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12-11-23 CC Reg Mtg MinutesCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, DECEMBER 11, 2023 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 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. 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 most homes, per quarter, is between 10,000 to 20,000 gallons and is higher in the 2nd and 3rd 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 -Tern 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: AdniferALabadie, Mayor Sandie Thone, City Clerk