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HomeMy WebLinkAbout2008/03/17 - ADMIN - Minutes - City Council - Study Session IIT Stets, Louis Park OFFICIAL MINUTES CITY COUNCIL STUDY SESSION MARCH 17, 2008 The meeting convened at 6:30 p.m. Councilmembers present: Mayor Jeff Jacobs, John Basill, C. Paul Carver, Phil Finkelstein, Paul Omodt, Loran Paprocki and Susan Sanger. Councilmembers absent: None Staff present: City Manager (Mr. Harmening), City Assessor (Mr. Bultema), Finance Director(Mr. DeJong), Fire Chief Stemmer, Community Development Director (Mr. Locke), Director of Inspections (Mr. Hoffman), and Recording Secretary (Ms. Hughes). 1. Pay 2009 Assessed Valuation Report Mr. DeJong presented the staff report. He stated this year's assessment process has been one of the most difficult in recent years because of the turmoil in the housing market. Mr. Bultema provided a comprehensive overview of the assessing process conducted by the City. He explained that single family homes are valued by a CAMA (computer assisted mass appraisal) system; a land CAMA system was introduced this year but is not being relied on at the present time. He noted as sales occur, they are verified and compared to the current period assessed value. Mr. Bultema stated that due to recent trends in the housing market, homes under $175,000 are starting to correct heavily and those values are being lowered. He stated that the City is required to appraise at 100% of market value, with an acceptable range of 90-105%. He noted that 95% is the defined target level. He stated that valuation notices were mailed today and there are 17,193 parcels of record in the City. He explained that each notice contains 2007 and 2008 information for property classification, market value, limited, value, improvement value, this old house, and taxable value. He noted that limited market value ends in 2009. Mr. Bultema explained changes in value on the 2008 assessment notices, and stated that single family residential is down slightly compared to last year and residential properties represent the vast majority of the total market value in the City. He indicated that commercial and industrial remains strong, while condos and townhomes are down. He stated that total valuation of the community is up 0.5%. Mr. Bultema presented 2007 residential sales data compiled from MLS records for St. Louis Park, Edina, Golden Valley, Hopkins, and Minnetonka. He noted that St. Louis Park is maintaining a good "average number of days on the market," as well as a very good "list to sale price." He stated that metro wide, the market is soft for homes under $175,000, while homes in the $225,000- $500,000 range remain stable. He indicated that staff has reviewed foreclosure information and there were 70 foreclosures in 2006, which is a healthy rate in terms of housing stock; the foreclosure rate in 2007 was 87. He stated that some areas in the north metro are approaching a 3.5% foreclosure rate. Study Session Minutes -2- March 17,2008 Mr. Bultema presented historical information with respect to median sale prices and stated that the City is in line with its peer cities and in the metro area as a whole. He stated that 93% of the parcels in the City are priced at $175,000 to $500,000. He explained that adjustments were made to the housing stock above $500,000 of 9.8% to match market sales and to bring their values in line with the 95% ratio; this will help to achieve equity in the valuation system. He stated that just over half of the residential parcels will see a decrease in market value, 30% of the parcels will see no change in value, and just fewer than 20% will have an increase in market value. He indicated that no neighborhood had any major transition in terms of valuation. Mr. Bultema discussed the periodic inspection cycle and noted that the State requires inspections be conducted on a five year cycle. He stated that this year they are working in the Lake Forest area. He noted that the most difficult attribute of real estate to get right in a mass system is the "fit and finish." Councilmember Sanger stated it would be helpful for the City Council to have talking points available in order to respond to resident calls. Mr. Bultema agreed to prepare talking points for the Council and noted that the City has expanded the time between mailing of the notices and the Board of Equalization from four weeks to six weeks, with the Local Board of Equalization on April 28, 2008. Councilmember Sanger stated there appear to be a number of properties where the valuation is low compared