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040290 CC Study Session AgP ~ -'" ....,- "-.- ....~.. CITY OF SHOREWOOD CITY COUNCIL STUDY SESSION MONDAY, APRIL 2, 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD 7:30 P.M. AGENDA 1. CUNVENE A. Roll Call Watten Brancel Stover Gagne Mayor Haugen B. Minutes - February 26, March 12, March 19, 1990 (Att.No.1B-Minutes) 7:30PM. 2. PUBLIC HEARING - YEAR XVI CDBG FUNDS (Att.No.2-Notice) 3. REVIEW APPLICATION FOR CDBG DISCRETIONARY FUNDS 4. LOTTERY TICKET SALES 5. WATER POLICY DISCUSSION (Att.No.5-Memo) 6. REPORTS MEETING REMINDERS: April 9, 1990 - Regular Council Meeting April 18, 1990 - Annual Board of Review - Property Tax Valuation April 23, 1990 - Regular Council Meeting 7. ADJOURNMENT P;7;').JpmGN-r ( -- '''- lyJ .'r /" ~ /I) :bJLL f (:/1 ) / ". Jtt tfV (, i"') I f\.) I-C'~'Si ,.) /..~ (,0 ",':'- ',' ..' ,7Mbt I L fJ-r-- -1- · CITY OF SHOREWOOD REGULAR COUNCIL MEETING MONDAY, FEBRUARY 26, 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD 7 : 30 PI-I M I NUT E S CALL TO. ORDER Mayor Haugen called the meeting to order at 7:30 PM. PLEDGE OF ALLEGIANCE 11ayor opened the meeting with the pledge of allegiance. ROLL CALL Present: Also Present: Mayor Haugen, Councilmembers Gagne, Brancel, and Watten Attorney Froberg, Planner Nielsen, Engineer Frigaard; AtiQiuistrator Ql1ittaker; and Assistant Clerk Niccum REVIEW AGENDA Gagne moved, Brancel seconded, to approve the agenda with the addition of item l2A, a sign permit for Our Saviours Lutheran Church. l10tion carried - 4/0. APPROVAL OF MINUTES Minutes of Monday, January 22, 1990 Brancel moved, Gagne seconded, to approve the minutes of Monday, January 22, 1990, as written. Motion carried - 4/0. Minutes of Workshop meetin~, Thursday, February 1, 1990 Brancel moved, Watten seconded, to approve the minutes of the Workshop meeting of Thursday, February 1, 1990, as written. Motion carried - 4/0. SPECIAL PRESENTATIONS Girl Scout Troop #1375, and their leaders, Annie Paul and Lynne Marcy, \vere present from Minnewashta. The girls told the Council a little bit about \vhat they do, and presented Mayor Haugen wi th a proclamation Mayor Haugen signed the proclamation and declared March 11-17 National Girl Scout Week in Shorewood. South Shore Senior Center representatives, Shirley Barnum, Lucy McDonald, and Mary Bishop, were present to thank the City for their support. They explained that they are starting their 7th year in the community, and the activities that they have provided, and intend to provide. Hayor Haugen asked them if they could please get a "call ing net\vork" going to check on the area elderly, disabled, and anyone else who needs this service. Gagne asked if the Center was losing the use of the school? Barnum said according to their representative with the School District, it stlould be available for their use through 1990. -1- REGULAR COUNCIL MEETING MONDAY, FEBRUARY 26, 1990 Page two CONSENT AGENDA Gagne moved, Brancel seconded, to approve: installation of a street light at Shorewood Oaks Drive and State High\/ay 7; an extension of a right-af-way permit for Carrie Dorfman, 25845 Birch Bluff Road, until July 12, 1990; and the route for the 10th annual Easy Race, to be held on May 6, 1990. Motion carried - 4/0. COMtIISSION REPORTS Park Commission Park Conmissioner Weatherly was present to give the Park Report. Park Planner Weatherly said that, with Council permission, the City sent Requests for Proposal to several Park Planning firms. The Park Commission was pleased by this because they felt they would be acquiring a "spec ial i s t" in the park field. FouL' f i rras tvere then intervieVled. Other than being able to do the job, which all top four firms could do, the Commissioners were looking for a firm that showed a particular interest in Shorewood on a long term basis; a good park philosophy; experience/ability regarding different types of funding; competitive pricing; the ability to do step by step planning; and a chemistry that would create an easy working relationship with all involved. Van Doren, Hazard, and Stallings was chosen for several reasons: their reference checks were most favorable; they had the best oral and written presentation \/hich showed attention to detail, ability to follm/ directions, and ability to "read bet\veen the lines"; strong experience; and the lowest price. Mark Koegler of Van Doren, Hazard, and Stallings was present at the meeting to answer any questions the Council wished to ask. He said he had enjoyed meeting \'1i th the Park Commission and thought they could have an excellent working relationship. Watten moved, Gagne seconded, to authorize the Mayor to execute the agreement for consulting services with Van Doren Hazard Stallings Inc. as the City of Sborewooci's Park Planner. Motion carried - 4/0. Gagne moved, Brancel seconded, to accept Van Doren Hazard Stallings' proposal for the Silverwoocl Park Plan. Motion carried - 4/0. Covington Vine Ridge - Trail Request Weatherly told the Council that the Covington Vine Ridge Association has expressed an interest in extending a trail system around the wetlands area in Outlot A (36-117-23-14-0065), an outlot o~ned by the Association. They have asked for City assistance in cutting the weeds down and placing a wooden plank bridge over the stream. They would also like Public Works Director Zdrazil to walk the trail to see if he sees any areas of concern. -2- REGULAR COUNCIL l-tEETING MONDAY, FEBRUARY 26, 1990 Page three COMMISSION REPORTS - continued Park Commission Covington Vine Ridge - Trail Request Haugen asked if the proposed trail would infringe upon private property? Weatherly said the back yards are fenced so you can tell where the property lines are. Haugen also asked if there was anything in the City Ordinance about cutting into wetlands? Planner Nielsen said that a trail easement was approved with the final plat. He also said the Army Corps of Engineers had expressed concern in that area. He showed those present a map and pointed out the proposed area. Watten moved, Gagne seconded, to have the new Park Planner review various projects that have been brought forward by the Park Commission, and to make recommendations on these projects. ~lotion carried - 4/0. Mr. Steven Dzurak, a member of the Covington Vine Ridge Association Board of Directors, said he has contacted the DNR, Army Corps of Engineers, and Purgatory Creek Watershed District. It appears that if the only things done are cutting the grass and putting a plank bridge across the stream, these three organizations will approve, however, if the plans are to divert or fill the stream, or to use woodchips or anything else on the trail, these agencies will have to be contacted. Plannin~ Commission Planner Nielsen said the meeting did not take place due to lack of quorum. SIMPLE SUBDIVISION RESOLUTION RESOLUTION NO. 15-90 Applicant: Location: Raymond Roust 5925 Mill Street Mr. Roust was present. Planner Nielsen pointed out that because of the drainage patterns in the area, the applicant is being required to provide an easement larger than usual. Gagne moved, Watten seconded, to adopt. Resolution No. 15-90 - "A Resolution Approving Simple Subdivision of Real Property" - uhich divides the property at 5925 Mill Street, zoned R-1C, Single Family Residential, into one parcel containing the existing house consisting of 26,953 square feet, and a new parcel containing 20,082 square feet; approval contingent upon the Planner's 7 recommendations listed in the Planner's Report of January 29, 1990. Motion carried by roll call vote - 4/0. (Stover absent) FINAL PLAT, KORDONOWY ADDITION RESOLUTION NO. 16-90 Applicant: Tom Kordonowy Location: 6100 Apple Road Mr. Kordonowy was present at the meeting. Brancel moved, Gagne seconded, to adopt Resolution No. 16-90 - "A Resolution Approving the Plat of the Kordonowy Addition" - contingent upon the 4 Planner's recommendations in the