01.31.11 CC WS Mtg Min
CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD
CITY COUNCIL WORK SESSION COUNCIL CHAMBERS
MONDAY, JANUARY 31, 2011 6:30 P.M.
MINUTES
Shorewood Mayor Lizée introduced Molly McDonald and Rebecca Heiderpriem, with Fritz Partners, who
were present to facilitate the community visioning brainstorming session this evening.
While waiting for Excelsior Mayor Ruehl to arrive the Mr. McDonald and Ms. Heiderpriem conducted an
ice breaker exercise titled 2 truths 1 lie. This exercise began at 6:45 P.M. and ended at 7:00 P.M.
1. CONVENE CITY COUNCIL WORK SESSION
Shorewood Mayor Lizée called the Shorewood Work Session to order at 7:00 P.M.
A. Roll Call
Shorewood:
Present. Mayor Christine Lizée; Councilmembers Laura Hotvet, Debbie Siakel, and
Scott Zerby; Attorney Tim Keane; Administrator Brian Heck; Finance Director Bruce
DeJong; Planning Director Brad Nielsen; Director of Public Works Larry Brown; and
Building Inspector Joe Pazandak
Excelsior:
Also Present: Mayor Nick Ruehl (arrived at 6:58 P.M.); Councilmember Wendy Berghorst:
City Manager Luger: Finance Director Joan Carlson; and Public Works Superintendent
Dave Wisdorf
Tonka Bay:
Mayor Bill LaBelle; Councilmember Jeff Anderson; City Administrator Joe
Kohlmann; and Public Works Superintendent Greg Kluver
Fritz Partners:
Molly McDonald and Rebecca Heiderpriem
Shorewood:
Absent: Councilmember Dick Woodruff
B. Review Agenda
Zerby moved, Siakel seconded, approving the Shorewood work session agenda as presented. Motion
passed 4/0.
Shorewood Mayor Lizée asked Excelsior Mayor Ruehl if he would like to call an Excelsior City Council
work session to order.
Excelsior Mayor Ruehl noted a quorum of the Excelsior City Council was not present so he could not call a
work session to order. He stated the representatives from Excelsior would participate in this brainstorming
exercise.
CITY OF SHOREWOOD WORK SESSION MEETING MINUTES
January 31, 2011
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Shorewood Mayor Lizée asked Tonka Bay Mayor LaBelle if he would like to call a Tonka Bay City
Council work session to order.
Tonka Bay Mayor LaBelle noted a quorum of the Tonka Bay City Council was not present so he could not
call a work session to order. He stated the representatives from Tonka Bay would participate in this
brainstorming exercise.
Shorewood Mayor Lizée turned control of the work session over to Ms. McDonald and Ms. Heiderpriem.
2. MEASURABLE MANAGEMENT
Ms. McDonald highlighted her professional careers, which have been in traditional business and the
performing arts. She noted she joined Fritz Partners about two years ago and has helped that company
introduce a program called Measurable Management in Minnesota. She explained Measurable
Management is a program that delivers organizational improvement through change leadership. Her early
efforts were to bring the program to city governments. She also explained she has provided the Shorewood
City Council an overview of the program.
Ms. McDonald stated she has spoken with Shorewood Mayor Lizée about Lizée’s desire to bring the
leadership of the Cities of Excelsior, Shorewood and Tonka Bay together to open a dialogue about the
impact the current state of the economy was having on city governments and the services they provided as
well as the funding for the services.
Ms. McDonald referenced an e-publication titled “Minnesota Local Government Innovation and Redesign
Guide.” The document was written by a fellow at the Humphrey H. Humphrey Institute at the University of
Minnesota. The Guide contains ideas for creating efficiencies and saving taxpayer money.
Ms. McDonald then referenced a report titled “Projection: Minnesota Cities Will Be Broke by 2015”. The
League of Minnesota Cities prepared the report with assistance from the Humphrey Institute. She
commented that in her travels throughout Minnesota, many city administrators and city managers referred
to this document. She summarized the key findings. If current revenue and spending trends continue and no
policy changes are made, Minnesota cities of all sizes in all regions of the state will be broke by the year
2015. The projection found that it makes no difference where a city is located geographically, how large or
small its population, what its tax base is, what the local economy looks like, or what its unique mix of
revenue sources is—all types of Minnesota cities will end up in the red if big changes aren’t made to city
services, funding for those services, or both. She stated those are grim statements.
