01-29-15 Council/Staff Retreat Min
CITY OF SHOREWOOD 24150 SMITHTOWN RD
CITY COUNCIL/STAFF RETREAT SOUTH LAKE PUBLIC SAFETY
THURSDAY, JANUARY 29, 2015 FACILITY TRAINING ROOM
8:30 A.M.
MINUTES
1. Convene City Council/Staff Retreat
Mayor Zerby called the meeting to order at 8:32 AM.
A. Roll Call
Present: Mayor Zerby; Councilmembers Labadie, Siakel, Sundberg and Woodruff; City Attorney
Keane (arrived at 8:39 A.M.); City Administrator Joynes, City Clerk Panchyshyn,
Finance Director DeJong, Planning Director Nielsen, Director of Public Works Brown,
and City Engineer Hornby
Absent: None
B. Review Agenda
Administrator Joynes stated the intent is to generate a work plan from the discussions today that will help
guide efforts over the next 12 months. He then stated that Council had been provided with a meeting
packet containing supporting material for the discussions today and a copy of his PowerPoint
presentation. Director DeJong had also provided Council will Financial Management Plans for the City’s
various financial funds. He clarified that plan is to have a high level discussion of the various issues. He
also clarified that he does not find value in looking at financial things 20 years out; five years is more
realistic. He stated because the City’s Planning Consultant John Shardlow will not be here until around
12:30 P.M. some of the independent agenda items will be discussed first. Someone from his office should
arrive around 11:30 A.M. to start the preparatory discussions about the redevelopment planning process
for the Minnetonka Country Club (MCC) site.
2. 2014 Work Program
Administrator Joynes highlighted the various items on the 2014 Work Plan that are still in progress. The
items on the Plan were issues that were raised during the February 8, 2014, Council and staff retreat. Most
of the items labeled as in progress are items were changed in some way, added or postponed.
3. Review of City Finances
Director DeJong highlighted the Financial Management Plan (FMP) Summary for the City’s various
funds which reflected the estimated cash balance at the end of 2015 (based on the adopted 2015 budgets),
the end of 2024 (absent any changes to the document) and the dollar change.
The financing plan for trail construction includes the use of Minnesota State Aid (MSA) street
reimbursement funds. The City receives about $200,000 a year in MSA funds. Some of the trail
construction costs qualify for MSA reimbursement because the trails/sidewalks are located along side of
roadways classified as MSA roads. Smithtown Road is classified as a MSA roadway from the City border
to its intersection with County Road 19. MSA funds were used to fund a portion of the construction cost
for the Smithtown Road west sidewalk and the plan is to pay for the eligible costs for the east extension
sidewalk with MSA funds also. The intent is to collect as much MSA reimbursement as possible. The
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Thursday, January 29, 2015
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Trail Construction Fund is the only fund that shows a significant deficit at the end of 2015 and that is
because of timing.
For the City to be able to reclassify Strawberry Lane to a MSA roadway, Church Road from Highway 7
to West 62nd Street and the south half of West 62nd Street would have to be designated MSA by the City
of Chanhassen and Shorewood could reclassify the north half of West 62nd Street and Strawberry Lane as
MSA. That could open up additional MSA funds for the City. Engineer Hornby clarified that Shorewood
is short on mileage to do that now but it does have some options to make the mileage available.
The tax supported funds include the Southshore Community Center Fund, the Park Improvement Fund,
the Equipment Replacement Fund, the Street Maintenance Fund, the MSA Street Reconstruction Fund,
the Trail Construction Fund, and the Community Infrastructure Fund. Over the 10-year FMP the funds are
going into a deficit stated in a major way. At the end of 2024 the balance in the General Fund will be far
below the General Fund Balance Policy guideline of 55 – 60 percent of the City’s annual expenditures
and transfers if the City does not identify and utilize other funding sources.
The enterprise funds include the Water Fund, the Sewer Fund, the Recycling Fund and the Stormwater
Management Fund. The cash balances in the Water and Sewer Funds are substantial. The Stormwater
Management Fund basically breaks even. A number of loans into this Fund from the Sewer Fund are
anticipated to help fund projects included in the Stormwater Management Capital Improvement Program
(CIP). The balance in the Recycling Fund is projected to increase substantially because of changes to the
recycling contract. The recycling fees could be reduced or money could be transferred out of the
Recycling Fund to other funds. Councilmember Siakel noted that service could also be expanded.
Administrator Joynes stated for the tax supported funds Shorewood has previously transferred General
Fund tax dollars into other funds to support other activities. Most cities fund street reconstruction,
equipment purchases and possibly trail construction using various financing tools (e.g., bonding). Either
the current Council or a future council will have to make a decision about using other available funding
tools. If not, the General Fund property tax levy will have to be increased significantly to support those
types of activities. He clarified that using other financing tools is not a bad thing to do so Council should
give it some thought.
Councilmember Sundberg stated if the MCC property were to be developed as proposed she asked what
impact that would have on the City’s tax situation. Administrator Joynes stated if nothing else was
changed the City’s tax levy would be spread out over more properties. Joynes explained that if the City
created a tax increment financing (TIF) district for the MCC project area and surrounding area the City
would capture the value of the increased taxes and use them to pay for any infrastructure improvements
around the project area. The TIF district could be larger than just the project area. Councilmember
Woodruff stated he thought the additional tax dollars from that redevelopment would be about a couple
hundred thousand dollars annually without increasing the tax levy.
Director DeJong explained that Council sets the tax levy; not the tax rate. The only way for the City to
increase the amount of taxes it receives from City property owners is to increase the tax levy. If the City
established a TIF district, the City can capture the increases in the City property tax at the City’s rate and
it can capture the increased value for the school district, the county and other agencies with taxing
authority. The City would have a significant amount of money to use to fund infrastructure improvements
around the area. Of the residential property tax about 30 percent of that goes to the City. If the MCC were
to be redeveloped as 100 single-family residential properties with an average property value of $1 million
that would generate about $200,000 in additional taxes for the City, or about $750,000 in total in the tax
increment value. The increment would be the difference between what the MCC pays in City property
taxes now and the tax value for the new development.
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Thursday, January 29, 2015
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Administrator Joynes clarified that the taxing agencies would continue to get their value as if it were still
the MCC property. The City would get the added value from the new houses for a period of time.
Attorney Keane clarified the City would get that added value for a maximum of eight years.
In response to a question from Councilmember Woodruff, Director DeJong explained that the Smithtown
Road east sidewalk extension is scheduled for 2015 and the Galpin Lake Road trail segment is scheduled
for 2016. It is his understanding that Council wanted the Galpin segment to remain in the Trail
Construction FMP with the financing for that to be discussed during this retreat. The financing of it shows
as a transfer in from the Sewer Fund but it is actually Council to-be-determined financing. If that $1.3
million were to be included in the Sewer Fund FMP the 2024 cash balance would be about $200,000.
Administrator Joynes stated if Council decides to move forward with a TIF plan for the MCC area that
would help fund the Smithtown Road east sidewalk extension and then the funds planned for that use
could be freed up for constructing the Galpin trail segment or some other segment.
Administrator Joynes noted that the funds in the Community Infrastructure Fund are primarily from the
proceeds from the sale of the City’s liquor operations a number of years back. Director DeJong explained
that about $50,000 of the approximate $172,000 balance will be used to pay the cost of the renewable
energy study in 2015. Consideration should be given to closing the fund out in 2016 or 2017 with the
funds being transferred into the Trail Construction Fund. He also thought the approximate $120,000
balance in the MSA Street Construction Fund will be transferred into the Trail Construction Fund as well.
