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05-22-23 CC WS Agenda Packet CITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL WORK SESSION COUNCIL CHAMBERS MONDAY, MAY 22, 2023 5:30 P.M. AGENDA 1. CONVENE CITY COUNCIL WORK SESSION A. Roll Call Mayor Labadie _____ Johnson _____ Callies _____ Maddy _____ Sanschagrin _____ B. Review Agenda ATTACHMENTS 2. CLOSED SESSION Pursuant to Minnesota Statutes, section 13D. 05, subdivision 3(d), as permitted, the City Council will be moving into a Closed Session to discuss issues related to security systems and emergency response procedures. 3. REVIEW PROPOSED MODIFICATIONS TO SOUTH LAKE City Administrator Memo MINNETONKA POLICE DEPARTMENT JOINT POWERS AGREEMENT 4. ADJOURN City Council Work Session Item Item Title/Subject: Proposed Changes to SLMPD Joint Powers Agreement 3 Meeting Date: May 22, 2023 Prepared by: Marc Nevinski, City Administrator Attachments: Working Group Agenda + Draft JPA Background: The Joint Powers Agreement that governs the South Lake Minnetonka Police Department is set to expire at the end of 2023. Last fall the cities of Shorewood, Greenwood, and Tonka Bay agreed to and approved an updated JPA but Excelsior delayed approval and instead proposed a host of changes to the JPA at the April 11, 2023 Coordinating Committee meeting. While a number of the changes were relatively minor and generally not viewed as particularly controversial. These included:  Various clarifications and updating terminology.  Reducing five-year data intervals to three  Adjusting the procedure if an annual budget is not approved. (Sec 7, Subd 2, A and D, respectively)  Tasking the Operating Committee (City Administrators/Manager) with day to day supervision of the Chief. (Sec 6)  Adjustments to requirements for a party to withdrawal or dissolution of JPA (Secs 10 & 11)  Expenditure guidelines for the Chief (Sec 12) The most significant proposal put forward by Excelsior is a change in the funding formula. The funding allocation for the SLMPD has been a point of contention for decades. In 2006 an arbitrator established that the communities should fund the SLMPD operations with the following percentage: Excelsior 27% Shorewood 50% Greenwood 8% Tonka Bay 15 Additionally, the arbitrator determined that the percentages should be reviewed and adjusted in five- year increments using the five year averages of the following criteria: 1) population, 2) tax capacity, and 3) ICR (incident case reports), with each criteria assigned an equal weight of 33.33%. Each communities’ criteria data is divided by the total criteria data of all four communities to determine each communities’ proportion of the criteria. That figure is then multiplied by 33.33%. The proportions of each i communities’ three criteria (population + tax capacity + ICR) are then added together to determine the total five year average proportions. The five-year averages are calculated in five-year incremental periods and compared to the previous five-year incremental period. Any deviations between the incremental periods are added or subtracted from the percentages established by the arbitrator in 2006. This adjusted percentage is then used to Mission Statement: The City of Shorewood is committed to providing residents quality public services, a healthy environment, a variety of attractive amenities, a sustainable tax base, and sound financial management through effective, efficient, and visionary leadership. Page 1 determine each communities’ share of the SLMPD’s annual operating budget. A sheet showing the historical data and calculations is included with the attached draft JPA as Exhibit A. Excelsior is proposing eliminating the arbitration allocation of the funding formula and using the average of the past three (not five) years criteria data. Excelsior believes the 2006 arbitration allocation is outdated and that the JPA communities have changed since then. Absent any dramatic changes in the established criteria, modifying the formula would result in a roughly five percent increase in Shorewood’s annual share of the SLMPD’s operating budget. Keep in mind that each city has only one vote on the Coordinating Committee which governs the SLMPD, regardless of its funding share or percentage of its population. Excelsior has issued 16 liquor licenses in 2023 compared to Shorewood’s five. For 2021, the Met Council estimated the total population of the four cities at 12,344, which breaks downs as follows: Shorewood 7827 (63.4%) Tonka Bay 1433 (11.6%) Greenwood 724 (5.8%) Excelsior 2360 (19.1%) At the April 11, 2023 Coordinating Committee meeting, the four cities expressed an intent to work collaboratively to consider Excelsior’s proposed formula change. A working group comprised of the mayors (who make up the Coordinating Committee) plus one council member from each community was proposed. The working group is scheduled to meet on Wednesday May 24 at 2:00 PM. Financial or Budget Considerations: For 2023, the proposed modifications to the JPA are estimated to add $75,000 to Shorewood’s $1.48M share of the SLMPD operating budget. Discussion Requested: Council is asked to: 1) designate a Council member to serve with the Mayor on the working group 2) provide direction for discussions at the working group meetings. i ICRs do NOT include the following: Traffic stops, Parking viola?ons, Directed patrols, Special events, or voided calls for service. IRCs for the past two years are shown below: Shorewood Excelsior Tonka Bay Greenwood 2021 2557 1834 503 280 2022 2579 1984 496 288 % change +0.86% + 8.17% -1.39% +2.85%