MINUTES OF THE REGULAR MEETING OF

THE MINNEHAHA CREEK WATERSHED DISTRICT

BOARD OF MANAGERS

December 9, 2010

CALL TO ORDER

The regular meeting of the Minnehaha Creek Watershed District Board of Managers was called to order by President James Calkins at 6:50 p.m. at the District offices, 18202 Minnetonka Boulevard, Deephaven, Minnesota. 

MANAGERS PRESENT

James Calkins, Richard Miller, Brian Shekleton, Lee Keeley, Pamela Blixt, Jeffrey Casale, William Olson.

MANAGERS ABSENT

None.

OTHERS PRESENT

Eric Evenson, District Administrator; David Mandt, Operations Manager; Michael Panzer, District Consulting Engineer; Michael Welch, Assistant District Counsel.

MATTERS FROM THE FLOOR

None.

APPROVAL OF AGENDA

Mr. Evenson requested the removal of the recommendation to retain a real estate agent for 6360 and 6430 County Road 26 in Minnetrista and permit 10-335 from the agenda.  Mr. Evenson said that Hennepin County, the applicant for the permit, recently submitted new information requiring analysis.  Manager Keeley moved, seconded by Manager Olson, to approve the agenda as amended.  Upon vote, the motion carried.

CONSENT AGENDA

Manager Calkins stated that the minutes of November 18 were not in the packet so the consent agenda consist of the remaining items listed.  Manager Shekleton moved, seconded by Manager Casale, to approve the consent agenda, consisting of the approval of a contractor to demolish a pole barn at 14814 Timber Hill Road in Minnetonka; authorization for the administrator to enter a contract with Interfluve for feasibility-level design work for the Minnehaha Creek Reach 20 meander, as well as informational items including a report on management of the Land Conservation Program properties, the Financial Projection for the Land Conservation Program, and a report on the status of the Federal Emergency Management Agency floodplain revision for Minnehaha Creek.  Upon vote, the motion carried.

REGULAR AGENDA

Committee and Task Force Reports

Manager Blixt reported on the annual Minnesota Association of Watershed Districts (MAWD) conference in Alexandria.  She said all of the District resolutions passed.  Manager Calkins said he heard to a very good presentation on removal of soluble phosphorus and that the Richfield project the District is considering was mentioned.  Manager Blixt remarked also that the National Park Service came to the conference to conduct outreach to local partners for projects.

Manager Shekleton reported that the Information Technology Committee has received and approved information architecture designs showing the look of the District’s revised website.  He said that proposals for execution of the work will come forward at the next Board meeting.

Manager Calkins reported on the Bushaway Task Force, which met just prior to the Board meeting.  He said the Committee reviewed alternative road designs put together by Barr Engineering.  Manager Miller noted what a pleasant evening driving experience he had had on Bushaway Road coming to the meeting that evening.  Manager Calkins concluded by noting that a Bushaway Task Force presentation will be on the agenda for the main meeting next week and county representatives will attend.

Manager Calkins reviewed the upcoming meeting schedule, noting that the Violations Committee scheduled for 5 p.m. on the December 16 has been cancelled. 

He asked that managers provide input for planning the District retreat to Eric or him. 

Property, Programs and Facility Update

Mr. Evenson said staff and consultants are seeking direction from the Board on plans for the District’s possible new building.  He introduced Jason Mundstock from CB Richard Ellis and Victor Pechaty from HGA, the architect who put together the feasibility analysis.  Mr. Evenson also noted the presence of John Gunyou, the Minnetonka city manager. 

Mr. Mundstock said the principal question before the Board is whether to continue ahead with plans for a construction of a District building in partnership with the City of Minnetonka on land owned by the city.  Mr. Mundstock stated that his analysis indicates that construction of a District building in partnership with the city does make sense.  Mr. Mundstock stated that the Building Committee and the administrator have been looking at the opportunities and synergies presented by the partnership with the city.  Mr. Mundstock reviewed the cost, programming and space considerations and assumptions in his analysis of building versus leasing.  He reviewed 10-, 20- and 30-year cost analyses, showing that after 10 years, and even more so after 20 years, the value of constructing a building was significantly greater than leasing.  Manager Miller stated that he would like to have the District’s auditor or another third party look at the financial assumptions made in producing the analysis.  Manager Shekleton said it is important to realize the District will likely be a different kind of organization and have some significant changes in the next 10 to 20 years.  Mr. Evenson stated that the plan for the new building accommodates 43 staff and provides space for varied uses and programming.  Mr. Mundstock stated that there are really very few spaces available for lease that would accommodate the District. 

Mr. Pechaty reviewed the feasibility analysis.  He said that he reviewed the opportunities presented by and the strengths of the site on Minnehaha Creek in Minnetonka.  He said Barr Engineering analyzed trees and conducted an assessment of the environmental characteristics and issues presented by the site.  He stated that there are three buildable acres on the property and showed rough designs for five different building options.  He stated that the next step would be a full-blown sustainability analysis of the project.  Manager Miller said that if separate buildings are constructed as in the final design shown by Mr. Pechaty, separation of cost and an allocation to the various uses that the building would accommodate will be valuable.  Mr. Evenson emphasized that the initial costs of building are significantly higher than leasing. He acknowledged that it is difficult time to undertake such a project, but it’s also a very good time to undertake such a project because construction is relatively inexpensive these days.  He stated that in his view the principal issue before the Board is whether the facility will make the District able to do its job better.

