agreement Not Exclusive. The City retains the right to hire other professional Contractor service providers for this or other matters, in the City’s sole discretion. 19. Data Practices Act Compliance. Any and all data provided to Contractor, received from Contractor, created, collected, received, stored, used, maintained, or disseminated by Contractor pursuant to this Agreement shall be administered in accordance with, and is subject to the requirements of the Minnesota 4 225407v1 Government Data Practices Act, Minnesota Statutes, Chapter 13. Contractor agrees to notify the City within three business days if it receives a data request from a third party. This paragraph does not create a duty on the part of Contractor to provide access to public data to the public if the public data are available from the City, except as required by the terms of this Agreement. These obligations shall survive the termination or completion of this Agreement. 20. No Discrimination. Contractor agrees not to discriminate in providing products and services under this Agreement on the basis of race, color, sex, creed, national origin, disability, age, sexual orientation, status with regard to public assistance, or religion. Violation of any part of this provision may lead to immediate termination of this Agreement. Contractor agrees to comply with the Americans with Disabilities Act as amended (“ADA”), section 504 of the Rehabilitation Act of 1973, and the Minnesota Human Rights Act, Minnesota Statutes, Chapter 363A. Contractor agrees to hold harmless and indemnify the City from costs, including but not limited to damages, attorneys’ fees and staff time, in any action or proceeding brought alleging a violation of these laws by Contractor or its guests, invitees, members, officers, officials, agents, employees, volunteers, representatives and subcontractors. Upon request, Contractor shall provide accommodation to allow individuals with disabilities to participate in all Services under this Agreement. Contractor agrees to utilize its own auxiliary aid or service in order to comply with ADA requirements for effective communication with individuals with disabilities. 21. Authorized Agents. The City’s authorized agent for purposes of administration of this contract is the City Administrator of the City, or designee. Contractor’s authorized agent for purposes of administration of this contract is Benton Sellwood, or designee who shall perform or supervise the performance of all Services. 22. Notices. Any notices permitted or required by this Agreement shall be deemed given when personally delivered or upon deposit in the United States mail, postage fully prepaid, certified, return receipt requested, addressed to: Contractor The City Prairie Restorations, Inc. City Administrator 601A Lewis Avenue North 5755 Country Club Road Watertown, MN 55388 Shorewood, MN 55331 or such other contact information as either party may provide to the other by notice given in accordance with this provision. 26. Waiver. No waiver of any provision or of any breach of this Agreement shall constitute a waiver of any other provisions or any other or further breach, and no such waiver shall be effective unless made in writing and signed by an authorized representative of the party to be charged with such a waiver. 27. Headings. The headings contained in this Agreement have been inserted for convenience of reference only and shall in no way define, limit or affect the scope and intent of this Agreement. 28. Severability. In the event that any provision of this Agreement shall be illegal or otherwise unenforceable, such provision shall be severed, and the balance of the Agreement shall continue in full force and effect. 5 225407v1 29. Signatory. Each person executing this Agreement (“Signatory”) represents and warrants that they are duly authorized to sign on behalf of their respective organization. In the event Contractor did not authorize the Signatory to sign on its behalf, the Signatory agrees to assume responsibility for the duties and liability of Contractor, described in this Agreement, personally. 30. Counterparts and Electronic Signatures. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. This Agreement may be transmitted by electronic mail in portable document format (“pdf”) and signatures appearing on electronic mail instruments shall be treated as original signatures. 31. Recitals. The City and Contractor agree that the Recitals are true and correct and are fully incorporated into this Agreement. \[Remainder of page left blank intentionally. Signature page follows.