Planner's Report of February 22, 1990. Motion carried by roll call vote - 4/0 (Stover absent -3- REGULAR COUNCIL MEETING MONDAY, FEBRUARY 26, 1990 Page four CONDITIONAL USE PERMIT CONSTRUCTION AGREEMENT, LEASE - CELLULAR ONE ANTENNAE ON S.E. AREA WATER TOWER RESOLUTION NO. 17-90 Gagne asked if everything would be painted the same color? The representative from Cellular One sai~~yes~ Haugen expressed concern over the holes for the antennas, saying nothing must harm the uater tower. Attorney Froberg said CBI has presented working drawings to Cellular One. They have employed a local contractor who will install the antennas according to the agreement. Froberg also said that the construction agreement specifies that the City Engineer make a final inspection. Brancel asked about landscaping. Planner Nielsen said a revised plan has been submitted that places screening in the area she was concerned about. Attorney Froberg referred to several contract changes. He said he was comfortable with the revisions. He also pointed out a paragraph change that states the contractor cannot reassign the lease except to a parens subsidiar~ or affiliate. Gagne asked when they ~lould start? The Cellular One representative said they will start the last part of June, 1990. It will take 30 days to complete. Gagne also asked Public Works Director Zdrazil if they could get to the tower without problems. Zdrazil said yes. Gagne moved, Brancel seconded, to adop,t:~ Resolution No. 17 -90 - "A Resolution Granting a Conditional Use Permit to ACC/McCaw Cellular of Minneapolis" - for the purpose of installing mobile telephone service antennas (6) on the S.E. Area watertower. Motion carried by roll call vote - 4/0 (Stover absent). JUNK ORDINANCE APPEALS Applicant: Location: Eccliasia Enterprise Inc. (Fred Shermanek) 5655/5665 Eureka Road Mr. Shermanek was present to answer questions. He said he ~las having problems because of the renters. He asked for six weeks extension. Gagne moved, Brancel seconded, to extend the "Notice to Remove" for 30 days, until March 28, 1990. Motion carried - 3 ayes - 1 nay (Watten) Watten felt you have to take into consideration that it takes time to complete these projects, and it enhances the neighborhood when done. Applicant: Location: Steven Pahl 24860 Smithtown Road Steven Pahl ~las present to say that he has done everything he can at this point. He said the air conditioner is operable and will be used for central air. He said the excercise bike is operable. He has tried to remove the concrete blocks but they are frozen into the ground at this time. Nielsen said they have .reduc'eel. debris from about 100 yards to 35. yards. Brancel moved, Gagne seconded, to extend the "Notice to Remove" for 30 days, until March 28. 1990. Motion carried - 4/0. -4- REGULAR COUNCIL MEETING MONDAY, FEBRUARY 26, 1990 Page five JUNK ORDINANCE APPEALS - Steven Pahl - continued Mr. Pahl asked if he could ask for another extension if the ground is still frozen. Council said yes. GEORGE SHERMAN - FINANCING TIF PLAN }1r. Sherman was present. He referred to the letter sent to Planner Nielsen on February 19, 1990. He said they are prepared to include 50% of the study cost within the development cost. Gagne said he agrees with the Administrator's recommendations in his February 22, 1990 memo to the Council. Gagne moved, Brancel seconded, to have the City of Shorewood participate in 50% of the cost of the TIF Plan study. Watten mentioned the fact that the Legislature is in the process of discussing TIF. He asked the Attorney if the City acted on the TIF now if the TIF would be affected if the Legislature acted upon it later? Attorney Froberg said the purpose of the TIF can be affected. No approval is needed now. The bills proposed v1i]1 give the school district and the Coun~~ a ve~9 over any.TIF a City pr<?poses. They__couhl, then ~e~Hle . II the IlF came Ullucr the provIsIons of cae TIF statute. ih1S woula mean the City would either have to modify the plan or go to a different plan. The City would then be out the funds expended. Froberg said generally August 1 is the date bills become effective but this cannot be predicted. Mayor Haugen explained the increased valuation during TIF, and how it affects the school district, County, and the City. Motion carried - 4/0. SURVEY OF S.E. AREA WATER USERS-IRON REMOVAL RESOLUTION NO. 18-90 102 surveys were returned. 308 were mailed. 71% believe we should study iron removal, 24.5% believe we should study softening, and 67.6% believe the vlater needs additional treatment. General comments referred to color, rust, odor, stains, high iron/hard water, and suspended particles. Three mentioned "Don't study it - do it!". Three said take the lmvest bid for the study. Engineer Frigaard of OS}1 and Noel Vogen and Gary Swanson of Associated Consultants Inc. were present. Gagne compared the $3,000, plus an additional $500 if a site study is required, received from Associated Consultants Engineering Inc. with the $12,000 estimate received from OSM. He and Brancel felt the lower estimate should be accepted. Engineer Frigaard from OSN said that he didn I t feel" apple'" v1ere being compared to apples", that the estimate from OSM showed 4 times the number of hours. Noel Vogen of Associated Consultants Engineering Inc. referred to the letter sent to the Council on January 26, 1990 stating that the only items not covered were a possibility of using a higher loading filter rate in the iron removal filter, because they have studied it and have not recommended its use on other projects, and site selection. They have added $500 for the site selection if it is requested. -5- REGULAR COUNCIL MEETING MONDAY, FEBRUARY 26, 1990 Page six SURVEY OF S.E. AREA WATER USERS - IRON REMOVAL (RESOLUTION NO. 18-90) conI Administrator Whittaker explained that after the gap in prices was discovered, each company's scope, minus all prices, was sent to the other firm for comparison purposes of the scope of work. This way each had the opportunity to change their scope or their price. Both firms kept the same prices and scopes. Watten moved, Haugen seconded for discussion purposes, to defer the decision on who would be hired to do the S.E. Area Feasibility Study until a full Council is present (Stover absent) and until OSH can respond. Watten asked if specs were laid out. Whittaker said no, but there had been ample COIDL~ent at previous meetings regarding the information that the Council wanted at this time. Haugen mentioned that City Engineer Norton of aSM had given the City a cost before. Whittaker said/when this was discusse~ it appeared that neither the Council nor Norton seemed very comfortable with taking that figure to neighborhood meetings and answering questions at this time. Gary Swanson of Associated Consultants Engineering Inc. said that both firms had submitted proposals, heard the price difference, and seen each others work scope. Motion failed - 1 aye (Watten) - 3 nayes by roll call vote. RESOLUTION NO. 18-90 Braneel moved. Gagne seconded, to adopt Resolution No. 18-90 - "A Resolution Ordering Preparation of a Feasibility Report on Water Treatment Plant for the S.E. Area Trunk Water System" - which authorizes Associated Consultants Engineering Inc. to prepare the feasibility report, not to exceed a cost of $3.500. Motion carried by roll call vote - 3 ayes - 1 nay (Watten). LAKE MINNETONKA CONSERVATION DISTRICT Bob Rascop, the LMCD representative, asked for 1/2 hour in March to present the long-term management plan to the City. He said they need it before April. Rascop referred to a letter sent to the City from the LMCD on January 26, and said he would answer any questions the Council had. Gagne said the City had doubled their donation last year to handle milfoil. He asked if they were asking for this again this year along with the items mentioned in the le~ter - lake off-load points in Shorewood, Compost/weed~disposal