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121090 CC Reg AgP f,.'- II . .. CITY OF SHOREWOOD CITY COUNCIL MEETING MONDAY, DECEMBER 10, 1990 COUNCIL CHAKBERS 5755 COUNTRY CLUB ROAD 7:30 P.M. AGENDA 1. CONVENE REGULAR CITY COUNCIL WORKSHOP A. Pledge of Allegiance B. Roll Call Watten stover Brancel Mayor Haugen Gagne C. Review Agenda B. City Council Workshop - - November 26, 1990 ~ (Att.NO.2A-Minutes) December 3, 1990 ~.~ (Att.NO.2B-Min~~es) ~ 2. APPROVAL OF MINUTES A. Regular Council Meeting utJn-' 3. STATE OF THE CITY - Mayor Hauqen 4. PRESENTATION BY THE EXCELSIOR SLOW PITCH LEAGUE 5. CONSENT AGENDA A. Approving Transfer of Funds from the Liquor Fund to General Fund (Att.NO.5A-Finance Memo) B. Setting Date for 1991 Board of Review (Att.No.5B-Hennepin rf'" ~ .+~~ ~ County Memo) QJJbL ~ ~ ~~~~:~!g " R"solution Confirming Amendments to the 1990 \ (Att.No.5C-Finance Memo) D. Confirming the Appointment of Kirk Rosenberger to the Planning Commission ---"'~--"~';";/- ( (.{'.,:( c{ j3v~ ~/ riVirV(V;+;) e:)/ ),/~/ ~ / L/' .::> ~ ~ 5/{; 'S~Uama^o.:rdmI onqnd .:rO;l uOl~l~ad ~da"ov · g ~r """"'-vA!?-lVv, ~ ~uamaa.::to'f .ilI.1, pasodo.::td AalAa~ .'f I ( v .I1I ::iSWd' mrO.il~::i.1,'fM . ~"[ A~ltlqlsEa.il - "["[.o~~~~~~ 1~'~;A' /. ~uammo::> oTtqn .g /~ ~/"I J1/--H .:raaulDUa };~l:> - };pn~s };~nlqls"a.!! ;10 UOH12wasa.:rd .V (blt?,,1 (~~! /~ S.1,N:3:waAO~dWI Gvml H::>llilH::> - :>NIWl3:H ::>1'land ."["[ Wd 00:6 I ~c/v(l0J (f (omaw s.::taaulou::i-O"[ 0 ON. ~~'f) d~"J J 'd Qy () c.';Y'/~ .1,V'ld V}INO.1,MV'l - S:3:I.1,I'lI.r.n GNY .1,:3::3: ::i::>NV.1,d::i::>::>V . 00"[ '1/-7 " .~ v'U (omaN s.::tauuEtd-6.0N.~~V) aOEtd xassns S06V xo.il ao.::toa:> :uol~Eoo'l :~ueOltddv ~O.il .1,S:3:nO:3:~ 06 .I .~~ ? jl ('-() j f1I oy );}) '5 :3:::>NYI~A >I::>va.1,::iS (U01~ntOSa~-so)0~~'f) aAl.::tG pooM SS"[v~ uOl~on.::t~suo::> taq~.::tEa :uol~EOO'l :~UEoltdd'f NOI.1,::>nH.1,SNO::> 'l::iH.1,~a HO.il odono::> V :>NI.1,NVH:> NOI.r.n'lOS::iH .S (.::ta~~a'l s~uEOltddV 'omaw s.::to~E.::t~slulmp'f-LooNO~~'f) ~ 4~J' a qJ.. 5/-1J S:3::>HVH::> pEO~ s~~a~OE.::ta 069,,[~ AauaaAS UAEG PUE onoG :uol~EOO'l :~UEoltdd'f NOI.1,:::>:3:NNO::> H:3:.1,'fM .ilO .1,N:3:WSS:3:SS'f ~O.il NOI.1,I.1,:3:d OL O~ ~Ul~ Aa~OOH ~.::tEOq~E::> .::to} anDEtd 0"[ uOlsslmmo::> ~.::tEd .g uOlsslmmo::> oUluuetd .V S.1,~Od::iH NOISSIHwO::> .9 (4/ {lVYj :; ( 9 (omaw s.::taUUEtd-::iSOONO~~V) uo ~qol'l ~aa.::t~s E }O uOl~EttE~SUI OU1Ao.::tCIdv $' ~9tI~ , ~ M/n ~ I.....J.W s"Z' oJ.- A!7 ( ';<fI11 I ~ - , G::inNI.1,NO::> - VGN::i:>V .1,N::iSNO::> .0 S UOl~luoooa~ }O UOl~ntosaH Oa OU lif>Ycl 066t 'Ot aliaHa::>lia 'YaNliey ~ t .. AGENDA - DECEMBER 10, 1990 PAGE THREE 13. REVIEW CONTRACT WITH ASSOCIATED CONSULTANTS FOR WATER TREAT- MENT PLANT - PLANS AND SP~~CATIONS . . . 11-\(1 ~;~' (A. tt.No.13-Adnl1n~strators r\ . Memo) 14. 17. 18. 19. 20. 21. EXT NO CONTRACT FOR IT CHTHROUGH MARCH 1991 , V 1:t()crf,? (Att. No .14 "'Ad1ninistrator ~ .. . 't~~mo) SEWER RENTALf,,{-'tI~YOFEXCELSIOR (Att. No. 15-Memo, Letter and Contract from Excelsior) RE YCLING (Att.No.16-Memo, Proposed Recycling Contract) /9 Vv~v- REVIEW PROPOSED AMENDMENT TO CITY OF CHANHASSEN ANIMAL CONTROL CONTRACT - (Att.No.17-Letter and Contract from Chanhassen) CONSIDER RESOLUTION APPROVING MN/DOT ALTERNATIVE NO.4 FORlJ~ T.H. 7 AND CHRISTMAS LAKE ROAD INTERSECTION IMPROVEMENTS~~~ CONSIDER 1991 PAY PLAN AND COMPENSATION ADJUSTMENTS ~(! (Att.No.19-Ad1ninistrator -.J.H h..yC; Memo) MATTERS FROM THE FLOOR /.~ ; STAFF REPORTS A. City Administrator - Metro Relations Agreement (Att.NO.21A-Letter) '..B. lJt;c.e.'f ~8fb(Crr-; 22. COUNCIL REPORTS A. Mayor Haugen B. Councilmembers 1. Gagne - Senior Housing Task Force Update 2. 23. ADJOURNMENT SUBJEC~ TO PAYMENT OF THE CLAIMS (Att.NO.23-Claims) t .. AGENDA - DECEMBER 10, 1990 PAGE THREE 13. REVIEW CONTRACT WITH ASSOCIATED CONSULTANTS FOR WATER TREAT- MENT PLANT - PLANS AND SPE~CATIONS . 11-\..(1 ~V . (Att.No.13-Administ;rators r\ . Memo) 14. EX END CONTRACT W TH I CH THROUGH MARCH 1991 , V ~ (kY"f ,/;( (Att.NO.14-Administrator . ''f:'A~mo) CONTRACT FOR SEWER RENTAtf"t~"~~ OF EXCELS:tOR (Att. No. 15-Memo, Letter and Contract from Excelsior) 17. 18. 19. 20. RE YCLING (Att.No.16-Memo, Proposed Recycling Contract) OR 1991 /9 ~'-&/l-- REVIEW PROPOSED AMENDMENT TO ANIMAL CONTROL CONTRACT - CITY OF CHANHASSEN 21. (Att.No.17-Letter and Contract from Chanhassen) CONSIDER RESOLUTION APPROVING MN/DOT ALTERNATIVE NO.4 FORi ,~ T.H. 7 AND CHRISTMAS LAKE ROAD INTERSECTION IMPROVEMENTS~~ CONSIDER 1991 PAY PLAN AND COM ENSATION ADJUSTMENTS (Att.No.19-Administrator p..yC; Memo) MATTERS FROM THE FLOOR ~ STAFF REPORTS A. City Administrator - Metro Relations Agreement (Att.No.21A-Letter) __..B. tJDeK~'1 edof;r-; 22. COUNCIL REPORTS A. Mayor Haugen B. Councilmembers 1. Gagne - Senior Housing Task Force Update 2. 23. ADJOURNMENT SUBJECT TO PAYMENT OF THE CLAIMS (Att.NO.23-Claims) It.' -- - -~'l it'V -,...., .,. --..... .r. ..- ~,# ,.~ f_........... _ _. . '111 "I'/f' December 7, 1990 Agenda Item ~e____ ~..........\_'... ""'"........~ -~. Adopting a Resol~~oa-eOnfirm~Rq~endments to the 1990 Budget Atta~C--separate cover-~Mon~)l .'.............., ".p;., .~.,"'.,"".,' .,..- ........{< Agenda Item No. 8 Resolution Granting a C.U.P. for Barthel Construction Attachment No. 8--separate cover--Monday . -{ i.~ ;}" . . SHOREWOOD MEMO: DATE: loz.-1-ttD TO: l'-"\ .... 'i 0 (' ^- '^ d C. " -+- ~ C OJ (\!.-', \ FROM: ~6 ~\~(~r'\ .A++~hyV\e.^+- ~ 5E- ro!.'. f.;li re.f\ ~\V.( ( Rco.~ 0t (".e.. f 1-i~~t R.e1 LIe') t ,,,; \ \ be. d:1 ~ tr; bsr~! 0'" tl\o~d~'t . . . MAYOR Jan Haugen COUNCI L Kristi Stover Robert Gagne Barb Brancel Vern Watten CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD . SHOREWOOD, MINNESOTA 55331 . (612) 474-3236 MEMO TO: FR: DT: The City Council Larry Whittaker December 7, 1990 RE: December 10, 1990, city council Agenda #5. CONSENT AGENDA A. Please see AI's Memo B. The Assessor finds April 15, 1991, practical; and, I recommmend you approve that dat for the Board of Review C. Please see AI's Memo D. This motion was made before the workshop was formally convened Dc. 3; so, I think you should reaffirm it. E. See Brad's Memo F. Mayor Haugen suggested we adopt this Resolution. #6. B. 1. The Park Commission recommends that we acknowledge the contribution of the American Legion for the new hockey rink with a plaque on the rink. I concur. #7. PETITION FOR ASSESSMENT OF WATER CONNECTION CAHRGES Although the Council has approved one request to assess the water connection charge, the circumstances were quite different. The petitioner was on permanent disability. His well failed and he did not have the income to replace it or pay city connection charges. He had no income to support a bank loan for the charges. So, the Council agreed to assess it over five years at 8% interest. The current petitioners are not permanently disabled nor on a fixed income. Bank financing is an alternative. There is not the same hardship. The City's connection charge was, as they admit, a known fixed charge before they incurred the additional charges. The staff, while sympathetic, cannot recommend the City become a bank. Others who have asked have been told clearly that we will not spread-out the costs through assessment. And, we think we need to be consistent and treat everyone the same...unless there is a clearly demonstrated hardship_ A Res;dent;al Commundy on Lake M;nnetonka's South Shore . . COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 1 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, NOVEMBER 26, 1990 M I NUT E S CALL TO ORDER Mayor Haugen called the meeting to order at 7:30 P.M. PLEDGE OF ALLEGIANCE ROLL CALL Present: Mayor Haugen, Councilmembers Gagne, Stover, Brancel and City Attorney Froberg, City Planner Nielsen, City Finance Director Rolek, City Engineer Norton, City Administrator Whittaker. Absent: Councilmember Watten REVIEW AGENDA Brancel moved, Stover seconded, to approve the Agenda with the following corrections: 1. Item 20 B - added. A review of the Planning Commission applicants. Motion carried - 4/0. APPROVAL OF MINUTES A. ELECTION CANVASS MEETING - NOVEMBER 8. 1990 Brancel moved, Gagne seconded, to approve the Canvassing Board Minutes of Nov. 8, 1990. Motion carried - 3/0 (Stover abstained) B. REGULAR CITY COUNCIL MEETING - NOVEMBER 13, 1990 Gagne moved, Brancel seconded, to approve the City Council Minutes of November 13, 1990. Motion carried - 4/0. *~A 1 . . COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 2 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. NOVEMBER 26. 1990 COMMISSION REPORTS: A. PARK COMMISSION 1. Use of Park Dedication Fees Park Commissioner Dzurak addressed the Council. He said the Park Commission recommends the City use the remaining Park dedication fees for the entire Park system; based on the priorities established by the Park Commission. Gagne said the fees from the S. E. Area should remain in that area. Dzurak said Silverwood Park is a main priority. The Council accepted the Park Commission's recommendation. The policy was not changed. 2. Payment Voucher No.1, Showcase Landscape - for Freeman Park Irrigation in the amount of $32.195.45. Park Planner Koegler said the irrigation Park is beyond 90% completed. The final to be completed today. (Nov. 26. 1990). payment. system at Freeman list of items was He recommended Gagne moved. Brancel seconded. to approve Payment Voucher No.1. Showcase Landscape - for Freeman Park Irrigation - in the amount of $32,195.45. Motion carried - 4/0. 3. Other The Commission also discussed the snowmobile use on the Hiking Trail. The Commission said the use should not be restricted. Gagne asked if these regulations would remain the same all season. He was concerned that the Council would discuss the subject of restricting snowmobiles again. Resident asked how far in advance the City Agenda is published, so that the snowmobile club can be aware of any changes in the regulations. Haugen said the Agenda is pUblished the Friday before the meeting. Haugen said she would not vote on a discussion of snowmobiles. B. PLANNING COMMISSION Councilmember Stover said the Planning Commission recommended granting the two C.U.P items that are on the Agenda. .":.i . . COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 3 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. NOVEMBER 26. 1990 UPDATE ON UNDERGROUND TANK REMOVAL Public Works Director Zdrazil presented Tom Green, Consultant, with Applied Engineering. Mr. Green was on the site when the tanks were removed. He took soil samples and found the ground to be contaminated. He called the Minnesota Pollution Control Agency. Since there is an ongoing pollution situation at Fina, he said the City will have to wait until the Fina problem is resolved to get a final report on the site. More laboratory tests will need to be done. The City now has 100 Cu. Yd. of contaminated soil to dispose of. There are two ways to do this. 1. Land farm - the soil is spread out to aerate. 2. Burn - The material is burned at an asphalt plant. Green said the land farms are not available for dumping from Nov. through April and the asphalt plant have shut down for the year. The City will have to store the soil until spring. Green said the cost to the City for disposal through Applied Engineering's will be about $8000.00. He said the City can be reimbursed by the PCA for 90% of the costs. Haugen asked the criteria for a land farm. because the City has just purchased an additional public works site. Green said the PCA has established criteria. He said one fifth of an acre would handle the City's soil. Gagne wants the soil disposed of immediately in the spring. Haugen asked Green if the soil would leach into the ground. Green said the PCA regulations require the soil to be covered by plastic, so there will be less leaching. Zdrazil said he talked to McCrossen & Co. They can dispose of the soil for $40.00 per cu. yd. Green said this probably does not include hauling. His firm would haul and dispose of the soil for $60.00 per cu. yd. Stover asked how long it will take to obtain a permit. Green said he will start the process immediately. He does not have a dumping site and will continue to look for one. 8:00 P.M. PUBLIC HEARING ON PROPOSED 1991 BUDGET RESOLUTION NO. 127-90 The Public Hearing on the Budget was called at 8:00 P.M. Finance Director Rolek addressed the City Council. He told the Council the City Staff had looked at the growth of the City, additional services and the proposed capital improvements to prepare the budget for 1991. ~ . , . . COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 4 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, NOVEMBER 26, 1990 He said the Truth in Taxation statements that were mailed to residents stated that Shorewood's taxes will increase 10.2%; this increase is City-wide. not per parcel. Rolek stated that. in the last two years. $190.000 has been cut from the budget; $166.000 in local government aid was lost in 1989 and another $25.770 was cut by the State in 1990. Rolek said the City has grown from a population of 4604 in 1980 to 5890 in 1990 and most of this has been in the last four years. Taxable value has increased in the City due to new development. So. most of the budget and tax increases have been covered by taxes on new buildings. GENERAL FUND Rolek said the revenue for the General Fund is received sporadically. The City must carry a reserve for the first six months of the year. They generally have 50% of the budget in reserve. This amount is recommended by the State and the accountant. Haugen said the Administrator and Department heads have done a good job of budgeting. She asked the audience to give their names if they want to comment. BRUCE SULLIVAN - 4910 REGENTS WALK Mr. Sullivan asked how the 10.2% was determined. Rolek said it is the difference between 1990 tax levy and 1991 tax levy. Stover explained that more people are paying taxes in Shorewood and there is an increase in the number and value of homes. This means that not every parcel will have a 10.2% tax increase. DAVE ANDERSON - 6055 LAKE LINDEN DRIVE. Anderson asked how the City knows that houses have increased in value. Haugen said the increase in value is determined by the sales of houses in the area. The assessor visually checks 1/4 of the City each year. Anderson asked how the values are determined; do they use bank appraisals or County appraisals? Whittaker said the assessor uses whatever they can to get a value as close to market value as possible. The values must be as close to 92% as possible or the City is penalized. REVIEW OF BUDGET Resident asked why the State was slow in distributing money to the City. Haugen and Rolek said they didn't know why but it does take about 2 months to receive the money after the taxes are collected. Resident asked if the League of Minnesota Cities could sponsor a bill in the Legislature to correct this problem. . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. NOVEMBER 26. 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 5 Haugen said they do lobby and citizens can contact their representatives in the legislature to help with the problem. DEPT *51 - MAYOR AND COUNCIL Rolek said most of the increases in this department come from salary increases, FICA and an increase in dues. He said money is set aside in this department for employee salary increases, which have not been determined yet or appropriated to departments. Haugen said the Council needs to be able to negotiate Staff salaries. Whittaker and Rolek said the proposed increase in the budget for wage and salary adjustments is 14.6%. She said any excess funds will be added to the contingency fund. Haugen and Gagne said the contingency fund is only used for emergencies. Resident asked about line 53, Subscriptions and Memberships. Why are these paid in the first five months of the year? Haugen and Whittaker said the majority of this money amount is the LMCD ($16,287) and the money is due January 1, 1991. DEPT 52 - ADMINISTRATOR Rolek said the increase in this department was due to the addition of equipment maintenance cost to the budget. Haugen said the City is trying to make the budget reflect each department's expenditures spreading general expenses to the Department spending the money. DEPT 53 - GENERAL GOVERNMENT SERVICES Rolek said this department handles general government services, including elections. DEPT 54 - FINANCE Rolek said this budget decreased because of a shift in the salary of the Sr. Accounting Clerk to Utility billing. DEPT. 55 - PROFESSIONAL SERVICES Rolek said the major increases in this department are due to the transfer of the auditor from General Government Services, increase in the assessor's cost and an increase in Engineering costs. DEPT. 56 - PLANNING AND ZONING Rolek said the main additions in this department are computer costs, recording secretary, planning & zoning computer software and a cellular phone. ~ . . COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 6 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. NOVEMBER 26. 1990 DEPT. 57 - MUNICIPAL BUILDING CITY HALL Rolek said there is a decrease in this department. Haugen said Line 63 - Other Improvements, is $10,000 because the City promised the neighbors they would buffer the area around the City Hall. DEPT. 58 - POLICE Mr. Sullivan said he thought the Police contract increase was 6%, why is the budget stating another 3%7 Rolek said the police asked for 4 new encoders in the squad cars to activate the Civil Defense siren. Haugen said the State inspected the system for activating the sirens and said it was inadequate. The Police now have to enter the Excelsior City Hall and activate the siren. Whittaker said there has also been an increase in prisoner expense. The City is charged a daily rate by the County for prisoner expense. DEPT. 59 FIRE Rolek said the City contracts with Excelsior and Mound for fire services. Haugen said the Fire Dept. sets this price and the City has no input. She said the new Council should try to have more input into the fire budget. Resident asked if the Fire Dept. gave a basis for the cost. Rolek said yes, they submitted a budget. Rolek said our share is based on property values, however, not demand. Haugen said Shorewood and Deephaven pay the most money. Whittaker said the Mound contract is based partly on the number of calls. He would like to see that type of contract with Excelsior. He also said Excelsior has not always budgeted enough for new equipment, so some years have a large increase for new equipment. Mound has a formula for equipment replacement. Haugen stated that Excelsior would not have to purchase tankers, if Shorewood were on a water system. Bob Rascop also said the insurance rates are higher in Shorewood because there is no water system. DEPT. 60 - PROTECTIVE INSPECTION Rolek said there is an increase in animal control because we have more patrol. DEPT. 61-68 PUBLIC WORKS *61 - SERVICE Rolek said this increase 1S due to additional Park services, an increase in supplies and equipment reserves. Public Works Director Zdrazil said the City will need to replace a dump truck in two years at a cost of over $60,000. h . . COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 7 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, NOVEMBER 26, 1990 *62 - CITY GARAGE Rolek said this department has a $12,000 increase due to removal of fuel tanks. Two fuel tanks are being removed in 1990 at a cost of $20,000 with soil clean-up costs. *63 - STREETS AND ROADWAYS Rolek said there is an increase In expenditures for supplies. Bob Rascop asked about the State Aid for highways. Rolek said the budget does not reflect this because it is a pass through. There is $150,000 available for MSA roads. Whittaker said, if the funds were used the roads must be constructed to the State specifications. The funds may be used for Vine Hill Road and Old Market Road. But, they aren't budgeted until a project is planned and approved by the Council. Resident asked if the money should be reflected in the budget. Whittaker said the money can only be used if the project is applied for. He also said the money reflected in the budget must be only what is spent. Stover said most roads in Shorewood do not qualify for the funds. The roads must be upgraded to State standards if a project is ordered and many residents don't want that type of street, with curb, gutter and storm sewers. *64 - SNOW AND ICE REMOVAL Rolek said this department shows a slight increase. *65 - TRAFFIC CONTROL - STREET LIGHTING Haugen said new semaphores will be installed along HwY. 7. She wants the new Council and Administrator to make certain the costs to maintain the semaphores are divided equally among the cities involved. Whittaker said many residents have been asking for street lights. Everyone in the City pays for the cost of power for these new lights; but not everyone has the benefit. Sullivan asked where the excess in over time salaries in Dept. 64 is placed. Whittaker said there was little snow last year, so the excess was added to the contingency fund. However, in a year with normal snow falls the $5000 could be used very quickly. *67 - SANITATION Rolek said the a~nual Spring Clean-Up cost $20,000 this year. Only $6000. was received in fees. The fees for dumping have increased dramatically but fees haven't. The City is reimbursed for 80% of the recycling costs. 7 . . COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 8 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. NOVEMBER 26. 1990 Resident asked if recycling is effective. Stover said the City has made it's recycling goal every year. The residents are responding very well. Haugen said there is a recycling incentive of $25.00 each week. Resident asked if the City will receive any of the value of the aluminum? Whittaker said the City will receive a portion of the value in 1991. *68 - TREE MAINTENANCE Haugen said the City is no longer required to remove trees with Dutch Elm disease. They only remove trees on City property now. There is no State program to reimburse residents, now. *69 - PARKS & RECREATION/BEACHES Rolek said this department has had a significant increase. The increase is due to shifting the maintenance expense from Public Works to Parks, 50% of the Parks Secretary salary and the addition of one maintenance person. There has also been an increase in material for the Parks. BREAK 9:30 - 9:40 DEPT. 70 - CAPITAL IMPROVEMENTS Rolek said the Capital Improvements budget has had the greatest increase. The budget has included money for a public works site. Parks and road improvements. Haugen said the current Public Works site is actually on Park land. The land for a new site has been purchased; but, the City needs to set aside money for a new building. Rascop asked how the City had used money from pre-paid bonds. Rolek said the money had been used for purchase of the Public Works land, irrigation in Freeman Park and underground tank removal as well as to retire other bonds. Rolek said the additional levy of $63,112 will put the City up to the levy limit. The City must certify the budget by Sept. 1. The budget can be decreased but not increased after that date. So, the maximum levy was proposed in September to give the Council flexibility. Resident asked target date for the new Public Works site. Rolek said the building will be built in three to five years. Haugen said a salt-sand building will be built in 1991. Resident asked what excess was left over from 1989? Rolek said the excess was $180,000. Haugen asked if the Council wanted to take out the additional $63,112. Brancel, Gagne and Stover agreed to keep the money in the budget. 8 . . COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 9 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. NOVEMBER 26. 