DEEPHAVEN CITY COUNCIL

MONDAY, DECEMBER 18, 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 Keith Kask, Paul Skrede, John Wheaton and Kim Crockett

 

STAFF:            Police Chief Virgil Gustafson and City Administrator Dana Young

 

2.                  CONSENT AGENDA

Motion by Councilmember Skrede to approve the consent agenda, consisting of the following items:

 

A.     Minutes of December 4, 2006

B.     Approval of the 2007 tort liability limits

C.     Adoption of the 2007 Investment Policy

D.     Approval of the 2007 Set-Up License for Minnetonka Yacht Club

E.      Hiring of 2006-2007 Warming House Attendants

F.      Approval of Payment No. 1 to Infratech for the 2006 Sewer Main Project in the amount of $48,058.70.

 

Seconded by Councilmember Wheaton.  Motion carried 5-0.

 

3.                  MATTERS FROM THE FLOOR

Mayor Anderson presented Certificates of Appreciation to George Haworth, Patrick Noll and Matt Sorenson for their time and effort in completing several Eagle Scout projects this year on behalf of the City of Deephaven.

 

4.                  PUBLIC HEARING

 

A.                 Adopt Resolution No. 34-06, Adopting the Final 2007 Levy

Mayor Anderson called the public hearing on the 2006 Tax Levy, Collectible in 2007 in the amount of $1,784,344 to order at 7:06 p.m.  Hearing no public comments, the hearing was declared closed.

 

Motion by Councilmember Crockett to adopt Resolution No. 34-06, A Resolution Approving the Final 2006 Levy, Collectible in 2007 in the amount of $1,784,344.  Seconded by Councilmember Skrede.

Mayor Anderson opposed.  Motion carried 4-1.

 

5.                  UNFINISHED BUSINESS

 

A.                 Adopt Resolution No. 35-06, Adopting the 2007 Budget

Motion by Councilmember Skrede to adopt Resolution No. 35-06, A Resolution Adopting the 2007 Budget in the amount of $3,398,839.  Seconded by Councilmember Wheaton.  Mayor Anderson opposed.  Motion carried 4-1.

 

 

B.                 Adopt Resolution No. 36-06, Approving 2006 Transfers

Motion by Councilmember Skrede to adopt Resolution No. 36-06, A Resolution Approving 2006 Transfers.  Seconded by Councilmember Kask.  Motion carried 5-0.

 

C.                 Adopt Resolution No. 37-06, Resolution of Appreciation to Ron Liners

Councilmember Skrede and Police Chief Gustafson presented a plaque to Lieutenant Ron Liners for completing nearly 25 years of service with the Deephaven Police Department.

 

Motion by Councilmember Wheaton to adopt Resolution No. 37-06, A Resolution of Appreciation to Ron Liners who is retiring after 25 years of dedicated service with the Deephaven Police Department.  Seconded by Councilmember Kask.  Motion carried 5-0.

 

D.                Adopt Resolution No. 38-06, Resolution of Appreciation to Mayor Anderson

Councilmember Skrede presented a plaque to Mayor Tom Anderson thanking him for six years of outstanding service to the City of Deephaven.

 

Motion by Councilmember Skrede to adopt Resolution 38-06, A Resolution of Appreciation to Mayor Tom Anderson who is stepping down as the Mayor of Deephaven after serving two years on the City Council and four years as Mayor.  Seconded by Councilmember Wheaton.  Motion carried 5-0.

 

E.                 Adopt Resolution No. 33-06, Approving EFD Refinancing Bond

Councilmember Skrede stated that Paul Donna, with Northland Securities, is present this evening to answer any questions regarding the refinancing of the Excelsior Fire District Facility Bonds.  Councilmember Skrede stated that the Excelsior Fire District Board is proposing to refinance the outstanding Fire District debt by issuing a Public Safety Fire Facility Lease Revenue Crossover Refunding Bond.  He stated that the bonds would be issued in 2007 with the proceeds placed in an escrow account until they can be used to retire the current outstanding debt beginning in 2010.

 

He stated that the City Council adopted a preliminary resolution on November 20th that required Northland Securities to proceed with a bond sale only if the refinancing would obtain a total net savings of approximately $328,000.  He stated that the actual total net savings from todays bond sale were $409,000, approximately $81,000 more than what was originally hoped.

 

Paul Donna stated that one of the reasons for the increased savings, other than the historically low long-term interest rates, was due to the AA2 bond rating achieved by the City of Deephaven.  He stated that this is an extremely high rating for a city of Deephaven’s size and that the City should be very proud of obtaining that rating.  He stated that with that rating, they were able to purchase insurance on the bonds that increased the overall bond rating to triple A.  As a result, the net interest rate for the Series 2007C is 4.09% and 4.15% for Shorewood’s Series 2007A-bond issue.

