062308 CC WS MinCITY OF SHOREWOOD
CITY COUNCIL WORK SESSION
MONDAY, JUNE 23, 2008
MINUTES
1. CONVENE CITY COUNCIL WORK SESSION
Mayor Lizee called the meeting to order at 6:00 P.M.
5755 COUNTRY CLUB ROAD
COUNCIL CHAMBERS
6:00 P.M.
A. Roll Call
Present. Mayor Lizee; Councilmembers Bailey, Turgeon; Wellens and Woodruff; Acting
Administrator/Director of Public Works Brown; Finance Director Burton; Planning
Director Nielsen; and Engineer Landini
Absent: None
B. Review Agenda
Wellens moved, Woodruff seconded, Approving the Agenda as presented. Motion passed 5/0.
2. IMPLEMENTING AN ADMINISTRATIVE ENFORCEMENT PROCESS
Director Nielsen stated Staff has advised Council that the present system of code enforcement is
extremely costly and time-consuming, and it recommends the City do something different. He cited an
example of a zoning violation that has dragged on for nearly a year and cost the City thousands of dollars
in staff time and legal fees.
Nielsen reviewed the City's current process for Handling code enforcement. The City receives a
complaint and after it verifies there is a violation it sends a violation notice. The violator is informed they
have 10 days to appeal. Most frequently the violator appeals for more time to correct the violation, and
the Council usually grants an extension if the violator has made a good faith effort to correct the
violation. The violator can also appeal they are not in violation. There are times the violator ignores the
violation notice and does nothing. In instances where the violator chooses not to comply with the Code,
the City turns the situation over to the City Attorney. The Attorney prepares a code enforcement
complaint which is signed and executed at Hennepin County District Court. The District Court is
responsible for service of the complaint upon the violator.
Nielsen explained several cities in Minnesota have implemented systems of administrative citations and
penalties. The cities issue tickets for certain level offenses and impose local fines for code violations.
Rather than pursuing a violator through the district court system, a city appoints a hearing officer to
conduct, essentially, a city court. This process greatly minimizes the need for lawyers by either a city or
violator, especially for minor offenses. The City of Minnetonka is the closest city to Shorewood to have
implemented an administrative enforcement process. Minnetonka had approximately 200 cases in 2007,
and all of them were resolved before going to court. Minnetonka randomly selects a lawyer from a group
of local lawyers to conduct a "city court" session.
Nielsen stated by using this process the City would receive all of the money from the local fines imposed
for code violations. The need for attorneys would be minimized thereby reducing the City's costs. The
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,Tune 23, 2008
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fine schedule would have a sliding scale where the fine would continue to increase based on the number
of offenses. The level of the fine should not be so high that it is worth it for a violator to hire an attorney
to fight the citation, but it should be high enough to get them to comply and deter them from doing it
again.
Director Nielsen stated Staff would like Council to provide direction on what to do next. If Council
thinks the process has merit Staff will gather more information, document how the process would work,
and prepare a draft ordinance.
Mayor Lizee stated it was an appropriate time to update the process used to address code violations,
noting the court system could be used when necessary. It would be worthwhile to have a process that has
the potential to resolve violations quicker, consume fewer City resources in doing so and appease the
residents. If Council was receptive to it, representatives from the City of Minnetonka could be invited to
a Planning Commission meeting to discuss their process and provide insight into their experiences with
the process. As long as the process is legal it is worth researching further.
Director Nielsen questioned if Mayor Lizee was stating this item would be referred to the Planning
Commission. Lizee agreed that was her recommendation.
Councilmember Turgeon stated she did not understand why this would go to the Planning Commission
for consideration; she considered this to be similar to the time-of--day watering restriction that is under
consideration. She assumed there is a cost to have an attorney hold a "city court" session and she
questioned how the attorneys were selected. She assumed it would be the City Administrator's
responsibility to define the process and make sure it is adhered to. She would like more information
before she wanted to involve Minnetonka representatives.
Director Nielsen clarified the intent this evening was to initiate conversation; Staff understood it would
have to gather more detailed information. This process is for code violations; it has nothing to do with
traffic violations. He stated he was not aware of any situation for the City where a judge issued a fine
greater than $200, and that barely covers one hour of attorney time.
