DEEPHAVEN CITY COUNCIL

MONDAY, DECEMBER 4, 2006

7:00 P.M.

1. CALL MEETING TO ORDER: Mayor Tom Anderson called the meeting to order at 7:00 p.m.

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

ABSENT: Councilmember Kim Crockett

STAFF: Police Chief Virgil Gustafson, Zoning Coordinator Gus Karpas and City Administrator

Dana Young

2. CONSENT AGENDA

Motion by Councilmember Skrede to approve the consent agenda, consisting of the minutes of November 20, 2006 and the December Verifieds. Seconded by Councilmember Kask. Motion carried 4-0.

3. MATTERS FROM THE FLOOR

Tom Pokonosky, 20100 Minnetonka Blvd, was present to recommend the inclusion of a survey in the upcoming January City Newsletter requesting public information on cell phone use to determine whether there would be any interest in attracting an additional cell phone carrier to Deephaven.

Mayor Anderson stated that staff has contacted other cell phone companies about the availability of space on the new T-Mobile tower and recommended waiting a couple of weeks to see if there was any interest.

Councilmember Skrede stated that he would also prefer if the survey were included in the newsletter as an insert rather than including return postage on the survey. He stated that the survey could be returned along with the utility bills that are included with the newsletter rather than spending an additional $300 for postage.

4. PUBLIC HEARINGS

Truth in Taxation

City Administrator Dana Young provided an overview of the 2007 City Budget. He said the two main components of the budget that are directly attached to the city’s tax levy are the Capital Improvements Fund and the General Fund.

Mr. Young discussed the General Fund stating there will be a 7% increase in the property tax levy. He said there is a noticeable decrease in license and permitting fees, along with a decrease in State Aid received by the city. Some of the positive gains within the General Fund are due to the Contract for Services for the cities of Greenwood and Woodland and the city’s appointment as the Excelsior Fire District’s Fiscal Agent.

He said a large portion of the expenditures in the General Fund is due to cost of living and health cost increases for employees and the increased cost of fuel.

Mr. Young discussed the Capital Improvement Fund. He said the fund is critical in that it provides the funding for all the city’s fixed assets. He discussed some recent Capital Improvement expenses including the recent seal coating project and the purchase of new public works vehicles.

He discussed the components used in determining the tax levy. He said the market value of the city is going up, but since it is not due to new growth within the city, it is spread across the existing properties. He displayed a pie chart showing how the tax dollars are allocated amongst the different taxing agencies.

James Haverstock, 3360 Northome Road, said that proposed 7% increase isn’t spread equally since his taxes went up 14%. At that rate his taxes will double in just over five years. Mayor Anderson explained the process in which the City Assessor must get his assessed value within ninety-five percent of the actual value and that for a number of years the State of Minnesota had a cap on the amount of increase a property could be assessed. The State found that the cap was creating a situation where their maximum percentage was lagging behind the actual value increase, so they increased the cap recently, which is why some property owners are realizing a much larger increase than they have in the past.

Mayor Anderson continued saying the City of Deephaven is at a disadvantage when compared to other cities because the tax burden is applied to a stable population and there’s no opportunity for growth since the city is basically built out.

Mr. Haverstock said it would be nice if there was a point where taxes were frozen for seniors, instead of creating a situation where they are basically taxed out of their home. Dick Brown, 19155 Azure Road, said the State tried that in 1975 and it lasted only one year.

Jack Hastreiter, 20275 Cottagewood Road, asked why there is a difference in the increase between the structure and the property. Mr. Young said that is tough to explain since it is done by a formula created by the State. Councilmember Kask noted that the property in question was vacant and said there appears to be a higher rate attached to vacant property. He noted that he found it funny that tax statements we sent out a week after the General Election, which doesn’t allow citizens to question the Representatives up for election.

Thomas Pokonosky, 20100 Minnetonka Boulevard, stated there is very little that can be done at this point and that action needs to be taken in April if citizens want to influence tax policy.

