MINUTES OF THE REGULAR MEETING OF

THE MINNEHAHA CREEK WATERSHED DISTRICT

BOARD OF MANAGERS

May 26, 2011

CALL TO ORDER

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

MANAGERS PRESENT

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

MANAGER ABSENT

Pamela Blixt.

OTHERS PRESENT

Eric Evenson, District Administrator; Mark Ten Eyck, Land Conservation Program Manager; James Wisker, District Planner/Program Coordinator; Aldis Kurmis, District Cost Share Program Specialist; Michael Panzer, District Consulting Engineer; Michael Welch, Assistant District Counsel.

MATTERS FROM THE FLOOR

None.

APPROVAL OF AGENDA

Mr. Evenson noted that item 12.1, a closed session to discuss land conservation items, could be pulled from the agenda and requested that item 11.6, the public hearing and resolutions for purchase of property in the Six Mile Marsh subwatershed, should be moved up to immediately after item 11.2 on the agenda.  Manager Keeley moved, seconded by Manager Olson, to approve the agenda as amended.  Upon vote, the motion carried.

CONSENT AGENDA

Manager Casale requested the removal of the May 5 draft meeting minutes from the consent agenda and Manager Keeley requested that the May 12 minutes be removed.  Manager Miller moved, seconded by Manager Keeley to approve the remainder of the items on the consent agenda, consisting of:

Adoption of resolution 11-043, adopting revised stormwater management and administrative rules:

NOW, THEREFORE, BE IT RESOLVED that the Minnehaha Creek Watershed District Board of Managers hereby adopts the attached amended Stormwater Management and Administrative rules, effective on June 1, 2011; and

THEREFORE BE IT FURTHER RESOLVED that the Board directs the Administrator to publish notice of the adoption of the amended rules, mail a copy of the amended rules to the governing body of each city affected by the amended rules and public transportation authorities with jurisdiction in the watershed, and file a copy of the amended rules with the Hennepin County Recorder and the Carver County Property Records Department.

Adoption of resolution 11-044, authorizing the administrator to execute a cost-share agreement for a shoreline stabilization project at 3516 Ivy Place in the City of Orono:

NOW, THEREFORE, BE IT RESOLVED that the Minnehaha Creek Watershed District Board of Managers approves a cost-share grant of $9,957 to Sherry White for bioengineered stabilization of the shoreline of her property at 3516 Ivy Place in Orono, and directs the District Administrator to develop an agreement for review and approval by the Board of Managers with the property owner which outlines the rights and responsibilities of each party and the terms of reimbursement of 75 percent of total project costs, not to exceed $9,957, and conditions reimbursement on compliance with applicable District permit requirements.

Adoption of resolution 11-045, approving a cost-share grant to the City of Mound for a road-reconstruction project:

NOW, THEREFORE, BE IT RESOLVED that the Board of Managers approves a grant to the applicant 50 percent of the total costs associated with stormwater improvements not to exceed $30,787 under the MCWD’s Low-Impact Redevelopment Program in accordance with the terms of the proposed final funding agreement, for the incorporation of a stormwater quality treatment structure for stormwater management benefits in excess of District regulatory requirements; authorizes the Board President, on advice of counsel, to sign the funding agreement and all other documentation required to implement the grand award; and authorizes the MCWD administrator to take all other steps necessary to implement the funding agreement in accordance with its terms.

Adoption of resolution 11-046, authorizing the administrator to enter into a memorandum of understanding with the City of Richfield for the development of the Taft-Legion improvement project:

NOW, THEREFORE, BE IT RESOLVED that the Minnehaha Creek Watershed District Board of Managers hereby authorizes the District Administrator to enter into a memorandum of understanding with the City of Richfield on the development of the Taft-Legion capital improvement project; and

BE IT FUTHER RESOLVED, that the Minnehaha Creek Watershed District Board of Managers hereby authorizes the District Administrator to enter into a contract with Wenck Associates to provide feasibility coordination services for an amount not to exceed $16,000.