Councilmember Woodruff suggested all potential failure-to-comply situations be considered for this
process. He liked the idea of being able to resolve violations locally; not having to use the District Court
system was a big advantage.
Councilmember Wellens could support the process except for one thing; he expressed concern with this
policy because the City would make the law and then enforce it. The separation of duties clauses in the
constitution states a legislative branch does not enforce the law as well. Just because it is successful in
Minnetonka does not mean the rights of citizens residing in Minnetonka have not been infringed upon.
He commented the court found the City's sump pump ordinance unconstitutional because it violated the
residents' civil liberties. If it weren't for that one issue, he thought the process could be a good one. He
recommended Staff do further research.
Councilmember Bailey stated he strongly supported the process. He did not think the City should be out-
front on these types of things; therefore, he would also like Staff to research if there were any situations
where the process did not work very well He explained the residents would not lose any rights with this
process because they still will have access to the court system.
Director Nielsen stated Staff will research this further and bring it back to Council for discussion.
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June 23, 2008
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3. BUDGET SCHEDULE - 2009 BUDGET KICK-OFF
Director Burton stated she had provided Council with a 2009 budget schedule which is similar to
previous years. She explained that Capital Improvement Program (CIP) and General Fund budgets are
processed throughout the summer in order to meet the September 15"' State required deadline to adopt the
Proposed Tax Levy which will include anot-to-exceed levy amount. Review of the budgets will begin
with a work session on July 215` at which time preliminary drafts will be ready. Enterprise budgets will
be reviewed in the fall. The City will hold its Truth-In-Taxation public hearing on December 1, 2008.
She noted that if needed, budget work sessions could be held each Monday evening in August.
Burton explained the Legislature recently passed levy limits for 2009 - 2011 for cities with populations
exceeding 2,500. It's anticipated that the City's allowable increase for Pay2009 would be $158,220
(based on a 3.9% levy limit). The levy limit law allows for "special levies", which are levies for items
such as debt service on bonds, natural disaster recovery, and other specifically identified exceptions.
Burton stated it would be helpful for Staff if Council identified goals and specific programs that it would
like to have Staff address in the proposed budget. Staff expects a general continuation of the status quo in
terms of the scope and costs of day-to-day operations. The greatest volatility may be in fuel and energy
costs. There will be a slight increase in employer PERA costs as mandated by the State. An area of large
expenditure for the City is the cost for public safety services and that amount has not been determined
yet.
Councilmember Woodruff suggested Staff be given a target for a budget percent increase, and he
proposed the target be 3.5%. Staff could then prepare a prioritized list of items and associated costs it
believes are important but can't be funded within that increase. Core inflation is in the 2.8% - 2.9%
range, and if food and fuel is included it's 4% - 4.5%. From his vantage point, it would be beneficial to
have a draft list of 2009 goals and priorities available prior to the budget being discussed. He commented
tennis courts have been a hot topic of conversation lately and there is the need for landscaping, furniture,
audio visual equipment and a possible phone system for City Hall that must be discussed. Those are in
addition to regular projects.
Councilmember Turgeon proposed a 0% increase, and she requested Staff prepare a list of what can't be
funded. Council can then determine what the priorities for funding are and they can be added back within
the levy limit increase of 3.9%.
Councilmember Bailey stated there were some increases the City had no control over. The cost for public
safety services is not known yet. Mayor Lizee stated the SLMPD Coordinating Committee is scheduled
to meet on June 25t1i to discuss the SLMPD operating budget, and that budget will be presented to the
member cities' councils in July.
There was ensuing discussion as to whether or not the addition of SLMPD police officers would count
against the levy limit, and there were varying interpretations of that. That must be clarified because the
City technically contracts for services from the SLMPD.
Councilmember Turgeon clarified stated if the target increase was 0% Staff would have to identify what
it would cut in order to meet that target.
Director Burton stated personnel related expenses account for approximately 80% of the operating
expenses. It's most likely that employee insurance premiums will increase in 2009. She explained the
City increased the transfers to the capital funds last year by $300,000. If the levy did not change and
transfers to the capital fund were less this year, that could make up the difference; Council would have to
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June 23, 2008
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determine its philosophy on that. She noted the cost for public safety services is approximately 18% -
20% of the budget.
