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HomeMy WebLinkAbout2011/09/26 - ADMIN - Minutes - City Council - Study Session I/f St. Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL STUDY SESSION ST. LOUIS PARK, MINNESOTA SEPTEMBER 26, 2011 The meeting convened at 6:33 p.m. Councilmembers present: Mayor Jeff Jacobs, Phil Finkelstein, Anne Mavity, Paul Omodt (arrived at 6:56 p.m.), Julia Ross (arrived at 6:44 p.m.), Susan Sanger, and Sue Santa. Councilmembers absent: None. Staff present: City Manager (Mr. Harmening), Deputy City Manager/Director of Human Resources (Ms. Deno), Director of Public Works (Mr. Rardin), Senior Planner (Mr. Walther), Director of Community Development (Mr. Locke), Director of Inspections (Mr. Hoffman), Communications Coordinator (Mr. Zwilling), Economic Development Coordinator (Mr. Hunt), Controller (Mr. Swanson), Housing Programs Coordinator (Ms. Larsen), Housing Supervisor (Ms. Schmtker), Engineering Project Manager (Mr. Olson), Utilities Superintendent (Mr. Anderson), Public Works Coordinator(Mr. Merkley), and Recording Secretary(Ms. Hughes). 1. Future Study Session Agenda Planning—October 10, 2011 Mr. Harmemng presented the proposed study session agenda for October 10`h Councilmember Santa requested that staff provide sufficient information with respect to the discussion regarding Hardcoat's request for additional CAP funding. She noted that CAP funding previously provided to Hardcoat exceeded the usual guidelines. Councilmember Sanger requested that Council hold a future discussion regarding the dial-a-ride service and any feedback received to date. 2. Housing Improvement Programs Evaluation Mr. Locke presented the staff report and stated that the Housing Programs Evaluation is intended to evaluate the effectiveness of the City's housing improvement programs in accordance with the City's commitment to provide a well maintained and diverse housing stock. Council agreed that the format of the report and analysis of the programs was very helpful. Ms. Schnitker pointed out that the only program not included in the evaluation is the Louisiana Court Max 200 Shallow Rent Subsidy program. She advised that the rent subsidy program for Louisiana Court should have been included, but noted that the City has not yet spent any money on that program. She stated that as of last month, there were only two vacancies at the property and the first priority for residency has been applicants applying through the management office. She felt that the new property manager, combined with implementation of the recent property improvements, is helping and the new property management company has a leasing agent on-site whose pnmary responsibility is to lease the units. She added that the property manager has only been managing the property since June. Councilmember Mavity felt that the Louisiana Court Shallow Rent Subsidy program should be evaluated in the future to determine if the program is needed in light of the success that the new property management company has had in renting the units. She stated that Federal funding of Study Session Minutes -2- September 26, 2011 the CDBG program may be reduced in the future and requested information about the impact of funding reductions. Ms. Schnitker stated that staff has heard that future funding of the CDBG program will be maintained at its existing level and it appears unlikely that future CDBG funding will be totally cut. She indicated that the emergency repair program and the low income rehab program are critical programs that provide assistance to the lowest income resident homeowners who desperately need it. She added that, based on Council feedback, these programs would continue to get highest priority in the City's allocation of CDBG funds should funding levels be cut in the future. Councilmember Sanger stated that the City previously had a demonstration project (Targeted Neighborhood) that focused on exterior improvements in the Blackstone neighborhood and felt this project was successful. She suggested that the City consider doing a similar project in another neighborhood that is in need of improvement and felt that this type of project not only provides benefit to the homeowner but to the entire block as well and could increase property values. Ms. Larsen indicated that part of the reason the Blackstone project worked so well was that it was just 100 households and it would be difficult to find a similar neighborhood that is so well- defined for a project like this. There was discussion on establishing a portion of the neighborhood for targeted programming. Staff indicated that they would work on defining appropriate criteria to identify a neighborhood or area. Council discussed the current rental market and owner occupied housing. Councilmember Mavity stated that there may be other strategies the City could use to encourage home ownership. Councilmember Finkelstein stated that the City may want to consider some type of program that supports rent with an option to purchase. He requested information regarding the "Move Up in the Park"program and questioned whether the City should revisit the 120%MAI guideline. Ms. Larsen explained that the City has received comments from residents that they thought the income guideline was too low and that the City should go up to 150%-180% of median income because lower income residents could not afford to make improvements. She indicated that 25% of the residents who made expansions to their property since 2005 utilized the Move-up Loan and were able to qualify at the 120% guideline, so this did not appear to be preventing people from using the program. Councilmember Sanger disagreed and stated that she has heard complaints about the 120% guideline particularly now when people are