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06-26-17 CC WS MinutesCITY OF SHOREWOOD CITY COUNCIL WORK SESSION MONDAY, JUNE 26, 2017 MINUTES 1. CONVENE CITY COUNCIL WORK SESSION 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 6:00 P.M. Mayor Zerby called the meeting to order at 6:02 P.M. A. Roll Call Present. Mayor Zerby; Councilmembers Johnson (arrived at 6:08 P.M.), Siakel, and Sundberg; Administrator Lerud; Director of Public Works Brown; and, Parks /Recreation Coordinator Grout (departed at 6:27 P.M.) Absent: Councilmember Labadie B. Review Agenda Sundberg moved, Siakel seconded, approving the agenda as presented. Motion passed 310. 2. SOUTHSHORE CENTER Administrator Lerud stated the City had received two requests for information (RFIs) regarding the management and improvements to the Southshore Center and discussed them during its June 12, 2017, work session. The proposals were very different in nature. One response was from a local person. The other was from a company located in Colorado. He highlighted five general options for the Center for Council's consideration. 1. Continue operations as is. The rental income for the Center in 2012 was $60,000; it was $42,500 in 2016. The City has subsidized Center operations for an amount of approximately $70,000 each of the last few years, not including the cost to purchase the Center from the other joint powers entities in 2016. . Although that subsidy amount is not preferred it is sustainable. 2. Hire a person or company to market the Center. 3. Expand the programming currently offered. 4. Sell the building. That is not feasible due to lack of parking. 5. Tear the building down. Based on what the City has invested in the Center that is not a viable option. Lerud noted he contacted a company that has performed many housing studies for cities to find out if it would be willing to do a market study for the Center. Per the company's request he sent them a list of all of the rentals of the Center for the last few years. He has not heard back from them. The next step was for company representatives to come and look at the site. He thought that study would not cost more than $10,000. Mayor Zerby noted that a few years ago the Minnetonka School District Vantage Team prepared a business plan for the Southshore Community Center (SSCC). That activity was driven by a Southshore CITY OF SHOREWOOD WORK SESSION MEETING MINUTES June 26, 2017 Page 2 of 7 Center Advisory Committee. Two members of the Committee proposed rebranding the Center to The Cove. He stated he supports staff's recommendation to make some improvements and updates to the Center and to make a concerted effort to increase the use of the Center and hopefully decrease the annual subsidy amount. Some of the furnishings and colors are dated. Mayor Zerby inquired whether Parks /Recreation Coordinator Grout has heard any requests to update the Center. Coordinator Grout stated she receives compliments about the Center. She has not received any negative feedback. Councilmember Siakel stated the first thing Council must do is decide if the Center is a viable community center. She commented that she has viewed the Center as part of the culture of Shorewood. She thought it should be treated somewhat like a park. She explained that one year someone ran the Center and by the time the salary and commission were paid the operations basically broke even. That individual was relatively aggressive at marketing the Center. She clarified she does not have a goal that the Center would be a money maker for the City. She would like to have the Center break even or close to it. If the City has to put some money into it that is no different than what the City does for parks. Mayor Zerby stated he thought it is a viable community center. If others need to be convinced then Council needs to define what viable means. Councilmember Johnson stated he struggles with what Council's definition is of a viable community center. He noted that Chaska's community center is very different than Shorewood's. Chaska's is partially tied to sports. Councilmember Sundberg stated very few community centers are self - sustaining. She noted she thought it is the City's responsibility to provide the type of community center Southshore Center is. She stated Council has to decide what the focus should be. She stated she thought the City should continue with what Coordinator Grout is managing. She asked if the City is missing something by not having a tie to sports or would that require an investment that is prohibitive. Councilmember Siakel expressed discomfort about spending $10,000 on a marketing proposal. She does not think they would come back with anything that has not already been thought of. It may be beneficial to take a more aggressive approach to marketing the Center. Councilmember Sundberg asked if the Park Commission has been asked to provide input on the Center. Mayor Zerby stated he thought it was time to put the