01-08-24 CC Reg Mtg Agenda Packet
CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS
MONDAY, JANUARY 8, 2024 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 Regular Meeting Minutes of December 11, 2023 Minutes
B. Approval of the Verified Claims List Claims List
C. 2024 Mileage Reimbursement Rate City Clerk/HR Director Memo
D. City Council Out of State Travel Policy Approval City Clerk/HR Director Memo
E. Master Fee Schedule Updates – SCEC Fees City Clerk/HR Director Memo
Resolution 24-001
F. Approve Tobacco License – Shorewood Smokes Plus Deputy Clerk Memo
Resolution 24-002
CITY COUNCIL REGULAR MEETING AGENDA
Page 2
G. Approve Independent Contractor Renewal – Park/Rec Director Memo
Erica Heinrichs, Tai Chi
H. Accept Resignation/Authorize Recruitment for
Park/Recreation Director position City Clerk/HR Director Memo
I. Approve PW Supervisor Reclassification City Clerk/HR Director Memo
J. Accept Final Improvements for 2022 Mill & Overlay, City Engineer Memo
City Project 21-11 Resolution 24-003
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
5. PARKS
6. PLANNING
7. ENGINEERING/PUBLIC WORKS
8. GENERAL/NEW BUSINESS
A. 2024 Annual Appointments and Designations City Clerk/HR Director Memo
Resolution 24-004
9. STAFF AND COUNCIL REPORTS AND DISCUSSION
A. Staff
1. 2024 Elections Update City Clerk/HR Director Memo
2. Response to Truth in Taxation Questions City Administrator Memo
B. Mayor and City Council
10. ADJOURN
2A
CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
CITY COUNCIL REGULAR MEETING COUNCIL CHAMBERS
MONDAY, DECEMBER 11, 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, and Sanschagrin; 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; City Engineer Budde, and Communications
Coordinator Wilson (via Zoom)
Absent: Councilmember Zerby
Mayor Labadie apologized for a statement she had directed to Councilmember Sanschagrin at
the November 27, 2023 meeting.
C. Review Agenda
Maddy moved, Sanschagrin seconded, approving the agenda as presented.
Motion passed.
2. CONSENT AGENDA
Mayor Labadie reviewed the items on the Consent Agenda.
Callies moved, Maddy seconded, Approving the Motions Contained on the Consent
Agenda and Adopting the Resolutions Therein.
A. City Council Work Session Minutes of November 27, 2023
B. City Council Regular Meeting Minutes of November 27, 2023
C. Approval of the Verified Claims List
D. Approve Permanent Appointment for Administrative Assistant and Approve
Job Status from PT to FT
E. Authorize Dispensing of Liquor at Arctic Fever Even, Adopting RESOLUTION
NO. 23-123, “A Resolution Authorizing the Dispensing of Intoxicating Liquor
by Excelsior Brewing at the Arctic Fever Event.”
F. Approve 2024 City Council Regular Meeting Schedule
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
DECEMBER 11, 2023
Page 2 of 11
G. Adopt Winter Operation Policy, Adopting RESOLUTION NO. 23-124, “A
Resolution for Adopting Winter Operation Policy.”
H. Approve Seasonal Warming House Attendance Hires
I. Approve Quote for SCEC Audio Visual Equipment
Motion passed.
3. MATTERS FROM THE FLOOR
No one addressed the Council.
4. REPORTS AND PRESENTATIONS
A. Truth in Taxation Public Meeting
Finance Director Rigdon gave an overview of the General Fund budget and property tax levy and
explained the requirement for a Truth in Taxation public meeting.
Councilmember Sanschagrin asked what aspects of the budget Finance Director Rigdon was
most concerned about.
Finance Director Rigdon stated that there have been a lot of watermain breaks in the City, but
noted that was not something that can be predicted.
Councilmember Sanschagrin asked if the City had the freedom to revisit the fees within the fee
schedule as part of the City’s budget.
City Administrator Nevinski stated that at a previous Work Session, the Council had talked about
the Enterprise Fund rates. He explained that the City has been on a pre-determined percentage
increment increase which is also what is proposed tonight. He stated that if the Council would like
to adjust those, they would be free to do that with the Enterprise Funds as they discuss fees later
on the agenda.
Mayor Labadie explained that this item was open for public comment and noted that the three-
minute rule in place for Matters from the Floor would not apply for this portion of the meeting.
George Greenfield, 24715 Yellowstone Trail, asked about the properties in the City that are in TIF
districts. He asked how much revenue the City lost in 2023 because of The Pillars being in TIF
rather than having a regular status and explained that according to his calculations it should have
been around fifty-five thousand dollars and the City received two-thousand nine-hundred and
forty-seven dollars. He asked how the property taxes for The Pillars decreased when nearly all
other residences in the City increased. He explained that The Pillars was sold in December of
2021 for $31.5 million and asked why its current assessed value was only around $21.5 million.
He noted that it appears that, over a twenty-year period, the deficit to the City from this being party
of the TIF district is around two million dollars. He stated that this was not a trivial amount of
money for a city the size of Shorewood. He referenced The Waters TIF financing status and asked
if the City, in exchange for ceding property to Excelsior, was supposed to receive part of the
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
DECEMBER 11, 2023
Page 3 of 11
property tax paid by The Waters. He stated that nothing appears on the County tax records as
going to Shorewood and noted that if they did not receive that, he would like to know what they
did receive for ceding that land. He noted that Excelsior receives $8,939 as its share of the
property taxes from The Waters and if it were not a TIF district would be about $55,000 and asked
why they received three times as much for this property as Shorewood does for The Pillars when
its market value is much higher. He asked why The Waters property taxes went down 11.3% this
year when the taxes for most Shorewood residents went up.
Mayor Labadie noted that the answers to those questions were out of the control of the Council
and asked Finance Director Rigdon if he had any input on Mr. Greenfield’s questions.
City Administrator Nevinski stated that staff can follow up with Mr. Greenfield to provide a more
thorough response.
Mr. Greenfield explained that he had informed the City more than a week ago of what his
questions would be tonight and did not see any reason the questions cannot be answered tonight.
City Administrator Nevinski stated that they can provide a more formal response in writing but
noted that if Finance Director Rigdon had any of the numbers those could be shared.
Councilmember Maddy stated that two of the questions raised by Mr. Greenfield are specific to
the Assessors Office, which does not go through the City, so they would not have those answers.
Mr. Greenfield argued that it was relevant because it is a City taxation matter and feels that they
should have the answer.
City Administrator Nevinski explained that the County Assessor establishes the values.
Mr. Greenfield stated that he understood that the City did not control that but feels that they are
obligated to enquire why there are apparently these aberrations because it affects the taxes of
every citizen in the City.
Councilmember Maddy stated that he was also curious why the multi-family retirement housing
seems to be going down in value when everyone else is going up.
Mr. Greenfield stated that he felt this was a Truth in Taxation meeting where there was not any
truth revealed.
Barry Brown, 6050 Burlwood Court, stated that City Administrator Nevinski had noted that Mr.
Greenfield’s questions would be answered in written form to him, but asked how the rest of the
public would be notified about the answers to the questions he had raised.
City Administrator Nevinski explained that he takes his direction from the Council and if they would
like a report given at a future meeting, he could include that information within the packet.
Mayor Labadie stated that members of the Council had some of the same questions as Mr.
Greenfield and felt it would be appropriate for an update at a future meeting.
Ron Tobin, 4960 Rustic Way, stated that he was a new homeowner and would like to address the
disrespect that he was given. He stated that he did not feel confident about getting answers from
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
DECEMBER 11, 2023
Page 4 of 11
the Assessor and felt coming to the City was his next best option. He stated that his valuation
went up sixty-one percent past year and this year went up an additional sixteen percent. He
explained that all he wanted was to be able to understand this better and when he asked
questions, all he received was a bunch of ‘F-bombs’ and someone who abruptly hung up the
phone. He stated that with additional phone calls he was able to reach an assistant but received
no further information. He explained that he would still like to have his questions answered, which
was why he felt it may be appropriate to bring them before the Council.
Mayor Labadie asked if it was the Assessor was who had spoken disrespectfully to Mr. Tobin.
Mr. Tobin confirmed that the Assessor was who he was referring to.
Mayor Labadie asked City Administrator Nevinski to follow up with the Assessor tomorrow and
address that issue and the concerns raised by Mr. Tobin.
City Administrator Nevinski stated that he will bring this up with the Assessor and get a response
for Mr. Tobin and noted that it is best if that answer comes from them because the City is not the
ones who are doing that work. He stated that he would follow up directly with Mr. Tobin and shared
his contact information with him.
There being no additional comments, Mayor Labadie closed the public comment portion of the
meeting.
Councilmember Callies stated that the Council had reviewed this on multiple occasions and has
lowered the levy from the preliminary amount approved.
Mayor Labadie stated that she felt the Council worked hard to try to get the levy lower. She noted
that there were some line items that they chose not to decrease because of the level of service
that would be impacted. She stated that she believes what is being presented tonight is as low as
they could go and still provide those services such as public safety and street improvement.
Councilmember Maddy stated that he feels this is a budget in moderation and noted that he did
not think anyone on the Council liked raising the size of the City’s levy. He noted that something
that is not sustainable is that these days, a three percent cost of living adjustments, if you are not
making step raises, it is essentially a pay cut. He stated that the Council did their best to hold
back the line but did take on some debt. He reiterated that nobody actually likes doing this but
believes this is a balanced approach.