\] 6 225407v1 IN WITNESS WHEREOF, the City and Contractor have caused this Professional Services Agreement to be executed by their duly authorized representatives in duplicate on the respective dates indicated below. Prairie Restorations, Inc. City of Shorewood: By: _________________________________ By: _________________________________ Jennifer Labadie, Mayor Name: __ ______________ Title: ______________ ___________ By: _________________________________ Sandie Thone, City Clerk 7 225407v1 EXHIBIT A SCOPE OF SERVICES & FEE SCHEDULE 225407v1 Item 6A City Council Meeting Item Title/Subject: Presentation by Commissioner Eggenberger Meeting Date: November 27, 2023 Prepared by: Marie Darling, Planning Director Background Commissioner Eggenberger will be present to give the City Council a summary of the discussion of items from the November 21, 2023 Planning Commission meeting. City Council Meeting Item Item Title/Subject: Award Quote for SE Well Rehabilitation, City Project 23-07 7A Meeting Date: Monday November 27, 2023 Prepared by: Andrew Budde – City Engineer Reviewed by: Matt Morreim – Public Works Director Attachments: Plans and Resolution Background: Staff have identified in the Capital Improvement Plan the need to replace the existing pneumatic valves within the SE Well Building to maintain clean and efficient water distribution within the east system. Five (5) quotes were submitted for the Southeast Well Rehab project on November 14, 2023. The quotes ranged from $46,430.00 to $80,124.00. The Engineer’s Estimate for this project was $104,000.00. The low bid price is from MN Mechanic Solutions. Contractor: Quote Amount MN Mechanical Solutions $46,430.00 Magney Construction $70,530.00 Gridor Construction $75,500.00 Shank Constructors $79,800.00 Rice Lake Construction Group $80,124.00 Staff reviewed all the quotes received to ensure they are accurate and indicate the quoting process was competitive. Work for these repairs is to be completed by March 29, 2024. Financial or Budget Considerations: Utilizing the low quote and accounting for engineering and administrative costs the total project cost is anticipated to be $54,500. The city has budgeted $67,200 for the SE Well Rehabilitation in the Capital Improvements Plan. Action Requested: Staff recommends award of the SE Well Rehabilitation, in the amount of $46,430, to the low quote, MN Mechanical Solutions. CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 23-119 A RESOLUTION AWARDING THE LOW QUOTE FOR THE SE WELL REHABILITION PROJECT; CITY PROJECT NO: 23-07 WHEREAS, quotes for the SE Well Rehabilitation Project were received on November 14, 2023 opened and tabulated according to law, with the following quotes received: MN Mechanical Solutions $46,430.00 Magney Construction $70,530.00 Gridor Construction $75,500.00 Shank Constructors $79,800.00 Rice Lake Construction Group $80,124.00 ; and WHEREAS, City staff recommends award of the low quote for the SE Well Rehabilitation Project ; and WHEREAS, MN Mechanical Solutions is the lowest responsible bidder; and WHEREAS, MN Mechanical Solutions. is a responsible and responsive contractor, that has completed projects of similar size and scope successfully. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA AS FOLLOWS: 1. Hereby authorized and directed to enter into a contract with MN Mechanical Solutions based on the lowest quote amount of $46,430.00 in the name of the City of Shorewood for the SE Well Rehabilitation Project according to the plans and specifications on file in the office of the City Clerk. Adopted by the City Council of Shorewood, Minnesota this 27th day of November 2023. __________________________ Jennifer Labadie, Mayor Attest: ___________________________ Sandie Thone, City Clerk Item 8A City Council Meeting Item Title/Subject: Hazardous Building Declaration for 5815 Club Lane Meeting Date: 11/27/2023 Prepared by: Jared Shepherd Reviewed by: Marc Nevinski Attachments: City Attorney Memorandum Order for Removal of Hazardous Building Exhibits A-E Resolution Background See attached memorandum from the City Attorney. Financial Considerations The City may be required to remedy the hazardous building at its expense and assess the costs back to the property as taxes. In October 2022, the City obtained estimates of the cost to remove the building of about $50,000. Updated estimates would be required to determine the current cost. Action Requested Motion to approve the attached resolution ordering the repair or removal of hazardous conditions. A majority vote by the Councilmembers in attendance is required. M E M O R A N D U M T O: S HOREWOOD C ITY C OUNCIL F ROM: J ACK B ROOKSBANK J ARED S HEPHERD D ATE: N OVEMBER 7, 2023 R E: H AZARDOUS B UILDING L OCATED AT 5815 C LUB L N. This matter is now before the City Council to determine whether to declare that the Subject Property contains hazardous conditions. The following documents have been submitted for Council review: 1) A Proposed Resolution Ordering Repair and Removal of Hazardous Conditions 2) Exhibit A: A report detailing the ownership of the Subject Property 3) Exhibit B: Photographs of the hazardous conditions at the Subject Property. 4) Exhibit C: Inspection notes and reports about the Subject Property 5) Exhibit D: Building Permit Application and related Correspondence 6) Exhibit E: An Order for Repair and Removal of Hazardous Conditions Summary of Code Violations at 5815 Club Lane. The Subject Property initially contained a single family home. Beginning around 2007, the owners began working on a major addition to the property. In 2007 the City issued a permit to construct some additional footings. The City discovered illegal construction continuing to occur at the property for years after the initial permit issued. In 2015, the City issued a building permit to construct a building envelope to enclose the addition. That building permit expired on June 16, 2015. In 2017, one of the occupants of the Subject Property was injured in a partial structural collapse. In response to reports of this