Director DeJong explained that the $287,000 in proceeds from the sale of the City-owned house
ultimately ended up in the Park Improvement Fund. That and the estimated $500,000 in park dedication
fees from the MCC redevelopment project are enough to fund the first phase of the Badger Park
improvements. The cost for the second phase is over $800,000. That results in a Fund deficit of well over
about $429,000 in 2015 and then well over $500,000 each year through 2024. He noted that there is some
difficulty in using TIF monies for recreational items.
Councilmember Siakel stated the City could use TIF monies to construct sidewalks/trails and then use
other City funds to possibly relocate Badger Park.
Administrator Joynes noted that under the PUD process for the MCC property everything adjacent to that
area is negotiable with that developer.
Administrator Joynes displayed graphics depicting the level of expenditures and fund balance of the
various funds based on their 10-year FMPs and highlighted what to take from them. The more noteworthy
comments are as follows for each of the funds.
Recycling Fund
The balance in the Recycling Fund is projected to increase substantially because of changes to the
recycling contract that reduced the City’s cost.
The recycling fees could be reduced, money could be transferred out of the Recycling Fund to
other funds or service could be expanded.
The FMP does not reflect any increase in costs over the 10-year period.
Water Fund
This is the healthiest fund. The cash balance is well in excess of what the City needs to operate.
This Fund could loan money to other funds.
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The expenditures are significantly higher in 2015 because of the potential watermain extension as
part of the Star Lane and Star Circle roadway reconstruction project and because of the
rehabilitation of a water tower for $450,000.
The revenues from the assessments for the watermain extension are not built into the FMP. The
watermain extension should basically be revenue neutral. The amount of assessment revenue will
begin in 2016 and occur over a period of 10 years.
Siakel suggested Council consider a policy that stipulates when a roadway is reconstructed and
watermain is not there that watermain will be extended. And, to set a per property assessment
threshold that when exceeded the amount over the threshold is paid for out of the Water Fund.
Woodruff thought it prudent for Council to also talk about how to bring in additional revenues
into this Fund.
If a residential property is served by well water and the well is working okay most people don’t
want to pay the cost to convert to municipal water (including the assessment cost of extending the
watermain).
Joynes noted the issue of diminishing shallow aquifers is going to spread throughout the
metropolitan area and state. It is questionable if the State and the Minnesota Department of
Natural Resources (DNR) are going to allow residential property owners to draw from those
fairly shallow aquifers. It is likely that the DNR will eventually ban private wells where
municipal water is available.
Sundberg stated because there will eventually be a public use issue she can support Council
making a decision to extend watermain, where possible, when a roadway is reconstructed.
Zerby noted that during his tenures on Councils, Councils have cautiously encouraged property
owners to connect to municipal water. He clarified that he would like more property owners to
connect to City-water and stated Council and staff need to do a better job of selling it. He noted
there is watermain under Smithtown Road yet very few properties are connected to it.
Hornby explained for the roadway projects in the Valleywood, Wedgewood and Sunnyvale areas
there was nothing to connect watermain to had it been extended because Meadowview Road and
Valleywood Lane were reconstructed without extending watermain. He stated some cities require
people to connect to municipal water when available within a certain amount of time.
Siakel asked if it would be possible to require people to connect to City-water when they sell their
property. She stated she thought there were small steps the City could take to move forward with
watermain extension and hookups to the City’s water system. She noted that it is Council’s job to
be good stewards for future residents of Shorewood as well.
Labadie stated that when she was running for Council the number one question she was asked is
if she would support making people connect to City water when available.
About one-half of the residential properties in Shorewood are connected to City-water. And, there
are about 300 properties where City-water is available but owners have chosen not to connect to
it.
There was Council consensus to talk about City-water in a separate work session along with the
various other funds that need funding over the next 3 – 4 years.
General Fund
The balance in the General Fund will drop slightly below the General Fund Balance Policy
minimum guideline of 55 percent of the City’s annual expenditures and transfers in 2018 and
remain there through 2024.
Funds from the General Fund have been used to help reduce the amount of the tax levy for the
last several years.
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The General Fund budget is conservative on revenues and liberal on expenditures from a
budgeting perspective. That revenue / expense gap helps reduce the need to use General Fund
balance to balance the budget. That can change from year to year based on what is going on.
The balance starts to go up in 2023 because the bonded debt for the public safety facilities will be
paid off. Currently about $500,000 is being spent on that. Some of that money will be needed for
capital repairs to the facilities and for future funding of repairs. Some of that funding should be
available for other purposes.
Budget surpluses are not factored into the General Fund FMP and therefore the balance will
likely be closer to the Policy Guideline.
There is excess balance in the Fund based on the Policy guidelines that could be used for other
purposes.
Equipment Replacement Fund
The Fund’s balance varies from year because equipment replacement needs vary. There is no
need to worry about this Fund.
Transfers into this Fund have been increased the last two years.
Sewer Fund
Sewer rate increases were implemented in 2014 based on the results of a rate study the City asked
Ehlers to conduct. The Fund’s balance is now healthy because of that.
The FMP does not reflect additional revenues that will be generated by the MCC property
development.
The FMP does not reflect increases in the Metropolitan Council Environmental Services (MCES)
service charges.
The FMP does not include an expense for possible MCES surcharges imposed for exceeding
inflow and infiltration (I&I) rates into ultimately the MCES’ sewer system. The City can get a
credit for the surcharge by making improvements to the City’s sewer system to reduce that I&I
into the system. Every year the Public Works Department televises certain segments of the City’s
sewer line and makes the needed repairs to reduce I&I flow.
Southshore Community Center Fund
There are ongoing deficits in the fund for a variety of reasons. That will continue due to the
current structure for operating and maintaining the Southshore Community Center (SSCC).
Some of the deficit is the effect of compounding deficits.
The deficits are small and the City can deal with them.
Building capital needs are not included in the FMP. The projects are included in the Equipment
Replacement Fund FMP.
The other four cities that co-own the SSCC structure with Shorewood have indicated they do not
want to contribute toward the operation and maintenance of the SSCC and they want to recoup
some of the original construction costs they paid.
Stormwater Management Fund
The balance in this Fund is not very good.
It is likely that in the next year or two the State will implement new MS4 (Municipal Separate
Storm Sewer System) requirements for stormwater management and treatment. There are lots of
stormwater ponds and many issues that have to be addressed. There may be requirements to
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Thursday, January 29, 2015
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dredge toxic materials out of the ponds. At a minimum, ponds will have to be monitored and
survey work will have to be done. Those costs are not reflected in the FMP because no one knows
what will be required yet.
It is likely the City’s stormwater rates will have to be increased.
Keane questioned if it would be prudent to increase the rate gradually starting soon rather than
confronting taxpayers with a large increase a few years down the road. Siakel agreed the rate
should be reassessed. Woodruff concurred.
Some cities have a per-residential property stormwater charge and have a separate rate for a
commercial property. Other cities base rates on the impervious surface square footage.
Shorewood has three residential rates – one for lots less than 10,000 square feet in size; one for
10,000 – 50,000 square foot properties; and, one for properties greater than 50,000 square feet in
size. The rate varies from $13 to $19 per quarter.
The big expense increase in 2019 is for the stormwater work planned for along Strawberry Lane
when it is reconstructed. There are other expenses reflected in the FMP for stormwater
improvements made in conjunction with roadway reconstruction projects that may or may not be
done.
There will be two great pressures on this Fund. One is funding to implement MS4 requirements
and disposing of contaminated soils that get dredged out of ponds. The other is the need for a
trunk stormwater system on the west end of the City.