Mayor Anderson noted that the City of Deephaven receives only 15.9% of the tax revenue collected, the rest is distributed to other entities. He does not like the fact that there are some taxing agencies that are not elected and not held accountable to the citizens.

Councilmember Skrede said the city tries to be as frugal as possible when it comes to spending tax revenues, perhaps unlike those taxing agencies from outside of the city.

VARIANCE – Mike and Deb Ayers, 19725 Lakeview Avenue, (R-3, 20,000) variance request to demolish and rebuild a portion of an existing non-conforming structure located within the required lake yard setback. The requested variance is for forty-three feet, three inches of the required one hundred foot lake yard setback.

Mike Ayres presented the request. He said he is seeking a variance of the required lake yard setback and maximum permitted impervious surface to remove an existing screen porch and reconstruct a new four season porch in its place. He noted that the request would not change the existing setback and hardcover conditions.

Zoning Coordinator Karpas presented the Planning Commission Report. He said the Commission recommended by a 4-2 vote that the Council approve the request. He said a majority of the Commission was generally supportive of the request even with the slight modification in the footprint, since it did not increase the degree of encroachment. Those not supportive of the request did not feel there was a justifiable hardship demonstrated to warrant the expansion of the footprint. There was also concern about the overall impervious surface percentage.

Mayor Anderson asked about those opposed to the request. Karpas said one Commissioner questioned if the slight change in the footprint was covered under the protections of the State Statutes and the other felt steps could be taken to reduce the overall impervious surface.

Councilmember Skrede confirmed that the applicant did not intend to remove a tree near the alteration. Mr. Ayres said he did not, though he feared it would die due to shock. Mr. Skrede said he was in favor of the request. He asked staff if impervious surface was covered under the protections of the State Statute. Karpas said he was unsure, but thought it might be since the footprint was permitted to be substantially the same.

Councilmember Kask noted the request would basically be identical and there would be no change in the amount of impervious surface.

Councilmember Wheaton asked if the Statute permitted the replacement of footings. Karpas said the Statute addresses the footprint of a structure, which would include the replacement of footings.

Mayor Anderson opened the public hearing. Hearing no comment, the hearing was closed.

Councilmember Wheaton moved to approve the variance request to encroach forty-three feet, three inches into the required one hundred foot lake yard setback for the proposed partial demolition and reconstruction of the non-conforming structure, as presented, at 19725 Lakeview Avenue. A hardship exists in the placement of the existing structure and the need for maintenance and repair of the structure. The proposal would not increase the existing encroachments and would have little or no impact on the surrounding neighborhood. Seconded by Councilmember Kask. Motion carried 4-0.

VARIANCE – Bill Melin, 3745 Northome Road, (R-1, 60,000) variance request to demolish and rebuild an existing non-conforming structure located within the required front and lake yard setbacks. The requested setback variances are for twenty-two feet of the required one hundred foot lake yard setback and nine feet, two inches of the required fifty foot front yard setback. The requested height variance is to exceed the maximum permitted height by two feet.

Rolf Lokensgard, the applicant’s architect, presented the request. He said the applicant is requesting a variance of the required front and lake yard setbacks to remove an existing nonconforming structure and to construct a new single family home in essentially the same footprint. In addition, the applicant is requesting a two foot variance of the maximum permitted height.

Karpas explained that the R-1 District permits a height of forty feet, but since the property is located in the Shoreland District, the permitted structure height is reduced to thirty feet. He noted that this is a glitch in the ordinance since all R-1 zoned properties are located within the Shoreland District and are required to adhere to the thirty foot maximum height requirement.

Zoning Coordinator Karpas presented the Planning Commission report. He said the Commission was supportive of the setback requests since there was an overall reduction in the amount of encroachment, recommending by a 5-1 vote that the City Council approve the request. In addition, the Commission recommended by a 4-2 vote that the applicant be granted a variance of the maximum permitted height, citing that the ordinance’s inconsistencies were confusing in that the R-1 Zoning District permits a maximum height of forty feet, though the entire R-1 District is located in the Shoreland District which restricts height to a maximum of thirty feet.