Councilmember Wellens stated he was favoring the 0% target increase because of the three-year levy
limit. He did not want the liquor fund money used to maintain the status quo; he would like those funds
to be used for something outside of day-to-day operations.
Director Burton stated cities budget one year at a time. For Pay2009 the City can levy up to a 3.9%
increase. A new levy increase percent will be determined for 2010 and 2011.
Mayor Lizee stated Staff has consistently produced a responsible budget, and Staff has experience in
dealing with levy limits. She suggested Staff prepare an initial budget based on non-discretionary
increases and nondiscretionary expenses (e.g., public safety services), working within the levy limit
constraint. There are projects which have been identified to be accomplished in 2009, and it is important
to reinvest in the community. She did not think it was a priority to identify them for 2009 at this time
because the entire Council is up for re-election. She asked Staff prepare a responsible budget for
discussion.
Councilmember Woodruff stated this Council will set the budget, and therefore dictate what projects can
be funded in 2009. He thought it was important for Council to have a draft list of priority projects for
2009, noting the new Council can change the list. Mayor Lizee stated she agreed the Council should
identify major projects, but she did not think it was necessary to identify the goals and priorities for April
2009 -March 2010.
Director Burton commented the potential new City Administrator is taking an active interest in the
budget process.
Councilmember Bailey stated there could some benefit to have Staff identify what it thought the lower
priorities were for budget funding; that list could be used to make adjust-nents to the budget. Some items
will be high on the list and some will be low. The question will eventually be asked, so it was better to
prepare for it.
Councilmember Woodruff stated he preferred a 3.5% increase target, Councilmembers Turgeon and
Wellens stated they preferred a 0% increase target, and Mayor Lizee stated she preferred a 3.9% increase
target. Councilmember Bailey stated he was indifferent to the percent increase number but he thought
Staff should prepare the priority list, and a 0% increase target was a draconian way to accomplish it; a
3.5% increase would also do the same thing. Woodruff then stated with a 0% increase target there would
be more items that fall outside of the funding limit. He could support a 0% increase target and it will
force introspection.
Mayor Lizee stated a 0% increase approach would be a different way preparing the budget. She
cautioned Council has to be able to discern what has to be done and what is truly discretionary.
4. WATER DISCONNECTION POLICY
Director Burton stated Staff received a request from council to review the City's water disconnection
policy. She explained the City Code (Section 903.09 subd. 3.b) states when a water service account
becomes past due, "a notice shall be sent to the customer informing them that the account is delinquent
and if the account balance is not paid in full within 15 days, the water will be shut off and the prescribed
shut off fee will be assessed.". The disconnection of water service does serve as an excellent collection
tool. The City usually has a small number of customers (maybe 6-8) who reach the point of disconnection
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June 23, 2008
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during a year. The customer has a huge motivation to pay the bill and most disconnected customers
usually pay the bill within hours; the City then reconnects the water service and charges a $25
reconnection fee to do so.
Burton reviewed some of the uundesirable aspects of disconnecting water service. It's time consuming for
the Public Works staff. It has to hang door tag warnings, locate the service and disconnect, and once the
account has been paid it returns to reconnect the service. There have been instances where the Public
Works staff felt threatened or were placed in dangerous situations.
Burton stated another approach to dealing with past due water service accounts would be to certify
delinquent balances to the County to be placed on the property tax rolls for collection; the City currently
certifies past due balances for other city utility services. Several other cities do not do any
disconnections; they Lrtilize the certification process.
Burton explained if Council chooses to change the policy, City Code (Section 903.19) requires a public
hearing be held and an ordinance amendment to the City Code be adopted.
Acting Administrator Brown stated he was one of the individuals who asked this potential change in
policy be discussed. He cited a relatively recent situation when a hostile customer was informed their
water service would be disconnected and the customer took many steps to try and prevent that from
happening (paying the past due account was not one of the steps). It took a period of two weeks before
the Public Works staff was able to disconnect the service. It's customary for the Public Works staff to
follow-up to ensure the water service is still off. During that follow-up call staff noticed there was a
handgun and ammunition on the counter in the house, and knowing the individual was very hostile staff
was extremely concerned. He stated in other communities there are times when individuals will wear
protective vests when they go to disconnect water service. Based on the situation just cited, he questioned
why he would want to place staff in such a situation again.
