03-22-2017 Council Work Session Packet

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Item 04 — Work Session Memo To: Orono City Council From: Chief Correy Farniok Date: March 22, 2017 Re: Minnetonka Beach Police Services Agreement - Discussion In November 2015, discussions were started between Spring Park, Minnetonka Beach and Orono reference to possible changes in the police contract. The main discussion point was the current formula that is being used to determine the cost allocation to each city. Options were discussed in eliminating the cost allocation formula and have a similar contract as Mound that starts with a base price for services with annual increases. Mayors and City administrators from each city were invited to each of these discussions. Agenda items for the second meeting (January 19, 2016) included Cost History, Formula Options, Mound Model (contract), Impact of a 5% Cap and discussions on these items and if there were any other options to explore. The third and final meeting of this group was on June 28, 2016. Agenda items included recap of the two prior meetings and proposed changes to the current agreement. The meeting were started at Minnetonka Beach representatives request, however Minnetonka Beach did not attend two of the three meetings and discussions stalled. During the September 12, 2016, Minnetonka Beach Council meeting, the Mayor directed staff to send a letter of interest to Hennepin County Sheriff Office, Wayzata Police Department and South Lake Minnetonka Police Department to see if they would be interested in providing police services to Minnetonka Beach. I had representatives from each of these departments contact me and advise me that they had received the letter. In February 20171 was contacted and asked to start the discussion once again. The first meeting with Minnetonka Beach representative's and Doug Reeder was on February 27, 2017 and discussion once again centered around the allocation formula and the fact that Minnetonka Beach feels that they have been paying too much for police services because of the formula, specifically the property value portion. After a lengthy discussion it was agreed both would look at possible solutions and a base price for a new contract. On March 13, 2017 we met again and information was provided that broke down the police budget and allocation for a starting base price for police services. During the meeting Minnetonka Beach representatives said that they wanted a base price that they could bring back to their council meeting that evening. After a productive and at times energetic discussion, Doug