HomeMy WebLinkAbout2020/05/26 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA
MAY 26, 2020
All meetings of the St. Louis Park City Council will be conducted by telephone or other electronic
means starting March 30, 2020, and until further notice. This is in accordance with a local
emergency declaration issued by the city council, in response to the coronavirus (COVID-19)
pandemic. Additionally, in accordance with Gov. Walz's #StaySafeMN executive order 20-056,
city facilities will remain closed to the public until further notice.
Some or all members of the St. Louis Park City Council will participate in the May 26, 2020 city
council meeting by electronic device or telephone rather than by being personally present at
the city council's regular meeting place at 5005 Minnetonka Blvd.
Members of the public can monitor the council meeting by video and audio at
https://bit.ly/watchslpcouncil or by calling +1-312-535-8110 meeting number (access code):
372 106 61 for audio only. Cisco Webex will be used to conduct videoconference meetings of
the city council, with council members and staff participating from multiple locations.
6:30 p.m. - STUDY SESSION
Discussion items
1. 6:30 p.m. 2021 Budget
2. 7:30 p.m. Climate action in time of COVID
3. 8:30 p.m. Future study session agenda planning and prioritization
8:35 p.m. Communications/updates (verbal)
8:40 p.m. Adjourn
Written reports
4. Temporary expanded outdoor customer service areas
5. April 2020 monthly financial report
During the COVID-19 pandemic, agendas will be posted on Fridays on the entrance doors to city hall and on the text
display on civic TV cable channel 17. The agenda and full packet are available after noon on Friday on the city’s website.
If you need special accommodations or have questions about the meeting, please call 952-924-2525.
Meeting: Study session
Meeting date: May 26, 2020
Discussion item: 1
Executive Summary
Title: 2021 budget
Recommended action: **Due to the COVID-19 emergency declaration, this item is considered
essential business and is categorized as Time-Sensitive**
•No formal action required. This report is to assist with the study session discussion. Focus
will be on how the COVID-19 pandemic should be considered as part of 2021 budget
preparations.
Policy consideration:
•What assumptions related to the COVID-19 pandemic should be used to guide preparation
of the budget e.g. property tax levy, utility rates, strategic priorities, etc.?
•Does the 2021 budget process, outline and timeline meet council expectations?
Summary: Staff is working on preparing budget recommendations for 2021. As compared to
previous years, overshadowing this process is how we should think about the budget due to the
COVID-19 pandemic. How should we consider the funding needs for advancing the council’s
strategic priorities in relation to the core services the city provides. Is it realistic to think about
property tax levy/utility rate increases or wage adjustments for 2021?
Staff desires to have a big picture discussion with the city council on these and other questions
that will help guide how staff prepares the 2021 budget.
Financial or budget considerations: Details regarding financials are provided in this report.
Strategic priority consideration: All strategic priorities are considered in the budget process.
Supporting documents: Discussion
2021 Preliminary budget calendar
Prepared by: Elizabeth Diaz and Stacie Kvilvang, consultant Ehlers
Nancy Deno, deputy city manager/HR director
Approved by: Tom Harmening, city manager
Study session meeting of May 26, 2020 (Item No. 1) Page 2
Title: 2021 budget
Discussion
Background: The purpose of the discussion is to make sure staff is in line with council
expectations in preparing 2021 budget recommendations, particularly in light of COVID-19. This
study session discussion is intended to be at the higher level and, based on the direction
provided, will allow staff to then prepare more detailed budgetary information for council to
consider that will eventually assist in setting property tax levies, fees and utility rates for 2021.
2021 budget preparation: In upcoming sessions, the city council will be provided with more
detail on budget recommendations, with time allowed for review of materials and questions.
Directors or their designees will also be present for questions or sharing information as needed
or requested. All budgets, capital improvement plan (CIP), long range financial management
plan (LRFMP), debt model, fee schedules, utility rates and relevant information will be included
in future materials along with continued updates due to COVID-19 impacts.
2020 COVID-19 considerations: At the time of writing this report, staff continues to work on
recommendations to overcome the estimated $2.4 million estimated impact from COVID-19 in
2020 and how this should be considered moving forward in 2021. Shifts have been made and
are ongoing in 2020 with staffing, capital projects, and programs to try to close the anticipated
gap. Staff is also monitoring funding possibilities from many levels including but not limited to
state, federal and other sources. The ongoing uncertainty of COVID-19 will be included and
reviewed in all areas of operation, capital and programs short term and long term.
Legislative directives:
•There are no levy limits in place for 2021.
•Local Government Aid for 2021 has not been certified yet. For 2020, St. Louis Park
received $267,271. Under current law and related formulas, the City is not slated to
receive these funds for 2021 due to the growth in the city’s market value. If funds were
received, they would have been used for capital replacement.
Staffing costs: Funds for staffing are the largest expenditure of the city’s operating budget. In
building the 2021 budget recommendations, due to the current and potential impacts of the
pandemic, staff is using a cost of living wage adjustment assumption of 0% at this time. As we
move through the budget process, if the assumption of impacts of COVID-19 are less than
anticipated, a possible 2021 wage adjustment can be evaluated along with any other budget
areas that were proposed to be frozen or cut. The preliminary budget will provide for
movement through pay plan steps/range and also if market adjustment is needed. Four of the
five union contracts are open for 2021 with only dispatch settled at 3%.
PERA: Coordinated Plan: Employee contribution of 6.50% of salary and employer contribution
of 7.50% of salary in 2020. PERA has not released information for 2021 at this time.
PERA Police and Fire: Employee contribution of 11.8% and employer contribution of 17.7% in
2020 will remain the same at this point in 2021.
Benefits: For 2021, we have a quote for renewal of not to exceed 9% with HealthPartners. This
will be included in the budget estimates. We are recommending elimination of the wellness
benefit for 2021 previously set at $40 per employee per month. In 2020 our estimated
Study session meeting of May 26, 2020 (Item No. 1) Page 3
Title: 2021 budget
expenditure for this program from all funds is $138,720 (this covers the program for 180
employees who agree to meet the criteria and participate in the program). We will continue to
support and encourage wellbeing activities for our staff including use of the exercise equipment
at fire station 1, flex/sick leave for fitness, and other informational and educational
opportunities.
Operational costs: Staff continues to monitor how operational costs have or could be impacted
in 2021 by COVID-19 in relation to the core services the city provides. Department heads
continue to review the services needed to make sure our foundation continues to be strong. The
focus is to continue providing a high level of quality and responsive services to our constituents.
Strategic priorities: To the extent the final/adopted 2021 budget allows, staff will continue
efforts to further the five strategic priorities of the council. Positions that had been planned to
be added in 2020 to help advance these priorities were not filled, at least at this time, to help
address the current budget challenges. As we move along through the 2021 budget process
staff will need guidance from the council as to how to balance the resource needs to advance
the strategic priorities in relation to the core services the city provides.
Utility funds: The city operates various utilities and related funds, including water, sanitary
sewer, storm sewer and solid waste. The operational and capital needs for these utilities are
funded by revenues collected via utility bills paid by users. All utility funds will be presented
during the budget process as in previous years with a review of rates in accordance with the
city’s long-range financial management plan (LRFMP). Based on the prior analysis of the utility
funds and their related operational and capital needs, water rates were projected to increase in
2021 by 4.5%, sewer rates by 4.75% and solid waste by 6%. As noted earlier in this report,
based on the impacts of COVID-19, the viability of increasing rates in 2021 is something that will
need to be discussed further. To that end, over the next several months staff will review the
utility funds and evaluate rates in conjunction with short and long term operational and capital
needs and cash balances, and report back.
Franchise fees: The city collects franchise fees from Xcel and CenterPoint, which they in turn
pass on to their customers, which are our residents and businesses. These revenues are used
exclusively for the city’s annual pavement management capital plan. The collection of these
fees has allowed the city to not have to produce the necessary revenues to do these projects
via special assessments to the property owners abutting a project. Although 2021 was going to
be the year that the city considered an increase in franchise fees (every other year), as just
noted it is something that will need to be discussed due to the impacts of COVID-19. The city
collects approximately $3.6M a year in franchise fees that fund pavement management. In
2019, the fee increased by $1.50 per utility/per month. A similar $1.50 per month increase was
projected for 2021.
Fees, charges and other revenues: Staff will continue to review current fee data based on cost
analyses and other communities before making recommendations for the 2021 fee schedules
for the council to consider later this year. Again, due to COVID-19 considerations, we anticipate
minimal recommendations for changes in fees.
Study session meeting of May 26, 2020 (Item No. 1) Page 4
Title: 2021 budget
LRFMP (Long Range Financial Management Plan): This document will be presented at future
meetings with city council to assist in setting property tax levies, debt management, fees, utility
rates and budgets.
CIP (Capital Improvement Plan): Staff has had to make shifts in the capital plan due to COVID-
19 impacts. Much of the impact is still unknown and planning continues as we look at the CIP
(2021-2030). This information continues to be programmed into the LRFMP and Finance is
analyzing the results in an effort to create long-term sustainability in funds and also looking at
where changes in funding or expenditures/expenses need to occur for the city council and city
manager to consider. The city council will see a draft of the plan on August 10, 2020 and again
in the fall.