There is a requirement to keep the rainwater on a property or in an area for a one-inch event. And,
for stormwater that flows off the area the total maximum daily load (TMDL) standard must be
complied with.
There is a need for larger stormwater pipes and a need to keep some of the water on the site.
The City sits on the clay basin of the old Lake Minnetonka and there is nowhere for the water to
go.
Park Improvement Fund
This Fund has major cash balance issues starting in 2017/2018 and that remains the case through
2024 based on the projects identified in the Park CIP. 2017 – 2019 are also cash flow problematic
for the Trail Construction Fund and the Street Maintenance Fund.
There are funding sources and tools that could be used to fund some of the projects in the first
few years. But, after that Council needs to identify other revenue sources for this Fund should it
want to move forward with other projects.
Changing the timing of projects and/or the selection of projects can help a little with addressing
the cash flow issue but it cannot be resolved without additional funding.
The only major parks related capital project scheduled is the Badger Park improvements project.
And, there currently is not enough cash in the Fund to do all of it.
Siakel recommended that the City of Chanhassen put some of the park dedication fees it is
collecting for the 31 houses being constructed as part of the Boulder Cove development toward
Cathcart Park (the Park is located in Chanhassen but owned by Shorewood). Nielsen explained
that Chanhassen’s position is residents in various cities, including Shorewood, use parks in other
nearby cities without paying another city for that use. Per an old agreement between Shorewood
and Chanhassen, Chanhassen is supposed to mow the grass in Cathcart Park but that is not
happening. There is a joint meeting of the Shorewood Park Commission and the Chanhassen Park
Commission scheduled for April 2015 to talk about having Chanhassen help out with things at
Cathcart Park. Siakel suggested the two City Councils meet or the two Mayors meet and talk
about funding for Cathcart Park first. Zerby noted he and the former Mayor of Chanhassen had
spoken about this. Sundberg thought the Boulder Cove development is a different situation.
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Trail Construction Fund
The anticipated capital expenditures in the next few years are for the Smithtown Road east
sidewalk extension, the Galpin Lake Road trail segment and the Excelsior Boulevard trail
segment. The Strawberry Lane trail segment is scheduled for 2019.
A funding source for some of those projects needs to be determined if Council intends to move
forward with all of those projects.
The cost to construct the Strawberry Lane trail segment will increase substantially if it is not done
in conjunction with the reconstruction of Strawberry Lane.
City staff members do not generally offer to talk about spending money outside of the City they
work for. It is the elected officials that have to make a decision to participate.
Shorewood contributed $10,000 toward the construction of the off leash dog park in Lake
Minnewashta Regional Park in the City of Chanhassen.
Street Maintenance Fund
Starting in 2018/2019 the balance in the Fund starts to be inadequate to fund the necessary
roadway maintenance projects.
The conditions of the roadways are evaluated using the PASER (Pavement Surface Evaluation
and Rating) System and then scheduled for the needed maintenance based in part on the rating.
Roadway maintenance is funded by transfers from the General Fund.
Expenses go up significantly in 2019 and Council needs to decide how to fund those expenses
(e.g., bonding, assessments, higher taxes, etc.)
At the urging of the League of Minnesota Cities (LMC) and the Association of Metropolitan
Municipalities (AMM) the State legislature had considered a tool that would allow municipalities
to charge fees for roadway maintenance. That legislation has not passed yet.
The LMC has indicated it will not consider supporting a bonding bill that does not include some
type of funding for local roadways.
Hornby noted that almost none of the gas tax trickles down to the local level. The Public Works
Association and the Engineers Association are working with the LMC to try and get more of that
back to local governments. Zerby stated some does; an example is funding for the St. Albans Bay
Bridge. Brown noted that the MSA funding is generated by tax dollars collected at the pump.
Siakel noted there is crumbling infrastructure throughout the State that needs to be fixed. She also
noted that many of the City’s roadways have a PASER rating of 8, 9 or 10 which means they are
in good shape. She asked if the City’s 20-Year Street Maintenance Plan (SMP) accurately reflects
when roadways need to be reconstructed. Brown explained with the current system the City
reconstructs roadways in the worst condition first while continuing to maintain roadways in
reasonable condition so they don’t deteriorate too fast. Woodruff noted the PMP has roadways
with a rating of 4 that won’t be improved for 10 years and suggested that they be scheduled for
reconstruction sooner. Brown explained that generally if a roadway has very poor soils there is
not a lot of maintenance done to them until they are reconstructed.
Woodruff noted that the many of the roadways on the Islands are not scheduled for a mill and
overlay until 2024. He suggested revisiting the SMP. Hornby explained some the roadways on the
Island are a little different because they do not have deep enough soils to do a normal
reconstruction.
Glen Road east improvements have been moved to 2021 which was the first year when there was
not more than $1 million in roadways improvements planned.
Summit Avenue is scheduled for a mill and overlay in 2015. That should be pushed out until
Summit Woods construction is done.
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Thursday, January 29, 2015
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A break was taken from 10:19 – 10:31 A.M.
4. Issues related to the Fire and Police Joint Powers Agreements
Administrator Joynes explained that once former South Lake Minnetonka Police Department (SLMPD)
Chief Litsey informed the SLMPD Coordinating Committee that he was going to retire after 33 years
with the SLMPD, the Committee started discussions about succession planning. The discussion morphed
into one about the structure of the Department. The SLMPD joint powers organization is comprised of
four cities (Excelsior, Greenwood, Shorewood and Tonka Bay) and the Excelsior Fire District (EFD) joint
powers organization is comprised of five cities (Deephaven is the additional city). Deephaven has its own
police department. The Coordinating Committee and the EFD Governing Board are considered separate
legal entities under State law. Both are governed by a set of rules and both have legal authority to make
decisions for the Cities. The Mayors of the four Cities comprise the Committee. A member of each
member City Council is appointed to the Board.
Mayor Zerby explained that on May 21, 2014, the Coordinating Committee and the member City
Administrators/Manager met to talk about the SLMPD organization. Deephaven Mayor Skrede also came
so there was some discussion about the EFD. There was some discussion about the merits of combining
police and fire into one joint powers organization. Skrede had interest in coming up with an arrangement
so Deephaven could purchase EFD Station 2. Because of Litsey’s departure there is an opportunity to
view the public safety organizations from a collective perspective. There was discussion about having a
public safety director with chiefs or assistant chiefs below that position. The Chiefs of both organizations
have additional responsibilities (e.g., financial) because of the joint powers organization structure. They
also have to deal with the politics of working with multiple City Councils. The Committee did decide to
hire an interim chief of police to help the member cities work through organizational and operational
issues, staffing and missions.
Administrator Joynes explained that the funding formulas for the two organizations are different to some
extent. Shorewood is the primary funding source for both. For 2015 it is responsible for 38.56 percent for
the EFD and 48.49 percent for the SLMPD.
Mayor Zerby felt the funding formula does not take into account commercial development, the number of
liquor licenses and so forth. He felt that Excelsior is over consuming policing services; for example, they
recently declared a snow emergency and required police officers to ticket cars and remain present until
the cars were towed away. Excelsior has issued 14 liquor licenses. When he moved to Shorewood 21
years ago there were very few. He believes the money that Excelsior receives from liquor licenses should
mostly go towards policing services. The Excelsior – South Lake Chamber of Commerce, the school
district and other organizations are driving more events. Excelsior is an entertainment hub which he
enjoys. He does not think Shorewood is getting the level of services it pays for. Based on his
observations, it appears the patrol officers are mainly focused on DWI enforcement. People may get
arrested outside of Excelsior but their location of consumption is often in Excelsior. He noted Shorewood
residents want more neighborhood traffic enforcement.