Center under the Commission's purview. Sundberg stated Council has discussed doing that but it has never done it. Councilmember Johnson stated the definition of a community center is having amenities that appeal to the vast majority of the community. He does not think the Center has enough offerings that are attractive to the vast majority of the City's residents. Mayor Zerby stated in there had been a suggestion to provide summer programming; something like a summer camp for children. He thought day programs for children would be a profitable thing to do. Mrs. M tried to do some summer camps in the past. He stated he thought parents like to have a place for their children to go in summer where they can be enriched. Councilmember Johnson stated he thought it would be tough to compete with Minnetonka Community Education (MCE) programming and Chanhassen. He commented he and his wife held a birthday party CITY OF SHOREWOOD WORK SESSION MEETING MINUTES June 26, 2017 Page 3 of 7 with Mrs. M for one of their children. He stated his children are attending camp in Chanhassen and they have attended MCE programs in the past. Councilmember Siakel stated she does not think people want the Center to try and compete with Chanhassen. She then stated it is difficult to find places to rent at a reasonable cost. She noted sports organizations have banquets. The Center would be a perfect place to have banquets. She recommended marketing the Center more locally. She asked Coordinator Grout if she was interested in doing more marketing of the Center or should the City hire someone to do that. She questioned the need for a formal marketing plan. Councilmember Sundberg stated she does not want to go down that path again. Councilmember Johnson suggested Council make it known that it is open to hearing other's ideas. Councilmember Sundberg agreed with Mayor Zerby that the Center needs to be freshened up. Administrator Lerud stated the Center needs to be rebranded. Mayor Zerby and Councilmember Sundberg concurred and noted she never bought into The COVE brand name that had been proposed. Councilmember Siakel stated the library area in the Center needs to be cleaned up; there is too much clutter. She recommended establishing it as a board room. She thought people would use it, noting it is private. Mayor Zerby asked Council what its tolerance is for investing money in the Center. Is it $10,000 or $50,000 or $100,000? Councilmember Siakel stated a list of potential projects has already been created. She asked what items are eminent now. Is there one room that is more marketable than another? What is the status of the kitchen equipment? She suggested scheduling improvements out. Administrator Lerud recommended determining what has to be done to the building first with cosmetic improvements being completed second. He thought the roof on the Center needs to be replaced in 2018. Director Brown confirmed that. In response to a comment from Mayor Zerby, Director Brown clarified there already is a capital improvement program (CIP) for the building. It was prepared by Building Official Pazandak. Director Brown suggested having Coordinator Grout and Communications Coordinator Moore freshen up their suggestions for the interior of the Center. Brown stated he would talk to Building Official Pazandak about the HVAC system to find out what has to be done. Councilmember Sundberg suggested asking Coordinator Moore to think about rebranding options. Mayor Zerby asked Coordinator Grout if she would work with Coordinator Moore on that. Sundberg noted that Zerby had proposed the name The Woods. Councilmember Johnson stated The Woods ties to Shorewood and the community. He stated he would like to somehow tie it into Badger Park also; for example, Badger Woods. Councilmember Siakel stated the annual subsidy for Southshore Center operations is about $70,000. That also includes Coordinator Grout's time at the Center and Director Brown's time dealing with things related to the Center. She considers that $70,000 to be a little exaggerated because the City uses existing staff. Administrator Lerud stated he will research what the expenditures are. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES June 26, 2017 Page 4 of 7 Siakel asked if revenues increased in 2016. . Lerud responded yes. Director Brown stated since the City took over operations of the Center the subsidy has been around $70,000 annually. Councilmember Johnson asked what the City spends on parks annually. Mayor Zerby suggested that some of the needed improvements should be factored into the 2018 budget. Councilmember Siakel stated she is not convinced the City needs more staff for Center related activities. She could understand putting one staff member over there full time. She noted she would be willing to listen to a case for needing more front desk help if one person is dedicated to the Center. Administrator Lerud cautioned against assuming that now. Mayor Zerby stated