Ms. McDonald also referenced a report titled “South Lake Minnetonka Vision Plan” which was published
in 2002. She explained residents, elected and non-elected, and business people in the South Lake
community got together to discuss a vision for the community and the report is the final outcome of the
discussions. She stated the report contains a lot of good information. People were asked why they lived in
the community and what they wanted and expected in and from the community.
Ms. McDonald referred to objective three in the report, which is “use the collaborative umbrella of South
Lake Minnetonka to more effectively and efficiently deliver superior municipal services.” The issues
identified were: 1) public demand for higher service levels and more sophisticated facilities is increasing in
the midst of the call for steady or lower taxes; 2) since municipal boundaries in the South Lake area are
irregular a particular community must pass through another to reach its destination; 3) the buying power of
several collaborative local governments will lead to lower prices on public service equipment, supplies,
etc.; and 4) combined public service facilities will reduce waste and duplication.
CITY OF SHOREWOOD WORK SESSION MEETING MINUTES
January 31, 2011
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Ms. McDonald stated the report also includes the strategies for how to follow through on these. She noted
the report states there will be an annual South Lake Minnetonka summit to identify the core quality of life
issues affecting the Lake and to evaluate how these collaborative efforts are going. The report also states
that it will be taken to another level, which is to meet with the area’s State Legislative elected officials to
have them ask the issues and lobby for them.
Ms. McDonald stated she does not think there is an annual summit. She also stated she did not think a
group meets with the Legislative elected officials to ensure the community’s concerns are being heard.
Tonka Bay Mayor LaBelle stated the South Lake cities do that that individually.
Ms. McDonald expressed there is a lot of useful information in the South Lake Minnetonka Vision Plan.
She stated it’s likely that after a while the report was no longer in the forefront of people’s minds.
Ms. McDonald stated if it’s true that cities will be bankrupt by 2015 she asked the participants what they
are going to do about it. She asked what the cities should do to avoid going down that path. She also asked
the participants how they could recreate the passion and desire there was when the Plan was created and
pick up where those efforts left off. She commented that she thought the participants had a great deal of
talent and energy. She stated they could collectively address some of the upcoming issues head on by
developing a collaborative model for the cities for the future.
Ms. McDonald turned control of the meeting over to Ms. Heiderpriem.
Ms. Heiderpriem highlighted her professional career. She stated she lives in Milwaukee, Wisconsin, and
that she had lived in Minnesota for nine years. She explained she spent 24 years in corporate America. She
noted in 2001 was asked by the then Governor of the State of Wisconsin to be the first Cabinet Secretary
for information technology for Wisconsin. She held the position for 15 months until the next governor
eliminated the position. She stated she joined Fritz Partners in 2008. She explained that in addition to
selling the Measurable Management program Fritz Partners provides executive coaching, and facilitation
services.
Ms. Heiderpriem stated the purpose of this effort is to:
create a collaborative model for shared services among the cities of Excelsior, Shorewood
and Tonka Bay;
establish alignment among city leaders;
determine citizen involvement moving forward; and,
create a tactical plan to move forward that won’t go on the shelf.
Ms. Heiderpriem stated future perfect thinking is about:
anticipating an outcome that has not yet occurred;
serving as a launch point for change and improvement – a it’s the stage at which direction
is set and the destination becomes focused;
defining the desired state and the benefit to the organizations and all involved parties;
painting a clear picture that provides direction during times of continued change; and,
serving as a critical step in building alignment.
CITY OF SHOREWOOD WORK SESSION MEETING MINUTES
January 31, 2011
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Ms. Heiderpriem clarified future perfect thinking is not goals. It’s not today and what’s being done. It’s
about what the cities want to look like in a perfect world. It’s about the types of services the cities could
offer its residents if they had unlimited funding.
Ms. Heiderpriem explained the group is going to develop its future perfect thinking though:
the group defining a collaborative vision that becomes its stake in the ground which will
provide a pulling force for change as this effort goes forward;
the group envisioning what could be, the desired end state, and describing what that looks
and feels like; and,
the group finishing this sentence “We will know we have reached the desired end state as a
result of our work, when …”
Ms. Heiderpriem stated if it were a perfect world, she asked the participants what they could envision the
three cities doing in their combined collaborative effort. She provided the following list of questions that
could help the group create the vision.
What kinds of shared services could be offered to the cities’ citizens?
