DEEPHAVEN CITY COUNCIL

MONDAY, NOVEMBER 6, 2006

7:00 P.M.

1. CALL MEETING TO ORDER: Mayor Pro Tem Skrede called the meeting to order at 7:00 p.m.

PRESENT: Mayor Pro Tem Skrede, Councilmembers Kim Crockett, Keith Kask and John Wheaton

STAFF: Police Chief Virgil Gustafson and City Administrator Dana Young

ABSENT: Mayor Tom Anderson

2. APPROVE CONSENT AGENDA

Motion by Councilmember Wheaton to approve the consent agenda, consisting of the minutes of October 16, 2006, the Verified Accounts, Approval of the Park Committee Recommendations, Approval of Lakeview Avenue Storm Sewer Repair/Storm Sewer Equipment, Approval of the Fiscal Agent Services Agreement, Adopt Resolution No. 25-06, Requesting Review of EFD Allocation Formula and Authorize the Hiring of Benjamin Nordell as a Police Officer. Seconded by Councilmember Kask. Motion carried 4-0.

3. MATTERS FROM THE FLOOR

Police Chief Gustafson gave the Council a brief background on the newly appointed Police Officer, Benjamin Nordell.

Mayor Pro Tem Skrede administered the oath of office to Officer Nordell.

4. PUBLIC HEARINGS

A. Variance – Bob and Colleen Wilson, 3860 Talton Place (R-3, 20,000). Variance request to build a new home located within the required front and corner lot, rear yard setbacks. The requested setback variances are for nine feet, seven inches of the required thirty-five foot front yard setback and for ten feet of the required twenty-five foot corner lot, rear yard setback.

Zoning Coordinator Karpas outlined the variance request for the Council. He noted that the City Engineer reviewed the plan and verified that there were no steep slopes on the property, per the request by the Planning Commission.

Bob Wilson discussed the request. He and his wife have been residents of the city for a number of years and are looking to downsize to a one-level home. They have worked to design a home that would maintain the character of the neighborhood. Mr. Wilson discussed the variance criteria and said they have a hardship due to the size and shape of the lot. He noted that only the front porch encroaches into the required front yard setback.

Councilmember Crockett gave the Planning Commission report informing the Council that the Planning Commission unanimously recommended that the Council approve the request. They felt a hardship exists in the size and shape of the lot and the increased setback requirement for the undeveloped road.

Mayor Pro Tem Skrede opened the public hearing. Hearing no public comment, the hearing was closed.

Councilmember Crockett moved to approve a variance permitting a nine foot, seven inch variance of the required thirty-five front yard setback and a ten foot variance of the required twenty-five foot corner lot, rear yard setback for the proposed single family home as presented. A hardship exists in the size and shape of the lot and the increased setback requirement for the undeveloped road. Seconded by Councilmember Kask. Motion carried 4-0.

B. Variance – Mike and Karol Zegarac, 3608 Therese Street (R-3, 20,000). Variance request to build a new 24’X28’ detached garage within the required north corner lot, side yard setback. The requested setback variance is for twenty-five feet of the required twenty-five foot north corner lot, side yard setback.

Zoning Coordinator Karpas summarized the request for the Council.

Mike Zegarac discussed the request. He said his wife has been in the home for twenty years and noted that her property was platted in 1949. He feels his request would have no affect on the adjacent right-of-way since he does not believe a road will ever be constructed on the site.

Mayor Pro Tem Skrede noted that there had been a road there in the past, but that it was closed many years ago. He informed the Council that a request to vacate the road was brought before the Public Works Committee from Mr. Zegarac. The Public Works Committee was reluctant to vacate the road since there is a large sewer line running within the right-of-way. They directed Mr. Zegarac to pursue a variance.

Mr. Zegarac said he understood the reasoning of the Public Works Committee, but that he would be willing to grant a utility easement to the city if the road were to be vacated.

Mayor Pro Tem Skrede opened the public hearing.

Councilmember Crockett gave the Planning Commission report informing the Council that the Planning Commission unanimously recommended that the Council deny the request. They felt an undue hardship had not been demonstrated to justify the need for a variance in the configuration presented to the Commission. The Commission did feel, however, that the Council should consider granting a variance for a reduced setback ranging from seven and a half feet to ten feet based on the unique situation present on the applicant’s property.