to the actual sale price of the property. Mr. Bultema explained that we have seen sales from 60% of the sale price up to 130% of the sale price, with the obvious goal of 95% as the target. He indicated that statistically, the City is doing a good job but there will always be outliers. Councilmember Sanger asked if there is a monitoring system in place to find those properties that are way off the mark. Mr. Bultema replied that all jurisdictions are required to report to the State; if the State or County determines the City is not doing its job, they will do a correction action. Councilmember Finkelstein expressed his thanks to staff for their excellent report and stated the information was very helpful. He stated the City should consider setting aside more time for the Board of Equalization this year, given the turmoil in the housing market. He also asked if the Council is up to date on its training. Mr. Harmening stated that we do meet the requirements with two council members having been through training. Mr. Bultema stated the first meeting is to take appeals under record; staff will then attempt to resolve as many appeals as possible. Study Session Minutes -3- March 17,2008 Mr. Harmening stated that Councilmembers Omodt and Finkelstein are the trained Council members. Mr. Bultema stated he will check to see if they are required to take any type of refresher course. Mr. Dejong presented a graphic representing a pie chart and stated it is important to remember that if your share of the pie remains the same, even if the size of the entire pie is larger, your share of taxes is going to remain the same. In other words, even if the entire pie went down 10%, if everything stays the same on the levy side, the taxes would be essentially the same. Mr. Dejong stated the City is collecting $20 million in property taxes. Mr. Bultema stated that a rough rule of thumb is that residential properties pay 1.25%of their total value in tax. Councilmember Basill stated it will be important for residents to understand that homes in St. Louis Park are still holding their value, that average days on the market is far less than Golden Valley, Edina, Hopkins, and Minnetonka, and that sale prices were closest to the asking price when compared with peer cities. Council recessed to a Council Meeting at 7:25 p.m. Council reconvened the Study Session at 8:01 p.m. 2. Evaluation of Potential Fire Station Sites Mr. Harmening stated staff is continuing its evaluation of Fire Station site options. He explained that Council previously asked staff to analyze whether the City should stick with a two station concept or whether to go with a single station concept; the Council determined that the City maintain a two station concept. He added that staff has discovered that the general location of the City's fire stations works well. He indicated that staff is looking at the south station (station 1) as the location for the main station or satellite station; in terms of station 2, staff has been looking at various sites including the northwest corner of Louisiana Avenue and Cedar Lake Road, however, from an operational perspective, this site will require some compromises and may not be best suited for a fire station. He added that staff has looked at sites on the north side of the City, including the Eliot School site, and there have been some preliminary discussions with the school and they are interested in further discussions with the City. Mr. Harmening stated with respect to the south side site, the utilities department is currently housed at this location and the City will need to relocate this department, possibly at the Municipal Service Center (MSC) on Oxford. He stated the estimated cost for modifications to the MSC and two fire stations could reach $15-20 million. Mr. Locke stated the City hired an appraiser to do an appraisal of the Eliot School property; the appraisal is not yet complete, but the City has been given a range of$2-4 million. Councilmember Finkelstein asked if the school property has gone beyond its useful life. Study Session Minutes -4- March 17,2008 Mr. Locke replied that like any building of that age, there are significant issues to be addressed. Mr. Harmening stated the City's willingness to consider a lease arrangement is different and unique, and the City may wish to consider a lease/purchase agreement. Councilmember Carver stated this is a win-win situation for both parties and encouraged staff to give serious consideration to this option. Councilmember Sanger asked whether consideration should be given to a community