injury, the City conducted additional inspections. In February 2018, City staff visited the property. The City discovered that the owners had constructed an additional porch/deck, which was not allowed by the building permit. After further negotiations with the property owner, in March 2019 the City had the property inspected by both MNSPECT and Oswell Engineering. Both the inspector and the engineer concluded that the addition violated the building permits issued and contained numerous code violations and safety hazards due to substandard design and construction. The owners were also using areas of unfinished construction as personal living and storage areas. In response, the City passed Resolution 19-067 on July 8, 2019, declaring the property a hazardous building under Minn. Stat. § 463.15 and ordering the removal of the addition. After several additional months of litigation, the City and the property owners entered into a settlement agreement on January 19, 2021. Under the terms of that agreement, the owners would remove the addition or sell the property to be demolished and reconstructed by May 1, 2021. The owners further agreed not to occupy the addition. The property owners failed to perform the required actions under the 2021 settlement agreement. The addition was not removed, nor was the property sold. The owners began occupying the 228012v2 addition and performed additional construction on the addition without further building permits. However, upon our review of the settlement agreement, it became apparent that the settlement agreement did not provide sufficient protection to the City to undertake the remediation work itself. The City therefore entered into further negotiations with the property owners. In July 2022, the City had engineers from Bolton & Menk inspect the property again. Bolton & Menk then produced a report detailing their findings in September 2022. That report identified significant ongoing concerns with the construction of the addition. The engineers concluded that the subject property remained in unsafe condition, should not be occupied, and that the addition should be removed. The engineers also concluded that it may be difficult to remove the Addition without demolishing the original structure as well, but this is not conclusive and the engineers determined that further inspection of the original structure would be necessary once the addition was removed to see if it had been damaged by the additional loading. On June 14, 2023, the City sent the property owners a “Final Notice to Correct Code Violation.” This notice contained specific directions for what the property owners would have to do to bring the structure into compliance, including detailed engineering and structural tests on the structure as completed. On July 21, 2023, the property owners submitted a building permit application to attempt to show the structure was code compliant. However, the City determined that this application was deficient and incomplete. The July 21, 2023 permit application showed that, in violation of prior stop work orders, the property owners had continued to work on the property without a valid building permit. The owners also continued to occupy and use the addition. The application also did not address structural concerns. The application contained differing dimensions between the plans and engineering report. The application requested the wrong kind of permit. The application, and supporting materials, also failed to identify how the property owners would address structural deficiencies identified by the City’s prior reports, including improperly constructed foundations, beams, and windows. The application also failed to account for the removal of the original structure’s roof—which is now inside the structure of the addition—or the re-routing of vents from the original structure that now discharge into the interior of the addition. The application also lacked necessary details, such as plan sheets, foundation plans, cross section, etc. Through August 2023, the City continued to work with the property owners and their hired engineer. However, the property owners did not correct the above deficiencies, submit an updated permit application, or demonstrate that they would correct the structural issues at the subject property. The owners were notified that if they did not submit adequate engineering documentation and repair plans to ensure the structural stability of the property, the city would seek to again declare the structure as a hazardous building. Due to the longstanding structural defects at the subject property, the failure of the owners to address these issues, the continued construction work on the property without the required permits, and the fact that there has already been one injury at the subject property from a partial 228012v2 structural collapse, we recommend that the council adopt the resolution declaring this a hazardous building and ordering its removal. We also learned that the property owners are currently going through Chapter 13 bankruptcy. The owners were not paying their mortgage, and the mortgagee (U.S. Bank) initiated foreclosure proceedings on the Subject Property. Shortly before the foreclosure sale, the property owners initiated bankruptcy proceedings. Chapter 13 bankruptcy is a consolidation