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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.