Mayor Labadie outlined the benefits of recruitment and retention within the Public Safety arena.
Councilmember Maddy stated that what the City spends on Public Safety and streets is almost
equivalent to what they spend through the County on just their Health and Human Services line
items. He stated that he was happy to spend this money on police and fire rather than some more
complicated things that the County is spending taxpayer money on.
Callies moved, Maddy seconded, Adopting RESOLUTION NO. 23-125, “A Resolution
Adopting the 2024 General Fund operating budget and approving the Property Tax Levy
collectible in 2024.”
Motion passed.
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
DECEMBER 11, 2023
Page 5 of 11
Sanschagrin moved, Maddy seconded, Adopting RESOLUTION NO. 23-126, “A Resolution
Adopting the 2024 Shorewood Community and Event Center Budget and Enterprise Fund
Budgets.”
Motion passed.
Maddy moved, Sanschagrin seconded, Adopting RESOLUTION NO. 23-127, “A Resolution
Adopting the 2024-2033 Capital Improvement Plan, and 2024 Capital Project Fund
Budgets.”
Motion passed.
B. Employee Service Recognition
City Administrator Nevinski expressed appreciation and recognized: Finance Director Rigdon;
Building Official Woodward; and Streets Inspector Eslinger for five years of service, and Senior
Accountant Nguyen for twenty years of service.
Mayor Labadie extended the Council’s appreciation for their years of service to the City and
shared examples of the strengths of each individual.
5. PARKS
6. PLANNING
A. Report by Commissioner Huskins on December 5, 2023, Planning Commission
Meeting
Planning Commissioner Huskins gave a brief overview of the discussion and recommendations
from the December 5, 2023, meeting, as reflected in the minutes.
Councilmember Callies stated that she has attended the Planning Commission meetings as the
Council Liaison and has been impressed with how conscientious the Planning Commission is and
how carefully they consider these matters.
B. Placing the 2040 Comprehensive Plan into Effect
Planning Director Darling reviewed the Met Council’s recent acceptance of the City’s 2040
Comprehensive Plan and explained the next steps in putting the Comprehensive Plan into effect.
Councilmember Sanschagrin asked if there had been any significant modifications to the
Comprehensive Plan as a result of the input from the Met Council.
Planning Director Darling explained that the significant alterations were done between 2019 and
2021 and noted that those were reapproved by the Council. She noted that after that, there were
only minor changes made to this document.
Councilmember Sanschagrin stated that it appears as though the City has surpassed what they
had forecasted for households and density.
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
DECEMBER 11, 2023
Page 6 of 11
Planning Director Darling stated that the City has surpassed the Met Council’s estimates.
Councilmember Sanschagrin asked if that would put less pressure on the City for density
planning.
Planning Director Darling explained that the City would still have to implement the higher density
and additional medium density housing areas.
Councilmember Callies asked about deadlines for the Comprehensive Plan.
Planning Director Darling stated that if the City did not complete, the Met Council would eventually
stop issuing permits for things like sewer extensions and noted that this was one way that they
can ‘punish’ the City outside of the court system if they are taking too long.
Mayor Labadie stated that this is a hot topic among the Regional Mayors and the Minnesota
Mayors Association for things like the Met Council requiring higher densities, because many cities,
including Shorewood, do not have public transit, which makes it very difficult to achieve those
density numbers. She noted that Planning Director Darling was correct in her explanation that the
Met Council has a hold over the City.
Maddy moved, Callies seconded, Adopting RESOLUTION NO. 23-128, “A Resolution
Placing the 2040 Shorewood Comprehensive Plan Update into Effect.”
Motion passed.
C. Consider Variance to Side-Yard Abutting a Public Street
Location: 24925 Amlee Road
Applicant: David Hanson and Shelly Curran
Planning Director Darling reviewed details related to the variance request for property located at
24925 Amlee Road.
Councilmember Sanschagrin noted a language change necessary in the resolution language to
include Manitou Lane.
Callies moved, Maddy seconded, Adopting RESOLUTION NO. 23-129, “A Resolution
Approving a Variance for a Setback from Side-Yard Abutting a Public Street for Property
Located at 24925 Amlee Road. with the language as amended to include Manitou Lane, as
discussed.
Motion passed.
7. ENGINEERING/PUBLIC WORKS
A. Pavement Management Update
Public Works Director Morreim updated the Council on the pavement condition analysis that was
done with the assistance of the new software program. He showed a short video about the
software and explained how it has been and will be used by the City, reviewed how it can help
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
DECEMBER 11, 2023
Page 7 of 11
establish average pavement condition ratings throughout the City, collect additional data for sign
inventories, and annotate site line issues.
Councilmember Sanschagrin thanked Public Works Director Morreim for this presentation and
noted that he can easily see how this will be able to increase their productivity. He stated that one
thing he believes would be helpful is to be able to quantify how much this is saving the City in
terms of productivity and performance. He stated that it would be nice for them to be able to see
the return on the investment in new technology such as this software program. He asked about
the low ranked streets.
Public Works Director Morreim stated that there are some streets that are ranked low, but they
will need to be looked at closely because it does not necessarily mean that they are falling apart,
should be ripped out, and replaced. He stated that these ratings are only a piece of the decision-
making process because the type of traffic and the volume of traffic also play a huge role.
Councilmember Callies noted that Birch Bluff is rated at eighty-six percent, and she would think it
would be at one hundred percent.
Public Works Director Morreim stated that they ran it after it was done, and it was not what he
thought it would be due to some of the patching that was done. He stated that it is another nice
thing about this program because when they have a project, they can run the numbers and do
the analysis with the most recent data.
Councilmember Callies stated that some of the streets that are rated low when you see them do
not appear to be that bad. She stated that she thinks this information will be very useful and helpful
for residents.
Mayor Labadie agreed and noted that she felt it was an improvement over the former ‘eyeball’
approach to analyzation.
8. GENERAL/NEW BUSINESS
A. Utility and Recycling Rates Ordinance
Finance Director Rigdon reviewed details of proposed Ordinance 603 and the decision to raise
fees over the last few years to cover the costs of providing these services to residents.
Councilmember Sanschagrin suggested that they take steps to address the Water Fund a bit
more than what they were doing now. He stated that it looks like it will be 2033 before the City
breaks even. He suggested now having the rate drop down as much as proposed for gallons used
for the middle category that is proposed at $4.99 and have it closer to the $5.91 rate, to catch up
a bit.
Councilmember Callies stated that she can see the logic in that suggestion and asked why he
only wanted to change the middle rate and not the others.
Councilmember Sanschagrin stated that he was just looking at the opportunity to have the heavier
users pay a higher rate to catch up. He stated that the rate pops up to $7.17 for the very high
users.
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
DECEMBER 11, 2023
Page 8 of 11
Councilmember Maddy asked how water a typical household consumes in the City and
households with irrigation systems were using.
Public Works Director Morreim stated that anecdotally he would say that normal water usage for
ndrd
most homes, per quarter, is between 10,000 to 20,000 gallons and is higher in the 2 and 3
quarters. He stated that people that have irrigation systems are above 50,000 gallons, and in
some cases significantly above 50,000 gallons.
Councilmember Sanschagrin reiterated his idea and rationale to smooth the transition and get
additional revenues for the Water Fund to cover the City’s costs. He suggested that the second-
tier rate be changed to something like $5.50 rather than $4.99.
Councilmember Maddy asked if Councilmember Sanschagrin was looking to get the Water Fund
to cover its costs and ‘get its head above water’ in less than ten years.
Councilmember Sanschagrin agreed that was his goal.
Councilmember Maddy asked how much of the City’s costs were fixed versus pumping.
City Administrator Nevinski stated that he feels this is a good and useful discussion but feels that
they may be lacking some data. He explained that one of the reasons that they wanted to set the
rates tonight was for when the first quarter starts, they have the rates in place. He noted that they
do have the option of changing their rates later, which would allow staff to do some more research
and bring the data back to the Council. He stated that he is hopeful that a large chunk of time at
the Council Retreat will be dedicated to talking about infrastructure and pricing. He reiterated that
they could do a rate increase mid-year after they look at the data.
Councilmember Sanschagrin stated that he would be comfortable approving this as presented if
they agree to revisit it at the Council Retreat.
Mayor Labadie stated that she agreed that the Council should discuss this issue and was glad it
was slated for the Council Retreat. She explained that she did not think they had enough
information tonight to make a change.
Sanschagrin moved, Maddy seconded, Adopting ORDINANCE 603, an Ordinance titled,
“Utility Service and Recycling Charges”.
Motion passed.
B. Zoning and Land Use Fee Ordinance
Planning Director Darling gave an overview of the public hearing and discussion by the Planning
Commission related to Zoning and Land Use Fee Ordinance.
Councilmember Maddy stated that this was looking at a 20-25% increase for variance and CUP
applications and asked if they implied that this has been subsidized through the General Fund for
a while.
Planning Director Darling stated that with the costs in processing for things like postage and
increased notification efforts would be well above the application fee.