Trends in valuations and possible property tax implications: For the 2021 assessment, St. Louis
Park’s taxable market value is estimated at $8,008,620,000 per Hennepin County as of May 1,
2020. This represents a 5% increase from the city’s 2020 taxable market value.
City property tax levy: The city’s property tax levy funds city operations, capital and debt
repayment. As a point of reference, the city’s 10-year average property tax levy increase is
4.27%. For 2020 the levy increase was $1,642,260 (4.35%).
HRA property tax levy: Since the city/EDA established this levy in 2001, the maximum dollar
amount allowed under state law was used to set this levy. Up until and including the levy
adopted for 2020, the revenues were used to fund infrastructure improvements in
redeveloping areas (e.g. Hwy 7/Louisiana interchange). For the 2021 HRA levy the council
changed its policy on the use of the proceeds and directed that the bulk of the dollars be placed
in the recently created Affordable Housing Trust Fund. A small amount was approved for the
payment of housing staff salaries. For 2020 the HRA levy was set at the maximum amount
allowed - $1,332,978. The maximum HRA levy allowed for 2021 is estimated to be $1,507,858.
Property taxes in general: When determining the amount of a property tax levy, the council
should provide direction to staff on the desired level of services, programs and capital
improvements it wishes to see, and an estimated property tax levy amount is an outcome of
that direction. If the amount of the estimated levy needed is higher than the council is
comfortable with, adjustments are made to the level of services, programs and/or capital
improvements to achieve the desired amount.
In general, the approach noted above has been successfully used in past years. As stated earlier
in this report, as compared to previous years, overshadowing everything for 2021 is how we
should think about the budget/levy due to the COVID-19 pandemic. How should we consider
the funding needs for advancing the council’s strategic priorities in relation to the core services
the city provides? Is it realistic to even think about property tax levy increases for 2021? These
questions are the core of the discussion proposed for the study session. To help council
understand the context of holding the line on property taxes for 2021 as compared to previous
years, staff will have information to share at the study session on the impact of a 0% to a 3%
general property tax levy increase.
Study session meeting of May 26, 2020 (Item No. 1) Page 5
Title: 2021 budget
Setting city and HRA tax levies: The council and EDA will meet to adopt preliminary 2021 levies
on September 21, 2020 for the city and HRA. After adoption of the preliminary property tax
levies, the levies may be reduced, but not increased. The preliminary property tax levies that are
adopted will then be used to determine the preliminary property taxes on the Truth in Taxation
statements that Hennepin County mails out in November to all property owners.
Next steps: As the 2021 budget process continues, the following preliminary schedule snapshot
has been developed for council:
May 26 Review and discussion of 2021 budget
June 22 Study session with council to discuss 2021 budget and assumptions
August 10 Review and discussion of 2021 budget and draft 2021-2030 CIP.
Department directors or their designees will also be in attendance.
September 14 High level 2021 budget, CIP, fees, utility rates discussion, and City/HRA
levy. This meeting will be more of a proposed preliminary levy discussion
with direction provided to staff to prepare information for the September
21 meeting adopting preliminary levies.
September 21 Council sets 2021 preliminary property tax levy.
(Levies can be reduced, but not increased for final property tax levies.)
October 12 Review and discussion of 2021 budget, CIP, utility rates and LRFMP.
Directors or their designees in attendance as needed.
October 19 Public hearing - 1st reading of ordinance setting fees, and adoption of
2021 utility rates.
November 23 (If necessary) Final budget or CIP discussion prior to truth in taxation
public hearing and budget presentation. Second reading of ordinance
setting fees.
December 7 Truth in taxation public hearing and budget presentation.
December 14 (If necessary) Continuation of public hearing and any budget discussion.
December 21 Council adopts 2020 revised budget, 2021 budgets, final tax levies (city
and HRA), and 2021 - 2030 CIP.
City of St. Louis Park
2021 Budget Calendar
Note: Items in blue are meetings with the city council (study sessions or council mtgs). Items in gold are CIP items
Date Participant(s) Task Description
April 7 Finance> Depts. Current salary allocations forwarded to depts. for review and updating
April 13 All Depts. 2021–2030 Capital Improvement Plan (CIP) available for update in Plan-It
April 16 Depts.> Finance Salary allocations due back to Finance by depts
April 17 Finance> HR/PR Forward salary allocations to HR/PR for inclusion in data worksheet
May 8 HR/PR> Finance Wages and benefits data worksheet due to Finance
May 15, 4:30 p.m. All
Hubble opened for entry. All revenues and expenditures are to be budgeted.
Review fee schedule and utility rates in conjunction.
May 26 City Mgr./Finance Study session with council to review 2021 budget
May 29 Depts. Plan-It is closed to depts. for 2021-2030 CIP entry
Early June Finance All wage and benefit amounts entered into Hubble
June 22 City Mgr./Finance Study Session with council to discuss 2021 budget and assumptions
June 30, 4:30 p.m. Depts.
Forms for changes in staffing requests and major changes in programs are due to
HR/Finance. Building permit revenue projections are due to Finance.
June 30, 4:30 p.m. Depts.
Deadline for Hubble budget entry, incorporating results of fee review.
Hubble access is changed to Read Only.
July 1-10 Finance Finance to review Hubble budget entry
July 10-24, 4:30 p.m. Depts.> Finance Plan-It open for finance to enter any additional changes to 2021-2030 CIP
July 13-24
City Mgr., Deputy City
Mgr., dept. directors,
Finance Individual meetings with departments to discuss budget requests
July 27 (if needed) City Mgr./Finance Study Session with council on 2021 budget
Aug. 10
City Mgr., dept.
directors, Finance
Study Session with council on 2021 budget and first draft of 2021-2030 CIP.
Department directors and Finance attendance required.
Sept. 4-11, 4:30 p.m. Depts.> Finance Plan-It open for finance to enter any FINAL changes to 2021-2030 CIP
Sept. 14
City Mgr., dept.
directors, Finance
Study Session to discuss 2021 levy, including discussion of high-level 2021 budget,
CIP, and utility rates.
Sept. 21 City Mgr./Finance
Regular meeting with council and EDA for preliminary approval of
2021 budgets, tax levies, and franchise fees (if applicable)
By Sept. 30 Finance
Certification of 2021 preliminary property tax levy to Hennepin Co. and filing
of levy reports to State of MN
Oct. 6-19 Everyone
Final review of all 2021 revenues and expenditures for all funds. In addition, review
of the CIP, utility rates, and long-range financial management plan (LRFMP).
Oct. 12
City Mgr., dept.
directors, Finance
Study session with council to review and discuss 2021 budget, updated CIP, utility
rates and LRFMP.
1st Reading of Fees. Submit publication request to Sun Sailor by Sept. 25
Oct. 19 Finance/City Clerk
Regular meeting to adopt 2021 utility rates.
2nd Reading of Fees Ordinance on Consent and subsequent summary publication.
Nov. 9 (if needed)
City Mgr., Finance,
City Clerk
Final study session opportunity to discuss budget and/or CIP with council prior to
Truth In Taxation (TNT) public hearing
TBD Mayor, City Mgr. Facebook Live chat on 2021 budget and 2021-2030 CIP
Dec. 7 Finance Regular meeting - Truth In Taxation public hearing and budget presentation
Dec. 21 City Mgr./Finance
Regular meeting - Council to approve 2021 budget, final property tax levies (City and
HRA), and 2021-2030 CIP
By Dec. 24 Finance Certification of tax levy and other required forms due by Dec. 31
Jan. 2021 Finance
Summary Budget Form due to OSA by Jan. 31.
Finalize budget book and add to city web site. Print some copies, if necessary.
Study session meeting of May 26, 2020 (Item No. 1)
Title: 2021 budget Page 6
Meeting: Study session
Meeting date: May 26, 2020
Discussion item: 2
Executive summary
Title: Climate action in time of COVID
Recommended action: **Due to the COVID-19 emergency declaration, this item is considered
essential business and is categorized as Time-Sensitive**
•Discuss and provide feedback on the revised 10-month sustainability work plan and
Renewable Energy Credit policy recommendations.
Policy considerations:
•Is the city council supportive of the revised 10-month work plan?
•Is the city council supportive of the Renewable Energy Credit policy recommendations?
Summary: The Sustainability Division is shuffling its work plan for the next 10 months in order
to adapt to the COVID pandemic. Although the Climate Champions program materials and plan
are nearly complete, the division cannot launch that substantial program in the community as
planned for a variety of reasons. Instead, a proposed work plan intended to be helpful and
sensitive to the current business environment is included in this report. The Sustainability
Division is also bringing forth research on Renewable Energy Credits in order to receive policy
direction on how to best measure city-wide renewable energy goals identified in the CAP.
Financial or budget considerations: Postponing the Climate Champions program and a new
residential solar rebate program results in a $100,000 savings from the adopted 2020 budget.
Postponing a 2020 municipal greenhouse gas emissions inventory until next year results in an
additional $30,000 savings from the adopted 2020 budget. These savings will help address the
financial impacts the city is facing due to the pandemic
Strategic priority consideration: St. Louis Park is committed to continue to lead in
environmental stewardship.
