DEEPHAVEN CITY COUNCIL

THURSDAY, JULY 7, 2005

7:00 PM

 

1.         CALL TO ORDER:  Mayor Anderson called the meeting to order at 7:03p.m.

 

PRESENT:       Mayor Tom Anderson, Councilmembers Kim Crockett, Keith Kask, Paul Skrede and John Wheaton

 

STAFF:            Police Chief Virgil Gustafson and Zoning Coordinator Gus Karpas

 

ABSENT:        City Administrator Dana Young

 

2.         APPROVE CONSENT AGENDA

 

Motion by Councilmember Crockett to approve the consent agenda which includes the minutes of June 20, 2005 and verified's.  Councilmember Skrede seconded.  Motion carried 5-0.

 

3.                  MATTERS FROM THE FLOOR

 

David Gross, 19700 Lakeview Avenue gave the Council an update on the actions of the Lake Minnetonka Conservation District (LMCD).  He said the LMCD Board approved their 2006 budget without any changes.  He said the overall increase in the budget was 4.3% and Deephaven’s share rose 3.6%.  He said that he raised the concerns of the Deephaven Council without success and that the Board voted down four issues that Deephaven wanted changed.

 

Mr. Gross said the Board addressed the issue of Zebra Mussels and Deephaven’s wish that the LMCD would be more proactive in keeping them out of Lake Minnetonka.  He said that the LMCD is limited on what they can do by the DNR who states the infestation of Zebra Mussels into Lake Minnetonka in inevitable and it would be a waste of money to fight it.  The DNR said there is no advantage to quarantining Lake Minnetonka since the only way to stop Zebra Mussels would have been to quarantine the whole watershed district from the beginning.  It is too late to do that now.

 

4.         PUBLIC HEARINGS

 

VACATION OF UTILITY EASEMENT – Mike Miller, 19640 Cottagewood Road.  Request to vacate a utility easement that currently runs between lots two and three of Burton’s First Addition.

 

Zoning Coordinator Karpas explained that the lots have been combined, and that due to its area, cannot be re-subdivided without a variance.  He said that a Gopher One locate had been done on the property and that there were no utilities located in the easement.  He said the easement was created when the property was platted with the intent to serve the individual lots.  Since they’ve been combined, there is no longer a need for the easement.

 

Ben Arnold, representing the applicant was available for questions.

 

Councilmember Skrede commented that this item would have been addressed earlier if city approval was required for lot combinations, which it is not.

 

Councilmember Wheaton moved to adopt Resolution No. 25-05 approving the vacation of the utility easement at 19640 Cottagewood Road.  Councilmember Kask seconded the motion.  The motion carried 5-0.  Resolution 25-05 was adopted.

 

VARIANCE:  Mike Miller – 19640 Cottagewood Road, (R-2, 40,000)  Request for a twelve foot variance of the required lake yard setback to construct a partial second story on an existing structure.

 

Councilmember Crockett gave the Planning Commission report in which there was no objection from the Commission on the request and who recommended unanimous approval.

 

Councilmember Kask commented that the property was recently granted variances and felt that the applicant had every opportunity to present the proposed configuration while the current structure was under construction.  He said he wouldn’t be supportive of the request because the city has granted recent variances to allow reasonable use of the property.

 

Councilmember Wheaton believed the property’s past history has no bearing on the request before the Council.  He said is supportive of the request because it does not encroach any further into the required setbacks and there is no increase in impervious surface.

 

Councilmember Skrede said he is confused on the exact ownership of the property.  He’s not sure if this is a spec house for sale or the custom remodel of new construction for the new owner.

 

Zoning Coordinator Karpas explained that both Todd Gorr and Mike Miller have fee interest in the property and that if the city was to grant the variance and Mr. Miller did not close on the home, Mr. Gorr would still be able to construct the addition.

 

Ben Arnold, representative of Mike Miller, informed the Council that Mr. Miller was unable to attend the meeting because he was in Boston on business.

 

Councilmember Skrede said he is concerned about potential conflict between the buyer and seller as to the extent of the addition needed.

 

Mr. Arnold said the Mr. Miller was not supportive of the requested variance since he was unaware that the addition did not extend over the entire garage.  He said Mr. Miller would like to resubmit a plan, which meets his needs.  Mayor Anderson commented that if the request is denied the applicant would have to wait a year prior to submitting a new request.

 

Mr. Arnold said he would like to withdraw the plan and resubmit a plan, which meets Mr. Miller’s needs.  Councilmember Skrede said he was uncomfortable with accepting a withdrawal from Mr. Arnold without any type proof that he represents the applicant.  He said he would accept a withdrawal from Mr. Gorr.