Councilmember Skrede questioned whether slope issues were exempted by the State Statutes. Karpas said the City Engineer reviewed the plans and that there are no steep slope on the property.

Councilmember Kask discussed the current height ordinance saying that height used to be measured from the lowest grade to the peak of a structure. That changed a number of years back to an aggregate measuring system in order to address changing housing styles. He said in this case, there is actually forty-two feet of exposed structure on the lake side of the property.

Councilmember Wheaton noted that the Commissioners opposed to the height variance cited that the applicant did not prove an undue hardship prohibiting compliance with the ordinance. Mr. Lokensgard said the roof could be flattened to comply, since the only area that doesn’t comply with the requirement is an accent feature, though he believes that would take away from the visual appeal of the structure’s elevation.

Mayor Anderson said he believes one of the components in limiting the height in the Shoreland District was to protect adjacent property owner’s views. He noted in this case, there would be no adverse impacts on neighboring views.

Councilmember Wheaton asked if there was a practical difficulty in redesigning the structure. Mr. Lokensgard said the plan could be adjusted and brought into compliance. Councilmember Kask said he doesn’t want to design the house for the applicant, but pointed out that the ceiling heights in the structure ranged between ten and twelve feet, and that a slight reduction in those heights would permit the height to be brought down while keeping the same architectural look. He does not believe the applicant can demonstrate an undue hardship.

Mayor Anderson opened the public hearing. Hearing no comment, the hearing was closed.

Councilmember Skrede said he can empathize with Councilmember Kask’s concerns about height and agrees that the way the city calculates height could lead to problems. He noted a house under construction near the Children’s Park. He said he would like to hear from the homeowner why the height is necessary.

Bill Melin stated that the plan was designed to comply with the ordinance and it was only later when they discovered there was an issue with the height. He said the proposed cupola on the roof helps break up the roofline and helps emphasize the center of the home. He said he would take the steps necessary to comply with the height requirements.

Councilmember Skrede believes the design is tasteful and feels in the spirit of fairness, since the applicant truly believed he was in compliance with the ordinance when he designed the home, he’s inclined to support the variance request.

Councilmember Wheaton asked if the turret could be left as the home is redesigned; he likes the aesthetics of it. Mr. Lokensgard said there has been no discussion as of yet on a redesign.

Mr. Melin said the ceiling height is important due to his hearing issues. Higher ceilings produce better acoustics. He would take the top off the house before he would lower the ceiling height.

Councilmember Kask moved to approve the variance request to encroach twenty-two feet into the required one hundred foot lake yard setback and to encroach nine feet, two inches into the required fifty foot front yard setback for the proposed demolition and reconstruction of the non-conforming structure, as presented, at 3745 Northome Road. A hardship exists in the configuration of the lot which in relation to the required setbacks, which creates a narrow building pad. It was noted that the applicant is reducing the overall encroachments into the required front and lake yard setbacks and that the hardcover has been reduced to bring the property into compliance with the city’s requirements. Seconded by Councilmember Skrede. Motion carried 4-0.

Councilmember Skrede moved to approve variance request to exceed the maximum permitted structure height by two feet in the Shoreland District, permitting a structure height of thirty-two feet, as presented, at 3745 Northome Road. . A practical difficulty exists in the conflicting provision of the city ordinances which is confusing in terms of height in the R-1 District and Shoreland District. The motion notes that the proposed area to be in variance is limited and does not run the full length of the proposed home. Seconded by Mayor Anderson. Motion failed on a 2-2 vote. Voting aye on a motion to approve were Councilmembers Anderson and Skrede. Voting nay were Councilmembers Kask and Wheaton.

PRELIMINARY PLAT – Mark Kawell, Manor Road, (R-2, 40,000) A preliminary plat request to subdivide an existing property located in the cities of Deephaven and Shorewood into four lots. The plat would create three vacant lots in the City of Deephaven. The property included 20025 Manor Road, Shorewood and the property directly south and east of 20025 Manor Road.

Mayor Anderson opened the public hearing.