Brown explained because most customers are at work when the water service is disconnected, they don't
come until the end of the work day to pay settle up on their account. This results in Public Works staff
having to come back to work to reconnect the water service; the City does not want to leave the customer
without service overnight.
Mayor Lizee stated she was pleased to see this on the agenda as she had asked. As the Mayor, she has
been involved with these situations. With regard to the situation Acting Administrator Brown described,
she noted she had been worried for staff and for herself as the individual knew where she lived. She
stated certifying delinquent balances for water will circumvent similar situations.
In response to a question from Mayor Lizee, Director Burton explained the certification to the County
requires the Council adopt a resolution listing the certifications. Attorney Keane stated it was a
legislative matter.
Director Burton clarified if the City adopted the new policy, the City would no longer disconnect water
service for delinquent accounts. She stated if the property owner did not pay for the account balance
certified on their property tax bill the County would treat that payment shortage as delinquent taxes.
Council directed Staff to schedule a public hearing on this proposed policy change and to prepare a draft
ordinance to amend the City Code.
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June 23, 2008
Page 6 of 7
CITY ADMINISTRATOR PERFORMANCE REVIEW FORM
Turgeon moved, Woodruff seconded, recessing the meeting at 6:50 P.M.
Mayor Lizee reconvened the work session at 9:22 P.M.
The following changes were agreed to.
- Add an section rating item to each category
- Add an overall rating item for the entire review
- Relations with the City Council
- None
- Planning
- Delete E, H and J
- In C correct the spelling of policies
- In G delete the word community
- Change I to "The Administrator develops and maintains awell-constructed long-
range (strategic) plan which is adopted by the Council."
- Organizational Skills
- Delete D, E, G and I
- Change B to "The City Administrator provides effective solutions."
- In C delete "and obtains the best possible end result for the money spent" and
correct the spelling of efficiently.
- Change F to "The City Administrator executes research as needed to help guide
Council decisions."
- Change H to "The City Administrator uses an effective system to measure
program outcome."
- Budget and Finance
- Delete B and F
- Change G to "The Administrator plans, organizes and supervises the most
economic utilization of staff, contractors, materials, facilities and equipment."
- Community Relations
- In E change contact to contacts and add after accurate "and without personal
bias."
- Change F to "The Administrator effectively communicates City policies or
updates on current issues to the public through a variety of media."
- Personnel. Relations
- In A change team to staff.
- In B at the end add "commensurate with benefits to the City."
- In D change use to uses
- Change E to "The City Administrator is effective in his/her overall management
style in dealing with employees."
- Change G to "annual performance evaluation are developed and performed for
staff on a timely basis and are related to goals and priorities."
- Leadership
- Delete A, B, F, H, J and L
- In D at the end add "and put•sues opportunities to improve the organization."
- Change G to "The City Administrator has the ability to resolve conflicts,
handling people well in difficult situations."
CITY OF SHOREWOOD WORK SESSION MEETING MINUTES
June 23, 2008
Page 7 of 7
- Leader Intergovernmental Relations
- Delete B, C, D and E
- In F add "and associations" at the end.
Councilmember Bailey clarified. the category ranking does not reflect a weighted score for items in the
category.
Acting Administrator Brown will make the changes discussed.. No further action will be taken on this for
a while. It's appropriate to have the new City Administrator comment on the review form before it is
finalized when time permits.
6. OTHER
There was no other business for discussion.
7. ADJOURN
Woodruff moved, Turgeon seconded, Adjourning the City Council Work Session Meeting of June
23, 2008, at 10:17 P.M. Motion passed 5/0.
RESPECTFULLY SUBMITTED,
Christine Freeman, Recorder
~ ~1 ~ ~
~~
Christine Lizee, Mayor
ATTEST:
-~
A. Brown, Acting City Administrator/Clerk