HomeMy WebLinkAbout2015/11/23 - ADMIN - Minutes - City Council - Study Session Jft St. Louis Park OFFICIAL MINUTES
MINNESOTA CITY COUNCIL STUDY SESSION
ST. LOUIS PARK, MINNESOTA
NOVEMBER 23, 2015
The meeting convened at 6:30 p.m.
Councilmembers present: Mayor Jeff Jacobs, Tim Brausen, Gregg Lindberg, Anne Mavity, and
Susan Sanger.
Councilmembers absent. Steve Hallfin and Jake Spano.
Staff present: City Manager (Mr. Harmening), Director of Operations and Recreation
(Ms. Walsh), Engineering Director (Ms. Heiser), Economic Development Specialist
(Ms. Grove), Planner (Mr. Kelley), Assistant Zoning Administrator (Mr. Morrison), City
Assessor (Mr. Bultema), Operations Manager (Mr: Stevens), Communications Specialist
(Ms. Pribbenow), and Recording Secretary (Ms. Batra).
Guest: Susan Schneck, Founding Member of FOTA, and George Hagemann, FOTA Board Member.
1. Future Study Session Agenda Planning—December 14, 2015
Mr. Harmening presented the proposed Study Session agenda for December 14, 2015. He stated
there is no meeting next week because it is the fifth Monday of the month.
Regarding the City's participation in a 2016 initiative on race and equity, (agenda number 5),
Councilmember Mavity stated the City can sign up online, and pointed out there are two options.
Also, the schedule for the initiative starts in January.
Councilmember Sanger suggested a new potential zoning code change. Mayor Jacobs stated he
would prefer to discuss this when the Council arrives at the agenda item.
2. Friends of the Arts (FOTA) Annual Update
Ms. Schneck presented the staff report. She used a visual aid to summarize the Arts' Foundation
in the City, which was also presented at the Town Hall meeting. Ms. Schneck stated the
economic impact study was a great opportunity for FOTA to connect and put together data and
share information between themselves She stated the study also set the stage to open
communications with the community and was a great learning experience. She stated that
significant growth has been seen in FOTA for 2015
Ms. Schneck stated she has noticed the strength of the community-based arts groups in the
community. These small administrations use the FOTA's tax ID number because they have the
same mission, which permits them to share a tax return with FOTA. This enables FOTA to work
on partnering and growth within the community.
Councilmember Mavity expressed appreciation for the FOTA, and stated, in her opinion, that the
organization elevates the whole community. She asked about budgeting Mr. Harmening
clarified that the City reduced the amount given to the FOTA from $20,000 to $16,000 six years
ago due to the recession. Councilmember Mavity suggested the City increase the contribution to
FOTA-back to $20,000.
Study Session Minutes -2- November 23, 2015
Councilmember Sanger commented that she appreciates the work that has been done with
FOTA She asked about whether any thought had been given to include the two major art forms
not addressed by the FOTA, which are dance and public architecture. Ms. Schneck stated that
adding those is on the radar.
Ms. Schneck explained the business plan needs to be evaluated, because holding an event every
other year is a difficult model to use, as organizations that fund projects on an annual basis do
not consider it annual so every year funding must be reevaluated. When considering staffing and
funding, more staff would be needed to make the event yearly. She opined that businesses and
organizations will be more likely to fund the event if it is held yearly.
Councilmember Brausen commented that he appreciates everything the FOTA does for the
community. He asked if any public officials serve on the organization's Board, as he would be
interested. Ms. Schneck stated the organization speaks with public officials in more of an
advisory role. Councilmember Brausen stated that he might volunteer for the FOTA's Board,
and asked for clarification on budgeting. Ms. Schneck stated that the organization brings in
approximately $45-55,000/year since the City's funding was established and in 2013, revenue
went up to $66,000. She explained that last year Our Town was successful, but staffing and
income was not sufficient. This year, however, FOTA has brought in $51,000, with the hope to
raise it to $60,000 by year's end. Councilmember Brausen expressed a desire to increase the
City's contribution by at least $10,000 or consider a funding match scenario. He explained that
he wants to see the City's support of the arts through this organization grow as it's work benefits
the entire community. Mayor Jacobs agreed to the proposal for the City to raise the amount of
the funding contribution to FOTA
It was the consensus of the City Council to consider an increase in funding to FOTA.