 

Todd Gorr, Sunscape Concepts, said he was a little unsure on how to proceed.  Mayor Anderson pointed out that the representative for his buyer would like to submit an alternate plan.  Mr. Gorr said he would not like to go against the wishes of his buyer and asked if this could be tabled until the next Council meeting.  Zoning Coordinator Karpas reminded the Council that the 60-day limit expires prior to the next meeting and without written consent from the applicant waiving their right to a decision, the Council must take action or risk approval by default.

 

Councilmember Wheaton asked if the applicant would be able to receive approval and then amend the plan later.  He said he is also concerned with the ownership issue.  Mr. Arnold said it makes no sense to continue with this plan since it does not meet his client’s needs.

 

Mr. Gorr asked that the request be withdrawn until such time he can meet with Mr. Miller.  He said he would like to be able to approach the Council directly if the plan is not altered.

 

Nancy Middleton, 203 Mill Street, said she was speaking as a former Planning Commission and City Councilmember.  She said the original variance request for this property was emotionally charged, with the applicant pointing out several times that the structure to be built would be his dreamhouse.  She feels the request was misrepresented to the Council and that the elevations which were approved were altered during construction.  She doesn’t want to see a situation where this property continues to seek variances as it is developed and feels that all variances should have been sought originally.  She commented that she is very uncomfortable with the whole situation.

 

5.         UNFINISHED BUSINESS

 

A.                 Review Appeals from June 15th Deadline

 

Mayor Anderson gave an overview of the issues stating that five leaseholders did not meet the June 15th deadline, with only two, Charles Wishy and Mike Chappelle, who chose to appeal the City’s decision to revoke their 2005 Boating Permit.  He said correspondence received from Charles Wishy, 18100 Highland Avenue, indicated that he was unable to place his boat at his slide because a rock had been placed on the boat launch at St. Louis Bay prohibiting access to the lake.  Mike Chappelle, 4282 Circle Drive, wrote a letter indicated that he was unaware of the deadline.

 

Councilmember Crockett commented she didn’t know if she could support the appeals.  She noted that the rock at St. Louis Bay is put in place every year when the Main Beach opens for safety reasons and that Mr. Wishy had other options for placing his boat into the lake.  As for Mr. Chappelle, she commented that the lease signed by all permit holders clearly states the deadline and the City can’t be responsible to remind all permit holders of the upcoming deadline.

 

Councilmember Kask agreed with Crockett’s conclusions.  He said the city has not done anything differently than it has for the past number of years.

 

Councilmember Wheaton agreed that the reasons given were not particularly strong, he wanted to make sure the city was consistent in its enforcement.  He is concerned about the permanency of the punishment.

 

Mayor Anderson commented that most people who have gone through the appeals process have been reinstated, but not all.

 

Councilmember Skrede discussed the fifteen individuals who were in this situation last year.  He said seven appealed.  He was in favor of addressing each request individually, but the rest of the Council did not agree and all seven were reinstated.  Councilmember Crockett reminded Skrede that those appeals were for reinstatement on the waiting list.  Councilmember Skrede noted that the Council has been more lenient when it pertains to the waiting list and much tougher when it comes to the docks.

 

Councilmember Wheaton said it would be beneficial to include information whether individuals going through the appeals process have done so in the past to see if there is a pattern.  He felt that a monetary penalty should be added to the appeals process.  Mayor Anderson indicated that a penalty has been discussed in the past but that it has no bearing on the current appeals.

 

Councilmember Kask moved to deny the appeals of Charles Wishy and Mike Chappelle as presented, since the explanations offered do not meet the expectations of the City.  Councilmember Crockett seconded the motion.  The motion failed 2-3.  Upon roll call vote on the motion Councilmembers Crockett and Kask voted aye.  Councilmembers Anderson, Skrede and Wheaton voted nay.

 

Councilmember Skrede moved to reinstate boating permits for Mike Chappelle and Charles Wishy.  Councilmember Wheaton seconded the motion.  The motion carried 3-2.  Upon roll call vote Councilmembers Anderson, Skrede and Wheaton voted aye.  Councilmembers Crockett and Kask voted nay.

 

B.                 Approve Lease Agreement with Minnetonka Youth Club

 

Mayor Anderson gave an overview of the current lease situation with the Minnetonka Yacht Club (MYC).  He asked for Council comments on the proposed lease agreement.