Supporting documents: Discussion
Attachment A: Proposed 10-month work plan
Attachment B: Renewable Energy Credits: Measuring the carbon
impacts of on-site solar in St. Louis Park
Prepared by: Emily Ziring, sustainability manager
Reviewed by: Brian Hoffman, director of building and energy
Approved by: Tom Harmening, city manager
Study session meeting of May 26, 2020 (Item No. 2) Page 2
Title: Climate action in time of COVID
Discussion
Background: The Sustainability Division is tasked with implementing the city’s Climate Action
Plan, adopted in February 2018. Because greenhouse gas emissions from buildings make up
58% of all emissions in St. Louis Park, a large focus of the CAP is reducing energy consumption
across building types. Sustainability Division staff have developed a “Climate Champions”
program which seeks to engage, reward and recognize residential and commercial property
owners who choose to complete a no/low-cost energy assessment at their property and
commit to undertake building energy improvements using loan and/or rebate programs. This
includes existing loan and rebate programs through the city and partner organizations, as well
as some new city rebate programs for 2020 and beyond.
Although the Climate Champions program materials and plan are nearly complete, the division
cannot launch that program in the community as planned for a variety of reasons, including the
inability for energy audit providers to do energy assessments and the sensitive nature of
engaging business owners at this time with a new program that requires their time and (in many
cases) funds. Climate Champions will also require a significant amount of outreach which was to
be accomplished with the assistance of two sustainability specialists, however, hiring of the
second specialist (who was scheduled to begin in June) has been delayed until further notice.
Present considerations: The COVID pandemic does not necessitate that the city’s progress on
the Climate Action Plan be suspended; if anything, the pandemic demonstrates how closely the
two crises are intertwined and how urgently action is needed to address both. Given the
financial hardships facing our community, the Sustainability Division proposes to rearrange its
work plan to focus now on programs sensitive to our community’s immediate and acute needs,
keeping our climate action work active while promoting long-term sustainability.
The Sustainability Division proposes to create and promote a new campaign for residents
tentatively called “Conservation…in the Park.” This campaign will promote community-wide
money-saving programs such as CUB utility bill clinics, virtual Home Energy Squad visits, solid
waste strategies, and behavior-based energy, fuel and water savings ideas. The campaign will
be tailored with targeted ideas for both renters and homeowners of all income levels. Outreach
will be done virtually plus flyering of some multi-family buildings when that is possible. City
leaders are welcome to participate in promotional opportunities for one or more money-saving
program.
Additionally, work will continue on the benchmarking ordinance implementation, website
redevelopment, Environment and Sustainability Commission (ESC) support, planned Solar
Power Hour events, Earth Day/Arbor Day postponed planning for October, and the ESC hosting
a proposed Ride & Drive event. The division will also begin work on developing internal
professional development workshops for city staff to further understanding of sustainability,
the Climate Action Plan, and climate equity.
Assuming circumstances with the pandemic permit, in 2021 the Climate Champions for
commercial & industrial businesses will be launched (followed by the residential programs)
while the division continues work on benchmarking ordinance compliance, hosting internal
workshops, and managing a greenhouse gas inventory (with accompanying website to share
progress towards carbon neutrality).
Study session meeting of May 26, 2020 (Item No. 2) Page 3
Title: Climate action in time of COVID
In order to measure our progress towards reaching carbon neutrality, the division must identify
suitable metrics for each goal and/or strategy. One such goal is 100% renewable energy
community-wide by 2030. Sustainability staff are requesting that the city council provide policy
direction on how on-site solar energy is measured; research and recommendations can be
found in Attachment B. To summarize, staff recommends that when considering the Climate
Action Plan goal of 100% renewable energy community-wide, council include all in-boundary
solar arrays whether or not the property owner retains the Renewable Energy Credits (RECs).
The definition of a REC is included in Attachment B. On-site generation has benefits beyond
simply environmental attributes; it increases property values, supports local job creation, and
improves grid resiliency (when used with energy storage). Rather than tracking total electricity
produced by rooftop solar arrays, staff can track the total capacity (kilowatts) of panels installed
in-boundary over time.
The Environment and Sustainability Commission has reviewed both the work plan and the
Renewable Energy Credit policy recommendations; their feedback has been incorporated into
both attachments.
Financial Considerations: Not offering new incentives to commercial and residential property
owners this year will result in a $100,000 savings from the adopted 2020 budget and will assist
in resolving budget challenges due to the pandemic ; this includes incentives for energy
efficiency proposed under the Climate Champions program and a new “Solar Sundown”
incentive program aimed at increasing adoption of residential on-site solar. Postponing a 2020
municipal greenhouse gas emissions inventory until 2021 would result in an additional $30,000
savings from the adopted 2020 budget. Assuming budget circumstances permit, the
Sustainability Manager proposes budgeting a similar amount for the division in 2021,
anticipating that the program designs will not change significantly.
To roll-out the Climate Champions programs in 2021, the second Sustainability Specialist will be
needed to support the planned outreach efforts. Funds will also be requested in the proposed
2021 budget for this hire.
Next steps: Sustainability staff will move forward with the 10-month work plan (Attachment A)
following the outcome of the city council discussion.
Study session meeting of May 26, 2020 (Item No. 2) Page 4
Title: Climate action in time of COVID
Attachment A:
Sustainability Division proposed 10-month work plan
2020 Sustainability Manager Sustainability Specialist
June •Budget development
•Benchmarking compliance
•Communications
•Launch “Conservation…in the Park”
campaign (money-saving strategies
for residents)
•Launch utility bill clinics with CUB and
do outreach to multifamily
•Assist with Solar Power Hours
•ESC support
•Revise Sustainability website
•Communications—GreenSteps
•Launch “Conservation…in the
Park” campaign (money-saving
strategies for residents)
•Launch utility bill clinics with CUB
and do outreach to multifamily
•On-going grant research
•Assist with Solar Power Hours
July •Benchmarking compliance
•Conservation campaign—produce
virtual HES video feat. local leader
•Utility bill clinics with CUB
•Develop plan for internal staff
workshops
•Assist with Solar Power Hours
•ESC support
•Conservation campaign—produce
virtual HES video feat. local leader
•Utility bill clinics with CUB
•Assist with Solar Power Hours
•Communications
August •Benchmarking compliance
•Conservation campaign
•Utility bill clinics with CUB
•Assist with Solar Power Hours
•Develop internal staff workshops
•Research non-SOV transportation
modes for new initiatives—transit
promotion TBD
•ESC support
•Conservation campaign
•Utility bill clinics with CUB
•Assist with Solar Power Hours
•On-going grant research
•Communications
September •Plan for postponed Arbor Day/Earth
Day
•Plan for more public EV charging
stations
•Conservation campaign
•Assist with Solar Power Hours
•Develop internal staff workshops
•Research non-SOV modes for new
initiatives
•ESC support
•Conservation campaign
•Plan for postponed Arbor
Day/Earth Day
•Plan for Ride & Drive event TBD
•Assist with Solar Power Hours
•Develop internal staff workshops
•Communications
Study session meeting of May 26, 2020 (Item No. 2) Page 5
Title: Climate action in time of COVID
October •Arbor Day/Earth Day event
•Develop internal staff workshops
•Develop metrics for measuring GHGs
•Research non-SOV modes for new
initiatives
•ESC support
•Arbor Day/Earth Day event
•Research on Advanced Strategies
•Develop internal staff workshops
•Plan for Ride & Drive event TBD
•On-going grant research
•Communications
November •Develop metrics for measuring GHGs
•Ride & Drive event TBD
•Research non-SOV modes for new
initiatives
•Internal workshop
•ESC support
•Develop CAP progress page for
website
•Research non-SOV modes for new
initiatives
•Ride & Drive event TBD
•Internal workshop
•Communications
December •Finalize metrics for measuring GHGs
•Research on Advanced Strategies
•Prep for GHG inventory
•ESC support
•Develop CAP progress page for
website
•Research on Advanced Strategies
•Communications
2021
January •GHG inventory
•Prep for Climate Champions
•Prep for benchmarking year two
•Internal workshop
•ESC support
•Prep for Climate Champions
•Update GHG metrics page for
website
•Internal workshop
•Communications
February •Prep for Climate Champions
•Prep for benchmarking year two
•ESC support
•Prep for Climate Champions
•Update GHG metrics page for
website
•Communications
March •Launch Climate Champions for C&I
•Prep for benchmarking year two
•ESC support
•Launch Climate Champions for C&I
•Communications
Sustainability Manager Sustainability Specialist
Study session meeting of May 26, 2020 (Item No. 2) Page 6
Title: Climate action in time of COVID
Attachment B:
Renewable Energy Credits: Measuring the carbon impacts of on-site solar in St. Louis Park
Background
Goal 5 of St. Louis Park’s Climate Action Plan calls for the use of 100% renewable energy community-
wide by 2030. The initiatives listed for achieving this goal include a mix of ideas that suggest property
owners can either retain or relinquish the Renewable Energy Credits associated with the renewable
energy they generate on their property—without distinguishing the difference between the two paths
or recommending policy for handling Renewable Energy Credits.