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
DECEMBER 11, 2023
Page 9 of 11
Councilmember Maddy stated that he just wanted to ensure that the fees will now come as close
as possible to completely covering those costs.
Planning Director Darling referenced the variance application that had been on tonight’s agenda
and explained that cost about $474.00 to process which does not include her time to review it or
write up the staff report. She stated that feels it is important to at least cover the cost of processing
the applications, so others are not required to subsidize those costs.
Councilmember Sanschagrin asked how often these went over their escrow.
Planning Director Darling explained that it was virtually going over with every single plat.
Councilmember Callies reiterated that these costs were not intended to cover staff time but for
the hard costs of processing their applications that if they were not billed, the City would end up
covering.
Planning Director Darling stated that there was some staff time included, for example, processing
packets.
Callies moved, Labadie seconded, Adopting ORDINANCE 602, An Ordinance Approving
Amendments to Shorewood City Code, Chapter 1301.03 (Land Use Fees).
Motion passed.
Callies moved, Maddy seconded, Approving RESOLUTION NO. 23-130, “A Resolution
Approving the Summary Publication for Ordinance 602 Amendments to Shorewood City
Code, Chapter 1301.03 (Land use Fees).”
Motion passed.
C. Update 2024 Master Fee Schedule
City Clerk/HR Director Thone reviewed the proposed changes to the 2024 Master Fee Schedule.
Callies moved, Maddy seconded, Adopting RESOLUTION NO. 23-131, “A Resolution
Approving the 2024 City Master Fee Schedule.”
Motion passed.
9. STAFF AND COUNCIL REPORTS
A. Staff
1. Website Update
Communications Coordinator Wilson gave an overview of the project timeline for the website
update and noted that the launch was tentatively planned for March 2024.
Other
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
DECEMBER 11, 2023
Page 10 of 11
Park and Recreation Director Crossfield stated the Excelsior Morning Rotary Club and the
American Legion have decided to host Oktoberfest again in 2024 and have scheduled it for
September 28, 2024. She noted that the hours will be from 3:00 to 9:00 p.m. and explained that
they have asked that the City hold a three-hour event rather than a two-hour event next year. She
stated that they have begun using CivicRec for facility reservations. She stated that they have
also secured sponsorship from the American Legion, Bolton and Menk, Minnesota Inbound
Watersports, and New Horizon Academy for Arctic Fever.
Public Works Director Morreim stated that staff is working on a lot of equipment maintenance,
safety training, and trimming trees in the right-of-way. He stated that they are also working on
their water meter replacement project and replaced seventy-three meters last week.
City Engineer Budde stated that they had the Eureka Road neighborhood meeting a few weeks
ago. He stated that they continue to take comments on that project and stated that staff is working
on gathering additional information on utilities and watermain. He stated that he expects this to
come back before the Council sometime in 2024.
Councilmember Callies encouraged City Engineer Budde to communicate with the residents
about the general timeframe of when this will come back before the Council.
City Clerk/HR Director Thone stated that City Hall will be open for early voting on January 19,
2024.
City Administrator Nevinski reminded the Council that the Council Retreat is scheduled for
January 26, 2024.
B. Mayor and City Council
Councilmember Sanschagrin thanked Mayor Labadie for the apology she had offered at the start
of the meeting and explained that he would accept it.
Councilmember Maddy stated that he had seen a salt slurry truck pass him last Friday on
Smithtown which seemed to work well. He noted that this is a new program for the City and was
excited about the possibilities for the future.
Councilmember Callies stated that she attended the Planning Commission last week and noted
that her liaison term is up and did not believe anyone had been appointed yet for the new year.
Councilmember Maddy noted that gap created by the usual appointment process and volunteered
to serve as the liaison for the January meeting until a permanent appointment was made later in
the month.
Mayor Labadie stated that she was part of the Minnesota Mayor’s Association who was taking
input from members regarding how to continue education of mayors, especially those that are
out-state. She stated that the SLMPD had their recognition dinner last week where many awards
were given. She explained that the Officer of the Year Award was given to Officer Jake Nelson
along with the Hat Trick Award. She stated that Greenwood Mayor Kind has retired after nineteen
years of service and Greenwood Councilmember Fletcher will be serving as Mayor Pro-Tem for
the time being. She stated that there was a meeting held this morning hosted by Representative
CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES
DECEMBER 11, 2023
Page 11 of 11
Andrew Myers at Minnetonka Beach City Hall that she and Councilmember Sanschagrin attended
along with City Administrator Nevinski where they discussed things that they felt were important
for him to bring up at the upcoming legislative session. She noted that the main topic of discussion
was Highway 7 and noted that they were able to have a great discussion with the MnDOT
representatives that were in attendance. She stated that earlier today she attended the Regional
Council of Mayors monthly meeting in Minneapolis. She stated that on December 13, 2023, she,
and City Administrator Nevinski would attend the Minnetonka Superintendent’s quarterly meeting.
10. ADJOURN
Maddy moved, Sanschagrin seconded, Adjourning the City Council Regular Meeting of
December 11, 2023, at 9:21 P.M.
Motion passed.
ATTEST:
Jennifer Labadie, Mayor
Sandie Thone, City Clerk
Item
2C
City Council Meeting Item
Title/Subject: 2024 Mileage Reimbursement Rate
Meeting Date: January 8, 2024
Prepared by: Sandie Thone, City Clerk/Human Resources Director
Attachments: None
Background
Minnesota law authorizes public entities to compensate or reimburse their employees for
mileage or to pay a monthly or periodic allowance, but not both. Pursuant to the Shorewood
Personnel Policy the city reimburses employees for mileage in lieu of providing a monthly or
periodic allowance for the use of their own vehicles for work purposes.
Effective January 1, 2024, the IRS standard mileage rates for the use of a car (vans, pickups, or
panel trucks) will be 67 cents per mile for business miles driven, up 1.5 cents from the 2023 rate
of 65.5 cents. The standard mileage rate for business is based on an annual study of the fixed
and variable costs of operating an automobile.
The city council in the past has adopted the practice of following the IRS standard mileage rates
for reimbursing employee mileage pursuant to the Shorewood Personnel Policy.
Action Requested
Staff recommends the council approve the practice of following the IRS standard mileage rates
for employee mileage reimbursement for 2024. Motion, second and simple majority vote
required.
Item
2D
City Council Meeting Item
Title/Subject: City Council Out of State Travel Policy Annual Approval
Meeting Date: January 8, 2024
Prepared by: Sandie Thone, City Clerk/Human Resources Director
Attachment: City Council Out of State Travel Policy
Background: An Act by the Minnesota Legislature in 2005 imposed an obligation on cities to
th
establish an official travel policy for elected officials. On the 9 day of January in 2006
Shorewood City Council adopted the attached policy for Out-of-State Travel by members of the
City Council.
The policy addresses the requirements for the following:
1) When travel outside of the state is appropriate
2) Applicable expense limits
3) Procedures for approval of the travel
The policy is required to be reviewed and voted upon on an annual basis. The council can
choose to approve the attached policy or amend the attached policy. There have been no
amendments made to the Travel Policy since its adoption in 2006.
Action Requested
Staff recommends the council review the attached Travel Policy, make amendments if desired
and approve the Travel Policy as is or as amended. Motion, second and simple majority vote
required.
OUT OF STATE TRAVEL POLICY FOR MEMBERS OF THE CITY COUNCIL
PURPOSE
The City of Shorewood recognizes that its elected officials may at times receive value
from traveling out of the State for workshops, conferences, events, and other
assignments. This policy sets forth the conditions under which out-of-state travel will be
reimbursed by the City.
GENERAL GUIDELINES
1. The event, workshop, conference, or assignment must be approved in advance
by the City Council at an open meeting and must include an estimate of the cost
of the travel. In evaluating the out-of-state travel request, the Council will
consider the following:
a. Whether the elected official will be receiving training on issues relevant to
the City or his or her role as the mayor or council member.
b. Whether the elected official will be meeting and working with other elected
officials from around the country to exchange ideas on topics of relevance
to the City or on the official roles of elected officials.
c. Whether the elected official will be reviewing a facility or function that is
similar in nature to one that is currently operating at, or under
consideration by, the City where the purpose for the trip is to study the
facility or function to bring back ideas for the consideration of the full
Council.
d. Whether the elected official has been specifically assigned by the Council
to visit another city for the purpose of establishing a goodwill relationship,
such as a “sister city” relationship.
e. Whether the elected official has been specifically assigned by the Council
to testify on behalf of the City at the United States Congress or otherwise
to meet with federal officials on behalf of the City.
f. Whether the City has sufficient funding available in the budget to pay the
cost of the trip.
2. No reimbursement will be made for attendance at events sponsored by or
affiliated with political parties.
3. The City may make payments in advance for airfare, lodging, and registration if
specifically approved by the Council. Otherwise, all payments will be made as
reimbursements to the elected official.
4. The City will reimburse for transportation, lodging, meals, registration, and
incidental costs as follows:
a. Airfare will be reimbursed at coach rate.
b. Mileage will be reimbursed at the IRS rate. If two or more council
members travel by car, only one driver will receive reimbursement. The
City will reimburse for the cost of renting an automobile if necessary, to
conduct City business.
c. Lodging and meal costs are limited to those which are reasonable and
necessary.
d. Receipts are required for lodging, airfare, parking, and meals and should
accompany an expense report form. It is not necessary to have receipts
for public transportation, cabs and tips. The expense report shall be
submitted to the City Clerk or Finance Department for payment.
e. The City will not reimburse for alcoholic beverages, personal telephone
calls, costs associated with the attendance of a family member, rental of
luxury vehicles, meal expenses included in the cost of registration, or
recreational expenses such as golf or tennis.
