Summary of Shorewood City Council Meeting September 22, 2025

SCA provides a brief summary of Shorewood City Council meetings for transparency, accountability and resident education.
Due to technical changes at the LMCC website, please use the Chapters directory below the video to navigate to the referred content. Where applicable, links are included to the documentation in the council packet.

Present: DiGruttolo, Gorham, Sanschagrin, Labadie, Maddy, Nevinski, City Attorney, Finance Dir. Schmuck, Public Works Morreim, City Clerk Thone, Parks Czech (seated in the audience)

Absent: Engineer Budde

1. CONVENE CITY COUNCIL MEETING

2. CONSENT AGENDA The Consent Agenda is a series of actions which are being considered for adoption this evening under a single motion. These items have been reviewed by city council and city staff and there shall be no further discussion by the council tonight on the Consent Agenda items. (more detail about the Consent Agenda)

1. City Council Work Session Minutes
2. City Council Regular Meeting Minutes
3. Claims List
4. ~~Audit Services~~ moved to 4I
5. Permanent Appointment of Planning Director Jake Griffiths
6. ~~Seasonal Ice Rink Attendant Recruitment~~ moved to 4H
7. Senior Accountant Appointment
8. Oktoberfest Prize Donations
9. Tonka United Food Truck

MOTION to approve Consent Agenda with changes: Passed 5-0.

3. MATTERS FROM THE FLOOR LMCC video Chapter 3(video starts min. 02:10) (learn more about matters from the floor)

This is an opportunity for members of the public to bring an item, that is not on tonight’s agenda to the attention of the City Council. Anyone wishing to address the Council should raise their hand, or if attending remotely, please use the “raise hand” function. Please identify yourself by your first and last name and your address for the record. Please limit your comments to three minutes.

Dale Newberg, Beverly Drive (click to watch)

Has lived here 35 years.
Has mailed his comments to all council members and staff.
His objections and disapproval are well documented on NextDoor and ShorewoodCitizenAdvocates.com.
How he has felt during the three month process: (1) phone call from Sanschagrin, email from Michelle and call from Jeanne Schmuck, he has had no other contact. He is disappointed.
Open dialogue and disagreement seems to be missing.
Council proposed fee schedule does not appear to have been discussed in detail.
There has been very little push back from the council.
If the council approves the schedule approximately $52k per year will be raised from Shorewood residents who have chosen not to hook up for a variety of reasons.
The 1500 actual subscribers could have had their base rate raised by $8.+ dollars to make up the $52k.
Why was that option rejected?
Costs will drive long-time residents out of their home.
AUDIENCE APPLAUSE-reprimand from mayor asking to refrain from any disruption or people will be asked to step into the hall to compose themselves.

Paula Callies, Radisson Road (click to watch)

Thanked the city for accepting the scholarship for the MTA attendance
Thanked Labadie for her leadership on Hwy 7 issues
Believes it is important to show up to get noticed and participate
Finds CM Sanschagrin’s rationale for deciding against the scholarship [at the Sept. 9 council meeting] to be particularly disingenuous over his concern that the city engineer [Bolton & Menk] financed the program.
Shorewood should be grateful to have an engineer that belongs to this organization.
She disagrees strongly with an in-house engineer, it’s a bad idea, has been tried in the past and is not cost effective.
She listens to the council about what the city spends money on for small amounts of money, yet for some reason many council members are willing to ignore that point and consider an in-house engineer that will increase the levy.
Is concerned that a small vocal group of persons in the city who advocate dissention, are perpetuating mis- and disinformation.

Duane Laurila, Eureka Road North (click to watch)

Been before the council 3x to get an answer on who decided not to assess the people on recent projects for city water
Has done a rough count on Peach, Strawberry, and Birch Bluff totaling 75 homes which could have raised ¾ million dollars.
Now the city wants to add additional fees.
The council is kicking the can down the road.
Sunnyvale was reconstructed with only one person wanting water.
Eureka N had water added for a developer to build 6-7 homes
The water issue is a bad idea.
It’s time to be fiscally responsible.

Andy Schatschneider, Kathleen Court (click to watch)

Thanked Labadie for her efforts to make Hwy 7 more safe.
Bicycles to work every day and crosses Hwy 7 at Church/Minnewashta Pkwy.
Kids are crossing there.
There is constant eastbound traffic.
He feels alone out there on Hwy 7.

David Cooley, Smithtown Road (click to watch)

Has lived in Shorewood for 30 years.
The last time this contentious issues came up was with the water in the late 90s on Smithtown Road.
At that time, the city told them they did not have to hook up.
The city is now looking to charge the residents without representation.
It seems like a bad idea.
The city attorney might say things have to be signed and on paper, but when a city says “we have a deal,” that is counted on.
He replaced his 100 year old well 6 years ago. He made the decision at that point that it made more sense to not put the piping in from the street so they could afford to live in their home as long as possible.
The primary thing is that if all of you [council] are thinking of passing this, you are backing out of a deal.
As I said in my letter to the city, you are doing the same thing as when this country backed out of treaties and pushed the Indians further west.
I don’t come down here very much anymore because the city council does not listen and it’s a waste of my time.