and restructuring of debts through a court-appointed receiver. The receiver will work with creditors to enact a payment plan, and the debtors (property owners) will pay a single monthly payment to the receiver to cover outstanding debts. Chapter 13 bankruptcy does not affect property tax debts incurred after the initiation of bankruptcy proceedings. If the city were to have to act to abate this hazardous property, it would seek to recoup the cost in the form of a special assessment, certified as part of the annual tax bill. Further, the assessment accrues to the property, rather than to the property owner individually. There should therefore be no impact to the City’s proceeding because of the ongoing bankruptcy proceeding. Overview of Hazardous Building Declaration Process Minnesota law permits the City Council to order the repair and abatement of hazardous conditions that exist within its city limits. Hazardous conditions include health, safety, and fire hazards that exist because of inadequate maintenance, dilapidation, physical damage, unsanitary condition, or abandonment. Minn. Stat. § 463.15, subd. 3. A condition is a hazard if it affects public safety or health. If the City Council determines that the Subject Property contains hazardous conditions, it may pass the Resolution and direct the City Attorney to sign and serve the attached Order. Subsequently, the Order for Repair and Removal of Hazardous Conditions (Exhibit B) will be served upon the owners and any lienholders of the property. This is through personal service like an ordinary civil lawsuit. The owner/occupant will then have thirty (30) days to remedy the hazardous conditions. If they fail to comply within that time period, we will seek permission from District Court to allow the City to abate the hazardous conditions. The City can seek Court approval to assess the costs of the abatement against the property, payable either in a single lump sum or in not more than five yearly installments at eight percent interest. The owner may also dispute the hazardous building order by filing an answer with the court. In this case, the matter will be set for trial. This is an expedited process, as hazardous building matters have priority. However, this may still be somewhat lengthy and would likely take at least six months to resolve. The City would still be entitled to assess its costs if it prevails after the contested hearing. 228012v2 CITY OF SHOREWOOD Order of the City Council of Shorewood, Hennepin County, Minnesota concerning Hazardous building on the property Located at: 5815 Club Lane, City of Shorewood, County of Hennepin, State of Minnesota 55331 Legally described as: Lot 45, Auditor's Subdivision No. 133, Hennepin County, Minnesota. Parcel Identification Number (PID): 33-117-23-42-0001 T O: Jeremy Riedel and Joshua Riedel, Owners in Fee Simple of the Subject Property; U.S. Bank, N.A., C/O Registered Agents, Inc., 202 N. Cedar Ave. Ste. 1, Owatonna, MN 55060. Pursuant to Minnesota Statutes § 463.15, et seq., the City Council of the City of Shorewood, having duly considered the matter, found the above-described property to be hazardous through the passage of Resolution 2023-067. Shorewood City staff have observed the conditions present at 5815 Club Lane, City of Shorewood, County of Hennepin, State of Minnesota 55331 \[hereinafter: Subject Property\]. Their observations revealed that the Subject Property constitutes a hazardous property within the meaning of Minnesota Chapter 463. Specifically, the Subject Property contains an Addition that has been improperly constructed in violation of City Code and the 2012 International Property Maintenance Code (IPMC) in such a way as to constitute a hazard to public safety or health within the meaning of Minn. Stat. § 463.15, subd. 3. Specifically, the City Council finds that the following hazardous conditions exist at the Subject Property: 1. The Addition contains nonstandard and questionable building techniques that require engineering controls to ensure compliance with the building code and IPMC. The IPMC, § 304.4, requires that all structural members be capable of safely supporting the imposed loads. IPMC § 304.1.1.2 requires adequate anchoring of 228010v5 structures to the foundation. IPMC § 304.1.1.6 requires proper foundation systems. IPMC § 305.1.1.2 requires anchoring of interior structural elements. IPMC § 305.1.1.4 prohibits structural members that cannot support the necessary loads. IPMC 305.1.1.5 requires that all stairs have proper guards and handrails. The roof trusses of the Addition have rusted hangers and nails, possible improper use of hangers, and uncovered truss eaves, raising questions about their ability to sustain the required loads. The Addition was also constructed in a way as to increase loading on the original roof and supporting structure. The necessary analysis to determine whether the structure can safely support the increased loads has not been completed. The structural members are not attached using standard construction practices, including improper use of bracket connections and improperly sized attachments for posts to foundation elements. There are nonstandard elements, including cantilevers and framing around window and door openings, that are not adequately supported by engineering analysis to