5. Exceptions to this policy can be made by majority vote of the City Council.
6. This policy shall be reviewed by the City Council at its first meeting in January
each year, and amendments to the policy must be made by Resolution of the
City Council.
Policy adopted on January 9, 2006.
Item
2E
City Council Meeting Item
Title/Subject: 2024 Master Fee Schedule Updates – SCEC Fees
Meeting Date: January 8, 2024
Prepared by: Sandie Thone, City Clerk/Human Resources Director
Attachments: Resolution 24-001 2024 Master Fee Schedule Updates – SCEC Fees
Background
Pursuant to MN State Law municipalities shall set forth fees to be reimbursed for administrative
costs and expenses associated with issuing permits, licenses and providing other city services and
amenities. Cities should consider three things when setting fees: 1) Cities should not view the
fees as a significant source of revenue, rather fees must approximate the direct and indirect costs
associated with issuing the license, permit or service and with policing, regulating or
administering the service or licensed activities; 2) The fee amount should sufficiently reimburse
the city for all of the expenses related to the license regulations or providing the service but
should not cover other unrelated expenses; 3) Fees should be set based on the city’s particular
situation and not based solely on what other cities have found reasonable.
The following summary of proposed fees will be incorporated into the City’s 2024 Master Fee
Schedule once approved. Attached are the proposed fees for 2024 for the Shorewood Event and
Community Center and the fees charged in 2023 for review. The Park Commission reviewed and
recommend the attached updates to the SCEC Fee Schedule. Park and Recreation Department
staff have reviewed their respective departmental fees to approximate the direct and indirect
costs associated with the services provided.
Financial Considerations
The city fees expect to cover the cost of providing the services as delineated above.
Action Requested
Staff respectfully recommend the city council review the proposed master fee schedule
proposed fee increases and approve Resolution 24-001 adopting the 2024 Master Fee Schedule
updates as proposed or make changes as deemed appropriate.
Motion, second and simple majority vote required.
City of Shorewood Master Fee Schedule/Adopted 5/22/2017
2024
SHOREWOOD COMMUNITY AND EVENT CENTER
All Room and Kitchen rentals are subject to availability. Rates schedule subject to change.
BANQUET ROOM
CAPACITY: 160 - ROUND TABLES, 180 - THEATRE STYLE
MIN. NON-NON-
TIME OF DAY RESIDENT
DAY OF WEEK
HOURS RESIDENT PROFIT
Saturday 8:00 AM to 12:00 Midnight 6 $70/hour $56/hour $35/hour
Sunday 8:00 AM to 11:00 PM 4 $55/hour $44/hour $28/hour
Monday - Friday 9:00 AM to 12:00 Midnight 2 $50/hour $40/hour $20/hour
Damage Deposit $200 $200 $200
Custodial Fee $175 $175 $175
ACTIVITY ROOM
CAPACITY: 40 - BANQUET TABLES, 60 - THEATRE STYLE
MIN. NON- NON-
DAY OF WEEK TIME OF DAY HOURS RESIDENT RESIDENT PROFIT
Saturday 9:00 AM to 12:00 Midnight 2 $46/hour $36/hour $23/hour
Sunday - Friday 9:00 AM to 11:00 PM 2 $40/hour $32/hour $20/hour
Custodial Fee $75 $75 $75
CONFERENCE ROOM
CAPACITY: 20
MIN. NON- NON-
DAY OF WEEK HOURS RESIDENT RESIDENT PROFIT
TIME OF DAY
Saturday 9:00 AM to 12:00 Midnight 4 $35/hour $28/hour $18/hour
Sunday - Friday 9:00 AM to 11:00 PM 2 $33/hour $26/hour $26/hour
Custodial Fee $40 $40 $40
ALL RENTAL ROOMS & LOBBY
CAPACITY: 300
MIN. NON- NON-
DAY OF WEEK TIME OF DAY HOURS RESIDENT RESIDENT PROFIT
Saturday 9:00 AM to 12:00 Midnight 6 $135/hour $108/hour $68/hour
Sunday – Friday 9:00 AM to 11:00 PM 4 $100/hour $80/hour $50/hour
Damage Deposit $400 $400 $400
Custodial Fee $300 $300 $300
COMMERCIAL KITCHEN
DAY OF WEEK RENTAL FEE STORAGE FEE SECURITY DEPOSIT
Monday-Friday $30/hour one time use $50 Month for one $200
Tier 1 $350/month 0-16 hours rental area/$25 per add’l
Tier 2 $600/month 17-49 hours space
Tier 3 $950/month unlimited
City of Shorewood Master Fee Schedule/Adopted 5/22/2017
2024
SHOREWOOD COMMUNITY AND EVENT CENTER
RENTAL ITEMS
Linens:
Rounds @ 12.00 ea.
Rectangles @ 12.00 ea.
All-inclusive dish rental:
$2.50 per person
Water glass or coffee cup:
$0.50 ea.
Coffee: $10/pot
Additional fees and/or damage deposits may be required for unique set-up or decoration requests
2
CITY OF SHOREWOOD
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RESOLUTION 24-001
A RESOLUTION APPROVING THE 2024 CITY MASTER FEE SCHEDULE UPDATES
WHEREAS, The City of Shorewood has established fees for licensing, permits, programs, and services that
include but are not limited to building, zoning, planning, business, community center, animal, park and
recreation, rentals, solicitors, fire prevention, utility, franchise, administrative citations, and other
miscellaneous fees that further the health, safety, and welfare of the community at large.
WHEREAS, All fees and charges shall be fixed and determined by the council and set forth in the master
fee schedule which will be adopted by resolution and uniformly enforced. All fees have been reviewed
and audited for their effectiveness and were recommend in the following categories which will be
included in the 2024 City Master Fee Schedule:
Shorewood Community & Event Center Rates as delineated, reviewed and approved at
the regular city council meeting on January 8, 2024.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood that the City
of Shorewood 2024 Master Fee Schedule updates are approved.
ADOPTED by the City Council of the City of Shorewood this 8th day of January 2024.
______________________________
ATTEST: Jennifer Labadie, Mayor
____________________________________
Sandie Thone, City Clerk
Item
2F
City Council Meeting Item
Title/Subject: Retail Tobacco License
Meeting Date: January 8, 2024
Prepared by: Brenda Pricco, Deputy City Clerk
Reviewed by: Sandie Thone, City Clerk/HR Director
Attachments: Resolution
Background: Pursuant to Section 302 (Sale of Tobacco) of the Shorewood City Code and the
Shorewood Master Fee Schedule, retailers within the city limits who wish to sell tobacco
products are required to obtain a license from the city. Shorewood City Code provides that an
applicant completes an application and pays a licensing fee to be considered for a city retail
tobacco license. The annual licensing period for Tobacco licenses is through October 31.
Shorewood Smokes Plus, LLC applied for a Retail Tobacco License and will be taking over the
lease of the current licensed tobacco shop, Shorewood Smoke Shop Plus.
The following Shorewood business has successfully submitted a complete application,
successfully passed a background investigation through South Lake Minnetonka Police
Department (SLMPD), paid the current annual tobacco license fee of $250 and is compliant with
all requirements for obtaining a tobacco license and have agreed to abide by Shorewood City
Code Chapter 302 Sale of Tobacco Requirements. This section of code includes providing
access to the police department during regular business hours and an annual compliance check.
Applicant Address
Shorewood Smoke Shop Plus 23710 State Highway 7
The MN Department of Health provides guidance for limited THC product sales. Low dose
(<0.3%) hemp derived THC sales are allowed in Shorewood and the City is not regulating sales.
THC products are available to those 21 years of age and older. Sales are limited to 5mg/serving
and 50mg/package. Products are required to be located behind the counter and locked. No
artificially derived ingredients are currently allowed except for Delta 8 and Delta 9. Violations
are reported to the MN Department of Health. Retailers of hemp derived THC are required to
be registered with the Minnesota Department of Health. Beginning in 2025, hemp derived THC
retailers will also need to obtain a license from the State Office of Cannabis Management and
register with the City.
Financial Considerations: The licensing fees collected as revenue offset the expense of issuing
the permits pursuant to Shorewood City Code Section 1301 (Municipal Fees).
Recommendation/Action Requested: Staff respectfully requests the city council approve the
Resolution Approving Retail Tobacco License to Shorewood Smokes Plus LLC to Sell Tobacco
Products for the period of January 9, 2024 through October 31, 2024. Motion, Second, and
Simple Majority required.
CITY OF SHOREWOOD
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RESOLUTION 24-002
A RESOLUTION APPROVING RETAIL TOBACCO LICENSE
WHEREAS, Sections 302 of the Shorewood City Code provide for the licensing of the sale of
tobacco products in the city and requires all licensees comply with the code; and
WHEREAS, the Shorewood City Code provides that an applicant shall complete an application,
pay a licensing fee, and successfully pass a background investigation; and
WHEREAS, the following applicant has satisfactorily completed an application, paid the
appropriate fee, and passed a background investigation.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood as follows:
That a License for the sale of tobacco products be issued for a term commencing on
January 9, 2024 and expiring on October 31, 2024, consistent with the requirements and
provisions of Chapter 302 of the Shorewood City Code to the following applicant:
Applicant Address
Shorewood Smoke Shop Plus 23710 State Highway 7
th
ADOPTED by the City Council of the City of Shorewood this 8 day of January 2024.