Zoning Coordinator Karpas presented the Planning Commissioner report. He said some of the Commissioners expressed concern about the irregular dimensions of the lots and the ability to construct a home on lot three. They had a lengthy discussion on the issue of access, settling and an amended access plan where three lots would be accessed by the new north access and only one lot by the driveway access located on the south of the property. They felt that the slopes needed to be further reviewed by the City Engineer to verify compliance with the ordinance.

The Commission recommended the Council approve the request with the following conditions; 1) that Lots 1, 2 and 4 be accessed by a private drive, no less than twenty foot width in paved area set within a thirty foot easement, in a configuration as shown on the submitted preliminary plat; 2) that the existing drive shown on the south of the property be widened to a paved width of no less than fourteen feet and only provide access for Lot 3; 3) that the applicant submit an amended plan showing these changes to the City Engineer, City Fire Inspector and the City Police Chief for their review prior to presentation to the City Council; 4) that the City Engineer address the slope issues on a lot by lot basis and that his analysis be submitted to the City Council, in writing; 5) that the applicant show dedicated utility easements on the plat including those easements necessary for the proposed sewer and water lines; and 6) the applicant acknowledges and agrees to the need for a Developer’s Agreement that would be drafted and signed by the Developer and the cities of Deephaven and Shorewood addressing the issues of access, utilities, park dedication and all other issues that may be deemed necessary throughout the review of the preliminary and final plats.

Karpas submitted into the official record letters from the City Engineer, City Fire Inspector and the City Police Chief. In addition, he noted a letter opposed to the preliminary plat from Vytas Rimas, 19715 Hillside Street.

Mark Kawell said he has received conceptual approval for the proposed plat from the City of Shorewood’s Planning Commission and City Council. He said his approach in developing the property was to minimize the impact on the natural environment. He said the site is sensitive in nature due to the vast amount of wetlands and the treed slopes. He said the issue of access is touchy now that the Minnehaha Creek Watershed District has review authority over encroachments into the wetland buffer. He noted that the undeveloped platted cul-de-sac on the property could not be built today due to that. He said his intent was to use the existing drive to service two homes on the south side of the property, and that a driveway to the north would serve the existing Bowman home and two buildable lots.

Mr. Kawell said the homes would be fire protected with a hydrant placed on the property and individual sprinkler systems. He said that Shorewood has agreed to provide sewer and water through private lines to be maintained by the homeowners. Mayor Anderson remarked on water pressure concerns along that water line, noting that the Amesbury neighborhood is currently served by that line and a past house fire became an issue when the fire department didn’t have enough pressure from the hydrant to put it out. Mr. Kawell said it is his understanding that the system has been upgraded and that there will be adequate water pressure.

Mr. Kawell said the proposed lots would exceed the minimum required lot area, some with buildable areas above the minimum required lot area. He noted there is only one area, located on Lot 2, where there are steep slopes prone to severe erosion, which cannot be developed.

Zoning Coordinator Karpas reviewed his staff report. He said the request is for a four lot subdivision that would create three vacant lots in the City of Deephaven. Access to the lots would be split between two separate driveways, each accessing two lots. Sewer and water service would be provided from the City of Shorewood.

Paul Gronberg, 19755 Hillside Street, said he has lived in the area many years and has seen numerous proposed layouts for this property, most with more lots than what Mr. Kawell is proposing. He feels Mr. Kawell has done a good job designing a proposal that maximizes the use of the property while taking into account the natural environment.

Mayor Anderson noted that Excelsior Fire District Chief; Scott Gerber was present to address the issue of emergency access.

Chief Gerber introduced himself and Fire Inspector Lee Berglund who was key person in the review of this proposal. He said during their review there was a lot of discussion on how best to serve the public while enhancing emergency response to the property. Though their review focused on fire suppression issues, they also took into account the total scope of emergency services that would be provided to the property during any given event, including police and ambulance response. He acknowledged the proposed fire hydrant but noted that the applicant proposes to place it on the north side of the property and with the proposed access road, it would not be accessible to serve, if needed, the southern lots. Due to this and the need to ensure enhanced public safety that takes into account all facets of public safety, the Fire District has conditioned their approval that a continuous looped road be constructed to provide access to the entire parcel.