Diana Bauerly, Smithtown Road (click to watch)

She is in support of the people who are not in favor of additional fees for utilities, and disagrees with the overall % of the increases.
She quoted Aesop’s fable about paying for the smell of the bread.
She will not use city water and does not want to pay for it. Agrees with everyone that people not using water should not pay for it.
Suggested getting the money from the people using the water instead of those who are not.

Barry Brown, Burl Oak Drive (click to watch)

Explained his findings after researching the city “reserve” funds. Read his full testimony and watch the video here.

Joe Lugowski, Glen Road (click to watch)

Has lived here since June 85.
He paid his $10k assessment and has not connected to city water.
He does not want additional charges, it seems like a double dip.
Why the $10k assessment fee [for recent projects] was waived is beyond him.
He does agree that when a road is reconstructed it is financially responsible to do water at the same time.
But as far as the $10k fee, if there will be charges on top of it, he wants his $10k back with interest.
Regarding the city engineer, beneficially it is important to have an engineer on staff so they can see the day to day issues with the city.

4. GENERAL BUSINESS LMCC video Chapter 4

A. South Shore Senior Partners Presentation

Tina Brandhorst & Theresa Zerby of SSSP explained the mission and current status of the group. (Start at min. 20:09)

B. Report by Commissioner Magistad on 09-02-25 Planning Commission Meeting

Commissioner Magistad gave a verbal report about the meeting. (Start at min. 47:16)

C. 5570/5580 Shorewood Ln Rezoning, Variance & Minor Subdivision

Planning Director Griffiths gave a report on the request.(Start at min. 52:08)

D. 2026 Preliminary Tax Levy, Preliminary General Fund Budget, and Truth in Taxation Date

- Council discussion begins at min. 1:23:00. (Below are some of the highlights of the conversation.)
- The council discussion was extensive as Sanschagrin and DiGruttolo challenged Schmuck, Morreim and Nevinski to explain various calculations, schedules, opportunities and the down-side of a staff engineer. Schmuck gave an overview of the proposed levy and budget.
- Matt Morreim (public works) gave a detailed overview of the specific expenses and “philosophy” of budgeting for a staff engineer (start at min. 1:19:00)
- Labadie said paying for an engineer position results on an increase to the levy based on speculation.
- Gorham feels a little bit backed into a corner with the “all or none” options presented by the staff.
- Sanschagrin believes relationships are more productive when a consultant works in partnership with a given employee.
- DiGruttolo said residents want services, but do not want tax increases in which they do not receive a benefit.
- Sanschagrin proposed going to the lower levy and continuing to explore part time status or areas where cost cutting can occur.

E. Utility Services and Recycling Charges (start 2:38:13)

MOTION to approve Ord. 627 Utility Services and Recycling Charge. Passed 3-2 Sanschagrin and DiGruttolo dissenting.

F. Zoning and Land Use Fee Ordinance

MOTION to approve Resolution 628 Zoning and Land Use Fees. Passed 5-0

G. Update 2026 Master Fee Schedule (Start at min. 3:43:27)

MOTION to approve Resolution 25-090 for the 2026 Master Fee Schedule. Passed 5-0

H. Seasonal Ice Rink Attendant Recruitment. (Formerly 2F on Consent Agenda) (Start at min: 3:44:00)

- DiGruttolo questioned why recruitment is always done at the high end of the pay scale, especially for an ice rink attendant that does not require special skills.
- Thone said their pay range was developed after the 2023 compensation study where they were put in the same grade system as other employees but they are casual part time employees. Each year that position moves up one step in pay which includes a COLA. If they are hired back the next year they get a second bump in pay.
- DiGruttolo is frustrated because recruitment goes to the high end of the salary range.

MOTION to approve Recruitment of Ice Rink Attendants. Passed 5-0

I. Selection of Auditing Services (Start 3:51:07)

- Sanschagrin asked how the firm was selected.
- Schmuck said the criteria was based on government experience of the staff proposed; years of service, amount of similar city audits, as well as their reporting requirements and fees.

MOTION TO ACCEPT PROPOSAL OF L. B. Carlson to provide audit services to the city. All in favor. 5-0

5. STAFF AND COUNCIL REPORTS LMCC video Chapter 5

A. Staff LMCC video Chapter 5A (start min 3:53:57)

- Parks Czech: Oktoberfest 1-3 in Badger Park and Parks Open House will be Oct 28.
- Public Works Morreim: Sweeping coming up, trimming happening now
- Finance Schmuck: Levy, budget and special assessments will be submitted to Hennepin County and insurance submittals in the next few weeks.
- Planning Griffith: Findings of audit of zoning code will be presented next month, along with Tonka Bay’s support of boundary adjustments. Deer management hunt will start October 10-12.
- Clerk Thone: Rollout of agenda software has been occurring.
- Attorney Shepard: Nothing
- Administrator Nevinsky: Mound/Minnetrista fire department merger is still happening. Next council meeting is October 14

B. Mayor & City Council LMCC video Chapter 5B (start min. 3:58:14)

- DiGruttolo confirmed the city has transitioned to digital instead of hard copy packets . Asked for Flock cameras to be on a work session. Sanschagrin agreed.
- Sanschagrin residents have asked for more clarity on zoning enforcement process, such as an appeal process. Griffiths said they should call him.
- Maddy Next Mound fire meeting coming up.
- Labadie: will give a report on the MTA fly-in in DC at the next meeting.