Zerby stated that he would like to challenge the funding formula. With the implementation of a new
records management system over a year ago the SLMPD has the ability to generate new reports that
shows the time police officers are spending in the member cities. For 2014 Shorewood consumed the
amount of resources (40 percent) that it paid for but for the previous three years it was quite a bit less
(about 30 percent).
Administrator Joynes stated that there is the fundamental issue that Greenwood and Tonka Bay combined
contribute about 23 – 24 percent of the funding for SLMPD operations yet they have one-half of the
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Page 9 of 22
voting power in the joint powers organization. Former Mayor Woody Love had previously expressed that
if Shorewood’s funding share gets close to 50 percent than he wanted Shorewood to have 50 percent of
the voting power. Unfortunately, it takes three of the four member cities to change the funding formula in
the joint powers agreement (JPA) and two of them are paying the least amount of money.
Councilmember Woodruff stated during his tenure on Council he has always questioned why Shorewood
only has one-fourth of the voting power when it pays one-half of the cost for police operations. He noted
that when the funding formula was last arbitrated it was very contentious; Administrator Joynes was one
of the mediators. He stated when the City of Mound decided to contract with the City of Orono for
policing services the level of police presence and traffic enforcement has increased over what the Mound
Police Department provided. He questioned if the SLMPD could be absorbed by the Minnetonka Police
Department and then have Minnetonka provide police services to the SLMPD member cities through
contract which would specify service level expectations. The current facility could be a satellite location.
Councilmember Sundberg stated she is somewhat intrigued by the idea and noted that she lived in
Minnetonka for many years and was pleased with the level of police and fire services provided.
Councilmember Siakel stated it is about the level of service.
Attorney Keane asked if there is a revenue incentive to focus on Highway 7 DWI enforcement as opposed
to having squad cars in the residential neighborhoods. Director DeJong explained there are about six
forfeitures each year and most of the revenue from that is eaten up by prosecutor costs.
Councilmember Siakel stated it is very difficult to have a police enforce speed limits on Country Club
Road during peak hours.
Mayor Zerby stated Excelsior argues that it is the South Lake residents that get intoxicated in Excelsior
and therefore the South Lake cities should all help pay for that enforcement. His perspective is Excelsior
invites residents to come into the City by having all of the establishments. He then stated he does not
understand why the Lake Minnetonka Conservation District (LMCD) receives the revenues from liquor
licenses for the cruise ships that operate out of Excelsior.
Administrator Joynes reviewed the five issues the SLMPD Interim Police Chief will assess over the next
six months.
Does spending match priorities?
Does the SLMPD have the right staffing and structure? Would a public safety director be more
appropriate? Under the former Chief Litsey the SLMPD did all of its own business functions
(e.g., budgeting, payroll, accounts payable). In some joint powers organizations those functions
are done by one of the member cities though a contract. Money may not be saved by doing that
but time would be and that could possibly equate to another officer.
Determine which policies and procedures need to be updated and update them.
Are there police/fire efficiencies?
Develop a profile of the qualities of what the member cities want in the next chief and assist the
member cities with the search process.
Councilmember Woodruff noted that the Islands receive contract fire service from Mound and police
services are provided by the SLMPD. He explained that it takes a squad car 15 – 20 minutes to travel to
the Islands from the police station with lights and sirens on. Through mutual aid a Mound or Minnetrista
patrol officer will arrive first and an SLMPD officer will arrive later. He questioned if it is appropriate to
provide police services to the Islands through the SLMPD. Councilmember Siakel asked if he was
suggesting the City contract with Mound or Minnetrista or Orono for police services on the Islands.
Woodruff stated that it is worth discussion.
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Administrator Joynes encouraged each member of Council to think about issues they would like to
discuss with the SLMPD Interim Chief when they have a one-on-one meeting with him. The Chief will
also talk with members of the other SLMPD member City Councils, representatives from the Fire
Department, some community groups and others. A compilation of what he learns will then be presented
to the Coordinating Committee.
Councilmember Siakel asked what options there are for changing the JPA. Attorney Keane stated when
the JPA was renewed the last time the discussion got bogged down about the funding formula. Siakel
asked when it comes up for renewal next. Keane stated he will research that.
Attorney Keane asked if consideration has been given to resource reallocation given three-fourths or more
of fire calls are medical and usually the first responders to those calls are patrol officers and they are not
trained emergency medical technicians (EMTs). Mayor Zerby stated there has been discussion about that
and the trend is to put more of that on firefighters and less on police. New SLMPD officers will only
receive first responder training and those already trained as an EMT can either maintain that level or drop
to the first responder level.
Mayor Zerby noted that in the past the SLMPD chief has been the Emergency Management Director and
that there has been discussion about shifting that responsibility over to the EFD Chief.
Councilmember Siakel noted that the EFD Board and the EFD Alternate Staffing Task Force are meeting
in work session on February 25 to discuss staffing. She also noted at this time the EFD has no control
over how many firefighters respond to a medical call. Eleven cities had people respond to the fire on
Casco Point in December; the house burned to the ground. Mayor Zerby stated that Chief Gerber stated
there is no way to control the number of responders when a department has paid-on-call (POC)
(volunteer) firefighters. Councilmember Labadie noted that for EFD firefighters to earn pension credits
they have to respond to a certain number of calls each half of the year. Administrator Joynes stated that
for a POC department the intent is to try and get firefighters to respond; it is their hobby. The less they are
incented to respond the less reason they have to continue with the hobby.
Mayor Zerby stated the EFD and SLMPD respond to all calls. The Deephaven Police Department does
not respond to some calls. He related that EFD Chief Gerber has stated that sometimes the codes from
Hennepin County Dispatch are incorrect so the fire department prefers to error on the side of caution for
medical calls.
Councilmember Woodruff brought up the idea of establishing duty crews for the EFD. Councilmember
Siakel noted that the EFD implemented a trial Duty Crew five-month long program in 2013.
Councilmember Siakel stated things are not going be perfect with a volunteer fire department. Paying for
extra people to respond is just what happens. She then stated it would cost the member cities a lot more
money to have full-time staff. That should be revisited again to remind people of what it could cost.
Director DeJong noted that he worked for a city that had a full-time fire department. He stated the cost for
extra volunteer firefighters showing up for a call is less than the cost of one full-time firefighter.
5. Staffing and Succession Planning
Administrator Joynes explained a survey of City staff was done to determine who is retirement eligible in
the next few years and for those who are they were asked if they had a general idea of when they would
retire. Responses indicate that a receptionist/administrative assistant, the City Clerk, the Planning
Director, the Planning Assistant, the Building Official, and the City Administrator all plan to retire or
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Page 11 of 22
reduce the hours they work in two years and possibly less. A lead equipment operator plans to retire in
about three years. He thought each of those individuals would be open to talking about phasing out of
their employment.
The Public Employee Retirement Association (PERA) changed its rules recently because of the issue of
the number of municipal employees retiring. It is allowing people to work in some part-time capacity with
modified benefits. About 40 percent of Hennepin County’s 12,000 employees are eligible for retirement
in the next two to three years. The City is going to be competing for replacement employees.
Joynes recommended the City’s Personnel Committee talk to the upcoming retirees about what they want
to do for the next two years. He stated there is an employee or two who has leadership potential that the
City needs to create training opportunities for. Over the next two years that is a viable way to bring
someone up to speed to help Director Brown with administrative things in Public Works.