uneasy about spending money and that raising the threshold would attract more participants. She felt that this was the only program that really gets at the City's highest priority housing. Mr. Locke stated that it is important to recognize that this is not a typical loan program and involves a forgivable loan with no interest, which makes this an expensive program for the City. Councilmember Santa stated that the senior housing paradigm is shifting towards keeping people in their homes and suggested that the City consider a one level remodel program for accessibility Study Session Minutes -3- September 26, 2011 purposes that keeps people in their homes as long as possible and keeps long-time residents in their community, which lends stability to the neighborhood. She indicated that she has seen more multi-generational homes which have different needs and their household incomes may include mom and dad, the children, and also grandparents, which means their household income gets bumped up and the City should factor that in its housing goals for seniors. Councilmember Mavity suggested that the City be more proactive in looking for potential uses in the Louisiana Avenue and 394 vicinity and felt there could be a greater level of development taking place in this area. 3. Bader Development's Preliminary Tax Increment Financing (TIF) Application — Redevelopment of 3924 Excelsior Boulevard (former American Inn site) Mr. Locke presented the staff report and the concept plan for redevelopment of the former American Inn site. He then introduced Dean Dovolis, DM Architecture. Mr. Dovolis expressed his thanks to Council and City staff for all their help and stated that the Ellipse on Excelsior project has been successful and is enjoying full occupancy. He presented several architectural renderings of the proposed E2 project which will follow the original neighborhood guidelines of the Ellipse on Excelsior project. He noted that the E2 project will provide 73 parking stalls in the underground garage and 31 surface parking stalls, which is more than required under City Code, is intended to ensure adequate parking is available in the entire project, and to keep all parking within the development. He stated that the E2 building will include 58 units and is the same height as the original building. He then presented the shadow study results. Mr. Walther stated that during the neighborhood meetings, parking was the number one issue raised and residents commented that when patrons are looking for parking, residents have seen cars parking on France Avenue. He indicated that residents also commented that the former American Inn site is full during peak hours. He explained that Bader Development's parking study has indicated that when someone's car is parked by valet, the car is taken to the former American Inn site, so even if spaces are available on site, the valet has been instructed to park vehicles on the Amencan Inn site instead. He added that the City will do another parking study that will look at the whole site and will include parking counts as well. Councilmember Mavity expressed concern about the availability of parking not only when the development is complete but also dunng construction, particularly when the overflow parking lot at the American Inn site is removed. She added that the main concern of residents appears to be the cul-de-sac on Glenhurst and along France Avenue and suggested that the City consider having permit parking in this area. She requested that the City continue to remain sensitive to the neighborhood concerns. Councilmember Finkelstein stated that he felt the proposed plan represents a good use of the space and follows the City's plan for the neighborhood. He added that he felt the developer was working hard to deal with the parking issues. Councilmember Sanger indicated that her recollection was that Council wanted Excelsior Boulevard to remain primarily commercial and to reserve the American Inn site for commercial use. She asked if the City's goal of having a commercial use on the site is no longer relevant. Study Session Minutes -4- September 26, 2011 Councilmember Finkelstein stated that it is difficult to keep commercial uses going and if the City is going to insist on commercial, then the City ends up paying for it through increased TIF assistance. He indicated he would rather be realistic and have a use that fits in better with the overall development. Councilmember Sanger stated that she has no problem with providing TIF for environmental cleanup but did not recall that the EDA provides TIF financing for parking structures. Mr. Hunt advised that the proposed project provides a greater return in terms of market value than a commercial use. He stated that several projects in the City, including Excelsior and Grand, the West End, and Wooddale Pointe, have used TIF financing for structured parking and eligible costs include a portion of structured parking. He stated that Bader Development has met with DEED, Hennepin County and Met Council representatives regarding grant opportunities; approximately three-quarters of the site cleanup costs would come from other sources, estimated to be approximately $350,000 per agency. He added that there is additional tax increment available from the entire TIF Distnct that could be used to fill any financing gaps relative to the extraordinary costs of the project. It was the consensus of the City Council to support Bader Development's proposed E2 project and to consider entering into a Purchase and Redevelopment Contract to convey the subject property and provide financial assistance to facilitate the project. It was also the consensus of the City Council to support the submittal of grant applications to assist in the environmental cleanup of the property. 