111303 Joint SL Cities WS Min
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JOINT CITY COUNCIL WORK SESSION
CITIES OF EXCELSIOR, GREENWOOD,
SHOREWOOD, AND TONKA BAY
PUBLIC MEETING
THURSDAY, NOVEMBER 13, 2003
SOUTHSHORE CENTER
7:00 P.M.
MINUTES
1. CONVENE JOINT CITY COUNCIL MEETING
Facilitator Bakken opened the meeting at 7:00 P.M.
A. Roll Call
Present:
Facilitator:
Larry Bakken, Professor of Law at Hamline University, (and former Mayor
of Golden Valley)
Mayor Johnson, Council members Mueller, Bolles, and Caron
Mayor Nagel, Council members Alstatt and Rubenstein
Mayor Love, Council members Garfunkel, Lizee, and Zerby
Mayor Keller, Council member Bauman
Excelsior:
Greenwood:
Shorewood:
Tonka Bay:
Note: The Mayors of the four cities comprise the Coordinating Committee of the SLMPD.
B. Introduction
Bakken opened the joint work session meeting with the City Councils of the South Lake Minnetonka
Police Department Joint Powers Agreement (IPA) present to discuss the 2004 SLMPD Operating
Budget. He complimented the communities on their willingness to work together to find resolution, and
upheld the Joint Powers Agreement as a model to other communities. Bakken asked for comment from
members on where the situation lies. He noted the mayors were seated together to show their dual
responsibilities as the Coordinating Committee.
Caron, Excelsior, explained that there is disagreement of how to solve conflicting budgets. He indicated
that Excelsior recently presented a new proposal which included a limited financial contribution, but also
offered 'in-kind' contributions. While he recognized that all communities faced similar budget
shortfalls, he hoped they might find some common ground and continue to enjoy the same level of
service.
Mayor Keller, Tonka Bay, pointed out that three member cities of the JPA approved the proposed police
budget and were willing to pay more to achieve a higher level of service.
Mayor Love, Shorewood, while agreeing with both parties' comments, noted that the JPA fails to cover
dispute resolution. Love indicated that over the past year the Coordinating Committee has looked for
common ground and he voiced his concern that the level of service his constituents had come to expect
would not be maintained. While he did not relish the idea of one City not getting the same level of
service as the others, he expressed his desire to preserve the services they had.
With regard to the proposal set forth by Excelsior, Love commented that he was impressed by its desire
to maintain the current level of service. He also looked forward to a long term solution in terms of a
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financial decision. Love indicated that he was not enthusiastic about 'in-kind' contributions, although
other communities might find those acceptable.
Bakken stated that he believed the communities were not far from establishing a workable agreement. As
most cities agree that police and fire are the most important services to the public, Bakken asked for
feedback on the proposal set forth by Excelsior and other issues for discussion this evening.
Mayor Nagel, Greenwood, stated that, while he could appreciate the budget difficulties faced by
Excelsior, he needed specific details of its financial woes in order to understand its position.
Zerby, Shorewood, stated that he believed the fundamental nature of the JPA has come into question.
Since all South Lake communities are intertwined in this partnership, it is difficult when one City has
chosen to go one way and the rest another.
Mayor Keller asked if there were specific issues within the budget that have created this impasse. He
indicated that 17 or 20 members support the budget.
Mayor Johnson, Excelsior, stated that Excelsior has lost over $100,000 in LGA funds for the upcoming
year and this reduction has had a profound impact on the budget. She indicated that they've been forced
to cut staff and spend a great deal of time cutting budget items and raising revenues.
Caron stated that Excelsior's reservations to amend the JPA to build the new facility stem back to 2001
when it expressed concern that Excelsior might not be able to afford it. He indicated that they did not
believe the budget would increase dramatically enough to outstrip Excelsior's ability to pay for the new
facility. He added that, even after cutting a public works position, and raising revenues, a budget gap of
at least $80,000 remains.
Mayor Nagel asked what percent of Excelsior's budget was devoted to police and fire.