Mayor Zerby asked how much influence there can be on the retirement dates. Is there any way to lock
into dates? Administrator Joynes explained an employee cannot be asked to retire on a certain date. But, if
the City were to offer a part-time schedule that can be time specific and the City could essentially create a
contract with that employee. Zerby stated he thought there is a need for a top-down look at the staffing
situation. For example, with the last piece of the City being built out he asked if there is a need for a
planning assistant and full-time building inspector.
Councilmember Siakel stated she wants to take a broader look at staffing. She suggested the City hire a
third party to do an assessment of staffing needs. Doing the assessment task can be to some extent
emotional and having a third party doing takes emotion out of the picture. Administrator Joynes stated he
did not think it would be that emotional and thought that employees would want to negotiate a transition
plan.
Councilmember Woodruff stated there needs to be some mutual agreement on the departure date.
There was consensus to start discussions at the personnel committee level.
6. MS4 (Municipal Separate Storm Sewer System) and Forestry Issues and Staffing
Administrator Joynes noted that over the last year Council and staff have been discussing hiring a person
that would have forestry, MS4 regulations and Public Works administrative help responsibilities. It is up
to Council if it wants to move forward with the position. He stated because the City has a number of
financial issues spending the money for this may be more difficult to do. If Council wants the City to
concentrate on forestry issues the City could contract those out. A big part of the job was proposed to
handle resident contact and administrative contact for Public Works. That will not be accomplished unless
a person is hired to do that.
Councilmember Sundberg suggested this also be discussed by the Personnel Committee being it is going
to take a broader look at staffing.
Engineer Hornby explained the City is in its new MS4 General Permit now. There are things that the City
has to do this year. If the City does not hire someone or contract with someone the burden of doing
inspections and documentation needed to satisfy the Permit requirements falls on Public Works.
Therefore, there is some urgency in finding someone to do the next phase of the new permit. The first
year is for the City to get up to speed and write the new permit. He has a proposal to bring to Council for
that; but, there is still a need for administrative help unless the City hires a person with expertise in this
area. Councilmember Siakel stated she assumes WSB has people with the necessary expertise; the City
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could contract for that expertise. Hornby stated that his colleague has staff that has the expertise to do the
necessary work for 2015. They can do the inspections at a lower hourly rate. Hornby stated a person he
has worked with in the past at one city is spending 45 percent of his time dealing MS4 activities. That
person also works cooperatively with the conservation district in his county and the watershed districts in
that community to try and share some of the inspections. When that individual first started in that position
they spent 60 percent of their time on MS4 related tasks.
Mayor Zerby stated the City contracts with WSB for two days of engineering services from Engineer
Hornby. He asked if the City had a full-time engineer if it would be able to do the MS4 tasks instead of
hiring another person. Hornby stated if that person had that specialty.
Councilmember Woodruff stated an engineer’s skill set is not all encompassing. Engineer Hornby and
Director Brown, both engineers, have different skill sets. The City needs to have someone focus on MS4
needs. Ultimately, it will cost the city more to buy the services for MS4 tasks than it is to have the
services internal. He noted that he has not seen what he would deem a good work plan that has specific
deliverables and milestones for the next 12 months for the new position.
Director Brown noted that standards are changing for drinking water and waste water. He explained that a
person could spend 20 percent of their time keeping up on all of the MS4 standards. Many communities
are scrambling because of what has to be done to understand the new requirements from the Minnesota
Pollution Control Agency (MPCA) and the Environmental Protection Agency (EPA) and then put
standard operating procedures in place to deal with them that make sense to people in the field. Every
time the City goes through a new permit process the requirements change.
Councilmember Woodruff stated the sanctions for not adhering to the requirements are increasing
dramatically annually. Engineer Hornby stated the MPCA does audit cities and the City would want that
audit to go well. The MPCA will point out shortcomings.
Engineer Hornby stated from his perspective if the City hires a full-time engineer for all of its needs that
individual will spend about 60 percent of their time or more initially dealing with MS4 related items. He
has seen other cities hire someone with knowledge of the natural sciences to handle the MS4 needs.
Sometimes the person is part-time and sometimes they have other duties assigned to them. He noted that
because he is only here two days a week he has to set his priorities. He does not have enough time to take
on the task of MS4 documentation. He stated a specialist would be much more efficient and that and
WSB has individuals on staff that are specialists in that area. They also exist in the marketplace.
Councilmember Labadie asked if the MS4 requirements are ongoing. Engineer Hornby explained layers
and then more layers will continue to be added to the MS4 program and the State continues to expand its
TMDL (total maximum daily load) requirements. The main thing the City has for TMDL now is for Lake
Virginia. There is discussion about individual bays in Lake Minnetonka being added. The City has an
annual phosphorous reduction goal from the Minnehaha Creek Watershed District (MCWD) that it has to
meet.
Engineer Hornby stated the City is going to make a commitment to get something MS4 related done in
2015. The goal would be to have the pond inventory, outlets and pollution basins identified and have a
plan and policy in place for the next number of years. Then the City will implement the plan and policy
over the next four years.
Councilmember Siakel stated she does not think that the responsibilities of a new hire have been fully
vetted out. Therefore, she suggests contracting for MS4 related services in 2015 and then do an analysis
of staffing needs and hire, if needed, a position for 2016.
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Councilmember Woodruff noted that in the documentation Council has received from staff about the
proposed position indicated MS4 tasks were only about 25 percent of the need, 50 percent of the need was
forestry related and the remaining 25 percent was for Public Works administrative needs. He reiterated his
desire to have more of a work plan and less of a job description.
Councilmember Sundberg asked how quickly Council needs to make a decision. If it needs to be made in
the next few weeks then she agreed with Councilmember Siakel’s recommendation to hire a consultant
for 2015.
Engineer Hornby explained now is a good time to measure the depth of ponds; it is easier to do standing
on the ice then sitting in a boat or canoe. The City has engaged in the swamp program. An analysis is
being done of all of the ponds and wetlands in the City’s stormwater management system. An effort is
being made to prioritize those that should be on the top of the list for increasing water quality. He
recommended the City hire someone sooner versus later and he encouraged Council to make a decision in
the first quarter of this year about which direction it wants to go. He stated he will have his staff prepare a
task list. WSB likely has the information because it was put together for the MS4 Permit.
Councilmember Woodruff suggested WSB provide a list of what needs to be done between now and the
end of April and then Council can decide to hire a consultant to do that. Council can then decide if it
wants to hire an employee.
Councilmember Siakel reiterated her recommendation is to hire a consultant for 2015 as a short term
solution. Councilmember Sundberg concurred.
Councilmember Woodruff commented that no one is requiring the City to do any forestry work. Mayor
Zerby stated he would like the ash borer inventory to be completed.
Administrator Joynes noted that staff will prepare a proposal for contract services for MS4 related work
for 2015 for consideration during Council’s next meeting or two.
A break was taken for lunch from 11:38 – 11:56A.M.
Discussion moved to Item 9 Minnetonka Country Club
7. Road Reconstruction Financing Options
Discussion of this item was postponed.
8. Southshore Center
Just before the retreat was adjourned Councilmember Siakel asked what the next steps are for the
Southshore Center.
Attorney Keane stated the appraisal amount for the Center should be done by the end of February.
Mayor Zerby stated that once that is available he could again meet with the other four Mayors of the
Cities that co-own the Center with Shorewood. Once the appraisal amount is known Council can meet in
executive session and provide him with direction.
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9. Minnetonka Country Club
This was discussed after Item 6 on the agenda.
Fay Simer, with Stantec Consulting Services, Inc. (the firm chosen to assist with the Minnetonka Country
Club (MCC) redevelopment planning process) introduced herself and noted she would start the
preliminary work before John Shardlow, a principal with the firm, arrives.