Frank Jewett, 3605 Parkway said he uses the path on the right-of-way and asked how the proposed placement of the garage would affect the path. Mr. Zegarac said there would be no effect and that the garage would appear to be located on his property.

Mr. Zegarac said the location was selected so it would not interfere with a future planned addition and that he could pull a driveway straight off Therese Street.

Councilmember Kask noted that property already has an attached two-stall garage. He said that even though the road is not developed, the ordinance does require a twenty-five foot setback. He believes there are design alternatives available that would not require a variance. He is not supportive of a zero setback. Councilmember Crockett asked if he would support an alternate setback. Kask said the existing structure is already encroaching, sitting fifteen and a half feet from the property line. It doesn’t matter who the owner is, it’s still an adjacent property line and setbacks apply. He is concerned about setting precedence.

Mr. Zegarac said it would only set precedence if there were other properties with the same unique circumstances. Councilmember Wheaton noted that the neighbor on the other side of the undeveloped road could request the same type of setback.

Councilmember Kask said he could not find a practical difficulty or hardship for the request, especially since the home already has a two-stall garage.

Dick Brown, 19155 Azure Road, said that setbacks were only three feet from the rear and side property lines.

Mayor Pro Tem Skrede asked if the Council is restricted to vote on what is being presented. Councilmember Kask said he doesn’t believe he can vote on any amended plan without one in front of the Council. Councilmember Wheaton agreed, saying he would like to see an amended plan.

Mr. Zegarac said he was given the impression that the Council could approve an amended plan without a new proposal. He said he would have submitted an alternative plan if he had known.

Councilmember Crockett told the Council that the applicant was told he could proceed with his request and that the Council has the authority to amend the plan at their meeting. She noted that the Planning Commission recommendation included their support for an amended setback between seven and a half and ten feet. Mr. Zegarac said he could live with a seven and a half foot setback.

Councilmember Kask said the setback is twenty-five feet and that the existing home is only fifteen feet away from the property line. He believes there should be no further encroachment beyond what currently exists. He understands the reasoning for the request, but said the closed road right-of-way is still a platted street.

Councilmember Wheaton stated he would support a seven and a half foot setback.

Hearing no further public comment, the hearing was closed.

Councilmember Wheaton moved to approve a variance permitting a seventeen and a half foot variance of the required twenty-five foot corner lot, north side yard setback for the proposed detached garage. A hardship exists in uniqueness of the property. Seconded by Councilmember Crockett for discussion.

Councilmember Crockett commented that the existence of an existing garage had been overlooked. She noted the Council have worked with others in the past in situations where there was no garage present. Councilmember Kask said he’s not sure that an undue hardship has been demonstrated.

Mayor Pro Tem Skrede asked if there were any plans to convert the existing garage into living space when the addition is built. Mr. Zegarac said there were no plans to convert the area. He also noted that the existing garage was not adequate due to its size.

Mayor Pro Tem Skrede called the question. On the motion to approve a seventeen and a half foot variance of the required twenty-five foot corner lot, side yard setback Councilmembers Crockett, Skrede and Wheaton voted aye. Councilmember Kask voted nay. Motion carried 3-1.

C. Ordinance Amendment. Second reading of Ordinance No. 13-42, an amendment to Section 1310.10(1)(c) of the Zoning Code by adding language for an increased setback and screening provisions for swimming pools.

Zoning Coordinator Karpas presented the ordinance, saying it had been amended based on the comments from City Councilmembers.

Mayor Pro Tem Skrede opened the public hearing. Hearing no public comment, the hearing was closed.

Mayor Pro Tem Skrede commented that the phrase “in no instance shall the setback be less than fifteen feet” be added to Subdivision 2(c), which discusses setback for related equipment.

Councilmembers agreed to the amendment.

ACTION: Motion by Councilmember Kask to adopt Ordinance No. 13-42, amending Section 1310.10(1)(c) of the Zoning Ordinance by adding language requiring an increased setback and screening provisions for swimming pools, as amended. Councilmember Wheaton seconded the motion. The motion carried 4-0.