Myles McGrath, Excelsior City Manager, stated that of the $1.6 million budget, public safety makes up
approximately $600,000 of the operating budget.
Once again Mayors Love and Nagel asked if specific items within the budget itself seemed unacceptable.
Nagel believed the budget was as lean as could be and voted to approve it as a member of the
Coordinating Committee. He questioned why Excelsior did not propose specific cuts to the Chief.
Caron stated that the Council did not engage in a debate over the specifics, but rather felt the overall
budget was something it could not afford. He maintained that this was information the Excelsior Council
had shared with the Police Chief when the budget was initially proposed.
Mueller, Excelsior, maintained that the Excelsior contributions to the budget were not simply flat lined,
after taking credit for termination of rent; it made a $13,500 contribution.
Bolles, Excelsior, stated that historically, the level of budget increase has been to 2.5-3%, or the
consumer price index, which is what the City of Excelsior has proposed.
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Caron reiterated that they believed they had made their reservations clear up front about the budget and
new facility to the Police Chief and others.
Bolles insisted that they had explained to the Chief that if he believed the department could hold its
budget to historic levels in the new facility, only then would they endorse it. He commented that this has
not happened.
Mayor Love stated that, while the other three cities could have cut their level of services as well, they
have opted to receive the optimum level of police service possible. He asked whether Excelsior would.
be comfortable with that.
Caron pointed out that it was not contemplated in the JP A how to differentiate service if one city could
not afford the same level of services. He noted that Option A was inconsistent with the JP A to have line
item differentials.
Mayor Johnson assured the members of the IP A that Excelsior did not want to opt out of the JP A; on the
other hand, they need to work on their commitment on an annual basis. She felt the IP A to be good
document, but also believed cities should have the ability to review the budgets annually. She noted that
Shorewood had already set a precedent by purchasing additional services.
Mayor Love pointed out that Shorewood's desire to add a community officer benefited the entire South
Lake area at a cost to Shorewood of an additional $65,000 a year.
Zerby stated that the Coordinating Committee asked the Police Chief to present the least costly budget
possible that could still maintain the minimum level of service.
Lizee, Shorewood, stated that she would dissuade the group from initiating cafeteria style budgeting. She
believed the police department would be unable to present a budget that maintains the same level of
service for the entire South Lake area in this scenario.
Bakken asked if all parties wished to maintain the same level of service.
Mayor Nagel stated that, while Greenwood places the least demand on the police department, it spends
over 50% of its budget to obtain an optimum level of service. He noted that Excelsior devotes a smaller
portion of its budget to these same services.
While Bakken recognized that most acknowledge police and fire as people-heavy services, he noted that
it is the nature of the JP A that might need to be modified.
Mayor Keller explained that in 2003, the Committee was forced to take money from reserves to maintain
the department because Excelsior would only pay a certain amount of money for the budget. At
Excelsior's request, the Chief distributed the budget earlier this year, providing everyone with ample
time to review it. Keller pointed out that the only proposed increase was for operating costs for the new
facility. He maintained that Excelsior's objection to an increase seems to be based on the fact it has
failed to acknowledge an increase over the past two years.
Garfunkel, Shorewood, stated that the nature of the JPA has tied the entire South Lake community's
public service to the minority decision of 4 of the 20 council members.
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Mayor Nagel indicated that he believed Excelsior had not gotten down to the real issues behind its
reservations.
Bolles stated that it concerned him the proposed SLMPD budgets continually increase year after year, in
excess of the cost of living. As a Council member, he expected the Chief to control the budget and keep
it affordable.
Zerby pointed out that the facility is an investment in the future. While it offers more than what is
absolutely necessary today, Zerby pointed out that it should serve the South Lake area comfortably for
the next 50 years. He asked how Excelsior could have realistically expected to keep growth at historic
levels when they jointly bit off a big chunk now to serve the next 50 years.
Bolles asked how much bigger a facility the South Lake area felt it needed over the next 50 years.
While this was impossible to estimate, Zerby stated that traffic continues to increase with construction to
the west which means more law enforcement, as well as Excelsior's own desire to rebuild its downtown.