Ms. Simer explained that Stantec’s proposal for scope of services included conducting a series of
workshops to help people focus on specific issues (e.g., traffic, stormwater management, land use)
associated with the redevelopment of the MCC property. Their proposal recommends establishing a
Planning Advisory Committee (PAC) that would talk about the issues and ultimately make
recommendations to Council.
Ms. Simer noted that one of the questions they would like answered is who is going to serve on the PAC.
They also have a series of questions related to the scope of the planning effort.
Ms. Simer asked what people’s thoughts are about who should serve on the PAC.
Councilmember Sundberg stated she would like the members of the Council involved throughout the
process to ensure the PAC and Council are on the same track. She then stated she would like some of the
senior population involved in this process.
Councilmember Siakel suggested having one member from the Planning Commission and one from the
Park Commission and a couple of former mayors of Shorewood because they have some working
knowledge of the area and the City.
Ms. Simer stated that she and Mr. Shardlow had discussed having the developer be involved in the
process. She then stated from their perspective a benefit of not having Council part of the PAC is it allows
the developer to participate in PAC conversations. Administrator Joynes stated that having that separation
provides some distance so Council is not put on the spot to make decisions earlier than needed in public
view. Joynes noted that may not be a problem if the City and developer relationship does not become
adversarial.
Councilmember Woodruff expressed his reluctance to have a majority of the Council involved in the PAC
in part because that majority could make a decision in a meeting. Also, he does not want Council to usurp
the Planning Commission’s responsibilities. He stated having one or two Planning Commissioners and
one or two Park Commissioners on the PAC is appropriate, as well as some other residents.
Councilmember Siakel noted she thought one Park Commissioner would be adequate. Woodruff stated he
thought the members from the Commissions may live in the MCC area. He noted that he does not want
past mayors involved. He questioned if it may be appropriate to have a representative from the
commercial area at intersection of Smithtown Road and County Road 19.
Mayor Zerby asked Ms. Simer to describe the PAC’s role and the expected outcome from it. Ms. Simer
stated the PAC’s role would be to participate in workshops and to become informed and educated about
this redevelopment and to share that information with other residents. The goal is to work with the
Committee to create an informed body of residents who can think holistically about the issues having
been provided with real information. The PAC will ultimately be asked to advise Council. Ms. Simer
noted that it is Stantec’s responsibility to ensure Council receives the same information as the PAC and
the summary notes from the workshops. Zerby asked, hypothetically, why not have just a citizens’
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advisory committee that anyone can be part of. Ms. Simer stated the people who would come likely
would have a preconceived disagreement with the project or process.
Councilmember Sundberg stated she would like to hear the dialogue of the various members of the PAC
because that cannot ever be captured in its entirety. But, if more than two members of Council attended
then that would be in violation of the open meeting law. Attorney Keane clarified that three members of
Council could happen to bump into each other at a meeting and as long as they do not talk business they
would not violate the open meeting law. But, if there is a plan to have a quorum of Council in one place at
one time that meeting should be noticed subject to State Statute. Councilmember Woodruff stated if any
other members of Council sit in the back of a meeting and do not comment then it does not violate the
law. Keane concurred. Councilmember Siakel stated she could attend PAC meetings if there were two
members of Council on the Committee and comment from the perspective of a resident and that would
not be a violation of the law. Keane concurred. Keane stated a meeting would not have to be stopped
because a third Councilmember showed up as long as Council business was not discussed. Administrator
Joynes asked if one could come as a representative of the Shorewood Economic Development Authority
(EDA). Keane cautioned against doing that. Director Nielsen stated the workshop agenda could say there
may be more than two Councilmembers present; that covers the meeting notice requirement.
Ms. Simer stated she hears that there is interest in inviting others into this planning process and forming a
PAC. But, Council wants to make sure it receives the same materials and information as the PAC and gets
information about what was discussed during the workshops.
Councilmember Sundberg clarified she does not need to be a member of the PAC but she would like to
listen at workshops.
Councilmember Siakel suggested Council agree on a handful of people and invite them to participate on
the PAC. She encouraged Council to select participants that can keep the big picture in mind, make
recommendations for the good of the community, work well together, and are open minded. She stated
she does not think it would be inappropriate to vet people or to have Mayor Zerby invite them to
participate. Councilmember Woodruff stated that is a good idea and stated he agrees that polarizing
people should not be involved.
Councilmember Labadie stated there is a need for public resident involvement.
Director Nielsen stated Mr. Shardlow strongly recommended the PAC participants be committed to this
process.
Ms. Simer reiterated Stantec’s recommendation to invite the developer to the PAC workshops so the
developer can become just as informed and engaged in the process. Engineer Hornby stated that helps
dispel any rumors.
Ms. Simer asked Council to answer the following questions regarding the scope of the issues the PAC
should discuss.
1. Is the Council interested in exploring the possibility of any housing types other than single-family
detached units, either on the golf course property or in the vicinity? Council’s consensus was yes.
2. Does Council support the exploration of possible ways to leverage the value associated with the golf
course redevelopment to improve the quality and expedite the timing of redevelopment surrounding
the County Road 19 / Smithtown Road / Country Club Road Intersections? Council’s consensus was
yes.
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Whether or not the golf course redevelopment and the adjacent redevelopment is combined into one
over-arching redevelopment financing strategy, does the Council view the planning for the adjacent
redevelopment strategy as something that should be carefully thought through before signing off on
the final plans for the golf course redevelopment? Council’s consensus was yes.
3. Should the pros and cons of potential realignments of Country Club Road be explored? Council’s
consensus was yes.
4. Should the pluses and minuses of park dedication (in land) on the golf course be fully explored?
Should the potential sale and reuse of the existing park next to City Hall be explored? Council’s
consensus was yes to both.
Councilmember Woodruff asked if it is true that the City does not own Country Club Road. Director
Nielsen explained there is substandard right-of-way (ROW) along that roadway; there is anywhere from
50 feet to 33 feet. As land subdivides the City requires dedication of ROW. There are spots where the
paved surface strays out of the ROW. The ROW that is there is Shorewood’s. Engineer Hornby noted that
the City has a prescriptive right to the roadway where it lies and its use.
Mayor Zerby asked what the City can expect from this process that. Ms. Simer stated an engaged and
informed Committee that can serve as ambassadors in the community for this project. Zerby asked if the
City would be able to get, for example, land swaps or roadway realignments. Ms. Simer stated Mr.
Shardlow will speak to that when he arrives.
Administrator Joynes stated the meeting packet contains information on various financing tools. He then
stated based on his experience it will be prudent for Council to speak with financing consultants that deal
with development.
Mayor Zerby asked how much leverage the City has with the developer.
Attorney Keane reviewed Minnesota Law relating to developments. He encouraged people to be more
thoughtful with regard to the presentation of what the City’s requirements are in terms of community
objectives, the Comprehensive (Comp) Plan, mitigation of adverse consequences, and so forth. He noted
the City has great latitude with the Comp Plan modification and with land use zoning.
In response to a comment from Councilmember Woodruff, Attorney Keane stated conversations about
exchange of assets can be had.
Councilmember Siakel asked if the City could move Badger Park to the MCC property and then invite
someone else to develop senior housing on the Park site. Director Nielsen noted that Badger Park was
dedicated park land and any proceeds from that sale have to go into the Park System. He also noted that
Badger Park was built on swamp land; a filled wetland. The value of that land is not the same as dry, high
ground.
Administrator Joynes asked Attorney Keane if tax increment from the project could be used to correct the
soils in Badger Park. Attorney Keane responded if that was made part of the TIF district that would be
okay to do.