he thought amplifying what Coordinator Moore is doing to a broader audience would be beneficial. Administrator Lerud clarified Moore is not a full time employee; she works 32 to 35 hours a week. Zerby stated there seems to be a lot of buckthorn around the Center. He suggested landscaping needs be included in the list of improvements. Councilmember Sundberg asked if Great River Greening could help with the eradication of buckthorn. Coordinator Grout stated she is made aware of many complimentary comments regarding the Southshore Center. She noted there were more graduation parties at the Center this year then there have been in the past. She stated some people who attended them have spoken with her about reserving space for next year. A birthday party was held at the Center this year. Spreading the word regarding the benefits of using the Center via word of mouth has helped increase its use. Councilmember Johnson suggested using Facebook to help spread the word about the benefits of renting space in the Center. Councilmember Siakel stated people need to be realistic about what the Center is and is not. She then stated the Center needs to be maintained just like other facilities are. Coordinator Grout departed the meeting at 6:27 p.m. [cam W.1V14 01 W tre u ► ! M Mayor Zerby stated he thought having the City make contributions toward the treatment of aquatic invasive species (AIS) on an annual basis is not sustainable in the long term. He explained the Cities of Greenwood and Excelsior established a lake improvement district (LID) for St. Albans Bay in Lake Minnetonka. An LID is basically a special taxation district which places a special tax on properties in the LID to help pay for the treatment of that Bay. Administrator Lerud stated he had asked Deephaven City Administrator Young (who is also Greenwood's City Clerk) to send him the information he had regarding LIDs. That information was included in the meeting packet. He explained that State Statute allows cities and counties to create LIDs and assess benefiting properties. He clarified it is not an all or nothing proposition; the entire cost for treatment would not have to be assessed. He stated from his perspective everyone in Shorewood benefits from Lake Minnetonka being healthy and therefore everyone should pay something to make that a reality. An LID is CITY OF SHOREWOOD WORK SESSION MEETING MINUTES June 26, 2017 Page 5 of 7 made up of representatives who are appointed. The LID would decide what it is going to be assessed. That would get collected as part of the property taxes. It is a specific and separate item. He clarified the information in the packet was informational only. Councilmember Sundberg asked if there could be a tiered assessment where the owner of a property fronting the Lake is assessed more than an owner whose property does not front the Lake. Administrator Lerud noted he was not sure. Lerud stated he could envision, for example, if the treatment cost was $10,000 a year $5,000 could come from the General Fund and $5,000 would come from the LID paid by owners of lake front property. Sundberg stated she could support some sort of tiered approach. Councilmember Siakel expressed opposition to establishing the LID. She stated St. Albans Bay is a contained bay. The boat traffic into and out from the Bay is much less than what there is on the greater Lake Minnetonka. In Shorewood the shoreline meanders and most of it borders other cities. The owners of Lakeshore properties already pay higher property taxes. Shorewood property tax payers already fund the Lake Minnetonka Conservation District (LMCD). She noted she thought the Minnesota Department of Natural Resource (MN DNR) should help fund the treatment of the Lake. She stated the milfoil problem is much larger than what Shorewood can handle. If the discussion was about one contained bay it would be a different situation. Councilmember Sundberg stated the political reality is the problem has been pushed down to the local level. She noted she appreciates the concern regarding raising taxes. She then stated incremental improvements to the Lake do help. She went on to state it would be better if all of the cities around the Lake also paid. Councilmember Siakel noted she can support increasing taxes for roads but not for this. Councilmember Siakel stated there needs to be a lake -wide plan and that is a DNR issue. She then stated there are a lot of boats launched at the public accesses to the Lake every weekend during the boating season; significantly more than by those who have property fronting the Lake. She explained that she has lived on property fronting the Lake since 1978 and her boat has never been in another lake. Councilmember Sundberg stated the idea of pushing this issue up is not going to work. Councilmember Siakel stated if Shorewood establishes an LID to fund the treatment of some of Lake Minnetonka that would only be for a small portion of the Lake. If there