center type of use for the school site given the fact that the City does not need the entire site for a fire station. Mr. Harmening stated the most important next step is for the City to talk to the neighborhood about this before making any assumptions. He indicated that it is staff's intent to hold meetings not only with the Elmwood neighborhood, but also with the Eliot neighborhood. Mayor Jacobs asked if any other sites or options are being considered. Mr. Harmening replied that one option includes building a main station at the current Station 1 location and then finding a suitable location for a satellite station on the north side of town. The main station would have fire apparatus and personnel, including administrative services (meeting rooms, training rooms, etc.) and the satellite station would house crew and apparatus only. Councilmember Basil concurred with Councilmember Carver's comments regarding a lease/purchase agreement with the school. Mr. Hoffman stated that survey work and traffic studies are being done at the present time. Mr. DeJong stated that there are distinct advantages to cities issuing bonds in increments of less than $10 million and recommended breaking the project into two stages; this will make it much easier to market the bonds. He added there are a lot of different financing mechanisms available to the City. There was Council consensus to conduct neighborhood meetings in order to obtain resident input and to schedule another meeting with the School District representatives. The meeting adjourned at 8:32 p.m. ice% Nancy Stroth, City Clerk J. Jaco e s, Mayor JIf St. Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL MEETING MARCH 17, 2008 1. Call to Order Mayor Jacobs called the meeting to order at 7:33 p.m. Councilmembers present: Mayor Jeff Jacobs, John Basill, C. Paul Carver, Phil Finkelstein, Paul Omodt, Loran Paprocki and Susan Sanger. Staff present: City Manager (Mr. Harmening), City Attorney (Mr. Knetsch), Assistant Zoning Administrator (Mr. Morrison), and Recording Secretary (Ms. Hughes). Others present: County Commissioner Gail Dorfman. 2. Presentations 2a. Barb Obershaw Certificate of Appreciation Mayor Jacobs presented a Certificate of Appreciation to Barbara Obershaw for her years of service as President of the TwinWest Chamber of Commerce. Mayor Jacobs expressed the City Council's thanks and appreciation to Ms. Obershaw for her effective and dedicated leadership on behalf of the City. Ms. Obershaw introduced Bruce Nustad, new President of TwinWest, along with board member, Dan Goldman, and past board member,Jan Kruchoski. 3. Approval of Minutes 3a. Study Session Minutes February 25, 2008 The minutes were approved as presented. 3b. City Council Minutes March 3, 2008 It was noted on page 2, item 4, the last paragraph before the motion, should state: "Mr. Harmening requested Council meet for a closed executive session after the Council meeting to update Council on Pawn America litigation." The minutes were approved as amended. 3c. Closed Executive Session Minutes March 3, 2008 The minutes were approved as presented. City Council Meeting -2- March 17, 2008 4. Approval of Agenda and Items on Consent Calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. 4a. Resolution No. 08-041, Traffic Study No. 610: Authorize Permit Parking Restrictions 3755 Glenhurst Avenue South. 4b. Certificate of Correction for the Hoigaard Village Addition Plat. 4c. Removed from the Consent Calendar and added to Regular Agenda Item 8b. (Resolution requesting Gambling Permit Renewal for St. Louis Park Hockey Boosters Association). 4d. Resolution No. 08-043, Final Payment - Contract 37-07 — Hardrives, Inc. (2006- 1000, 2006-1100 &2007-1400). 4e. Resolution No. 08-044, Final Payment - Contract 51-07 — Midwest Asphalt Corporation (2006-1101 & 2006-1102). 4f. Resolution No. 08-045, authorizing Special Assessment Transfers to the Permanent Improvement Revolving (PIR) Fund. 4g. Filing of Police Advisory Commission Minutes March 5, 2008. 4h. Filing of Planning Commission Minutes January 2, 2008. 4i. Filing of Planning Commission Minutes January 16, 2008. 4j. Filing of Parks and Recreation Advisory Commission Minutes December 19, 2007. 4k. Filing of Parks and Recreation Advisory Commission Minutes January 16, 2008. 41. Filing of Vendor Claims. Councilmember Omodt asked that item #4c be removed from the Consent Agenda and added to the regular Agenda. It was moved by Councilmember Carver, seconded by Councilmember Paprocki, to approve the Agenda and items listed on the Consent Calendar as amended to move Consent Item 4c to the regular Agenda as item 8b. The motion passed 7-0. 