ensure safety. The basement and garage of the Addition lack proper slabs and contain uncompacted soils. The basement and foundations of the Addition contain cripple walls that require special engineering or construction methods, but there is no record of either to ensure the structural stability of the walls. The Addition contains stairs that lack guards or handrails. These conditions constitute hazards to the public safety and health and violations of the IPMC. 2. IPMC § 304.1.1.12 requires that all exterior decks contain proper guards and handrails and are properly anchored with connections capable of supporting the necessary loads. The Addition lacks guards or handrails. The Addition contains a deck/porch that is supported by a beam resting freely on the previously existing porch’s step with no means of attachment. These conditions constitute a hazard to the public safety or health and violations of the IPMC. 3. IPMC § 304.4 requires that all structural members be maintained free from deterioration. IPMC § 304.5–.6 require that exterior walls and roofs provide adequate protection from the elements. The Addition contains potential moisture damage throughout. This can be observed as swelling, sagging, and staining on wood members, and rust and corrosion on metal hangers and components, throughout the Addition. The roof of the Addition contains unblocked truss eaves that do not provide adequate protection from the elements. These conditions constitute a hazard to the public safety or health and violations of the IPMC. Pursuant to the foregoing, in accordance with Minn. Stat. § 463.17, unless the hazardous conditions listed above are removed within thirty (30) days of the date of this Order, the City shall cause the hazardous conditions on the Subject Property to be removed. The removal of the above-reference hazardous conditions requires the demolition of the Addition, the removal of added foundation, deck, and footings, and backfilling to prevent any dangerous exposed 228010v5 excavation. If you fail to remedy the hazardous conditions, the City will seek permission from the District Court for the City to do so. The City will move the District Court for summary enforcement of this Order pursuant to Minn. Stat. § 463.19 unless you remedy the situation within said thirty (30) day period or unless an answer is filed within twenty (20) days of service of this Order upon you pursuant to Minn. Stat. § 463.18. Any answer filed must specifically deny sufficient facts presented in this Order to raise a material question as to the presence or absence of hazardous conditions. Upon enforcement of the Order by the City, all costs expended by the City will be assessed against the real property and collected as other taxes as provided in Minn. Stat. § 463.21. If you fail to remedy the hazardous conditions, you must remove all personal property or fixtures within thirty (30) days of service of this Order upon you pursuant to Minn. Stat. § 463.24. If the personal property or fixtures are not removed within that by time, then the City may sell the personal property or fixtures at public auction as provided in Minn. Stat. § 463.21 or the City may destroy the same. Moreover, you are advised that if the City of Shorewood is compelled to take any action to abate these hazardous conditions, all necessary costs expended by the City will be assessed against the real estate and collected as other taxes as provided in Minn. Stat. § 463.21. 228010v5 CAMPBELL KNUTSON Professional Association Date: _____________________ By: ___________________________________ Jared D. Shepherd (#0389521) John S. (Jack) Brooksbank (#0402593) Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 Direct Dial: (651) 234-6218 jshepherd@ck-law.com jbrooksbank@ck-law.com Attorneys for City of Shorewood 228010v5 CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 23-120 A RESOLUTION ORDERING REPAIR OR REMOVAL OF HAZARDOUS CONDITIONS WHEREAS, the City staff of the City of Shorewood have attempted without success to have the occupant of certain property remedy the hazardous and unsafe conditions of the property at 5815 Club Ln, City of Shorewood, County of Hennepin, State of Minnesota 55331, with a legal description of: Lot 45, Auditor's Subdivision No. 133, Hennepin County, Minnesota, and a Parcel Identification Number (PID) of: 33-117-23-42-0001 (“Subject Property”); and WHEREAS, the City Council has determined that the building on the property constitutes a hazardous property due to inadequate maintenance that constitutes a fire and safety hazard to public safety or health within the meaning of Minn. Stat. § 463.15, subd. 3; and WHEREAS, the City Council has fully considered all evidence relating to the code violations at the Subject Property. Said evidence is attached hereto as exhibits. The exhibits include the following documents: a. Exhibit A: Ownership and Encumbrance report for Subject Property b. Exhibit B: Photographs of the Subject Property taken by building inspector (MNSPECT) c. Exhibit C: Inspection reports from the Subject Property d. Exhibit D: Building Permit Application and Related Correspondence NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA, MAKES THE FOLLOWING: FINDINGS 1. The above recitals are incorporated as if fully set forth herein. 