What will the work environment look and feel like?
What kinds of work processes will characterize that environment?
What kinds of added services could the cities provide their citizens?
Ms. Heiderpriem read a sample vision statement. “The talent of our combined city staff and leadership
will lead our citizens to view us as indispensable business partners. Our employees will take personal
responsibility to provide unmatched stakeholder (citizen) value by delivering solutions and services like
no other city. This will provide us the fuel to consistently exceed our value to our citizens.”
Shorewood Councilmember Siakel stated she thought a step was missing from this process. She expressed
she thought it would be beneficial to first identify needs and to reach agreement on what areas it may make
sense to work on. She asked if the participants should share key projects, their respective city is discussing.
For example, the Shorewood Planning Commission is discussing a potential redevelopment of Smithtown
Crossing. She stated the entire County Road 19 corridor could be a good conversation for the three cities to
have; it’s the artery that binds the cities.
Excelsior Mayor Ruehl agreed with Shorewood Councilmember Siakel’s comment. He explained that
during the last Minnetonka School District’s luncheon for the mayors of the cities in the District the mayors
focused their discussion on collaboration between cities. They identified many areas in which different
cities already collaborate. He stated he does not think people understand how much collaboration is already
going on.
Ms. Heiderpriem asked a representative from each city to highlight some of their respective city’s current
areas of collaboration. Some of the areas identified are as follows.
The cities are members of joint powers organizations that provides police and fire services.
The Southshore Community Center was built by the five cities of Deephaven, Excelsior,
Greenwood, Shorewood, and Tonka Bay.
The funding for the public safety facilities is managed though the Shorewood Economic
Development Authority.
The Arctic Fever Event is hosted by the three cities represented this evening.
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January 31, 2011
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Some of the cities are members of the LOGIS Group, which provides health benefit
services.
The three cities, and other agencies, have discussed the possibility of constructing a trail
along County Road 19. Tonka Bay is very interested having that move forward.
There is an opportunity for the cities to create consistent rental ordinances.
Three cities share in a roadway sealcoat bidding process.
The cities jointly own some public works equipment.
The cities utilize other cities’ public works personnel on a short-term emergency basis.
There is a capital improvement plan to connect the water systems for emergency purposes.
Three communities share a radio system outside of the 800 megahertz channel.
Ms. Heiderpriem stated the cities have done some really great things, and she thought it’s likely the cities
are a lot further along than other cities. She asked the participants what the cities could do to advance their
collaborative efforts further and thereby free up funds to do really creative innovative things.
Ms. Heiderpriem asked the participants to write down how they would finish the sentence “We will know
we have reached the desired end state as a result of our work, when …” on the post-it notes provided. They
participants could submit as many ideas they want.
Ms. McDonald read the ideas submitted. During that process, Ms. Heiderpriem identified categories to
place each idea. The summary results follow.
More Efficient Processes
combine election functions
have unified zoning
city planning outside the box of city borders
common utility reading/billing systems
one comprehensive plan for all
establish great partnerships with state agencies (e.g.; the Minnesota Department of
Natural Resources)
coordinated capital improvement programs / development activities
hold quarterly structured meetings of city administrators, city managers, public
works personnel and planning personnel
Combined Services
Ash Borer tree investigation
ensure consistency with rental housing ordinances
Excelsior band shell
converge to one building
unified water system - already have unified sewer
contract for police services
have a larger police department to allow safe walking/biking access to all city
parks and connections between cities
create proper road crossings through the three cities for the Three Rivers Park trail
CITY OF SHOREWOOD WORK SESSION MEETING MINUTES
January 31, 2011
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have the five South Lake cities work together, not just three of them
County Road 19, a corridor for all
share software and information technology services
combine refuse and recycling services
Staff/Personnel
shared city management (part time managers/administrators/planners)
consolidate city staff (eliminate specialties such as planning)
city engineer – on call
legal – on call
treasurer – contract with a CPA
reduce by outsourcing
review opportunities for seasonal people/equipment – formulate rotating crews
Financial Implications
tax base is level between all three cities
everything is exactly the same as it is now, but costs less
cities have increased service deliverables at reduced cost
an end to funding formulas - who pays how much
a way to tax visitors who use our cities e.g., a local sales tax
