DEEPHAVEN CITY COUNCIL MEETING

MONDAY, JULY 2, 2007

MINUTES

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

PRESENT: Mayor Paul Skrede, Councilmembers Keith Kask, Steve Adams, John Wheaton and Kim Crockett

STAFF: Police Chief Cory Johnson, Zoning Coordinator Gus Karpas and City Administrator

Dana Young

2. PLEDGE OF ALLEGIANCE

The Council recited the Pledge of Allegiance.

3. APPROVE CONSENT AGENDA

Motion by Councilmember Crockett to approve the Consent Agenda, consisting of the following items:

A. Minutes of June 18, 2007

B. Approve Monthly Verifieds

C. Appointment of Barbara Jean Brandt to Planning Commission

Seconded by Councilmember Kask. Motion carried 5-0.

Barbara Jean Brandt, 20395 Lakeview Avenue, was present to introduce herself to the City Council. The Council thanked Ms. Brandt for her interest in serving on the Planning Commission.

4. MATTERS FROM THE FLOOR

There were no Matters from the Floor.

5. PUBLIC HEARINGS

A. Proposal for the Issuance of a Revenue Note for Excelsior Covenant Church. Adopt

Resolution No. 20-07, A Resolution Authorizing the Issuance of a Revenue Note for

Excelsior Covenant Church.

Mayor Skrede called the public hearing to order at 7:10 p.m. and asked Administrator Young to give a brief summary of the request. Administrator Young stated that the City Council adopted Resolution No. 13-07 on June 4^th that called for a public hearing to be held on the request for the City to issue a $2,600,000 Education Facilities Revenue Note on behalf of Excelsior Covenant Church. He stated that the City is not legally obligated to repay the debt and the sole ramification on the City is that the $2.6 million would count towards the $10 million in bank qualified debt that a city is eligible to issue each year. He added that in exchange for issuing the debt, the City would receive $2,500 from Excelsior Covenant Church to pay for upfront legal and publication costs and ½ of one percent of the principal amount of the bond totaling $13,000.

Mayor Skrede stated that the City of Shorewood was first approached by Excelsior Covenant Church for their support of this project. He stated that Shorewood was unable to issue a bond on their behalf because the City had already issued debt and were too close to the $10 million bank qualified debt limit.

Steve Fenlon, with Midwest Healthcare Capital, stated that he was representing Excelsior Covenant Church in this matter and that the proceeds from the bond issue would be used to construct a pre-school addition to ECC. He stated that this proposed use would be a benefit to the entire surrounding communities, including Deephaven. He noted that the City of Deephaven is at no risk with this bond issue since Minnesota State Statutes do not allow cities to be held liable for the debt issued on behalf of an entity like Excelsior Covenant Church. He stated that Klein Bank is the lender for this project and their commercial financing department has concluded that it is a creditable loan.

Councilmember Kask asked if the $10 million in bank qualified debt applied during a calendar year and stated that the only reason that the City would need to issue any debt this year would be in the event of some unforeseen emergency.

Steve Fenlon stated that the $10 million in bank qualified debt applied during a calendar year and that there are exemptions in the $10 million debt limit for emergency situations.

Mayor Skrede stated that since the Excelsior Covenant Church is located in Shorewood, the City of Shorewood would need to hold a public hearing to approve the project as well. Steve Fenlon noted that a public hearing is scheduled to be held before the Shorewood City Council on July 9^th.

Councilmember Adams informed the Council that he is a member of Excelsior Covenant Church and would abstain from voting on the matter but noted that he favors the project.

Motion by Councilmember Wheaton to adopt Resolution No. 20-07, A Resolution Authorizing the Issuance of a $2.6 Million Revenue Note for Excelsior Covenant Church. Seconded by Councilmember Crockett. Councilmember Adams abstained. Motion carried 4-0-1.

B. Adopt Resolution No. 21-07, A Resolution Approving the Vacation of Bowman Street.

Request to vacate the undeveloped right of way known as Bowman Court.

Zoning Coordinator Karpas explained that this was part of the Final Plat request by Mark Kawell. He said it was the opinion of the City Attorney that the Council hold a separate public hearing for the request since a formal application had not been submitted at the time of plat review. Karpas noted that the City of Shorewood has already approved a vacation for that portion of Bowman Court located in their city.

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

Mayor Skrede asked if this was basically a housekeeping issue. Karpas said it was.