Councilmember Kask discussed the proposed driveway configuration and noted that the applicant has not proposed a looped road. Mr. Kawell said the existing driveway to the south is proposed to serve the same amount of homes as it does now. He noted that the driveway follows the crest of hill and cuts between two wetlands. He would like to remove that portion of the road and restore the natural environment.

Mr. Kawell said his proposed access layout complies with the city’s requirements. He’s concerned that there will be setback issues on lots three and four with a continuous road, in addition, the relocation of the building pad on Lot 4 would require increased depth of ten feet on the sewer line and push the building pad on Lot 3 further down the peninsula. He said he’s based the plan before the Council on numerous meetings with the staff of both cities.

Fire Inspector Lee Berglund addressed the Mayor’s water pressure concerns by saying it is his understanding that the system was upgraded during a recent road project and that it will be activated soon. As for the request, he said he met with all the interested parties while reviewing the Preliminary Plat. He said he did not see a hardship in the applicant expanding the existing roadbed to create a continuous loop through the property. He believes a looped road is the best way to address emergency access to the lots.

Inspector Berglund said that even though exceptions are provided for homes that are sprinkled, all roads accessing more that two homes are required to have a minimum width of twenty feet, meaning the proposed access on the north would have to be expanded.

Councilmember Skrede said the city needs to look at the methodology employed to fight fires. In the case of Deephaven, it includes the use of pumper trucks, that when empty, need to leave a site to reload. He doesn’t want to create a situation where that truck is trapped or forced to back along a long, narrow driveway. The mechanics of how fires are fought by the Fire District prompts him to support the looped driveway requirement.

Inspector Berglund said that common sense would dictate that access issues be addressed from the onset. He noted sprinkling does not protect 100%. Skrede asked what the code says about gallons per minute on a sprinkler system. Berglund said it does not matter since it would be a municipal water source.

Mayor Anderson suggested that a cul-de-sac be placed in between lots three and four. Inspector Berglund said there would still be an issue with accessing the fire hydrant and the length of the road would be tenacious for a tanker to back down. Mayor Anderson suggested the placement of two hydrants. He said the way he sees it, there are two issues, access, which is solved with a cul-de-sac and access to the fire hydrant, which is solved with the placement of an additional hydrant.

The Council discussed the concept of adding a cul-de-sac to the property and where it could be located. Mr. Kawell said he could add a T-turn to Lot 3, but that would take away the need to sprinkle the homes. Councilmember Skrede said there doesn’t appear to be enough room to put in a turnaround. Inspector Berglund added that the placement of a turnaround requires a twenty foot wide paved road to be code compliant.

Councilmember Skrede said he’s sensitive to the concern of the applicant about the location of his building pads with any setback requirement from a looped road, but believes a compromise could be had in the interest of public safety. He reiterated that the standard operational procedures on how emergencies are handled in this area require that there be adequate access that permits the free flow of vehicles on and off the site during any emergency.

Mr. Kawell said the addition of a T-turn and the required street width is typically reserved for service to multiple lots, in this case it would only be one lot. Skrede asked what part aesthetics played in the applicant’s apparent reluctance to install a continuous loop. Mr. Kawell said very little and that his concern has always been about meeting a required setback from the road. Mayor Anderson suggested the road be developed as an easement with no setback requirement. Mr. Kawell said that was possible. Anderson asked the Fire Inspector if that was practical. Inspector Berglund said it was provided it was paved to a minimum of fifteen feet as outlined in his review. Mr. Kawell said there might still be an issue with the Watershed District if the expansion would extend into the wetland buffer.

Zoning Coordinator Karpas said that would not appear to be an issue with the roadway located within the Deephaven city limits.