1990 DEPT. 71 - CONTINGENCY Whittaker said this budget remained the same. He would advise keeping this amount; at least. DEPT. 79 - WATER FUND Rolek said this fund has consistently run a deficit; it is currently -$250.000. He said the fund now has a positive cash flow. at least. Haugen said the City will be enforcing a water shut-off policy. Whittaker said the water fund is supported by the users. Haugen added. except for the $16.000 for bonds which are levied over the entire City. DEPT. 80 - WATER FUND EXPENDITURES Haugen said some water meters have been stuck and need repair. The City purchases some water from Excelsior. Minnetonka and Tonka Bay for residents. DEPT. 81 - SEWER FUND REVENUES Rolek said there is an increase in this department due to the construction of new homes and an increase in SAC charges. DEPT. 82 - SEWER FUND EXPENDITURES Rolek said the MWCC charge for sewer treatment is high; it increased $34.000. Haugen asked the new Council to continue to discuss these charges with the MWCC. Resident asked if the City has done a flow analysis? Engineer Norton said this is the third year of an I and I analysis and main rehabilitation. It has been very effective. Rolek said the budget includes fund for lift station replacement. Haugen asked the audience if they had any further questions. Bob Rascop asked how much the staff has increased in the past year. Whittaker said one and one half persons have been added in Public Works- for parks - and a contract position was replaced with a full time employee in 1989. Rolek said the salaries have increased 5% in Public Works. Haugen said the Public Works Dept. has a labor negotiator. The Council sets the staff salaries based on merit. tenure and salary levels for Cities of Shorewood's size. Whittaker said he has recommended a 4.1% salary increase in pay ranges for the staff in 1991. ~ . . COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 10 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, NOVEMBER 26, 1990 Resident asked how the City will cope with the Fair Share Policy. said the Cities will have a problem. He said the Metro area legislators want this policy. Whittaker said that more taxes because of the equalization of area legislators encourage the lower valued homes. He will be paid outside the Metro area property values. This is why the Metro policy. However, taxes may increase on 10:18 THE PUBLIC HEARING ON THE BUDGET WAS CLOSED. Brancel moved, Gagne seconded, to adopt RESOLUTION NO. 127-90 "A Resolution Approving the City of Shorewood 1991 General Operating Fund, Water Fund and Sewer Fund Budgets and the Property Tax Levy 1991." Motion carried - 4/0 on a roll call vote. 9:00 P.M. - PUBLIC HEARING ON THE RESOLUTION NO. 128-90 FEASIBILITY OF CONSTRUCTING CERTAIN IMPROVEMENTS TO THE SHADY HILLS DRAINAGE SYSTEM Haugen called the Public Hearing at 10:20 P.M. City Engineer Norton presented the Feasibility Report on the Shady Hills Drainage System. He presented the Subwatershed Boundary Map and a list of the benefitted properties. These properties are identified as Storm Sewer Tax District, Shady Hills. The estimated project cost will be $35,000.00. This improvement will require easements from the Almquist property Lot 5, Block 2, and his neighbor Lot 6, Block 2. Norton said the project is feasible and can be constructed as a separate project. Haugen asked if the audience had any comments. Whittaker said the tax for the improvements is based on the value of the property. Haugen asked if there were any other comments. Resident (neighbor of Mr. Almquist) asked how to gIve an easement. Haugen said he could talk to Mr. Almquist and they could each give an easement to the City. He said he would talk to the Staff about this. Haugen asked for comments three times and closed the Public Hearing at 10:35 P.M. Stover said the Council had received a letter from Mr. Johnson questioning his inclusion in the Taxing District. Norton said he had looked at his property on the topographical map and felt he should be included. Whittaker agreed with him. . . COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 11 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, NOVEMBER 26, 1990 Froberg said Mr. Johnson will get a notice of his assessment and prior to or at the Public Hearing he can lodge a complaint. He can then appeal to the District Court. Stover moved, Gagne seconded, to adopt RESOLUTION NO. 128-90 "A Resolution Authorizing the City Engineer to prepare Plans and Specifications for Storm Sewer Improvements in the Shady Hills Subwatershed.t1 Motion carried 4/0 on a roll call vote. Gagne asked if the Council has agreed to establish Special Taxing Districts for drainage projects. He said this could become a problem. Brancel said she had asked before if the Districts had to be used. once they were established and was told they did not. Haugen said the Council is not obligated to use them. C.U.P. - FILLING IN EXCESS OF 100 CUBIC YARDS APPLICANT: DUANE BARTHEL LOCATION: 24155 WOOD DRIVE The City Engineer reviewed the grading plan prepared by Meyer-Rohlin and found it acceptable. He visited the site and looked downstream to assure there were no problems. Based on the Engineer's report Planner Nielsen recommended granting the C.U.P. subject to the applicant planting seed or sod no later than June of 1991. Stover said the Planning Commission recommended granting the C.U.P. Brancel moved, Stover seconded, to authorize the City Attorney to prepare Finding of Fact for the approval of a C.U.P. for Duane Barthel Motion carried - 4/0 on a roll call vote. APPEAL NOTICE TO REMOVE APPLICANT: LOCATION: TAD SHAW 5580 SHORE DRIVE Mr. Shaw addressed the Council and said he is in the process of licensing one of his cars. He said he cannot find a garage for the other car. He asked for an extension of two weeks. Nielsen said all other vehicles have been licensed. Gagne said the Council usually allows a 30 day extension. Stover moved, Gagne seconded, to grant an extension until December 31, 1990, for the Notice to Remove for Tad Shaw, 5580 Shore Drive. Motion carried - 4/0 1. :!. . . COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 12 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. NOVEMBER 26. 1990 APPEAL FROM ZONING VIOLATION APPLICANT: DAVID RYAN LOCATION: 25560 SMITHTOWN ROAD Planner Nielsen said the matter has been satisfactorily taken care of and a neighbor wrote a letter commending Mr. Ryan. APPEAL NOTICE TO REMOVE APPLICANT: KEITH MADONNA LOCATION: 23885 CLOVER LANE Mr. Madonna addressed the Council and said he has not had time to restore the pool liner in his pool and would like an extension of time. Planner Nielsen said the pool liner is the only item left to be removed. Brancel moved, Gagne seconded. to grant a 30 day extension to Keith Madonna to either install a fence around his pool or remove the pool. If a fence is installed, the pool must be repaired by June 1, 1991. Motion carried - 4/0. C.U.P. - TEMPORARY WARMING HOUSE MANOR PARK RESOLUTION NO. 129-90 APPLICANT: CITY OF SHOREWOOD LOCATION: MANOR PARK Stover said the Planning Commission recommended granting a one year C.U.P. for a temporary warming house. They felt the Council should be reminded of the need for a permanent structure. Gagne moved. Brancel seconded, to adopt RESOLUTION NO. 129-90 "A Resolution Granting a One Year C.U.P. for a Temporary Warming House at Manor Park. II Motion carried - 4/0 on a roll call vote. REQUEST FOR REDUCTION OF ESCROW - FOX RUN WEST RESOLUTION NO. 130-90 APPLICANT: FULLERTON PROPERTIES LOCATION: FOX RUN WEST Norton said Fullerton Properties has requested reduction of their escrow account for Fox Run West to $27,000.00. He said OSM has inspected the project throughout its construction and the work has been done satisfactorily. He recommends reducing the escrow account subject to the submission of a maintenance bond in the amount of $65,674.05. 12 . . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. NOVEMBER 26. 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 13 Nielsen said he would like to make sure the outstanding bills are current and lien waivers are acquired. Gagne said this procedure should be automatic. Gagne moved. Stover seconded. to adopt RESOLUTION NO.. 130-90 "A Resolution Reducing the Escrow Account for Fox Run West to $27.000.00. subject to submission of a maintenance bond in the amount of $65.674.05." Motion carried - 4/0 on a roll call vote. ACCEPTANCE OF IMPROVEMENTS - SWEETWATER AT NEAR MOUNTAIN. 4TH ADDITION APPLICANT: LUNDGREN BROS. CONSTRUCTION LOCATION: SWEETWATER - 4TH ADDITION RESOLUTION NO. 131-90 Nielsen said the streets have been brought up to grade and a guarantee bond has been received from the contractor. Norton recommended accepting the streets. Gagne moved. Stover seconded. to adopt RESOLUTION NO. 131-90 "A Resolution Accepting the Street Improvements at Sweetwater at Near Mountain. 4th Addition." Motion carried - 4/0 on a roll call vote. WATERFORD III A. Review amended contract for tax increment financing bY and between the City of Shorewood and Sherman-Boosalis. Whittaker said Trivesco will not sign the contract as is. The City received a new proposal from them today (Nov. 26). A similar proposal was discussed a year ago but the Staff thought the Developer would not agree to it. The new proposal has less risk for the City. If the original contract is not signed by Dec. i. 1990 the agreement is null and void and the City is free to negotiate new terms. B. Review amended assessment agreement between the City of Shorewood and Sherman-Boosalis. Froberg said the alternative security agreement is a contract between the developer. the City and a bank. The bank provides a line of credit for the developer to draw on. There is no interest charged until the money is drawn. This money is also available to the City to complete the project if the developer defaults. Gagne asked Froberg what would happen if there is no contract by Dec. 1. Froberg said the City will no longer be obligated. Gagne asked Froberg about the Old Market Road/T.H.7 intersection. . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. NOVEMBER 26. 1990 CICIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 14 Froberg said the original contract calls for the City to cooperate with the developer to install an intersection and seek financing. Froberg said the proposed assessment agreement stated the multiple family homes to have a value in the $200.000 range. Trivesco said their exposure was too high and wanted lower housing values. Gagne said the Council should have Bob Thistle's opinion. Whittaker said Thistle always reviews the financial agreements. However. he may not be able to do this by Dec. 3. Gagne moved. Brancel seconded. to table the Waterford III contract and assessment agreement to the Dec. 10 meeting. Motion carried - 4/0. REVIEW CONTRACT FOR 1990 AUDIT SERVICES Stover moved. Gagne seconded. to accept the services of Abdo. Abdo & Eick as auditors for 1990. Motion carried - 4/0 UPDATE ON PROPOSED RECYCLING SERVICES FOR 1991 The Council review the recycling proposal for 1991. The final contract will be available at the Dec. 10th meeting. REVIEW ALTERNATIVES FOR CHURCH ROAD IMPROVEMENTS AND CONFIRM THE PUBLIC HEARING ON THE PROPOSED IMPROVEMENT FOR DECEMBER 10. 1990 AT 9:00 P.M. Whittaker reported that the residents are reluctant'to grant easements for the project. The City will have to pay for all the resident's easements or none. This will add $39.000 to the cost of the project. There will be no extension of Maple Lane. A cul-de-sac will be added. The Public Hearing will be held on Dec. 10. MA TIER FROM THE FLOOR LMCD Rep. Rascop told the Council the LMCD offices were being moved to the Wayzata Bank Building. He asked Brancel and one staff member to attend the LMCD meeting on Dec. 12th. Planner Nielsen will attend with Brancel. He asked the Council if they had questions on the City's part of the LMCD budget. Whittaker said the City would like to see the LMCD change their deadline for budget approval. He said it is difficult for the City to approve the LMCD budget before they approve their own. Rascop said the LMCD would have to ask the legislature to do this and they do not want to return to the legislature with more requests. :1.4 . . COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 15 CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY, NOVEMBER 26, 1990 Haugen asked for matters from the floor three more times. There were none. STAFF REPORTS A. ADMINISTRATOR'S REPORT 1. Annual Appreciation Party Whittaker said the party will be Dec. 14, 1990 from 4-8. The invitations will be sent Tuesday, Nov. 27, 1990. 2. Council Workshop with newly elected officials, December 3, 1990, at 7:30 P.M. Brancel said she thought the entire staff would be meeting with the new Councilmembers. Councilmember Elect Lewis said he thought the staff could provide the information, but would attend the meeting. Councilmember Elect Dougherty said he would attend. Haugen said the Workshop will be held to inform the new members of current Council business. Dougherty and Lewis asked when they will be able to meet the staff. Whittaker said any day they choose. 3. Contract for assessing services, 1990-1991 Stover moved, Gagne seconded, to approve the contract for assessing service with Rolf Erickson, for 1990-91. Motion carried - 4/0. BREAK 11:30 TO 11:40 COUNCIL REPORTS. A. MAYOR HAUGEN B. COUNCILMEMBERS Gagne said he talked to Woody Love of the Watershed District. Love walked the Glen Road property and said there would be no standing water unless there was a lot of rain. There are 12 trees and 9 are already dead. He though the City would not have to spend $1500 to analyze the report again. Norton said Pond 2 was never suppose to hold water. Norton said he would revise the feasibility report and have the Watershed District review it. ADJOURNMENT SUBJECT TO THE PAYMENT OF CLAIMS 15 . CITY OF SHOREWOOD REGULAR CITY COUNCIL MEETING MONDAY. NOVEMBER 26. 1990 . COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 16 Checks issued since November 9, 1990 GENERAL AND LIQUOR FUNDS- ACCOUNT NUMBER 00-00166-02 LIQUOR $59,518.02 TOTAL CHECKS ISSUED Checks for Council approval Checks No. 5714-5750 CHECK REGISTER FOR NOVEMBER 20. 1990 PAYROLL Checks no. 204612/204679 LIQUOR $3.180.15 RESPECTFULLY SUBMITTED Katie Snyder Recording Secretary ADMINISTRATOR/CLERK LAURENCE E. WHITTAKER 1.6 GENERAL $11. 371. 46 $70.889.48 TOTAL CHECKS FOR APPROVAL $ 74,872.83 TOTAL CHECK APPROVAL LIST $145,762.31 GENERAL $15.636.29 TOTAL CHECKS ISSUED $18.816.39 MAYOR JAN HAUGEN CITY OF SHOREWOOD · REGULAR CITY COUNCIL WORKSHOP MONDAY, DECEMBER 3, 1990 C.CIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 1 M I NUT E S 7:00 P.M. INTERVIEW CANDIDATES FOR THE PLANNING COMMISSION 1. Barbara J. Martin, 20185 Excelsior Blvd. 2. Jake Miller, 20270 Excelsior Blvd. 3. Kirk Rosenberger, 20960 Ivy Lane Gagne moved, Watten seconded, to appoint Kirk Rosenberger to the Planning Commission to fill the vacancy left by Pat Mason. Motion carried - 3/2 (Brancel and Haugen) . Mayor Haugen asked the Administrator to send letters thanking each individual for applying for the positions. Planner Nielsen will notify Mr. Rosenberger, tonight (Dec. 3, 1990), that he has been appointed, so he can attend the Dec. 4th Planning Commission Meeting. 7:55 P.M. CONVENE REGULAR CITY COUNCIL WORKSHOP Mayor Haugen called the City Council Workshop to order at 7:55 P.M. ROLL CALL Present: Mayor Haugen, Mayor Elect Brancel, Councilmembers Gagne, Stover, and Watten, City Administrator Whittaker, City Attorney Froberg, City Planner Nielsen, City Finance Director Rolek, City Engineer Norton, Engineer Joel Dressel of OSM, Councilmembers Elect Lewis and Dougherty. POSTPONE REPAIRS ON BADGER PARK SHELTER City Administrator Whittaker notified the Council that the repairs to the Badger Park Shelter would have to be postponed until spring. The Council agreed. ORDER LETTERHEAD FOR 1991 Whittaker said the City will be ordering new letterhead, cards and name plates for the new Mayor and Councilmembers. He asked the Council whether they wished to continue having the Mayor and Councilmembers' names on the stationery or just use City of Shorewood. Gagne said to keep it the same and the Council agreed. SET DATE FOR 1991 ANNUAL MEETING Whittaker asked if the Council wanted to continue to hold the Annual Meeting on Jan 14, 1991' Mayor Elect Brancel said she would like the date to remain the same. 1 . CITY OF SHOREWOOD REGULAR CITY COUNCIL WORKSHOP MONDAY. DECEMBER 3. 1990 C~CIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 2 Mayor Haugen and Councilmember Gagne advised the new Mayor and Council members that all annual appointments are made at that time. REVIEW CITY COUNCIL ROLE. PROJECTS AND RESPONSIBILITIES WITH NEWLY ELECTED COUNCILMEMBERS STAFF REPORTS FINANCE DIRECTOR ROLEK BUDGET Finance Director Rolek said the 1991 Budget has been approved and the final report will be available at the end of the year. The salaries will be approved next week. Councilmember Elect Lewis asked if salaries were the only item pending? Rolek said yes. AUDIT Councilmember Stover asked Rolek about the audit. Rolek said the City is in the third year of an audit contract with Abdo, Abdo & Eick. The auditors will be in the Shorewood offices for preliminary work on Wednesday. They will audit Shorewood in March and have the final report about one month later. OTHER Rolek also said the staff is entering data into the new computer. The Department should be automated by the first of the year. He has been talking to Trivesco and Sherrnan-Boosalis, almost daily, concerning the Waterford III development. CITY PLANNER NIELSEN COMPREHENSIVE PLAN Nielsen said the current Comprehensive Plan is ten years old and he is reviewing it with the Planning Commission. The Council and Planning Commission had a joint session to discuss Environmental issues. The Planning Commission has also discussed the Transportation issues. He said Community Facilities will be the big issue in the 1990's. Land use is no longer the issues it was in the 1980's. RENTAL HOUSING CODE The Rental Housing Code is a new addition to the City Ordinances. A committee is now reviewing this Code. They will meet once in December and once in January before they make their report to the Planning Commission. BUILDING Nielsen said the last three years have been the busiest years for building in Shorewood. 2 CITY OF SHOREWOOD ~ REGULAR CITY COUNCIL WORKSHOP MONDAY. DECEMBER 3. 1990 C~CIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 3 Lewis asked how close to the maximum capacity is Shorewood. Nielsen said most of the vacant land is in the Western end of Shorewood, where the lot size is larger. He said land is limited. Mayor Haugen said the Ordinance book will show the zoning of the underdeveloped areas. Lewis asked Nielsen if his department was able to handle the volume of building during this growth phase? Nielsen said they could. Lewis also asked if he had added any new people. Nielsen said a full time building inspector was hired last year. He said the City has been responding instead of planning for Shorewood since the plan was last reviewed. Stover asked if Nielsen had seen an increase in remodelling of residences? He said there is an increase, however, remodelling does not generate fees like new construction. Gagne said. he thinks there is more building on questionable land as land becomes scarce. Stover and Haugen said the Shorewood Wetland Ordinance was very good. Councilmember Watten said there is a demand for services from new residents and a demand to subdivide the larger tracts of land. Councilmember Elect Dougherty asked Nielsen if he had any specific projects he would like to accomplish? Nielsen said he would like to upgrade the City Hall and Public Works Sites in the next five years. He said the City is not setting a good example at the current locations. He would also like to see the Parks developed. He said the bond referendum will indicate residents' interest. If the referendum is not passed. the development of the parks will be a challenge. Dedication fees alone will not continue to sustain their development. Haugen stated that. only recently. have the Parks been funded by the general fund. She also said that Mark Koegler was hired as Park Planner and has expertise in park referendums. Lewis and Dougherty both felt the development of the Parks is a worthwhile goal. CITY ENGINEER NORTON Norton said he is working on a comprehensive water plan. DRAINAGE PROJECTS 1. SHADY HILLS This district is the first Shorewood Special Taxing District. Dougherty said he has received many phone calls about this project. Lewis asked about the drainage problem involved. Norton said Rev. Almquist of Shady Hills Circle asked the City's assistance in solving this drainage problem. The water from the surrounding area was running through his house. Subsequent examinations found that the drainage pipe had deteriorated to the point they need replacement. 7 o . CITY OF SHOREWOOD REGULAR CITY COUNCIL WORKSHOP MONDAY. DECEMBER 3. 1990 C~CIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 4 Haugen said this is the first year the City has used Special Taxing Districts. Nielsen said that there was initially opposition to the project, but as the proposal was refined there has been little opposition. Stover said the Council has always taxed the areas that have the problem. The new developments have already paid to prevent drainage problems through special assessments. Lewis said that past planning mistakes have allowed houses where they should not have been. Nielsen said , in this project, the drainage system is worn out. 2. GLEN ROAD Norton said there has been no final approval from the Watershed District for this project. Haugen and Gagne both indicated the Council should not petition the Minnehaha Creek Watershed District for a drainage project in the future. We should design it and request a permit from them. Norton said the Watershed was used because various cities and agencies were involved. The City thought the Watershed District could handle the whole project more effectively. Lewis asked if the Special Taxing District had been established. Norton said it has. 3. GRANT LORENZ Norton said this is the third taxing district. He said this is the largest drainage district. Haugen said the new Council will need to make decisions on this project. Lewis asked about the Comprehensive Water Plan. The Engineer is working on an update of the Water System Plan. Gagne said developers are not required to connect to a water system. Because of this requirement, twelve new wells are going to be installed in a new development. PUBLIC WORKS SITE Norton is working on the grading plan and salt-sand building. OTHER Previously, Shorewood has not be eligible for direct MSA street funds. The City now has more than 5000 residents and has qualified for funds. However, the streets must be brought up to State standards. This includes urban design with curb, gutter and storm sewer. Lewis asked if the funds can accumulate? Norton said they 4 CITY OF SHOREWOOD ~ REGULAR CITY COUNCIL WORKSHOP MONDAY, DECEMBER 3, 1990 ~NCIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 5 can accumulate for three years. Haugen said the Council wants to use these funds to redo the service road from Vine Hill to Covington Road. Resident - Bob Snyder asked about the $200,000 from the State for the road development at Waterford III. Norton said the City can still apply for this money. The project must be under contract by June 1, 1991. These are not MSA funds. Norton said the third year of the I & I inspection will be finished by the end of the year. There has been a marked reduction in the flow. The flow readings have been cut in half. He said, in the long term, the City can take the data from the I & I analysis and petition the MWCC for a rate reduction. Haugen said she has been discussing the Shorewood sewer rate with the MWCC for 16 years. The MWCC said that Shorewood's capacity will reach 25,000 people. Since Shorewood has no water system, it has been hard to prove to the MWCC that the flow rate is far less than the City is being charged for. Nielsen said there are other repercussions. The MWCC can place a moratorium on new building because of the sewage flow. Haugen said the City has hired a liaison to the MWCC for a one year trial. He has been hired by 25 other cities. Dougherty asked Haugen the best way to handle the situation. She said their idea has been to monitor water meters in the Waterford development and project this throughout the rest of the City. Whittaker said they could also meter the sewage flows; but there are many interconnections and this could be expensive. Haugen said she would be glad to assist with this problem. ATTORNEY City Attorney Froberg informed the Council of the new developments in the Waterford III project. Sherman-Boosalis has not provided a letter of credit to the City. Froberg said the City no longer has an obligation to Sherman-Boosalis as of Dec. 1st. The City is still obligated to the 1985 contract with Trivesco, which states that the City will cooperate in building an intersection at Old Market Road and HwY. 7 and try to find financing. Lewis asked Froberg is there is a time limit on this contract. Froberg said the contract obligates the City until the Waterford III development is completed. Lewis also asked how Sherman-Boosalis became involved. Froberg informed him that Sherman-Boosalis purchased the land from Trivesco. However, there has been no closing on the property. Froberg further explained that the proposed development is not the kind of development that Trivesco usually does. They will not guarantee $200,000 homes at Waterford III. Froberg said Trivesco will provide a letter of credit if they can get some concessions from the City. The City did not feel they can make these concessions. Trivesco proposes to buy $950,000 of revenue bonds the City issues. These bonds are not supported by general taxes but by the incremental tax revenue generated by the development. Lewis said the City should not jump into another agreement. ~ J CITY OF SHOREWOOD · REGULAR CITY COUNCIL WORKSHOP MONDAY, DECEMBER 3, 1990 C~CIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 6 He also asked who Springstead & Co. was. Gagne said Springstead is the City's financial advisor, consultant. Froberg also said the City has incurred costs related to the proposal with Sherman-Boosalis and before any bonds are sold a letter of credit should be provided to the City to pay these costs. Gagne asked Froberg's opinion on the new proposal from Trivesco. Froberg said the money expended on this project will eventually be part of the cost of the project; it will be hard to sue Sherman- Boosalis for the costs. He said Trivesco wants the intersection because the land will be worth more. They will share the financial burden with Sherman-Boosalis, but want a say in the development. Haugen said Trivesco will not build $250,000 homes. Resident - Bob Snyder asked the costs of the intersection. Froberg said $1,400,000. Snyder also asked the cost for Engineering and Administration. Norton said the Engineering costs are for plans and specifications based on 6% of construction costs plus an hourly rate for inspection. He said the plans and specs. are 1/2 finished because Sherman-Boosalis did not further their half of the money. The total Engineering cost will be $160,000; this is 16% of the project. The Administrative cost will be $59,500. Snyder asked if this was above the $1,400,000. Haugen said no. it was included. Snyder also asked if the bonds will be tax exempt. Whittaker said he was not sure, but the 10% interest Trivesco proposes would be high for a bond that is tax exempt. Lewis asked Froberg how long it will take to redo this proposal. Froberg said he has advised the Trivesco attorney that their current proposal is interesting but not adequate for the City. Dougherty said the City should attempt to renegotiate other aspects of the agreement at this time. Rolek said certain costs of issuing revenue bonds will cost less than a general obligation bond. Nielsen said the original agreement with Trivesco indicated a Fall of 1991 time frame. Whittaker said the City has until June of 1991 to perform on this TIF district or it reverts to the new TIF law. Dougherty asked how much time has been put into this project and if Trivesco is willing and able to spend $950,000 on this project. Froberg said there is no contract right now, only a proposal. Dougherty felt this was just more delay on the part of Trivesco and Sherman-Boosalis. OTHER Froberg tOld~o~~ncil he also advises the City and prepared resolutions. nas not lost a law suit in the five years he has been City Attorney. ~ is appealing ~e law~u~t at the present time. ;t ws,72<2?