Councilmember Adams moved to adopt Resolution 21-07, a Resolution approving the vacation of Bowman Court. Seconded by Councilmember Kask. Motion carried 5-0.

6. PLANNING & ZONING REQUESTS

A. Special Use Permit – St. Therese Church, 18325 Minnetonka Boulevard, R-3, 20,000 – The applicants are requesting a special use permit to operate a daycare facility within the existing structure.

Zoning Coordinator Karpas reviewed his staff memo. He said the request is to operate a daycare

facility, which is permitted under the ordinance in the R-3 District with the issuance of a special use

permit. At this time, the applicants have been approved by the State for up to forty-five children based

on the size of the area to be used for the daycare. Based on the number of children permitted, the

Church does not qualify for an exemption under the State Statutes, which requires cities to view

facilities serving twelve or fewer children as a permitted use in residentially zoned districts.

The applicant has indicated that the hours of operation would be between 6:30 a.m. and 6 p.m. They do not intend to place any exterior signage on the property and feel there would be no detrimental affect on traffic in the area. He said he recommended approval of the request saying that the request meets the criteria required for a special use permit in that the use is consistent with the current use of the property, the use would not be discernable from the existing use of the property, it appears the use would not cause any negative effect in terms of health, safety and general welfare of adjacent properties, the use would not significantly alter the existing traffic conditions in the area and the use would not negatively impact the property values of the subject property or those adjacent to it.

Jane Frederick, 19450 Rosedale Avenue, spoke to the request. She explained that her children are currently in the St. Joseph’s program and that the relocation of the daycare center to Deephaven will be a huge benefit to the community. She said they have already had inspections by the Building Official and Fire Inspector who have approved the proposed area to be used for the children. She believes this request will be a great fit for the community.

Mayor Skrede asked if there was anyone from the public who would like to comment on the request. Hearing no comments, he asked for Council comments.

Councilmember Adams presented the Planning Commission report. He said one topic of discussion at the Planning Commission was the drop off and pick up points for the children. The applicant has indicated that two different locations will be used, with the most predominately used entrance at the rear of the building. The Planning Commission unanimously recommended approval for the request.

Councilmember Wheaton asked how many Deephaven residents use the St. Joseph’s facility. Mr. Frederick said her children are the only ones at this time, but noted that not all the families using St. Joseph’s are going to transfer to St. Therese, which will leave openings for local residents.

Councilmember Kask moved to approve the special use request to operate a daycare facility, as presented at 18325 Minnetonka Boulevard, based on staff’s findings. The proposed use is consistent with the current use of the building and the proposal would not have detrimental affect on the surrounding area. Seconded by Councilmember Adams.

DISCUSSION: Councilmember Wheaton asked if the permit was subject to annual review. Zoning Coordinator Karpas said the ordinance does not require an annual review, but the premise of a special use permit allows the city to review it at any time if there are unforeseen issues.

Mayor Skrede called the question on a motion to approve. Motion carried 5-0.

B. Variance – Mark and Susan Weibel, 19150 Rutledge Road, R-3, 20,000 – The applicants are requesting to demolish an existing one stall garage with an attached carport and construct a new attached two-stall garage which would exceed the maximum permitted impervious surface. The requested variance is to exceed the maximum permitted impervious surface area by 5.5%.

Zoning Coordinator Karpas reviewed his staff report. He said the request was to remove the existing garage structure and construct a new garage in its place. The existing garage encroaches into the required side yard setback, and due to that encroachment, it does not qualify for the reduced setback on the opposite side yard. Because of that, the property is in non-compliance with both of the required side yard setbacks. The proposed garage would comply with the required fifteen-foot east side yard setback, bringing the whole property into compliance in terms of setback.

The request is to exceed the maximum permitted impervious surface by 5.5%. The proposed impervious surface is less than what currently exists on the property.

Karpas said he recommended approval for the request based on the size of the lot, which is just over one half the minimum required size for the R-3 District, the existing condition of the garage which warrants repair, the reduction of the impervious surface and that the request would bring the property into compliance with the required setbacks.

Mayor Skrede asked if there was anyone from the public who would like to comment on the request. Hearing no comments, he asked for Council comments.

Councilmember Adams presented the Planning Commission report. He said it was noted on visiting the site that the carport was in dire need of repair or removal. The Planning Commission unanimously recommended that the Council approve the request.