D. Ordinance Amendment. First reading of Ordinance No. 13-41, an amendment to Section 1310.10(1)(d) of the Zoning Code by adding language defining a connection between an accessory structure and a principle structure.

Zoning Coordinator Karpas presented the ordinance, saying it would define exactly what would be considered an attachment between an accessory structure and principle structure.

Councilmember Crockett gave the Planning Commission report, informing the Council that the Planning Commission unanimously recommended that the Council approve the proposed ordinance amendment.

Mayor Pro Tem Skrede opened the public hearing. Hearing no public comment, the hearing was closed.

Councilmember Crockett explained to those in attendance that the ordinance sought to make the connection between principle and accessory structures more architecturally compatible.

ACTION: Motion by Councilmember Crockett to adopt Ordinance No. 13-41, amending Section 1310.10(1)(d) of the Zoning Ordinance by adding language defining a connection between an accessory structure and principle structure. Councilmember Kask seconded the motion. The motion carried 4-0.

5. UNFINISHED BUSINESS

A. Discuss Preliminary Concepts on Marina Lease Limits

Mayor Pro Tem Skrede said the intent of tonight’s discussion is to look at the concept of lease limits on city resources. He said there is not an official document before the Council for action, rather the Council is seeking input on the need for such limits and any ideas on how to regulate such limits. He said there will be at least one more opportunity for residents to speak on the issue and he asked that those wishing to speak be mindful so as to not reiterate points that have already been made.

George Sayer, 3705 Westview Drive, asked how the Boat Committee fit into this discussion. Mayor Pro Tem Skrede said that the Boat Committee typically does the heavy lifting on issues related to the city’s resources, but that due the serious implications attached to the idea of term limits, the Council, as the elected representatives most accountable to all those involved felt it was best to address the issue themselves.

Councilmember Crockett said this would be one of the toughest decisions an elected official must make in the city. She said that there have been a couple of proposals submitted to the Council by herself and Councilmember Wheaton that would be discussed tonight.

Tom Breslin, 3675 Parkway asked if there would eventually be a referendum for residents to vote on regarding this issue. Mayor Pro Tem Skrede said that this issue could not legally be included on a ballot as a referendum. Mr. Breslin asked how the Council would be able to decide what’s best for the community as a whole. Skrede said there would be a Townhall meeting to allow all those interested in making their views heard to speak. City Administrator Young said that State law prohibits an issue like this from being a referendum vote, though other options, such as a survey could be conducted to gauge the views of the residents.

Mr. Breslin is concerned that a small, vocal group could somehow change the city’s current policy, even though they are in the minority. Mayor Pro Tem Skrede said the issue of term limits was discussed in 2003, but the Council decided to take no action to change the policy. He said the Council would like the opportunity to revisit the issue and solicit public input. Councilmember Crockett reminded the audience that there was no specific document in front of the Council for their consideration. She said the idea was to use tonight’s meeting to get a discussion started on the issue.

Mayor Pro Tem Skrede said he would like Councilmembers Crockett and Wheaton to present their proposals and then there would be time for the Council to seek comments and additional suggestions.

Councilmember Crockett said the essence of her plan was to phase in term limits as new leases are signed. She would like to develop a sliding scale for those resources that already have leases that exceed that ten year period. She has not run the data on those leases to determine what the timeline would be. She said the rules were set by the city a long time ago, and this discussion is not intended to paint those holding city resources as the bad guy. She believes that the city was being generous when the rules were originally set and there has been reluctance, on the part of past Councils, to change the rules.

Councilmember Crockett said there is a status quo when it comes to city docks. She noted that there are four hundred people currently on the waiting list, noting the next in line on the list has been on the list for twenty-one years. She gave the breakdown of the current dock holders saying eighteen percent have had their docks less than five years, twenty-one percent have had their docks between five and ten years, that thirty-one percent have had their dock between twenty and thirty years and that thirty percent have had their docks in excess of twenty years. She said she has calculated that 5.4 space turnover every year, using data based on the last five years. She said that this works out to about 5.7% of the city’s resource being made available to residents on an annual basis.