sites, and provision of City trucks and drivers? He asked what was going on with milfoil? Rascop said the LMCD Budget that was put together last year depended upon funds from several sources, and now they are having problems with these sources, so they are trying to get contributions. He said that Hennepin County hadtaken 8 out of 9 of their compost sites away by buying them. He said, last year,HennepL~ County provided trucks and drivers. This year the only way this can happen is if Hennepin County has excess snow removal funds. LMCD must pay for trucks and drivers if those funds are used. Rascop said Milfoil only grows in 8'-15' of water. It'll die in shallow water. -6- REGULAR COUNCIL ~mETING MONDAY, FEBRUARY 26, 1990 Page seven LAKE MINNETONKA CONSERVATION DISTRICT continued Haugen suggested to Rascop that the LMCD support a "Cleanup Weekend", a time for all property owners to clean up the lakeshore that is normally under water. Rascop said it would be a problem because when you try to get out there-the muck is up to your knees. Rascop said the Lake MinnetonkCl has lost 14"-18" since last fall. The LMCD is going to oppose two things: irrigation from the lake and pumping into the lake from old tvells. It has been proven that Lake Minnetonka is a recharge source for the Jordon Aquafier. The Aquafier is also down at this time. All the sewer water goes directly into the }1ississippi River and does not recharge the lake. Watten told Rascop the City appreciates all the work ~e is doing. Shoreland Management Grants Bob Rascop explained that the DNR has given LMCD money to pay the cities for writing a Shoreland Ordinance. If the city has other lakes than Lake Minnetonka involved, it will pay up to $5000. SIGN PERMIT - OUR SAVIOUR'S LUTHERAN CHURCH Planner Nielsen said the church wishes to replace their existing sign \lith a new and improved monument type sign. It will be 20 square feet in size. This permanent sign meets the area and height requirements required in the R-IA zonillgdistrict, and \lill be a vast improvement over the existing sign. Watten moved, Gagne seconded, to approve a sign permit for Our Saviour's Lutheran Church, 23290 State Highway 7, for a 20 square foot sign in front of the church. Motion carried - 4/0. 11A TTERS FRO~I TIIE FLOOR None STAFF REPORTS ATTORNEY'S REPORT 3 Year Contract for Animal Control with City of Chanhassen Attorney Froberg explained that the contract enclosed is for reVietl. It has already been approved. If anyone has any questions, call Attorney Froberg. Building Lease - SLMPSD RESOLUTION NO. 19-90 Attorney Froberg said the building lease has now been revised to include the language proposed by Shorewood regarding a city that wants to pay up in advance. The other cities would continue to pay the same amount they have been paying. Gagne moved, Watten seconded, to adopt Resolution No. 19-90, "A Resolution Approving a Lease Agreement between the City of Excelsior and the Coordinating Committee for South Lake Minnetonka Public Safety Department". Motion carried by roll call vote - 4/0 (Stover absen -7 - REGULAR COUNCIL MEETING MONDAY, FEBRUARY 26, 1990 Page eight STAFF REPORTS - continued PLANNER'S REPORT l-linnetonka Portable Dredging - Parkinp; Lot Revision/Deadline Extension Planner Nielsen said Minnetonka Portable Dredging has revised their parking lot plan. This allows them to access the lot from the ~lest end of the building, and prevencs damage by track type vehicles. Watten moved, Gagne seconded, to approve the revision of the parking lot, which allows access on the west end of the building, under the C.U.P. to Minnetonka Portable Dredging. MOtion carried - 4/0. Nielsen also explained that some of the legal requirements of the C.D.P. are not completely resolved. He recommended an extension. Watten moved, Gagne seconded, to extend Minnetonka Portable Dredging's C.U.P. until May 14, 1990. Motion carried - 4/0. Fina - Pollution Control Planner Nielsen said the ventilation system was started up and they had to shut it down the same day because of excess noise. They are working ~lith an en~ineer and have made progress. The MNPCA has begun to release Petra fund money to them. MNPCA requires that the owner inst&~~ cest wells to monitor groundwater pollution.The wells are about 35' deep and 4'1 in diameter. Fina has to file an application with PCA to drill the well, and a short contract ~lith the City saying that they viiI! cap the wells and abandon them according to the well code. Planner Nielsen recommended signing the contract. He said they will work with Public Works Director Zdrazil so the well is placed so it will not interfere with City work. Gagne moved, Watten seconded, to allow the Environmental Engineering Firm that is doing the wells to put in the test wells, and to sign a contract to that effect - and that the responsibility for abandon- ment is the Finamart owner's responsibility. Motion carried - 4/0. 9:30pm - 9:35pm - Council Break Schedule Public Hearing on Rental Housing Code Planner Nielsen said he has to finalize a list of rental properties. He will be putting something in the next newsletter. He asked the Council who should hold the public hearing? The Council wants the Planning Commission to hold the hearing. The Council will discuss the rental housing code at their study session on March 5, 1990. Public Works Site Planner Nielsen said he and Public Works Director Zdrazil have been looking at sites. They had narrowed it down to t~lO properties. The owner of the property they are most interested in has offered to take the property off the market for 4 months for $5000, if the City buys the property, the $5000 will go toward the purchase. Gagne moved, Brancel seconded, to have two adjoining sites, -that would -forn one Public Works Site, appraised. The Council asks that the report be completed by March 12, 1990. Motion carried - 4/0. -8- REGULAR COUNCIL MEETING MONDAY, FEBRUARY 26, 1990 Page nine STAFF REPORTS - continued PLANNER'S REPORT - continued Public Works Site - continued Planner Nielsen said a developer had proposed buying the entire property, building on the front, and selling the back to the City. He said the developer had even mentioned building the Public Works building and leasing it back to the City. After 15 years the City would take over the building. Nielsen said he would come back with t~lO proposals, one to include the house and one acre, and one to exclude the house and one acre: Watten showed concern over access. He asked if there would be any chance of putting in an access by N.S.P. Planner Nielsen will check into this. Gagne would like a report on how the $5000 figure was figured out. ~aterford III - Environcental Assessment Worksheet Request Planner Nieloen saicl a petition bas been received requestine au EAW Ull U[lte'~fonl III. A l'epc.:::t on tbis \lill be given at the Narcb 12 aceting. PUBLIC WORKS DIRECTOR'S REPORT Authorization to Hire Additional Budgeted Employee Public Works Director Zdrazil asked the Council to authorize the hiring of a new employee for increased Park and Maintenance work. Brancel moved, Watten seconded, to hire Larry Niccum at $9. 