_______________________________
ATTEST: Jennifer Labadie, Mayor
____________________________________
Sandie Thone, City Clerk
Item
2G
City Council Meeting Item
Title/Subject: Contractor Agreement Renewal with Erica Heinrichs
Meeting Date: Monday, January 8, 2024
Prepared by: Janelle Crossfield, Parks and Recreation Director
Reviewed by: Mark Nevinski, City Administrator
Attachments: Parks and Recreation Independent Contractor Agreement
Background
Erica Heinrichs is a Certified Instructor and Senior Trainer of Tai Chi for Health Programs and
has been providing Tai Chi instruction to community members since May of 2023. Erica has
done a wonderful job of building relationships with participants and providing a program
tailored to the various abilities of program participants. Shorewood Parks and Recreation is
excited to continue offering Tai Chi programming for the community as Tai Chi has many health
benefits.
Approval of the agreement includes any future addenda executed between the contractor and
Parks and Recreation Director through December 2024. For the purposes of this contract the
addenda includes program logistics such as location, dates, times, program fees, no class days,
and program descriptions. These program logistics are agreed upon throughout the year by City
staff and the contractor.
Financial Considerations
Erica Heinrichs receives a portion of the program revenue collected by City of Shorewood.
Action Requested
Motion to approve the renewal of independent contractor agreement with Erica Heinrichs. A
simple majority vote is required.
City of Shorewood Parks and Recreation
Independent Contractor Agreement
Parties and Terms
This Contractor Agreement (Agreement) dated ___January 8____, 2024 is by and between the City of
Shorewood (City) and ______Erica Heinrichs_____ (Contractor). This Agreement is in effect from
____January 8, 2024_________ until _______December 31, 2024_____.
I. Services to be Performed
The Contractor will perform the services outlined in the addendum to this Agreement and any future
addenda executed between the Contractor and the Parks and Recreations Director. By signing the addendum
and any future addenda, the Contractor agrees to the terms indicated including dates, times and payment
agreement, as if fully incorporated herein.
II. Independent Contractor
This Agreement shall not render the Contractor an employee, partner, or agent of the City for any purpose.
The Contractor is and will remain an independent Contractor in (his/her) relationship to the City. The City
shall not be responsible for withholding taxes with respect to the Contractor’s compensation hereunder. The
Contractor shall have no claim against the City hereunder or otherwise for vacation pay, sick leave,
retirement benefits, social security, worker’s compensation, health or disability benefits, unemployment
insurance benefits, or employment benefits of any kind.
The Contractor will be responsible for the hiring, training, supervision, and conduct of any staff utilized in
the above-listed services. All staff, working directly with children, are subject to background checks. All
background checks must be completed prior to the start of the above-listed services. Proof that
background checks are conducted by the Contractor must be provided to the City in the form of an
official letter.
The Contractor will determine the method, details and means of performing the services outlined.
III. Services Provided by the Contractor
It is understood that the Contractor is experienced and trained to provide the services listed in the addendum
and that the City requires such services. Therefore, it is hereby agreed that the Contractor will provide the
following services.
1. Supplies: Any necessary supplies will be supplied by the Contractor.
2. Equipment: Any necessary equipment will be supplied by the Contractor.
03/21/2023 Page 1 of 6
225664v2
3. American Disabilities Act (ADA): The City is mandated by law to provide reasonable
accommodations for people with disabilities which include contracted recreation services. Contractors
are expected to work with the City in order to provide for reasonable accommodations.
IV. Services Provided by the City
It is understood that the City will provide the following services to facilitate and support the contracted
services listed above.
1. Promotion: The City will promote the above-listed services in Shorewood publications and by any
other means deemed necessary.
2. Facility Use: The City will provide and maintain an appropriate space for the activities and
arrange for its use at no cost to the Contractor.
3. Registration/Refunds: The City will be responsible for participant registration and fee collection
for the above-listed services. Participant withdrawals: Participant withdrawals made seven (7) days prior to
the start of the above-listed services will receive a full refund. After that time, no refunds will be provided
except for withdrawals made due to illnesses/injury, with a doctor’s note, unless agreed upon by both the
City and the Contractor. The City will not pay the Contractor for refund requests granted due to
unsatisfactory services provided by the Contractor.
The City will be responsible for providing a participant list to the Contractor, one (1) week prior to the start
date of the above-listed services. All participant lists will remain the property of the City.
4. ADA/Inclusion: The City will provide the Contractor with information on any participant with
special needs and will work with the Contractor to make any necessary accommodations that are
reasonable.
V. Compensation
The City will pay the Contractor a portion of the net program revenue (specified in the addendum). Upon
the successful completion of the specified services, the Contractor shall bill the City for services provided.
VI. Business Expenses
Any expenses incurred by the Contractor pursuant to providing the services including, but not limited to,
travel and phone expenses are the sole responsibility of the Contractor.
VII. Insurance
The Contractor, at its expense, shall procure and maintain in force for the duration of this Agreement the
following minimum insurance coverages:
1. 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 an additional insured.
03/21/2023 Page 2 of 6
225664v2
2. 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.
3. 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 employer’s 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.
Acceptance of the insurance by the City shall not relieve, limit or decrease the liability of the Contractor. Any
policy deductibles or retention shall be the responsibility of the Contractor. The Contractor shall control any
special or unusual hazards and be responsible for any damages that result from those hazards. The City does
not represent that the insurance requirements are sufficient to protect the Contractor's interest or provide
adequate coverage. All policies of insurance shall provide that the insurance company will notify the City at
least thirty (30) days prior to the effective date of any policy cancellation, modification, or non-renewal prior
to the date on which the Contractor, or its consultants, commences performance of its part of the work,
evidence of coverage is to be provided to the City. The City may direct that copies of the actual insurance
policies, or renewals or replacements thereof, be submitted to the City.
VIII. Property Damage Waiver
The Contractor waives all its rights against the City for damages covered by property insurance. The
Contractor shall require a similar waiver from all its consultants. The Contractor waives all of its rights of
recovery against the City because of deductible clauses in, or inadequacy of limits in, any policies of insurance
that are in any way related to the work and that are secured and maintained by the Contractor. The Contractor
waives any of its rights of recovery against the City because of a lack of insurance coverage. The Contractor
shall require similar waivers from all of its consultants. The Contractor shall waive all of its rights of recovery
against the City for loss or damage to any of its equipment, machinery, tools or property that is used in
connection with this Agreement. The Contractor shall require a similar waiver from all its consultants.
IX. 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
03/21/2023 Page 3 of 6
225664v2
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.
X. Compliance with Statutes
The Contractor shall abide by all applicable state and federal laws, rules and regulations that govern City
activities and the activities provided for in this Agreement, including but not limited to the Data Practices Act,
records retention guidelines, non-discrimination and disability accommodation laws and guidelines, and Minn.
Stat. § 121A.38 (concussion procedures).
XI. Government Data/Privacy
Contractor agrees to abide by the applicable provisions of the Minnesota Government Data Practices Act,
Minnesota Statutes, Chapter 13, HIPAA requirements, and all other applicable state or federal rules,
regulations, or orders pertaining to data privacy or confidentiality. The Contractor understands that all of the
data created, collected, received, stored, used, maintained, or disseminated by the Contractor in performing
those functions that the City would perform is subject to the requirements of Chapter 13, and the Contractor
must comply with those requirements as if it were a government entity. This does not create a duty on the part
of the Contractor to provide the public with access to public data if the public data is available from the City,
except as required by the terms of this Agreement. In the event the Contractor receives a formal request to
release data pursuant to the Minnesota Government Data Practices Act, the Engineer will immediately notify
the City. The City will give Contractor instructions concerning the release of data to the requesting party
before the data is released. Contractor agrees to defend, indemnify, and hold City, its officials, officers, agents,
employees, and volunteers harmless from any claims resulting from Contractor’s officers’, agents’, owners’,
partners’, employees’, volunteers’, assignees’, or subcontractors’ unlawful disclosure and/or use of protected
data. The terms of this section shall survive the cancellation and termination of this Agreement.
XII. Audits
Pursuant to Minnesota Statutes, § 16C.05, Subdivision 5, the Contractor agrees that the City, the State
Auditor, or any of their duly authorized representatives at any time during normal business hours and as often
as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt, and
transcribe any books, documents, papers, records, etc., which are pertinent to the accounting practices and
procedures of the City, and involve transactions relating to this Agreement. The Contractor agrees to maintain
these records for a period of six (6) years from the date of termination of this Agreement.
XIII. Governing Law
The laws of the State of Minnesota shall govern all interpretations of this Agreement, and the appropriate
venue and jurisdiction for any litigation which may arise hereunder will be in and under those courts located
within the County of Hennepin, State of Minnesota, regardless of the place of business, residence or
incorporation of the Contractor.