Renewable Energy Credits or Certificates, also known as RECs, are the legal instruments that
represent all of the environmental attributes of 1 Megawatt-hour (MWh) of renewable
electricity. A REC gives to its owner the right to claim the associated environmental attributes of
its generating resource—a REC is a unit of “greenness.” RECs are tracked and traded separately
from the electricity generated by their source. Only the party that retains and “retires” the REC
(takes it out of circulation) can claim the environmental benefits because that party paid a cost
to bring renewable energy to the grid; legally, per rules administered by the Federal Trade
Commission, those who relinquish the RECs can only claim that they “support” renewable
energy generally, not that their building is powered by it.
Renewable energy options and RECs in St. Louis Park
Renewable energy can be produced on-site or purchased from an off-site installation. This
section describes options under both models and how RECs are treated under each option.
On-site solar
One of the CAP strategies listed for reaching the 100% renewable goal is “Meet 10% of building
electricity consumption with rooftop solar by 2030” (this is known as an in-boundary goal),
which equates to 37 megawatts of rooftop solar community-wide (including commercial,
residential, institutional, and government building roofs). The plan does not specify under
which Xcel solar program these local rooftop solar arrays should operate, and the differences
between the programs are significant.
Xcel Energy has two programs for property owners who install on-site solar: Solar*Rewards and
non-Solar*Rewards.
•Under the Solar*Rewards program, a $/kilowatt-hour incentive is paid to the solar array owner
by Xcel in exchange for the ability to claim the owner’s RECs; this helps Xcel to meet its
renewable energy mandate set by the state. What this means is that a property owner cannot
make any public claims about using renewable energy or being energy independent for the first
10 years of the array’s life if they install solar under this program.
•Under the non-Solar*Rewards program, property owners do not receive any financial incentive
but can claim they are powered with renewable energy because they retain the RECs produced.
Study session meeting of May 26, 2020 (Item No. 2) Page 7
Title: Climate action in time of COVID
Off-site solar: Community Solar Gardens
Many residents and business owners are unable to install solar on their rooftop because they
don’t have a good solar resource, are renters, or cannot afford to. Community solar allows
utility customers to subscribe to a solar garden that is sited in another location. While
community solar garden subscribers are supporting solar energy in Minnesota, all RECs
generated by those gardens are retained by Xcel under the program called Solar*Rewards
Community.
Off-site solar: Green power purchases
Xcel offers two different green power purchasing programs—WindSource and
Renewable*Connect—under which subscribers can opt to pay a premium for their power in
exchange for retaining the RECs. RECs from Renewable*Connect and Windsource are certified
through Green-e, the nation’s leading independent consumer protection program for the sale
of renewable energy and greenhouse gas reductions in the retail market.
Summary chart
Policy question
Does “100% renewable energy community-wide by 2030” mean that all of the RECs produced by on-site
renewables in St. Louis Park must be retained by the property owners, or should the goal be interpreted
more broadly to include RECs produced by on-site renewables but retired by Xcel?
To answer this question, the Sustainability Division looked into the popularity of the two Xcel on-site
solar programs in St. Louis Park in order to recommend a position for the city council to take.
Study session meeting of May 26, 2020 (Item No. 2) Page 8
Title: Climate action in time of COVID
Historical data
Xcel’s Community Energy Reports (available beginning in 2016) provide a window into the use
of each of Xcel’s on-site solar programs. The graphs below summarize the reports; report data
can be found in the appendix.
Notes:
•Xcel Community Energy Reports are not available prior to 2016.
•Xcel does not track total non-Solar*Rewards installations over time, only installations
installed each year.
•Xcel cannot report total energy produced by non-Solar*Rewards customers’ arrays
because the utility only bills for usage that was not avoided.
0
20
40
60
80
100
120
2016 2017 2018New Kilowatts InstalledOn-site Solar Programs in St. Louis Park -
Capacity Installed by Year
Solar*Rewards non-Solar*Rewards
0
2
4
6
8
10
12
2016 2017 2018New InstallationsOn-site Solar Programs in St. Louis Park -
Total Installations by Year
Solar*Rewards non-Solar*Rewards
Study session meeting of May 26, 2020 (Item No. 2) Page 9
Title: Climate action in time of COVID
Conclusions
•On-site solar adoption (as indicated by number of installations) increased each year
from 2016-2018.
•Neither residential nor commercial customers are embracing the non-Solar*Rewards
solar option. Most likely, they prefer to receive the bill credit/incentive that comes with
Solar*Rewards and may not realize or care that this means they relinquish the RECs.
•Statewide (not included in this summary), residential customers rarely choose non-
Solar*Rewards).
•In 2018, 109,819 kWh of solar (60%) was produced by Solar*Rewards customers in St.
Louis Park and another (approximately) 74,000 (40%) was produced by non-
Solar*Rewards customers. This, however, may not be significant since those non-
Solar*Rewards customers represent only two installations, and both are on commercial
buildings.
Recommendations
Given that few, if any, customers are choosing the non-Solar*Rewards program, Sustainability staff
recommends that when considering the Climate Action Plan goal of 100% renewable energy community-
wide, council include all in-boundary solar arrays whether or not the property owner retains the RECs
(i.e., the broad interpretation). On-site generation has benefits beyond simply environmental attributes;
it increases property values, supports local job creation, and improves grid resiliency (when used with
energy storage).
Rather than tracking total electricity produced by rooftop solar arrays (which is not feasible considering
that production data from non-Solar*Rewards customers cannot be obtained), staff can track the total
capacity (kilowatts) of panels installed in-boundary over time. While only a fraction of this solar power
will be “attributable” to St. Louis Park given that the vast majority of property owners surrender their
RECs to Xcel, the solar energy is helping Xcel to reach its Renewable Portfolio Standard (RPS)
requirement set by the state. Whether it’s individual property owners or a large utility transitioning
from brown to green energy, cleaning up the grid and burning less fossil fuel affects every single
resident in Xcel’s territory—including everyone who lives or works in St. Louis Park—and beyond.
Future policy analysis could examine renewable energy used to power city operations. The city is
powered 100% by renewable energy through a few different mechanisms; it retains the RECs for the
three on-site solar arrays on its own facilities, and all city operations not powered by these arrays use
100 percent renewable energy through Xcel Energy’s renewable energy subscription programs,
Renewable*Connect and Windsource. In exchange for retaining the RECs, the city pays a premium for
these electricity subscriptions—an estimated $8,000 and $98,000 annually, respectively.
The council may wish to explore alternatives to these subscription agreements, which are both
contracted to end in 2022. While demonstrating leadership by example is an important aspect of
claiming that 100% renewable-energy powered operations, there may be more cost-effective ways to
achieve the same result. For example, if subscriptions are available the city could subscribe to one or
more community solar gardens for these blocks of power; while that would mean relinquishing the RECs
to Xcel, the city could then use the potential savings from the solar garden subscriptions to purchase
RECs on the open market.
Study session meeting of May 26, 2020 (Item No. 2) Page 10
Title: Climate action in time of COVID
Appendix: Xcel Community Energy Reports
2016:
On-site Solar
(Solar*Rewards)
No RECs
Total
Installations
New Installations
During
Reporting Year
Total Capacity
(kW)
Capacity Installed
During
Reporting Year
(kW)
Total Energy
Produced
(kWh)
Community -
Business Total 11 2 253 40 0
Community -
Residential Total 12 5 79 36 5,711
TOTAL 76 5,711
On-site Solar
(non-
Solar*Rewards)
RECs
Total
Installations
New Installations
During
Reporting Year
Total Capacity
(kW)
Capacity Installed
During
Reporting Year
(kW)
ASSUMED Total
Energy
Produced (kWh)
Community -
Business Total n/a 0 n/a 0 0
Community -
Residential Total n/a 0 n/a 0 0
2017:
On-site Solar
(Solar*Rewards)
No RECs
Total
Installations
New Installations
During
Reporting Year
Total
Capacity
(kW)
Capacity Installed
During
Reporting Year
(kW)
Total Energy
Produced
(kWh)
Community -
Business Total 13 2 332 80 9,203
Community -
Residential Total 17 5 109 30 29,518
TOTAL 110 38,721
On-site Solar
(non-
Solar*Rewards)
RECs
Total
Installations
New Installations
During
Reporting Year
Total
Capacity
(kW)
Capacity Installed
During
Reporting Year
(kW)
ASSUMED Total
Energy
Produced (kWh)
Community -
Business Total n/a 0 n/a 0 0
Community -
Residential Total n/a 0 n/a 0 0
Study session meeting of May 26, 2020 (Item No. 2) Page 11
Title: Climate action in time of COVID
2018:
On-site Solar
(Solar*Rewards)
No RECs
Total
Installations
New Installations
During
Reporting Year
Total
Capacity
(kW)
Capacity Installed
During
Reporting Year
(kW)
Total Energy
Produced
(kWh)
Community -
Business Total 18 2 372 39 36,917
Community -
Residential Total 29 8 172 63 72,902
TOTAL 102 109,819
On-site Solar
(non-
Solar*Rewards)
RECs
Total
Installations
New Installations
During
Reporting Year
Total
Capacity
(kW)
Capacity Installed
During
Reporting Year
(kW)
ASSUMED Total
Energy
Produced (kWh)
Community -
Business Total n/a 2 n/a 78 74,000
Community -
Residential Total n/a 0 n/a 0 0
Meeting: Study session
Meeting date: May 26, 2020
Discussion item: 3
Executive summary
Title: Future study session agenda planning and prioritization
Recommended action: The city council and city manager to set the agenda for the regularly
scheduled study session on June 8, 2020.