/J r I!- ~y /l'55~~"" c"q-' Dougherty said he appreciated the forum and asked if the staff had any questions of them. 6 CITY OF SHOREWOOD ~ REGULAR CITY COUNCIL WORKSHOP MONDAY, DECEMBER 3, 1990 C~CIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 7 Nielsen asked what Dougherty and Lewis did for a living. Dougherty said he is a commodity trader and owns his own firm. He also owns a grain elevator. Lewis said he owns a precision metal fabricating business. ADMINISTRATOR Whittaker said he has compiled much of the information Lewis and Dougherty had requested. He said the Personnel Policy has not been recodified and will take time to go through. The Code Book has been codified but 15 Ordinances have been added since the first of the year. Haugen said Associated Consultants do not want to provide $1 Mill. in insurance for the iron removal project. Lewis asked if other companies provide this amount. Whittaker said the large firms do but their is no Ordinance requlrlng it. He said the insurance should cover the cost of the project or the City's liability. Gagne asked if Whittaker had checked Associated Consultant's references. Whittaker said he was working on it. Resident - Louise Bonach asked the terms for the Planning Commission members. Whittaker said it is the same as the Park Commission, 3 years. Whittaker said Rolek will give the new members copies of last year's audit. He also said the League of Cities has a conference for newly elected officials in February. He said it is very useful to attend this. Whittaker listedtheprojects he is involved in and things he would like to see accomplished. 1. The reorganization of personnel, their job descriptions and personnel policies. 2. Organization of central files. 3. Software to index the minutes. 4. Organization of archives. 5. The Park Referendum, which he feels is the biggest project. 6. Remodeling of the City hall site. 7. He would like to continue to work with Excelsior and adjacent communities to combine services. 8. The MSA project. The city must use or lose this money within three years. In the next year the City must come up with a project. The MSA money is set aside in a State fund for these projects. Whittaker said the Church Road Public Hearing will be held on Dec. 10th. Haugen said she would like to see an orientation like this for all new Councilmembers. 7 CITY OF SHOREWOOD ~ REGULAR CITY COUNCIL WORKSHOP MONDAY. DECEMBER 3. 1990 C~CIL CHAMBERS 5755 COUNTRY CLUB ROAD PAGE 8 Whittaker said he would arrange a tour of City facilities for the new members if they would like one. They said they would like to and will arrange one with Whittaker. Mayor Haugen asked the Council to consider the Administrator's need for an Executive Secretary and the reorganization needed to accomplish this. They deferred action on this for Whittaker's recommendations. ADJOURNMENT Brancel moved. Gagne seconded. to adjourn the City Council Workshop at 10:50 P.M. Motion carried - 5/0. RESPECTFULLY SUBMITTED Katie Snyder Recording Secretary 8 MEMO TO: FROM: DATE: RE: . . MAYOR Jan Haugen COUNCI L Kristi Stover Robert Gagne Barb Brancel Vern Watten CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD . SHOREWOOD, MINNESOTA 55331 · (612) 474-3236 MAYOR AND COUNCILMEMBERS AL ROLEK DECEMBER 3, 1990 TRANSFER FROM LIQUOR FUND TO GENERAL OPERATING FUND The 1990 General Operating Fund Budget included a transfer from the Liquor Fund in the amount of $20,000. This amount represents a portion of the liquor store profits earned in 1988. It has been the practice of the city council to include all or part of liquor fund earnings in the ensuing year's budget and to transfer these funds at the end of the budget year. Therefore, I recommend that the city council authorize the transfer of $20,000 from the Liquor Fund to the General operating Fund. Should you have any questions regarding this transfer, please call me prior to the council meeting. ~~,if A Residential Community on Lake Minnetonka's South Shore _,_,.___:..........._,.r.... '.' ~""-,-...~..-.--_.._.. .-' J, . DATE: TO: FROM: SUBJECT: November 26~ 1990 . L- \./ -~(~).V NOV 2 8 ISQ'; ( "-- HENNEPIN - Laurence Whittaker, Shorewood City Clerk~ . I Donald F. Monk, Director of Assessments ~ 1991 Local Board of Review Date i-- -...-.. Monday Day of the Week April 15, 1991 Date Minnesota Law requires that I, as County Assessor, set the date for your Local Board of Review meeting. After reviewing previous meeting days and your suggestions of last year, the above date was selected. I sincerely hope that it is agreeable with your council. As there must be a quorom~ I would suggest that an informal review.of your members with a request that they mark their calendars would be appropriate. Please confirm the date set out or call Tom May at 348-3046 with your alternative date by January 11, 1991, so that our printing order can be completed on time. We suggest starting times of 6:30~ 7:00 or 7:30 p.m., but will discuss it with you if you wish a different time. Your early completion and return of the attached tear off str-:p will be appreciated and we will send your official notice for posting as required by law. Please return to JoDee Nelson, A-2103 Government Center, Minneapolis, MN 55487. ----------------~--------------------------------------------------_._----- CONFIRMATION Muni ci pa 1 ity: Date: Time: Place: Confirmed by For selecting meeting dates in future years~ the following wi 11 be hel pful :+f: 6,6 ~. ',., . . . MAYOR Jan Haugen COUNCI L Kristi Stover Robert Gagne Barb Brancel Vern Watten CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD . SHOREWOOD, MINNESOTA 55331 · (612) 474-3236 MEMO TO: MAYOR AND COUNCILMEMBERS FROM: AL ROLEK DATE: DECEMBER 7, 1990 RE: AMENDMENTS TO THE 1990 BUDGET The staff customarily recommends amendments to the current annual budget at this time of the year to reflect unbudgeted expenditures and budgetary shifts which have been authorized by the City Council throughout the year. Attached for your consideration is a listing of these items for 1990. The city Council also approved the use of defeasance funds 'for the purchase of land for the public works site, the removal of fuel tanks, the irrigation of the Freeman Park ballfields, and to shore up the 1974 Sewer Bond issue. These funds need to be officially transferred from the bond defeasance account. In looking at the amendments, it is apparent that a considerable amount of money has been authorized for park items, such as a park planner and the addition of a little league ballfield, etc. These costs were originally allocated to the Park Capital Improvement Fund. However, this fund, even after the transfer from the bond defeasance fund, is quickly being depleted. The Council may wish to amend the park budget to accommodate these expenditures and to maintain the integrity of the Park Capital Improvement Fund. I would, therefore, recommend that the City Council approve a resolution amending the 1990 General Operating Fund budget and approving the transfers from the bond defeasance fund. I further recommend that the Council amend the park budget to accommodate the expenditures for the park planner and to transfer an additional $10,000 to the Park Capital Improvement Fund from the Bond Defeasance Fun to finance the irrigation project for the little league ballfield. If you should have any questions relating to these recommendations, please contact me prior to the meeting on Monday night. A Residential Community on Lake Minnetonka's South Shore JC!- . . RESOLUTION NO. A RESOLUTION AMENDING THE 1990 GENERAL OPERATING, WATER AND SEWER FUNDS AND APPROVING THE TRANSFER OF FUNDS FROM THE BOND DEFEASANCE FUND TO THE GENERAL OPERATING, PARK CAPITAL IMPROVEMENT AND 1974 SEWER IMPROVEMENT BOND DEBT SERVICE FUNDS WHEREAS, the Shorewood City Council has authorized certain expenditures during 1990, as listed on Attachment A, and, WHEREAS, such expenditures were not included within the adopted 1990 General Operating, Water, and Sewer Fund Budgets, and, WHEREAS, it has been the practice of the City Council to amend the budgets for such expenditures, and, WHEREAS, the City Council has authorized the use of funds from the Bond Defeasance Fund to finance certain expenditures, as listed on Attachment A, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shorewood that: 1. The 1990 General Operating, Water, and Sewer Fund Budgets are hereby amended in the amounts listed on Attachment A. 2. Funds be transferred from the Bond Defeasance Fund to the General Operating, Park capital Improvement, and 1974 Sewer Improvement Bond Debt Service Funds as listed on Attachment A. ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 10th day of December, 1990. Jan Haugen, Mayor Attest: Laurence E. Whittaker City Administrator/Clerk Roll Call Vote: Ayes: Nays: . . Proposed Amendments to the 1990 General Operatinq Fund Budqet Purpose Milfoil Inspection-Christmas Lake Senior Housing Consultant Council and Planning Commission Recording secretary Codification of City Code Water Treatment Plant Feasibility Appraisal of City Properties Computer Purchase- Originally in 1989 Budget Computer contingency Costs, to date Purchase of Pub. Works site Underground Tank Removal Recycling Awards Park General supplies-Sand, Seed, etc. Park Planner Sewer Assessment-City of Chanhassen Account Amendment Amount 10-5135 10-5135 10-5103 10-5135 10-5601 10-5635 10-5338 10-5533 10-5741 10-5762 60-8062 61-8262 10-5762 10-6160 10-6163 10-6735 10-6926 10-6934 61-8252 Total General Operating Fund Amendments Total Water Fund Amendments Total Sewer Fund Amendments Total 1990 Budget Amendments Transfers From Bond Defeasance Fund To General Operating Fund - Public Works site - Underground Tank Removal - Bond relief - Freeman Park Irrigation - Little League Field Irrig. To 1974 Sewer Bond Fund To Park Cap. Impr. Fund Total Transfers $ 634 5,000 (3,000 ) 3,000 (1,200) 1,200 2,000 3,780 1,348 9,500 4,000 6,000 2,000 165,000 10,000 500 8,000 12,000 3,345 219,762 4,000 9,345 233,107 $ 165,000 10,000 65,000 51,000 10,000 301, 000 . ~- . . '- , ~U< Ii~. 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SHOREWOOD, MINNESOTA 55331 · (612) 474-3236 Planning Commission, Mayor and City Council Brad Nielsen 27 November 1990 Fox, George - Setback Variance 405 (90.25) In October of this year Mr. George Fox was directed by this office to remove or relocate a gazebo which had been built without a permit and in violation of setback requirements for the Amesbury P.U.D. The property in question is located at 4905 Sussex Place (see Site Location map - Exhibit A, attached). In a letter dated 19 October 1990 (see Exhibit B), Mr. Fox requests approval of a variance to leave the structure in its current location. Exhibit C shows the location of the gazebo relative to the owners residence, his lot and the adjoining common space for Amesbury. As can be seen the gazebo extends off of Mr. Fox's unit lot and into the common area approximately 12 feet. Relative to his failure to obtain a building permit, the applicant explains that it was his understanding that it was only necessary to obtain the approval of the Amesbury architectural review committee (see Exhibits D-1 and D-2). Apparently the committee itself was unaware of the requirement for a building permit from the City. They are now aware of the requirement and presumeably will advise future applicants to obtain appropriate permits from the City. Both Mr. Fox and the architectural review committee based their actions on the provisions of Article III of the protective covenants for Amesbury, which grant property owners the A Residential Community on Lake Minnetonka's South Shore 9 . . Re: Fox, George Setback Variance 27 November 1990 right to encroach into the common areas with such features as "fireplaces, roof overhangs, air conditioning compressors, flower boxes, decks, balconies, and other appurtenances which are part of the original construction of any living unit or which are added pursuant to the provisions of Article VIII hereof... " . While it is clear that some encroachment into the common space was intended by the covenants, they do not specify the degree of encroachment to be allowed. According to the developer of Amesbury, this is left to the discretion of the architectural review committee. Based upon our review of the covenants, the files of the original P.U.D. and past building plans for homes in Amesbury, it is the interpretation of this office that the unit lot lines are the setbacks for structures and that buildings are allowed to be built right up to those lot lines. Furthermore, features such as those listed in the paragraph above are allowable encroachments up to four feet into the required setback area (in Amesbury's case - the common area). Both the City Attorney and I agree that a structure with walls and a roof is not what was intended by the covenants. Consequently the applicant requests a variance to allow the gazebo to encroach into the setback area 12 feet. ISSUES AND ANALYSIS A. Setback Variance. Section 1201.05 Subd. 2 of the Shorewood City Code sets forth criteria for granting variances. In addition the City Attorney provides us with the statutory requirements in an excerpt from his report on variances, dated 3 November 1987: "Although the City Code also provides certain criteria for considering variance . requests, the State Legislature has set certain standards which must be observed when considering an applicant's request for a variance to any ordinance. These standards are contained in M.S. 462.357, Subd, 6(2), and are quite specific in nature. The primary consideration is that variances should be granted only in instances where strict enforcement of the ordinance would cause "undue hardship" because of circumstances unique to the individual property under consideration and where it is demonstrated that such actions will be in keeping with the spirit and intent of the ordinance. The statute goes on to define "undue hardship" as meaning: 1. The property in question cannot be put to a reasonable use if used under conditions allowed by the official controls. - 2 - . e Re: Fox, George Setback Variance 27 November 1990 2. The plight of the landowner is due to circumstances unique to the property not created by the landowner. 3. The variance, if granted, will not alter the essential character of the locality. It further states that: "Economic considerations alone shall not constitute an undue hardship if reasonable use of the property exists under the terms of the ordinance. " In order to qualify for the granting of a variance, the applicant must show that his situation meets all three of the elements set forth above. " In reviewing variance requests one of the first things we look at is can the proposed structure be built without a variance. In this case the answer is probably not. While there is some buildable area on the north side of the unit lot, the ground drops off severely there. Also several trees would have to be removed. Even if the structure could be located on the north side, it would be visible to more residents than the current location. The next question is has the owner already made reasonable use of the property. Since there are any number of homes, most in fact, in Amesbury which do not have gazebos, the answer is yes. Most of the applicant's case has to do with the fact that the structure blends well with the existing structures and its surrounding setting. To illustrate, he provides a photograph showing the view from the street in front of his home. Having inspected the site after leaves were down, the building is still considered to be well screened from adjoining properties. Based on the preceding the applicant's request does not comply with the criteria for granting variances. B. Alternative Solution. Although the applicant's request does not meet the criteria for a variance, certain aspects of it merit further consideration. Having viewed the structure and discussed it with other Amesbury residents, including last year's president of their association, and former Planning Commissioner, Pat Mason, the gazebo reflects a recent trend toward enclosed outdoor recreational space. This trend is not exclusive to Amesbury. It is becoming almost commonplace on single-family homes to include some kind of three season porch, gazebo, etc. Unlike Amesbury, however, single- family lots typically have more buildable area than what lies immediately beneath the structure. Having been developed nearly 20 years ago, the original P.D.D. obviously did not anticipate such a trend. - 3 - . . Re: Fox, George Setback Variance 27 November 1990 If structures such as Mr. Fox's can be considered appropriate, one way to accommodate them is to amend the zoning which regulates the property. In a P.D.D. that can be done in either of two ways: 1) replat the property to enlarge the unit lots; or 2) amend the documents which control the property. The City Attorney advises us that the first approach is so complicated as to be infeasible. Apparently the Amesbury protective covenants include a provision for making changes to their rules. This type of change requires a minimum of two~thirds of the homeowners to consent to a change involving rights to use of the common area. This amendment would then be submitted to the City for approval. Changing the rules would not only be a benefit to Amesbury residents who may wish to add accessory space to their homes, it would benefit the City by clarifying the current rules relative to allowable encroachments. C. Amendment Considerations. If the City is willing to consider an amendment to the current Amesbury development regulations, there are certain factors to consider. First, the Zoning Ordinance requires that a setback be maintained around the perimeter of a P.D.D. equal to the setbacks which were required for the original zoning of the property. In the case of Amesbury this setback is 50 feet. It is not recommended that this requirement be changed. With respect to Mr. Fox's gazebo, it is 56 feet from the westerly boundary of the Amesbury plat. While the perimeter setback impacts property surrounding the P.D.D., residents within the development are impacted by the proximity of structures to one another and perhaps the size of accessory structures. The issue of proximity may already be resolved by our current P.D.D. provisions. Section 1201.25 Subd. 4.m.(3) states: "No building within the project shall be nearer to another building than one-half (1/2) the sum of the building heights of the two (2) buildings, giving due consideration to solar access." It is suggested that any amendment to the covenants include maximum allowable encroachment of 15 feet, but not to exceed this requirement. It is further suggested that a limit be placed on the area of the proposed structure. As a point of reference, 150 square feet would accommodate approximately a 12' x 12' structure. RECOMMENDATION While not appropriate as a variance, Mr. Fox's request warrants consideration as an amendment to the current P.D.D. restrictions. In discussing this matter with his neighbors, he indicates considerable support. The process required to amend the covenants will confirm whether Amesbury residents themselves want such structures within their development. - 4 - . . Re: Fox, George Setback Variance 27 November 1990 The City Attorney suggests that the Amesbury Homeowner's Association's legal counsel prepare the proposed amendment to the protective covenants and submit them to the City Council for review and approval. Once approved by the City, the amendment should be executed by the Amesbury residents and properly recorded with Hennepin County. Mr. Fox's gazebo should be allowed to remain pending recording of the amendment. A deadline of 180 days is suggested for the amendment to be recorded. BJN:ph cc: Larry Whittaker Glenn Froberg George Fox Robert Daugherty Dan Lewis Duane Joseph - 5 - ,--,- ---, "'-'-'-"---.- -_._._..,.~~-,.--~-.,,~_..~.--"-"" "-~~"---""""'-"""""_.'-"-"'-",,,,"-'-'-'" L'-"!: N8g.45' !S.W ~ 392. oS - StiNSET-- -L-.~ - -- L/ ... "" r~ (~) rf1-: 7....sl 90 ""'/S I '", W' . .. (51\ '" ';'.: ~ 2 ',-;'71';.- ( 52) 90 ( ~. ~ ~ ~ 3 / "5 Ii r~(J1I! AIlJ/lJ1I! f 2 /.(68) N~,.+ h \ .l=~' sag' 2S' 12'E 490.24 'S 208 #.. f I "''l'''~ ... -&2., :;'-'._ ~~ .\ "~ 2 ., 8~ , ~ 140 PT OF LOT 52 ( 17) ~ 2624,34 RES ~ Exhibit A SITE LOCATION Fox - setback variance of C-.:, I:. . . GEORGE FOX, 4905 SUSSEX PLACE. SHOREWOOD, MINNESOT A 55331 . 612-47~.1252 CONSUL 1 A~1 Oct. 19, 1990 To: City of Shore~ood From: George Fox 4905 Sussex Place. Shcrewood, ~~. 55331 Subject: Request for a Side-Lot Variance: Due to my lack of k~owledge co~cerning the contents of our City Ordinances we have placed ourselves in an embarrassing situation. The follo\':in9 points preser,T c chronDlogical explanation of what led us to our preSEr,T dj lerr,"',3. In July of this year my ~jfe and I decided we wanted to screen in a portion of our rear dec~ in order to enjoy more mesquito free evenings outdoors. ~e concluded the beST and most effective way to achieve this would be to add a Gazebo to the existing deck an~ partially over-hang it on the side and rear. We contacted a contractor, SOmeO:1e \'-'ho spec i a I i zes in Gazebos, the Outdoor Des i gn Company of Chanhass€s, a very reputable builder to bui Id and instal i it. The Gazebo y,'cs COT:ip I eted the end of September. Early in October we were contacted by ~r. Joe Pazandak, Sui Iding Inspector of the City of Shorewood and were informed we were in violatioR of two stipulations in the City Ordinance. One, we had not requested and purchasee a bui Iding permit prior to constructio~ and t~o, o~r Gozebo exceedsd the side-lot set-back restrictions by approzimately 5 feet. We were told by ~r. Pazandak we had 30 da~i to remove or re-locate the structure. On the matter of the bui Iding permit, it was simply an oversight on our part. Had we realized a permit would be required perhaps this problem would have not occured. ~e are very pleased with the contractors work a~d the final results make an attractive addition to our hQ~e. The failure not to seek a permit certainly was not willful and we wit I gladly secure one now and pay any penalities. ~e felt we did all that was required of us. We requested penmission from the Amesbury Association to construct the Gazebo on that location, see letter attached, we reviewed the Association Declaration of Cove;lcnts, Condiiior.s and Restric1ions which states under Article III-c "Ri ght of overhang (;;Ij encrocchrnent of irr,prove'nents on a lot wh i ch ere not inconsistent ",.jih the use of the CCY.ilmon area by me:r.bers" and Exhibit B APPLICANT'S REOUEST LETTER Dated 19 October 1990 Section III-~The right of the owner of eac~t to an exclusive easement in the com~on area to areas occupied by fireplaces, roof overhangs, air conditioning compressors,flower boxes, decks, balconies and other appurtenances which are not part of the original construction of any living unit which are added pursant TO the provisions of Article J II". In addition we reviewed this with our neighbors, one of whom is an attorney and also with the McNulty Construction Co. the developers of Amesbury. AI I parties agreed that we could locate it on its present location, a portion of which is on association property. . In view of the above please find enclosed an Application for a Side- Variance, a pJotdrawing showing the present structure, a copy of a letter frcri the association giving approval and photos taken from the front of the association property. These photos were taken several days ago and as you can see the addition is almost lnvisable. As a matter of fact, we have landscaped the side and rear and maintain it for the association. In considering the variance request please examine and consider the follol':i ng; The permit violation is regrettable and certainly was not wi Ilful. Perrnissio;, was received fro,;. the association and consultations \'.'ere held with neighbors and the developer of the property, the McNulty Construct i on Co., both of whon: rev j e",'ed the De I ca rat j on of Covents and had no problem with the construction site. The portion of the property for which we are requesting a variance is association property and would not infringe on the health, comforT or property rights of anyone as it is contiguous to heavi Iy wooded la-.: that is not inhabited, unbui ldabie and not seen by anyone as evidence: by the enclosed photos. Therefore; we feel granting approval for a variance ~ould not violate any precedence. Moving or removing the Gazebo v,'ou I d not 0;11,/ be very cost I y but ""OU I d distract frorr, the architectural appeal it places on our property and would di lute the value of o~r property. Thank you for taking the time to read this rather lengthy letter and fo; your patience and understanding. We look forward to being informed as to when we may appear before you to answer any questions you may have. Since we wi I I be out of the city unti I Nov. 11, we request that the 30 day time frame to r&rlove or re-Iocate this structure be waived until the variance request has been heard. We would be pleased to have any of you personally inspect the property at any time. " /. / /~~ " '-./ ~-/ George Fo . ~~\~ l~ ~ . ~~ s ~~ Sl-J ~ ~ v uJ C) . ~ " '- ~J " -b '" ~~ ~ '( ~ ~ '~ . \ ~ 3 ~ ~ 'l) ')- z~ o ~ I!, ~ ~ ...r ~ ,; ..... ,... -'~, ... (i~. "~~ t! I '- . "~ .t" "- ,_ h , ."