4. Proposed 2012 Utility Rates Mr. Harmening presented the staff report and policy questions for Council consideration. Ms. Deno advised that following the rate study last year, staff is recommending no change in the rate structure for water, sanitary sewer, storm, and solid waste in 2012. She stated that these rates will be reviewed and adjustments made during the 2013 budget process following the departure of Nestlé. Councilmember Santa requested further information regarding the Bassett Creek Water Management Commission (BCWMC) surcharge. Mr. Rardin explained that Bassett Creek Water Management Commission is a joint powers Water Management Organization (WMO) comprised of nine cities and is different than a normal watershed district, e.g., Minnehaha Creek Watershed Distnct, which is statutorily denved where commissioners are appointed by the County and the district collects all their revenues via the tax levy. He stated that the BCWMC collects revenues through a tax levy for capital projects while revenues for commission administrative costs of about $500,000 per year are invoiced directly to each city on a pro rata basis to each city based on land area and tax capacity. He indicated that the City's share of BCWMC administrative costs is approximately $17,000 and is being paid out of Storm Water Utility Fund so all properties in the City are paying for BCWMC administrative costs which raises the issue of fairness. He stated that staff proposes to add a rate surcharge in the amount of$1.60 per quarter for a 1-2 family residential property for those properties in the City of St. Louis Park located within the BCWMC. This rate surcharge would raise approximately$17,700 annually. Study Session Minutes -5- September 26, 2011 Councilmember Sanger expressed support for the proposed 2012 rate structure. She requested further information regarding the Highway 100 reconstruction improvements. Mr. Rardin explained that the estimated $2.5 million in water system, sanitary sewer system, and storm water system improvements were identified by staff as city utility relocations associated with the proposed Highway 100 project. He stated that these improvements will be needed pnmanly along Utica Avenue. It was the consensus of the City Council that the 2012 rates for water, sanitary sewer, storm, and solid waste rates were acceptable. It was also the consensus of the City Council to support adding a rate surcharge to properties in the Bassett Creek Water Management Commission area of the City. 5. Project Update—Hwy 7/Louisiana Avenue Interchange Project Mr. Olson presented the staff report and update regarding Phase 3 and 4 activities of the project. He stated that the project will include a bypass that will allow traffic to continue using Highway 7 dunng construction. He noted that there will be some detours and left turns at Hwy 7 and Louisiana Ave will not be accommodated during construction. He added that staff has been working with the hospital staff to educate them about construction detours. He discussed the public art process and stated that City is using the same consultant used on other projects in the City. Councilmember Finkelstein felt that some of the City's public art has been dismal and suggested that the City use a different consultant or skip the public art entirely. Mr. Rardin agreed to have Ms. Walsh further discuss the public art with Council. Councilmember Sanger stated that all the public art done so far has been sculptures and she did not want to see a sculpture in the middle of a roundabout because it could create a distraction for dnvers. She indicated that she would rather take the public art money and put it into an aesthetic, rich design for the bridge or railings. Mayor Jacobs and Councilmember Mavity agreed with Councilmember Sanger's idea of putting the public art money into the bridge or railings. Mr. Olson provided an update on project costs and stated more work than anticipated is required on pollution and soil correction, resulting in an increased construction cost estimate of $18.9 million. He also provided an update regarding overall funding and a breakdown on right-of-way acquisitions. He noted that the biggest impact or cost with respect to nght-of-way will be for billboard properties. Councilmember Sanger indicated that her preference would be to have no billboards at all. Council discussed the Federal funds sunset date and a possible extension request for those Federal funds. Council also discussed Mn/DOT's offer to perform construction and contract administration activities for the project. Study Session Minutes -6- September 26, 2011 Councilmember Finkelstein asked if there was any way the City can utilize an engineering firm to analyze the project in the event of cost overruns, in order to prevent a similar situation to what happened with the Wooddale project. Councilmember Sanger suggested that the City Attorney be consulted about other legal approaches available to the City to minimize the City's risk. She stated that she recently attended a Metro Cities Policy Committee meeting and learned that another community was working with Mn/DOT where Mn/DOT was supposed to be doing the improvement. The City ended up paying for a new bridge but the City was able to negotiate an agreement where Mn/DOT reimbursed the City for all costs of building the bridge. She asked if this was something the City could pursue. She stated that she also raised the question about whether the sunset date on the Federal funds would be extended in light of Mn/DOT's request to push back the project dates and the answer she received was that not only does nobody know, but it is not clear who has the authority to make that decision. She indicated that from her point of