Policy consideration: Not applicable.
Summary: This report summarizes the proposed agenda for the regularly scheduled study session
on June 8, 2020.
Also attached to this report is:
- Study session discussion topics and timeline
Financial or budget considerations: Not applicable.
Strategic priority consideration: Not applicable.
Supporting documents: Tentative agenda – June 8, 2020
Study session discussion topics and timeline
Prepared by: Maria Solano, senior management analyst
Approved by: Tom Harmening, city manager
Study session meeting of May 26, 2020 (Item No. 3) Page 2
Title: Future study session agenda planning and prioritization
June 8, 2020.
6:30 p.m. Study session - To be held via videoconference
Tentative discussion items
1.Crime-free workgroup – Community Development (90 minutes)
Follow-up discussion with the Crime Free Workgroup on recommendations for changes to the
crime free rental ordinance that were presented at the March 9 study session.
**Due to the COVID-19 emergency declaration, this item is considered essential business and is
Categorized as Time-Sensitive**
2.Future study session agenda planning – Administrative services (5 minutes)
Communications/meeting check-in – Administrative services (5 minutes)
Time for communications between staff and council will be set aside on every study session
agenda for the purposes of information sharing.
Written reports
3.PLACE redevelopment contract update
Study session meeting of May 26, 2020 (Item No. 3) Page 3
Title: Future study session agenda planning and prioritization
Study session discussion topics and timeline
Priority Discussion topic Comments Timeline
1
Prioritizing transit options thru
investments, and engineering
and operations decisions
SS discussion 10/21/19. Next steps: staff reach out to
Metro Transit, bench company, and Met Council rep.
Update – staff met with Metro Transit Dec., 2019
In process
2 Climate crisis SS discussion re: climate action in time of COVID May 26, 2020
3 Discuss public process
expectations and outcomes
Staff is working on the approach for undertaking this
discussion. TBD
4
Revisit housing setback, FRA, &
more to maintain and create
more affordable housing
TBD
5 Home-based businesses TBD
6 Public forums at council mtgs 9/23/19 SS. Staff is doing research of other cities. TBD
7 STEP discussion: facilities
Discussed on 1/14/19; city, STEP & school toured Central
Community Ctr and continuing discussions; 5/11/20
council asked staff to consider lending options to assist
STEP in buying a new building
TBD
8 Community and neighborhood
sidewalk designations TBD
9
Remove mint & menthol
exemption from existing
flavored tobacco policy
TBD
10
Easy access to nature, across
city, starting w/ low-income
neighborhoods
TBD
11 Conversion therapy ban TBD
12 Changes to sign ordinance TBD
13 WHNC Access Fund *On hold pending direction from school district.*On hold
SEED’s community greenhouse
/resilient cities initiative
On hold until Food Access and Security study is
complete, and recommendations have been made.
March 9,
2020
Revitalization of Walker Lake
area
Part of preserving Walker building reports: 8/28/17,
9/25/17, 1/22/18, design study 2/12/18, update 4/23/18,
design study updates 8/27/18; SS report 2/11/19; SS
discussion 5/28/19, planning commission to review
ordinances for implementation Qtr. 3 & 4 2019; parking
ord. in process of council approval; construction of phase
1 completed; Planning for 2020 phase 2 construction
work underway
In process
Crime free ordinance/
affordable housing strategies
Discussed 5/14/18. 1st reading housing trust fund
10/1/18; Other affordable housing strategies/Crime Free
Ordinance – Nov/Dec, 12/10 & 12/17/18 & 1/14/19
council discussion; Certain provisions of crime free ord.
suspended; Work group formed; CFO work group
discussed on 3/25/19; Work group had 1st mtg in May,
two meetings in June, one in July and August. Meetings
on Sept 26, Oct 9, Oct 30, Nov 13, Dec 4.
June 8
Meeting: Study session
Meeting date: May 26, 2020
Written report: 4
Executive summary
Title: Temporary expanded outdoor customer service areas
Recommended action: **Due to the COVID-19 emergency declaration, this item is considered
essential business and is categorized as Time Sensitive**
Policy consideration: Does the city council support an expedited process to permit temporary
outdoor commercial areas to facilitate a phased re-opening of businesses in St. Louis Park and to
waive fees associated with these temporary permits ?
Summary: On Wednesday, May 20, 2020 Gov. Walz announced his decision to allow limited
outdoor dining at restaurants and bars starting June 1, 2020. Under this order, outdoor dining is
limited to no more than 50 patrons and must adhere to social distancing guidelines. Additionally,
on May 13, 2020, the Governor announced a decision to allow retail to open at 50% capacity and
allow social gatherings of 10 people or less. The announcement also includes future phases of
expanded services in a variety of settings with the timing of those phases to be determined. To
support our businesses and facilitate the Governor’s decision, staff proposes that the city allow
businesses to temporarily expand some aspects of their business outdoors in order to help offset
limits on using the building itself. This may include uses such as outdoor seating, retail and small
fitness classes per guidance from the Governor.
Expanding business activities to areas outside the building could have impacts on adjacent
properties, public streets and sidewalks. Therefore, staff is preparing a process that will allow
businesses to submit a temporary outdoor use plan that staff would review quickly. Staff is
working with a few local restaurants, taprooms and cocktail room owners to draft this process.
In order to take this adapted approach, city staff seek authority from the city council to
temporarily waive or relax some of the procedural and other zoning regulations, such as setbacks
and minimum parking requirements, that may conflict with proposals for temporary outdoor
uses. Staff is also asking to waive fees for permits such as signage, tents, and temporary use
permits. Businesses will still be required to meet life safety requirements and apply for a tent
permit and liquor license amendments when applicable. The proposed policy is intended to be
specific enough to give staff direction, yet allow staff the flexibility to quickly respond to changes
in the Governor’s plan under direction of the city manager. Staff proposes that the temporary
measures be allowed until December 31, 2020, or until repealed by the city council.
Next Step: Staff recommends the council approve the attached temporary outdoor customer
service area policy. Staff intends to place this policy on the June 1, 2020 agenda for council
consideration.
Financial or budget considerations: Some permit revenue loss but not considered significant.
Supporting documents: Discussion; St. Louis Park policy for temporary outdoor customer service
areas; May 20 and May 13, 2020 Governor Walz press releases; Stay Safe MN categorical updates
Prepared by: Gary Morrison, assistant zoning administrator
Reviewed by: Sean Walther, planning and zoning supervisor
Approved by: Tom Harmening, city manager
Study session meeting of May 26, 2020 (Item No. 4) Page 2
Title: Temporary expanded outdoor customer service areas
Discussion
Background: Effective June 1, 2020, Governor Walz is allowing restaurants and bars to open
outdoor seating with a maximum capacity of 50 persons and a requirement that they meet
social distance guidelines. Additionally, on May 18th, Governor Walz allowed non-essential
businesses and retailers to reopen with social distancing rules, and letting gatherings of 10 or
fewer people to resume.
As a result of these steps to phase reopening, staff anticipat es that many businesses will want to
temporarily expand some of their activities outdoors. These temporary outdoor activities may
include seating areas for restaurants, taprooms and cocktail rooms. They may also include other
activities such as outdoor classes including yoga and fitness.
It is difficult to anticipate all the requests we may receive. Therefore, staff will have to exercise
discretion to accommodate what is reasonable while being sensitive to potential safety and
nuisance impacts that may result.
For the convenience of businesses, staff is preparing a handout that defi nes the proposed
parameters for temporary outdoor uses and the requirements of the plans to be submitted for
review. This will assist business owners to decide which activities they may move outside, formulate
plans to reasonably accommodate the temporary activity, and clarify the city’s review process.
Staff has been working with one cocktail room and has been talking to one restaurant owner
while developing this process. Both are being proactive in their preparations to reopen. Staff will
have them review our proposed process and will invite other businesses to comment.
Present considerations: When reviewing temporary expanded outdoor customer service areas,
staff will consider potential impacts such as:
Parking, traffic and site impacts. Many of the businesses interested in temporarily expanding
their outdoor seating areas or other outdoor activities have limited potential for expansion.
Often these areas may require the repurposing of existing pedestrian walkways or parking lot
surfaces. Staff would need to review any proposal to ensure that the proposed location does not
unduly create conflicts between vehicle and pedestrian traffic or interfere with the site’s internal
traffic circulation. Additionally, in cases where parking lot spaces are proposed for convers ion
into temporary outdoor customer service areas, staff will need to judge whether adequate
parking remains.