95/hr as a Lt. Equipment Operator for the City of Shorewood. Motion carried - 4/0. Hennepin County Restitution Program Public Works Director Zdrazil said the Hennepin County Court Service contacted hitl about providing a "Work Squad',' consisting of 8 juveniles' under the supervision of a supervisor, to do odd jobs such as picking rocks on ballfields, trash removal from ditches, and other jobs that do not involve operating equipment. They will be available on Fridays and Saturdays. Attorney Froberg has checked and they have their own insurance. Gagne moved, Brancel seconded, to participate in the Hennepin County Restitution Program. Motion carried - 4/0. ADMINISTRATOR'S REPORT Spring Cleanup Gagne suggested using a chipper and a couple of qualified men to chip brush. Zdrazil felt this might be a problem due to noise, speed, and matted material. Zdrazil is checking on a rental price. He said the City tried a chipper once before and it didn't work out. Zdrazil will report back to the Council. May 5th and 6th will be City Cleanup. Clerks Conference Gagne rnovecl, Watten seconded, to send Sue NicCCD and Sandra Keunelly to the MCFOA Conference Harch 20-23. l1oti9D csrried - 4/0. -9- REGULAR COUNCIL MEETING FEBRUARY 26, 1990 Page ten STAFF REPORTS - continued ADMINISTRATOR'S REPORT - continued Temporary Employee - Finance Department Whittaker asked to keep Virginia Smith full time until Wendy Davis returns from maternity leave. Watten moved, Gagne seconded, to keep Virginia Smith full time until Wendy Davis returns from maternity leave. Motion carried - 4/0. Compostin~ Whittaker referred to the letter from Jerry Splinter of St. Louis Park, and a conversation with Carl Michaud. He said the the County hasn't made any effort to identify the needs the City is supposed to fill. He asked for direction from the Council on how to proceed. The Council discussed transfer stations, and inactive vs. active compost sites. Gagne suggested going slow and being very careful. Haugen suggested talking to other cities. Whittaker said he has already talked to neighboring cities, and most of them don't have room for sites. He said Kirk McDonald, Tonka Bay's Administrator, is working with the City of Minnetonka regarding a central -transfer site in Minnetonka. The Council asked Whittaker to keep working with other cities, and to take things very cautiously. Traffic Si~nal - Hi~hway 7 and County Road 19 Whittaker said the costs for this project would be approximately $1000 for installation of power, and about $300 a year for electric and maintenance. Gagne moved, Brancel seconded, to split the cost for installation of power, electricity, and maintenance with the City of Excelsior, so the signal can be installed this year. Motion carried - 4/0. Gagne moved, Brancel seconded, that just in case Excelsior refuses to pay their share, that the City of Shorewood pay the total cost so the signal can be installed this year - this motion only to be used if necessary. Motion carried - 3/1 (Watten). Fire Marshall Whittaker brought the Council up-to-date on how Excelsior is proceeding. City Lo~o No report. COUNCIL REPORT Watten reported that a Shorewood resident was having trouble with Excelsior residents dumping on his property. Watten asked Attorney Froberg if he was aware of this problem? Froberg said yes, he had made some phone calls and talked to the Excelsior Mayor about it. -10- REGULAR COUNCIL MEETING MONDAY, FEBRUARY 26, 1990 Page eleven COUNCIL REPORT Chanhassen Animal Wardens Brancel complimented the animal \vardens on the way they rotated hours, and the job they are doing. Computer RFP's Brancel commended Finance Director Rolek, Administrator Whittaker, and anyone else that worked on putting the RFP together. She said they did an excellent job and covered "all bases". Christmas Lake Road/State Hi~hway 7 Intersection Gagne mentioned the newspaper coverage regarding the proposal for the intersection, and the reactions of Excelsior and Greenwood. He asked what would happen if an agreement can't be reached. Rascop said you take the problem to Met Council. "Mayor1s Challen~e" Haugen said there is going to be an "Earth Day" on April 22, 1990. She said this is a good day to remove debris from the shoreline. Article on Trees - Su~~estion for Ordinance Haugen gave Planner Nielsen an article on trees. She suggested the City try to come up with an Ordinance to keep developers from killing trees. Article of Interest - Home valuations since 1976 Haugen said the average house in Lake Minnetonka: 1976 1978 1980 1982 1984 1985 11:00 $50,000 $74,000 $105,000 $119,000 $130,000 $134,000 Rule Gagne said he had read about another City in the paper that invokes the 11:00 Rule. He said he had asked Administrator Whittaker to find out about it. The ruling is from the City of Plymouth. Gagne asked Whittaker to pass copies to the Council. He would like to discuss it at a later date. ADJOURNMENT Gagne moved, Brancel seconded, to approve the claims for payment and adjourn the Regular Council meeting at 10:17 PM, and to further adjourn to an Executive Session to discuss litigation. Motion carried - 4/0. -11- REGULAR COUNCIL MEETING MONDAY, FEBRUARY 26, 1990 Page twelve General & Liquor Funds - Acct. No. 00-00166-02 (January 22, 1990) General Checks # 3598 - 3695 $ 387,409.28 Payroll Checklist: Checks # 203680-203722 $ 13,199.33 Total $ 400,608.61 (February 12, 1990) General Checks # 3696 - 3840 93,101. 44 $ Payroll Checklist: Checks # 203723-203763 $ 13,431.62 Total $ 106,533.06 (February 26, 1990) General Checks # 3841 - 3892 $ 76,525.47 Payroll Checklist: Checks # 203764-203855 $ 13,741.90 Total $ 90,267.37 / Liquor $ 54,829.38 $ 2,815.93 $ 57,645.31 Liquor $ 66,566.45 $ 4,638.92 $ 71,205.37 Liquor $ 27,790.67 $ 2,997.67 $ 30,788.34 EXECUTIVE SESSION CONVENED Council entered the Executive Session at 10:25PM. EXECUTIVE SESSION ADJOURNED Council left the Executive Session at 11:27PM, and reconvened the Regular Council meeting at 11:28PM. REGULAR SESSION ADJOURNED The Regular Session ended at 11:29PM. RESPECTFULLY SUBMITTED, Susan Niccum, Assistant City Clerk Laurence E. Whittaker Administrator/City Clerk Jan Haugen Mayor ~ ~ RESOLUTION NO. -90 RESOLUTION APPROVING PROPOSED PROGRAM FOR YEAR XVI URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS AND AUTHORIZING ITS SUBMITTAL WHEREAS, the City of Shorewood , through execution of a Joint Cooperation Agreement with Hennepin County, is a cooperating unit in the Urban Hennepin County Community Development Block Grant Program; and WHEREAS, the City of Shorewood has developed a proposal for the use of Urban Hennepin County CDBG funds made available to it, follow- ing a public hearing on April 2, 1990 to obtain the views of c~t~zens on local and Urban Hennepin County housing and community development'needs and . the City's following proposed use of $ 20,896.00 from the Year XVI Urban Hennepin County Community Development Block Grant and $' -0- in program related income.. Projects Budget Rehabilitation of Private Property $14,9~.00 South Shore Senior Centers Operation $ 5,936.00 $20,896.00 (Total) BE IT RESOLVED that the City Council of Shorewood approves the proposed use of Year XVI Urban Hennepin County Community Develop- ment Block Grant funds and program related income and authorizes submittal of the proposal to Hennepin County for review by the Urban Hennepin County Citizens Advisory Committee a~d for inclusion in the Year XVI Urban Hennepin County Community Development Block Grant Program Statement of Objectives and Projected Use of Funds. Mayor Date Attest: Clerk ~ REQUEST FOR FUNDlliGjYE.AR XVI URBAN HENNEPIN COUNTY CDBG PROGRAM. ---------------------------------------------------------------------------~-~ THIS SECTION ~ILL BE COMPLETED BY HENNEPIN COUNTY National Objectives: Project Eligibility: / Dace Cication Hennepin Councy ER Status: / Status Environmencal Review Specialist Dace Proj ecC Number: / Number Financial Manager Dace - - - - - - - - - - ... .. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - _.- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - A. GENL~L INFORMATION 1. Community: Shorewood 2. Project Name: Rehabilitation of Single Family Homes 3. Contact Person: Sandra L. Kennelly B. PROJECT DATA 1. Year XVI Grant Request $ l4,9~.OO 2. Is this request to fund an existing project? X Yes No 3. Leveraged Funds: Amount $ Source (To what extent does project leverage additional public or privace funds/firm commitment?) 