XIV. Program Termination
If a contracted program fails to meet the required minimum number of participants set by the Contractor and
the City, the service may be cancelled at no penalty to either the Contractor or the City.
XV. Contract Termination, Cancellation and Default
03/21/2023 Page 4 of 6
225664v2
Either party to this Agreement may terminate this Agreement upon thirty (30) days written notice, except that
if the Contractor fails to fulfill its obligations under this Agreement in a proper and timely manner, or
otherwise violates the terms of this Agreement, the City shall have the right to immediately suspend the
contracted services and to then terminate this Agreement, if the Contractor has not cured the default upon ten
(10) days written notice.
Notwithstanding the above, the Contractor shall not be relieved of liability to the City for damages sustained
by the City as a result of any breach of this Agreement by the Contractor. The City may, in such event,
withhold payments due to the Contractor for the purpose of set-off until such time as the exact amount of
damages due to the City is determined. The rights or remedies provided for herein shall not limit the City, in
case of any default by the Contractor, from asserting any other right or remedy allowed by law, equity, or
by statute.
XVI. Third Parties
This Agreement does not create any rights, claims or benefits inuring to any person that is not a party hereto
nor create or establish any third party beneficiary.
XVII. Modification or Amendment
No amendment, change or modification of this Agreement shall be valid unless in writing and signed by the
parties hereto.
XVIII. Entire Understanding
This Agreement and any exhibit/addendum attached constitute the entire understanding and agreement of
the parties, and any and all prior agreements, understandings and representations are hereby terminated and
cancelled in their entirety and are of no further force and effect.
XVIX. Unenforceability of Provisions
If any provision of this Agreement, or any portion thereof, is held to be invalid and unenforceable, then the
remainder of this Agreement shall remain in full force and effect.
XX. Service Suspension and Cancellation
1. If a contracted service fails to meet the required minimum number of participants, the service
will be cancelled at no penalty to either the Contractor or the City.
2. Severe weather policy: in the event of severe weather, the City and the Contractor will make a
determination on whether or not to cancel the above-listed services for that day. If the above-listed services
are cancelled, a refund will be provided to the participants or a makeup date will be scheduled. If a refund
is provided, contract fees will be adjusted accordingly.
3. If at any time the actions of the Contractor and/or their staff compromise the physical, mental or
emotional safety of a participant, the City shall have the right to immediately suspend services until the
issue has been resolved or the contract terminated (see Termination and Default section of the Independent
Contractor Agreement).
03/21/2023 Page 5 of 6
225664v2
XXI. Offsite Programs
The Contractor agrees to provide the City with a copy of a Certificate of Liability Insurance for services
offered off of City property. The City must be listed as an additional insured.
XXII. Service/Program Addendum
A service or program addendum, as contemplated in Section I, will be sent and approved by the City for
each service or program indicating service details including class schedule and pay arrangement. The
Contractor agrees to review, sign and return the addendum before services are provided.
I N WITNESS WHEREOF the undersigned have executed this Agreement as of the day and year first written
above.
City of Shorewood Contractor:
_____________________________________
\[Name of Contractor\]
By: ________________________________ By ______________________________
____________________________ ____________________________ \[print name\]
Its Mayor Its _________________________ \[title\]
By________________________________
____________________________
Its City Clerk
03/21/2023 Page 6 of 6
225664v2
Item
2H
City Council Meeting Item
Title/Subject: Accept Resignation of Park/Recreation Director and Approve
Recruitment for Position
Meeting Date: January 8, 2024
Prepared by: Sandie Thone, City Clerk/Human Resources Director
Reviewed by: Marc Nevinski, City Administrator
Attachments: Park/Recreation Director Job Description
Background: Staff received the resignation of Park/Recreation Director Janelle Crossfield on
December 20, 2023. Her last day with the city will be on January 5, 2024. She has accepted an
opportunity with another organization. Ms. Crossfield began her employment with the city on
November 3, 2022.
In her resignation letter she explained that this was a difficult decision to make and she has
“enjoyed working with the kind, tremendously talented and professional team at the City of
Shorewood.” Janelle stated she appreciated all the support and opportunities she received
from the team and is deeply grateful for the relationships she has built with the residents,
partnering organizations, Southshore Senior Partners, Parks Commission and Council. She
expressed “this truly is a great community.” We are grateful for her contributions this past year
and wish her the very best in her new endeavor.
With Janelle’s departure, staff would like to begin recruitment for her replacement. With
th
consideration from the January 8 work session discussion, staff is requesting the council
provide direction and approval for the recruitment. Please see the attached current job
description for Park/Recreation Director.
Financial Considerations
No change expected.
Action Requested
Staff respectfully recommends the city council accept Janelle Crossfield’s resignation and
approve recruitment for replacement of her position as Park/Recreation Director or as
determined. Motion, second and simple majority vote required.
Item
2I
City Council Meeting Item
Title/Subject: Approve Reclassification of Public Works Supervisor
Meeting Date: January 8, 2024
Prepared by: Sandie Thone, City Clerk/Human Resources Director
Reviewed by: Marc Nevinski, City Administrator
Joe Rigdon, Finance Director
Attachments: Dr. Tessia Melvin of DDA Memo
Updated Public Works Supervisor Job Description
Background
On September 11, 2023, the city council approved the results and implementation plan of the
Compensation Study presented by Dr. Tessia Melvin of David Drown Associates. In addition, the
city council reviewed and approved a city reclassification policy. At that time, DDA identified
some inconsistent pay grades with the pay equity points and in turn used the Job Evaluation
Tool (JET) to reclassify those positions identified and council approved the reclassifications as
well. Those positions identified were reclassified effective October 1, 2023.
As a result of the compensation study process, it was identified that one of the utility light
equipment operators was performing the work of the Lead Utility Operator. The council
approved for the position to be internally posted pursuant to the AFSCME Union contract. As a
result of that interview process, Luke Weber, LEO-Utility was promoted to the Lead Utility
Operator position on October 23, 2023. This caused compression between the Lead Utility
Operator position and the Public Works Supervisor position of $39.22 and $42.83, respectively.
A Job Classification Appeal was received by Public Works Supervisor Chris Heitz in our office in
early December and was forwarded to Dr. Tessia Melvin, DDA pursuant to the Compensation
th
Study policy. On December 7, City Administrator Nevinski, City Clerk/HR Director Thone, and
Dr. Tessia Melvin met to discuss the Appeal. HR Director Thone subsequently met with Public
Works Director Morreim to update the Public Works Supervisor job description to better reflect
the actual duties being performed in the position, especially focusing on the expanded
supervisory responsibilities. The Public Works Supervisor is responsible for the day-to-day
supervision of PW employees and performs their annual performance appraisals. The updated
job description is attached for your review. The reclassification recommendation memo from
Dr. Tessia Melvin is attached, as well.
The reclassification of the Public Works Supervisor position is proposed to move on the
compensation schedule from Grade 11 Step Max (1/1/2024 Rate of $44.12) to Grade 13 Step E
(1/1/2024 Rate of $47.14) pursuant to the reclassification policy and Dr. Melvin’s
recommendation after evaluating the classification/appeal. Reclassification Policy: Reclassify
positions to the new grade into the nearest upgraded salary but allow those employees who
have over 5 years of service an additional step increase to allow for seniority and experience to
be paid at a higher rate than newly hired employees.
For Position and Grade reference see below:
Grade 1: SCEC Attendant and Warming House Attendant
Grade 4: Recreation Specialist
Grade 7: Administrative Assistant
Grade 10: Senior Accountant
Deputy City Clerk
Communications Coordinator
Planning Technician
Grade 11: PW Supervisor (Current)
Grade 12: Street Inspector
Grade 13: Building Official
PW Supervisor (Proposed)
Grade 14: City Clerk/Human Resources Director
Grade 16: Planning Director
Grade 17: Finance Director
Grade 18: PW Director
Grade 20: City Administrator
Financial Considerations
The cost for the reclassification of the position if approved, to be implemented in 2024, is
estimated at $6,281 and will be funded from the Public Works departmental budget and
reserves, as necessary.
Action Requested
Staff recommends the council approve the Reclassification of the Public Works Supervisor
position from Grade 11, Step Max to Grade 13, Step E of the Shorewood Compensation
Schedule. Motion, second and simple majority vote is required.
Item
2J
City Council Meeting Item
Title/Subject: Accept Final Improvements for the 2022 Mill & Overlay Project;
City Project 21-11
Meeting Date: Monday January 8, 2024
Prepared by: Andrew Budde, City Engineer
Reviewed by: Matt Morreim, Director of Public Works
Attachments: Resolution, Final Payment Application,
Background:
At the May 23, 2022 Council Meeting, Council awarded the contract for the 2022 Mill & Overlay
Project to Valley Paving, Inc. The project includes Silver Lake Trail, Sierra Circle, Christmas Lake
Road, Christmas Lake Lane (East & West), and Galpin Lake Road. Work was substantially
completed in the fall of 2022 and final completion with all remaining punch list items was
completed in the summer of 2023. Valley Paving has submitted the Minnesota IC-134
Withholdings Affidavit Form, Consent of Surety, Maintenance Bond, and requests acceptance &
final payment from the city. During construction staff coordinated to have additional work
added for two items due to low bid prices and having a quality contractor available in the city.