Councilmember Crockett noted that the introduction of a fee to remain on the list did drop a large number of people from the list, which gave the Council a more accurate view of who was truly interested in a city resource.

Councilmember Crockett said there is some natural attrition that takes place but noted it was small. She said that eight people dropped off the list, with another resident declining a dock in 2006, that seventeen dropped off the list in 2005 and that five dropped off the list in 2004. She said this averages to about 10.3 moves annually. She said applying that to the current list and length of current resource holders, the expected time on the wait list for a new resident is 25.5 years. She again noted that thirty percent of those on the docks have held their resource for over twenty years.

She said the four hundred families on the list could not enjoy the resource, saying only the ninety-four currently using the resource benefit. She said the topic of discussion is how can this be changed to make it more equitable. She said that there is no option to expand the number of resources so the number of current resources frames the discussion.

Councilmember Wheaton said his proposal looks to address what he believes to be a flawed policy. He said the system is flawed in the following ways. First, it is based on a first come, first serve basis. He said that’s outdated in that when the system was first designed, there was far less demand for the resources. He said a new system must be developed that reasonably benefits all residents.

The second flaw is that the current systems shuts out most residents creating a de facto ownership of a city resource by those currently leasing the sites. He said the final flaw is that the system undervalues the city resource in that the fees charged for usage are far below market rate.

Councilmember Wheaton said the city could address the flaws through a stepped fee structure that would charge a rate one-third the market rate for the first five years a resource is held, then increase the rate to two-thirds market rate for years five through ten and charge full market rate for each year thereafter. He said he had not built in a term limit process and is still not sure that is the way to go to generate turnover.

Councilmember Wheaton said the increased monies generated under his system would go into a fund for park improvements in the city. He noted that the city’s parks are enjoyed by all residents and that by using these fees, there is a potential to lower taxes. He said his plan would not change the way the list currently works, rather it would increase the movement on the list. He said those using the resource would still benefit from a below market rate resource and others from the improvements to the city’s parks.

Councilmember Kask said there’s always the option to do nothing. He said at this time, the Boat Committee has not been asked to look at a specific proposal. He said this is the first time the Council is taking a look at making a substantive change. He said that he has heard that when the land at St. Louis Bay was donated to the city, it was rumored it was conditioned that it provide access to the greatest amount of residents at a cost not to exceed the cost to the city to provide such access. He concedes that the list has grown large and that the wait has increased. From an equity standpoint, it is an opportune time for the Council to look at the issue.

Mayor Pro Tem Skrede noted that excess funds from the Marina Fund could be used elsewhere. City Administrator Young said the Marina Fund is an Enterprise Fund, meaning that it’s self-supporting. He said it’s not uncommon to transfer funds for use elsewhere.

Mayor Pro Tem Skrede summarized the proposals from Councilmembers Crockett and Wheaton. He noted that Mayor Anderson’s thoughts were that if a term limit was to be applied, it would be for fifteen years and that they not be phased in, rather applied as resources turn over. Skrede said the floor would now be open to those who have ideas on how to address the issue or for those who have comments on the proposals presented.

Paul Ahern, 3260 Maplewood Road agrees with Councilmember Wheaton that the status quo may be outdated. He believes that longevity should be rewarded. He feels longevity is a good thing and should be encouraged. He doesn’t see anything in the proposals that encourages longevity. He said the proposals look to phase out those currently on resources. He said if the city were to charge market rate, they should be prepared to provide market rate services. He feels an ordinance limiting terms would work only to drive people from Deephaven.

Jim Friedlander, 4167 Heathcote Road, applauds the Council’s willingness to address the issue. He said there needs to be a solution that shares the finite resources of the city. He does not support term limits per se because they would tend to recalculate the same system. He said there are a number of people on city resources who could afford to pay market rates. He said the wait has gone from seventeen years when he first signed up, to twenty-one years now. He would propose an idea that would have a ten percent turnover rate per year, which is not necessarily a ten year limit since the number of people who leave their resource on their own fluctuates.