4. Location: Address (Attach map.) Citywide ~ II REQUEST FOR. FOND IRe fYE.AR XVI URBAN HENNEPIR COUNTY CDBG PROGRAM. ------------------------------------------------------------------------------ THIS SECTION ~ILL BE COMPLETED BY HENNEPIN COUNTY National Objectives: Project Eligibility: / Date Citation Hennepin County ER Status: / S ta tus Environmental Review Specialist Date Project Number: / Daca. Number Financial Manager ------------------------------------------------------------------------------ A. GENL~L INFORMATION 1. Community: City of Shorewood 2. Projecc Name: South Shore Senior Center 3. Contact Person: Sandra L. Kennelly B. PROJECT DATA 1. Year XVI Grant Request $ 5,936.00 2. Is this request to fund an existing project? X Yes No 3. Leveraged Funds: Amount $ Source (To what extent does project leverage additional public or private funds/firm commitment?) 4. Location: Address 441 Oak St., P.O. Box 2, Excelsior. MnCitT~ide --- (Attach map.) 5. Description: (Describe the project ~n as much detail as possible. Provide a statement of anticipated results; ~hat, if any alternative funding sources have been considered for the project; and for a multi- year project, describe the program accomplishments to date.) The funds will be used toward the continuation of daily operations at the South Shore Senior Center. It will be specified in the area of salaries for the administration of the center. The administrative responsiblity for the funding expenditure has been delegated to Hennepin County. 6. Implementation Schedule: (Identify the major project tasks to be performed during implementation and their timing.) Task Date (Month/Ye2.r~ Supplements a portion of the salary for the Administration of the South Shore Senior Center. 7/1/90-6/30/91 7. Budget: (Specify total project budget by major project component-- i.e., administration, planning, construction, acquisition, direct grants, public service.) Com"Oonent BUDGET CDBG Other SOURCE OF FUNDS CDBG (vr)/Other (identifv) South Shore Senior Center $ 5.936.00 $ -0- $ $ $ $ proj ect Budget $ 5,936.00 $ Total $ 5,936.00 XVI / / / SENIOR COMMUNITY SERVICES 1600 South 2nd Street, Hopkins, Minnesota 55343 933-9311 March 1, 1990 BOARD of DIRECTORS Connie McCullough President Mayor Jan Haugen and City Council Members CI1Y OF SHOREWOOD 5755 Country Club Road Shorewood, MN. 55331 Tom Ticen 1st Vice President Alison Fuhr 2nd Vice President Dear Mayor and Council Members: Bob Miller Member-at-Large Senior Community Services is requesting $ 5,936 for the 1990-91 fiscal year from the City of Shorewo'od to support the Southshore Senior Center. This amount reflects a 4% adjustment for inflation. The City provided $ 5,708 for the past year through its share of County-wide Community Development Block Grant (CDBG Year XV) funds. While we are aware that CDBG funds are decreasing this year, we hope that the City will be able to fully fund our request. Walter Levesque Secretary John Blaser Treasurer Merlyn "Doc" Meier Past President Leonard Kopp Member-at-Large Toni Anderson Karl Dansky Councilperson Robert DeGhetto Commissioner Tad Jude John Nelson Senator Gen Olson Carla Pavone Daralyn Peifer Jean Rifley Steve Rood Ryan Schroeder Linda Stokes In this time of tight budgets, we hope that you will continue to provide the resources necessary to support the Southshore Senior Center. If another city, or cities are not able to provide support at the level requested, an additional request may be made at a later time. Benjamin F. Withhart Executive Director If you have any questions, or if the City Council would like to have an informational presentation, please don't hesitate to let me know. On behalf of the seniors, who are the real beneficiaries of your funds, many thanks for your on-going support. . ~relQ Ofl~~' / ;:L7:::nF:- ti!~ '6~~utive Director ao a~~ dOAnn Kvern Center Director A United Way Supported Agency 2 1990 URBAN HENNEPIN COUNTY CDBG PROGRAM DISCRETIONARY ACCOUNT REQUEST FOR FUNDING ---------------------------------------------------------~-------------------- THIS SECTION WILL BE COMPLETED BY HENNEPIN COUNTY National Objectives: Proje~t Eligibility: / Date Citation Hennepin County ER Status: / Date Status Environmental Review Specialist Project Number: / Number Financial Manager Date ------- ---------- --- ----- ---- ------------------------ -- ----- -- ------... - - - -- -.. -- A. GENERAL INFORMATION 2. Project Name: City of Shorewood Rehabilitation of Single Family Homes 1. Community: 3. Contact Person: Sandra L. Kennelly B. PROJECT DATA 1. 1990 Discretionary Account Grant Request $14,887.00 2. Is this request to fund an existing project? X Yes No 3. Leveraged Funds: Amount $ Source (To what extent does project leverage additional public or private funds/firm commitment?) 4. Location: Address (Attach map.) Citywide..!- 5. Description: (Describe the project in as much detail as possible. Provide a statement of anticipated results; what, if any alternative funding sources have been considered for the project; and for a multi- year project, describe the program accomplishments to date.) The request for discretionary funds is equal to Year XV requested for the Rehabilitation of Single Family Homes. These funds were reallocated for a Special Census last year. The funds are greatly needed in the area of restoration and energy needs for low income home owners. Each year the City has used the funds allowed for this rehabilitation and would like to make any additional funds available for those home that may not have been able to receive needed funds last year. 6. Implementation Schedule: (Identify the major project tasks to be performed during implementation and their timing. NOTE: DISCRETION- ARY FUNDS MUST BE EXPENDED WITHIN 12 MONTHS.) Task Date (Month/Year) Rehabilitation of Single Family Homes 7/1/90-6/30/91 7. Budget: (Specify total project budget by major project component-- i.e., administration, planning, construction, acquisition, direct grants, publ~~ service.) Component BUDGET CDBG Other SOURCE OF FUNDS CDBG (vr)/Other (identifv) Rehab. of Single Family Hom~ 14,887.00 $ -0- XVI / $ $ / $ $ / Project Budget $14.887.00 $ Total $ 14,887.00 JOHN H. CROSS 24250 SMITHTOWN ROAD SHOREWOOD, MN 553391 612/470-9468 March 30, 1990 Mr. Brad Nielsen Planner City of Shorewood 5755 Country Club Road Shorewood, MN 55331 Dear Brad: Last summer we had our 7~ acre parcel at 24250 Srnithtown Road on the market for $369,000.00 through Barry Brotlund of Counselor Realty. We had already turned down a bonafide written offer in 1987 of $284,000.00 with Edina Realty, Wayzata. We have spoken with an MAl Appraiser who indicates that he can substantiate a $300,000.00 value for the total property. To expedite a sale, we would cons;rtpr R proposal that was written as a 3 month option ($5,000.00 fee) to buy the entire proper tv for $290,000.00. If Shorewood was only interested in the acreage (approximately 6 acres), the price would be $190,000.00, conditional upon the remaining parcel and house (see legal exhibit "A"),_being rezoned to C-3. It must be noted that Shorewood could purchase another parcel on County Road 1119 which is 5.7 acres for $400,000.00, although it would require fill. The Shorewood Comprehensive Plan calls for our parcel being high density residential. I hope that your Appraiser reflects this fact in his valuation. Further, the small wetland area on the north end of the property should be included in the value. Recent Court decisions have judged such wet land ordinances as a "taking" and owners should be compensated accordingly. I would appreciate receiving more information at your earliest convenience, as the house may be sold and we have two interested Developers in the acreage. JHC/ j Enc Sincerely, '-" '.