Some locations for temporary outdoor customer service areas will be located near the building.
Staff anticipates that there could be conflicts between these areas and required ADA accessible
parking spaces and entrances meeting Minnesota accessibility code requirements. Staff will
need to review proposals to ensure that the code’s parking and accessibility requirements are
met. Additionally, any outdoor customer service areas would also have to be configured in such
a way as to meet accessibility requirements.
Finally, if the business proposes to use temporary structures, i.e. tents or canopies, in conjunction
with these outdoor service areas, then a tent permit will be required from the fire department.
Study session meeting of May 26, 2020 (Item No. 4) Page 3
Title: Temporary expanded outdoor customer service areas
To review the request, staff will require a detailed site plan showing the proposed temporary
outdoor customer service area, any proposed changes/impacts to parking/traffic circulation, and
any temporary structures along with construction documents delineating the means of egress
and occupant load.
Liquor license. Some restaurants interested in temporarily expanding their outdoor seating areas
also hold liquor licenses. Since liquor sales are heavily regulated by the state and governed by a
city-issued liquor license, city approval is required to temporarily expand the licensed premise to
include the temporary outdoor seating area. The city clerk’s office is collaborating with
community development to facilitate this process for liquor license holders and ensure that all
state and local laws continue to be followed, including details related to liquor liability insurance
coverage for the expanded licensed premises. If council approves the proposed policy, premises
amendments for liquor licenses are able to be approved by the city manager or designee.
Metropolitan Council sewer availability charge (SAC). Expansion of the outdoor seating area may
trigger additional SAC fees. The Metropolitan Council offers a temporary SAC determination for
special events, and they will be following that process for this situation. The SAC fee is
$10.35/SAC unit times the number of months the temporary use will extend. The Metropolitan
Council has not yet determined if they will waive fees or abbreviate the process at this time.
Approval mechanism. Since increasing the size of restaurants’ outdoor patios has the potential
to impact a site’s available parking and traffic circulation, as well as its ability to meet
accessibility, fire and liquor license requirements, a mechanism is required to review any
proposed expansion. The city code has a mechanism in place that allows staff to review and
approve temporary outdoor sales. This mechanism, however, has two problems that need to be
resolved through the proposed policy by the council for city staff to utilize it.
1. The temporary outdoor sales are for the sale of merchandise. While this will work for retail,
restaurants, taprooms and cocktail rooms, it may not work for other uses such as fitness
classes.
2. The temporary outdoor sales rules include size and time limits. If the outdoor area is less
than 100 square feet, then there are no time limits. If it exceeds 100 square feet, then it is
limited to four consecutive days and not to exceed 14 days per calendar year.
The proposed policy for temporary outdoor customer service areas would allow staff to waive
the time limits and expand the temporary uses to uses other than food and retail. While we are
expecting several permits in a short period of time, i t should be noted that staff is experienced
at using this mechanism to evaluate proposals which must meet the requirements of multiple
departments. Staff will make every effort to answer questions and process the applications as
quickly as possible.
Permit fees. In addition to facilitating the phased reopening of our businesses, staff is proposing
to waive fees associated with the permits. These permits and fees include: Tents over 400
square feet ($100). There is no permit required for tents under 400 square feet. Temporary
signage ($30). No fees are typically charged for a liquor license temporary premises amendment
or for a temporary outdoor sales permit.
Study session meeting of May 26, 2020 (Item No. 4) Page 4
Title: Temporary expanded outdoor customer service areas
Next steps: Staff propose to have the policy on the June 1, 2020 city council agenda for
consideration unless directed otherwise. Staff proposes the council approve the attached policy
for temporary outdoor customer service area. Staff is still soliciting input from local businesses.
Therefore, it may be possible that changes may be proposed to the draft on June 1. Staff w ill
outline those changes, if any, at that time.
Study session meeting of May 26, 2020 (Item No. 4) Page 5
Title: Temporary expanded outdoor customer service areas
Policy for Temporary Outdoor Customer Service Areas
Pursuant to Mayoral Proclamation and Council Resolution, the City of St. Louis Park has declared
a Peace Time Emergency due to the COVID-19 Health Pandemic.
In furtherance of the federal, state and local government response, there is a need to provide
multiple additional and alternative customer service areas on commercial sites in order to limit
forward facing exchanges between customers and employees, and to promote physical and
social distancing between persons engaged in business activities within the City.
Effective immediately, and notwithstanding any city code provision to the contrary, any business
located in a commercial or industrial zone may establish drive-up or drive-thru areas, customer
ordering, waiting or pick-up areas, or customer seating or service areas on its property to
facilitate safe commercial activity conducted consistent with federal and state orders or
guidelines. The temporary outdoor customer service area may occur in parking areas or green
space areas without need for a variance. However, if the business is not the fee owner of the
property used by the business for the temporary outdoor use, any temporary outdoor use must
have written approval from the fee owner of the premises.
No city permits are required; however, operators must prepare a plan to be approved by the city
manager (or designee) prior to establishing a temporary customer service area. The plan shall
illustrate on-site traffic, a map of the expansion, and operational management. Additionally, the
plan must show that temporary customer service areas do not impede sidewalk usage, block
disabled person parking spaces or routes, and that all activities do not create nuisance
conditions for abutting properties or the general public.
On-site signage is authorized. Temporary tables, tents and sun shelters may be erected, but any
structure requiring state building and fire code permits must submit plans and permit
applications for accelerated review by city staff.
If alcohol is to be dispensed or consumed in the proposed temporary customer areas, the
licensee must obtain approval for a modification to their defined premises areas in the liquor
license through the city manager (or designee).
On-site signage is authorized. Temporary tables, tents, and sun shelters may be erected, but any
structure requiring state building and fire code permits must submit plans and permit
applications for accelerated review by city staff.
Fees will be waived for required permits and licenses associated with the temporary use.
The terms and conditions of this order may be modified or clarified by subsequent order and
those changes may have retroactive effect.
This policy will continue until December 31, 2020 unless repealed by subsequent City Council
action or termination of the state of emergency. Effective this ____ day of May 2020.
_________________________ _______________________
Jake Spano, Mayor Melissa Kennedy, City Clerk
Study session meeting of May 26, 2020 (Item No. 4) Page 6
Title: Temporary expanded outdoor customer service areas
Governor Walz Announces Plans for Outdoor
Dining, Limited Occupancy Salons
Administration Lays Out Stay Safe Phases for Reopening Society
May 20, 2020
[ST. PAUL, MN] – Governor Tim Walz today announced the phases in his Stay Safe Plan, including a
cautious, strategic turn of the dial to allow limited outdoor dining at restaurants and bars starting June 1,
2020. The Governor also announced that salons and barbershops will be allowed to open June 1 at 25
percent occupancy to ensure the safety of both the employees and the customers inside. In both
industries, customers will be either strongly recommended or required to wear masks, make reservations,
and adhere to social distancing requirements to keep themselves, other customers, and employees safe.
“Our restaurants and bars are an integral part of the social fabric of Minnesota, and it has been
heartbreaking to see this pandemic wreak havoc on our hospitality industry,” said Governor Walz.
“While the virus won’t yet allow for business as usual, let’s do what we do best after winter in
Minnesota and head outside. Whether it’s a Jucy Lucy, a plate of tamales, or a walleye dinner,
Minnesotans can support their local restaurant by enjoying a socially distanced meal outdoors.”
Outdoor dining can begin on June 1, with restaurants maintaining social distancing and seating no more
than 50 patrons at a time. In addition to outdoor dining, restaurants and bars will be able to continue to
offer takeout, curbside, and delivery services, which have been permitted throughout the pandemic in
Minnesota. While Minnesota has ranked first in the nation for takeout and delivery patronage during the
outbreak of COVID-19, restaurants and bars have been closed for in-person dining since March 17. Since
then, the State of Minnesota has worked with the health care sector to expand health care capacity and
procure ICU beds, ventilators, and personal protective equipment.
“This is a measured approach that matches the thoughtfulness and generosity of our
restauranteurs, who have found creative ways to safely feed their neighbors throughout this
pandemic – but making this work relies on all of us,” said Lt. Governor Peggy Flanagan. “Supporting
your favorite businesses means following health and safety rules at all times – making an
appointment or reservation, maintaining social distance, washing your hands, and wearing a mask.
It also means that workers are protected if they report concerns about the health and safety
practices of their workplace. That’s how we can keep each other healthy so we can continue safely
turning the dial in Minnesota.”
“It’s important for all Minnesotans to remember that they have a big role to play in making this
reopening process successful,” said Minnesota Department of Health Commissioner Jan Malcolm. “By
continuing to follow social distancing guidelines, wearing masks, washing hands, and staying
home when sick, we can limit the spread of COVID-19 and protect our most vulnerable friends and
family members.”
On May 13, Governor Walz replaced Minnesota’s Stay Home order with a Stay Safe order as Minnesota
continues to safely turn the dial back towards normal life. The Stay Safe order includes a plan for a phased
reopening of society as well as a plan to dial back based on the rate of testing, new cases,
hospitalizations, and deaths. Governor Walz has stressed the importance of reopening cautiously and
strategically, which is why salons and barbershops will be allowed to reopen on June 1 with only 25
percent occupancy and additional safety measures in place.