3. Potential Zoning Code Amendments /Enhancements
Mr. Walther presented the staff report and referenced the information related to Zoning Code
topics including small business support tools, parking lot lighting, bee-friendly landscaping, and
tree preservation on single-family lots. Mr Walther explained that Council has brought these
issues up in the last few months and now staff is looking for more specific direction from the
Council on the topics presented.
Councilmember Mavity stated she appreciates the background and comparison with other
communities regarding the small business support tools. She inquired about sexually explicit
businesses and asked why they are permitted to open in neighborhoods, specifically C-1, when
the City is attempting to focus on a neighborhood approach. Mr. Walther explained there are
two kinds of sexually explicit businesses, low impact and high impact. Mr. Walther explained
that the definition gets very detailed.
Mr. Harmening explained that in the mid `90's, the City drafted an ordinance relating to sexually
oriented businesses because challenges had been made in other cities and the City did not have
sufficient regulation. An ordinance was then created to meet the legal and constitutional test and
direct the businesses that could be located in the City. He explained the businesses cannot be
banned, but could be regulated; however, the ordinance had to stand up in the court of law He
stated there was a lot of time and thought put into the ordinance.
Study Session Minutes -3- November 23, 2015
Councilmember Sanger stated the City received a lot of legal guidance on the issues, and she
does not believe that the sexually explicit businesses are necessarily causing a problem.
Councilmember Mavity stated the City needs to ensure that sufficient support and incentives are
provided to the other local businesses. Councilmember Mavity stressed the City does not want
businesses that are out of character from these neighborhood nodes.
Councilmember Sanger stated she is willing to reconsider changes in parking. She explained she
interviewed a small business owner to see if there is something else that needs to be mentioned.
During that interview, three ideas were mentioned First, placing an ad for a local business to
find local help costs about $450; therefore, it would be beneficial if the City would have a page
on the website for small businesses to advertise for employment Second, parking is an issue, as
one cannot assume people can walk when they are local because the item could be heavy. It was
suggested to limit the parking to 30 minutes so more people can shop at the business. The third
idea is the difficulty raising capital to purchase a warehouse in the City and the possibility of
looking for assistance or a program
Councilmember Brausen stated he would like to repurpose old buildings in the City. Ms. Grove
stated that the City has applied for a grant in the Walker Street area, and the City is working with
property owners and businesses.
Councilmember Mavity asked if the City has the tools to reduce parking beyond what is listed.
Mr. Walther mentioned that if the development requires a conditional use permit or planned unit
development (PUD), the code allows parking requirements to be adjusted through that public
hearing process. Otherwise, it would require a variance. Councilmember Mavity asked for
clarification on what can be done beyond a PUD She expressed her desire to continue to think
about and support parking reductions, as she believes that the use of cars is going to change in
the future. Councilmember Sanger mentioned that parking depends on the business and she does
not think it should be generalized, but should be considered individually instead.
Councilmember Mavity stated she does not think it would be a blanket approach, and would
consider a parking reduction where it's appropriate. Councilmember Sanger asked, if parking is
reduced, what then happens when a property is turned over to another business. Councilmember
Mavity stated she believes that the City will not need as much parking in the future
Councilmember Brausen asked if the City has a business ombudsman. Ms Grove stated that she
helps fill that role and points out resources.
Mayor Jacobs introduced the next topic, parking lot lighting. Councilmember Brausen proposed
all lights and 75% of the parking lot be turned off within 1-2 hours closing. Councilmember
Sanger agreed with Councilmember Brausen; however, for safety and security, if the parking lot
is being used, she believes the lights should remain on.