-~ j;,. ~...a '.... '. '- ..... '-. .............., ; ~ ........ "' :"- ~~ ~ U ::J ,..", '- i- f/) Z o u I .,,~ ; I V I ~I icl' . t I! :, .... -. . -:--: ~ """-L ~ ...,............... " '-', .. . ,- ". ! l i ..........." .'---......, 'j . \ ~. . >- ~ ::J Z I...) ~ ......, I . ~. .. .8 .) v ~ ~ ...... .;. ~ .~. . .....'--...:: ' .... .~ , , >- w..J > :-.... '. ...-........,. '/ ~~.:-., ~ ..:~. ., .~- ...'_j' """"....... . "'>...;. .~:. . ~ .:....-.......... :. ~ I fo\," ~ :.-, / f.;.. l?h ... - \0. . ":~T .~~~~ , . ~'t.:' is ..~~, ,.. ... ..' -' oJ, ~ ~. ... ,. i '. . -". - ::J VI ~ ,,~ '. ""'-...... .~ ~ .'~ .;.: ....;:-... u... o . ~ L.:..l r- c:t: U if ,S'?J · 0 -0 .- \V ,J ~ .<} -0 . ..,. 0 ~ ... J: ~ =E ~ -i:.- - u.... rr- I- ~ W U ": / oj,~~.... -:::I. ~ <It -0 ,~ - ...... o - ~ .. C) ("-J ..... , " . , c '_ ~..-.....'"'~~~.. ....--. ". ~~.... \ ...... ...~ ~..:~~'t':..: _ ." Exhibit C SITE PLAN -Tli '.'1. '.l:.- ~ AMESBURY HOMES ASSOCIATION~ Board of Directors' Meeting Minutes June 13, 1990 ~ The regular meeting of the Board of Directors of the Arnesbury Homes Association was held at the home of Howard Strauss on June 13, 1990 at 7:30 p.m. Board members present were Jim Andrus, Karen Mast, Andrew Johnson, Ken Carlson, Howard Strauss, Kay Gluek and our accountant, Nola Schroer. APPROVAL OF MINUTES The minutes of the May 15, 1990 meeting were read and approved. TREASURER'S REPORT The financial statement for May was read and approved, and is attached to the minutes. POOL COMMITTEE Dick Nordbye, Chairman, submitted the names of his committee members: Dottie Webster, Jean Egan and Barbara Michael. There have been many complaints about the noise and late hours at the pool. The pool rules state that the pool hours are from 7 a.m. to 10 p.m. It is up to all home owners to see that these rules are obeyed. It has been suggested that people walking to and from the pool past the pump house be considerate of the home owners who live near the pool. MAINTENANCE REPORT Karen Mast reported the following requests which were approved by the Board: 1. 2. on 5. Chairman Andy Johnson, with a crew of young men, did a great job over'the past weekend cleaning up the grounds, and it was much appreciated by everyone. POND COMMITTEE Ken Carlson reported that the annual spring spraying of the ponds for algae and duckweed has been completed. JULY MEETING The next meeting will be held at Ken Carlson's home on July 24 at 7:30 p.m. ADJOURNMENT There being no further business, the meeting was adjourned. Kay Gluek o ~,I_,__- Exhibit D-1 ARCHITECTURAL REVIEW COMMITTEE APPROVAL Letter dated 11 June 1990 Respectfully submitted, . cfE4'a: / ~ /77c:? /lIf-a4~. ..7~~ ~t25 ~~ 134ct.e?- If' &:4~~.. IV' 5533/ UtM/ 'a~c4 ~ y;6 4d~~d:. ~ ~/ ~ W~:!e>ja;t- ~ ~ ~ ~~ . va/:. /7cZJ b.u-?~.?t. . C?~~.~ ~ l1/~ afU / . ~/:p~ {!t;/J0/~ AC1h ~$~ ~~ff p4/'R//7/7 ~/tfd~..~. rr/~ [Wu/~ "'" ~pL.,-u Exhibit D-l . ARCHITECTURAL REVIEW COMMnTEE APPROVAL Letter (!ated 11 June 1990 ---- ----- ~ (). ... ~ ~ s... ~ ~ t: .- 1-J J:: C1 .- s.. U t: .- ~ +--. /- / ~ ..... - )< \t ~ '-t) , ~ - . , - - - ':-.b '4.- 00,,_ . 65~N~ ,0 l.11,...., , :(j)co o o o ~ ...., q): .0. '0.0 . : (l) .~~ 0)'- .wco. ro V) . -~oo OJ LL ~ .0) Ou ~ . ro ~OO ~ ~~O '0 ~ a;LL .; J2 .. E~E: ~ Puo~oCJ) ~ ~ ~~5r II) . 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E~E: ~ ..c o..c CJ) ro ~U 0)01"1\ :J '-J . '-V cr :s ~SU1 o q g f'l1 an o - - :: ui+-i ~ ~ Nj .n 14- 1,_1 _ . - -' N/Q cr ~L.{)'l.11V) " (j)r--.. . , r--.. , '0. ".0 . : Q) . .~~ 0)'- +JC~ C'O,-O LLO+.;.l au '- .j..;Joo .LJ -.lm..J _ . OJ .en '-C3 . - . . '^\'" ~ OJ<'" ~-vv :2. 1) \ ~ C\, 0 NOV 2 9 1t8l . . December 3, 1990 TO~ BRAD NIELSEN (474-0128) ....d'---' .-.- Shorewood City' Planner FROM: DAVID and'SANORk SHERMAN 4930' Sussex Place Shorewood, MN 55331 Dear Mr. Nielsen: FILE COpy \)t.C ,?, \~ George Fe,x has requested' a hearing' on Tuesday, 'December 4th. He would like a setback variance fora gazebo on his property located at 4905 Sussex Place. l~e are his neighbors and 'we agree that this (already built) gazebo enhances his property and our ~nsbury neighborhood. We have walked the area and have observed that the gazebo addition does not affect anyone adversely. We are in agreement with the AmsburyArchitectual Committee. Thank Y01..1. David and Sandra Sherman 474-7481 - home 332-4900 - office . e, JAMES D. ANDRUS SHOREWQOO. MINNESOTA 55331 a December 1990 I i I ~ayor Jan M. Haugen qity of Shorewood S755 Country Club Road ~horewoo~, MN 55331 I ,ear Mayor Haugen: ~ am writing on behalf of both Mr. George Fox and the Amesbury ~omes Association since I was the President of the Association ~t the time whent~e Landscape & Architecture Committee approved Mr. Fox I s reques t to build a gazebo on his' deck at his home at 1905 SusseX Place. . ' p.jt the Planning Commission meeting on 4 December 1990 I the. Ci ty P.lanner expressed two concerns about the' Amended Declaration of qovenants, Conai tions and Res trictions for Amesbury. First I he f1el t tha t the wording of Article IX, Section l, was too vague and that, as written, did not apply to this situation. Secondly, ~e expressed some concern over the amount of green area in ~mesbury and the effect that additional construction on the 9ommon area would have on the depletion of this green area. I ~n regard to the first concern, the Covenants for Amesbury have rieen in place since 1976 and were acceptable to the Ci ty of ~horewood at that time. They have worked very well for the homeowners, the Association and the City since that time and it ~oes not seem as though they need to be amended in any way. The di ty planner has s ta ted that he would like to see some wording tlhat would limi t the encroachment onto common property to the ~essor of. fifteen feet or half way to the closest adjoining ~roperty. The wording now is such that a homeowner can not assume that he can ri9htfully build into the common area for any ~pecific distance. To 'put an actual number to this distance ~ould invite problems which do not now exist since the actual qistance is presently controlled by the Lanscape 5: Architecture ~ommittee and there is no implied right of a homeowner to build ~o a specific distance. The present \vording also allows for filexibili ty in cases I such as this I where current trends not ~oreseen at the time of the original drafting , can 'be accom- ~odated. It would be impractical for the Association to ammend ~he Coventants every time the City felt a specific situation was riot addressed in the Covenants. The city's control comes in the ~uilding Permi t application process, and we do not propose to alter that situation. ~EC 06 '90 12:39 OMNI TRAVEL,9S01. r . P.3 . JAMES D. ANDRUS i I i I I i I ! i Mayor Jan M. Haugen a December 1990 ~age Two SHOREWOOD. MINNESOTA 55331 ~ith regard to the amount of green space in Amesbury, you may be ~ware that the original plan for Amesbury, which was approved by ~he City, called for in e~cess of 170 units. The final plan for ~mesbury included only 92 units which freed an additional green ~pace of an estimated 90,000 square feet. . i ~he problem as it stands now is that the City considers that Mr. 0,ox's gazebo is not covered by the Covenants whereas the Amesbury ~andscape & Architecture Committee has determined that the ~azebo is, in fact, an appurtenance to his deck and is covered 1:joth by the letter and the spiri t of the Covenants. The legal ~nformation we have available to us indicates that we are correct ~hereas the Ci ty Attorney believes tha t we are not correct. F1urther, the advice we have had so far indicates that it would be a very costly and monumental task to amend the Covenants at ~his point, involving all (or two-thirds, by the City's reading gf the Covenants and Bye Laws) of the homeowners, their lending ~nstitutio~s and all their lawyers. It is not likely, therefore, ~hat the present board will entertain the idea of al tering the qovenants. i I 'llhis. appears to be a stalema te situation which will resul t in nlajor legal expense ei ther for Amesbury and the homeowners or ~or both the Association and the ci ty. The recommendation of ~he Planning Commission is to approve Mr. Fox's request for ~ariance subject to an amendment to the Covenants by Amesbury within the next 180 days. I suggest a compromise solution which I \o.fou1d allow both Shorewood a nd .~mesbury to save face. I urge ~ou to approve Mr. Fox's request without the condition that the ~ssociation amend the' Covenants. In the future, all such pro- jects in Amesbury will be deal t wi th on a case by case basis, ~irst by Amesbury and then by the City. If a project were deemed ~y the City to require a variance, it would be the homeowner's ~esponsibility to obtain the variance. I ! ~ would also like to correct a misconception which must have dome about as a resul t of a conversa tion I had wi th the City ~lanner. In a memorandum da ted 27 November 1990 to' the Planning i ! i I I I I ! i I ! . . JAMES D. ANDRUS SHOREWOOD, MINNESOTA 55331 ! i I ~'aYor Jan M. Haugen December 1990 _ ag.e Three I I I I dommission I Mayor and City Council, Brad Nielsen states in the ~hird paragraph that "the (Amesbury Landscape & Archi tecture) qommittee itself was unaware of the requirement for a building permi t from the City." This is not the case. The Commi ttee cjhairperson and the. Board were well aware of this requirement qut had never adopted a policy of advising the homeo\<mers of tjhis requirement. As of 1 November 1990, this information has ~een included in the general information packet given to.. each ~ew homeowner and, additionally, each applicant to the Landscape ~ Architecture Committee for approval of a project is advised to ~heck with the City for all required permits and approvals once 1mesbury has approved the project. ~gai n I I urge you to approve Mr. Fox' $ reques t for a variance without the condition of an amendment to the Covenants. This is ~ system that has worked very well for more than fourteen years ~nd I believe the old adage "if it isn't broken, don I t fix it.. more than applies here. r i yours, L Mr. George Fox Mr. Kenneth Carlson . 6l~ - ~.\. ~ . \ December 4, 1990 2021 East Hennepin Avenue Minneapolis, MN 55413 612-331-8660 FAX 331-3806 Etlgineers surveyors planners . City of Shore wood 5755 Country Club Road Shorewood,:M.N 55331 Attn: Mr. Lany Whittaker City Admini5;trator Re: Lawtonka Plat OSM Carom. No. 17 Dear Mr. Whittaker: The Developer of the Lawto a Plat has requested the City take over the street and utilities installed in this development. In discussions with my inspector, Mr. Plrl! Tipka, the last of the punch list items (replacin a piece of curb) has been taken care of. Therefore, I recommend the ity accept the street and utilities for public ownership and maintenaIlC". As part of the ccoptance the Developer shall convey said improvements to the City free of all liens and ncumbrances and with warranty of title, which shall include copies of all lien waivers. Also, as part of the City's acee tanCO of the street and utilities said improvements shall have a warranty period of one ye from the date of acceptance. This warranty period must be covered by the letter of credi or replaced by a maintenance bond. If you have any questions, pi Respectfully, ORR..ScHELEN-MAYERO & ASSOCIATES, INC. d-- f.1~ James P. Norton, P.E. City Engineer JPN/cmw 12j9o-cosJw Mr. Ai Rolek, C Mr. Phil Tipka, I Mr. Joe Boyer, 1 *;0 c: Mr. Brad Nielsen, Ci of Shorewood Mr. Don Zdrazi}, City of Shorewood Mr. Glenn Froberg, tomey Mr. Todd McLouth, S hoell & Madson, Inc. -:-..,'_.~.........~~::--~~~.-",-.----~~,.-,- -- ~ \...." DEe 06 '90 16:10 OSM OSM. On' Sd1den Mayeron& ~te5,Inc. 1'.,t'I(1 . P.2 \...,..., ;1021 EaSt Hennepin Avenue Minneapolis, MN 55413 612-3.)1-6660 FAX 331-3$06 El1gin rs Surve rs PI..nn 5 Client C,:, D F Sit 0 r ~tIJ'trt>>. " By ~ Po' N. Project Cl1u~c.J... ROlLI' I~frlJv.f.i'WN~ Sheet I of.rp Comm. NO. -$'" 90 Date 1*/. /9f - - "-' r-~-t-i-H-!.,--~---=[tt~t_~i I : · I i rij:t~-~-f---=t;---. .---- j:Y--Tr Tri~ i --i--l-jtJJ-d~:~~i~=-(~k~-:--'t-::~-------. :----l- ..' ':,,-- ' lor~ . aj~t., ~~~-~lj~-:?~L~[~~I_ iI~."..+_!~ . r ;-"-":-"; : i'" i ..., I ' .~....,i....,. :=~-C~tti~~~:::; B~dij L___ - . i--,--':::=:':::f-----c-- __ .._____ '. .:;.. 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I' . .'..~.~~ .j"----..~.-r-i -:..-:-..,.~.-..i._..c--t-: --r"--r-'r-I-;--'~"'-r"-':--T"'-"r-:-'T--'-:-";'---;- .. . ......T. ----...-. " ---. . : -+ .:... -'~... 1---": r ! ' . -.-:-.:... ;... i . r';' -- ,.. r . i "r'"i" i--:- -_... l .!_; . 1 ,,_~...~.l \,.L...:..H.i,", ~""'r"'" ..!." I i-...... ....:.. i"'i'''''! ,.....r.:-....\. . ; ..0..,. \ 1 ..!. r'''''''' i '''''T'' J.__'..... i' . .. -__'_ _ ._....._1..,. _ ..__:..__.__J......~.._..__._...__.__.......__!._ "...' ~ ,~. .-....... J , ! . ; j .. 'i .,.l. i . . .. . ..... .\ . ...~..~,-,-_.. .:... . .... ... ... ...._._~_._j . t......~ _o,' , . . . MAYOR Jan Haugen COUNCI L Kristi Stover Robert Gagne Barb Brancel Vern Wanen CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD . SHOREWOOD, MINNESOTA 55331 . (612) 474-3236 MEMO TO: FR: DT: The City Council Larry Whittaker Dec. 7, 1990 RE: WATERFORD III - Amended Contract for TIF Development and Bond Purchase Agreement The staff and City consultants have reviewed several drafts of the Trivesco proposals for these agreements since your last meeting. We believe we now have Agreements which improve the City's security and provide for the financing of the project approved in the origi- nal Contract for TIF Development approved by the City Council earlier. The Agreements provide that: 1. Trivesco will purchase $1,150,000.00 in Tax Increment Revenue Bonds. with the elimination of capitalized interest and the reduction of bond issuance costs, the amount the City will have to finance is reduced considerably...from $1.4 million. 2. These bonds would be issued at 10%. However, Trivesco has indicated that the City is free to market them for a lower rate if we can find a buyer. It is the opinion of springsted that we probably could not sell them at a lower rate - and very likely could not find another buyer to purchase them at this rate. Trivesco is willing to buy them because they have confidence in the project and. . . control over it. Even with this seemingly high rate, the net surplus from the tax increments will exceed the surplus the ci ty would have had from the approved Contract and Assessment Agreement. 3 . Tr i vesco and the City enter into a Bond Purchase Agreement which stipulates that they will agree to these terms, we will decrease the debt if costs prove lower than estimates, and we will repay (call) the bonds more quickly if tax increments permit it. This would result in a reduction in principal, lower interest expense, and faster repayment of the debt; so that the surplus could be realized and used sooner. 4. Trivesco and/or Sherman-Boosalis will pay the City for current out-of-pocket expenses of $53,000 and give the City cash for their share of the Engineering (plans and specifications), bond issuance and administrative expenses the City will incur before the A Residential Community on Lake Minnetonka's South Shore ~1'L . . MEMO, WATERFORD III Dec. 7, 1990 Page two contracts are let and the bonds are sold...by December 21, 1990 or when they close on the property, whichever comes first. Note: You may recall the City agreed to spli t the cost of Engineering (plans and specifications) with Sherman-Boosalis when we approved the previous TIF Contract. 5. No Assessment Agreement will be necessary as the City will NOT back these bonds with the full faith and credit of the City. These are not General Obligation Bonds. No general property tax levy is required if the tax increments won't pay the bonds. Instead, we are agreeing to retire the bonds according to the schedule but only if tax increments are received. If the taxes are not paid and the increments don't come in as expected, Trivesco will have to wait for the money. The Shorewood taxpayers do not have to pay the bonds. Note: This is a much lower risk position for the City than the previously approved agreement. Now, Sherman-Boosalis has to assure Trivesco that they will build-out on schedule. The City doesn't need the guarantee. These Agreements have been reviewed by the ci ty Attorney, the attorneys for the League of cities, Springstead and the City's Bond Counsel. And, frankly, it is a better agreement than the one approved before. There is less risk to the city. The up-front costs are paid or covered. And, BOTH Sherman-Boosalis and Trivesco are backing it. We strongly recommend the City Council approve the Agreements. The "drafts" of these agreements are attached. Documents ready for signature will be ready Monday night. Once they are signed and the $99,000 is paid, we can renew work on the plans and specifications - which was stopped when we did not receive the check for $37,500 from Sherman-Boosalis. Sherman-Boosalis can petition for the "internal" public improve- ments. The City can prepare the PUD Development Agreement; and, the city can prepare the bond issuance documents. Once the plans and specs. are done, the City Council can authorize the City Engineer to take bids, award the contract for the improve- ments, and capture the Mn/DOT funds for the frontage road improve- mens. .1L'/V) 1/:;11:1 .10:01 -O-OJ." ""~ ~O()'Q" >;>r~II'l"-l>;>Ii:.U 11'1..... . ~ o ~ ~ ..oJ VI N~~OO~OONOO~~NOO~OO~OON~ I t I , . I I , I I .t I I I I l . . ..-~""""'"'.....~......~....-......,....................~~.......~............ I , . I 1 I I I I I t I I , . . . 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Page ARTICLE I ARTICLE II Section 2.1 Section 2.2 ARTICLE III Section 3.1 Section 3.2 Section 3.3 Section 3.4 Section 3.5 Section 3.6 Section 3.7 Section 3.8 ARTICLE IV Section 4.1 ARTICLE V Section 5.1 Section 5.2 ARTICLE VI Section 6.1 Section 6.2 Section 6.3 Section 6.4 Section 6.5 Section 6.6 Section 6.7 Section 6.8 Section 6.9 Section 6.10 Section 6.11 Defini tions .................................. Representations and Warranties Representation and Warranties of the City .................................. Representations and Warranties of the Developer ............................. Construction of the Project; Financing and Liens Construction Done by Developer ............... Commencement and Completion of Construction .. Construction Done by City.................... General Restrictions ......................... Notice of Default ............................ Destruction of Facilities .................... Insurance .................................... Condemnation ................................. Assessment Agreement Payment of Real Property Taxes.................... Tax Increment Bonds Issuance of Tax Increment Bonds .............. Use of Tax Increments ........................ General Provisions Restrictions on Use .. ........................ Conflicts of Interest ........................ Provisions Not Merged with Deed .............. Titles of Articles and Sections .............. Notices and Demands .......................... Counterparts ................................. Law Governing ................................ Partial Invalidity ........................... Assignment ................................... Rights Cumulative ............................ Amendments, Changes, and Modifications ....... Signatures ........................................................... Acknowledgments ...................................................... e e CONTRACT FOR TAX INCREMENT FINANCE DEVELOPMENT THIS CONTRACT, made on and entered into as of the _____ day of , 1990, by and between the City of Shorewood, Minnesota, a municipal corporation organized and existing under the laws of the State of Minnesota (the City), and Sherman-Boosalis Interests, Inc., a corporation licensed to do business in the State of Minnesota (the Developer) . WHEREAS, the City has all the powers of a municipal corporation under Minnesota law; and WHEREAS, as of the date of this Contract there has been prepared and approved by the City Council a Development District No. 1 and the Development Program relating thereto (which program as it may be amended, is referred to as the "Economic Development Plan"); and WHEREAS, there is included in the Economic Development Plan a Tax Increment Financing Plan (which plan as may be amended is referred to as "the Tax Increment Financing Plan"), providing for the use of tax increment financing in connection with the Economic Development Project; and WHEREAS, the prompt development of the certain area in the Economic Development Project, which is not now in productive use or in its highest and best use, the encouragement of business expansion and improvements, the maintenance of balanced commercial activities, and the securing of additional employment opportunities are some of the stated objectives of the Economic Development Plan and the Tax Increment Financing Plan; and WHEREAS, in order to achieve the objectives of the Economic Development Plan and particularly to undertake certain roadway, interchange and utility improvements in order to make the land in the Project area suitable for development by private enterprise in conformance with the Economic Development Plan and in accordance with the development stage plan approved by the Council on November 20, 1989, the City has determined to provide aid for the Economic Development Plan through tax increment financing of the Public Improvements defined herein. WHEREAS, the City believes that the construction of a development consisting of 54 twin homes and approximately 50,000 square feet of retail/office space is in the best interests of the City, and the health, safety, morals and welfare of its residents, and in accord with the public purposes and provisions of the applicable state and local laws and requirements under which the Economic Development Plan has been undertaken and is receiving assistance. NOW, THEREFORE, in consideration of the mutual covenants herein contained, it is hereby agreed by and between the parties hereto as follows: e e ARTICLE I Definitions Section 1.1 Definitions. In this Contract unless a different meaning clearly appears from the context: "Articles and Sections" mentioned by number only are the respective Articles and Sections of this Agreement so numbered. "Assessor's Market Value" means the market value of the Project as determined by the Assessor for the City of Shorewood. "Bonds" means the revenue tax increment bonds to be issued by the City, the proceeds of which will be used to finance the public improvements of the Project described in Section 2.1(4). The term "Bonds" shall also include any bonds or obligations issued to refund any bonds. "Certification Date" means April 29, 1990, which is the date on which the City requested certification of original tax capacity value of Tax Increment Financing District No.1. "City" means the City of Shorewood, Minnesota. "Contract" means this Contract for Tax Increment Finance Development by and between the City and the Developer, as the same may be from time to time modified, amended or supplemented. "Council" means the City Council of