---,~ ~. ~ John H. Cross CITY OF SHOREWOOD COUNCIL WORKSHOP MONDAY, MARCH 19, 1990 COUNCIL CHAMBERS 5755 COUNTRY CLUB ROAD 7:30PM M I NUT E S CALL TO ORDER Mayor Haugen called the meeting to order at 7:30PM. ROLL CALL Present: Mayor Haugen, Councilmembers Gagne, Stover and Watten; Administrator Whittaker; Attorney Froberg; Planner Nielsen; Engineer Norton; Finance Director Rolek; and Assistant Clerk Niccum Absent: Councilmember Brancel SIMPLE SUBDIVISION/LOT COMBINATION RESOLUTION NO. 24-90 Planner Nielsen reviewed a subdivision and street vacation request which had been approved in 1986 for Wallace King. That approval had been contingent upon King acquiring a portion of Smith's property plus an easement over Smith's property which is consistent with the location of the traveled surface of Birch Bluff Road. Because of confusion regrading surveying expenses, the matter was never completed. Also, in 1972 the southwest corner of Smith's lot had been conveyed to the property owner to the south of him due to the fact that the house on that southern poece of property encroached onto Smith's lot. This was done without City approval at that time. He requests ~pproval now. Smith has agreed to grant an easement to the City for the paved surface of the street, plus 10 feet along the south side of it. Stover moved, Gagne seconded, to adopt Resolution No. 24-90 - "A Resolution Approving Subdivision and Combination of Real Property". Motion carried by roll call vote - 4/0. REVIEW PROPOSED TIF PLAN FOR WATERFORD PHASE III RESOLUTION NO. 29-90 Bob Thistle and Brenda Krueger were present from Springsted Incorporated. Thistle said the City is now at Step #4 in the TIF process. He also said a public hearing must be held. The Planning Commission will review the TIF plan and give a recommendation to the Council. The Council will then hold the pgblic hearing. Thistle, Krueger, and the Council went through the 2nd draft of the "City of Shorewood Development Dirstrict Plan for Development District No. 1 including Tax INcrement Financing Plan for Tax Increment Financing District No.1". Section 1.04. Statement of Goals Administrator Whittaker said he thought it was important that the Council make sure that the goals listed are the goals the Council wants. Watten asked how many people would be in the multiple housing. The answer was 54 units with 2.7 people per unit. -1- COUNCIL WORKSHOP MONDAY, MARCH 19, 1990 Page two TIF REVIEW Haugen asked if the pipe that would run under Highway 7 was covered. The answer was yes. Subsection 1.07. Parcels to be Acquired in Whole or in Part within Development District No. 1 Krueger said that 1.07. can be a~ended if the City wishes to add more to the District at a later date. Subsection 1.10. Rehabilitation The Council debated on re~oving the second half of this paragraph - "Owners of properties who purchase.. ...... ... . ... .. ... .available fro~ federal, state or local services." Thistle and Krueger said it does not apply now but they recon~ended leaving it in. Finance Director Rolek said the City can use funds from TIF District No.1 anywhere within Development District No.1. Planner Nielsen said that all the improvements_that have been discussed are included in Development District No.1. Watten moved, Stover seconded, to change "Development District No. I" to "Development District A". Stover wondered i this change would create confusion. '-', Motion failed / 3/1 ) Watten) 7- Stover moved, Watte' seconded, to change "Development District No. I" to "Development District No. 1A". Haugen asked Thistle if this change would create problems? He said it could. Motion was withdrawn by Stover and Watten. Subsection 2.09. Estimated Public Costs Haugen said the estimates "tvere done by Schoell and Madson, vlith minor changes by Engineer Norton. ,... J.i. ~~ '/,11J1!: nlL~ !2.,;~ Mark Benson of MnDOT was also contacted. He found the ChFistmas ~ Intersection co~parable to the Old Market Road Intersection. Gagne and Haugen asked if this includes enough money to cover all expenses. Thistle said the figures shown present the "worst case scenario" - this is if the City had to pay everything. Thistle said all staff time was included under Administration. Finance Director Rolek explained the tax capacity rate. He said this is -w1.Jc1L. u;:,cJ Lo _ the mill rate. It- (d~aen..ov, Subsection 2.15 Fiscal Disparities Contribution. The Council spent a long time discussing this paragraph and issue. The Council "tlanted to know the impact this will have on the average tax payer or the City's ability to finance all of the proposed improvements. -2 - COUNCIL WORKSHOP MONDAY, MARCH 19, 1990 Page three TIF REVIEW - continued Thistle will return \vith anS\vers to questions. He recommended setting the public hearing date, and to turn the TIF Plan over to tne Planning Commission, the School District, and the County for revie\~. Stover noved. Gagne seconded, to adopt Resolution No. 29-90 - "A Resolution Setting a Public Hearing on Development District Program for Development District No. 1 including Tax Increment Financing Plan for Tax Increment Financing District No. 1 - the Public Hearing to be Monday, April 23. 1990 at 8:00PM in the Council Chambers at the Shorewood City Hall. 5755 Country Club Road. Shorewood. Minnesota; notice of said hearing to be published in the newspaper. Motion carried by roll call vote - 4/0 (Brancel absent). RESOLUTION DENYING PETITION FOR A NEW EAW FOR WATERFORD PHASE III RESOLUTION NO. 25-90 Gagne moved. Watten seconded, to adopt Resolution No. 25-90 - "A Resolution Denying a Petition for a New Environmental Assessment Worksheet for Waterford P.il.D.". Motion carried by roll call vote - 4/0 (B~ancel absent). TAX FORFEIT CEMETERY LOT RESOLUTION NO. 26--90 Gagne coved, Watten seconded, that after acquisition by the City of the parcel of Tax Forfeited land indentified as PIN 32-117-23-32-0002, the City shall sell such parcel to the Woodside Cemetery Association for the sum of $1.00 plus all costs incurred by tbe City in tbe acqui3ition thereof, it being understood that the City shall rebate the sewer assessment th~reon to include only the square footage charge-$392- which the Association sball agree to pay to the City. Mot1on carr1ed by roll call vote - 4/0. Watten moved, Stover seconded, to ado!)t Resolution tlo. 26-90 - "A Resolution Approving the Sale of Certain Parcels of Tax-Forfeited land" - in order to give ownership to Woodside Ceaetery Association for PIN 32-117-23-32-0002, a property that was the original cemetery and has many existing graves on it. Motion carried by roll call vote- 4/0 (Brancel absent). PERMISSION FOR AMERICAN LEGION TO PARK IN CITY HALL LOT MAY 5, 1990, FOR StlELT FRY Gagne moved, Watten seconded, to give permission for the American Legion to use City Hall parking lot on May 5, 1990 for overflow parking for their smelt fry. Hotion carried - 4/0. VOLUNTEER RECOGNITION UEEK IN SnOREWOOD RESOLUTION NO. 27-90 Haugen moved. "Watten seconded. to adopt Resolution No. 27-90 - itA Resolution proclaiming the Week of April 22-28, 1990, Volunteer Week in the City of Shorewood". t'lotion carried by roll call vote - 4/0. -3- COUNCIL WORKSHOP MONDAY, ~UffiCH 19, 1990 Page four CLEAN EARTH DAY RESOLUTION NO. 28-90 Uatten moved, Gagne seconded, to adopt Resolution No. 28-90 - "A Resolution proclaiming April 22, 1990 as Earth Day 1990" - and that that day be set aside for public activities promoting preservation of the global environment and launching the "Decade of Environment". Motion carried by roll call vote - 4/0. APPRECIATION EXPRESSED FOR CITY COMMISSIONS The Council discussed how much they appreciated all the work done by the City Commissions. Council Break - 9:27PM - 9:32PM RENTAL HOUSING CODE ORDINANCE NO. 223 Gagne asked if the proposed rental housing code was taken from another City? Planner Nielsen said it was a combination of the best of several cities codes. The Council reviewed the Rental Housing Code Draft page by page. Gagne asked Planner Nielsen if he thought it was a good code and if it can be enforced? Nielsen said if the City is going to get involved with this, he thinks the code is well written and enforceable. Grass length was discussed, and it \~as decided it was adequately covered in the draft. Gagne moved, Watten seconded, to adopt Ordinance