New Branding
when residents say they live in the South Lake area rather than being from a
particular city - broader community identity
when residents notice no difference in community infrastructure and services
between the cities
one larger city title with municipalities or burroughs
Improved Attitudes
change values, change expectations
eliminate parochialism
residents recognize and support value of city services
make the services we provide the best we can provide; top quality services, not
more services
formally recognize Excelsior as the downtown of the South Lake area
resident perception of local government is very positive – taxpayers have complete
confidence that the city is being run as effectively and efficiently as possible
when residents believe that the services they receive are well worth their tax
dollars and that they are getting a good value
end to the “mine/your” attitude
CITY OF SHOREWOOD WORK SESSION MEETING MINUTES
January 31, 2011
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when you notice no difference in community infrastructure and services between
the cities
The Lake
no ideas were presented for this important resource and some need to be identified
Excelsior Mayor Ruehl stated he wants to make sure it’s clear that Excelsior, Shorewood and Tonka Bay
will not be broke by 2015. He then stated local government aid (LGA) has been and continues to be under
assault. Some Minnesota cities rely heavily on LGA and they will be in severe trouble. He noted that
Shorewood and Tonka Bay have not been receiving LGA. Excelsior has relied on LGA heavily up until
2003 or 2004 when the formula changed and Excelsior lost one-half of the LGA it was receiving. The other
one-half has been slowly removed over the last seven years to the point where Excelsior no longer relies on
LGA. That has increased Excelsior’s reliance on the tax levy. The loss of LGA hasn’t been excruciatingly
painful, but it has been painful.
Excelsior Mayor Ruehl stated he did not mean to underplay the issues going forward. The last three
Excelsior city councils have been doing long-range financial planning.
Shorewood Mayor Lizée stated it’s her observation this evening that participants believe there is a common
need to look at sharing common services and to find more efficiencies. She then stated she thought there is a
common desire to think outside of the box and to challenge the cities’ staffs, residents, and councils to
move things ahead.
Ms. Heiderpriem stated the South Lake cities should be commended because they are ahead of the game.
She then stated city administrators throughout Minnesota have brought up the LMC study.
Ms. Heiderpriem stated she would summarize the categorized ideas. She suggested there be a minimum of
one more meeting. After that, it may be possible to turn the planning and strategizing over to different
teams.
There was consensus to schedule another session for February 24, 2011, at 6:30 P.M.
Ms. Heiderpriem asked for the participants to provide feedback on what they thought went well this
evening as well as opportunities for improvement. The summary of that feedback follows.
Meeting Assessment:
getting to know each other
areas to work together
ability to add ideas safely
we can collaborate
great ideas
lots of new ideas for future services
collaborate to do more with less
CITY OF SHOREWOOD WORK SESSION MEETING MINUTES
January 31, 2011
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➢ Opportunities
would have liked to get to the work faster
not clear as to next step, how do we move to future state
need to have open minds as far as brainstorming
Excelsior Mayor Ruehl stated there were many ideas conveyed this evening, but they may ultimately not
be something the cities want to 'follow through with. The ideas are things that need to be explored and
evaluated.
Shorewood Mayor Lizee stated this evening's session was a brainstorming session. It's an environment
where ideas can be thrown out safely knowing the ideas are not a direction for moving forward.
Excelsior City Manager Luger stated many of the ideas are very good. She expressed she would like to
know what the goal is. She stated if the goal is to have one city manager and one planner that is okay.
But, if one person has to serve three cities that would place a tremendous burden on them.
Shorewood Finance Director DeJong stated none of the three cities are in eminent danger of going
bankrupt or having something catastrophic happen. He then stated it's important to give some credence to
what's going on going forward. The cities are not going to be in a position of providing new services if
there is much cost to doing so. Outside revenue sources will be reduced and cities will have to rely more
on their internal resources. Cities will likely have to focus on doing the same with less or providing less
with less. Cities are not going to be in a cash flush situation that would allow them to provide new
services. It's important for the cities to identify how they can collaborate more to make the cities work
better.
Shorewood Mayor Lizee stated if the participants come up with other ideas they should send them to
their respective City Administrators /Manager and they can forward them to Fritz Partners.
3. ADJOURN
Hotvet moved, Siakel seconded, Adjourning the Shorewood City Council Work Session of January
31, 2011, at 8:33 P.M. Motion passed 4/0.
RESPECTFULLY SUBMITTED
Christine Freeman, Recorder
L �C
ATTEST
Christine Lizee, Mayor
Administrator /Clerk