HomeMy WebLinkAbout2010/10/11 - ADMIN - Minutes - City Council - Study Session f/fSt. Louis Park OFFICIAL MINUTES
MINNESOTA CITY COUNCIL STUDY SESSION
ST. LOUIS PARK, MINNESOTA
OCTOBER 11, 2010
The meeting convened at 6:30 p.m.
Councilmembers present: Mayor Jeff Jacobs, Phil Finkelstein, Anne Mavity, Paul Omodt, Julia
Ross, Susan Sanger, and Sue Santa.
Councilmembers absent: None.
Staff present: City Manager (Mr. Harmening), Community Development Director (Mr. Locke),
Director of Public Works (Mr. Rardin), Director of Inspections (Mr. Hoffman), Organizational
Development Coordinator (Ms. Gothberg), Housing Supervisor (Ms. Schnitker), Facilities Manager
(Mr. Altepeter), Communications Coordinator (Mr. Zwilling), and Recording Secretary (Ms.
Hughes).
1. Future Study Session Agenda Planning— October 25, 2010
This item was moved to the end of the agenda.
2. Highway 100 Project Update
Mr. Rardin presented the staff report and five concepts developed jointly by Mn/DOT, the City,
and the County. He reminded the Council that this is Mn/DOT's project and Mn/DOT will be
leading the project. He also presented a project summary and goals for the Highway 100 project.
He advised that Concept A (Base) represents a "do nothing" alternative with only two bridge
replacements, while Concept E represents the most expensive reconstruction design. He noted that
it was his feeling Concept E is not being considered by Mn/DOT and Mn/DOT is likely
considering a project that is somewhere between Concept A and Concept E. He stated that Concept
E is the only plan that takes the homes on Toledo Avenue. He added that Mn/DOT will be holding
a public meeting in November or December; in the meantime, staff will continue to evaluate the
options pending Mn/DOT's modeling of the project. He requested that Council provide any input
to staff on the concepts developed by Mn/DOT. He added that further information is available on
Mn/DOT's website as well as the City's website.
Council discussed the modeling of the project and the public input process.
Councilmember Finkelstein expressed concern about Mn/DOT's apparent indifference to the
homeowners that may be impacted by the project.
Councilmember Sanger stated that Mn/DOT previously stated it would construct noise walls and
asked if the project will include installation of noise walls.
Mr. Rardin replied that he did not know at this time. He stated that staff will be working with
Mn/DOT on different options of what will and will not be included in the project and pointed out
that the concepts represent significantly scaled back versions of previous iterations.
Study Session Minutes -2- October 11, 2010
Councilmember Sanger stated that when Mn/DOT did the temporary fix, the lanes were made
narrower. She asked if Mn/DOT will correct the narrow lanes.
Mr. Rardin replied that he believed the narrow lanes will be fixed and agreed to ask Mn/DOT about
this issue.
Mayor Jacobs asked if staff had any sense of the timing for notifying the property owners on Toledo
Avenue.
Mr. Rardin stated that between now and the end of 2011, Mn/DOT will be looking to winnow the
concepts down to one preferred alternative.
Councilmember Sanger stated that if Mn/DOT does not buy the Toledo Avenue homes, the City
may wish to consider what it can offer in terms of rehab assistance.
3. Municipal Service Center (MSC) Renovation Project Update
Mr. Hoffman presented the staff report and introduced Mr. Altepeter. He reviewed the financial
report for the MSC project and advised that overall, the project was completed within the budgeted
$9.5 million. He stated that Change Order #6, which will require formal Council action, includes
the final group of changes needed to occur during completion of construction. He indicated that
there are four outstanding items not included in Change Order#6 which staff and the City Attorney
do not deem acceptable involving work claimed by the excavation subcontractor. He explained that
one of the items is a claim for lost revenue for not selling sand they expected to mine from the site;
the City Attorney and project architect have stated that there is no basis for this claim. He then
discussed considering the proposed retrofitting of the existing MSC bay lighting to energy efficient
fluorescent fixtures; this work was initially removed from the MSC design to reduce cost and explore
grant funding sources. The existing Metal Halide bulb fixtures provided poor lighting and are not as
energy efficient. Replacement would be done utilizing approximately $50,000 of the remaining
project balance with the work being done separate from the general contractor, therefore not
requiring a change order. He advised that the payback on the new lighting is approximately seven to
ten years; in addition, rebates will be available to help offset some of the cost.
It was the consensus of the City Council to direct staff to proceed with the proposed MSC lighting
improvements and to use the remaining MSC project balance funds to pay for this work.
4. Update on PPL/Louisiana Court Financial Plan
Mr. Locke presented the staff report and stated since the July 12th Council discussion regarding the
financial and operational status of PPL's Louisiana Court development, staff has been working with
PPL to complete a refinancing plan consistent with Council's direction. He advised that the City's
$500,000 contribution to the project is intended to reduce the size of the new bond issue as well as
to increase the investment in capital improvements to the development. He indicated the first
priority is to get the debt reduced, and staff is requesting that Council be flexible in how the
Study Session Minutes -3- October 11, 2010
$500,000 is used until it is determined what the other partners are doing as well as the possible grant
from the Minnesota Housing Finance Agency.