view, the City should spend some time getting that question answered before making any kind of decision on delaying the project. Mr. Rardin requested that Councilmember Sanger provide him with further information about the bridge project she identified, including location and whether the project was a bridge replacement, so he could research the matter. Councilmember Mavity asked how much of this project is going to duplicate or feed into the light rail study and station area planning. Councilmember Finkelstein requested that staff determine if any of the PE funds for light rail could be used for part of this project. It was the consensus of the City Council that it was satisfied with the progress being made on project development and Phase 4 activities. It was also the consensus of the City Council to direct staff to request an extension of the Federal funds sunset date due to the uncertainty of federal funding. It was also the consensus of the City Council that it was comfortable with the proposed construction staging plans. It was also the consensus of the City Council to delay the right-of-way acquisition process pending resolution of the Federal funding/ sunset date issue. It was also the consensus of the City Council to support the incorporation of art and beauty and aesthetics into the project and to direct staff to review the public art process from an architectural standpoint. It was also the consensus of the City Council to reluctantly support the use of Mn/DOT personnel to perform construction and contract administration duties. It was also the consensus of the City Council that it was comfortable with the City's probable total funding commitment needed for the project. The following discussion was related to both written reports 9 and 10 Councilmember Sanger requested that the Wooddale discussion include the perspective of a bicyclist. She stated that it has been her experience that cars coming from the south can see bicyclists and they stop, but cars from the north are going much faster and bicyclists cannot see cars coming from the north. She added that this comes down to a question of the need for signage and/or lights. Study Session Minutes -7- September 26, 2011 Mr. Harmening indicated that staff plans to talk to Council about both sight line and trail crossing issues at the same time. He added that representatives from Three Rivers Park District will attend and be part of the discussion. Councilmember Sanger suggested that the City invite some bicyclists to the meeting who bike in other jurisdictions. Councilmember Mavity requested that the meeting include some visual renderings and to invite someone from the Police Department to help understand the law. Councilmember Finkelstein requested that traffic counts be included as well. 6. Administrative Rules for Allowing Chickens Mr. Harmening presented the staff report and explained that the current ordinance allows chickens and other domesticated animals with wntten permission from the City, but the City's practice has been to not grant permission when asked. Councilmember Mavity and Councilmember Omodt expressed support for an administrative approval process that would allow for the keeping of chickens. Councilmember Sanger stated that she was opposed to a process that would allow for the keeping of chickens because the City has worked hard to discourage residents from putting feed on the ground for deer and if chickens are allowed, there will be feed on the ground which will be a magnet for deer and other vermin. She stated that she is also opposed to this because the City allows one accessory structure per property and if chicken coops are allowed plus another accessory structure it will create an ugly, blighted look. She felt that the City is an urban area and if residents want to raise chickens, they should live on a farm. She also expressed concern about the possibility of disputes among neighbors if cats mix with the chickens. Councilmember Santa stated that the City already has residents concerned about their small dogs because of coyotes and putting chickens in the backyard will create more problems with the wildlife present in the area. She expressed concern about the chickens in the winter and keeping the structure warm enough. Councilmember Ross agreed with Councilmembers Sanger and Santa and stated she would not be supporting this because of the increased burden on City staff as well as concerns from a public health perspective. Councilmember Finkelstein stated that it may not be a good practice to start allowing chickens but is agreeable to giving the policy proposal a try at this point. Councilmember Omodt stated that residents have kept chickens for several years and the City of Minneapolis allows residents to keep chickens. He felt that allowing chickens would encourage the goal of supporting locally grown businesses. Mayor Jacobs stated that he would support an administrative approval process for keeping chickens. Study Session Minutes -8- September 26, 2011 Mr. Hoffman clanfied that the Ordinance would not need to be changed and staff would create an administrative approval process to apply what is currently contained in City Code for the keeping of chickens. 7. Communications/Meeting Check-In (Verbal) Mr. Harmening indicated that the Cavaha show has been going well and there have been no issues with congestion and/or parking. The meeting adjourned at 8:51 p.m. Written Reports provided and documented for recording purposes only: 8. August 2011 Monthly Financial Report 9. Southwest Regional Trail Crossings (Wooddale and Beltline): Background and History 10. Wooddale Avenue Bridge Design: Background Information 11. St. Louis Park Outstanding Citizen Award Program Nancy Stroth,eity Clerk Jeff Jacobs, i i r