Councilmember Crockett moved to approve the variance request to exceed the maximum permitted impervious surface area by 5.5% for the proposed garage addition, as presented at 19150 Rutledge Road, based on staff’s findings that a hardship exists in the size of the lot in relation to the required lot area in the R-3 District, the need to replace the garage and that the request would not alter the essential character of the neighborhood. Seconded by Councilmember Kask.

DISCUSSION: Mayor Skrede commented that scaled plans would need to be submitted prior to the issuance of a building permit.

Councilmember Wheaton asked about the driveway area that encroaches onto the adjacent property. He noted it was discussed at the Planning Commission and that the applicant had indicated that he could remove that portion of the driveway. He would support that as a condition provided there would be no safety issues related to backing out of the driveway. Mayor Skrede said he was thinking the same thing.

Councilmember Crockett said this would be a good opportunity to clean up the encroachment, though she noted it’s not a city issue. She would support an amendment to her motion to terminate the turnaround at the property line. Councilmember Kask said he would also support such an amendment.

Councilmember Crockett amended her motion to include a condition that the applicant terminates the turnaround at the property line. Councilmember Kask seconded the amended motion. The motion carried 5-0.

C. Variance – Todd and Tania Meixner, 4195 Hillcrest Lane, R-2, 40,000 – The applicants are requesting to demolish an existing entry deck and replace it with a new deck and covered entryway, which would encroach into the required front yard setback. The requested variance is to encroach twenty-one feet into the required fifty foot front yard setback.

Zoning Coordinator Karpas reviewed his staff report. He said the request was to remove the existing front entryway deck and construct a new deck and covered entryway. He said that the deck has already been removed because the applicant felt it was unsafe. The existing home and deck are built within the required front yard setback. The proposed deck would be pulled up against the home, reducing the existing encroachment by six feet. He said there is a need for an elevated entryway due to the grade in front of the home. The deck provides access to the home from the driveway. The proposed front entryway would provide a protected entry to the home, which currently does not exist.

Karpas said he recommended approval for the request based on the placement of the home within the required front yard setback and that the request would enhance the character of the neighborhood by pulling the deck further back from the street.

Todd Meixner was present to answer any questions.

Mayor Skrede asked if there was anyone from the public who would like to comment on the request. Hearing no comments, he asked for Council comments.

Councilmember Adams presented the Planning Commission report. He said the Commission noted that deck and stairs are needed to access the home due to the varying grades on the property. The Commission discussed the placement of the retaining wall to divert drainage around the house.

Mr. Meixner said that soon after they purchased the home, they noticed serious water damage to the sheet rock in the basement of the home. They discovered that runoff was coming directly from the street to the one corner of the basement. They used fill from the rear of the home to construct a retaining wall to divert the water around the home.

Mayor Skrede asked if the intent was to give the impression that the split-level home was a walkout rambler. Mr. Meixner said that was the intent.

Councilmember Adams said the Planning Commission found that the request was not purely aesthetics and that the deck was necessary to enter the home, they unanimously recommended the Council approve the request.

Councilmember Kask moved to approve the variance request to encroach twenty-two feet into the required fifty foot front yard setback for the proposed deck and front entryway addition, as presented at 4195 Hillcrest Lane, based on staff’s findings that a hardship exists in the placement of the home on the lot, the need to gain access to the home and that the request would not alter the essential character of the neighborhood. He noted that the degree of encroachment was reduced by six feet. Seconded by Councilmember Crockett. Motion carried 5-0.

7. NEW BUSINESS

A. Oath of Office to Police Chief Cory Johnson

Mayor Skrede presented the Oath of Office to new Police Chief Cory Johnson.

B. Review Appeals from June 15^th Deadline

Administrator Young stated that the Watercraft Space Ordinance requires all watercraft to be at their assigned space prior to June 15^th. He stated that if the permit holder is not at their assigned space by that date, City staff is required to revoke their permit. He stated that the permit holder has the right to appeal the revocation of their permit to the City Council. After considering the appeal, the City Council can affirm or reverse staff’s decision but reinstatement of the permit would require the permit holder to pay a penalty equal to 50% of the normal permit fee.

Marna Klammer, 19715 Hillside Street, stated that she is married to Vytas Rimas and is not here this evening to appeal staff’s decision but rather to state that she agrees with the decision and requests repayment of their 2007 permit fee.