“While all Minnesotans are eager to get a haircut, we owe an enormous debt of gratitude to our
salons and barbershops that put their businesses on hold in order to allow the state time to
prepare for COVID-19,” Governor Walz continued. “With the addition of safety measures like personal
protective equipment and a limited number of people inside, it’s safe to say we’re not going back to
normal. But we can cautiously turn the dial back as Minnesotans continue to do their part to stay
safe. Make a reservation, wear a mask, wash your hands, and stay home if you’re feeling sick.”
Study session meeting of May 26, 2020 (Item No. 4) Page 7
Title: Temporary expanded outdoor customer service areas
“Now is the time for innovative solutions as we navigate a new normal, support our favorite
businesses and ensure the safety of workers and customers,” said Department of Employment and
Economic Development Commissioner Steve Grove. “This phased approach to reopening our
economy is rooted in safety for everyone, and will ensure we can continue to put more
Minnesotans back to work and make data-driven decisions at every turn of the dial.”
Outdoor dining and limited salon occupancy are part of phase II of Governor Walz’s Stay Safe Plan. This
phase will go into effect on June 1 and will include the opening of campgrounds and other recreational
activities. More information on the actives included in the various phases within the Stay Safe Plan can be
found here.
As the Walz-Flanagan Administration works to cautiously adjust the dials in Minnesota, the Governor has
taken steps to ensure workers are being protected as more businesses reopen. The Governor signed an
executive order preventing workers from being fired for refusing to work in unsafe conditions. Business
must continue to protect their employees while also taking steps to protect their customers.
Study session meeting of May 26, 2020 (Item No. 4) Page 8
Title: Temporary expanded outdoor customer service areas
Governor Walz Announces Next Phase of
COVID-19 Response in Minnesota
Citing progress made to prepare for peak of infection, Walz announced
measured, cautious ‘turning of dial’ toward new normal.
May 13, 2020
[ST. PAUL, MN] – Today, Governor Tim Walz announced the next phase of the COVID-19 response in
Minnesota. Citing progress made to prepare for peak of infection, the Governor announced a measured,
cautious turning of the dial toward a new normal. With the Stay Home Executive Order set to expire on
May 18, the Governor will replace it with an order continuing to encourage Minnesotans to stay close to
home but allowing for gatherings of friends and family of 10 people or less. The Governor will also open
retail stores and other main street businesses if they have a social distancing plan and operate at 50
percent occupancy.
“Minnesotans, thank you for your continued sacrifices,” Governor Walz said. “You have saved
thousands of lives. You successfully pushed out the peak of this virus and bought our state time to
get ready to treat those who fall ill. We know there’s no stopping the storm of COVID-19 from
hitting Minnesota, but we have made great progress to prepare for it.”
“This is not the time for sudden movements,” Governor Walz continued. “We are not flipping a
switch and going back to normal all at once. We are slowly moving a dial and introducing more
interaction between people over time. As we take cautious steps forward, it is more important than
ever that we protect those most at risk, support workers, and all do our part to slow the spread of
the virus.”
In conjunction with this announcement today, the Governor signed Executive Orders to protect
Minnesotans most at risk from the virus and safeguard workers. The first Executive Order strongly
encourages Minnesotans at greatest risk of serious illness to continue staying home. The second
Executive Order ensures workers can raise concerns regarding the safety of their work environments
without fear of discrimination or retaliation. It also protects workers from loss of income if they refuse to
work under unsafe or unhealthy conditions.
“As we slowly and cautiously move the dial, we are centering Minnesota workers in our
decisions,” said Lieutenant Governor Peggy Flanagan. “At this moment, worker protections are
paramount. Minnesotans with underlying conditions can and should continue staying home to
protect their health, and those who return to work can and should raise concerns about the health
and safety practices of their workplaces without fear of discrimination or retaliation. That’s how we
stay safe together.”
Following the guidance of public health officials, the Governor today announced a preliminary set of health
indicators that could trigger a decision to re-impose restrictions to slow the spread of the virus. These
indicators will be refined over time as we learn more about the virus and the course of the pandemic in
Minnesota. They include the number of COVID-19 tests that can be conducted as well as the rate of
increase in:
• Number of new COVID-19 cases
• Percent of COVID-19 tests that are positive
• Percent of COVID-19 cases for which the source of infection is unknown
“Minnesota is still in the early stages of the COVID-19 pandemic and we will be dealing with its
impacts for many months,” said Minnesota Commissioner of Health Jan Malcolm. “We’ve made
encouraging progress on preparedness and on safeguarding our most vulnerable, and that work
will continue. As Governor Walz adjusts the state’s response and guidance to meet current and
future needs, we will continue to track the course of the pandemic and apply the many things we
are learning about the virus and its risks. Our goal is to protect the most vulnerable Minnesotans
while also learning how to live with this pandemic until a vaccine becomes widely available.”
Study session meeting of May 26, 2020 (Item No. 4) Page 9
Title: Temporary expanded outdoor customer service areas
When the Stay Home MN order ends on May 18, the Governor announced today that he will be replacing it
with a new order that brings back more social interactions. Titled “Stay Safe MN,” Minnesotans are still
asked to stay close to home and limit travel to what is essential. But the order allows gatherings with
friends and family in groups of 10 or less with social distancing. In all cases, Minnesotans are asked not to
gather in large groups. All gatherings are limited to 10 and social distancing with masks, hand-washing and
other safety measures should be followed to protect each other.
An additional executive order announced today will allow retail stores, malls, and main street businesses to
reopen for in-person shopping as long as they have a COVID-19 Preparedness Plan in place that
incorporates social distancing protocols for workers and customers and limits occupancy to no more than
50 percent of the establishment’s occupant capacity. The Department of Employment & Economic
Development (DEED) estimates that this action will enable up to 37,000 more workers to safely return to
work over the next several weeks. Additional guidance, including a template plan and checklist for
businesses, is available on DEED’s website at mn.gov/deed/safework.
“Ensuring the health and safety of workers and customers is the top priority as we gradually
reopen our economy and put more people back to work,” said DEED Commissioner Steve
Grove. “We have worked closely with our state’s business community and labor organizations and
listened to Minnesotans across the state about our next steps, and we’re eager to see more
businesses expand operations with the necessary safety protocols in place.”
The Governor also announced today that he is directing his cabinet to assemble similar guidance on how
to safely re-open bars, restaurants, barbershops, and salons beginning June 1. This will coincide with a
significant increase in testing, tracing, and isolating the virus in the state.
The Governor today also extended his peacetime emergency authority until June 12. Extending the
peacetime emergency in Minnesota allows the Governor to keep his toolbox open so he can take critical,
swift action to protect Minnesotans. Being in a peacetime state of emergency has allowed Minnesota to:
enhance protections for veterans in our veterans homes; activate the National Guard to assist in relief
efforts; provide economic relief and stability to those impacted by the pandemic; and more.
Study session meeting of May 26, 2020 (Item No. 4)
Title: Temporary expanded outdoor customer service areas Page 10
Meeting: Study session
Meeting date: May 26, 2020
Written report: 5
Executive summary
Title: April 2020 monthly financial report
Recommended action: **Due to the COVID-19 emergency declaration, this item is considered
essential business and is categorized as Time Sensitive**
Policy consideration: Monthly financial reports are part of our financial management policies.
Summary: The monthly financial report provides an overview of general fund revenues and
departmental expenditures and a comparison of budget to actual throughout the year. A
budget to actual summary for the four utility funds is also included.
Financial or budget considerations: Under normal circumstances, expenditures would generally
be at approximately 33% of the annual budget at the end of April. General fund expenditures
are running about 5% under at 28.4% of the adopted annual budget through April.
License and permit revenues are at approximately 53% through April. Over 85% of the business
and liquor license revenue has already been received, which is consistent with prior years.
Permit revenue is at 45% through April, which is down about 12% from the same time last year.
The effect of COVID-19 on revenues and expenditures isn’t yet clear, but staff continues to
monitor things such as permit revenue against anticipated impacts. The property tax
distribution from the county the first week in July will be another key indicator.
Strategic priority consideration: Not applicable.