Woodside Lane: In 2020 the city had a project that included paving Woodside Lane and the
next year was scheduled to reconstruct the adjacent lift station. To avoid damaging the new
pavement with the lift station construction efforts, the final lift of asphalt of the Woodside Lane
cul-de-sac was held off and planned to be added to a future city project. Ultimately it worked
out to add it to the 2022 Mill & Overlay project due to the timing of construction and low bids,
but it was not bid as part of the original bid. The additional paving of the final lift of asphalt
totaled $16,522.49. Approximately this amount was not used in the Woodside Lane project in
2020 and moved into the city reserves.
Watermain Breaks: The City had multiple watermain breaks resulting in damaged pavement,
concrete curb, and sidewalks throughout the city that needed to be repaired. The contractor
priced the works at $35,000.00 and signed the attached Change Order. This work was
completed at the direction of staff due to the pricing the timing of the repairs and anticipated
to approve the Change Order retroactively.
A resolution accepting the improvements & authorizing final payment for the 2022 Mill &
Overlay Project is included.
Financial or Budget Considerations:
Valley Paving was awarded the project with a bid of $595,566.40. The additional work for
Woodside Lane for $16,522.49 plus the Watermain Break Change Order for $35,000.00
increased the contract amount to $647,088.89. The Woodside Lane paving efforts were paid
for out of reserves since it was eliminated and carried over from a 2020 city project. The
Watermain Break Change Order was paid for out of the Water Fund Operations Budget. The
final amount completed in the contract is $616,358.40. This is $30,730.49 below the project
contract amount that was adjusted with the above two changes. The underrun in the overall
contract is largely due to significantly less than anticipated topsoil borrow and bituminous
leveling course throughout the project. The final payment amount due to the contractor is
$7,024.50.
Action Requested:
Staff has reviewed the estimate, verified quantities, and recommends approval & final payment
be made to Valley Paving for city project 21-11 in the amount of $7,024.50 for the 2022 Mill &
Overlay Project. A simple majority vote is required.
CITY OF SHOREWOOD
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RESOLUTION 24-003
A RESOLUTION FOR FINAL ACCEPTANCE FOR THE
2022 MILL & OVERLAY PROJECT; CITY PROJECT 21-11
WHEREAS, Pursuant to the approved award of the 2022 Mill & Overlay project in the amount
of $595,566.40 to Valley Paving, Inc. at the May 23, 2022, Council Meeting ; and
WHEREAS, Additional work for paving the wearing course of Woodside Lane for $16,522,49 was
included via a change order and funded through reserves as it was eliminated and carried over
from a 2020 city project; and
WHEREAS, Additional work for completing watermain break repairs for street, curb, and
sidewalk for $35,000 was included via a change order and funded from the Water Fund
Operations Budget; and
WHEREAS, Valley Paving, Inc. has completed all work in accordance with the awarded contract
is requesting acceptance and final payment for the work; and
WHEREAS, Staff has reviewed the estimate, verified quantities, received the warranty bond, IC-
134s, consent of surety, and recommends acceptance of the project and make final payment to
Valley Paving, Inc.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD,
MINNESOTA AS FOLLOWS:
1. The City Council of the City of Shorewood hereby authorizes final acceptance and payment to
Valley Paving for the 2022 Mill & Overlay Project according to the plans and specifications on
file in the office of the City Clerk.
th
Adopted by the City Council of Shorewood, Minnesota this 8 day of January 2024.
__________________________
Jennifer Labadie, Mayor
Attest:
___________________________
Sandie Thone, City Clerk
Item
8A
City Council Meeting Item
Title/Subject: 2024 Annual Appointments and Designations
Meeting Date: January 8, 2024
Prepared by: Sandie Thone, City Clerk/Human Resources Director
Reviewed by: Marc Nevinski, City Administrator
Attachments: Resolution 24-004: 2024 Appointments
Resolution 23-007: 2023 Appointments
Advisory and Commission Liaison Expectations and Roles
Background
Minnesota State Statute requires the city council to conduct the following business at the first
annual meeting of the year:
Designate an official newspaper.
Appoint an acting mayor from among the council members. The acting mayor shall
perform the duties of the mayor if there is a vacancy in the mayor’s position or during
the mayor’s disability or absence.
Select an official depository for city funds (this must be done within 30 days of the start
of the city’s fiscal year).
In addition, although not required by state statute, city councils will also do the following at the
first meeting of the year:
Review different council appointments to city boards and commissions.
o New this year is the option to appoint up to two staff or council members to the
Mound Fire Advisory Committee. The City Administrator currently attends these
quarterly meetings.
Review council bylaws and make any needed changes.
Assign committee duties to members.
Approve official bonds that have been filed with the clerk.
Attached you will find Resolution 23-007 which shows the appointments for 2023. The city
council shall review and determine the appointments as delineated in the Draft Resolution for
2024 and make appointments. The city council shall review the Advisory and Commission
Liaison Expectations and Roles.
Action Requested
Staff recommends the council approve Resolution 24-005 Approving 2024 Annual
Appointments and Designations. Motion, second and simple majority vote is required.
CITY OF SHOREWOOD
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RESOLUTION 24-004
A RESOLUTION DESIGNATING 2024 ANNUAL APPOINTMENTS
TO CERTAIN OFFICES AND POSITIONS WITHIN THE CITY OF SHOREWOOD
WHEREAS, it has been the policy of the Shorewood City Council to make annual appointments
to fill certain offices and positions within the City government at the beginning of each year;
and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood as follows:
1. That the following persons are appointed to the following offices and positions:
Acting Mayor:
________________________
Park Commission Liaison; January – June 2024:
___________________________
Park Commission Liaison; July – December 2024:
__________________________
Planning Commission Liaison: January – June 2024:
__________________________
Planning Commission Liaison; July – December 2024:
__________________________
Lake Minnetonka Communications Commission:
__________________________
Alternate Lake Minnetonka Communications Commission:
__________________________
South Lake Minnetonka Police Department Coordinating Committee:
__________________________
Alternate South Lake Minnetonka Police Department Coordinating Committee:
__________________________
Excelsior Fire District Board Member:
__________________________
Alternate Excelsior Fire District Board Member:
__________________________
Mound Fire Department Advisory Committee:
____________________________
City Administrator
Weed Inspector:
Mayor Labadie-per State Statute
Assistant Weed Inspector(s):
__________________________
Electronic Funds Transfer Authority:
__________________________
2. That the following other appointments are made:
City Attorney:
Jared Shepherd, Campbell Knutson, P.A.
City Prosecutor:
Campbell Knutson, P.A.
3. Official Depositories:
Alerus Bank, 4M Fund and other Depositories as necessary
4. Official Newspaper:
Sun Sailor (and Laker Pioneer News as applicable)
5. In absence of the City Clerk, the City Administrator is authorized to sign contracts on behalf
of the City.
6. That Columbus Day will now be recognized as Columbus Day/Indigenous People’s Day.
That such appointments shall take effect on the date hereof and shall continue for the
remainder of the year or until such time as a successor is appointed by the City Council.
th
ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 8 day of January 2024.
__________________________
Jennifer Labadie, Mayor
ATTEST:
________________________________
Sandie Thone, City Clerk
CITY OF SHOREWOOD
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RESOLUTION 23-007
A RESOLUTION DESIGNATING 2023 ANNUAL APPOINTMENTS
TO CERTAIN OFFICES AND POSITIONS WITHIN THE CITY OF SHOREWOOD
WHEREAS, it has been the policy of the Shorewood City Council to make annual
appointments to fill certain offices and positions within the City government at the
beginning of each year; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood as
follows:
1. That the following persons are appointed to the following offices and positions:
Acting Mayor: Councilmember Callies
Council Rep/Park Commission Liaison:
January – June 2023: Councilmember Sanschagrin
July – December 2023: Councilmember Johnson
Council Rep/Planning Commission Liaison:
January – June 2023: Councilmember Maddy
July – December 2023: Councilmember Callies
Lake Minnetonka Communications Commission: Councilmember Sanschagrin
Alternate LMCC: Councilmember Maddy
South Lake Minnetonka PD Coordinating Committee: Mayor Labadie
Alternate SLMPD CC: Councilmember Callies
Excelsior Fire District Board Member: Councilmember Johnson
Alternate EFD Board Member: Councilmember Maddy
Weed Inspector: Mayor Labadie-per State Statute
Assistant Weed Inspector(s): Chris Heitz & Luke Weber
Electronic Funds Transfer Authority: Joe Rigdon, Michelle Nguyen,
Marc Nevinski
2. That the following other appointments are made:
City Attorney: Jared Shepherd, Campbell Knutson, P.A.
City Prosecutor: Campbell Knutson, P.A.
3. Official Depositories: Alerus Bank, 4M Fund and other
Depositories as necessary
4. Official Newspaper: Sun Sailor (and Laker Pioneer News as
applicable)
5. In absence of the City Clerk, the City Administrator is authorized to sign contracts on
behalf of the City.
That such appointments shall take effect on the date hereof and shall continue for the
remainder of the year or until such time as a successor is appointed by the City Council.
th
ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 9 day of
January 2023.
