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05-22-23 CC WS MinutesCITY OF SHOREWOOD 5755 COUNTRY CLUB ROAD CITY COUNCIL WORK SESSION MEETING COUNCIL CHAMBERS MONDAY, MAY 22, 2023 5:30 P.M. MINUTES 1. CONVENE CITY COUNCIL WORK SESSION MEETING Mayor Labadie called the meeting to order at 5:30 P.M. A. Roll Call Present: Mayor Labadie; Councilmembers Callies, Maddy, and Sanschagrin; City Attorney Shepherd; City Administrator Nevinski; Planning Director Darling; Finance Director Rigdon, Public Works Director Morreim, Park/Rec Director Crossfield, and City Engineer Budde. Absent: None B. Review Agenda Maddy moved, Sanschagrin seconded, approving the agenda as presented. Motion passed 4/0. 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. Sanschagrin moved, Maddy seconded, to recess to Closed Session at 5:32 p.m. Motion passed 410. The meeting reconvened at 6:04 P.M. 3. REVIEW PROPOSED MODIFICATIONS TO SOUTH LAKE MINNETONKA POLICE DEPARTMENT JOINT POWERS AGREEMENT City Administrator Nevinski explained the Joint Powers Agreement (JPA) that governs the South Lake Minnetonka Police Department will expire 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 proposed changes to the JPA at the April 11, 2023 Coordinating Committee meeting. He presented the changes proposed by Excelsior including the change in funding formula. He stated that there is a working group proposed to work through the changes in attempt to find agreement. He stated that the Council is asked to assign a member of the Council to the working group in addition to Mayor Labadie. He stated that it would also be helpful for the Council to provide input on what might be negotiable and general thoughts on the proposal. Mayor Labadie commented that historically the mayors have always been the members on the coordinating committee, with alternates assigned. She stated that she was previously an CITY OF SHOREWOOD WORK SESSION COUNCIL MEETING MINUTES MAY 22, 2023 Page 2 of 3 alternate prior to becoming Mayor. She commented that when the formula is brought up it is very contentious as this is the longest standing JPA for these services. She stated that Shorewood has always taken the attitude that it is being a big sister in helping out the other cities, but this proposal appears to be flagrantly wrong. She noted that each of the four cities receives one vote, so even though Shorewood would pay more than 50 percent of the budget under this proposal, it still would only have one vote, therefore voting rights and funding are the biggest issues. She noted that with four members there is a potential for a stalemate. She commented on the number of liquor licenses and stated that Excelsiors count of 16 seems low. She noted that the five licenses in Shorewood belong to liquor stores and restaurants that close earlier whereas Excelsior has a lot of traffic in and out of the bars and with its festivals. She believed that Excelsior should be increasing their contributions rather than decreasing. She stated that the other three cities came to agreement in April but since that time Excelsior has raised this huge red flag. She did not think that this was a budget improvement to Shorewood. Councilmember Callies stated that she was here in 2006 and one of the reasons she asked for the previous arbitration decision was to show that background information. She stated that Excelsior is saying the cities are very different now and that is why the formula should be updated, but when comparing populations, they are not much different from that time. She stated that the arbitrators did not use the formula recommended by Excelsior. She commented that the formula does account for changes, and it would seem that Excelsior was not happy with the decision of arbitration. She noted that Shorewood most likely was not either as it received the allocation of 50 percent of funding with only one vote. She stated that she supports continuing the formula as is. She recognized the desire to have more than one vote if the City is paying 50 percent or more of the funding, but also acknowledged the intent for each member of the JPA to have one vote. Councilmember Sanschagrin stated that the current formula uses five years and asked if the proposal would go back three years. City Administrator Nevinski confirmed that to be true. Councilmember Callies provided further explanation noting that Excelsior does not want to include the additional lookback. Councilmember Sanschagrin commented that the onus should be on the city requesting a reduction in their share and simply saying times have changed would not be sufficient. He stated that it would be interesting to view comparable agreements. City Administrator Nevinski commented that this type of relationship is rare. Councilmember Maddy noted that the Fire District simply uses tax capacity. Councilmember Sanschagrin commented that it would seem to make more sense to increase the ICR to 50 percent and then changing the others to 25 percent. He stated that perhaps that would make more sense. Councilmember Callies stated that tax capacity was used previously before arbitration. She agreed that the onus should be on Excelsior. She stated that Excelsior does have more ICR than the other communities while populations have remained relatively the same. Mayor Labadie commented that at times during negotiations Greenwood and Tonka Bay have said if there is deviation from what was agreed to in April, they would leave the JPA. She noted that some communities use the County for police services. She did not think the decision could be made out of losing a member but also did not want to feel taken advantage of by being asked to pay a higher share. Councilmember Maddy commented that the City has always paid more while being underrepresented in terms of voting. He stated that the question would be whether the CITY OF SHOREWOOD WORK SESSION COUNCIL MEETING MINUTES MAY 22, 2023 Page 3of3 communities want to be viewed as one community or three bedroom communities and Excelsior. He asked what would be best for the community as a whole as members from the other communities do use the Excelsior amenities and if there are issues it would more likely happen in Excelsior. He stated that he would at least like to have one more vote, as it would not seem to make sense to have a total of four votes. He stated that this would seem to be going back to the method that failed prior to 2006. Mayor Labadie commented that this is stressful for the Police Chief and department, and this is not appealing when attempting to recruit. Councilmember Maddy noted that South Lake PD has a good thing going as they are fully funded, fully staffed, have mental health checks, and therefore are the envy of many other departments. Councilmember Sanschagrin commented that he would encourage the City to push hard against a formula that goes away from the arbitration formula. He stated that in his line of business the allocations should reflect the benefits that come with the services. He commented that he would then see ICR as the heaviest benefit. He stated that he would encourage the arbitration formula but if that is not going to be used, then ICR should be more heavily weighted. Mayor Labadie commented that ICR has also been contentious as drivers being pulled over are often coming from other establishments but are not pulled over in that community. She stated that the current four mayors work well and respectfully together but that may not always be the case. Councilmember Sanschagrin noted that the longer period helps to spread things out. Mayor Labadie commented that the Police Chief also prefers that as it gives the department some breathing room. Councilmember Callies suggested that Councilmember Sanschagrin be the additional member of Council to represent the City with Mayor Labadie. Councilmember Sanschagrin confirmed that he could do so. There was consensus of the Council to designate Councilmember Sanschagrin to serve with Mayor Labadie on the Working Group. Mayor Labadie confirmed the direction for she and Councilmember Sanschagrin to focus on the five-year time length, increased voting for Shorewood, and use of the existing formula as set forth by the arbitrator. 4. ADJOURN Maddy moved, Sanschagrin seconded, Adjourning the City Council Work Session Meeting of May 22, 2023, at 6:46 P.M. Motion passed 4/0. ATTEST: J�eiffifferlLabadlie, Mayor San a Thone, City Clerk