Tom Breslin, 3675 Parkway, would like to know for sure that change is needed. He thought the proposals were good, but questions if that is what the residents of Deephaven want. He believes change is good, but questions the driving force behind this renewed effort for change. If only a handful of people want change, he would not be supportive of it. Councilmember Crockett said the Council is charged with the responsibility to manage the resources of the city. She said if she feels one is being mismanaged, then it’s her responsibility to address the issue.

Chris Doman, 3860 Northome Avenue, agrees with Mr. Breslin. He doesn’t understand why this issue has come to the forefront. He doesn’t believe that term limits are the solution. He feels the Council should focus on a better system to monitor usage of the resource. He said, in his opinion, about fifty percent of the boats in St. Louis Bay are not used on a consistent basis. Under a proposed term limit, as discussed, he could lose his space in three years, which he doesn’t think is fair.

Mayor Pro Tem Skrede called for a recess at 8:55. The meeting reconvened at 9:00. Mayor Pro Tem Skrede reiterated that the intent of tonight’s discussion is to solicit ideas on how to address the length of the waiting list. He reminded the audience that there would be a Townhall meeting to discuss this issue in the future if the Council decides to further explore specific proposals..

Frank Jewett, 3605 Parkway, said he has had a dock for a number of years. He said the fairest, most realistic way to handle city resources is to play by the rules. He noted that recent rule changes, like the increase in fees, have not had time to take effect in terms of creating turnover. He said Councilmember Crockett’s figures on turnover do not take into account the amount of turnover that will be taking place in the next few years due to age and the like. He questioned why issues like fee increases and the increase of the number of dock spaces in St. Louis Bay keep coming up when there appeared to be consensus between the residents and the Council that things would stay the same.

John Haugsland, 4240 Northern Road, favors Councilmember Wheaton’s proposal in terms of using funds to bolster the park fund. He said the wait list is long because the city is giving such a good deal cost wise. He said he moved to the city and has remained due to amenities such as the park system.

Mike Kelly, 19045 Lake Avenue, he agrees with Councilmember Kask that one of the options is to do nothing. He said that there are a number of people in town who could not afford to pay market rate for a city resource. He said the Council should adopt a policy that is simple and consistent. He agrees that monitoring use is a good idea.

Tom Garneau, 3850 Northome Avenue, doesn’t support using a fee increase to create turnover on the list. He said that would penalize the poorest people in town and shut them out from a city owned resource. He doesn’t believe the intention was for the city to earn revenue off docks.

Tom McGoldrick, 4230 Water Street, agrees that monitoring usage would be a good way to determine continuance of a lease. He noted that the list was cut by a third with the addition of a small fee. He said that when people move into the city they are told to sign up for all resources, which inflates the actual interest in the resource.

Warren Nelson, 3540 Hamilton Avenue, said he was on the list for nineteen years and finally got a dock this year. He said he used his boat at least thirty times. He said there were times when he knew he wasn’t going to use his space and was willing to let someone else use it. He suggested a timeshare program, which would allow multiple users on a city resource. He agrees a change has to be done, but that it has to be done in a way that is fair to everyone. He’s opposed to charging market rate since the services are not par with those offered by market rate establishments.

Mike Halvorson, 4915 Vine Hill Road, doesn’t support increasing fees or setting term limits. He agrees with giving special consideration to a shared ownership program.

Dave Jackson, 2650 Woodhaven Place, said he waited twenty years for his dock and questioned the need for a revaluation of the system. He said Councilmember Crockett’s comparison between the previous number of years one had to wait for a city resource and what is being experienced now are statistically similar. He said the numbers also don’t take into account the growth experienced in the city population and the consistent number of available resources over that same period of time. He appreciates Councilmember Kask’s discussion on the donation of the land. He thinks a number of people who have an issue about the wait time have been told by real estate agents and the like that they could get a city dock when they moved into town. He doesn’t feel it’s the city’s fault if there has been misrepresentations made by agents.

Paul Gesme, 3860 Honeysuckle Road, said he knew there was a long waiting list when he moved into town in 1998. He said he’s number 191 on the dock list and is looking at a twenty year wait, in addition to the eight years he has already waited. He feels the city needs to figure out a way to speed up turnover and supports an earlier idea that the city imposes a minimum ten percent annual turnover.