 

Motion by Councilmember Skrede to adopt Resolution No. 33-06, A Resolution Approving the Refinancing of the EFD Bonded Debt.  Seconded by Councilmember Crockett.  Motion carried 5-0.

 

6.                  NEW BUSINESS

 

A.                 Discuss Alternate Dates for 2007 Council Meetings

Motion by Councilmember Skrede to approve the following alternate dates for Council meetings due to conflicts with major holidays.  Seconded by Councilmember Kask.  Motion carried 5-0.

 

The following Council dates have been rescheduled:

 

Original Date                                        Major Holiday                                      Rescheduled Date

Monday, January 1                               New Year’s Day                                  Wednesday, January 3

Monday, January 15                             Martin Luther King Day                        Thursday, January 18Work Session

Monday, February 19                           President’s Day                                    Cancelled

Monday, September 3                          Labor Day                                            Thursday, September 6

 

B.                 Discuss 2007 Prosecution Rates (Steve Tallen)

City Prosecutor Steve Tallen was present to propose an increase in prosecution rates for 2007 from $2,425 per month to $2,597.50 per month.  Mr. Tallen stated that through October 2006, the City has received $39,670 in fines and forfeitures from Hennepin County and paid $26,665 to his firm for prosecution services and $710 to Hennepin County for jail fees.  He stated that 2006 has been a busy year for prosecutions but there has not been any one large case as there have been in prior years.

 

Mr. Tallen explained that the Council had agreed last year to an increase in his fees for 2006 but that he had neglected to bill for that increase this year.  He stated that he was not looking to recover the lost fees but would like to propose a 3.9% cost of living increase from the approved 2006 rate up to $2,597.50 per month in 2007. 

 

Councilmember Skrede asked Mr. Tallen where he obtained the 3.9% cost of living figure?  Mr. Tallen stated that he obtained the percentage from the Bureau of Labor statistics.  Councilmember Skrede stated that although he realized that it wasn’t a significant difference, he would prefer a 3% increase rather than a 3.9% increase in order to keep Mr. Tallen’s fee increase in line with salary increases given to other Police Department employees.  Mr. Tallen stated that his request for a 3.9% increase was a request only and that he would be comfortable with a 3.0% increase.

 

Councilmember Kask stated that he does not oppose a 3.9% increase for 2007 but would also like to see any future increases tied to what our Police Department is earning.  Mr. Tallen stated that the pay scale for lawyers is somewhat different from what police officers are making and that the City would not be able to hire a decent entry-level attorney at the hourly pay that he currently receives from the City.

 

Councilmember Crockett agreed with Mr. Tallen that it is not appropriate to tie his compensation to the compensation received by our Police Department.

 

Motion by Councilmember Crockett to approve a 3.9% increase to $2,597.50 per month to Tallen & Baertschi for 2007 prosecution services.  Seconded by Councilmember Kask.  Councilmember Skrede opposed.  Motion carried 4-1.  

 

7.                  REPORTS FROM STANDING COMMITTEES

 

A.                 Public Works Committee

Administrator Young stated that the Public Works Committee met on December 6, 2006 and reviewed a complaint regarding the removal of boulevard trees, an update on OSHA compliance, the installation of barricades at Walden Beach, the relocation of a street sign on Minnetonka Blvd and storm water projects.

 

 

B.                 Park Committee

Administrator Young stated that the Park Committee met on December 6, 2006 and recommended the repair of the wooden swimming dock area at the Main Beach in 2007, discussed the location of the tennis court backboard at Village Hall and Thorpe tennis courts and recommended canceling the Skating Party scheduled for January 6th to allow for better planning of the event.

 

Councilmember Wheaton stated that the Park Committee would appreciate any direction given by the Council regarding the paddletennis court.  Mayor Anderson stated that earlier Councils have discussed the possibility of relocating the court to Thorpe Park but found out that the cost would be extremely high due to the fact that the court is erected on piers.  Councilmember Skrede stated that there has also been some discussion about using volunteers to assist with the repair of the court at a cost significantly less than purchasing a new court.

 

Councilmember Crockett inquired about the Park Committee’s recommendation concerning the Main Beach swimming dock.  Administrator Young stated that the Committee recommended replacing the existing swimming dock with another wood dock of the same style and footprint.  He added that the Committee felt that there would be too many complaints from the public if the dock were not replaced.

 

8.                  ADJOURNMENT

The meeting adjourned at 8:25 p.m.