is not a plan for treating the entire Lake for Shorewood residents it would just amount to throwing good money after bad. She would prefer to spend Shorewood tax dollars on something else. Siakel reiterated her opposition to create a LID to help find treatment of part of the Lake. Mayor Zerby stated he understands Councilmember Siakel to be saying that bay treatments are not effective unless there is a treatment plan for the entire Lake. Councilmember Siakel stated she thought it prudent for the local level of government to push back on the DNR about treatment. She then stated clearing Lake Minnetonka of milfoil or any other invasive species is beyond what the 16 cities around the Lake can do. Councilmember Sundberg suggested Council discuss the treatment funding issue with the City's legislative representatives. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES June 26, 2017 Page 6 of 7 Mayor Zerby stated if he worked for the DNR he would be thinking the DNR has to be looking at the entire state and not just Lake Minnetonka. Councilmember Sundberg stated that is the solution but that is a long -term issue that needs to be addressed. Councilmember Sundberg stated she thought the City needs to be environmentally responsible and that it could be done in a cost effective way. Councilmember Siakel asked if Council would be having this discussion if there was not a funding shortfall for the last treatment of Phelps Bay and the LMA asking Shorewood to help make up for that shortfall. She has some issue with that. Mayor Zerby stated the funding shortfall was created when property owners around Phelps Bay said they were going to pay for the treatment but changed their minds when they decided the treatment had not been effective. The LMA ended up paying for those commitments. Councilmember Sundberg asked Councilmembers if they thought the LMA is a worthwhile organization; one that they want the City to help out. Mayor Zerby stated he does not think there is a choice about it being worthwhile. Sundberg stated Council can decide if it wants the City to support the LMA. Councilmember Johnson stated he thought the LMA may have done itself a disservice when it did not collect treatment contributions before the treatment was performed. Councilmember Siakel asked why the City did not contribute to the treatment of Phelps Bay in 2016. Director Brown stated the Bay Captain did not request funding for that treatment. Administrator Lerud stated in 2016 the City received an $1,800 invoice from the LMA for the treatment of Lake Minnetonka. In 2015 the City received a $12,000 invoice; $6,000 for 2015 and $6,000 for 2014. Councilmember Siakel asked how much the City contributed toward the treatment of Christmas Lake. Administrator Lerud stated it was largely staff time. Mayor Zerby stated the funding came from the Minnehaha Creek Watershed District (MCWD), the Christmas Lake Homeowners Association and the County. Councilmember Johnson stated when someone institutes a no wake area on Lake Minnetonka he asked what organization makes that decision. Councilmember Siakel stated the LMCD. Johnson then stated he thought the issue is the LMCD's and the LMA's and they should figure out how to make it work. Mayor Zerby explained that about two years ago the LMCD drafted two budgets with one of them including milfoil mitigation in it. That one was voted down by the LMCD member cities. Councilmember Johnson stated if 50 percent of the lakeshore property owners in Shorewood asked for the City to create an LID that would be a different discussion. But, until that happens he would not consider the LID. Councilmember Sundberg reiterated she does not like to increase taxes. Councilmember Johnson stated he has no problem with increasing taxes on each individual boat on Lake Minnetonka noting the City has no control over that. Mayor Zerby stated Council can via resolution direct staff to start working on that legislation. CITY OF SHOREWOOD WORK SESSION MEETING MINUTES June 26, 2017 Page 7 of 7 Councilmember Sundberg stated she would like Council to invite the City's legislative representatives to come to a work session. There are a number of issues she would like Council to discuss with them. She would like to know what they are doing on the City's behalf. Administrator Lerud stated Senator Osmek is scheduled to be at Council's July 10 regular meeting. Sundberg stated having them come to a work session has a different purpose. Councilmember Siakel concurred. Councilmember Siakel stated if someone came with a well thought out plan that they want her to contribute to along with the greater community she would likely contribute. She was opposed to being asked to pay more when other lake users do not pay anything. 4. ADJOURN Siakel moved, Sundberg seconded, Adjourning the City Council Work Session of June 26, 2017, at 6:43 P.M. Motion passed 4/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder ATTEST: Sandie Thone, City Clerk