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
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MAY 22, 2023
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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
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MAY 22, 2023
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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