Shorewood, Minnesota. "County" means the County of Hennepin, Minnesota. "Developer" means Sherman-Boosalis Interests, Inc. "Development Property" means the real property described in Exhibit 1 of this Contract. "Economic Development Plan" means the City of Shorewood Development Program for Development District No.1, originally adopted by the Council on April 23, 1990, and as amended and as it shall be amended. "Economic Development Proiect" means the City of Shorewood Development District No.1, as described in the legal description attached as Exhibit 1 hereto. "Parcel A" means Parcel A as described in the legal description attached as Exhibit 2 hereto. "Parcel B" means Parcel B as described in the legal description attached as Exhibit 2 hereto. -2- e e "Party" means either the Developer or the City. "Parties" means the Developer and the City. "Proiect" means the Development Property and the completed improvements and buildings. "Proiect Area" means the real property located within the boundaries of the Economic Development Project. "Public Improvements" includes (1) improvements to the State Highway 7 frontage road, (2) construction of the intersection of State Highway 7 and Old Market Road, (3) construction of Old Market Road, (4) installation of watermains, and (5) the closing of slip ramps onto State Highway 7. "State" means the State of Minnesota. "Tax Increment" means the tax increment generated by the Project, calculated as provided in Minn. Stat. Sections 469.174 - .179. "Tax Increment District" means the City of Shorewood Tax Increment Financing District No.1, adopted by the Council on April 23, 1990, and requested for certification on April 29, 1990. "Tax Increment Financinq Act" means the statutes located at Minn. Stat. Sections 469.174 - .179. "Tax Increment Financinq Plan" means the Tax Increment Financing Plan for the Tax Increment District. "Tax Official" means any City or County Assessor; County Auditor, City, or County or State Board of Equalization; the Commissioner of Revenue of the State; or any State or Federal District Court, the Tax Court of the State or the State Supreme Court. "Termination Date" means the date of expiration of the Assessment Agreement as provided in Section 5.4. "Unavoidable Delays" means delays, outside the control of the Party claiming its occurrence, which are the direct result of strikes, other labor troubles, unusually severe or prolonged bad weather, acts of God, fire or other casualty to the Project, litigation commenced by third parties which, by injunction or other similar judicial action or by the exercise of reasonable discretion, directly results in delays, or acts of any federal, state or local government unit (other than the City) which directly result in delays, or the failure to secure City approval of the construction plans for the Project. -3- e e ARTICLE II Representations and Warranties Section 2.1. Representations and Warranties of the City. The City makes the following representations and warranties: (1) The City has all the powers of a statutory city under the laws of the State. The City has the power to enter into this Contract and carry out its obligations hereunder. (2) The Tax Increment District is a "tax increment financing district" within the meaning of the Tax Increment Financing Act, and was created, adopted and approved in accordance with the provisions of the Tax Increment Financing Act. (3) The Project contemplated by this Contract is in conformance with the development objectives set forth in the Economic Development Plan and Tax Increment Financing Plan, and in accordance with the development stage plan approved by the Council. (4) The City promises to use its best efforts to issue the Bonds and use the proceeds thereof to finance the Public Improvements. (5) The City has authority, but does not anticipate purchasing property within the Economic Development Project. Section 2.2 Representations and Warranties of the Developer. The Developer makes the following representations and warranties: (1) The Developer is a corporation under the laws of this state, has power to enter into this Contract and to perform its obligations hereunder. (2) The Developer will cause the Project to be constructed, operated and maintained in accordance with the terms of this Contract and the Amended Development Agreement of August 12, 1985, between the City and the developer's predecessor. The Developer shall also comply with all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, energy conservation, building code and public health laws and regulations). (3) The Developer has or will obtain, or cause to be obtained, all required permits, licenses and approvals, and has met all requirements of all applicable local, state, and federal laws and regulations which must be obtained or met before the Project may be lawfully constructed. (4) Neither the execution and delivery of this Contract, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Contract is prevented, limited by or conflicts with or results in a breach of, the -4- e e terms, conditions or provisions of any contractual restriction, evidence of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. (5) Developer agrees that City, its agents, and employees, shall not be personally liable or responsible in any manner to Developer, Developer's contractors or subcontractors, material men, laborers, or to any other person, firm, or corporation whomsoever, for any debt, claim, demand, damages, action, or causes of action of any kind or character arising out of or by reason of this Contract of the performance of the work and improvements hereunder; Developer shall save City, its agents, and employees harmless from any and all claims, damages, demands, actions, or causes of action arising therefrom and the costs, disbursements, and expenses of defending the same, except for any work performed by City. (6) The Developer will cooperate fully with the City in resolution of any traffic, parking, trash removal or public safety problems which may arise in connection with the construction and operation of the Project. (7) The Developer would not undertake the Project without the construction of the Public Improvements by the City to be financed pursuant to this Contract. (8) Developer shall, within a reasonable period of time, effect a closing with Trivesco, a Minnesota general partnership, whereby Developer becomes the fee owner of the real property described in Exhibit 2 of this Contract. -5- . e ARTICLE III Construction of the Project: Financing and Liens Section 3.1 Construction Done by Developer. The Developer agrees that it will construct the Project, called Waterford Phase Three, including all site improvements necessary for the construction of 54 townhomes on Parcel B and will construct at least 32,000 square feet of retail/office space on Parcel A, and all necessary public improvements associated with the Project on the Development Property excluding Public Improvements to be constructed by the City, in conformance with the Developer's plans and specifications as the same have been submitted to and approved by the City, and in accordance with the Amended Development Agreement dated August 12, 1985. Section 3.2 Commencement and Completion of Construction. Subject to unavoidable delays, the Developer shall commence construction of the Project: (a) Within thirty (30) days of the signing of this Contract; or (b) On such other date as the Parties shall mutually agree in writing. The Developer shall complete construction of the Project in accordance with the schedule set forth in the Developer's Agreement to be executed by the parties on or prior to The Developer agrees for itself and every successor in interest to the Development Property, or any part thereof, that the Developer, and such successors and assigns shall, in good faith, construct the Project in accordance with this Contract and during such construction, designated representatives of the City shall be allowed to enter upon the Development Property to inspect any and all such construction. Section 3.3 Construction done by City. The City agrees to construct the "Public Improvements" defined in Section 1.1 herein. Section 3.4 General Restrictions. The Developer agrees for itself, and its successors and assigns, and every successor in interest to the Property, that the Developer and its successors and assigns shall: (a) Not discriminate on the basis of sex, color, creed, national origin, in the sale, lease or rental, or in the use or occupancy of the Property or the facilities, or any part thereof; -6- . e (b) Not cause the Project to be removed from the public tax rolls or to become exempt from assessment for general ad valorem real estate taxes by reason of any conveyance, lease or other action. Section 3.5 Notice of Default. Whenever the City shall deliver any notice or demand to the Developer with respect to any breach or default by the Developer in its obligations or covenants under this Contract, the City shall at the same time forward a copy of such notice or demand to each holder of any permitted mortgage, lien or other similar encumbrance at the last address of such holder shown in the records of the City. Section 3.6 Destruction of Proiect. So long as any of the Bonds are outstanding under this Contract, in the event of destruction of any portion of the Project which reduces the Assessor's Market Value of the Property below the assessor's market value determined most recently to such destruction, the following shall apply: (a) The Developer shall as soon as reasonably possible, and in any event on or before the second succeeding December 31 following such destruction, time being of the essence, repair, rebuild or replace the damage to such extent as will cause the Assessor's Market Value of the Project to equal or exceed the Assessor's Market Value thereof as finally determined most recently prior to such destruction; or (b) If such repair, rebuilding or replacement is not completed by such date, the Developer shall be liable to the City for damages in an amount equal to the difference between the Tax Increment received by the City in each subsequent year and the Tax Increment that would have been received by the City had such repair, rebuilding or replacement been completed by such date. Section 3.7 Insurance. During the term of this Contract, until the Bonds are paid in full, the Developer shall maintain (or cause to be maintained) with reputable insurance company or companies licensed to do business in Minnesota such insurance covering the Project including all buildings on Parcel A in such amounts as are customarily carried on such properties. The Developer shall annually file with the City a schedule describing all such policies in force, including the types of insurance, name of insurers, policy numbers, effective dates, terms and duration and any other information the Developer deems pertinent. Section 3.8 Condemnation. In the event of condemnation of any or all of the Project, other than by the City, which reduces the Assessor's Market Value of the completed Project below the assessor's market value determined most recently to such condemnation, the Developer shall take the action specified in Section 3.6(a); or if such actions cannot be performed, the Developer shall pay to the City, an amount of the condemnation proceeds thereof equal to the amount outstanding on the Bonds. -7- e e ARTICLE IV Payment of Real Property Taxes Section 4.1 Real Propertv Taxes. The Developer shall timely pay all real property taxes payable with respect to the Development Property and pursuant to the provisions of the Assessment Agreement and any other statutory or contractual duty which shall accrue subsequent to the date of its acquisition of title to the Development Property and prior to the sale of any portion of the property, and until the Developer's obligations have been assumed by any other person with the written consent of the City and pursuant to the provisions of this Contract. The Developer agrees that prior to the Termination Date: (a) It will not seek administrative review or judicial review of the applicability of any tax statute relating to the taxation of real property contained on the Development Property determined by any tax official to be applicable to the Project or the Developer or raise the inapplicability of any such tax statute as a defense in any proceedings, including delinquent tax proceedings; (b) It will not seek administrative review or judicial review of the constitutionality of any tax statute relating to the taxation of real property contained on the Development Property determined by any tax official to be applicable to the Project, or the Developer, or raise the unconstitutionality of any such tax statute as a defense in any proceedings, including delinquent tax proceedings; (c) It will not seek any tax deferral or abatement, either presently or prospectively authorized under Minn. Stat. Section 270.07, or any other state or federal law, of the taxation of real property contained in the Development Property between the date of execution of this Contract and the Termination Date; and (d) Notwithstanding the prohibitions set out in paragraphs (a), (b), and (c) above, nothing in this Contract shall prohibit the Developer from seeking a reduction in the market value of real property contained in the Development Property provided such reduction does not fall below the Assessor's Market Value determined for the prior year. -8- e e ARTICLE V Tax Increment Bonds Section 5.1 Issuance of Tax Increment Bonds. The City agrees to exercise its best efforts to take all steps necessary to issue the Bonds and shall exercise its best efforts to issue the Bonds at such time as shall, in the judgment of the City, be necessary and desirable to finance the construction of the public improvements described in Section 2.1 (4). Section 5.2 Use of Tax Increments. The City shall be free to use any Tax Increment received from the Tax Increment District for any purpose for which such increments may lawfully be used pursuant to the provisions of }1inn. Stat. Sections 469.174 - .179, except that no tax increment received by the City shall be used for a purpose other than the payment of principal and interest on the Bonds until such time as all principal and interest of the bonds has been paid in full or a cash reserve has been established in a sufficient amount to pay all principal and interest of the Bonds is full, when due. Tax increment may be used as follows: (1) To pay principal and interest on the Bonds. (2) To finance or otherwise pay the public costs set forth in the Tax Increment Financing Plan. (3) To accumulate or maintain a reserve securing the payment when due of the principal and interest on the Bonds or other bonds to pay public costs. (4) Return the excess to the County Auditor for redistribution to the respective tax jurisdictions in proportion to their tax capacity. The City pledges and agrees to collect from the County Auditor of Hennepin County, Minnesota, the entire Tax Increment derived from the Project. For purposes of this Contract, Tax Increment is received "with respect to" a particular calendar year if the Tax Increment was generated by ad valorem real property taxes ( or taxes in lieu thereof pursuant to Minn. Stat. Section 469.176) first becoming due and payable in such calendar year, irrespective of when such Tax Increment is actually paid to the City. To the extent excess Tax Increments exceed in any year the amount necessary to pay the public costs authorized by the Development Program and Tax Increment Financing Plan, including the amount necessary to cancel any tax levy as provided in Minn. Stat. Section 476.61, Subd. 3, the City shall be free to use such excess Tax Increments for any purpose, consistent with any covenants made with respect to the Bonds, for which the excess Tax Increments may lawfully be used as provided in Minn. Stat. Section 469.176, Subd. 2; and the City shall have no obligations to Developer with respect to the use of such excess Tax Increments. The City may use the excess amount to: -9- e e ARTICLE VI General Provisions Section 6.1 Restrictions on Use. The Developer agrees for itself, its succ~ssors and assigns and every successor in interest to the Development Property, or any part thereof, that the Developer and such successors and assigns shall devote the Development Property to, and only to, and in accordance with the uses specified in the Shorewood City Code or in this Contract. Section 6.2 Conflicts of Interest. No member of the governing body or other official of the City shall have any financial interest, direct or indirect, in this Contract, the Project, or any contract, agreement or other transaction contemplated to occur or be undertaken thereunder or with respect thereto, nor shall any such member of the governing body or other official participate in any decision relating to the Contract which affects its personal interests or the interests of any corporation, partnership or association in which it is, directly or indirectly, interested. No member, official or employee of the City shall be personally liable to the Developer or any successors in interest, in the event of any default or breach by the City or for any amount which may become due to the Developer or successor or on any obligations under the terms of the Contract. Section 6.3 Provisions Not Merqed With Deed. None of the provisions of this Contract shall be merged by reason of any deed transferring any interest in the Development Property, and any such deed shall not be deemed to affect or impair the provisions and covenants of this Contract. Section 6.4 Titles of Articles and Sections. Any titles of the several parts, Articles and Sections of the Contract are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 6.5 Notices and Demands. Except as otherwise expressly provided in this Contract, a notice, demand or other communication under the Contract by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally; and (a) In the case of the Developer, is addressed to or delivered personally to the Developer at the following address: Mr. George Sherman 340 Century Plaza 1111 Third Avenue South Minneapolis, Minnesota 55404-1040 -11- e e (b) In the case of the City, is addressed to or delivered personally to the City at the following address: City of Shorewood 5755 Country Club Road Shorewood, Minnesota 55331 (c) Either party may upon written notice to the other party change the address to which such notices and demands are made. Section 6.6 Counterparts. This Contract is executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 6.7 Law Governing. This Contract will be governed and construed in accordance with the laws of Minnesota. Section 6.8 Partial Invalidity. If anyone or more of the covenants, agreements or provisions of this Contract shall be determined by a court of competent jurisdiction to be invalid, the invalidity of such covenants, agreements, and provisions shall in no way affect the validity or effectiveness of the remainder of this Contract and this Contract shall continue in force to the fullest extent permitted by law. Section 6.9 Assiqnment. Neither the City nor the Developer shall have the right to assign its rights or obligations hereunder without the written consent of the other party, except that the City may assign all or any part of its rights and duties under this Contract (except its obligation to issue Bonds) to any governmental unit. Section 6.10 Riqhts Cumulative. The rights and remedies of the parties of this Contract, whether provided by law or by this Contract, shall be cumulative, and the exercise by either party of anyone or more of such remedies shall not preclude the exercise by it, at the same or different times, of any other remedies for the same default or breach or of any of its remedies for any other default or breach of the party. Delay by a party instituting or prosecuting any cause of action or claim hereunder shall not be deemed a waiver of any rights hereunder. Section 6.11 Amendments, Chanqes and Modifications. This Contract may be amended or any of its terms modified only by written amendment authorized and executed by the City and the Developer. -12- e e (1) prepay the outstanding Bonds; (2) discharge the pledge of Tax Increments thereto; (3) pay into an escrow account dedicated to the payment of the Bonds; (4) return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their tax capacity rate. In addition, the City may choose to modify Tax Increment Financing Plan No. 1 in order to finance additional public costs of the Development District. -10- e e IN WITNESS WHEREOF, the City has caused this Contract to be duly executed in its name and behalf, and the Developer has caused this Contract to be duly executed in its name and behalf, on or as of the date first above written. SHERMAN-BOOSALIS INTERESTS, INC. CITY OF SHOREWOOD, MINNESOTA By: Its Chief Executive Officer By: Its Mayor And: Its Administrator/Clerk STATE OF MINNESOTA) ) ss COUNTY OF HENNEPIN) The foregoing instrument was acknowledged before me this day of , 1990, by Jan Haugen and Laurence E. Whittaker, the Mayor and Administrator/Clerk, respectively, of the City of Shorewood, Minnesota, a municipal corporation and political subdivision of the State of Minnesota, on behalf of the City. Notary Public STATE OF MINNESOTA) ) ss COUNTY OF HENNEPIN) The foregoing instrument was acknowledged before me this day of , 1990, by George Sherman, Chief Executive Officer of Sherman-Boosalis Interests, Inc. Notary Public -13- e e CONSENT BY MORTGAGEE THIS CONSENT is made by TRlVESCO, a partnership consisting of Steiner and Koppelman, Inc., Robert A. Mason Homes, Inc., and Highland Properties, Inc., (hereinafter referred to as "Mortgagee"). WIT N E SSE T H That Mortgagee is now the holder and owner of a mortgage lien dated , by and between Sherman-Boosalis Interests, Inc., as Mortgagors and the Mortgagee, which mortgage was recorded on , as Document No. in the Office of the County Recorder for Hennepin County, and which mortgage includes some or all of the Properties described in the foregoing Contract for Tax Increment Finance Development. The Mortgagee hereby consents to the said Contract for Tax Increment Finance Development and agrees to be bound by its terms and conditions insofar as they relate or pertain to the said properties. IN TESTIMONY WHEREOF, the undersigned has caused this instrument to be executed and delivered this day of 1990. TRlVESCO By: Its: STATE OF MINNESOTA ss COUNTY OF HENNEPIN On this _____ day of , 1990, be me, a Notary Public within and for said County, personally appeared of Trivesco, to me known to be the person described in and who executed the foregoing instrument and acknowledged that he executed the same as his free act and deed. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Froberg & Ahern, P.A. 17736 Excelsior Boulevard Minnetonka, Minnesota 55345 -14- . e That pa~ of Section 25 and 36, TownShip 117, Range 23, (P1atted and unplatted) in the City of Shore wood , Hennepin County, Minnesota 1ying "'itnin and bounded by the fOllowing described Une: CO-encing at tne interSection of tne east Une of said Seotion 25 and the centerline of State Trunx Highway NO.7; thence south along the east ~ ine of said Section 25 and Section 36 (said line also boinq the centerline of Vine Hill Road and the easterly boUnddry of ShoreWoOd) to the southwesterly right of way lino of COVington Road extended; thence northwesterly along sa ld Southwesterly right of way line extended and said SouthYo.ter~y right of way line to the south right of way line of said Highyay No.7; thence "'esterly and Southwesterly along said South right of way line of Highway No. 7 and the Southeasterly right of way line of Radisson Road to the SOut.'edstedy' extension of the . southwesterly Une of Lot 2 <, R"d bson Inn Addi tion, acCording to the record Plat thereOf; thence northwesterly along said southwesterly line and its extensions to tho north right of way line of said lligh"'ay 110. 7: thence northeasterly along said north right of way line to tho east 1 ine of the "'est hal f of the Southeast quarter of Sd id Section 25 and the Shorewood_ Deephaven boundary Une; thenco SOutherly along said bOUndary line to the centerUne of SOld State Trunk Highway }/o. 7; thence northeasterly along said Centerline to the point of beginning. EXHIBIT 1 I . e ...... 0; r ; : O.ESCIlIPTJON OF PAnCEL A . . That part of Ihe Southwest Quarter otthe Southenst QUartnr, Seclion 25, Township 117, RMgo 23, Hennepin County, Minnesota lYing southetly of the SOutherly right-of-way line of Tnml< HIghway 7 and northerly and W~)slerly of the fOllo'Ning doscribed line: I ; Commencing at the Soulh QUa/ler cornor of sold Section 25; thence l.Jorth 00 :' '1 dogmns 02 mlnules ~[\ seconds Wost, assumed boa'ing, along the west line of ; ~CJid Southwest OI.larl~3r of tile Southeast (~1I<:l/18r 22G.2B feot to the point of j boginning of SEdd linl;) to be (/oscrib8Cj; I.IW/lCO l~olth (;4 degmes 06 minutes 00 ; seconds E~'St .'5.061eet; thence Tlort/)r.?