Motion by Councilmember Adams to affirm staff’s decision to revoke the 2007 permits of Daniel Dyb, Vytas Rimas and Jonathan & Lori Larson for failure to comply with the June 15^th deadline requirement. Seconded by Councilmember Wheaton. Motion carried 4-0.

C. Discuss Proposed Sign Ordinance – Review proposed language amending the city’s current sign ordinance.

Zoning Coordinator Karpas said the proposed changes merge the existing ordinance with a model sign ordinance developed by the League of Minnesota Cities in response to recent First Amendment challenges to some local sign ordinances. He said the proposed ordinance clarify the regulations in terms of Commercial and Non-commercial speech. It does not address, specifically, the issue of lease signs, but the language can be amended as the Council sees fit.

Mayor Skrede said this ordinance was born from an innocent discussion on leasing signs. Due to it’s comprehensive nature, he would like the Council’s opinion on what has been presented and questioned if this was the direction they would like to take or if they would like to see something that is more tailored to the current issues in Deephaven.

Councilmember Adams feels it would be good idea to adopt an ordinance that seeks to address issues that may not be issues at this time, rather than to appear ad hoc at a later date. He thinks the ordinance looks pretty good, though he does have some questions and thinks there are some items that could be added.

Councilmember Crockett said she was comfortable with the broad approach, though it’s a lot of information to absorb in one sitting. She would like the Council to submit their concerns regarding signs to Staff, so they can ensure the ordinance addresses those issues. She has a list of signs, which she believes contribute to visual pollution in the city. She would like to make sure the ordinance addresses those types of signs.

Mayor Skrede said Councilmembers should give their thoughts to Staff so the ordinance can be redrafted for the Planning Commission. He would like to see an ordinance come from the Planning Commission that does not need extensive work at the Council level.

Councilmember Adams said among his broad issues, is the regulation of off-premises signs. He said they are defined but not regulated in the proposed ordinance. Mayor Skrede agreed those, along with lease signs, have been an issue. He said the biggest difficulty in regulating for lease signs is verifying that the space to be leased is actually located in the city.

Councilmember Adams said additional issues that need to be addressed are signs in the city right of way and the regulation of content. He feels the city should have the ability to prohibit language of an obscene nature or those signs encouraging illegal activity.

Mayor Skrede asked the Council to give their concerns regarding the ordinance to Staff so they can be ironed out at the Planning Commission.

8. DEPARTMENT REPORTS

A. Police Department

Police Chief Cory Johnson stated that he is still getting settled in to his new position and looks forward to working with the Council.

B. Excelsior Fire District

Councilmember Crockett gave a brief update on the District worksession that was held on June 27^th to provide a review of the 2008 Operating Budget and Capital Equipment Plan to the member cities. She stated that the technology funding has been taken out of the Capital Equipment Plan and the 2008 CEP budget reestablished at $155,000. She noted that some technology expenditures would now be included within the 2008 Operating Budget. She added that the Fire Board had met earlier that evening in executive session to review the six month performance evaluation of Fire Chief Scott Gerber, which was outstanding.

Mayor Skrede stated that he also attended the June 27^th budget meeting and had expressed his concerns regarding the proposal to replace the fiscal agent with a part-time employee in 2008. He stated that he is firmly convinced that it is more prudent fiscal management to ensure that the financial activities of the District are conducted independently. He added that additional discussion had been held on reducing the cities annual voluntary contribution to the relief association and on separating out the remaining Orono Fund proceeds that have been authorized to be spent by the Firefighters on equipment and the amount left to the District.

Councilmember Adams added that the District’s Capital Equipment Plan was very well thought out in terms of fire equipment but the technology funding was not as well developed. He stated that the majority of Councilmembers present at the June 27^th meeting felt that the funding plan for technology did not adequately identify the actual needs of the District.

C. Public Works

Administrator Young provided an update on recent public work activities in June and upcoming projects in July.

D. Administration

Administrator Young provided an update on the following items:

· The annual goose survey

· Safety Inspection of the Public Works Department

· Woodland Contract

· Measurements of boats on slides

· Funding discussions with Senior Community Services

9. ADJOURNMENT

Motion to adjourn by Councilmember Wheaton, seconded by Councilmember Crockett. Motion carried 5-0. The meeting adjourned at 8:50 p.m.

Respectfully submitted,

Dana H. Young

City Administrator