Adoption of resolution 11-047, authorizing the administrator to enter a contract for completion of the Minnehaha Creek subwatershed volume and load reduction study:

NOW, THEREFORE, BE IT RESOLVED that the Minnehaha Creek Watershed District Board of Managers hereby authorizes the District Administrator to enter into a contract with Wenck Associates for an amount not to exceed $203,000 for the completion of the Minnehaha Creek Subwatershed volume and load reduction study.

Upon vote, the motion carried.

REGULAR AGENDA

Committee and Task Force Reports

 Manager Casale reported that the Building Committee met on May 17 to discuss the collaborative development of a new District headquarters with the City of Minnetonka. The committee directed development of an agreement to be considered later in the agenda.

Mr. Evenson reported on a meeting he and Manager Olson attended with the mayors of Minnetrista and Victoria.  He said the meeting was good, and did not produce any new issues or developments.  Manager Olson added that one of the mayors suggested that the District not bail out people who were in difficult real estate situations. 

Manager Miller reported from the most recent meeting of the Hennepin County Community Works Southwest Light Rail Corridor task force. He said the Bonestroo firm presented a report on planned capital improvements associated with the light rail line, which totaled $795 million.  He also said that the West Metro Chamber of Commerce attended the meeting and made a presentation regarding employment issues around the light rail and expressed disappointment with the legislature’s failure to support light rail transportation.

(Manager Shekleton arrived at this time, 6:58 p.m.)

Discussing meeting schedules, Mr. Evenson stated that a June 8 meeting with the mayors of Wayzata and Orono is already on the books.  He said the Hydrodata Committee needs to meet, but not until late June and the Audit Committee will meet at the District offices at 6 p.m. on June 9 to discuss the audit. 

Meeting Minutes

Manager Casale requested that changes to the May 5 minutes be prepared according to his direction for redistribution for consideration on an upcoming agenda.  Manager Keeley stated that she did not have an opportunity to review the minutes of May 12 and wished to move their consideration to an upcoming meeting as well.  Approval of both sets of minutes was deferred to the June 2 Board meeting. 

Stormwater Cost Share for 405 Comstock Lane North, Plymouth

District Cost Share Specialist Aldis Kurmis appeared before the Board and presented the request for board action and resolution, stating that staff’s recommendation is for the maximum contribution under the stormwater BMP program, $2,500.  Mr. Kurmis stated that the applicant, Heidi Heiland, was present and wished to make a presentation. 

Mr. Kurmis stated that the project is a pervious paver installation that uses a special tiered installation and extra-large storage area to compensate for the fact that there are type C soils in the area.  He said the applicant expects to spend upward of $20,000 on the project. The Citizens Advisory Committee reviewed the project and recommended a contribution of $4,500.

Ms. Heiland appeared before the Board and made a presentation of her plans, describing the stormwater management systems she has installed on the home-office property and her plans for publicizing the pervious paver installation.  She requested that the Board authorize the maximum cost-share contribution the Board is willing to contribute to the project, which will cost roughly $28,750, including $5,500 of video work and video production to maximize the educational opportunities associated with the project. 

In response to a question from Manager Olson, Ms. Heiland stated that she would not be doing any of the work herself and thereby claiming the $12 an hour contribution for homeowner labor on a project.  Manager Casale clarified that Ms. Heiland’s property is fundamentally residential rather than office.  Manager Miller moved, seconded by Manager Keeley, to adopt resolution 11-048, approving a cost-share request for 405 Comstock Lane North in Plymouth:

NOW, THEREFORE, BE IT RESOLVED, that the Minnehaha Creek Watershed District Board of Managers authorizes the District administrator to execute an agreement on advice of counsel with the property owner which outlines the rights and responsibilities of each party and the terms of reimbursement of 50 percent of total project costs, not to exceed $2,500, and conditions reimbursement on compliance with applicable District permit requirements, and authorizes District outreach staff to spend up to $5,500 from its budget toward the promotion of the project upon approval by the District outreach program manager of an appropriate agreement. 