~slerJy ~(37.90 foet along a tangential curve 1 concave to the northwost, hewing a radius of 3.'30.00 feot, and a central angle of : 50 degrees 00 IYllfllltes 00 seconds; thGnco South 17 d8groes 31 rninutes 28 ; seConds East 1'1O.64 'loct; lb~nce South 00 dcgrE,eS 56 minutes 33 seconds East '40.00 foot; Ihence NOIlh 84 dogrees 03 minutes 27 seeollds East 890.00 feel; . thence North 25 dogrO!;IS 58 minutos ~13 SOcond:3 WeHt 33.00 feet; thence North 164 de()'e.s 03 minutes 27 seconds East 2.30.00 r"ol to a line 50.00 f8et westerly ~ of, and p8rnllel vvHh, the r:l~lst0r1y line of sai9 Soutflwest QU8rter of the Southeast ; Quart0r; thence N'Jrth 00 cJegfl:Gs 00 rninutes 24 t.econds V'/est, parallel with the . easterly line of said SOUthw8st Quartor of HIe Southenst QU81ter, a distance of . :2;15.79 feet 10 the soutlt0r/y right-of-way line of said Tlunl< Highway 7 and said line there terminating. bESdnlPTION OF PAHCEL B That riart of the Southwost QUarto( of tho Sculheast QlIar tor, Section 25, Township 117, Range 23. Hennepin County, Minn8G(lta, lying SOLlUlorly and oastorly of U'le following describod line: .Commencing 81 the SOl1th Ql.lflrtGr ('.ornor or S8id Se.:::lion 2.5: thence Nur1h 00 : . ;degrecs 02 minulf3s 48 soconds VIC'lst, asslHlwd b8arinu, along the west line of ':Gtlicf Southwest Qual tor or the Southo<1st QlJclrtor 226.28 feet to the point of be~Jinnif1g of s.~icf line to b-e c/(;1scribed; thence Nortl) 6'-1 clegrm:;s OG minutes 00 :seconds ER:.t 75.0G foE!t; thence norlheoSlorly 287.98 feet along a tangential curve . . ,concave to 1he northw~Sl, having a r8dill~i of 330.00 feE:t, E:lnd a contral angle of . :50 degrees 00 mInutes 00 seconds; thence SOLllh 17 degrees 31 minutes 28 . seconds East 110.64 feet; thenco Soulh 00 degrees 56 minutes 33 seconds East \ .40.00 foet; tl1enGe North 04 dogrees 03 mlnutos 2t seconds East 890.00 feet; : .thsClce North 25 degfEJen 56 minutes 33 Soconc/s Vilest 33.00 feco}l; thence North . Jl4 degroes 03 tnlnutas 27 seconds East 230.00 foot to a line 50.00 feot westerly or, and parallel with, the e3:.~t6r1y line of said Southwest Quarter of the Southeast ' 'Quarter; thencs North 00 (1~?qre8s 00 Illlnulos 2.1 Srlconds 'I'-/8:3t, parallel with the ;. :Oclstcrly line of SElid SoulhwGSl Quarter or theSoLlthee>st Quarter, a distance of : .295.79 feet to the sOUlherly right-or-way line of sclid Trufll( Highway ., and said line 'there terminating. .,. ..."'.',. , ~ ,. . , I. EXHIBIT 2 ;' I .... . '. e e $1,150,000.00 City cf Shorewood Tax Increment Revenue Bonds (Waterford 3~d Addition Public Improvements Project) BOND PURCHASE: AGREEMgNT City of Shorewood 5755 country Club Road Shor~wood, Minnesota 55331 December ____, 1990 Gentlemen: Trivesco, a Minnesota general pRrtnerahip ("Trivesco"), hereby offers to purchase, upon the terms and conditions hereinafter specified, up to $1,150,000.00 aggregate principal amount of City of ShOre\110od Ta~{ Increment Revenue Bonds (Waterford 3rd Addition Public Improvements Project) (the "Bonds") to be issued by the City of Sho:r:ewood (the "e1 ty") . By yonr acceptance of this Agreement, you will agree to issue the Bonds, \lpOn the terms and conditions spaclfied in this .Agre.ement t and this docurnent shall constltute our Bond Purchase Agreement. 1. Purcha~~L__.$B.le and J2s.!L~~.Y.......21..,_~!}9nds. Tl:i vesco agrees to purchase, and the city agrees to iEflue and sell to TrivsBco, the total principal amount of the Bonds at par value a purchase price not to exceed $1,150,000.00. The Bonds will not constitute a general obligation of the City and will not be backed by the full faith and credit or taxinq powers of the City. The Bonds will be payable solely from the t.ax .tn<1Mments from the City's Tax Increment Financing District No. ~nd 9XQ~~r tax 1R~r9mQ~~R fro~ QtA~r City t.&:{ inQr~)R\Cnt distx-igt,t; ".:hie)) ;):i.}' .b9 Ogt:a,blishgQ uit.hln th9 Ci ty'a 09vQl ?~9n t t;)iF; tr.tct. No. 1 iF). thQ f1.lttH:"it. The Bonds will bear interest at the rate of teh percent (10') per annum, which interest will be ex€:mpt from at.ate and federal income taxation. Interest will accrue from tIle date of issuance of the Bonds but will not be payable until tax increment is available at which time the incremen1~ ,";il1 be used to first repay accrued interest with the balance belng applied to the scheduled principal and interest payments. Principal and interest on the Bonda will be payable at the times and in the amounts specified in Schedule A to this Agreement. All t:ax increments from the City's Tax Increment Financing District No. 1. ("'TIF District 1") will be pledged to repa}'1nent of the BCl1lds. '1'lle C:1.t:y agrees not to use Ol." retain tax increments from TIF District 1 for any other purpose until such time as all principal and intereat of the Bonds has been paid in full or a cash reserve has b. een established tn a sufficient amountr;;:::;:] to pay all principal and int.erest of the Bonds in full, when due~ Paym~nt for the Bonds shall be made by Trivesco in immediately available f'mds and the City shall deliver: t.he Bonds to Trivesco at the offices of the City on the date the City accepts and enters ~ Waterford 3rd Addition, t]iJAny available funds remaining after payment of semiannual principal, interest and administrative expenses shall be used to prepay outstanding principal. -...., ! '_I . ..:".. _' r . ,..;: ...' e e int.o all of the contracts n.l.:v,.:eszt1.x,'j-' fox. the construction of the "PubU.c Improvements" (Ie-scrlb,~d In Sub8(~ction :2.09 of the Tax Increment Financing Plan for TIF Dislrict 1 adopted by the City on _..____ __, 1990 (th9 "'rIF P1MI"). The date and time of such payrn~~n.t and de15.v.31:'Y f})~(~ hf.H:€lin called the "Closing Date". The BondEl will be dl-11i vcn:ed in defini tive for.m, in the deJ':.ominations and r.t~gistered in the n~\Ines .t:equested by TriveBCO on or beforA the Closing DBte, and the Bonds sholl be made available to Tri veaco and i t.s at torneYB for 5.nspect.ir:Hl pr lor to the Closing Date. 2. Use of Bond F.l:~~~~l2:i!\~.p..i...-l~d j\.\s.tJl\eD_t;;_'_r~.t. Bond ~ount;.. The Ci ty agrees tha t. the rn:oceeds of the Bondo Wl.l1 be used to pay for Construction of the "Public ImprovBments" described in the TIF Plan that were previously to be financed by the aale of the City's GAneral Obligation Bonda. hn itemization of the amounte to be paid from the proceeds of the Bonds 1s liB followsz Public Improve1Hlenta construction cost.s: Administl':.ations AddltJ.onal Adminis t.X"/-1 tlvn COBtS I Engineeringt Bond lfHmance: Contingency: Subtotal: Minus: State aid funds: $1,029,000.00 53,000.00 15,000.00 150,000.00 16,000.00 1031000.00 $1,366,000.00 216,000.00 Net Revenue Bond amountt $1,150,000.00 @ Ir:lt.erest \'0'111 !'lCCnle f::"om t.h~ date c)f iSfH1ClI:\r.e ()f the B<;mdo/fbut w11l not be payable unt11 tAx Lncrement 16 aVtl~lable at wh1ch time the incrBmen t. wi J.1 be \1sed to f irl:' C ref)ttY acc:t:l1ed interest 1,71 th the balance being applied t<) the scheduled peincipal and int,(lreat pll}'J11~nt-.B. If the actual nggH~9i1te cost of: the "Public Improvements II Dnd II Oth(~r Public Contr:;" deBet'ibEtd in the 'I'IF Plan is lesa than $1,150,000.00, the orJglnal prIncipal amcnmt of the Bonds will be reduced accordingly. Upon complet.i.()[) of construction of the \Ipublic Improvmn0trts" described .tn the 'I'IF Plan, all excess Bond proc~eds, ,,,holhen' for contln<;Jency i.t~ or other "hard cost" or "50ft cost" items will be repaid t~~e3CO aa ~ principal reduction payment on the Bonds. 3. Additional Security. No lJotteJt. of Credit or AS8~Bsment Agreement ----wflr-be required to secu:r:O the Bonds. BO'dever, as additional security for repayment of the Bonde, Trivesco will racei ve Q Guaranty from Sh~~L1nl'tn-Boo!iD l.ls Interests lIne. (lfShe:crnan....Boo8Cil.ta") of tho rep<.1}'lnent of the Bonds. Trivesco will alao be granted a first mortgage lien by Sherman-Boosalis on the real property (~olllpr.ts lng Hat(.:)rford 3rd Addl tion. ..rhe terms and conditions of tllis Mortgage are to be negotiated between TriveBco and Sherman-Boosalie. At;; cldd.i.t:ional securit.y, Sh(~rman-Boosali6 "1111 agree, both wi thln II Developer' f3 Ag)':oeI\lEmt~ \-Ii th the City and 0which shall be the "Closing Date," -2- [E) the holder .of the Bonds as a principal I. _' . -, I i oj ,_, . ,,_, ,__, ,_I r . :_.i :_, e e in the Mortgage to be granted to Trivesco, to construct the conunercia.1.. and multi-family .tmprovernent.s wi thin Haterford 3rd Addition in I.\CCOrd6.nce ,...lth a (5chedule whi.cfL shall result in market valu~e for the re~l property cQmpl.'ist ng Waterford 3rd Addition which are no less than the values stated in the Schedule of Market Values attached to this Agreement as Schedule B. The terms and conditions of the PUD Developer's Agreememt between Sherman...noosalis and the City must be ncceptable to 'l'ri vesco and, specifically, contain a schedule acceptable to Trivesco for the Developer to complete both the commel"cial and multi..family residential phases of Watorford 3rd Addition. The Developer's Agreement with Sherman-BooeaU.s mu.st also contain a provision whereby the City agrees to accept Trivesco as the substitute developer in the event ShenMn-Bclosalis Inte:r:ests default.s in ita obligations under the Developer's Agreement. relating to the Issuance and Purchase of Bonds. 4 . Condl tion s / The ~ obligatiori *.~ purchase a11d 'p-a.i~ -for the n'onds is subject to and contingent upon the follovling cOrldi t.ions which are for the sole benefit ofyrriveaco; the Ci ty and a. Closing of the sale of the :t:9al property comp.r.isiw;y Waterford 31::,<1 Addltion to Sh9rman-Boosalis pursuant to that certain Purchase Ag!:'eelnent bl?:tween Trive8CO and Sherman-Booaalis dated OCLober 26, 1990. d~ b. Contemporaneously with the pur.chase of the Bonds by Trivesco, the City shall let contracts for construction of all of the "Publ iG IIl11?rovemerd.-.s" described in the TIF Plan, providing the proceeds received by the City from the sale of the Bonds are sufficient to pay for the cost of construction of the Public Improvements. DeLivery to Triv8f..HX> of an oplnion of bond counsel acceptable to Triveaco and the City, in fonn Qnd substance satisfactory to TrivElsco, that .the i.nterest. on t:he Bonds is exeIllpt from etate and fedl~ral income taxation. In addi tion, this opinion shall cover Bueh other l:elated matters as Trivesco aha11 reaBonnbly require. and Trivesco As ~6J Ulld' Closing Date I the Ci t.y /i'lhall have performed all of ~ obligati.ons and satisfied .:"\J.3. of the conditions to be performed or satisfied under this Agreement. c. The City shall have given final approval of the plat of Wa terford 3rd Add.). tion upon terms and conditions acceptable to Trivesco and said plat shall have been recorded. by Sherman-Boosalis. The City and Shermftn~Boo8ali8 GIHl.l1 have entered 'lnt.o a Contract for Tax Increment Finance Development and a PUD nevelcp~r' 8 A9rE~ement upon terms and condi t.1..ona acceptable to Trivesco. Trivesco shall consent to such Agreements, provided the terms and conditions thereof are acceptable to Trivesco, but shall not. be a party to either Agreement:,. '1'he City shall, ho.,,,(;:ver, have agreed that (Pof the City's to issue and Trivesco's obligation to -3- e. f. ..... _+ . "-,; I , 't L. . '__ I._'~. (- . ;_, I e e 'l'ri vesco is enti. tIed to be tind 'l-lill. be accept.ed by the City as the substitute developer in the event Sherman-BooB81i~ defaults in its obligations under either of said Agreements. g. As. of the Closin9 Date, ther(~ shall be no default in the performance of (1n~l of the te,nn8, covenants flnd condi t:iorts of any agl.'et~m~nt bet..,.,,,.}cn th~ City and Sherman-Boosalis regarding the d~veloprnent and f.tMltlclng of Waterford, 3rd Addition including t.he Contx'act for iJ'ax Increment Finance Development and the PUD Developer's A~reoment. On or before the SlofJing Dc~te, the City 6nd Trivesco shall execute f in.31 bO"~ docurnentBtion confonning to this Agreement and cQnta.i.n.ing such terrnG, covenants, conditions and represent8tions as Triveeco and it~ attorneys shall reasonably r~3queGt .~..o, amono;,l o1.:.hEn7t.hings, establish the tax exe!!!.!.)t 8t:atus~legality :a.n4 fiiarbltl:ibili't}. of the Bonds. CJ h. . 5. NQ_tic5~~__Jl!!~t ___G.(!~'_~'HinSL_ flaw. All comrnunica tiona hereunder snaIl be in writing and, except ~B oLherwis8 provided, shall be delivered lit, or mailed by first class United $t.Bt6S Mail t:o, the following addresses: '1'0 Trivescof 'l'ri vesco c/o Steiner & Koppelman, Inc. Attention: Mr. Thomas l\ox:donr.)h'Y 3610 South HighWAy 101 Wayzata, Minnesota 53391 vH th copies to: Randal Travalia Robert H. Mason Homes 14201 Excelsior Boulevard Minnetonka, Minnesota 55345 Nark z. Jones Highland Properties 5290 Villa Way Minneapolis, MJnnesota 55436 Jeremy S. Steiner Vesely, Miller & Steiner 400 Norwest Bank Building 1011 First Street South Hopkins, Minnesota 55343 ~Trivesco agrees to execute a disclosure statement whereby it attests that it is buying the Bonds with full knowledge of the condi tions and risks attached thereto. -4- :. _. ' --T I i-I U . _: i_,~. I . I_I,:. . e '1'0 Ci ty: City of Shorewood E. At ten t i on : La u ref1(;eA v~h it taker ( Ci t Y bdmird.S t ra tor 5755 country Club Road Shorewood, Minnesota 55331 With a copy tOt Glenn ~ Froberg Attorney at Law 17736 Excelsior BoulEward Minnetonka, Minnesota 55345 This Agreement shall be governed by and construed in accol.'dance with the laws of the State of Minnosota. 6. partiei in Interest. This Agreement shall be binding upon and shali fnure----totfi;~ bfmeflt of ffrive8CO and the City and their respect! ve partners t SUCC'~~88orB and assigns, and nr,) other.' person shall acquire or have any .r:ight. under or by virtue of this Agreement. 'rIds AgrElernent .ts intendl.~d sole1 y for the benefit of Triveaco and the City and no third party shall have any rights or interest in any provision of tllis Agreement or the procaeds of the Honds. 7. Counterparts. number of counterparts. 1'his l\.g.r"t~ement. may be exec;uted in any 8. ~mp!..?.te~___.f\.iI!:~~~!I~.!1.h. This agreement between the parties with purchase of the Bonds and may not be te:rminated orally, bl.\t onl}' by a hereto. Ag~eement is the complete respect to the issuance and changed I rl\o(li f ied, amended or writing signed by the parties 9. K.!!!'thez: Ass~rances, The City Hill at any time and from time to time. upon written request of Trivesco execute and deliver RIJc:h furth~r docnm~nte a.s Triv€,Elc') may ]~f:'IHH:mably :require In order to effectuate more fully the purposes of this Agreement. and Prepayment 10. ~il1!P~~~ill~n~_I.,_QJ.__~}!:y__s::()!?!.2.' Upon closing of the sale ofth~ rea 1 12r.opertj' comp,t'iR.ing ~'l'u ter'fo.~q }J.p, ..,~Addi tInn to She.r:man-Boosalis, C)'1'ri vesco \-:111 pay the Cl t.y ~ as and for reimbursement for,Otdrrl1niet.rat:ive costs related to th9 TIF Plan and incurred by the City. This payment will be considered an advance payment on the purchase of the Bonds by Trivesco and will he credi tad to ~YfJ}C;:~o on the Closing Da1:e. If the ~onds. are not issued, this ..~ payment \.;ill be J.:'eped.d to Trl.vesco by the City from the firat 8vf1il.,:'tbletax inc!:ements gener,\t.'fld by TIF District 1. Reimbursement to Trivesco of this $99,000.00 shall be lImIted 1:0 ~ reimbursement from the aforementioned sources. If t.:Ro forcgoin9 is in accot;dllnco ..:i th Y9U-:r undeltl;tllnding of tho;li "'9T'l:.iO'Illlent to iS~l\le th~on4s-,-k-irtKny sign and return 'to us t.h9-- on('lo$Qd dupJ.t.cflt.e oop.ics hereof, whereupon it \1111 beeemc n ~or on December 21, 1990, whichever first occurs, S and prepayment of -5- .. -. --" , j "-; . '.-,' '.' In the event that sai~9,000.00 is not paid to the C4It. on or before December 21, 1990, this Agr~nt shall become null and void, and Trivesco and the City shall be released from all further obligations thereunder. ~ Trivesco, a Minnesota general partnership By Steiner &. Koppelman, Inc., Ita Partner By Its By Robert H. t-lasof1 Homes, Inc., Its Portner By Its By Highland Properties, Inc., Its Partner By Its Cnnfl rraed and aCCf:pted 813 of the date first above written. CITY OF SHOREWOOD By l.tayor (Seal) And By City ~'AdninrstratQi./Clerk -6- ~ c? .~ ~~;;~ gft l-::l ~g: 0 ..... .-+ ..1 ...... "'i (') 6 '1 h$ * P to) :;':;::1 ~. ~ [j) (') >-1 (') 0 .- .... (0 (',) . 11) Itl 9 ~'" (0 ,.. ...... .......0....... S..,;: rl- ~ W [ <:S~td .... C-c -;;. r+o -' ~~ p;o s:.:. ,.... [j) .... (;) ....... CIl ..- p-4Io ........ r=> n '" c: ~ [j) P> ....... r'" P a Q (\) -- ..." ~. .:} Q - 9 l--) .... ::1 ~ (l) ~ l-..6 .... ~ -.1 -'1 -.1 0 <:> 0 0 0 0 ~ 0;::;> r~ ~ C> .... ~ 0 Q co ~ r..., 0 0 0 <.n t,p \0 = I 0 = t'.;l .... <.J'\ W W (..) en I ,I'>. ,0- e> t-:> OQ (0 0 00 0 0 0 0 0 o:n (;) .... ~ ~ t.;7 ~ <.0 W 0 I .;:) 0 0 0 U) l.O 00 <::> 00 <::> c> w t.~ 0 <;;> 0 0 0 -:t t-' t'.;l I-' W .. ..to.. -'l ~ -=l -4 ..::J 0) <:') CO) .... 1-' ..... ~ t-:) 0 0 0 ~,) <.0 c:.o I-' ,p. r.o C) ~ <.J'\ 0 Cl 0 <::> .::.. <.J'\ ~ W <:) 0 r~ 0 <:::) 0 '=' <:;;> c c> 0 en t,p t.ll ~ t... e." ..., Q <:) (.) 0 W -'I I-' .... I M -.1 '" <;;:) (j, ..... (.') t,p tJ t-:) 0 0 <:> t-.'I U) <.0 C t..:l (,.. VI ,I'>. <.J'\ ...." 00 <::> ..... <.J'\ f.j 0 0 <:> c 0 <0 <::> 0 0 0 ~ to b"" 0 0') en (,.) .. .... .... en r.o 0 <.0 -~ f-O C) -.1 en 0 0') .... r.o l{:) t-') <:;;) 0 a >> en o:n .. ~ t.) V1 co co "=' 0 .". t.11 0 <0 <:> 0 0 0 e> <:> 0 0 ~ W 0:1 00 W .... I-" t~ <.J'\ 0 ()1 -.1 <D <0 --1 en 0 Q) ..... <.0 ~ t-~ 0 0 0 ~ -.1 en rl>o I-' <.J'\ c> = 0 0 .f>. V1 0 0 C> = 0 <;:) 0 0 0 = ~ I-' ~ W 0 <::) (,.) .... ..... OQ ",-A 0 ...... -'l <0 (,0 ..~ '" C> Ch H to <D t') <:::> C> <.n 0 t--:1 (Q -1 0 .t.. (.11 0 0 0 (J1 C> c;;) 0 0 0 0 0 0 0 0 .... ..... t-' W ,t>. 0 0 .... .... ~"t <.0 f-O ~ (J1 <:P ('J) )-A \0 <0 I-' '=' 0 VI t-.~ <0 00 t'-~ <::> 0 .t>- OO (J1 o:n <::> c> c.;) 0 0 = 0 0 0 C> . . . MAYOR Jan Haugen COUNCI L Kristi Stover Robert Gagne Barb Brancel Vern Watten CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD . SHOREWOOD. MINNESOTA 55331 · (612) 474-3236 MEMO TO: FR: DT: The City Council Larry Whittaker Dec. 7, 1990 RE: CONTRACT FOR WATER TREATMENT PLANT - PLANS AND SPECIFICATIONS When this was last discussed, the City Council instructed me to: 1. Check references on Associated Consultants 2. Review our other Professional Service Contracts for Insurance converagesi and, 3. Seek estimates from point-of-use water treatment firms to compare to the estimated costs for municipal treatment. 1. I spoke with representatives from four cities that have employed Associated Consultants to perform design work on their water systems. All had high praise for the firm. The treatment plants have been on line for as long as 31 years (a plant which Mr. Vogen obviously did not design) and as little as six months. All are meeting design standards. All cities were happy with the performance of the firm, the plants, and the water quality. Duane RUbidor, Supt. of utilities in New Prague, has used Associated since 1972 (in several communities). He said Mr. Vogen is very well qualified and did an excellent job on their Iron Removal plant - which has been on line for 18 months. It meets design standards, was built at a very reasonable cost, and gives them very good water. Bob Grebe, Water Dept. Supt. for Truman, said their plant has been on line just six months. It is performing very well and they are very pleased with the firm's work. He also said he is impressed that their fees and project costs are very reasonable. He appre- ciates the fact that they are "price reasonable". He said their plant is attractive without being grandiose. Elk River said the work Associated does for them is on the electric utility - not water. They have used the firm for a long time and are very pleased with the work. The firm comes well-recommended. ::Fb- \3 A Residential Community on Lake Minnetonka's South Shore .. . . MEMO, WATER TREATMENT PLANT Dec. 7, 1990 Page two 2. As I mentioned Dec. 3, there is no standard for the amount of insurance a contract for professional services should require. I think the most the City needs to require is an amount sufficient to cover the cost of the project - should it fail to work as speci- fied or an amount equal to our statutory liability. That amount would be $600,000. Now, their proposal to complete the work for $40,000 did not take into account this higher insurance cost. I think they should be allowed to revise their offer to reflect this. I also recommend the contract provide for: a. Design (plans and specifications) only; and, b. List their hourly rate for construction supervision and preparation of assessment rolls (which was not in their proposal, either, although they agreed to assist with the rolls within the proposed price.) 3. I thought the Council had decided further investigation of alternatives would not be necessary...until I talked to Council- member stover this week...as the Council voted to go ahead with Municipal treatment - based on the costs for point-of-use given at the public hearing. Mr. stover, however, thinks the City should secure quotes from several firms based on the specific water tests we have done on this well. I agree this would be helpful in determining if point-of-use treatment would be more cost-effective. I am sending a letter requesting quotes from several point-of-use firms to secure that information. However, it won't be available Monday night. THE LARGER ISSUE: Staff Qas discussed this at length and agrees that - even with all of these questions answered...and in spite of the fact that this decision has been postponed for a long time - this Council should table approval of this contract and additional work on the Water Treatment Plant until the City Council has agreed on the method we will use to finance the project. It is clear, now, that TIF funds will not be available until the tax increments are sufficient to retire the bonds for the original TIF project - probably 1995-96 at the earliest. The Council has not agreed order a 429 project and assess the costs to benefitted property owners. It has been discussed and seemed to be acceptable to those at the public hearing; but, each time it was discussed, the Council indicated that the TIF would pay, at least, part of the cost. ~ . . MEMO, WATER TREATMENT PLANT Dec. 7, 1990 Page three We need to have a firm commitment from the Council on the financing of the project before we commit another $30,000 to $40,000 to engineering. We may need to hold another hearing on the project if we intend to assess everyone who will benefit from the project in the future. The original notice wnet only to those currently connected to the plant. It did not go to those in Shady Hills or other areas not already on the City's water system. Although they would probably not be assessed - or charged - until they actually connect to this system, a new hearing would be a safer way to proceed. We could avoid a new hearing and agree to charge them for the benefit with a connection charge when they do tap-in (rather that assess them for it); but, that may be a hard sell to those already getting this quality of water from Minntonka. In summary, I recommend we table the contract approval until: a. We have the new cost and other information from the Engineer; b. We have the quotes from the point-of-use industry; and. c. We determine the method of financing. . December 3, 1990 . MAYOR Jan Haugen CO UNCI L Kristi Stover Robert Gagne Barb Brancel Vern Watten . CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD . SHOREWOOD. MINNESOTA 55331 · (612) 474-3236 Mr. Bob Polston, President Munitech, Inc. 2373 Wilshire Blvd. Mound, MN. 55364-1634 RE: 1991 Contract Dear Mr. Polston: I would like you to consider extending your current contract with the City of Shorewood, wi th the same terms and conditions, through March 31, 1991, so that the new City Council might review a proposal from the city of Excelsior for maintenance of Shorewood's water and sewer system. I think this extension would serve us both well. It would give you time to meet with me and Don Zdrazil to go over your records for Shorewood. It would give the city of Excelsior an opportunity to complete their review of our maintenance operations so that they might prepare a better proposal for maintenance and review it with their new city Council. And, it would assure Munitech and the City the.continuity we both need to run our operations smoothly. Both Mr. Zdrazil and I believe it is important for the City to review the costs and services Munitech has provided. We believe it is time to compare them to those that Excelsior might provide. And, we think it would be better to continue under the current contract for three months instead of contracting with Excelsior on an hourly basis until they can firm up their proposal. If, after reviewing all the information, we decide to continue with Munitech, the interuption would be cumbersome. Now, we must schedule a time to go over your records by December 15, 1990. This has been delayed too long. And, we will need that information to critically evaluate the Excelsior proposal and your performance of the contract. 1f-;L{ A Residential Community on Lake Minnetonka's South Shore "-,-"-~_,~,_,~,,~__~._~:,~,,,,_"-:':":7~,.... ,-......