Councilmember Lindberg expressed balancing the need to conserve energy with the safety,
security, and the needs of the business' operations are important. He also stated that regulation
may not be the best or only approach. Mr Harmening stated the Police Department would be
interested in this topic and should weigh in on this issue. He asked how interested the Council is,
because the City would need to work with the business community and discuss it with them, and
then there's always enforcement to consider. Mr. Harmening stated, from an emergency
perspective, some lights are necessary. Councilmembers Lindberg, Jacobs and Mavity expressed
their caution about this proposal. The Council further discussed the topic and decided it was not
a pressing issue at this time.
Study Session Minutes -4- November 23, 2015
Mayor Jacobs introduced the next topic, bee-friendly landscaping. Councilmember Mavity
commented that State law prohibited the City from being more aggressive on this issue and until
it is a priority at the State level, it should not be a priority for the City.
Mayor Jacobs introduced the next topic, tree preservation on single-family lots. Councilmember
Sanger stated she appreciates the suggestion to address areas in new developments, because then
the City would have some oversight in the process. Councilmember Mavity stated she does not
agree because she believes it's a private homeowner issue and the City does not have any say on
the issue. Councilmember Sanger disagreed as she felt trees impact the entire City and explained
if the City had regulations, developers would think before they clear-cut. She felt regulating tree
preservation was similar to building codes.
Councilmember Lindberg stated that he thinks it would be prohibiting single-family homes from
`building up' their houses, and does not think that it's viable. He explained he is also nervous
about a negative impact. Councilmember Sanger clarified she wasn't talking about the
replacement of the trees, but preserving the existing trees.
Councilmember Brausen expressed that a homeowner should be able do whatever they desire to
their property, but would agree to a tree replacement policy. Councilmember Lindberg stated he
doesn't believe that it will work, will be too expensive, and will deviate from what the City is
asking homeowners to do.
Councilmember Mavity stated that a tree preservation policy would be too hard to implement.
Mayor Jacobs clarified that staff shouldn't spend more time on this topic.
Councilmember Sanger presented a potential zomng issue. She stated that, as she understands it,
part of the redevelopment to accommodate Lyman Lumber was for outdoor storage. She
explained this particular outdoor storage is a much more active use of the land with trucks going
back and forth, forklifts making noise, and an active outdoor factory. However, the City still
classifies the area as outdoor storage. Councilmember Sanger proposed the City split outdoor
storage into two classifications, passive use and active use. Mr. Harmening explained making
that distinction would be difficult to define
Councilmember Sanger suggested the proximity to residential areas could be part of the criteria
for evaluation. Mr. Walther mentioned that Lyman Lumber is 350 feet from residences and
agreed it is a higher activity level.
Councilmember Mavity asked if Lyman Lumber is following the noise ordinance. Mr. Walther
confirmed that Lyman Lumber is complying with code. Lyman Lumber is allowed to operate
from 6am-10pm and normal business activity would not fall outside of the noise ordinance.
Councilmember Mavity stated she would be more inclined to deal with that particular issue than
consider a citywide regulation She asked that as these uses come forward for approval in the
future, staff address that concern and make the Council aware.
Mayor Jacobs stated he did not hear a consensus to direct staff to look into this regulation.
4. Assessment Policy Discussion—Continued
Study Session Minutes -5- November 23, 2015
Ms. Heiser noted this is a continued discussion from the November 9, 2015, Study Session. She
presented the staff report relating to the assessment policy and reviewed the basics of
assessments as also stated in the November 9 Study Session.