Councilmember Kask stated that the proposed development of four lots require that adequate access be provided to the property. As is stands, the driveway to the south is too narrow to permit two cars to pass and needs to be widened. He’s concerned about the slope and turn radiuses on the north access. He does not believe the north access provides a practical access point for emergency vehicles. He said it is the developer’s responsibility to address the public safety concerns raised by the city and help develop solutions. Roads need to be designed that can realistically handle the traffic generated by four homesites.

Kask also feels that the road frontage needs to be identified for each lot and that setbacks and where they’re taken from needs to be clearly defined.

Councilmember Wheaton asked how many vehicles typically respond to a fire call. Inspector Berglund stated between fifteen and twenty.

Mayor Anderson said the road could be widened with no issues involving the City of Deephaven and that the applicant would need to work with Shorewood on their portion. Mr. Kawell said it would require a variance from the Watershed District. Councilmember Skrede said there is a probability that the Watershed District would view the request as reasonable due to the safety issues involved.

Mr. Kawell said he’s not clear on what direction the City is giving him. Are we asking that he put in a looped road with a minimum width and if so, would fourteen feet be sufficient? Zoning Coordinator Karpas said the Fire Inspector has conditioned his approval that it be fifteen feet in width. Chief Gerber said the fifteen foot requirement is taking into account the department’s larger vehicles and the need to get additional vehicles on the site. Gerber said it’s important to plan for the worst and design to meet it.

Mayor Anderson summarized the discussion saying that the city is looking for a looped access

road, which would be an easement, no less than fifteen foot in paved width. Mr. Kawell would like some form of approval prior to bringing his plan back before the City of Shorewood and the Watershed District.

Councilmember Kask would rather see a large cul-de-sac centered in the property, but is willing to accept a looped road, though he’s concerned about the north access. He doesn’t believe it’s optimal due to the steep grade and retaining walls. Mr. Kawell noted there was five feet between the edge of the pavement and the retaining walls. Kawell said the angles of the curves on the north access were done to provide the best site lines to Manor Road for those exiting the site.

Mayor Anderson sought the Council’s opinion on the requirement of a looped road. Kask would be supportive providing there was a minimum paved width of fifteen feet. Skrede was in favor of a looped road requirement. Wheaton didn’t feel the city had any other option in the interest of public safety.

Councilmember Wheaton asked about maintenance of the road. Zoning Coordinator Karpas said that the developer would have to draft a document, to be reviewed by the City Attorney and filed with the Final Plat at Hennepin County.

Councilmember Skrede asked about enforcement if there were encroachments. Chief Gerber clarified that the road would be marked as a Fire Lane, which prohibits storage or parking within the easement. Inspector Berglund said the north access would still need to maintain the twenty foot paved width since it is serving more than two homes.

Vytas Rimas, 19715 Hillside Street, is opposed to the requested plat. He feels that Lot 3 is not buildable due to the wetland and the slopes. He doesn’t believe it is a good idea to permit construction on the peninsula. In addition, he feels that Lot 3 is a flag lot and should be discouraged.

Hearing no further public comment, the public hearing was closed.

Zoning Coordinator Karpas said he has drafted a number of resolutions in anticipation of the Council discussion and noted that one of the drafts included all the conditions of the Planning Commission and the condition of the Fire Inspector for a looped road with a width of fifteen feet, placed in a twenty-five foot easement.

Councilmember Kask moved to adopt Resolution 33-06 approving Bowman Preliminary Plat, creating a four lot subdivision on Manor Road, subject to conditions set forth in Resolution 33-06, with an amendment to condition number one that it include a requirement that the paved area be centered within the twenty-five foot easement and the phrase “fire lane” be added in front of the word easement. Seconded by Councilmember Skrede. Motion carried 4-0.

Council discussed setback from the easement so that there would be adequate off-street parking that would not encroach into the fire lane easement. Mr. Kawell agreed to provide a minimum structure setback of twenty-five feet from the edge of the easement.

ORDINANCE AMENDMENT – Recommendation to the City Council on Ordinance No. 12-20, an amendment to Section 1200.10(4)(b) of the subdivision ordinance amending language pertaining to the required park dedication for lands subdivided within the city.