 

Councilmember Kask said he received a letter opposed to the city renewing the lease with MYC in its present form.  The letter stated that the MYC shouldn’t be treated any differently than individual citizens who are required to sign a new dock lease on an annual basis.

 

Councilmember Skrede said he was appreciative of the changes made by the City Attorney.  He feels the last item is the length of the lease.  Councilmember Kask felt five years was appropriate, while Councilmember Wheaton thought is should be fifteen years.

 

Mayor Anderson felt it should be renewed on an annual basis, which would permit future Councils the ability to review the lease.  He feels there is a lot of activity at the Main Beach site and locking the MYC into a long-term lease could affect future plans by the City.

 

Councilmember Wheaton feels the MYC is an asset to the community.  He said the city has had a long term relationship with the MYC that should be taken into account in the lease negotiations.  He agrees that a twenty-five year lease is too long, he also feels an annual review would be too much.

 

Councilmember Crockett expressed concern about the negative affects brought onto the neighborhood around the Main Beach by the Lake Minnetonka Sailing School (LMSS).  She’s not happy with how the LMSS is addressed in the lease, basically obligating the City of Deephaven to provide for the length of the lease.  She feels there could be a time during the lease when the city could conceivable not be able to provide the docking space.

 

Councilmember Kask said he would support a shorter lease term, somewhere around two or five years.  He’s not supportive of the lease as presented.

 

Councilmember Skrede commented that the City Council deals with many items on an annual basis saying that it would not be inappropriate to include the lease agreement with the MYC.  He said the Council has no intention of being punitive, but still has no intention of entering into an agreement that ties future Council’s hands.

 

William Dickel spoke on behalf of the MYC.  He said the MYC feels it is an ingredient of what makes up the City of Deephaven.  He hopes the relationship with the city can continue.  He said the lease contains language to address access if the city were to do make changes at the Main Beach.  He said there has been a change in the MYC needs and the number of mooring spaces has been reduced from three to two.

 

Mayor Anderson questioned whether the city had the right to rescind access.  Councilmember Skrede asked if there was any situation, which would lead a future Council to deny docking space.

 

Mr. Dickel said there was no reason in a business sense, but could see where personality conflicts with future Councils could threaten access.

 

Councilmember Skrede asked what the MYC and LMSS would do if the city developed a new dock configuration which leaves them with no docking facilities.  Mr. Dickel said the proposed lease is flexible and contains language to address that concern.

 

Councilmember Skrede said he was trying to be sympathetic to the needs of the MYC and understands their concern with a short-term lease but commented that residents have to renew their leases annually.  He doesn’t know if a twenty-five year lease is beneficial to the city.

 

Councilmember Wheaton emphasized the long term relationship between the city and the MYC.  He understands there are some issues with the LMSS, but feels that is a separate issue.  He said he is comfortable with a longer-term lease.  He recognizes that twenty-five years is a long time and would support a ten to fifteen-year lease.

 

Mayor Anderson said the term of the lease should not be an issue if the relationship between the City of Deephaven and MYC is strong.  He would like the city to have some flexibility.  He said that residents must renew on annual basis and allowing the MYC to do differently gives a message that the city is more trusting of the MYC than its own residents.

 

Councilmember Wheaton said there is a developed history between the MYC and the city.  It’s a much more intertwined relationship than the city may have with individual residents.

 

Mayor Anderson asked how many members there were in the MYC.  Mr. Dickel said about three hundred and fifty.  Anderson said that is three hundred and fifty individuals accessing public property without any controls.

 

Mr. Dickel said the city is entitled to confront violations.  He said the difference between the MYC and individual residents is that there is turn over in private dock leases as residential property changes hands, which is not an issue with the MYC.  He said that justifies a longer-term lease.

 

Councilmember Kask moved to approve the Lease Agreement with the Minnetonka Yacht Club subject to clarification in the lease of the proper name of the Lake Minnetonka Sailing School and that the lease be amended to show that only two boats would be moored instead of three.  The motion is further conditions that the lease terms not exceed five years in length.  Councilmember Crockett seconded the motion for discussion.

 

Councilmember Crockett said she has a list of items that she feels have not been met with the proposed lease agreement.  She said the area to be leased has not been clarified and neither has the length and width of boats to be stored.  She objects to the idea that the dock be marked private and would like to see that language removed from the lease.  She doesn’t feel the city has gotten good counsel from the City Attorney on how to deal with the LMSS and would like the city to be indemnified from activities.  She feels there should be some discussion on how to address issues if the school grows beyond its current use.  She said she’s not happy with the draft and would like it tabled for further review.