Ms. Heiser presented a slide regarding paving, curb, and gutter The City has 146 miles of
streets and Ms. Heiser presented a pie chart to show how the City's roadway network is broken
down and their associated funding sources. She explained the existing franchise fee CIP and the
level of funding spent on different types of maintenance to extend the life of the residential
streets. Ms. Heiser explained that the overall condition of the streets are inventoried on an
annual basis and rated on a scale of 1 to 100 These ratings are reviewed by the Pavement
Management Team to determine the annual CIP. Ms. Heiser stated the pavement condition of
the unimproved streets and the streets where the land use is predominantly commercial/
industrial is deteriorating. She further explained that the current policy for commercial/
industrial streets is petition driven and the rehabilitation costs are assessed 100% to adjacent
property owners; the City has not completed a rehabilitation project on this category of streets in
over 10 years.
Ms. Heiser provided the staffs recommendation to take a proactive approach to maintenance on
both commercial/ industrial streets and unimproved streets in order to maintain the overall
condition of the City's street infrastructure. She presented information regarding the additional
infrastructure replacement costs for the one mile of Unimproved Streets, estimated cost
$1,422,494, and Commercial/ Industrial Street Rehabilitation, about $500,000 annually. She
went on to explain potential funding mechanisms to proceed with the work, including
assessments.
Mr Harmening explained that benefit needs to be shown in order to assess. With
commercial/industrial, it may be difficult to show the benefit for assessing 100% of the cost.
Councilmember Sanger stated that her understanding is that commercial use results in more wear
and tear to the roads. She does not agree with assessments on streets because streets are for
everyone's benefit and the traveling public.
Mr. Harmening clarified that when these streets were initially constructed, someone paid for it
Basically, the property owners paid for those streets, which is true for most properties in the
City. Councilmember Lindberg stated that he thinks the City should improve the unimproved
streets as it is best practice and makes sense. He stated his concern in looking at the proposed
assessment policy is that although the averages look better, the costs are shifting from larger
frontage lots to shorter frontage lots; therefore, the smaller lots pay a higher share.
Councilmember Lindberg stated that the model is good from a policy perspective and asked how
the funding structure can be finessed.
Councilmember Brausen stated that he doesn't think the unimproved streets need to be improved
due to the high cost of$1.4 million. Councilmember Mavity clarified that it is actually more
cost effective because it would reduce operating costs. Ms. Heiser clarified there are some
drainage issues and potholes on the unimproved streets, and a 'band aid' approach is used to
mitigate the issues to prevent damage to vehicles, but no more. These potholes form because the
road is not built with adequate structure to support the traffic loads.
Mr. Harmening clarified that the Council needs to decide whether to use the special assessment
tool. If not, the Council will have to work the cost into the budget. Councilmember Mavity
stated she agreed with the assessment tool for streets, but not necessarily for sidewalks.
Study Session Minutes -6- November 23, 2015
Councilmember Mavity expressed she is comfortable with staff's recommendation and thinks the
City should proceed with the proposed plan. Councilmember Sanger stated she does not agree
with assessments for roads or sidewalks, but can see the argument on alleys. She opined roads
and sidewalks are for the public benefit. Mayor Jacobs stated his agreement with
Councilmember Sanger and believes that the City will receive push back if the assessment tool is
used. Mr. Harmening clarified that it's only the one mile of unimproved streets in the City that
would be assessed. Councilmembers Mavity and Sanger and Mayor Jacobs stated they agree
that alleys are the exception when discussing assessments.
Ms Heiser explained, using a slide, what the overall additional infrastructure costs would be
without using the assessment tool. She mentioned that assessments, as proposed in the new
policy, could fund approximately half of the estimated cost The Council and staff discussed the
differences in the cost if unimproved streets were assessed, funded by franchise fees, or funded
through a levy increase.
Mr. Harmening introduced the topic of unimproved alleys. Mayor Jacobs and Councilmembers
Mavity and Sanger stated they could support assessing 50% on alleyways. Councilmember
Sanger stated the current formula is a deterrent because if the residence doesn't have a garage, no
benefit is received. Councilmember Lindberg stated that formula is not agreeable to him, as
alleyways are part of the infrastructure the City is providing and maintaining. Councilmember
Mavity stated there is no perfect answer on this issue. Mr. Harmening asked, excluding the
formula, can the Council agree on an assessment for alleys. Councilmembers Mavity and Sanger
and Mayor Jacobs indicated their support.