Upon vote, the motion carried. 

Manager Miller clarified that the District and Ms. Heiland would jointly own the rights to use any video produced for outreach purposes.  Ms. Heiland concurred.

Public Hearing:  Authorization to Order a Project to Purchase Property in Six Mile Marsh Subwatershed and Request Funds Under the Master Loan Agreement with Hennepin County

Mr. Ten Eyck appeared before the Board and presented two resolutions related to the same matter.  He stated that the staff pursued purchase of the Halverson properties at 7901 and 8015 Halsted Drive in Minnetrista, a total of approximately 112 acres (the Properties).  Mr. Ten Eyck said the proposed purchase price for fee title, to be offered in a purchase agreement tendered to the Halversons, is $2.25 million. He added that financing for the project is proposed to come from the District’s master loan agreement with Hennepin County, which is the subject of the second resolution before the Board.  Mr. Ten Eyck stated that he could make a presentation of the project, but the proposal before the Board is in keeping with the Board’s previous direction.

Manager Calkins opened the public hearing to inform the Board’s consideration of whether to order the project.  No one appeared to comment.

Responding to a question from Manager Miller, Mr. Ten Eyck clarified that the District is informing Minnetrista, the local government unit, of the proposed purchase.  Mr. Ten Eyck further explained that the District presented the proposed purchase to the city planning commission, which favorably received it and indicated that the project is in accord with the city’s comprehensive plan.  Mr. Ten Eyck added that, as a courtesy, staff will be presenting the project to the city council at an upcoming meeting, and that if the city council has major issues with the proposed purchase, the purchase agreement allows the Board of Managers to reconsider the purchase. 

The managers discussed opportunities for resale of a portion of the property while preserving its conservation value and the importance of ongoing coordination of financing with Hennepin County. 

Manager Calkins closed the public hearing.  Manager Miller moved, seconded by Manager Keeley, to adopt resolution 11-052A, ordering the purchase of the Halverson property:

THEREFORE, BE IT RESOLVED that pursuant to Minnesota Statues § 103B.251 and the WRMP, acquisition of the Halverson property is ordered and the District administrator is directed to finalize and sign a purchase agreement consistent with the essential terms as proposed to the Halversons and acquire the fee title to the Halverson property for $2,250,000.  The administrator, on advice of counsel, may make minor, non-substantive changes to the documents as warranted in completing the transaction.  Be it further resolved that the Board of Managers takes the following additional actions to execute the transaction:

1. 1.       Authorizes payment of earnest money to the seller in the amount of $45,000;
2. 2.      Upon satisfaction to the District administrator of all requirements and responsibilities within the purchase agreement, authorizes final payment in the amount of $2,205,000 plus associated transactional costs related to title, escrow, closing costs, environmental hazard assessment, appraisal, legal, property acquisition and the like;
3. 3.      Authorizes the District administrator to sign and record the fee title ownership subject to the parameters set by the Board of Managers;
4. 4.      Authorizes the District administrator to sign all necessary documents pertaining to the execution and closing of the purchase agreement;
5. 5.      Authorized the District administrator to order a survey of the property and pay for such survey services;
6. 6.      Authorizes the District administrator to have the property added to the District’s insurance policy; and
7. 7.      Authorizes the District administrator to take all steps necessary to execute and ensure District performance of its rights and responsibilities under the purchase agreement.

Upon vote, the motion carried.

Manager Miller moved, seconded by Manager Olson to adopt resolution 11-052B, and approving the financing for the purchase under the master loan agreement with Hennepin County (the Agreement): 

THEREFORE BE IT RESOLVED BY THE DISTRICT BOARD OF MANAGERS, AS FOLLOWS:

Section 1.       Purpose and Expectations.  The Board of Managers declares that it intends for the District to acquire the Properties with available funds and to obtain reimbursement for such expenditures out of the proceeds of the financing contemplated by the Agreement.  This declaration is a declaration of official intent adopted pursuant to Treasury Regulations § 1.150-2.