Manager Blixt called on Mr. Gunyou to offer the city’s perspective.  Mr. Gunyou stated that the City is very interested in the connection to the creek and has been buying property along the creek and establishing trails and parkways.  He said that the city shares the District’s interest in and perspective on the creek.  He said that in the city’s review of the project, the discussion of the need to justify the public purpose of giving property to another government entity fostered a great deal of realization of the synergy in programming ideas and educational opportunities.  He stated that the city needs a facility to accommodate 50 to 70 people for events such as weddings and bar mitzvahs.

In response to a question from Manager Miller, Mr. Pechaty stated that the designs and cost estimates were based on an institutional-quality building – not a high-end facility but one that uses moderate materials and finishes.  Manager Casale stated that the District really doesn’t have any interest in building an office in any other location; rather it is the unique opportunity to use the land along the creek in Minnetonka in partnership with the city makes this project worth considering.  Manager Calkins echoed the need for a detailed cost analysis as the project moves ahead.  He said it is also important to understand the staffing needs the District will have in the future and how they work in the building as well as the synergy with education and programming plans.  Manager Casale stated that the issue before the Board is giving staff the approval to obtain that kind of information.  Mr. Evenson stated that he believes the direction the Board is outlining is consistent with what has been discussed with city staff and elected representatives.  He said the next step would be for the Board to authorize staff to work on a cooperative agreement with counsel with a mind towards preparing a request for proposals for a design or architecture for the building.  Manager Keeley moved, seconded by Manager Blixt, to authorize staff to prepare, with the city, a draft cooperative agreement.  Manager Casale clarified that the scope of the agreement will incorporate all of the concepts the Board has suggested need to be addressed in the cooperative agreement.  Upon vote, the motion carried. 

Legislative Update

Mr. Evenson provided the managers with a review of possible legislative initiatives beyond what was brought forward at the MAWD conference.  He introduced Joel Carlson, the District’s legislative liaison.  Mr. Carlson appeared before the Board and presented his assessment of the upcoming legislative session.  He said that some of the change at the capitol will present management challenges for the District.  He said that under the Republican leadership in the legislature, he expects a more direct link between policy and finance.  Mr. Carlson discussed the incoming chairs of the Senate and House committees of primary importance to the District. Mr. Carlson noted that Sen. Ray Vandeveer will be a member of the Tax Committee, potentially enabling him to advance a bill similar to those he has authored in the past giving county boards the authority to revise watershed district budgets.

Mr. Carlson stated that any financing for environmental initiatives will likely be relegated to Clean Water Legacy Act money. He does not expect any new environmental policy dollars.  He also said there may be a revision to the criteria for the use of the Clean Water Legacy funds.  Mr. Carlson noted that tourism in the Alexandria area is a high priority for Sen. Bill Ingebrigtsen, chair of the Senate Environment and Finance Committee. A red lake/green lake-type aquatic invasive species control bill is unlikely to get much traction with the senator. 

Mr. Evenson reviewed the resolutions put forward by the District to MAWD and additional issues that have come to District staff’s attention: closing down public access to lakes as a means to control spread of aquatic invasive species and the issue of enforcement of ballast water rules as a primary way to stop invasive species from getting into and spreading through Minnesota.  He said staff member Matt Norton has worked on the issue and reports that two-thirds of all invasive species come from ballast water. 

Manager Calkins stated that if the District’s legislative initiatives are sound he doesn’t believe they should be abandoned just because of a change in political winds. Manager Blixt stated that Sen. Ingebrigtsen is on the Great Lakes Commission and should understand the ballast water issue.  Manager Keeley noted the importance of statewide action on invasive species, and Mr. Carlson stated that a trailer and boat seizure bill is not likely to move forward with Sen. Ingebrigtsen in a leadership position.  In response to a question from Manager Miller, Mr. Carlson stated that the environment for transit funding is likely to be tough in the upcoming session.  The managers thanked Mr. Carlson for his presentation.

The managers revisited the District building matter and discussed the idea of holding a competition for building concepts.  Mr. Evenson stated that the current idea for the process was a request for proposals because a competition had already been ruled out.  Manager Miller noted the importance of the District being in control of the process for developing the new building.  Mr. Evenson said that city staff have stated positions and interests on the project that align very well with the District’s.  Manager Olson stated that it is critically important that any facility that is built not just a Minnetonka facility but a watershed facility that all residents in the watershed are able to use and are welcome at. 

ADJOURNMENT

There being no further business, the regular meeting of the Minnehaha Creek Watershed District Board of Managers was adjourned at 9:45 p.m.

Respectfully submitted,

Lee Keeley, Secretary