George Sayer, 3705 Westview, agrees with Mr. Gesme that the list needs to turnover more rapidly and he also supports a ten percent annual turnover. He said residents have to learn to share the available resources. He believes usage needs to be monitored and some type of timeshare program be put into place.

Councilmember Crockett said the city does allow joint leases.

Greg Obermiller, 3680 Northome Avenue, said he does not support term limits, especially if the resource is being used in good faith. He said he’s currently number 18 on the list and has been waiting for seventeen years. He can’t see how those using the resource can be penalized. He likes the idea of increasing the price over time.

Councilmember Wheaton said fee increases could be periodically reviewed, so if there is not a demand for the resource, the fee can be adjusted downward. His idea is to give something back to the non-users of the resource who receive no benefit under the current system.

Ed Towey, 4635 Maple Hill Drive, said he is on the Boat Committee and sees the issue as a demand for dock spaces. He said there are too many people seeking a small amount of resources, which is why the Boat Committee has been looking at a new slide system. The goal is to make the resource available to the largest portion of the community. He said the Boat Committee has investigated the claim that a condition was attached to the donated land at St. Louis Bay, but has been unable to verify any fee restrictions. He said the current fees are used to cover city costs and the LMCD fees. All the proposals discussed are looking to weigh needs and demands. One option not discussed tonight is the idea of expanding the number of Boat Storage Units (BSU), which wouldn’t solve the problem but could help lessen the effect of the waiting list.

Larry Parkhurst, 4015 Heathcote Road, said he was on the list for seventeen years and got his dock three years ago. He noted Councilmembers Crockett’s analysis indicates that the wait is now up to twenty-one years. He believes the problem is that the city has failed to adapt its resources to the demands and usage of the lake. He said that only twenty-three percent of the city resources are docks. He feels this should be debated by the Council before the imposition of term limits, which is a penalty to those who waited for their resource.

Mayor Pro Tem Skrede thanked the audience for their participation and reminded them that this item would be discussed again in the future if the Council agreed upon a specific proposal. He called for a recess at 9:35. The meeting was reconvened at 9:40.

B. Accept Resignation of Police Sergeant Ronald Liners effective December 24, 2006.

Police Chief Gustafson informed the Council that Sergeant Ron Liners has submitted a letter of resignation effective December 24, 2006. He said that Sergeant Liners has served the city well for twenty-five years and will be missed.

Motion by Councilmember Crockett to accept the letter of resignation submitted by Sergeant Liners. Councilmember Wheaton seconded the motion. The motion carried 4-0.

Mayor Pro Tem Skrede informed the Council that Sergeant Liners has expressed interest in serving the community in the capacity of a Community Service Officer in the future.

6. NEW BUSINESS

A. Approve Amendment to Agreement for Water Service to St. Therese

City Administrator Young informed the Council that the City of Minnetonka has agreed to provide the Church of St. Therese access to their water system. A previous agreement granted access only for fire purposes. He said the Council must approve the agreement since the charges are billed to the City of Deephaven who passes them on to the church.

Mayor Pro Tem Skrede noted that the earlier agreement also charged costs for infrastructure over a period of time, but now it will beis billed to the church up front.

Motion by Councilmember Crockett to approve the amendment of the Agreement for Water Service to the Church of St. Therese. Councilmember Kask seconded the motion. The motion carried 4-0.

B. Discuss Continuation of Group Health Coverage to Spouse

City Administrator Young said a request has been made to the Council to include spouses and children on a formerof a retiring employee’s health plan. Ron Liners has requested that he be permitted to continue the coverage for his wife after he retires. Young said the city policy would need to be changed in order to do so.

Mayor Pro Tem Skrede asked how many people who have retired from the city have continued their health coverage after they left. City Administrator Young said that only one as of this date. He said being able to continue health coverage is a big benefit especially for police officers who retire at a younger age.