~..,('-. "'-"1::__':';.,;:~ . . Mr. Polston December 3, 1990 Page two Please contact me or Don on December 10, 1990, and let us know when you will be available and if you wish to extend the current contract through March. I will refer your proposal and answer to the City Council December 10, 1990, at their Regular City Council meeting. If you have any questions, comments or concerns you would like to share with me, Don or the City Council, please let me know before the December 10, 1990, meeting. Thank you very much. Very truly yours, Laurence E. Whittaker city Administrator IUNITECH,INC 2373 WILSHIRE BOULEVARD MOUND, MN 55364.1634 Phone: 612/472-2718 July 31, 1990 City of Shorewood 5755 Country Club Rd. Shorewood, MN 55331 Attn: Mr. Larry Whittaker City Administrator Dear Larry, This letter is our proposal for renewal of our contract to provide operation maintenance of Shorewoodts utility system. I would like to outline for you and the council what is involved and the man hours required to operate and maintain the utility system. The following breakdown is for the year 1990: 2731 man hours for normal daily inspections of wells, lift stations, flushing hydrants, cleaning pump houses and lift stations, cOllecting water samples, testing water, scheduling appointments for customer service, preparing reports for state health department. Confined space entry program and increasing maintenance requirements for lift stations account for increased hour requirements. 375 man hours for electronics technician and helper. This includes cleaning of motor starters, troubleshooting control problems, normal preventive maintenance on all equipment in wells, lift stations, as well as on chlorine and fluoride feeders. Also included is callout time for repair or maintenance needed caused by thunder storms, power failures, etc. 301 man hours for inspections of new water and sanitary sewer services installed, preparation of records and locations. 200 man hours reading and repairing water meters. 208 man hours of on-call, week-end, and holiday checking of equipment. 160 hours of actual overtime for call-outs on after hours, week-ends, and holidays to take care of failures and answer complaints. As you can see, 3775 man hours are required and over 10,000 miles on a vehicle to operate and maintain the utility system. Also included in our contract is general liability insurance, workers compensation insurance, and auto insurance. We are also providing vehicles and small tools to operate and maintain the system. Our contract expires at the end of 1990. We would like to continue providing service on a contractual basis for Shorewood. We are there- fore submitting our request for a new contract at this time. We are proposing a two year extension of the contract for 1991 and 1992 for a fee of $5800.00 per month. UTILITY SYSTEM MAINTENANCE . SERVICE FOR ALL MAKES OF METERS . SPECIALIST IN FLOW METER REBUILDING . . I believe when the total cost of operation is considered and compared to our contract, we are able to provide a very cost effective alternative to the in-house operation and capital outlay that would be required by the City. We are offering the services of certified water and waste- water operators, and also the services of a certified electronics technician. We would like to take this opportunity to thank you, the city council, and the citizens for the chance to serve Shorewood over the past six years. We hope to continue operation of Shorewood's systems assuring you of our continued efforts to reach the best professional and highest quality of service possible. Yours truly, ;;gtdl1~ Bob Polston President, Munitech, Inc. BP/jp ...--> tMUNITECH, INC. DEe - 7 19':.0 2373 WILSHIRE BOULEVARD MOUND, MN 55364.1634 Phone: 612/472.2718 December 5, 1990 Mr. Laurence Whittaker, Administrator City of Shorewood 5755 Country Club Rd. Shorewood, MN 55331 Re: 1991 Contract Dear Mr. Whittaker: This is in response to your letter which we received Wednesday, December 5, 1990, requesting that Munitech extend our current contract through March 31, 1991. We regret to inform you that this is not acceptable to us at Munitech, Inc. There are a number of reasons for not wanting to extend the contract for such a short period. One of the major reasons is that we purchase insurance coverage for the contract period, and an extension would be too costly for us. Shorewood requested that we submit a proposal for a new contract in July, 1990, which we did on July 31, 1990. I brought the proposal in and discussed it with you. You indicated to me at that time that there was interest on the part of Excelsior and Shorewood to acquire a proposal from Excelsior for the new contract period. It was my understanding from our conversation that the proposals must be in by the time the budget was prepared so Shorewood could decide on either Munitech or Excelsior for the new contract period. The breakdown of man hours required to operate and maintain the utility system that we provided in our July, 1990 proposal substantiates the need for Munitech to plan it's budget far in advance, just as the City needs to do. You or Mr. Zdrazil are welcome to review and have access to any records we have on Shorewood at any time. Because of the large file of records I have asked Mr. Zdrazil on a number of occasions what records he wanted, and I'm still not sure what he wants to see. Our office hours are 8:30 a.m. to 5:00 p.m. Monday through Friday. I would like to suggest that we meet here at our office at your conven- ience to go over the records we have. When we started to provide Shorewood with service on January 1, 1985 we were never provided any records for well and lift station opera- tion and maintenance. Therefore, the only records we have are what we have built in our file. We have greatly enjoyed providing service to the City of Shorewood since 1985. We feel new challenges have been met as the system expanded and many improvements have been made to help the system run smoother. We have worked hard to provide the most effective cost efficient service possible to the residents of your City. We had :\:t'~ UTILITY SYSTEM MAINTENANCE . SERVICE FOR ALL MAKES OF METERS · SPECIALIST IN FLOW METER REBUILDING . . Mr. Whittaker December 5, 1990 Page two looked forward to continuing our work with you over the next two years, and in fact, expected that our contract had been approved because we hadn't heard anything to the contrary since we submitted our proposal in July. We are frankly very surprised to receive your letter at this late date. If your intentions are not to renew the contract for two years, we must inform you that our last day of providing service will be December 31, 1990 when our current contract expires. Again, we wish to express our gratitude to the Staff, City Council, and Residents of Shorewood for the opportunity to work with you over the past six years. Very truly yours, I~/;(l~ Robert D. Polston President, Munitech, Inc. . . NOV 2 8 Il8l CITY OF EXCELSIOR 339 THIRD STREET EXCELSIOR, MINNESOTA 55331 TELE: 612-474-3464, 474-5233 OFFICE OF DIRECTOR OF PUBLIC WORKS November 27, 1990 Mr. Larry Whittaker, City Administrator City of Shorewood 5755 Country Club Road Shorewood, MN 55331 RE: Joint Use Sanitary Sewer Service Rental Contract and Billings for 1989 and 1990 Dear Larry: We apologize for the delay in the preparation of these documents. with the budgeting process and working with our legal personnel, we were unable to meet your November 15, 1990 request. Attached is two original Joint Use sanitary Sewer Service Rental Agreements, which has an Exhibit A attached that shows the formula used to calculate the agreement which was proposed to you earlier. Also attached are billings for the years of 1989 and 1990 for the sanitary sewer service provided. Please execute both originals and return them to my attention. After I receive them I will have them executed by our city Officials and return one original to you for your files. . If you have any questions please feel free to call me. Sincerely, CJ~~ Carl man Dire or of Public Works CZ : cj Enclosures - 4 titS \ \ . . JOINT USE SANITARY SEWER SERVICE RENTAL AGREEMENT BETWEEN THE CITY OF EXCELSIOR AND THE CITY OF SHOREWOOD WHEREAS, the Metropolitan Waste Control Commission no lo~ger will enter into rental agreements with the City of Excelsior to provide compensation to Excelsior for sewer service offered by Excelsior to Shorewood; and WHEREAS, the City of Excelsior has negotiated with the City of Shorewood to allow for the collection of such costs directly from the City of Shorewood; and WHEREAS, the City of Excelsior and Shorewood have reached an agreement for the determination of costs attributable to the city of Shorewood's use of Excelsior's facilities. NOW THEREFORE it is agreed and contracted as follows: 1) In consideration of the Excelsior Agreement to provide collection costs, various capital outlays and general and administrative expenses, Shorewood agrees to pay to the City of Excelsior during the term of this agreement an amount equal to Shorewood' s share of costs for these services as shown on the attached Exhibit 1; 2) The City of Excelsior agrees to provide its budget amounts for the coming year to Shorewood and its calculation of Shorewood' s rental obligation to Excelsior on or about January 1 of each year of the term of this agreement; 3) Shorewood agrees to pay one-fourth of its total obligation on April 1, July 1, October 1 and December 31; 4) Shorewood agrees to take effective steps to prevent inflow and infiltration of water into its sewer systems; 5) Shorewood further agrees to a readjustment of rental costs in the event that additional units are added to the sewers covered by this agreement; __.._~_.,.___.n__._,.________-_._~---".---,~-.-.,--_..-.--.-.."'.--""- . . JOINT USE SANITARY SEWER SERVICE RENTAL AGREEMENT BETWEEN THE CITY OF EXCELSIOR AND THE CITY OF SHOREWOOD Page 2 6) The City of Excelsior agrees to operate and maintain the interceptors in good operating condition and to pay all costs thereof; 7) The City of Excelsior agrees to provide access to its books and records for the purpose of demonstrating collection costs, capital outlays and administrative/general costs; 8) Renewal of Agreement. This Agreement shall be effective for five years. IN WITNESS WHEREOF, the parties have executed this Agreement this day of , 19 City of Excelsior City of Shorewood James R. Olds, Jr., Mayor Jan Haugen, Mayor Gregory S. Withers, City Manager Larry Whittaker, City Manager A. B. . EXHIBIT A . FORMULA FOR CALCULATION OF JOINT USE RENTAL COSTS Collection Costs Capital Outlays Administrative/General Total Costs X + Y + .24Z = Number of Million Gallons of Excelsior Total Sewer Flow C. Shorewood's Sewer Flow = into Excelsior Calculated by Million Gallons X Cost Per Million Gallons X Y .24Z X + Y + .24Z Cost Per-Million Gallons Shorewood I s Share of Costs _.._.....~..._-_..._..__.*.,_...._-,-"---._-....,----_.__. .'. - . . Dec. 6, '1990 To: City Council From: Sandy Kennelly Reference: RECYCLING CONTRACT As of Dec. 6, 1990, a final recycling agreement has not been completed. I am submitting a revised first draft copy to you for review. I will be attending another meeting at 1:00 P.M., Dec. 7, 1990, with the representatives of the lake area communities involved in the joint powers recycling agreement. I have been assured that a final draft will be available on Dec. 10, 1990 for final review and approval. The enclosed contract is very close to a final draft. Any additional changes will not greatly effect the results of the final contract. . I " ~ . . . . AGREEMENT FOR RECYCLING COLLECTION This agreement is made on the between the city of day of , 19_, -- , located at , Minnesota 55 Inc., a Minnesota corporation, , ("city") and Knutson Services, ("Knutson") . ~.~': The purpose of this statement is to set forth terms and conditions for recycling collection by Knutson for the city. l~ The City and Knutson agree as follows: ~~ SECTION 1. DEFINITIONS Jr ~ A. "Recycling collection" means the picking up of all recyclable materials accumulated at^mutually agreed upon \~ residential properties and other City designated tJI' collection stops in the City and the transporting of the .~V ~ ~~~k~~~ble materials to a specified processing site or ~~'&~ 1r'v B. "Unprocessed local spot market" (ULSM) means the monthly i!lsf.'J':;- ifi weighted average price per ton a specified processing site ~ or market including Hennepin County would collect/charge ~~~. for accepting a specific material. The proceesing ~ site or market is subject to change upon mutual agreement by the city and Knutson. C. "Material proceeds" means a positive ULSM multiplied by the tons collected. D. "Material disposal fees" means a negative ULSM multiplied ..by the tons collected. E. "Material tipping fees" means an ULSM does not exist and the material has to be landfilled or incinerated. SECTION 2. PAYMENT A. As described in attached Exhibit A, the City will compensate Knutson for the performance of its obligations. . . SECTION 3. OBLIGATIONS A. Knutson shall provide once-a-week collection services for all rec~clable materials on of each week. Collect1ons will begin on ,~~__. B. Materials to be collected: Knutson will collect the following recyclable materials, placed by the resident in or near a container ~laced at curbside assuming the preparation of mater1als: Newspaper - Includes all advertising supplements contained in a daily newspaper and Sunday edition ().. placed in a bag or bundled in or alongside the ~. container, v~v c Glass - Mixed clear ,brown and green glass food and v",: . ... beverage containers. Lids and labels ~t.' Metal Cans - Unsorted aluminum, steel, ti~and bi-metal. - cans. Labels~. ClY N/'0\i~ ~ Plastics - Unsorted plastic bottles. Promotions will ask people to remove lids. Corrugated Cardboard - Broken down and placed in or next to the container. ~ ~v~ cities may require additional material~e added to collections for an agreed price after January 1, 1992 or when markets for the materials exist. Improperly prepared recyclables, that is recyclables not reasonably free of food, dirt or other contaminants, or ~ materials other than those specified above can be left in JV the container along with an education tag identifying tha~V;J~ clv:.tt, material as not being collected in this program. The~ityl.~ <:; .A will be responsible for providing education tags to ~ ~~V Knutson. Knutson will be responsible for educating ~ . collection vehicle drivers. C. Reporting requirements: Knutson will be required to report the following information: .. Knutson must report weights of recyclables collected on a monthly basis. Knutson must provide certified weight receipts for all materials collected within 15 days of the end of the month for the previous month. If each material is not weighed separately on an on-going basis Knutson must indicate the ~rocedure that will be used to determine individual mater1al breakdowns. The city may require Knutson to separately weigh each material at any time at its discretion and at no additional cost to substantiate accuracy of the proposed procedure. Knutson must report, by individual materials and amounts, where materials are delivered for recycling. state law requires counties to ensure that the materials are recycled. Consequently, if Knutson delivers · tZif~. ~~ ~l materials to a broker 'Knutson must report what end - market the broker used~ Summaries by brokers and end markets must be provided within 15 days of the end of the month for the previous month. Brokers or recyclable processors receiving materials must have the appropriate ~ state and local ~ermits or licenses. If materials are A~ stored for a per10d longer than 30 days by Knutson, the \0 amounts Of. materials by type and location of storage~~~- must be reported. VQ Knutson must provide set-out rates using a method acceptable to the City for all households placing / recyclables out for collection during the months of May and October and must be reported within 15 days of the end of the respective months. Knutson must report the gross revenues received from the sale of recyclables, by material, on a monthly basis. D. Equipment Requirements: Knutson must obtain a license from the County for each recycling vehicle or trailer. There is no fee for the license. All vehicles must be maintained in proper working condition and be available for inspection by the City and Hennepin County. Vehicles should be equipped with warning flashers, a broom and shovel for spills and Knutson's name and telephone number prominently displayed on both sides. E. Missed collections: A procedure for receiving and responding to complaints of missed collections shall be mutually agreed upon by the city and Knutson. F. .' Holidays: A procedure for Holiday collections shall be mutually agreed upon by the City and Knutson. G. Market development: The City reserves the right to require Knutson to deliver up to 25% of the collected newsprint for market development purposes to a location within Hennepin County. . . SECTION 4. MATERIAL REVENUE SHARING A. positive ULSM: The ULSM for a material is zero or higher. Knutson will pay to the City 1/3 of the material proceeds on a monthly basis until the ULSM exceeds the price below. When the ULSM exceeds the price below, Knutson will pay on a monthly basis: 1/3 of proceeds calculated by multiplying the tons collected by the price below, plus Newspaper Cardboard Glass Aluminum cans Bi-metal cans Steel cans Unsorted plastic bottles l I ,~ i'\ll \DO' ~ \~' . :I' u ~:::~-:;i~:-~::_:~~ \ 00<.. r{.Y' $20 ~~v r\L' mg ~s>~;r $4 0 \.:~ t}. $72 100% of the proceeds calculated by multiplying the tons collected by the difference between the ULSM and the price below. Material B. Negative ULSM: The ULSM is below zero (Knutson has to pay for disposal). The City will pay to Knutson 2/3 of the material disposal fees on a monthly basis. C: ULSM does not exist: The collected materials shall be landfilled or incinerated. The city will pay to Knutson 100% of the material tipping fees. SECTION 4. TERM The term of this agreement shall be Jc,--,<- Qu. . :il, 1993. -L, 1991 to - SECTION 5. CANCELLATION Either party may cance~ this a~reement at any time, without cause, upon sixty ~ days wr1tten notice to the other party. In such event of termination, Knutson shall be entitled to payment of those services furnished up to the termination dater qo-(~O ) 1 ~ . . SECTION 6. GENERAL CONDITIONS A. All services and duties performed by Knutson pursuant to this agreement shall be performed to the satisfaction of the City and in accordance with all applicable federal, state and local laws, ordinances, rules and regulations as a condition of payment. Knutson agrees to comply with Minnesota statutes 181.59, relating to non-dicrimination. B. Knutson must obtain and provide the City with a certificate of insurance indicating the following minimum levels of insurance coverage are in effect: Workers' Compensation: statutory Property Damage: - $ $ $ $ - $ $ Contractor's Public Liability Insurance: Automobile Public Liability: ?? The certificate of Insurance shall contain a prov1s1on that the coverage will not be cancelled without thirty (30) days prior notice to the city. C. Knutson shall execute and deliver to the city a performance and payment bond with a corporate surety in the sum of $ . This contract shall not become effective until such a bond in a form acceptable to the City, has been delivered to the City and approved by the City Attorney. This agreement shall be subject to termination by the City at any time if said bond shall be cancelled or the surety thereon relieved from liability for any reason. Extensions or renewals shall require the execution and delivery of a performance bond in the above amount to cover the period of extension or renewal. D. Knutson shall indemnify and hold harmless the city, its employees and agents, for all claims, damages, losses, and expenses, including, but not limited to, attorney's fees, which they may suffer or for which they may be held liable, as a result of the fault of Knutson or its employees. . . . . E. The ~rovisions of this agreement are severable. If -any port~on hereof is, for any reason, held by a Court of com~etent jurisdiction, to be contrary to law, such dec~sion shall not affect the remaining provisions of the agreement. F. This agreement embodies the entire agreement between the parties including all prior understanding and agreements, and may not be modified except in writing signed by all parties. CITY OF KNUTSON SERVICES By By By By e-t>L1- ~ ~~ IJ clef). ~ lL.J..~ O-J-u--L . . I C4- cR./Lo-t/ _ ()-/;I iL-lJJ.-P ,,_..;. - ----_..~-----_._.--_..,- - -- ---.-..-.- --. . NOV 2 8 tggJ CITV-OF CHANHASSEN 690 COULTER DRIVE. P.O. BOX 147. CHANHASSEN, MINNESOTA 55317 (612) 937-1900. FAX (612) 937-5739 November 28, 1990 Larry Whittaker, City Administrator City of Shorewood 5755 Country Club Road Shorewood, MN 55331 RE: 1991 Animal Control Contract Dear Larry, Attached please find the contI' be provided by Chanhassen Public or animal control services to fety for 1991. Because the contract has changes are in paragraph slightly over 6%. well during 1990, the only fleet a fee increase of We would appreciate your~igning thi document at your earliest convenience and returning/it to us, anJi it will be returned to you upon being signed byy)Chanhassen. THANK YOU VERY MUCH FORWARD TO SERVIN A MOST COOPERAT S~i ~e.. ely, /.~ (jJ Scott Harr Public Safety Direc or SH: cd Enclosure #11- . ************************ ANIMAL (x)NTROL AGREEMENT . ************************ This agreement made this day of , 19___ by and between the City of Chanhassen, hereinafter referred to as "OIANHASSEN"; and the City of Shorewood, hereinafter referred to as "SHORE.WOOD", witnesseth: In consideration of the covenants and agreements hereinafter set forth, it is mutually agreed by and between the parties hereto as follows: 1. This agreement shall be effective as of January 1, 1991 and shall continue in effect until December 31, 1992 unless cancelled pursuant to this agreement. 2. CHANHASSEN agrees to patrol the public streets of SHOREWOOD in accordance wi th a schedule provided by OIANHASSEN, agreed upon by SHOREWOOD. If necessary, CHANHASSEN agrees to transport animals as it deems appropriate. ~~SEN will attempt to notify South Lake Minnetonka Public Safety Department prior to impounding any animal. 3. CHANHASSEN agrees to provide personnel and equipment to provide animal control services. Said employees shall perform their duties in proper attire, utilizing a marked Chanhassen Public Safety vehicle whenever available. These employees shall be in uniform or have City of Chanhassen identification. 4. SHOREWOOD shall author i ze ~1'.ffiASSEN to apprehend and retain domest i c ani- mals and/or issue citations or warnings for violations of city ordinances. Wild animals shall only be dealt with if presenting dangers of personal injury or significant property damage. However, OIANHASSEN shall not invade private property contrary to the wishes of the owner of said pro- perty, nor forcibly take an animal from any person without the approval and assistance of a peace officer having jurisdiction in that city. 5. In addition to regularly scheduled hours of patrolling, CHANHASSEN agrees to respond to "emergency call-outs" from SHOREWOOD. ~'\1JIASSEN will have an officer scheduled to respond to such call-outs, to be billed to SHOREWOOD at the rate of time and one-half per hour with a minimum of two hours. CHANHASSEN shall respond at the earliest opportunity to such requests, including bite cases or injured animals, as deemed appropriate by CHANHASSEN . An "emergency call-out" is defined as a specific request for animal control service during times that an officer is not on duty. If a Chanhassen Ani- mal Control Officer is on duty, even though not assigned to SHOREWOOD, said officer will respond, applying the time to the regular schedule (so that this would not be considered an emergency call-out). If deemed appropriate by the Chanhassen officer on call, a situation may be dealt with over the phone, in which case no fee will be charged. 6. CHANHASSEN agrees to coordinate services with the Chanhassen Veterinary Cli- nic, 440 West 79th Street, Chanhassen, MN 55317, as long as this arrange- ment is agreeable with the Chanhassen Veterinary Clinic. , Animal Control Agr. eem. Page 2 . 7. OIANHASSEN shall furnish monthly reports to SHCRElVOOD reflecti~ the charges for such veterinary fees as well as patrol and emergency call-out fees, which each ci ty agrees to pay OIANHASSEN wi thin 30 days of.. being billed. 8. When'an animal is iq>ounded by OIANHASSEN pursuant to this animal control contract, said animal shall be held in accordance with Minnesota Statute 35.71. This statute includes, among other things, that inpounded animals will be held for at least five "regular business days" (as defined by lwbl.Stat. 35.71, Subd. 3). In the event that any iq>ounded animals are unclaimed after a maximum of 7 days (5 "regular business days", and possibly 2 partial days), the animal becomes the sole responsibility of the Chanhassen Veterinary Clinic to be placed or disposed of at their discre- tion. . 9. OIANHASSEN shall maintain reports on Chanhassen forms, or utilize specific forms as requested by SHCRElVOOD. A monthly report of activity shall be provided to SHOREWOOD. 