Councilmember Sundberg stated it is not just the monetary value of the land; it is also about the value
doing that could bring to the community by having age-specific housing there.
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Mr. Shardlow arrived at 12:45 P.M.
Councilmember Sundberg suggested the renewable energy study information be shared with the PAC and
vice versa.
Ms. Simer summarized the discussion for Mr. Shardlow. Council supports the idea of forming a PAC
comprised of citizens, representative(s) from the Planning and Park Commissions, business
representatives and others. Council would like to be kept abreast of what is going on with the PAC and
receive the same materials and information the PAC receives. Some also want to be able to attend PAC
meetings in a listening capacity. Councilmember Woodruff stated he thought there was agreement to have
two Councilmembers on the PAC. Councilmember Sundberg stated she thought that would be
appropriate.
Mr. Shardlow stated the PAC is an advisory/recommending body to Council. If members of Council are
in attendance at PAC meetings it will change the dynamics. He recommended Council let the process
work with the PAC and let it bring Council its recommendation. He noted that Council will be provided
with all of the information the PAC receives. He encouraged Council not to attend the meetings. He also
noted he thought the entire Planning Commission should be part of the PAC. The PAC is the Commission
augmented by other representatives of the City. The Commission already has the responsibility to make
recommendations on amendments to the Comp Plan and advise Council on zoning issues.
Councilmember Sundberg asked if the PAC meetings will be recorded. She noted that she wants to be
able to listen to the dialogue even if it is just a recording. Her preference is to view video recordings.
Mr. Shardlow reaffirmed that Council will receive all meeting materials and a summary report on every
PAC meeting.
Mr. Shardlow noted that PAC meetings will be held on the same nights as Planning Commission
meetings. The PAC meetings will be about two hours long. There will be presentations with opportunities
for questions. There will likely be two meetings per month for 3 – 3.5 months.
Mayor Zerby noted that Councilmembers will submit names to staff for consideration as members of the
PAC. Staff will present Council with a list to narrow down and those selected will be asked to be a
member of the PAC.
Ms. Simer told Mr. Shardlow that Council answered yes to all of the questions regarding the scope of the
issues the PAC should discuss.
Mr. Shardlow explained a lot of communities have created the whole City as a project area by
establishing an EDA. Attorney Keane noted that Shorewood has an EDA. Mr. Shardlow stated if the
project area is authorized by the EDA that would give the EDA the authority to establish TIF districts
within the project area. Stantec has been involved with a number of communities that have done that.
Keane stated that needs to be explored. Mr. Shardlow noted that the bigger challenge is to capture the
value created by the redevelopment of the MCC property to spend on a commercial development nearby.
There will be a need to create the public purpose and the rationale for the relationship between those uses
and explain how it all fits into a broader redevelopment context in order to be able to capture a substantial
value that will be created by the project.
Attorney Keane stated the City will need a financial expert to pull the financial aspects together. Mr.
Shardlow stated he has worked with Springsted, Inc. in many communities to put the background together
to support TIF districts. It is his understanding that Shorewood has used Springsted before. A financial
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Page 18 of 22
firm will be needed to help navigate that part of the process. Administrator Joynes stated that once there is
a project, a financial firm will be engaged to assist with the TIF district component. He noted that he
thought Springsted is the most experienced in doing the redevelopment of tax increment and therefore he
suggests using that firm to do that. If Council wants it could be put out for a request for proposal but that
will lengthen the process.
Mr. Shardlow explained the first thing that needs to happen is to let Council know what is possible; what
can the City do and what tools does the City have at its disposal. The objective is to be able to capture as
much of the value and use it for broader purposes. In order to do that certain findings need to be made,
and the project area needs to be set up. There is no reason to wait to do that. Those types of ideas need to
be generated as soon as possible. If the City were to do TIF or use some other financial tool there is an
ability to capture the administrative expenses to pay for the cost to hire Springsted. Mayor Zerby asked
who does the idea generation. Mr. Shardlow stated Council will decide who it wants to bring on board
and Stantec will work with them on that. Attorney Keane stated staff will request a scope of work from
Springsted.
Attorney Keane asked if the City ever levied the 3/16 of a $1 million or whatever the small EDA levy is.
Administrator Joynes responded no. Keane suggested doing that and stated that although it is not a lot of
money it would generate seed money.
In response to a comment from Councilmember Woodruff, Mr. Shardlow stated Stantec will flush out the
process diagram to show roles and responsibilities and deliverables.
Councilmember Siakel asked what the sense of urgency is for getting some of this work done because
there is a lot of work to do. She asked what the priorities are. Mr. Shardlow clarified the only thing that
needs to be done with the financial consultant right away is to make sure the City or EDA does not
foreclose opportunities. He explained the City does not want to take official action that closes a door or
figure out how to pay for something that the City will want to go back and justify how to pay for with
other proceeds. The PAC planning process can be started right away. Topics will include education,
looking at alternatives, natural resources, water impact issues, land use issues, traffic and transportation
issues and so forth. There will be a part that specifically relates to redevelopment and economic
development issues.
In response to a question from Siakel, Director Nielsen stated the developer has asked for the next step
and was encouraged to step back. Nielsen noted that developer would like some level of concept approval
by June or July 2015. The Stantec proposal is in sync with that timetable.
Mr. Shardlow explained he and staff had a very candid conversation with the developer and told him that
the City will make a good faith effort to work with him to try and meet that timetable but the City needs
to do its due diligence. He asked if the Council wants park dedication fees or land from the developer. Is
Council considering any other housing types or styles on the MCC property? Are there any roadway
changes or other changes that would affect the physical layout of the MCC redevelopment project?
Council and the PAC ought to be able to get that resolved. The developer was told if he needs an answer
right away the City may have to establish a temporary development moratorium in order to give the City
time to do its study. The developer is operating under the assumption that its project will be all single-
family residential. The developer had not thought about the study scope questions Stantec asked that
Council responded yes to. The City is not going to amend the Comp Plan for just the MCC and then
shortly after amend it again for a property near the MCC.
Administrator Joynes stated that in discussions with the developer about slowing the process down, the
developer has been fairly agreeable. The City and the developer have similar goals.
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Councilmember Sundberg stated the location of Badger Park and the Southshore Center is not ideal.
Maybe there could be an opportunity to transfer their locations to somewhere on the MCC property and
then have a developer build senior housing where they are located. She noted that from her perspective
she does not want to convince the developer to build senior housing on the MCC property.
Mr. Shardlow stated there is a philosophical perspective on how to work with the developer. There is a
certain amount of work the community has to do on its own regarding City issues. He recommended the
developer be invited to attend PAC meetings after the goals and policies have been identified and then be
provided the same information as the PAC is. The developer could possibly have other ideas about how
the City could achieve its objectives. Having the developer involved in the process helps break down
barriers between the community and the developer. He clarified the developer would not be a member of
the PAC; just an attendee. It will be up to Mr. Shardlow as the facilitator to call on the developer.
Councilmember Woodruff stated he would like to see in detail how redevelopment of the MCC property
and surrounding area will help the City achieve the Metropolitan (Met) Council’s 2040 requirements for
Shorewood if they will at all. Director Nielsen noted that the last update to the Comp Plan did mention
areas where the City might have mixed use with the Smithtown Crossing Redevelopment Area being one.
Woodruff stated he wants to know how Met Council’s requirements would be satisfied. Mr. Shardlow
stated the City has an approved comprehensive plan with a property with golf course and no housing on
it. He noted that Met Council’s system statements go out to the cities in 2016.