__________________________
Jennifer Labadie, Mayor
ATTEST:
________________________________
Sandie Thone, City Clerk
Item
9A.1
City Council Meeting Item
Title/Subject: 2024 Elections Update
Meeting Date: January 8, 2024
Prepared by: Sandie Thone, City Clerk/Human Resources Director
Background
The City of Shorewood will hold four (and possibly five) elections as follows in 2024:
MARCH 5 PRESIDENTIAL NOMINATION PRIMARY ELECTION
APRIL 30 SPECIAL ELECTION PRIMARY (if needed)
MAY 14 SPECIAL ELECTION (Hennepin County Commissioner in District 6)
AUGUST 13 PRIMARY ELECTION
NOVEMBER GENERAL ELECTION
The Legal Marijuana Now Party did not submit any candidates by the filing deadline so the PNP
will include only Republican and Democrat party ballots. Staff will proof Ballots on January 4th
th
and expect delivery of absentee voting ballots at City Hall on January 16. Absentee Voting for
the PNP Election (often referred to as Early Voting) begins on Friday, January 19th at
Shorewood City Hall. City Hall is open for voting from 8:00 a.m. to 4:30 p.m. Monday through
nd
Friday through March 4, 2024. City Hall is open for voting on Saturday, March 2 from 9:00
a.m. to 3:00 p.m. and until 5:00 p.m. the Monday before election day. Direct balloting begins
th
Friday, February 16, where early voters to City Hall may feed their ballots directly into the
th
ballot counter. We will be closed on President’s Day, Monday, February 19. Sample Ballots
will be available to view on our website and at City Hall.
Shorewood Polling Places will be open from 7:00 a.m. to 8:00 p.m. for voting ON Election Day,
Tuesday, March 5, 2024:
nd
Precinct 1: Minnewashta Church located at 26710 West 62 Street
Precinct 2: Shorewood Community Center & Event located at 5735 Country Club Road
Precinct 3: Excelsior Covenant Church located at 19955 Excelsior Boulevard
Polling places and precinct changes were made in 2022 due to redistricting. For residents who are
unsure of where to vote, we have provided a link on our website to the Secretary of State’s
Pollfinder at https://pollfinder.sos.state.mn.us/ where they can enter their your address to find out
where they vote on Election Day.
th
January 19 is also the day that campaign signs may be posted pursuant to MN Statute 202A.14,
subd. 3 and Shorewood City Code.
This year’s General Election will include city offices for Mayor and City Council (2). Information on
Candidate Filing will be included in future updates.
Action Requested
No action – Informational Purposes Only
Item
9A.2
City Council Meeting Item
Title/Subject: Response to Truth in Taxation Questions
Meeting Date: January 8, 2024
Prepared by: Marc Nevinski, City Administrator
Reviewed by: Joe Rigdon, Finance Director
Attachments: None
Background
At the December 12, 2023 Truth in Taxation Hearing, the following questions were asked by
residents. Staff contacted Hennepin County staff regarding several of the questions.
1. George Greenfield, 24715 Yellowstone Trail, asked about the properties in the City that are
in TIF districts.
a. Mr. Greenfield asked how much revenue the City lost in 2023 as a result of The Pillars
(6000 Chaska Rd, Shorewood, MN) being in TIF rather than having a regular status and
explained that according to his calculations it should have been around fifty-five
thousand dollars and the City actually received two-thousand nine-hundred and forty-
seven dollars.
City Staff: The City’s share of the 2023 taxes for the Pillars (aka Shorewood Landing)
property was $60,375. Since the original base value prior to development on a TIF
property does not generate tax increments, that base value amount is non-TIF and
generates regular taxes. Shorewood’s regular taxes are $2,947 for 2023.
b. Mr. Greenfield asked how the property taxes for The Pillars decreased when nearly all
other residences in the City increased. He explained that The Pillars was sold in
December of 2021 for $31.5 million and asked why its current assessed value was only
around $21.5 million.
County Assessor: This is a complex property with independent living, assisted living and
memory care units. With additional supportive services within the building, rent paid by
tenants goes beyond just real estate. The $31,500,000 sale price from December of
2021 is an allocated price among two other properties also purchased in Ramsey
County. Also included in the purchase price are intangible items such as business value.
Put another way, the purchase price includes other items that are not real estate nor
part of the assessment process. In looking at the valuations over the past several years,
the value has remained flat at $21,546,000. There was no reduction in value. There was
a petition filed for the 2020 assessment that resulted in a dismissal from the petitioner.
A flat value trend is consistent with the broader apartment market and even more so
with a continuing care facility such as this one that are still recovering from the effects
of the pandemic. In general, this property type saw increased costs associated with the
pandemic and staffing shortages which resulted in lower occupancies.
c. Mr. Greenfield referenced The Waters (723 Water St, Excelsior, MN) TIF financing status
and asked if the City, in exchange for ceding property to Excelsior, was supposed to
receive part of the property tax paid by The Waters. He stated that nothing appears on
the County tax records as going to Shorewood and noted that if they did not receive
that, he would like to know what they did receive for ceding that land.
City Staff: For the Waters project, there is an Annexation-Detachment Agreement
between Shorewood and Excelsior. This authorized annexation of Shorewood parcels
into Excelsior. The agreement includes the following sharing of tax revenues:
Excelsior shall pay Shorewood 19.68% of the city share of property taxes paid on
the base value of the development properties. This has generated around $2,000
per year.
Excelsior’s TIF district shall receive all tax increments.
When Excelsior’s TIF district expires or is terminated, Excelsior shall pay Shorewood
70% of the city share of the property taxes generated by the development
properties.
d. Mr. Greenfield noted that Excelsior receives $8,939 as its share of the property taxes
from The Waters and if it were not a TIF district would be about $55,000 and asked why
they received three times as much for this property as Shorewood does for The Pillars
when its market value is much higher.
City Staff: Since the original base value prior to development on a TIF property does not
generate tax increments, that base value amount is non-TIF and generates regular
taxes. Excelsior’s regular taxes are $8,939 for 2023 and are approximately three times
Shorewood’s regular taxes of $3,593.21. That is because of the following: 1) the original
base value for the Waters was about $35,000 and 2) the original base value for the
Landings was about $13,000. When the tax rate is applied, the Waters has a higher city
tax revenue. Additionally, Excelsior’s 2023 tax rate of approximately 27.2% is higher
than Shorewood’s 2023 tax rate of approximately 22.32%
e. Mr. Greenfield asked why The Waters property taxes went down 11.3% this year when
the taxes for most Shorewood residents went up.
County Auditor: The Waters recently had an assessment appeal decided in tax court. As
a result, on 10/23/23 the PAY 23 value of The Waters was reduced from $21.4M to
$19.6M. As part of the same court action the PAY 24 value was reduced from $21.4M to
$19.3M on 9/18/23. Unfortunately, the notices of proposed tax were generated on
10/15/23, a date between the two value change dates. One column of the TNT notice
reflected the court action, the other did not. Ideally, both numbers on the notice would
be either before the tax court change or after the tax court change. Absent the tax
court action, The Pillars and The Waters would have seen similar tax impacts on their
notices of proposed tax.
2. Ron Tobin, 4960 Rustic Way expressed concern about understanding the valuation of his
property.
County Assessor: We were below market value on land values within this neighborhood
up until the last couple of assessments. This particular property has a structure on it
valued at just $25,000 with the estimation that a buyer would likely build something
new and raze the current building. Growth percentages can be deceiving in a
circumstance like this when compared against other properties. In other words, when
land is the component moving and makes up the majority of the overall estimated
market value, growth percentages will appear inconsistent. This property does have
some oddities which can contribute to us falling behind the market, and with additional
data from sales we were required to correct that lag. The adjacent property at 21000
Forest Dr. has identical land value to the subject property for the past three
assessments, but due to a higher structure value on the 2022 and 2023 assessments saw
overall change percentages at 40% and 10.68%, respectively.
I have spoken to Mr. Tobin a few times over the years. He has a “yurt” looking home, it
might be actually be octagonal in shape, although I am not sure of the exact number of
sides. The building value has been at $25,000 since 2018 and the increases have all
been on the land side. It is a 1108 sq ft home with a 484 sq. ft. detached garage. There
are photos in Vision. Although there is no interior inspection date in Vision, I know that
I have seen the interior. It sits on .47 acre lot. A similarly sized lot, a stone’s throw away
from him (24045 Ivy Lane), sold for $210,000 in 6/2020. In looking at the last three
years of sales on the GIS map, homes have sold from $340,000 to $1,020,500 in this
area of Shorewood during that timeframe.
I think he had mentioned there was a buildability issue with the shape of his lot. It does
jut out on the north side and that part is pretty much not buildable, but when I checked
with the building official (this was the previous building official) there appeared to be no
problems to build a typical house with a typical garage. (Note: The Planning Director
has confirmed that the lot is double the size required for this district. Although it is
irregularly shaped, the lot could easily accommodate many home styles, even with the
additional setbacks for a corner lot.)
Here is the breakdown for the valuations over the last three years:
AY Land Building Total Increase
2021 $111,000 $25,000 $136,000
2022 $199,000 $25,000 $224,000 65.7%
2023 $234,600 $25,000 $259,600 15.9%
The increase was completely based on land value changes which have followed the
market. While maybe not impossible I think it would be very difficult to buy a half-acre
lot in this area for under $250,000.
Financial Considerations
None
Action Requested
This memorandum is provided as information only. No action is requested.