No. 223 - "Rental Housing Code", and to waive the 2nd reading. Motion carried by roll call vote - 4/0 (Brancel absent). Haugen said this should be sent to every rental unit in the City. Planner Nielsen said he is putting together a list of units, he also wants to put it in the newsletter. Nielsen also explained the inspection cost and procedure. The charge will be $35 for the initial inspection. Then there may be a follow-up inspection. After that there will be an inspection every 3 years, which will coincide with the changes in the building code; or if a complaint is received; or if the property changes hands. A permit fee of $35 will be charged yearly, or more often if the property changes hands. As a beginning, people will be required to apply for a license by June 1, 1990, inspections will be done by January 1, 1991, and the license will be good for 1991. PARK REPORT Watten reported that the Park Commission has been talking to the Tonka ~Hen' s Club regarding turning the Bi1X Track into a Little League Field. Council would like more information regarding this. The Council expressed a general \Jillingness to use the BMX Track area for a field. Council discussed the duties of the Park Planner and the duties of the City Engineer. -4- COUNCIL WORKSHOP MONDAY, MARCH 19, 1990 Page five PARK REPORT - continued Watten expressed concern over how to make money for the Park Commission. He mentioned Shorewood Logo T-shirts and sweatshirts. The Council will think about it. Gagne asked about painting the warming house at Cathcart. Whittaker said the Public Works Department is going to paint. SEMINAR - PROFESSIONAL PROQFREADING,EDITING AND WRITING SKILL Haugen said she thought perhaps a couple of staff should attend this, she had Sue and Anne in mind. It is $89, a one day session, and held ei ther June 7 O'C June 29. Whi ttaker said Sue had asked about a time management course. The Council left it up tQ" Whittaker. WASTE MANAGEMENT ACT - HOST FEES Haugen informed the Council that she had received a letter from Sam Sivanich. The cities of Minneapolis and Elk River have contracted with Larkin, Hoffman Daly and Lindgren to lobby State legislators to amend the Waste Hanagement Act to instate "host fees" for solid \laste facilities located in those cities. The rate would be $1 per cubic yare Hennepin County is urging the cities to fight continuing pressures to increase the tip fee which is presently $95/Ton. Whittaker said, offering background information, that the County had gone back and forth on the compost, especially. They \vere going to manage the transfer stations or composting sites. Then they were going to reimburse us out of the tipping fee already being charged. They have not made any solid proposals or guarantees the~ are willing to have a transfer station or compost site. He said this has a lot to do with what has been done by Minneapolis and Elk River - they resented the County collecting all the money and not giving it back. Council directed Administrator Whittaker to decide what \-lould benefit the City. ADJOURNMENT Watten moved, Gagne seconded, to approve the claims for payment and adjourn the Council Workshop at lO:30PM. Motion carried unanimously. General & Liquor funds - Acct. No. 00-00166-02 General Liquor Checks #4008-4053 Payroll Checklist: Checks #203891-203926 $ 82,730.03 $ 38,642.89 $ 12,150.41 94,880.44 $ $ 2,933.43 41,576.32 Total RESPECTFULLY SUBMITTED, Susan Niccum Assistant City Clerk $ Larry E. Whittaker Administrator/City Clerk Jan Haugen Hayor 183 University Ave. E., St. Paul, MN 55101-2526 CONTACT LEGISLATORS TO OPPOSE AID CUTS IN SENATE TAX BILL cities should contact their state senators and representatives immediately in opposition to the harsh, punitive cuts in city aid and city spending proposed in the Senate omnibus tax bill, S.F.2540. Even though the Senate tax bill will already have been passed by the Senate when you receive this alert, it is important that you contact your legislators so that they will pressure tax conferees to lessen the aid cuts. . Inform your legislators about what city services will have to be cut as a result of the proposed aid and spending cuts. Urge your legislators to tap a portion of the state's $550 million rainy day reserve fund to avoid such cuts. Also tell your legislators not to make any further restrictions this year in tax increment financing. SENATE TAX BILL MAKES DEEP CUTS IN CITY AID --CITY LEVY LIMIT BASES ALSO CUT-- On March 28, the Senate Tax Committee completed work on its version of the omnibus tax bill, S.F.2540. Senate floor consideration is expected by Friday, March 30. House-Senate conference committee action will begin the week of April 2. At the brief hearings on S.F.2540, LMC President Millie MacLeod (Moorhead City Councilmember) testified against the deep city aid and harsh city spending cuts the bill contains. She warned that those cuts would force reductions in basic city services and city jobs. Instead of cutting city aid, MacLeod urged the committee to use a portion of the state's rainy day reserve fund. The Senate tax bill calls for $43 million in cuts in Pay '90 aid to local governments. For cities, the Pay '90 cut would equal 2.11 percent of the combined levy plus aid base -- nearly $22 million statewide cut in city aid. (In contrast, the House tax bill would require a 0.6 percent, or $6.1 million, cut in Pay '90 city revenue. ) The 2.11 percent reduction is both a permanent reduction in city aid and a permanent reduction in the levy limit bases of cities with populations over 2,500. The bill schedules even deeper aid and levy base cuts for Pay '91. The bill would force cities which _are cnrr~mt:ly nnder levv limits to reduce their spendinq by t:'hPL amount of the aid cut. cities are specifically prohibited from increasing thelr levies to make up for the aid cuts the bill prescribes. .,---..~...,-.:.,-----.-..-_....-------....-._~_--..--~-_._-"", .-....--.-. -- ...~.. ~_. , 1990 AID CUTS OF $43 MILLION The Senate aid cut of $43 million is achieved by reducing each local government's -revenue base- by 2.11 percent. For cities, the revenue base is defined as its Pay '90 levies plus Pay '90 LGA. The aid reduction is first applied to LGA (payments in July and December). If LGA is insufficient to absorb the cut, then equalization aid, disparity reduction aid, and homestead and agricultural credit aid (HACA) , in that order, would be cut. A print-out of the LGA cuts for each city is included in cities Bulletin #7 (March 30, 1990). The print-out shows only the LGA cuts; an additional $1.6 million is cut from HACA. The bill specifically requires that the total aid reduction caused by the 2.11 percent cut be permanently subtracted from the city's 1990 levy limit base. This translates the Pay '90 aid cut into a permanent city spending reduction. The bill states: "It is the intent of the legislature that the reduction in state aids . . . be implemented as a equivalent and corresponding permanent reduction in the cost of administration and operations at the local level." PAY '91 LGA CUT $30.7 MILLION The Senate tax bill would require even deeper cuts in cities' Pay '91 LGA. Under a complicated formula which includes the elimination of the LGA grandfather provision, the Senate bill would reduce Pay '91 LGA by $16.3 million below the Pay '90 LGA levels. The bill freezes LGA at that lower level and eliminates the Pay '91 LGA inflation increases of $14.4 million which are scheduled under current law. Both the $16.3 million cut in LGA levels and the suspension of the $14.4 million in inflationary LGA increases are aid cuts that will be used to permanently reduce cities' Pay '91 levy limit bases. Not only will cities under levy limits be prohibited from raising their levies to make up for the aid they lose, but they will be penalized for future LGA increases (which they did not receive) through permanent cuts in their levy limit bases. The levy limit base cuts caused by the loss of Pay '91 inflationary increases are punitive since these cuts represent a future loss of property tax relief which is not part of cities' levy limit bases. HACA REDUCITONS The Senate bill scales back the cost-of-living adjustment in the current Pay '91 HACA formula. Instead of a full inflation adjustment, the Senate bill would provide an adjustment equal to the rate of inflation minus 1.15 percent. This provision in combination with class rate changes save the state $34 million in Pay '91 HACA payments to cities, counties, and townships. The bill would also reduce or eliminate disparity reduction aid in Pay '91 for communities which have a combined local tax rate below 100 percent. 