2. Jeremy Riedel and Joshua Riedel own the Subject Property. Joshua Riedel occupies the property. US Bank, N.A., a Minnesota corporation, holds a recorded interest in the property from a mortgage instrument dated October 18, 2006, recorded as Document No. 8891203 on November 13, 2006, and transferred on January 27, 2023, recorded as Document No. 11182440 on February 17, 2023. There are currently no other lienholders of record of the Subject Property. 3. The Subject Property contains a single-family home. The Owners constructed an addition, deck, and other improvements (collectively, the “Addition”) adjacent to, over, and 227990v5 1 supported by the original home. The Addition was constructed without proper building permits or engineering designs, and in violation of a City stop work order. 4. The Addition contains nonstandard and questionable building techniques that require engineering controls to ensure compliance with the building code and IPMC. The IPMC, § 304.4, requires that all structural members be capable of safely supporting the imposed loads. IPMC § 304.1.1.2 requires adequate anchoring of structures to the foundation. IPMC § 304.1.1.6 requires proper foundation systems. IPMC § 305.1.1.2 requires anchoring of interior structural elements. IPMC § 305.1.1.4 prohibits structural members that cannot support the necessary loads. IPMC 305.1.1.5 requires that all stairs have proper guards and handrails. The roof trusses of the Addition have rusted hangers and nails, possible improper use of hangers, and uncovered truss eaves, raising questions about their ability to sustain the required loads. The Addition was also constructed in a way as to increase loading on the original roof and supporting structure. The necessary analysis to determine whether the structure can safely support this increased loads has not been completed. The structural members are not attached using standard construction practices, including improper use of bracket connections and improperly sized attachments for posts to foundation elements. There are nonstandard elements, including cantilevers and framing around window and door openings, that are not adequately supported by engineering analysis to ensure safety. The basement and garage of the Addition lack proper slabs and contain uncompacted soils. The basement and foundations of the Addition contain cripple walls that require special engineering or construction methods, but there is no record of either to ensure the structural stability of the walls. The Addition contains stairs that lack guards or handrails. These conditions constitute hazards to the public safety and health and violations of the IPMC. 5. IPMC § 304.1.1.12 requires that all exterior decks contain proper guards and handrails and are properly anchored with connections capable of supporting the necessary loads. The Addition lacks guards or handrails. The Addition contains a deck/porch that is supported by a beam resting freely on the previously existing porch’s step with no means of attachment. These conditions constitute a hazard to the public safety or health and violations of the IPMC. 6. IPMC § 304.4 requires that all structural members be maintained free from deterioration. IPMC § 304.5–.6 require that exterior walls and roofs provide adequate protection from the elements. The Addition contains potential moisture damage throughout. This can be observed as swelling, sagging, and staining on wood members, and rust and corrosion on metal hangers and components, throughout the Addition. The roof of the Addition contains unblocked truss eaves that do not provide adequate protection from the elements. These conditions constitute a hazard to the public safety or health and violations of the IPMC. DECISION NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA, based upon the information received and the above Findings, the following: 1. The Subject Property contains violations of City Code and the 2012 International 227990v5 2 Property Maintenance Code (IPMC). See also City Code § 1004.04, subd. 1 (adopting the IPMC by reference within the City). 2. The Subject Property, which is located in Shorewood, Hennepin County, constitutes a health and safety hazard within the meaning of Minnesota Chapter 463. Specifically, the Subject Property contains conditions and improper construction that constitute a fire hazard and a hazard to public safety or health. Minn. Stat. § 463.15, subd. 3. 3. Consistent with the professional opinion of the City’s engineering consultants, the above conditions cannot be practically remedied, and that the Addition must be removed and the original house reinspected to insure continued safety and compliance with building code and the IPMC. 4. Pursuant to Minnesota Statutes § 463.16 et seq., the City hereby adopts and approves the Order for Repair and Removal of Hazardous Conditions attached hereto as Exhibit E. 5. The City’s legal counsel, Campbell Knutson, P.A., 860 Blue Gentian Road, Suite 290, Eagan, Minnesota 55121, is directed to serve the Order for Repair and Removal of Hazardous Conditions and to proceed with enforcement in accordance with Minn. Stat. § 463.15 et seq. th ADOPTED by the City Council of Shorewood, Minnesota this 27 day of November, 2023, by the City Council of the City of Shorewood, Minnesota. CITY OF SHOREWOOD __________________________ Jennifer Labadie, Mayor Attest: ___________________________ Sandie Thone, City Clerk 227990v5 3 Item 8B City Council Meeting Item Title/Subject: Property and Casualty Insurance Renewal Premium Meeting Date: November 13, 2023 Prepared by: Marc Nevinski, City Administrator Reviewed by: Joe Ridgon, Finance Director Attachments: Renewal Premium Summary Background The City’s property and casualty insurance policy for 2024 with the League of Minnesota Cities Insurance Trust is updated annually. The renewal summary is attached. Coverages remain the same from 2023, although there are options to increase certain coverages which are discussed below. The premium increased from $90,113 for 2023 to $112,656 for 2024.  