Councilmember Kask said he’s not opposed to the idea, but the Council should keep in mind if a spouse or child of a former employee has health issues, it would affect the group coverage as a whole. He said it’s not uncommon to continue a policy for former employees, but typically it’s limited to eighteen months under Cobra. He said the city could adopt a policy to extend health coverage to a former employee until the age of 65, when they become eligible for Medicare.

Mayor Pro Tem Skrede said the costs wouldn’t be coming out of the city’s pocket since the premium would be the responsibility of the former employee. Councilmember Kask reminded him that health issues of the former employee or his or her dependent could affect the cost to the entire group.

Councilmember Kask said any policy should include a requirement that the spouse be a plan participant at the time of separation from the city. If so, they can continue on the plan only until the spouse or former employee reaches age 65.

Mayor Pro Tem Skrede asked that language be drafted and shown to Mr. Liners to verify what the Council is discussing is what he was thinking.

Councilmember Crockett said her only concern is that we are creating an incentive to have spouses drop other coverage and participate on the city’s plan prior to the separation of the employee. City Administrator Young said that was a legitimate concern.

Mayor Pro Tem Skrede asked if a condition can be placed on the coverage based on the number of years of service. Councilmember Kask said he’s not sure that would meet a means test and that any extension must be offered to all employees. City Administrator Young said he could research the issue and have something for the Council at their next meeting.

Councilmember Kask said the purpose of Cobra was to limit exposure and by creating an open ended plan, the city’s exposure is extended.

C. Discuss Agenda Setting Policy

Mayor Pro Tem Skrede said that standards need to be set for placing miscellaneous items on the agenda. He said the intend is not to railroad items off the agenda, but there needs to be a discussion, especially when there may be a majority of Councilmembers who may not support an item not previously discussed or expected on the agenda.

City Administrator Young said there are a number of ways to set an agenda and that the city does not currently have a policy. He said he typically sets the agenda and usually gets some comments from the Mayor before it is finalized. He said a category can be added under new business to discuss any items a Councilmember may want to add to the agenda.

Mayor Pro Tem Skrede suggested that Councilmembers be given an opportunity to review the agenda before it is finalized and placed in the Council packets and on the city website.

Councilmember Wheaton said his only concern in regard to this issue is the incident that spurred this discussion when three Councilmembers decided an item shouldn’t be placed on the agenda without consulting the Councilmember who requested the item be placed on the agenda.

Councilmember Crockett commented that the city is a weak mayor form of government meaning that the Mayor has no more authority or control over the agenda than any other Councilmember.

Councilmember Kask added that any resident could approach the Council and request something be placed on the agenda and that Councilmembers have that same right.

It was decided that Councilmembers would review future agendas prior to them being finalized just as they do currently.

7. DEPARTMENT REPORTS

A. Police Department

Chief Gustafson said most of his report dealt with the hiring of Officer Nordell and the retirement of Sergeant Liners.

Mayor Pro Tem Skrede asked about the Halloween open house. Chief Gustafson said they got between sixty and seventy kids, which is below the usual number.

B. Excelsior Fire District

Mayor Pro Tem Skrede said the Fire Board will meet on November 15^th to discuss the creation of an employee performance review format and to hold a joint meeting with the South Lake Minnetonka Police Department to discuss refinancing the bonds. He said his intention is to vote that the money saved on the construction of the East Side station be used to relieve debt.

C. Public Works

City Administrator Young gave a report of the October and November activity report. Mayor Pro Tem Skrede informed the Council that they approved, under the Consent Agenda, monies that will help solve two of the city’s stormwater issues.

D. Administration

City Administrator Young gave an overview of the memo he submitted to the Council. Mayor Pro Tem Skrede asked about the tax capacity. Young said the current tax rate for the city is 16.8% which is below State average and the thirty-third lowest in the State.

Mayor Pro Tem Skrede asked if the Council would like to meet with Kyle Hunt and Partners regarding their T.I.F. proposal at a worksession on November 20^th. Councilmembers agreed to a worksession.

8. ADJOURNMENT

Motion to adjourn by Councilmember Wheaton, seconded by Councilmember Crockett. Motion carried 4-0. The meeting adjourned at 10:35 p.m.

Respectfully submitted,

Gus Karpas

Zoning Coordinator