He added that higher density housing and lake use also continue to rise.
Mayor Love concurred, stating that a fixed limit would be irresponsible, as an ever-higher demand is
made of our police department. While one could not anticipate the future, Love pointed out that the
nature of the JP A was to keep costs down for all by building a new facility to serve future needs of the
South Lake area.
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While an individual City's financial crisis is a reality, Bakken asked if this were a temporary situation
and how other cities could deal with that. He pointed out that all cities have different value systems
which might conflict with the ultimate values of the JP A. Although police and fire are essential services,
if Excelsior has chosen not to raise levies, etc, it has put itself in direct conflict with the other joint cities.
In this case, Bakken asked whether the JP A should be modified.
Mayor Nagel stated that options do exist, including asking for a loan, raising levies, or issuing bonds.
Mayor Keller maintained that the Chief had laid out a budget reflecting the minimum operating costs
available. He stated that he did not wish to put his police department in the same position as that of
Minneapolis, one that cannot afford to pursue minor crimes.
Mayor Love reminded the members that the cafeteria-style list was compiled upon request of the
Coordinating Committee and whatever decisions about the budget that are made are policy based and not
a reflection of the department or its staff.
Lizee questioned whether Excelsior's budget problems will continue to arise year after year. If so, she
asked what impact this might have on the South Lake area. She indicated that it was unfortunate the joint
members were being held hostage by the vote of three council members.
Bolles reiterated that Excelsior could only commit to 3% annual budget increases.
Zerby pointed out that it is difficult to control what state and federal mandates may be required of the
police department in coming years, and to hold them to a mere 3% increase is preposterous. With 84% of
. the police budget devoted to people and the need to be responsible to the public, he questioned whether
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Excelsior had reviewed other line items in its budget for further reduction. He pointed out that Excelsior
has the sale of a $600,000 building pending after the police department vacates.
Bolles stated that it would take time to vacate the premises and sell the building. He noted that Excelsior
would be losing rental and lease fees in the interim from the department.
Mayor Love questioned whether the groups were finding any common ground to base further discussion.
He asked if the committee should proceed with a vote in order to give direction to the Police Chief.
Bakken pointed out that there had been many data differences and interpretations presented this evening
and asked whether the communities were ready to move away from an agreement that has served them
well for 30 years. He used the analogy of two racing trains ready to collide head on and no one willing to
swerve.
Mueller stated that Excelsior has stated its position, and been told it is not acceptable.
Caron asked that everyone acknowledge that they understand Excelsior's stated limits to its level of
commitment from the beginning and desire to hold to the historic 3% increase.
Mayor Love stated that he could not acknowledge a specific percentage that the department was expected
to be held to. He indicated that the Chief had been told to hold the budgets down as low as possible,
which he felt 6% achieved in meeting that challenge for 2004.
Zerby reiterated that, having reviewed the budget thoroughly, the increases were not due to any
irresponsibility on the Chief's part, but instead, due to such increases in heat costs, cleanup costs, and
biocontamination removal.
Bakken asked where the City of Excelsior was at if it could agree that the budget was as low as possible.
Caron stated that he believed the IP A was not a majority vote tool, but instead something created to
protect the weakest city. It was designed to force the group to adhere to the lowest figure affordable to
the weakest participant.
Bakken questioned how they propose to cover the shortfall. He asked whether it would be a reduction in
services, a loan from other cities, dipping into reserves, etc. He believed the group was on the verge of
making a decision and urged them to consider the citizen's safety and security.
Mayor Keller urged Excelsior to get 3% off its mind. He pointed out that as a group they help each other
out in special circumstances, such as in the event of a murder, etc., which takes additional resources.
Mayor Love asked what it would take to approve the budget. Having offered options, he asked what the
group could do to move the budget forward. While he wished to maintain the spirit of the IP A and
recognized Excelsior's predicament, Love asked what could be done to approve the budget or whether
there was something specific they wished to challenge.