5. Boards and Commissions — None Mayor Jacobs stated that the Council interviewed a candidate earlier this evening for the Police Advisory Commission. It was moved by Councilmember Omodt, seconded by Councilmember Carver, to appoint Lekpea Kordah as youth member to the Police Advisory Commission for a term expiring August 31, 2008. The motion passed 7-0. City Council Meeting -3- March 17, 2008 6. Public Hearings 6a. Public Hearing and First Reading of an Ordinance for Vacation of a Portion of a Drainage and Utility Easement at 2535 and 2545 Huntington Ave. Mr. Morrison presented the staff report and stated staff recommends approving the first reading and setting the second reading for April 7, 2008. No speakers present. Mayor Jacobs closed the public hearing. Councilmember Sanger stated she was very pleased to approve this easement vacation, particularly in light of all the previous opposition, and added she is happy to see the property owners agreement with the neighbors that three lots are too many. It was moved by Councilmember Sanger, seconded by Councilmember Basil!, to approve first reading of an Ordinance approving the vacation of a portion of a drainage and utility easement over lots 1, 2 and 3, Biltmore Addition, and setting the second reading of the proposed ordinance for April Z 2008. The motion passed 7-0. 7. Requests, Petitions, and Communications from the Public—None 8. Resolutions, Ordinances, Motions and Discussion Items 8a. Active Living Resolution Resolution No. 08-046 County Commissioner Gail Dorfman appeared before the Council and stated she and Mayor Jacobs co-chair Active Living Hennepin County, a group formed in mid-2006 following a 2005 internal county recommendation to move forward on active living; and its successful application to Blue Cross Blue Shield for funding of community assessment and engagement. She stated she believed that St. Louis Park was one of the first cities to look at pedestrian level lighting and to focus on making sure the City was connected with ample opportunity to walk and bike. She stated this initiative was a private/public partnership intended to look at land use planning and how the City creates public and private spaces in a way ,that will build healthy behavior for all residents. She indicated the County passed a resolution at the Board level embracing active living principles and has now created an internal work group across all business lines to make sure it focuses on these principles and serves to enhance them over the years. She added this represents a new way of thinking about how we design our communities and encouraged the Council to approve the resolution supporting Hennepin County's Active Living Principles. It was moved by Councilmember Sanger, seconded by Councilmember Basil!, to adopt Resolution No. 08-046, supporting Hennepin County's Active Living principles The motion passed 7-0. City Council Meeting -4- March 17, 2008 8b. Resolution Gambling Permit Renewal for St. Louis Park Hockey Boosters Association Resolution No. 08-042 Mr. Harmening presented the staff report for renewal of a Gambling Premises Permit for the St. Louis Park Hockey Boosters Association operating at Bunny's Bar & Grill, 5916 Excelsior Boulevard, for the duration of May 1, 2008 —April 30, 2010. It was moved by Councilmember Carver, seconded by Councilmember Finkelstein, to adopt Resolution No. 08-042, approving issuance ofa premises permit for lawful gambling to be conducted by St. Louis Park Hockey Boosters Association operating at Bunny's Bar&Grill, 5916Excelsior Blvd., St. Louis Park. The motion passed 5-0-2(Councilmembers Omodt and Basill abstained). 9. Communications Mayor Jacobs expressed his thanks to the organizers of the "Empty Bowls" event and added the event was very well-attended. Mayor Jacobs expressed his thanks to everyone who attended the Lions Pancake Breakfast held last Sunday. Mayor Jacobs expressed his personal condolences as well as the City's condolences to the families who lost their homes to fire over the weekend. He strongly encouraged all residents to make sure their smoke detectors are in proper working order and stated that the smoke detector saved a life in one of the fires over the weekend. He commended the police and fire personnel for their efforts at the fires. Councilmember Carver expressed his thanks to the first responders at the house fires, including Golden Valley. 10. Adjournment The meeting adjourned at 7:54 p.m. x/44.7— Nancy Stroth, City Clerk Jeff co , ayor