City Administrator Young gave an overview of the proposed ordinance. He said the amendment would update the city’s park dedication requirement so it is in compliance with recent changes in the state statutes.

Mayor Anderson opened the public hearing. Hearing no public comment, the hearing was closed.

Young presented the Planning Commission report stating that they voted unanimously that the City Council adopt Resolution 12-20.

Councilmember Skrede moved to adopt Resolution 12-20, amending Section 1200.10(4)(b) of the Subdivision Ordinance, amending language pertaining to the required park dedication for lands subdivided within the city and to waive the second reading. There is a need to bring the city codes into compliance with the State Statutes. Seconded by Councilmember Wheaton. Motion carried 4-0.

5. UNFINISHED BUSINESS

A. Approve St. Louis Bay Dock Plan

The Council reviewed the recommendations submitted by the Boat Committee on the St. Louis Bay Dock Plan, which included 22 new dock slips, a navigation lane, retaining the 13 shore space and wider slide widths.

Mayor Anderson stated that at the October 16^th public meeting on the St. Louis Bay dock plan, the Boat Committee was asked to come back with recommendations that incorporated the comments made at the meeting. He stated that he was surprised to see the Committee come back with a recommendation that included retaining the shore space.

Councilmember Kask stated that the Boat Committee recommended the dock plan with the navigation lane, properly aligned with the boat ramp, and the maximum number of Boat Storage Units currently permitted by the LMCD with any increase above the 165 licensed BSU’s offset by a reduction in slides. He stated that the recommendation to retain the shore space was made by the Committee after incorporating the input of those in attendance at the October 16^th meeting.

Mayor Anderson stated that the intent of those present on October 16^th was that they didn’t want additional density at St. Louis Bay. He stated that he would support the navigation lane dock plan with the condition that the shore space would be removed. He stated that he would like to see the 200’ currently used for shore space used for some other public purpose for those residents who do not have a boat. He added that he would also be in favor of relocating the expanded dock south of the beach as a replacement for the shore space, which would provide the opportunity to expand the beach to the north.

Councilmember Kask added that the fourth option to consider, as was pointed out at the October 16^th meeting, was to do nothing.

Councilmember Wheaton stated that he had talked with LMCD Representative David Gross about the St. Louis Bay dock plan and that Mr. Gross seemed favorable about the possibility of obtaining a variance from the LMCD to extend the docks at an angle further into the lake. He stated that this plan could still include the elimination of shore space and wider slides. He added that he does not favor the look of a navigation lane and would not support it.

Councilmember Kask stated that the Boat Committee did not consider any dock plan that would require a variance from the LMCD.

Councilmember Skrede stated that there was some merit to letting the increase in dock rates and the implementation of the wider slides work themselves through before deciding to move forward with either removing the shore space or approving a significant addition to the dock slips. He stated that shore space could be removed at any time, depending on the merits of the proposal of what would replace the shore space.

Motion by Councilmember Skrede to approve the concept of constructing 10 additional slips to the existing dock, reducing an equivalent number of slides, and leaving the shore spaces at their current location. This plan would then be sent back to the Boat Committee for final review and preparation for presentation to the Community. Seconded by Councilmember Kask. Motion carried 4-0.

B. Adopt Policy on Continuation of Group Health Coverage for Spouse

The Council reviewed a request from Sergeant Ron Liners, who is planning to retire on December 24, 2006, for the City to continue to provide, at his expense, group health coverage to his spouse in the event of his death. The Council reviewed a report from staff on whether the City’s health plan permits coverage to a dependent in event of the death of a former employee and the legal ramifications of offering the policy to only those employees who have worked a minimum of 20 years with the City.

Administrator Young stated that the City’s group health plan with Medica does allow for the City to provide such a policy and the City Attorney has stated that there would be no legal ramifications if the City would like to offer the policy to only those employees who have worked a minimum of 20 years with the City.

Motion by Councilmember Skrede to adopt Ordinance No. 03-11, An Ordinance Amending Section 330.08 of the City Personnel Policy to permit the continuation of dependent coverage, at the expense of the insured, in the event of the death of a former employee. Seconded by Councilmember Wheaton. Motion carried 4-0.