Ms. Heiser clarified the Council has decided to not use the assessment tool for residential streets,
and to use the assessment tool for alleys. In response to Councilmember Lindberg's request, Ms.
Heiser displayed a slide detailing the location of unimproved alleys. The Council discussed the
pricing and how to build in the cost over time regarding alleys. Using the `Existing CIP' slide,
Ms. Heiser discussed the existing and forecasted funding.
It was the consensus of the City Council to explore funding options for streets, use the
assessment tool for alleys and discuss sidewalks at a later date.
5. Highway 169—W. 16th Street Access Closure (West Side)
Mr. Harmening stated Mn/DOT is requesting municipal consent to close the W. 16th Street
access and there will be a hearing on December 7, 2015 She noted staff wanted to provide the
Council with an update because it was possible that a number of people may attend the hearing
to express their opinions on the proposed closure Mayor Jacobs stated there is mixed feedback
from residents on the issue Councilmember Mavity stated there is also a cost issue.
Councilmember Brausen stated that both sides are equally vocal, but he feels there's an
overriding safety issue here. Mn/Dot wants to close the access, but needs municipal consent
because the closure is associated with a larger construction project. Mr. Harmening explained
that visual barriers will be built and Mn/DOT will pay for them. Ms. Heiser explained why
Mn/DOT is seeking municipal consent as Mn/DOT has a project to complete; however, Mn/DOT
stated it could close the access at any time if there were a serious accident resulting in a fatality.
Mayor Jacobs, and Councilmembers Brausen, Mavity, and Sanger stated their preliminary
support of the closure. Mr. Harmening raised the option of asking for a noise wall instead of a
visual barrier
Study Session Minutes -7- November 23, 2015
It was the preliminary consensus of the City Council to support the closure of the W 16th Street
access to Highway 169 and to ask Mn/DOT whether the visual barrier could be upgraded to a
noise wall.
6. 4900 Excelsior Project Update
Mr. Hunt presented the staff report and indicated Oppidan Investment Company (Oppidan) plans
to sell the 4900 Excelsior project to Weidner Apartment Homes (Weidner) and has requested that
the EDA consider providing consent to the assignment of the just-approved Purchase and
Redevelopment Contract. Weidner is not making any programmatic changes and staff is
comfortable with the transfer. Mr. Hunt explained that Weidner is constantly on the lookout for
purchase opportunities and approached Oppidan regarding this project. He added the City has
had a good relationship with Weidner via the Sienna Apartment project. Staff anticipated the
project would ultimately be sold once it was constructed and reached stabilization.
Councilmember Mavity clarified that the only change would be the owner; therefore, the City
would not incur any additional financial burden. Mr. Hunt responded that staff requested an
updated proforma reflecting the change in ownership and what ramifications it may have on
financing the project. He noted no additional TIF had been requested. If there is no significant
reduction in the project's financial gap, the EDA could simply consent to an assignment of the
project from Oppidan to Weidner
Councilmember Sanger questioned if Weidner would remain the owner for the long-term
operation. Mr. Hunt responded in the affirmative, noting that Weidner would be the long-term
owner and operator, looking at this from a 40-year perspective. In response to Councilmember
Mavity's question, Mr. Hunt suggested the City meet with Weidner to discuss expectations with
inspections, project management, and working with the neighbors, to ensure construction goes
smoothly.
Mr. Hunt clarified that Weidner wants to close on the property themselves. He stated that if the
proforma comes back and it's not agreeable, the City can revisit the TIF number and enter into a
new agreement with Weidner.
Mr. Hunt indicated staff is working with legal counsel and Ehlers to determine the financial
implications of the proposed assignment, if any, and if the financial terms within the Purchase
and Redevelopment Contract need to be revisited.