Councilmember Finkelstein asked if there is anything that can be done to incent the owners to sell
the property.
Mr. Locke advised that it will be ten years before a sale of the property would be practical. He
reiterated that the proposed financial plan will cut the debt in half, will provide additional capital
dollars for improvements, and will provide a shallow rent subsidy pilot program; all of these
components will put the project in a much better financial situation.
Councilmember Ross expressed her support for the financial plan and stated that she recently toured
the property which provided her with a better idea of what needs to be accomplished in terms of
capital improvements to bring the units up to a more livable standard.
Councilmember Sanger stated that one of her concerns continues to be the high vacancy rate and
requested further information regarding the City's exit strategy with respect to the shallow rent
subsidy program.
Ms. Schnitker explained that the shallow rent subsidy program is intended to be a three year pilot
program; the program will be reassessed at the end of the three year period to see if the program is
meeting the needs of the community and to see if the program has helped reduce the vacancy rates.
She added it is reasonable to expect that the City will not have to continue the shallow rent subsidy
program after three years.
Councilmember Santa stated that she wants to make sure the City is not funding this project only to
the minimum, and that the City is maintaining a high quality and diverse housing stock.
Ms. Schnitker reiterated that the financial plan provides an opportunity to lower the property's debt
and provide more cash flow to address the maintenance and capital improvement needs over time.
She stated that the focus now should be on addressing the vacant units to improve the marketability
of the project, which will generate more revenue to help with the project's cash flow. She added that
PPL has been given an indication from traditional funders that there will be an opportunity for more
grant money for rehab in the future.
Councilmember Mavity stated that she wants this project to be successful but that she continues to
have some general concerns about the City engaging in a subsidy program. She stated the City needs
to have an exit strategy for the subsidy program.
Ms. Schnitker stated that in the past, the City has had a program similar to the shallow rent subsidy
program and when the funds ran out, the program was ended.
Councilmember Sanger stated that the refinancing plan will allow PPL to do the capital
improvements to the property and provide more cash flow. She questioned whether the City should
Study Session Minutes -4- October 11, 2010
consider only providing the debt reserve equity contribution and capital improvements contribution
at this time in order to see if this contribution is enough to reduce the vacancy rate.
Councilmember Mavity stated the shallow rent subsidy program will provide an immediate benefit
to the property,while the capital improvements will take time.
It was the consensus of the City Council to direct staff to initiate the formal refinancing approval
process.
It was the consensus of the City Council to authorize the Housing Authority to administer the
shallow rent subsidy program.
5. City Council Governance Model and Norms
Ms. Gothberg facilitated a discussion with the Council regarding the appropriate use of staff
resources, Council's working relationship and the Council norms.
Staff was asked to return to the City Council with proposed alternatives for future communications.
1. Future Study Session Agenda Planning— October 25, 2010
Mr. Harmening presented the proposed study session agenda for October 25`s. He stated that the
Council may wish to accommodate Safety in the Park's request for an audience with the Council
and invite them to the study session on October 25t. He indicated it will be helpful for staff to
discuss with the Council the process used to analyze and respond to the information forthcoming
from the three studies from the County.
It was the consensus of the City Council to invite Safety in the Park to attend the study session on
October 25, 2010.
Mr. Harmening advised that a special study session is proposed for October 18th at 6:30 p.m. in
order to discuss the water utility.
Mr. Harmening stated that Councilmember Mavity received an email from Nancy Rose on behalf of
Friends of Bass Lake expressing concern about the condition of the lake. He stated that the Council
should have a study session discussion regarding storm water and water management; Friends of Bass
Lake could be invited to that meeting.
Mayor Jacobs stated that this should be a broader discussion to include Hannan Lake and Twin
Lakes.
It was the consensus of the City Council to invite all interested parties to attend the Council study
session regarding water quality. It was also the consensus of the City Council to request that
representatives of the Watershed Districts attend this study session.
Study Session Minutes -5- October 11, 2010
Mr. Harmening reported that Dairy Queen is changing its proposal in order to come into
compliance with the drive-thru issue and will not be on the Council agenda on October 18th.
Councilmember Sanger requested that the Council have a study session discussion regarding the
establishment of a registry for domestic partners in St. Louis Park.
6. Communications/Meeting Check-in (Verbal)
None.
The meeting adjourned at 10:22 p.m.
Written Reports provided and documented for recording purposes only:
7. Update on Tax Forfeited Property Purchase— 2944 Brunswick Avenue South
8. Hennepin County Environmental Response F d E( RFl) Grant Application for 2005
Louisiana Ave. South i
Nancy Stroth, etfty Clerk Jeff Jacob Mayor