10. The City of OIANHASSEN will indeimify and hold harmless SHOREWOOD for claims, suits, actions, damages and loss arising out of the negligence or misconduct of the City of CHANHASSEN in conjunction with this agreement. 11. SHOREWOQD agrees to pay CHANHASSEN for services in the performance of this contract, pursuant to Paragraph 15 of this contract, as follow: A) Price per hour - per vehicle for scheduled patrol based on actual time in service for the CITIES...................$23.40 B) Price per emergency call-out.....................2 hour minimum at time and one-half per hourly rate. (minimum callout fee $70.20) C) Impound, boarding, euthanasia, disposal and any other veterinary fee, as charged by the veterinary clinic. D) It is agreed that if the designated boarding facility or euthanasia/ disposal service is unavailable, SHOR.I!.WOOD shall authorize CHANHASSEN to obtain these services elsewhere, and SHOREWOOD shall pay OIANHASSEN the rates of the alternative facility. 12. SHOREWOOD shall pay any veterinary bi 11 incurred for unclaimed animals iD1>ounded from SHOREWOOD. Owners claiming their animals shall be charged the veterinary bill in its entirety, including inpound fees. 13. All payments shall be made by SIICREWOOD upon receipt of monthly statements from OIANHASSEN within 30 days. 14. Because this is a joint effort involving the cities of SHOREWOOD, VICTORIA, EXCELSIOR, TONKA BAY, GR.EENW<X>D and OIANHASSEN, it is agreed upon that any modifications to, or withdrawals from this contract shall require the written authority of each party. SHOREWOOD agrees that in the event that one or more parties seek such change, including withdrawing from the con- tract, said party (or parties) shall remain obligated to pay for their agreed upon number of contract hours unless otherwise agreed to by all parties pursuant to this Paragraph for the remainder of the year. Animal Control Agreeme. Page 3 . 15. SHOREWOOD further agrees that the fees reflected in this contract are in effect only for the calendar year 1990, with the remaining two years to have fees agreed upon by all parties to this contract within 30 days of that upcoming year. If all parties are unable to agree to a fee schedule for that particular year, it is agreed that the contract will then end at the conclusion of the year that is currently in effect. 16. Under no circumstances shall aIANHASSEN be obligated to respond to any request for assistance or to patrol when, in the sole discretion of the Chanhassen Public Safety Director or his duly authorized agent, any one of the following conditions exist: (1) when necessary personnel and/or equip- ment are engaged elsewhere, (2) when road or weather conditions constitute a hazard, (3) when providing assistance would expose any person to unreaso- nable risks. 17. The time and manner in which service is rendered, the standard of perfor- mance and the control of personnel employed to render such service shall be determined by ~~SSEN. ~~SSEN reserves the right to alter sche- duling should conflicts arise (i.e. CSO schooling, illness, vacation, etc.). 18. ~\~SSEN agrees to patrol the public streets of SHOREWOOD and respond to animal control calls during regular patrol hours pursuant to this agreement in SHOREWOOD 10 (ten) hours per week. CITY OF ~'tIffiASSEN BY: Donald J. Chmiel, Mayor A.\TD Don Ashworth, Ci ty Manager CITY OF SHOREWOOD BY: Mayor MTD Clerk MEMO TO; FR: DT: . . MAYOR Jan Haugen CO UNCI L Kristi Stover Robert Gagne Barb Brancel Vern Watten CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD . SHOREWOOD, MINNESOTA 55331 · (612) 474-3236 The City Council Larry Whittaker Dec. 7, 1990 RE: 1991 Pay Plan and Employee Pay Adjustments On September 17, 1990, the City Council approved the attached Pay Plan for 1991 and revised the policies which govern these ranges. However, the Council did not have time to review individual employee performance and set the compensation for each employee at that meeting. Normally, those adjustments would be approved before the end of the year so that adjustments may begin January 1...with the first pay period of the year. Although we have a very full Agenda, I think this Council should make the decision on compensation as you have worked with the Em- ployees for at least two years and are in a better position to evaluate their performance than the new Council will be. My recommendations are in line with the Pay Plan and policies you adopted in September - except that I have asked that I be moved to 95% of the top because I did not receive an adjustment in July as promised; and, I am paid less than most Administrators in Group 6 of the Stanton Survey even though I have more experience. I therefore recommend the city Council approve the following pay rates for the employees - effective January 1, 1991: position Rate Hourly Increase $ 9-- 0 AA for Parks/Asst. Clerk $26,716 $12.84 $2,562 10.6 Receptionist/Secretary 20,062 9.65 1,462 7.8 Finance Director 39,175 3,175 8.8 Sr. Accounting Clerk 21,515 10.34 2,060 10.6 Planning Director . 39,452 1,952 5.2 Building Inspector 30,546 2,391 8.5 AA for Planning 26,716 12.84 1,405* 7.0 Public Works Director 42,558 2,458 6.1 City Administrator/Clerk 46,470 3,970 9.3 * The AA for Plannning works 32 hours/week; so 80% of increase is shown A Residential Community on Lake Minnetonka's South Shore '. . . Memo, 1991 Pay Plan Dec. 7, 1990 Page two These rates reflect the new policies in the Pay Plan adopted in September. Under the old guidelines, employees could reach the top of the Pay Range after three years. The revisions in September expanded that to five years. Therefore, the total increase in compensation is lower than the estimate for salary adjustments in the approved 1991 Budget. The total cost of these adjustments (including the adjustment for Public Works employees) is $34,602 rather than the $42,078 budgeted. Using the new guidelines, all of the newer employees and those who were recently promoted will receive lower adjustments than origi- nally proposed. This means that the Receptionist, Finance Director, Senior Accounting Clerk, Building Inspector and Planning Assistant will be a "step" lower than they would have been under the old plan. I am asking that my salary be set according to the original plan - or I, too, would be a step lower than assured last year. I believe these adjustments provide adequate compensation for the positions and incentive to continue the level of performance we now have from these employees. However, I believe expanding the Pay Ranges has a dissatisfying effect on employees who understood that they could reach the top of the Range over three years - not five - when they were hired or promoted. The 4.1% increase in the Pay Ranges does compensate for this somewhat; but, it should have been on top of the step increases that have now been eliminated. These adjustments do keep all of the positions in line with the requirements of the Comparable Worth Statutes. Once the annual pay adjustments are reviewed and approved, I will consolidate the ranges, policies, and current rates into the 1991 Pay Plan. !'- i i I i \' ! j I i I i ~ , I i . f 1 ! i ! ., i j I 1 .~ 1- i Ii.,. 0::0- oa: 00. 7 we CCtll ce.") 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III q.. 0. .... -:r U1 " ....~~ :: ~ ,-I t1J ~ Z U III .... I..... ~ "- q.. ~.0"'4 ':1 u c tU CI (t ~ .... ~ .... III. ,:;; 1II..c I) l,.1 ::: at.... u 1'0 :: l'ti, ..c :t " ,:;;, ~ ':1:'" t) (I s.........r:. .....' .... .-...... ~ ~ s:"':' III a.. ::J " >, Ill' :.: (..-1 U. " ro UI ~ x III - C' Q/ ~, " III - >) III' ~, ~..... "C I.' l.I- ..... ~..... ~ 0...... .:. Ol..c III ~~, c. ..c cr" III III ..j.) ..>., >,..... t:J (J) !lJ.... :: .:::..c " ....C1~>,QJ ......... .:: to OJ ..c Gl :: U ~ .J: x ;;III..IIIQ/ III ... III .... ..III>) C.C (J >,.. I) III .:J :JI1II:......Cf .... s... -I-JI c...... ,-1lI~::JJ i=o.rowro fo") ...., III III U 0':;; ,;:; rG ~ t ,., m'; ..c :.. .... III a.. , ' o !l'q.. o lil :: i'.') .-.J .!~'l '-J '-oJ -..; ...) '-' . ;;:. ....:.: . .... " .~ .....:~'!' . ;:, ;-.~. .' :;:!..;" .:," .~;jr-t ~ .~':l . .~...:~'L ~ ~.:-! ~ CIT'! OF SHOREWOOD . COUNCIL WORKSHOP MINUTES. SEPTEMBER 17. 1990 COUNCI~AMBERS 5755 CO~RY CLUB ROAD PAGE 5 /_. I Stover wants an accounting of the revenues obtained for Parks and what has been spent in the Southeast Area already. Whittaker said that $148.000 was not the only cost for Silverwood Park. Stover asked if they should set aside money for a future water system. Haugen said they cannot budget for plans that are not approved. Stover moved. Gagne seconded. to approve the addition of $10.000 to the appropriation for the Public Works Site and $200.000 for tank removal cleanup ( and identify this as pollution clean-up) from the bond defeasance fund. Motion carried - 5/0. REVIEW 1990 PAY PLAN Whittaker felt that individual performances should be evaluated in an executive session but ranges should be set by the Council at this Workshop. Haugen asked if this pay plan gives the Council authority to set individual salaries. Can the Council set the pay rate or will Whittaker be setting the salaries? Whittaker said he would have the authority only if they gave it to him. Brancel asked why the pay plan was a three year plan. Whittaker said three years is the norm for cities. An employee learns the job in three years. Stover felt that the salaries should be tied to good performance not to the length of time on the job. Whittaker felt that employees want some kind of guideline for salaries. Brancel felt that the plan should have a beginning and ending salary but not a middle range or they will expect to move within the range. Haugen felt that performance is important. Whittaker said they should identify where the range starts and ends with a review after probation and each year after that. with raises based on performance. Stover asked what would happen when the top of the scale is reached. It does not reward good people. Stover said the Administrator does not have the authority to set salaries but he needs guidelines. This plan is too rigid. An employee might sue if he is not moved up. Haugen said there have been complaints of high salaries at the City level. Stover said they need to meet the market. Whittaker said they needed to consider pay for comparable worth. Whittaker said that Step 1 of the plan was for experienced people not trainees. The City should hire trained people or it will pay to train them. Brancel felt that Step 1 of the starting pay was not low enough. Whittaker said if the Council handles salaries based on finances alone. it will have a problem. Stover said the Council has no knowledge of each Staff member's performance. Gagne would like the flexibility to start the employee at less. Council members wanted to include the phrase: "After probation (6 months). the Administrator may suggest a salary adjustment.1I 5 ...." CITY OF SHOREWOOD . COUNCIL WORKSHOP MINUTES. SEPTEMBER 7. 1990 COUNCI~HAMBERS 5755 ~RY CLUB ROAD PAGE (PAGE) / Whittaker said a lot of work went into the salary ranges; they are in line with the Stanton guidelines and. also. a private sector salary survey and. these figures are already one year behind. Gagne felt that with a declining economy. they could hire people for less. Whittaker said statistic indicated that there is a 4.1% increase in wages and a 5.8% increase in inflation despite shifts in the economy. Watten moved. Stover seconded. to approve the pay plan with the following changes: 1. Keep the beginning and ending salary ranges but eliminate the middle steps. 2. Note * 1 should say: The pay range is based on averages for similar positions in cities with similar populations. number of employees. location and job descriptions. 3. Note * 2 should say: Normally, an employee would be hired at 80% of the TOP. 4. Note * 3 should say: After probation (6 months) the Administrator may suggest a salary adjustment. 5. Note * 4 should say: After 1 year, an employee could go to 90% of the TOP. 6. Note * 5 should say: After 3 years. an employee could go to 95% of the TOP. 7. Note * 6 should say: After 5 years. an employee could go to 100% of the TOP. 8. The last paragraph should say: Employees may move more slowly through the range if not meeting expectations. and move more quickly if their performance warrants it. Motion carried - 4/1 (Brancel) FRANKLIN DAY PLANNER SYSTEM - REPORT AND RECOMMENDATION Whittaker attended the seminar and was impressed with the plan. He felt that the department heads would benefit from attending the seminar. It will cost $185 each for three people to attend. Gagne moved. Brancel seconded to send the Department Heads to the Franklin Planning Seminar at a cost not to exceed $185 each. Motion carried - 5/0 NOTICE ON SPECIAL TAXING DISTRICTS - DRAINAGE PROJECTS Whittaker felt the City should send notices with a summary of the progress on the Shady Hills and Glen Road projects to the residents concerned. The Council agreed. PODIUM CHAIRS There was no discussion. 6 . -..._._-,--'"-'''.,."......_-~.~~~~. ,---~ METRO RELATIONS INC. November 28, 1990 NOV 2 9 1993 Lawrence E. Whittaker City Administrator 5755 Country Club Road Shorewood, Minnesota 55331 Dear Larry: I am pleased to learn that the City Of Shorewood wishes to be a participant in the Metro Relations Inc. oversight and analyses program of the Metropolitan Waste Control Commission. The fees to cities range from a minimum of $1250 $5850 depending on size and use of the system. City of Shorewood will be the minimum, $1250. for that amount is enclosed. to a maximum of The fee for the A signed contract I look forward to being of service to the city on this important project. Best regards. ~ vt/ II \ \ 5913 Chowen South . Minneapolis, Minnesota 55410 . (612) 926-6201 . . AGREEMENT AGREEMENT made this ci ty of S#P!Ze.woo.1) the "City", and Metro "MRI". day of , 1990 between the , Minnesota, hereinafter referred to as Relations Inc., hereinafter referred to as WITNESSETH WHEREAS, it is in the interest of the city to engage the services of MRI to monitor on behalf of the city the operations and activities of the Metropolitan Waste Control Commission, hereinafter referred to as "MWCC", to conduct research and analyses of MWCC matters, and to undertake related activities, and WHEREAS, it is in the interest of the city to share the cost of such monitoring and analyses with other cities of like int~rests who shall also contract with MRI for this same purpose, and WHEREAS, MRI and its principal agent, Eugene E. Franchet t, is particularly knowledgeable and competent to conduct such monitoring and analyses NOW, THEREFORE, it is agreed as follows AGREEMENT A. Character and Extent of Services 1. MRI agrees to provide services as follows: a. To be present on behalf of the city and the other participating cities at MWCC commission meetings and committee meetings. b. To analyze key MWCC issues of importance to the city and the other participating cities. c. To analyze MWCC budgets and participate in the budget- making process on behalf of the city and the other participating cities and make recommendations on behalf of the participating cities. 1 . . d. To advocate the interests of the city in common with the other participating cities with the MWCC. _e. To notify within a reasonable time the administrative officer of the city and the participating cities when MRI determines that issues the commission warrant immediate attention and action. chief other before f. To report in writing regularly to the city and the other participating cities on key MWCC issues. B. Compensation 1. The services performed by MRI shall be paid by annual subscriptions by each participating municipality. The amount of each city's subscription shall vary from $1250 to $5850 per year depending on the extent of the city's use of the regional waste water treatment system. The minimum and maximum shall be adjusted annually for inflation at a rate determined by the Consuyr Price Index. The subscription fee for the city in 1991 is YL-/2-50"Y. Such subscription fee shall be paid by the city as follows: One-half on or before February 1 of each year and one-half on or before August 1 of each year. C. Duration and Termination 1. This agreement is made contingent upon the execution of like contracts by not less than seven cities, and upon meeting that contingency MRI shall give written notice of the effectiveness of the contract to each city. 2. This agreement shall be in effect for one year commencing January 1, 1991 and ending December 31, 1991, HOWEVER it shall renew automatically each subsequent year unless Notice of Termination shall be given pursuant to Paragraph (a) following. a. Either the city or MRI may terminate this agreement by giving the other party written notice on or before October 1 of any year giving notice of termination at the end of that calendar year; and the agreement shall continue until the effective date of such termination. A notice of termination may be rescinded by either party at any time. c. This agreement shall be terminated at the end of the calendar year when the number of participating municipalities is reduced to less than the number of participating municipalities required to put the agreement into effect. 2 . . D. Miscellaneous 1. Execution of this Agreement does not create a contract of employment. MRI and Eugene E. Franchett are and shall remain independent contractors, therefore the city shall not be responsible for payment of social security or withholding taxes, nor for unemployment or worker's compensation insurance or other benefits. 2. I f the ci ty resolves to retain MRI to pursue a matter of special interest with the MWCC it may do so provided the matter is not in conflict with the interests of the other participating cities, and MRI shall receive an addit~onal fee for such services which shall be based on its standard per diem fees. IN WITNESS WHEREOF, the parties have executed this agreement the day and year first above written. By: Its City Met By: Its Dat . ".....- /\ / /q1i7 Date 3 CHECK NO. CHECK APPRO.ISTING FOR DECEMBER 10, 1990 .CIL MEETING TO WHOM ISSUED PURPOSE AMOUNT CHECKS ISSUED SINCE NOVEMBER 20, 1990 5751 5752 5753 5754 5755 5756 5757 5758 5759 5760 5761 5762 5763 5764 5765 5766 5767 5768 5769 5770 5771 5772 5773 5774 5775 5776 5777 (G) (L) (G) (G) (L) (L) (L) (L) (L) (L) (L) (L) (L) (L) (L) (L) (L) (L) (L) (L) (G) (G) (G) (G) (G) (G) (G) COMMISSIONER OF REVENUE OCTOBER FUEL TAX $ COMMISSIONER OF REVENUE OCTOBER SALES TAX SHOWCASE LANDSCAPE/IRR. PAYMENT OF CONTRACTOR'S APP. #1 MPLERA MPLERA 1990 ANNUAL WORKSHOP/BUS. MTG BELLBOY CORPORATION LIQUOR PURCHASES CASH REGISTER SALEStINC MAINT./REPAIR OF CASH REIGSTERS FLAHERTY'S HAPPY TYME CO MISC. PURCHASES GRIGGSt COOPER AND CO. LIQUORt WINE AND MISC. PURCHASES JOHNSON BROTHERS LIQUOR LIQUOR AND WINE PURCHASES MINNEGASCOt INC. UTILITIES MN BAR SUPPLYt INC. MISC. PURCHASES AND SUPPLIES MN VICTORIA OIL CO. UTILITIES HARRY NIEMELA DECEMBER 1990 RENT FOR STORE I NORTHERN STATES POWER UTILITIES ED PHILLIPS AND SONS LIQUOR AND WINE PURCHASES POGREBA DISTRIBUTING BEER AND MISC. PURCHASES QUALITY WINE-SPIRITS CO LIQUOR AND WINE PURCHASES RYAN PROPERTIESt INC. DECEMBER 1990 RENT FOR STORE II US WEST COMMUNICATIONS UTILITIES AND ADVERTISING WEEKLY NEWSt INC. ADVERTISING MR. MARK STRATMAN REFUND OF HOUSE MOVING PERMIT UNITED PARCEL SERVICE POSTAGE ON COMPUTER EQUIPMENT B. WITTRACK REFUND OF OVERPAYMENT OF SEWER BILL BRADLEY NIELSEN SECTION 125 DEPENDENT CARE REIMBURSEMENT JOSEPH PAZANDAK SECTION 125 HEALTH CARE REIMBURSEMENT DUANE AND PEGGY JOSEPH RECYCLING AWARD PETTY CASH PETTY CASH REIMBURSEMENT TOTAL GENERAL TOTAL LIQUOR 44.76 8t479.73 32t195.45 35.00 7t015.68 75.90 69.20 8t658.09 4t703.17 91.00 232.30 72.45 1t428.00 321. 62 939.83 929.20 2t563.08 2t115.00 227.87 168.00 175.48 12.45 24.13 130.00 93.00 75.00 37.40 32t822.67 38t090.12 TOTAL CHECKS ISSUED 70t912.79 ~J3 -1- CHECK APPROVeISTING FOR DECEMBER 10, 1990 .CIL MEETING CHECK NO. TO WHOM ISSUED AMOUNT CHECKS FOR COUNCIL APPROVAL 5778 5779 5780 5781 5782 5783 5784 5785 5786 5787 5788 5789 5790 5791 AT & T ALBINSON AMERICAN LINEN SUPPLY EALR F. ANDERSEN-ASSOC. APPLIED ENGINEERING BEST AND FLANAGAN BRYAN ROCK PRODUCTS CARGILL SALT DIVISION CHASKA PARTS SERVICE CRYSTEEL TRUCK EQUIP. DETERMAN WELDING/TANK HAROLD DIRCKS ROLF E.A. ERICKSON FROBERG AND AHERN, P.A. 5792 5793 5794 5795 5796 5797 5798 5799 5800 5801 5802 5803 5804 5805 5806 5807 5808 5809 5810 5811 5812 FRONTIER ELECTRIC HANCE HARDWARE JANICE HAUGEN HENNEPIN COUNTY TREAS. KEN JARCHO INS. AGENCY JOHNSON & LIEDLE APPR. KNOX LUMBER LEAGUE OF MN CITIES INS. M-V GAS H.C. MAYER AND SONS METRO AREA MGMENT ASSOC MIDWEST ASPHALT MINNEGASCO, INC. STATE OF MINNESOTA MN SUBURBAN PUBLICATION MTKA PUBLIC SCHOOLS WM MUELLER AND SONS MUNITECH, INC. NORWEST BANK, MN, N.A. NORTHERN STATES POWER NORTHERN STATES POWER CONTINUED ON NEXT PAGE PURPOSE UTILITIES XEROX REDUCTIONS LAUNDRY SERVICES STREET SIGNS SERVICES RELATED TO TANK REMOVAL LEGAL SERVICES IN CROSS PROP. CLOSING ROCK FOR TANK REMOVAL PROJECT STREET SALT PUBLIC WORKS TRUCK SUPPLIES SNOWPLOW CUTTING EDGE REMOVAL-DISPOSAL OF PRODUCT(TANK REM.) COUNCIL MEETING TAPING DECEMBER ASSESSING FEE AND SUPPLIES NOVEMBER LEGAL FEES DEVELOP. 200.00 ON-GOING 20.00 GENERAL 2,640.00 PROSECUTIONS 1,787.50 LITIGATIONS 40.00 RETAINER 250.00 REPAIR OF CITY HALL LIGHTS ELECTION, PUBLIC WORKS AND PARKS SUPPLIES MILEAffiAND MEETING EXPENSES PRISONER EXPENSE BALANCE ON LIQUOR LIABILITY APPRAISAL SERVICES SECURITY LIGHTS FOR WARMING HOUSE MULTI-PERIL AND EXCESS. LIAB. RENEWAL GAS FOR WARMING HOUSE DIESEL FUEL MAMA LUNCH - L. WHITTAKER TACK OIL FOR STREETS UTILITIES RE-LAMPING SERVICES PUBLISHING COPIER PAPER FILL SAND AND COLD MIX WATER AND SEWER SERVICES FOR DECEMBER PRINC, INT, & FEES ON GO IMP 1-1-74 UTILITIES STREET LIGHT UTILITIES -2- $ 41. 63 5.00 402.78 148.42 500.00 495.00 138.36 1,375.35 105.60 74.00 3,493.00 100.00 2,691.00 4,937.50 62.00 119.31 47.58 4,814.50 271. 00 400.00 79.98 51,080.50 199.50 570.63 11.00 65.70 66.26 140.55 329.17 77 .56 2,083.39 4,917.00 75,795.00 1,087 . 11 1,793.23 CHECK APPRO.ISTING FOR DECEMBER 10, 1990.CIL MEETING CHECK NO. TO WHOM ISSUED PURPOSE AMOUNT CHECKS FOR COUNCIL APPROVAL 5813 5814 BRADLEY NIELSEN ORR, SCHELEN, MAYERON AND ASSOCIATES MILEAGE REIMBURSEMENT ENGINEERING SERVICES FOR SEPT-OCT STREETS 1,599.60 SEWER 2,484.41 DEVELOPMENTAL 1,230.63 ON-GOING 703.70 GENERAL 9,461.42 JOSEPH PAZANDAK MILEAG, FILM AND PROCESSING PEPSI-COLA COMPANY POP MACHINE RENTAL PIKE'S BLDG MAINTENANCE NOVEMBER JANITORIAL SERVICES-CITY HALL POWER BRAKE & EQUIPMENT BRAKE PARTS REYNOLD'S WELDING SUPPLY TANK RENTAL ALAN ROLEK TUITION REIMBURSEMENT KATIE SNYDER COUNCIL-PLANNING COMMISISON MINUTES SO LK MTKA PUB SFTY DEPT OCTOBER BOOKING FEE TOLL WELDING WELDING TANK LEASE FOR 1991 TONKA AUTO PUBLIC WORKS SUPPLIES TONKA FORD HEADLIGHT SWITCH FOR TRUCK #37 TONKA PRINTING HOLIDAY STATIONARY US WEST COMMUNICATIONS UTILITIES WASTE MANAGEMENT-SAVAGE NOVEMBER RECYCLING SERVICES WURST, PEARSON, LARSON PROFESSIONAL SERVICES REGARDING TIF UNDERWOOD AND MERTZ PLAN $ 64.56 15,479.76 5815 5816 5817 5818 5819 5820 5821 5822 5823 5824 5825 5826 5827 5828 5829 48.58 10.00 220.00 90.31 2.80 181. 50 250.00 197.56 283.74 20.18 12.61 6.50 745.91 3,750.00 5,975.00 TOTAL CHECKS FOR APPROVAL 184,482.27 TOTAL CHECK APPROVAL LIST 255,395.06 -3- CHECK APPRO.LISTING FOR DECEMBER 10, 1990~CIL MEETING CHECK NO. TO WHOM ISSUED HOURS AMOUNT PAYROLL REGISTER FOR DECEMBER 4, 1990 PAYROLL 204680 VOID 204681 VOID 204682 (L) SCOTT BARTLETT 43.5 REG HOURS $ 218.19 204683 (G) BARBARA BRANCEL COUNCIL 147.82 204684 (G) CHARLES DAVIS 80 REG HOURS 413.98 204685 (G) WENDY DAVIS 80 REG HOURS 621.11 204686 (G) CARMEN DOUGHTY ELECTION JUDGE 26.61 204687 (G) NORMA HOGLE ELECTION JUDGE 44.35 204688 (G) ELVERA HOOPS ELECTION JUDGE 20.20 204689 (L) KEVIN FOSS 12.5 REG HOURS 66.52 205690 (L) JOIN FRUTH 27 REG HOURS 122.53 204691 (G) ROBERT GAGNE COUNCIL 142.50 204692 (G) JANICE HAUGEN MAYOR 170.60 204693 (G) PATRICIA HELGESEN 64 REG HOURS 595.05 204694 (L) BRIAN JAKEL 41 REG HOURS 184.84 204695 (G) DENNIS JOHNSON 80 REG HOURS 488.95 204696 (L) JOHN JOSEPHSON 13.5 REG HOURS 73.17 204697 (L) WILLIAM JOSEPHSON 80 REG HOURS 597.97 204698 (L) MARK KARSTEN 67 REG HOURS 271.95 204699 (G) SANDRA KENNELLY 80 REG HOURS 756.19 204700 (G) ANNE LATTER 80 REG HOURS 529.84 204701 VOID 204702 (G) JOSEPH LUGOWSKI 80 REG HOURS - 3 OT 714.80 204703 (L) RUSSELL MARRON 16 REG HOURS 78.82 204704 (L) KELLY MICHELSON 23 REG HOURS 105.78 204705 (G) LAWRENCE NICCUM 80 REG HOURS 583.32 204706 (G) SUSAN NICCUM 80 REG HOURS 598.94 204707 (G) BRADLEY NIELSEN 80 REG HOURS 835.80 204708 (G) JOSEPH PAZANDAK 80 REG HOURS 813.40 204709 (G) DANIEL RANDALL 80 REG HOURS - 2 OT 715.89 204710 (L) BRIAN ROERICK 9 REG HOURS 47.15 204711 (G) ALAN ROLEK 80 REG HOURS 928.53 204712 (L) BRIAN ROSENBERGER 13.5 REG HOURS 66.52 204713 (L) CHRISTOPHER SCHMID 80 REG HOURS 477.67 204714 (L) CRAIG SCHOLLE 21 REG HOURS 97.40 204715 (G) HOWARD STARK 82 REG HOURS 559.19 204716 (G) KRISTI STOVER COUNCIL 150.00 204717 (G) LEONARD WATTEN COUNCIL 147.82 204718 (G) RALPH WERLE 82 REG HOURS 560.04 204719 (G) LAURENCE WHITTAKER 80 REG HOURS 1,032.10 204720 (L) DEAN YOUNG 80 REG HOURS 564.29 204721 (G) DONALD ZDRAZIL 80 REG HOURS 1,004.41 204722 (L) SUSAN LATTERNER 18 REG HOURS 90.41 204723 VOID TOTAL GENERAL 12,601. 44 TOTAL LIQUOR 3,063.21 TOTAL PAYROLL 15,664.65 -4-