 

Mayor Anderson asked who drafted the proposed lease.  Mr. Dickel said it’s basically a copy of the old lease with amendments.  Mayor Anderson said he would have preferred a lease agreement drafted by the Council, which would be all inclusive of its concerns.

 

Councilmember Kask is opposed to language limiting the MYC use of the dock.  He said the draft document has served the city for the past twenty-five years and would not prefer to micro-manage at this point.

 

Pat Florance, 3920 Walden Shores Road, said she has no problems with the MYC, but is concerned about the LMSS.  She said the school has double or tripled in size the sixteen years she has lived in her home.  She says it puts a strain on beach parking and is concerned about who controls the hiring and firing of employees.

 

Councilmember Wheaton said that the city doesn’t want to micro-manage and that the Police Department can address violations of the ordinance by the sailing school.  He pointed out that the lease is for the use of the dock and not the specific use of the MYC and LMSS.

 

Mayor Anderson reminded the Council that there was a motion on the table to approve the lease agreement subject to clarification of the proper name of the Lake Minnetonka Sailing School and the amendment of the lease to show the mooring of two boats instead of three and that the term of the lease is for five years.

 

The motion carried 4-1.  Upon roll call vote Councilmembers Anderson, Kask, Skrede and Wheaton voted aye.  Councilmember Crockett voted nay.

 

 

C.                 Discuss Issuance of Temporary Parking Permits for Sailing School

 

Mayor Anderson presented the request of the Lake Minnetonka Sailing School (LMSS) to obtain twenty temporary parking permits for the LMSS parent’s day.  He said the LMSS has provided a number of specific dates to the city when they would need permits.

 

Councilmember Crockett said she was disappointed that the LMSS did not send a representative to present the request.  She said she is concerned about the potential number of spaces, which would be taken during prime beach time.  She feels they could park at the Minnetonka Yacht Club (MYC) and shuttle over to the beach area.  She believes an administrative fee should be charged if the Council were to approve the request.

 

Mayor Anderson commented that homeowners currently could receive up to ten temporary parking permits.  Police Chief Gustafson clarified, that homeowner can get parking permits to park in front of their private residence if the area in front of their home is permit parking only.  He said that the LMSS has been issued twenty permits already for July 8th.

 

Councilmember Crockett asked about the estimated number of vehicles associated with the LMSS parent’s day.  Chief Gustafson said there were between forty and fifty vehicles in the past.

 

Councilmember Skrede supported the proposed ordinance and agreed with the proposed fee.  He feels other private events, such as the Regatta, should be included in the fee requirement.  Councilmember Wheaton agreed and thinks that not only should the number of permits be limited, but also the number of events in which permits will be issued.

 

Mayor Anderson commented that this was the third time this season that the Council has been approached for special permits for events held by the MYC and the LMSS.

 

Councilmember Kask feels the city should tell the LMSS to use the MYC parking area and allow for overflow parking to be placed at the dirt lot adjacent to City Hall.  He said he is not supportive of displacing residents due to private events held by the MYC and LMSS.  Councilmember Crockett agreed.

 

Councilmember Wheaton feels that LMSS parent’s day is not a big priority for the city.  Mayor Anderson commented that he would be upset as a resident if he were unable to find parking for the beach due to use by non-residents with temporary permits.

 

Councilmember Skrede said that staff has outlined two avenues of action.

 

The Council agreed to take no action, essentially denying the request by the LMSS.

 

 

D.                Approve 2006 Fire District Budget

 

Councilmember Skrede gave an overview and explained that this is only a discussion item with no official action required.  He said the procedure for approving the budget has changed with the budget presented to all Councils for comments prior to a final vote.

 

Skrede said that there are only two issues he has with the budget.  The first has to do with the amount designated for training.  He said that since the initial push for recruits is now over, that amount should go down.  He said the training monies should be separate from firefighter pay and overtime in the budget.

 

Councilmember Skrede’s second issue concerns continuing education and conferences.  He said the Fire District overspent the budgeted amount by $14,000 last year.  He would like to request that more internal controls be put in place to avoid such infractions.    He also feels that a quarterly update should be provided to all member cities and discretionary spending items be approved by the Fire Board.

 

Skrede said the overall increase in the budget over last year would be approximately $80,000 or 6.62%.

 

Mayor Anderson said that discussions have been held on response time, which has always been a concern for the city.  He said that the Fire Chief is working on a specific set of performance standards for response time.  Councilmember Skrede noted that the response time last year was 9.85 minutes and that through May of this year it has dropped to 8.6 minutes.  Skrede noted that an outside variable, such as winter weather, cwould affect response time, so it was decided to monitor monthly averages, rather thank try to set a goal for each response incident.

so the average would most likely go up slightly by years end.