It was the consensus of the City Council to consent to the assignment if that is the direction
recommended by staff.
7. 2016 City Council Workshop
Mayor Jacobs stated that he will not attend the City Council Workshop. He stated that, in his
opinion, the relationships that allow the Council to hold discussions in a rational way is the most
important thing to discuss at the Workshop. He stated that the Council trusts each other, and,
with the upcoming membership changes, he hopes this trust can be preserved.
Councilmember Lindberg recommended that Bridget Gothberg attend and spend Thursday or
Friday with the Council. Councilmember Sanger suggested it would be useful to hear from
Mayor Elect Spano about his style, how he operates, and what his expectations are.
Study Session Minutes -8- November 23, 2015
Councilmember Mavity expressed concerns about recent actions that Councilmember Sanger
undertook to undermine the City's recent grant request to the Met Council despite the fact the
Council approved making the grant application. Councilmember Mavity suggested that the issue
of Council norms should be discussed, outlining the written and unwritten. She also stated that
she agrees that it is important to do the personality test Councilmember Elect Miller will meet
with Ms. Gothberg and complete the personality test as everyone else did when they started the
Council. Councilmember Lindberg agreed with the importance of the norms conversation,
which can also be facilitated by Ms Gothberg.
Mr. Harmening would like to address the five goals that were set last year, and have a
conversation around that to make sure those are still on track, which would leave time for
another topic, open for suggestion, on Friday. Councilmember Brausen asked to revisit the 2025
goals and incorporate a racial equity component into those goals
Councilmember Sanger stated another goal is the big picture on the City's aging physical
infrastructure and how to keep the community updated, fresh, and in good physical shape.
Councilmembers Mavity and Brausen mentioned that something similar had been discussed at
last year's retreat. _
Mr. Harmening would like to merge the visioning plan with the Comp Plan. The new Comp
Plan is due is in 2018. Councilmember Lindberg stated it helps the Council incorporate all areas.
It was noted that Councilmember Elect Miller has that experience from the last election while
knocking on doors to gather votes and meeting residents, which could be valuable when
considering the Plan.
Councilmember Brausen would like to discuss zero waste because it's a pressing issue to review
and think about where the City should go and what the cost will be. Councilmember Mavity
agreed with the sentiment but thought the City should plan more than the retreat to discuss that
topic.
Mr. Harmening stated the City's long-term financial standing is a hot topic; as well as SWLRT
and development around the station location; aging infrastructure; and neighborhoods.
Mayor Jacobs stated to find a topic, he likes the idea of sending out a survey to ask for their top
three big picture topics so staff has a broad-based plan in place in what it should be working on.
The Councilmembers Spano, Lindberg, and Sanger will work with staff to develop the
Workshop agenda.
Communications/Meeting Check-In (Verbal)
Councilmember Sanger commented on zero waste packaging and asked how the Council plans to
classify a restaurant where you can do both, takeout and dine in. She stated the Council needs to
clarify this because a lot of restaurants fall under both requirements Councilmember Mavity
noted the exemption for providing on-site disposal is only for restaurants that do not offer a dine-
in facility. Mr. Harmening stated staff will review that language. Councilmember Brausen
stated he does not understand why utensils are being exempt when compostable utensils are
readily available. It was noted that businesses will be required to provide recycling.
StuJdy Session Minutes -9- November 23, 2015
Councilmember Lindgren asked if the Council is willing to explore some type of assistance for
small businesses. Mr. Harmening stated staff will check with the County to see if that assistance
is available. Councilmember Sanger stated the Council has already discussed providing
education and information about alternatives as well as a long lead-time before the regulation
becomes effective.
The Study Session scheduled for December 28 will be cancelled.
The meeting adjourned at 9:34 p.m.
Written Reports provided and documented for recording purposes only:
8. October 2015 Monthly Financial Report
9. Updated Zero Waste Packaging Ordinance
Melts a Kennedy, City Clerk Gre g,XI Pro Tem