Administrator Joynes asked Mr. Shardlow if he has any recommendation about the size of the PAC. Mr.
Shardlow stated he tends to error on having a larger group rather than leaving someone out who thinks
they should be part of the process. He noted that the process will not work if PAC members are not fully
committed to the process and meeting twice a month for the next few months; they cannot drop in and out
of the process. He stated there will be lots of ways for the broader community to keep track of the process
if they are interested and to provide input.
Mayor Zerby thanked Mr. Shardlow and Ms. Simer for coming. They departed the meeting.
The retreat was recessed from 1:20 – 1:35P.M.
10. Future Trail Projects Timing and Financing
Administrator Joynes stated that Council needs to decide what it wants to do about the Smithtown Road
east sidewalk extension because of the Minnetonka Country Club (MCC) redevelopment project. He
explained there are legal things about when a municipality decides to do a project and how it is paid for
that have impact on whether or not money from tax increment financing (TIF) can be used. The timing
and scheduling is paramount as to whether or not the construction can be subsidized or be paid for out of
general tax dollars. The downside is the sidewalk construction has to be delayed until some of the things
discussed during the MCC discussion are put in place. Council and staff need the counsel from a financial
firm like Springsted to help determine the timing of things.
Attorney Keane stated he thought the preliminary resolution establishing the TIF district with the
preliminary scope of inclusion of public projects and bricks and mortar could be done. Once that is done
then the value can be captured over the life of the district. But, a project cannot be started before the
district is created.
Administrator Joynes stated he thinks there is an opportunity to pay for the Smithtown Road east
sidewalk extension with TIF.
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Councilmember Siakel asked if the district could go over to Strawberry Lane. The response was yes.
Mayor Zerby suggested it go over to Highway 7. Siakel asked if the entire City could be included in the
district. Zerby suggested everything west of Country Road 19. Administrator Joynes stated including the
entire City provides the most flexibility. Attorney Keane clarified that including the entire City does not
commit the City to anything; it would provide maximum flexibility. Keane noted that the City of
Minneapolis has been doing that for decades.
Councilmember Woodruff stated he would like the Smithtown Road east sidewalk extension to be
constructed in 2015. He asked what it takes to put all of the necessary pieces in place to make that happen
without eliminating TIF opportunities.
Attorney Keane explained the engineering component should be brought to a shovel-ready state. At the
same time the MCC application will be moving forward. The feasibility for the TIF district can be
determined in a matter of weeks. The financial feasibility has to then be undertaken and that can be done
in a couple of weeks. That is where preliminary runs are generated in terms of what the forecasted tax
increment will be. At the same time the City can be taking the formal steps of creating the district. He
noted that he thought it is completely realistic that the policy plans for the district creation and approval
and the financial feasibility can be done and if the engineering work is in place with right-of-way (ROW)
the Smithtown sidewalk extension could be started in 2015.
Administrator Joynes asked if public hearings are required as part of the process to establish a TIF
district. Attorney Keane responded yes.
Engineer Hornby stated that plans for the Smithtown sidewalk extension project are scheduled to be
complete in May 2015. The plans are more than 50 percent complete now. This week all of the
information for the title work should be available so the property lines can be placed on the drawings.
Then work can begin on determining easements. He noted the wild card in the schedule is the ROW
process. He stated if actual construction does not begin until August the project could span more than one
construction season.
Mayor Zerby noted that the trail schedule included in the January 26, 2015, Council meeting packet
indicated Council will approve plans and specifications for the Smithtown sidewalk extension on May 25
and groundbreaking ceremony is scheduled for June 30.
Councilmember Sundberg stated she assumes construction of the sidewalk extension would not start until
there is a clear understanding of what may need to be done with the roadways and where the entrances
into the development will be. Engineer Hornby clarified that plan revisions would be incorporated into the
construction documents as addendums as construction is going on so the contractor can make
adjustments. If there is knowledge that some areas are going to change the contractor can be asked to skip
those areas for a while.
Administrator Joynes stated he made the assumption that no one wants to jeopardize the possible
financing of the Smithtown sidewalk extension. Construction will be started as soon as the City is eligible
to recapture financing from other sources. Councilmember Labadie stated if the financing gets held up a
month or two then construction of the trail must also be held up. Director Nielsen stated that assumes the
trail will be paid for entirely by TIF and that the developer won’t pay for any of it. Joynes disagreed.
Nielsen stated a MCC redevelopment project will not be in place this summer. He asked if the City could
go back and pay for part of the sidewalk extension after the fact. Attorney Keane responded yes.
Attorney Keane reiterated that the TIF process can be completed in five months.
City Council/Staff Retreat Minutes
Thursday, January 29, 2015
Page 21 of 22
Administrator Joynes noted there will be a need to have a number of Shorewood Economic Development
Authority (EDA) public hearings.
In response to a question from Director Brown, Attorney Keane explained that unless it has changed
based on his previous experience a project can still be considered for TIF up until the project contract has
been awarded.
11. Other Issues
Mayor Zerby stated he wants to talk about the public safety joint powers organizations. He explained that
Shorewood has contributed considerable community good will over the years. Shorewood does some of
the building maintenance for facility located in Shorewood as well as some of the snow removal
gratuitous. Shorewood Public Works monitors the outdoor warning sirens also gratuitous. Those are just
two examples that readily come to him; there are more.
He then stated that because of the increase in the number of events in the South Lake area he would like
to have the City put policies and permitting in place for special events that spill over into Shorewood
o
from other cities. He noted that his current stance is a 180 turn from when he first joined Council 16
years ago. Back then it was all about working together in the South Lake community. He stated he wants
to be able to show the other communities in the area that there are economic benefits for combining
forces. He noted he is all for the Chamber making money and for its events. He would just like there to be
some equity.
Councilmember Sundberg stated she would support doing that. When she joined Council two years ago
community good will seemed important. That does not appear to be shared by the other South Lake cities.
Councilmember Woodruff noted he supports that as well; the City is running a business. He clarified he
does not want to nitpick things.
Councilmember Labadie stated it is her understanding that the City’s contribution to the Excelsior Fourth
of July fireworks event is almost expected and it is expected to increase each year. She then stated that
this past year she has run in three 5k races in the South Lake area and a good portion of the race was in
Shorewood.
Mayor Zerby noted that the City of Deephaven Public Works Department plows the area at Excelsior Fire
District Station 2 gratuitous. If Shorewood starts to charge snowplowing, Deephaven should also.
Zerby then noted he continues to work with Excelsior on possibly sharing services. Councilmember
Siakel stated there is plenty of opportunity to do that and noted that she thought Mayor Zerby’s comments
were well spoken and that she agrees with what he said.
Mayor Zerby noted that the Excelsior Fourth of July event is quite costly and Shorewood’s contribution
covers only a small portion of it.
At 1:53 P.M. Administrator Joynes welcomed South Lake Minnetonka Interim Police Chief Mike Siitari
and noted that he had been the Edina Chief of Police for 10 years and worked for the department for 31
years. Chief Siitari came to meet staff and Council.
Interim Chief Siitari stated that he worked under the Edina City Manager, who reported to one city
council and there was a large staff. When he was there Edina was getting into cost recovery for special
events.
City Council/Staff Retreat Minutes
Thursday, January 29, 2015
Page 22 of 22
Administrator Joynes reiterated there will be a separate session about financing for the various funds that
need funding.
12. Adjourn
The City Council/Staff Retreat was adjourned at 1:58 P.M.
RESPECTFULLY SUBMITTED,
Chris Freeman
Scott Zerby, Mayor
ATTEST:
Jean Panchyshyn, City Clerk