Property premium is up due to: o Annual inflation o 5% rate increase  Mobile Property and Equipment Breakdown premium is up as this is tied to the manual premium for property.  Municipal Liability is up due to: o The experience mod increasing from 1.054 to 1.321 o 5% rate increase o Large increase exposures  Auto Liability/Auto Physical Damage premium is up due to: o 5% rate increase  No Fault Sewer Backup premium is up due to: o Rate Increases  Excess Liability is up to due to changes in exposures plus a 15% rate increase. Page 2 of the renewal summary includes quotes for $2M Excess Liability and $500K First Party Cyber coverage. The increase of Excess Liability coverage from $1M to $2M would result in an increase in premium from $13,710 to $19,788. Increasing the First Party Cyber coverage from $250,000 to $500,000 would result in an increase of premium from $2,912 to $4,368. These can be added to the City’s coverage at any time. The Council should decide if it wishes to increase one or both of these coverages. Financial Considerations The 2024 budget includes $125,000 for insurance coverage. If the Council wishes to maintain the current coverage amounts, the premium would be $112,656. Budget exists should higher coverage amounts be desired for Excess Liability and First Party Cyber.  If only Excess Liability coverage is increased to $2M, the premium would be $120,059.  If only First Party Cyber coverage is increased to $500,000, the premium would be $114,112.  If Excess Liability coverage is increased to $2M and First Party Cyber coverage is increased to $500,000, the premium would $121,515. Action Requested Motion to approve the property and casualty renewal premium of $_________, which includes First Party Cyber coverage of $________ and Excess Liability coverage of $______________, and authorize the City Administrator to execute any documents necessary to implement the coverage. A majority vote by the Council is required. Item 8C City Council Meeting Item Title/Subject: Premium Option Workers Compensation Insurance Meeting Date: November 27, 2023 Prepared by: Marc Nevinski, City Administrator Reviewed by: Joe Rigdon, Finance Director Attachments: Notice of Premium Options Background The City is required to carry workers' compensation insurance and does so through the League of Minnesota Cities Insurance Trust. By law cities must pay workers' compensation benefits to their employees for injuries from accidents in the course of city employment. The number of employees in higher injury prone positions typically have higher premium amounts than employees in lower injury prone positions. The City’s experience modification rate is good which helps to lower the premium amount. The City may select one of three premium options outlined on page 2 of the attached quote. 1) The Regular Premium Option is a guaranteed cost option. The rate is based on the City’s payroll and experience modification over the past three years. Historically, this has been the option the City has selected as it is predictable for and simple to administer. 2) The Deductible Premium Option lowers the premium amount but increases the risk of expense to the City if an occurrence(s) happen. The City will be billed for medical losses up to the per-occurrence deductible. If selecting this option, it will be important to know how any obligations will be funded. 3) The Retrospective Option is an alternative method of determining the premium. Good experience can result in savings, but injuries or a single event can increase the premium. The final premium is the minimum premium plus incurred losses, and adjustments are made based on experience, first at six months and then annually. This is a much more complex option to administer and, like option 2, must be planned for and could be more expensive if events occur. Staff recommends selecting the Regular Premium option due to the size, staffing and resources available in the City of Shorewood. Financial Considerations Workers compensation premiums are factored into the 2024 budget and billed to each department. Action Requested Motion to approve selection of the Regular Premium option and authorize the City Administrator to execute the Notice of Premium Options. A majority vote by the Council is required. Item 8D City Council Meeting Item Title/Subject: Participation in DuPont and 3M PFAS Settlements Meeting Date: November 27, 2023 Prepared by: Marc Nevinski, City Administrator Reviewed by: Jared Shepherd, City Attorney Matt Morriem, Public Works Director Attachments: MDH Memo-Shorewood Retainer Agreement Background The City of