6. NEW BUSINESS

A. Review Appeals from the 90-Day Rule

Darcy Westlind, 20485 Linwood Road, was present to appeal staff’s decision to not renew his 2007 permit due to the fact that he did not meet the 90-day minimum requirement for keeping his boat at Slide #110 in Carson’s Bay. Mr. Westlind explained that the reason he was not able to meet the 90-day requirement is due to the fact that his boat was missing for 22 days, a fact that can be confirmed with the Police Department. He stated that his boat was eventually found swamped and he placed it back on his slide. After the boat was placed on the slide, he stated that he his roll-n-go winch broke and he had to remove his boat from the slide and place it on the Minnetonka Yacht Club slide.

Motion by Councilmember Skrede to reinstate Darcy Westlind’s 2007 permit, subject to payment of the penalty fee. Councilmember Wheaton seconded. Motion carried 4-0.

James Engstrom, 20665 Bayview Court, was present to appeal staff’s decision to not renew his 2007 permit due to the fact that he did not meet the 90-day minimum requirement for keeping his boat at Dock #136 in Carson’s Bay. Mr. Engstrom explained that he took his boat out of the water to repair a leak. Once the leak was repaired, and the boat placed back in the water, he stated that he noted there was a problem with his engine leaking oil into the lake. He stated that he again took his boat out of the water and decided not to put the boat back into the water until the engine was repaired. Due to his hectic travel schedule, this repair was not made in a timely manner. He stated that he kept in touch with City Staff Deborah Hicks on the progress of his repairs but simply forgot to return his boat to the slip when his boat was eventually repaired.

Motion by Councilmember John Wheaton to reinstated James Engstrom’s 2007 permit, subject to payment of the penalty fee. Mayor Anderson seconded. Motion carried 4-0.

B. Promote Police Sergeant

Dick Brown, 19155 Azure Road stated that the Civil Service Commission had met on Saturday, December 2^nd to interview Cory Johnson, Chris Whiteside and Matt Case for the position of Police Sergeant and had recommended the appointment of Cory Johnson to the position.

Councilmember Skrede noted that there was some confusion regarding the position title and whether we were promoting one of our officers to the position of Sergeant or Lieutenant. He stated that it was his intention to appoint someone to the position of Police Sergeant, which is equal to the rank of Ron Liners, who is retiring with the rank of Sergeant. He asked Dick Brown, 19155 Azure Road, a member of the Civil Service Commission, if there was any problem with appointing someone to the position of Sergeant rather than Lieutenant. Mr. Brown stated that there would not be a problem with the appointment to Sargent since the pay and job responsibilities for the two positions remain the same.

Motion by Councilmember Skrede to appoint Cory Johnson to the position of Police Sergeant at a salary of $5,104.34 per month, effective immediately. Seconded by Councilmember Kask. Motion carried 4-0.

C. Other

Mayor Anderson inquired about the status of trimming the tree at Village Hall. Administrator Young stated that staff was intending to trim the tree this week but may need to rent a boom truck with an operator to get to the top of the tree. Mayor Anderson offered to personally pay for the cost of renting the boom truck since trimming the tree was his idea. The Council thanked Mayor Anderson for his offer.

7. DEPARTMENT REPORTS

A. Police Department

Police Chief Gustafson provided a brief update on recent department activities.

B. Excelsior Fire District

Councilmember Skrede stated that the review of the EFD allocation formula would begin early next year after each new City Council made their selection of the representatives that they choose to represent their city in the discussion of this issue.

C. Public Works

Administrator Young provided a brief update on Public Work Department activities in November and upcoming projects in December.

D. Administration

Administrator Young provided an update on the following items:

· Deer Management

· Required reports and publications

· Tree lighting ceremony

· Goose Control Program

· January Newsletter

· T-Mobile Tower

8. ADJOURNMENT

The meeting adjourned at 11:35 p.m.

Respectfully submitted,

Dana H. Young

City Administrator