Section 2.       Timing and Amount of Reimbursement.  Reimbursement allocations made under the provisions of this resolution will be made within 36 months of the date of the county financing and will not exceed $2,250,000 in aggregate principal amount plus associated transaction costs.  The District administrator is responsible for the timing and amount of the reimbursement allocations.  Each allocation will be evidenced by an entry on the official books and records of the District maintained for that purpose.

Section 3.       Request for Financing.  The Board of Managers hereby requests that the county provide financing in the amount $2,250,000 plus associated transactional costs related to title, escrow, closing costs, environmental hazard assessment, appraisal, legal, purchase negotiation and the like.  The Board President or other authorized officer, on advice of counsel, may execute the note contemplated by the Agreement.  The full faith and credit and taxing powers of the District are pledged to the payment thereof.  The Board president and other authorized officers of the District may execute such other documents as necessary to carry out the transaction described herein.

Section 4.       Administrator’s Authority.  The District administrator is authorized to take all actions necessary for the submittal and processing of this financing request except as explicitly reserved to the Board of its officers hereunder.

Upon vote, the motion carried.

Release of Draft Capital Improvement Plan for 30-Day Comment Period

Mr. Wisker appeared before the Board and presented the item, requesting authorization to release the draft 2012-2014 capital improvement plan (CIP) for a 30-day comment period.  Mr. Wisker explained that the District releases its CIP every year for review by municipalities and the counties in the watershed and that under the three-year capital-planning process established by the Board, the only changes the District is looking at are to the 2014 slate of projects.  Mr. Wisker explained that the two projects added to the CIP had previously been removed.  He explained that the Six Mile Marsh infiltration project, SMC1, has been moved ahead in the schedule because staff has been contacted by a willing landowner who can facilitate the project. 

Mr. Wisker went on to explain that there are three projects for Schutz Lake struck from the 2014 schedule. They have been removed because Schutz Lake is very close to meeting its phosphorus goal and staff believes that regulatory efforts and cost-share projects will allow the lake to meet its the target load.  Mr. Wisker pointed out that the total funding for the 2014 CIP request is $7.2 million. 

In response to a question from Manager Olson, Mr. Wisker explained that the total shown for 2011 in his spreadsheet is not accurate because projects were changed during the course of the year and the document is for planning purposes, not to show expenditures in the program.  Manager Olson moved, seconded by Manager Shekleton, to adopt resolution 11-050, authorizing the administrator to release the draft CIP:

NOW, THEREFORE, BE IT RESOLVED that the Minnehaha Creek Watershed District Board of Managers hereby authorizes the District administrator to release the draft 2012-2014 capital improvement plan for 30-day comment.

Upon vote, the motion carried.

Cooperative Agreement with Plymouth for Gleason Lake Projects

Mr. Wisker explained that the only reason approval of the cooperative agreement with the City of Plymouth is on the discussion agenda this evening is that staff had been waiting for a cost estimate from the District engineer.  Mr. Wisker explained that the number received is $43,320, allowing staff to forward the resolution requesting authorization to enter the cooperative agreement and directing the administrator to enter a contract with Wenck Associates for design and construction oversight services for the project.  Mr. Wisker explained that District staff and counsel attended the Plymouth City Council meeting earlier in the week and the council approved the cooperative agreement on its consent agenda.  Manager Olson moved, seconded by Manager Shekleton, to adopt resolution 11-051, authorizing the administrator to enter the cooperative agreement with the City of Plymouth for the Gleason Lake projects:

NOW, THEREFORE, BE IT RESOLVED that the Minnehaha Creek Watershed District Board of Managers hereby authorizes the District administrator to enter into a cooperative agreement with the City of Plymouth on the development of the GL-4, GL-6 and Chelsea Woods stream channel project; and

NOW, THEREFORE, BE IT RESOLVED that the Minnehaha Creek Watershed District Board of Managers hereby authorizes the District administrator to enter into a contract with Wenck Associates to provide design and construction oversight services for an amount not to exceed $43,320. 