 

Councilmember Crockett asked about the “Sums of all Factors” portion of the budget which sets the percentage cities pay to the district.  Councilmember Skrede said that the table is a little misleading since the current percentage is not equal to the end percentage the city will end up paying in future years.  Currently the City of Deephaven is paying 26.47%, but that percentage will increase based on the estimated market value to 28.23% over the next few years.  He noted that the City of Deephaven comprises only fifteen percent of the total calls yet will be paying 28% of the cost.

 

Mayor Anderson asked if the Council was prepared to make a motion to adopt the budget subject to the recommendations make by Councilmember Skrede.  Councilmember Skrede clarified the conditions including better internal control of discretionary spending, reviewing the training expenses and discussing the purchasing procedures for capital equipment.

 

Mayor Anderson moved to grant preliminary approval the 2006 Fire District Budget subject to the conditions discussed by the Council including fiscal controls over discretionary spending and requiring quarterly budget reports.  Councilmember Kask seconded the motion.  The motion carried 5-0.

 

E.                 Discuss Lake yard Setback Standards

 

Mayor Anderson addressed the issue, explaining that the Council has talked about reducing the required lake yard setback for the properties located on the back end of Carson’s Bay.  He feels the existing one hundred-foot setback is unfair due to the nature of the shoreline on those properties and supports a reduction.

 

Councilmember Kask noted the lake setback has been a point of discussion off and on for a number of years.

 

Zoning Coordinator Karpas expressed concern about consistency throughout the city and would not want to give the impression that one area is being shown favoritism.  Councilmember Kask said the Bback Bbay area has a unique shoreline so it can be distinguished from the rest of the city though he’s not opposed to discussions reducing the setback for the entire city.

 

Councilmembers discussed the unique situation on the Bback Bbay and directed staff to compile information on the existing setback conditions for the properties and draft ordinance language to reduce the lake setback in that area.

 

6.         NEW BUSINESS

 

A.                 Authorize Purchase of 2006 Plow Truck

 

Councilmember Skrede explained that there are funds, approximately $110,000, in the budget to purchase a new plow truck.  He said the purchase of a new truck has been pushed out a number of years and the time has come where a new one is needed.  He said the Public Works Supervisor has gotten a quote price of $106,000 for a replacement.  The purchase of a new truck will make the public works crew more efficient and allow them to clear the roads more quickly so they can focus on other areas of importance.

 

Councilmember Kask asked if purchases such as this require bids.  Skrede said they do, but typically, the city goes with whoever is listed on the approved State Contract.

 

Councilmember Crockett moved to approve the purchase of a new 2006 Plow truck.  Councilmember Wheaton seconded the motion.  The motion carried 5-0.

 

7.         REPORTS FROM BOARDS, COMMITTEES AND DEPARTMENTS

 

A.                 Public Safety

 

Police Chief Gustafson told the Council that the Police Department is now using their new trucks.  Gustafson thanked the Council for the money budgeted for training and said his officers are very appreciative.  He informed the Council that he has used one hundred dollars for a “chaplain’s pager”, allowing officers to page a religious representative when one is needed to comfort victims.

 

B.                 Public Works

 

Councilmember Skrede briefed the Council on discussions with Schoell Madsen on addressing some of the concern areas for drainage.  He told the Council that the seal-coating project was set to begin next Tuesday and would take about a day and a half and said the city was working discussing with St. Therese theo repair of the sidewalk along their property line.

 

C.                 Administration

 

Mayor Anderson said there were no copies of the budget distributed due to Administrator Young’s absence.  He did comment on one area of concern, building permit revenues.  He said there is currently a forty thousand dollar shortfall, which could be made up if construction on Deephaven Cove were to begin this year.

 

Mayor Anderson briefly discussed contract talks held with the cities of Greenwood and Woodland.  He said there is a concern aboutpossibility of  the City of Woodland contracting City Clerk services with the City of Wayzata.

 

D.                Other

 

Councilmember Wheaton gave an update on the preparation for Deephaven Days.  He said he is pleased with the participation of ordinary citizens, especially the Gustafsons, and groups like the Historical Preservation Society.  Councilmember Skrede offered to put information on the website to help the cause.

 

ADJOURNMENT

 

Motion by Wheaton to adjourn the meeting.  Councilmember Anderson seconded.  The motion carried 5-0.  The meeting adjourned at 9:40 p.m.

 

Respectively submitted,

 

 

Gus Karpas

Zoning Coordinator