Supporting documents: Summary of revenues and expenditures – general fund
Budget to actual – enterprise funds
Prepared by: Darla Monson, accountant
Reviewed by: Nancy Deno, deputy city manager/HR director
Approved by: Tom Harmening, city manager
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Actual $2,899 $6,184 $8,981 $11,848
Budget $3,475 $6,949 $10,424 $13,898 $17,373 $20,847 $24,322 $27,796 $31,271 $34,745 $38,220 $41,694
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$ THOUSANDS Monthly Expenditures -General Fund
Summary of Revenues & Expenditures - General Fund As of April 30, 2020 20202020201820182019201920202020Balance YTD Budget Budget Audited Budget Audited Budget YTD AprRemaining to Actual %General Fund Revenues: General Property Taxes25,705,886$ 26,597,928$ 26,880,004$ 26,952,306$ 28,393,728$ 28,393,728$ 0.00% Licenses and Permits3,924,648 4,001,644 4,103,424 5,264,659 4,660,811 2,476,254 2,184,557 53.13% Fines & Forfeits269,200 282,146 279,700 274,340 280,000 45,111 234,889 16.11% Intergovernmental1,864,877 2,006,435 1,760,900 1,761,763 1,760,082 409,480 1,350,602 23.26% Charges for Services2,162,410 2,180,589 2,187,319 2,160,345 2,273,824 354,917 1,918,907 15.61% Rents & Other Miscellaneous1,318,037 1,427,744 1,367,012 1,500,867 1,456,102 406,813 1,049,289 27.94% Transfers In1,929,090 1,929,076 1,999,877 2,012,706 2,038,338 660,780 1,377,558 32.42% Investment Earnings 160,000 251,494 180,000 523,124 210,000 210,000 0.00% Other Income40,950 35,802 31,300 57,274 621,280 208,776 412,504 33.60% Use of Fund Balance *523,835 298,156 230,026 - 0.00%Total General Fund Revenues37,898,933$ 38,712,858$ 39,087,692$ 40,737,411$ 41,694,165$ 4,562,130$ 37,132,035$ 10.94%General Fund Expenditures: General Government: Administration1,341,606$ 1,340,282$ 1,837,620$ 1,673,619$ 1,868,599$ 426,631$ 1,441,968$ 22.83% Finance978,752 964,036 1,034,199 1,078,291 1,124,045 333,258 790,787 29.65% Assessing759,865 710,715 772,746 751,737 808,171 244,601 563,570 30.27% Human Resources796,666 735,050 805,620 756,767 823,209 244,178 579,031 29.66% Community Development1,479,911 1,559,721 1,502,521 1,515,672 1,571,894 480,987 1,090,907 30.60% Facilities Maintenance1,162,342 1,223,109 1,170,211 1,209,474 1,265,337 356,841 908,496 28.20% Information Resources1,589,432 1,526,028 1,674,937 1,474,604 1,709,255 537,069 1,172,186 31.42% Communications & Marketing755,940 829,732 805,674 786,448 828,004 266,143 561,861 32.14% Community Outreach27,637 12,085 0.00%Total General Government8,892,151$ 8,900,758$ 9,603,528$ 9,246,612$ 9,998,514$ 2,889,708$ 7,108,806$ 28.90% Public Safety: Police9,930,681$ 9,877,014$ 10,335,497$ 10,452,038$ 10,853,821$ 3,292,408$ 7,561,413$ 30.33% Fire Protection4,657,973 4,630,520 4,813,078 4,754,524 5,040,703 1,487,819 3,552,884 29.52% Building 2,544,762 2,295,910 2,555,335 2,430,473 2,696,585 746,622 1,949,963 27.69%Total Public Safety17,133,416$ 16,803,444$ 17,703,910$ 17,637,035$ 18,591,109$ 5,526,849$ 13,064,260$ 29.73% Operations: Public Works Administration230,753$ 208,050$ 290,753$ 214,436$ 273,318$ 68,557$ 204,761$ 25.08% Public Works Operations3,091,857 2,998,935 3,111,481 3,099,493 3,331,966 832,523 2,499,443 24.99% Vehicle Maintenance1,253,367 1,210,279 1,242,236 1,268,700 1,278,827 397,877 880,950 31.11% Engineering525,834 552,432 570,377 609,567 551,285 86,539 464,746 15.70%Total Operations5,101,811$ 4,969,696$ 5,214,847$ 5,192,196$ 5,435,396$ 1,385,497$ 4,049,899$ 25.49% Parks and Recreation: Organized Recreation1,582,490 1,499,780 1,579,569 1,498,462 1,637,002 573,902 1,063,100 35.06% Recreation Center1,860,755 2,004,937 1,949,657 2,041,386 2,061,394 498,242 1,563,152 24.17% Park Maintenance1,830,530 1,866,744 1,833,297 1,820,455 1,906,363 499,014 1,407,349 26.18% Westwood Nature Center622,346 599,704 643,750 612,266 748,683 188,522 560,161 25.18% Natural Resources559,662 376,359 484,784 429,409 504,143 137,287 366,856 27.23%Total Parks and Recreation6,455,783$ 6,347,524$ 6,491,057$ 6,401,977$ 6,857,585$ 1,896,967$ 4,960,618$ 27.66% Other Depts and Non-Departmental: Racial Equity and Inclusion -$ -$ -$ 4,592$ 314,077$ 91,086$ 222,991$ 29.00% Sustainability26,283 497,484 58,265 439,219 11.71% Transfers Out1,040,000 300,000 0.00% Contingency and Other315,772 186,966 74,350 121,245 0.00%Total Other Depts and Non-Departmental315,772$ 1,226,966$ 74,350$ 452,119$ 811,561$ 149,351$ 662,210$ 18.40%Total General Fund Expenditures37,898,933$ 38,248,388$ 39,087,692$ 38,929,940$ 41,694,165$ 11,848,372$ 29,845,793$ 28.42%*Primarily related to E911 expenditures from restricted fund balance.Study session meeting of May 26, 2020 (Item No. 5) Title: April 2020 monthly financial reportPage 2
Budget to Actual - Enterprise FundsAs of April 30, 2020 Current BudgetApr Year To DateBudget Variance% of BudgetCurrent BudgetApr Year To DateBudget Variance% of BudgetCurrent BudgetApr Year To DateBudget Variance% of BudgetCurrent BudgetApr Year To DateBudget Variance% of BudgetOperating revenues: User charges 7,472,931$ 1,468,196$ 6,004,735$ 19.65% 7,897,086$ 1,831,341$ 6,065,745$ 23.19% 3,510,090$ 774,329$ 2,735,761$ 22.06% 3,065,882$ 810,660$ 2,255,222$ 26.44% Rent revenue, permits & other 533,242 445,006 88,236 83.45% 43,000 3,242 39,758 7.54% 169,100 169,100 0.00% - - Total operating revenues8,006,173 1,913,203 6,092,970 23.90% 7,940,086 1,834,583 6,105,503 23.11% 3,679,190 774,329 2,904,861 21.05% 3,065,882 810,660 2,255,222 26.44%Operating expenses: Personal services1,521,345 499,149 1,022,196 32.81% 809,868 274,916 534,952 33.95% 539,901 161,798 378,103 29.97% 896,367 198,420 697,947 22.14% Supplies & non-capital268,300 105,996 162,304 39.51% 72,500 13,554 58,946 18.70% 247,550 47,471 200,079 19.18% 12,500 12,500 0.00% Services & other charges2,073,702 618,461 1,455,241 29.82% 4,621,847 1,844,560 2,777,287 39.91%2,920,580 616,403 2,304,177 21.11% 329,946 98,484 231,462 29.85% Depreciation * Total operating expenses3,863,347 1,223,607 2,639,740 31.67% 5,504,215 2,133,030 3,371,185 38.75% 3,708,031 825,672 2,882,359 22.27% 1,238,813 296,904 941,909 23.97%Operating income (loss)4,142,826 689,596 3,453,230 16.65% 2,435,871 (298,447) 2,734,318 -12.25% (28,841) (51,343) 22,502 178.02% 1,827,069 513,756 1,313,313 28.12%Nonoperating revenues (expenses): Interest income 7,450 7,450 0.00% 13,250 13,250 0.00% 13,000 13,000 0.00% 5,600 5,600 0.00% Interest expense/bank charges(412,950) (203,835) (209,115) 49.36% (87,250) (33,136) (54,114) 37.98% (23,500) (23,500) 0.00% (34,850) (6,087) (28,763) 17.47% Total nonoperating rev (exp)(405,500) (203,835) (201,665) 50.27% (74,000) (33,136) (40,864) 44.78% (10,500) - (10,500) 0.00% (29,250) (6,087) (23,163) 20.81%Income (loss) before transfers3,737,326 485,761 3,251,565 13.00% 2,361,871 (331,582) 2,693,453 -14.04% (39,341) (51,343) 12,002 130.51% 1,797,819 507,670 1,290,149 28.24%Transfers inTransfers out(638,635) (212,878) (425,757) 33.33% (873,785) (291,262) (582,523) 33.33% (248,289) (82,763) (165,526) 33.33% (342,130) (114,043) (228,087) 33.33%NET INCOME (LOSS)3,098,691 272,883 2,825,808 8.81%1,488,086 (622,844) 2,110,930 -41.86% (287,630) (134,106) (153,524) 46.62% 1,455,689 393,626 1,062,063 27.04%Items reclassified to bal sht at year end: Capital Outlay(2,649,356) (122,780) (2,526,576) 4.63% (1,411,750) (116,038) (1,295,712) 8.22%- - - (3,245,049) (116,038) (3,129,011) 3.58%Revenues over/(under) expenditures449,335 150,103 299,232 76,336 (738,882) 815,218 (287,630) (134,106) (153,524) (1,789,360) 277,588 (2,066,948) *Depreciation is recorded at end of year (non-cash item).Water SewerSolid WasteStorm WaterStudy session meeting of May 26, 2020 (Item No. 5) Title: April 2020 monthly financial reportPage 3