Shorewood has received notice of two class action settlements of various claims against chemical companies (DuPont and 3M) for the proliferation of PFAS in public water systems. The settlements arise out of multi-party, multi-district litigation venued in South Carolina. The settling defendants have agreed to pay amounts subject to the final settlement approval of the Court. If an eligible water system operator (“system”) does not opt out by the deadlines established in the settlements (Dec 4 for 3M and Dec 11 for DuPont) it will automatically be included in the settlement and will be precluded from bringing its own lawsuit against DuPont or 3M for PFAS damages. Systems with detected PFAS in at least one water source (defined as a Phase One claimant in the settlement documents) and that do not opt out will have to submit claim forms with testing data to receive a share of the settlement funds. For entities that did not opt out of the settlement, they will have only 60 days after the final approval of the settlement to submit their claims form otherwise they will not receive payment. Phase Two claimants are systems that have not detected PFAS but are required to test by the EPA or that serve more than 3300 people. A public water system operator that opts out of the class settlement will not be eligible to receive any payment from the settlement, although it would not be precluded from bringing its own lawsuit against DuPont or 3M for damages caused by PFAS. Systems that do not wish to participate in the settlement may opt out by completing a notice of intention to opt-out. Under the timelines, systems will not be able to see how much money that are entitled to under the class settlement until after decide whether to participate. Systems who have already detected PFAS in at least one source, and who don’t opt out of the settlements, must submit a claim form containing data about their PFAS impacts after approval of the settlements by the Court. A claims administrator will make the final determination of each water system’s share of the settlement funds. More information about the settlements can be found at www.PFASWaterSettlement.com and more information about PFAS in general can be found on the Minnesota Department of Health website. Shorewood is a Phase One eligible claimant based on sampling of one well as part of the Statewide PFAS Monitoring Project. The sampling found a detectable amount of a PFAS known as PFBA, which was measured at 0.0067 ug/L (parts per billion), well below the MDH guidance of 7.0 ug/L. (Note that the MDH Dashboard expresses PFBAs in parts per trillion or ng/L.) Per the information about PFBAs from the Minnesota Department of Health, a person drinking water at or below the guidance level would have little to no risk of health effects. There are multiple defendants and types of claims in the multi-district litigation. Lockridge Grindel Nauen and Napoli Shkolnik is serving as local counsel in this litigation and would be able to file claims on behalf of the City of Shorewood on a 25% contingency basis. Should additional similar settlements arise and could a Financial Considerations The City appears eligible for a settlement award, but the exact amount is currently unknow. The award amount will be based on the concentration of PFAS identified in a water system and the system’s flow. If the City chooses to enter into an agreement with Lockridge Grindel Nauen, it would be charged 25% of the settlement award. Action Requested Motion directing the City to remain in the settlement class, directing the submission of the settlement claim forms, and authorizing the Mayor to sign the attached Retainer Agreement with Lockridge Grindel Nauen P.L.L.P. and Napoli Shkolnik. A majority vote by the Council is required. CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 23-122 A RESOLUTION APPROVING EARNED SICK AND SAFE TIME POLICY AND PERSONNEL POLICY/EMPLOYEE HANDBOOK UPDATES WHEREAS, it has been a busy legislative season with many changes in public employee personnel policies; and WHEREAS, the city provides an employee personnel policy/employee handbook to all city employees; and WHEREAS, the city is required to comply with new laws as it relates to city employees; and WHEREAS, the following changes and updates to the Shorewood Personnel Policy are being proposed relating to the new Earned Sick and Safe Time (ESST) law taking effect January 1, 2024:  1.04 Scope of the Handbook – add casual part-time employee section;  1.05 Employee Classification and Hours of Work – add sick leave pay to seasonal and temporary employee classifications and add casual classification;  8.03 Sick Leave – add Earned Sick and Safe Time (ESST) to title and seasonal, temporary and casual employees, ESST leave accrual, notice of leave section and documentation to the section; and  8.04 Replace Sick Spouse/Partner/Parent Child Leave and Safety Leave with new ESST leave eligible uses, definition of family and retaliation section. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood that the City of Shorewood Personnel Policy updates are approved. ADOPTED by the City Council of the City of Shorewood this 27th day of November 2023. _______________________________ ATTEST: Jennifer Labadie, Mayor ____________________________________ Sandie Thone, City Clerk