183 ["nhers;t.\' Ave. E.. St. Paul. ~IN 55101 -2526 March 29, 1990 TO: Mayors, Managers, and Clerks FROM: Joel Jamnik RE: Comparable Worth House Tax Committee Moves to Remove Special Levy from Pay Equity Bill The House Tax Committee considered and passed legislation dealing with the local government pay equity act at a hearing Tuesday, March 27th. Prior to recommending passage, the Tax Committee approved an amendment offered by Representative Ann Rest to remove a provision ... in the bill which would have allowed local governments a special . levy to raise tax money to pay for compensation adjustments to female-dominated classes of employees. ; The opposition to granting a special levy to pay for one of the most expensive state mandates of the last decade was widespread and included Republicans and Democrats and particularly the House leaders. Speaker Bob Vanasek, Majority Leader Dee Long, and Chairman Paul Ogren made their feelings quite clear that they opposed the special levy language. Speaker Vanasek also referred to a handout (a copy of which is enclosed) which showed how well city managers and administrators were paid compared to state agency heads and legislative leaders, as a rationale for supporting the bill. Representative Steve Sviggum was one of the few legislators to speak in defense of local governments. He and representatives of local governments made it quite clear to committee members that without a state appropriation for the mandate, and without a special levy, and given reductions in state aid to cities for two straight years (including this year's mid-year budget cuts), that some c::ities and other local governments would find it difficult to implement pay equity plans by the end of 1991, and almost impossible to do so without strictly restraining salary adjustments or laying off other employees. (over) Focus on city Reserves It was evident that a majority of the committee had little or no concern for local budgets and employees. Chairman Ogren indicated that cities could tap their large cash reserves to pay their share of the estimated $22 million needed for remaining jurisdictions to achieve pay equity. He distributed a table (a copy of which is enclosed) prepared by the state auditor that indicated that at the end of 1987 cities had average total fund balances which were 47.7% of current expenses, and general fund balances which were 34.7% of operating expenses. In short, the table demonstrated to Representative Ogren that cities have a 30% to 50% cushion from which to draw funds to implement pay equity and to absorb budget cuts. Not all committee members share Chairman Ogren's apparent lack of understanding of government finance. Some members recognize that since cities receive only nontax and nonaid revenue from January through May (or June or July depending on the whims of the state) and that paying for services such as snow plowing might necessitate having money in hand at the end of a fiscal year. The bill now goes to the House floor. laid over and the Senate bill was used now goes to the floor. The Senate has without a special levy provision. The House file, H.F.1198, was so S.F.488 is the bill which already passed the bill, also What You Should Do Call your legislator and request they introduce. and support an .. "amendmentcil"lowingaspeclal'levy for' pay equity and to oppose passage of any bill which does not provide financial assistance or a special levy. Inform them of the difficult choices that will have to be made if they don't provide help and that they will be accountable for any decisions local governments are forced to make. Particularly, you should stress the issue of fund balances or reserves. Legislators are using this bogus factor as the rationale for aid cuts and elimination of special levies. Our prospects for SUccess are slim, but we should be clearly on the record regarding these legislative actions. Call me if you have any questions. '1). c). f.R. Joc.u.~ COSTS TO ACHIEVE EQUITY These data are based on reports submitted by local governments to the Department of Employee RelatiQns. These reports were submitted in 1988 and were included in Pay Equity Analysis 100. Of these 20 reports, 12 had plans that would be considered in compliance, and 8 had plans that would be considered out of compliance. Cost of Total Annual Percent of Plans in Como11ance Como11ance payroll Payroll 1. Greater MN County $ 71,496 $ 2,622,384 2.7 % 2. Greater MN County 29,316 2,549,616 1.1 % 3. Greater MN County 42,036 2,551,980 1.6% 4. Greater MN County 87,000 5,060,621 1.1% 5. Suburban City 114,936 3,485,820 3.3 % 6. Suburban City 0 205, 116 0.0 % 1. Suburban City 23,040 838,428 2.1 % 8. Greater MN City .1,272 .2,196,216 0.1 % 9. Greater MN City 1,164 445,920 0.3 % 10. Greater MN City .18,456 .990,132 1.9% 11. Greater MN City 6,324 ..1,183,692 0.5 % 12. Greater MN City 10,224 371,172 2.8 % 6ote: 2'he ~Igures lIsted In -Cost o~ ComplIance- are the local governments' est.1JDates of the amount needed to provIde pelV equ1 tv for female classes. .Plans out of ComD1iance 13. Suburban City 66,732 5,493,240 1.2 % 14. Suburban City 27,744 2,980,980 0.9 % .15. Suburban City 15 ,348 394,260 3.9 % 16. Suburban City 155,304 5,164,824 3.0 % .. 17. Greater MN City 19,320 851,292 2.3 % 18. Greater MN City 18,048 801,468 2.3 % 19. Greater HN City 26,412 1,344,984 2.0 % 20. Greater MN City 115,584 . 4,044,564 2.9 % 6ote: 2'he fjgures lIsted In -cost of ComplIance- are the department's est.1JDates of the amount needed to ensure that female classes are not paId consIstentlv below ~e classes. Faith Zwemke Pay Equity Coordinator Department of Employee Relations 6121296-2653 March 14. 1990 Lj, l).Q.E..Q.. d..oCM t-t Pay for Selected City Managers and County Administrators 1989 Salary Survey Metro Area Hennepin County.. $89,600 Ramsey County..... BO,OOO Washington County..BO,800 "1nneapol1s City...16,600...... Bloomington C1ty...B2.000 Edina C1ty.........1B,500 Burnsville City....69,200 Plymouth C1ty......19,500 Brooklyn Ctr C1ty..75,585 Fridley C1ty.......12,000 M1noetonka ctty..~~15.600 St. louis Pt. City 12,500 81a1ne City........13,000 Robb1nsdale C1ty...71,SOO Golden Valley City BO.080 Richfield C1ty.....11,5l0 Greater Minnesota Albert Lea C1ty....62,595 Austin C1ty........51.272 ..ankato.City.......63.l29 ..arshall.C1ty......S9.675 Hew Ulm City.......59.363 H. Mankato C1ty....55.860 Rochester C1ty.....72,71B St. Cloud City.....58,020 '989 SalAries for Selected Minnesota State AQencv Heads Finance..........$71,173 Public Safety.... 65.903 labor & Indus.. ..66.145 . Corrections...... 65,903 Human Rights... ..57,331 Veterans Affairs..53,034 ~ _1I<lt,oviJ.6-~ Table 3.9: City Fund Balances, 1987 Tvoe of City .J/a..lldOo.-t o-f 1\--f1n.n Doren Average Total Fund Balance. as Percent of Current Exoenses. Average _ Genera! Fund Balance as Percent of Ooeratina Exoenses Twin Cities Metro Area Minneapolls-St. Paul Suburbs Outstate Over 25,000 5,000-25,000 1,000-5,000 Under 1,000 All Citiesb 9.8% 3.3% 57.2 39.6 42.6 30.2 48.8 39.0 73.6 61.7 121.6 121.8 47.7% 34.7% Source: State Auditor's Office. ~c1udes debt service. ~c1udes only 357 citie. that report on an accrual basis. I I