The managers discussed the communications issues surrounding the possible violation at the Shadyview site in Plymouth.  Relative to a planned joint meeting with Hennepin County to discuss District policies and procedures and the District’s relationships with counties and cities, to be scheduled soon, the managers determined to take an approach that does not single out any particular issue with any particular city, but rather presents the District’s activities overall, with the District prepared to respond to questions on specific matters as they arise.  Upon vote, the motion carried.

Public Purpose and Benefit of Joint Minnetonka District Facility and Cooperative Agreement for Design

Mr. Evenson presented the agenda item, explaining that there are two components to the request for board action: Approval of the public purpose and benefit of a joint facility for the District and the City of Minnetonka and approval of a cooperative agreement for sharing the costs of development of a schematic design for a purposed joint facility.  Mr. Evenson explained that District counsel and staff and counsel from Minnetonka reviewed the draft cooperative agreement and made a few changes, which are included in the revised draft agreement presented to the Board this evening.  Mr. Evenson explained that the revised agreement calls for the District and the city to share the $40,000 cost of the development of schematic design documents by a consultant.  The managers discussed the status of the project and determined that the term “schematic design documents” is not the best name for the next step in the development of the project.  Mr. Welch explained that city staff provided the term with the understanding that schematic site design is a term of art in the architecture field that refers to what the parties need for the next step. 

In response to a suggestion from Manager Casale, the managers agreed that a recital needs to be added to the cooperative agreement stating the outcomes and the basis of understanding for the next steps that came out of the collaborative workshop with the city.  Manager Casale noted that it is important for the city and the District to work together in developing the design process to determine the best use of the entire property.  Manager Casale requested that Manager Calkins work with Mr. Evenson to draft the requested cooperative agreement recital.  Manager Casale moved, seconded by Manager Miller, to approve that portion of resolution 11-049 stating,

NOW, THEREFORE, BE IT RESOLVED that the Minnehaha Creek Watershed District Board of Managers hereby defines the public purpose of a joint facility with the City of Minnetonka as follows:

1. 1.      To encourage curiosity and learning through interactivity with the natural environment.
2. 2.      To tell the environmental and historical stories of Minnehaha Creek and its surroundings.
3. 3.      To serve as an example of water, land and energy stewardship.
4. 4.      To promote recreation interaction with the natural surroundings by offering relevant programs and amenities.
5. 5.      To provide a gathering place for a variety of public uses in a tranquil setting.

Be it further resolved, that the MCWD defines the public benefit of a joint facility with the City of Minnetonka as follows:

1. 1.      Greater access to the natural environment’s water resources and woodlands, as well as the community’s cultural history.
2. 2.      Broader community engagement and understanding of environmental and historical issues.
3. 3.      Leveraged financial resources for the city, MCWD and their taxpayers.
4. 4.      Expanded opportunities for partnerships with schools, civic groups, businesses, non-profits and other government entities.
5. 5.      Increased community connectedness with gathering spaces and amenities and bring people together.

In addition, District staff is directed to revise the cooperative agreement with the City of Minnetonka for the design of a joint facility to include the word “site” in the operative language.  Upon vote, the motion carried.

After further discussion, Manager Casale moved to reconsider and amend the prior motion and revise the cooperative agreement language to indicate that a “thematic site design document” should be developed, not a schematic site design.  Manager Miller seconded the motion.  In response to a question from Manager Calkins, Mr. Panzer stated that he did not believe that $40,000 for the development of the design for the property was excessive.  Upon vote, the motion carried.

ADJOURNMENT

There being no further business, the regular meeting of the Minnehaha Creek Watershed District Board of Managers was adjourned at 9:28 p.m.

Respectfully submitted,

Lee Keeley, Secretary