Mueller asked if the group would acknowledge that Excelsior did not flat line the budget, but in fact,
gave the department a $13,500 increase based after factoring termination of rent. He asked that the joint
cities recognize this contribution made by Excelsior by no longer receiving rent for the police station.
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JOINT CITY COUNCIL WORK SESSION
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Mayor Nagel stated that the partner cities did not realize this was a cost to Excelsior.
Altstatt, Greenwood, asked how much of the $25,000 shortfall could be scaled back to make the budget
acceptable to Excelsior.
Caron stated that they had presented a proposal which offered $5,000 and additional 'in-kind'
contributions.
Altstatt asked whether others could accept this combination of $20,000 in contributions this year.
Mayor Love questioned the use of 'in-kind' contributions. While he recognized that any City could be
faced with a similar predicament in years to come, he stated that it would be up to the Coordinating
Committee whether it could support this or perhaps a 3-year program to get a city back up to speed.
Discussion with regard to the rental contributions ensued.
Zerby felt it was a dangerous precedent to allow one City to take a step back.
Garfunkel concurred, stating that it is far easier to take a step back than it is to ever get back the lost
momentum going forward creates.
Caron stated that other options exist other than 'A' as proposed that seems to penalize Excelsior.
Mayor Love disagreed that Excelsior alone would be penalized. Love stated that if the partnership moves
in this direction, everyone loses, by losing an officer.
Bakken asked if further discussion of the Excelsior proposal was warranted.
Zerby asked how the lP A allowed things to get to this point. He was concerned that the cities might be
faced with the same scenario next year. He pointed out that the Coordinating Committee approved the
budget as presented after review, and assumed the Councils would concur.
Caron stated that, after looking at a $25,000 shortfall, Excelsior developed a proposal that it felt it could
support.
Zerby commented that Excelsior seems to be asking for the same level of service as everyone else, but
for less money.
While Excelsior has offered to approve a 3% annual increase over time, Bakken questioned whether, in
reality, this is sufficient to maintain the same level of service it or all of the cities are accustomed to. He
pointed out that using the past is not an indicator of the future.
Mayor Nagel asked why Excelsior signed the lP A is it did not wish to participate in all of the costs of the
new facility.
Bolles stated that it signed the lP A before a public safety proposal was finalized. He maintained that they
had started discussions of a fire facility only constructed with a budget of $3 million; whereas, final
figures exceeded that number.
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Although Excelsior may not have been sold on the new building, Zerby pointed out that improvements
were made to the facility, including a covered parking area, holding cells, emergency operation center,
and emergency generators that were not foreseen in the initial proposal.
Mayor Love urged the groups to avoid rehashing past decisions made by past Councils, instead he urged
the participants to pick up the pieces and lead their cities in an appropriate direction. He indicated that by
January he intended to cast his vote, albeit acknowledging, unfortunately, they had collectively failed.
Mayor Johnson asked what sort of dialogue might extend the deadline.
Mayor Love stated that, faced with the lack of common ground, he was less convinced than ever that an
agreement could be found. He indicated that he felt Excelsior did not wish to receive the same level of
service as the others due. to historical differences of opinion.
Mayor Johnson asked if the proposal put forth by Excelsior contained enough to continue dialogue.
Mayor Love stated that the only common ground he found was dispute resolution. While financial
difficulties is a common problem, he failed to see that Excelsior wished for the same level of services.
Bakken asked whether Excelsior was willing to consider taking a loan from the other cities or look into
other options.
While he appreciated the spirit of the proposal, Love stated that for two years in a row, the Coordinating
Committee supported the budget and a City Council failed to approve it. He felt the JPA should give the
Chief much needed direction for 2004, and he urged the Excelsior Council to return with a common
voice.
Bakken clarified, stating that there seemed to be little support for the proposal put forth by Excelsior. He
asked whether Excelsior could manipulate its proposal in a different manner to enhance its offer.
At 9:20 p.m. Nagel moved, Mueller seconded, to adjourn the meeting. The meeting concluded by
acclamation.
RESPECTFULLY SUBMITTED.
Kristi B. Anderson
Recording Secretary