HomeMy WebLinkAbout2020/09/21 - ADMIN - Minutes - City Council - Regular Official minutes
City council meeting
St. Louis Park, Minnesota
Sept. 21, 2020
1. Call to order
Mayor Spano called the meeting to order at 6:39 p.m.
1a. Pledge of allegiance
1b. Roll call
Councilmembers present: Mayor Jake Spano, Tim Brausen, Rachel Harris, Larry Kraft, Anne
Mavity, Nadia Mohamed, and Margaret Rog
Councilmembers absent: None
Staff present: City Manager (Mr. Harmening), City Attorney (Mr. Mattick), Deputy City
Manager/Human Resources Director (Ms. Deno), CFO (Ms. Lammers), City Assessor (Mr.
Bultema), Finance Managers (Ms. Sledge), HR Manager (Ms. Timpone), Senior Management
Analyst (Ms. Solano), and Recording Secretary (Ms. Pappas)
Guests: None
2. Presentations
2a. Retirement recognition for Police Officer Todd Hinz
Mayor Spano read a resolution honoring Officer Hinz for his 30 years of service to the
City of St. Louis Park. Mayor Spano thanked Officer Hinz on behalf of the council .
Mr. Harmening stated he is happy for Officer Hinz, noting he has been a department
mainstay and it will be a great loss to the city and the department.
2b. Climate change in response to COVID-19: energy efficiency day/home energy
squad challenge proclamation
Mayor Spano read the proclamation relating to energy efficiency day and the home
energy squad challenge.
Councilmember Brausen stated there are 17,000 residents in St. Louis Park that can
participate in the program, adding he hopes the city gets 10% or more to participate.
He encouraged all to participate and noted costs should not be a deterrent. He
encouraged folks to challenge their neighbors to do the home energy analysis, and also
challenged Edina and Golden Valley to participate in the challenge as well.
Councilmember Kraft added if it weren’t for COVID, he would be knocking on doors for
this program, and thanked Councilmember Brausen for bringing up this idea. He stated
the energy visit starts with a virtual free visit, and then a home visit follows. He
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encouraged all to go to the St. Louis Park city website, and search home energy squad,
which provides a link.
Councilmember Rog asked staff to clarify when the 50% match fro m the city ends or if it
has ended already. Mr. Harmening stated he will find out and let her know.
Councilmember Rog stated on social media it says the program has ended. She added
the program is great and she had it done at her home and also encouraged 2 of her
neighbors to sign up, so she hopes the match is still available, adding there does need to
be clarification around this.
Councilmember Harris stated she would like the match to go through Oct. 7, 2020 to
coincide with the proclamation. She asked what assistance the city provides to citizens
related to energy. Mr. Harmening stated there is nothing from a program perspective
the city does, however, have the city does offer emergency assistance programs through
community development block grant funds and residents need to qualify for that.
Councilmember Harris asked staff to ensure information on energy is easy to find on the
city website and can be linked near the proclamation as well . Mr. Harmening stated
staff will make sure folks will be able to connect to the information.
Mayor Spano stated STEP also has energy resource information on their website.
Councilmember Brausen added the city website has links to all resources, including non-
profits, for residents.
2c. Recognition of donations
Mayor Spano noted a $310,000 donation from Maurice Hobbs to construct an outdoor
open-air shelter for youth programming at Westwood Hills Nature Center in memory of
his wife Barbara Hobbs.
Mayor Spano thanked Mr. Hobbs on behalf of the council and the citizens of St. Louis
Park.
Councilmember Brausen added this donation speaks to the generosity of St. Louis Park
residents. He noted an initial $200,000 donation that funded the Nature Center
feasibility study, as well as other gifts along way, adding it is heartwarming to see this
generosity, along with taxpayer support.
3. Approval of minutes
3a. City council meeting minutes of Aug. 17, 2020
Councilmember Rog stated on page 7 in the last paragraph it should read “…if federal
funding is guaranteed or possibly in jeopardy.”
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Councilmember Rog stated on page 8, at the top, if should read “Councilmember Rog
added if there is a change in leadership our limited resources may need to be in other
things.”
It was moved by Councilmember Rog, seconded by Councilmember Kraft, to approve the
Aug. 17, 2020 city council meeting minutes as amended.
The motion passed 7-0.
3b. Study session minutes of Aug. 24, 2020
Councilmember Kraft noted on page 7, paragraph 3 from bottom, it should read, “…with
the full-time model because they were focusing on the part-time effort.”
It was moved by Councilmember Rog, seconded by Councilmember Brausen, to approve
the Aug. 24, 2020 study session meeting minutes as amended.
The motion passed 7-0.
4. Approval of agenda and items on consent calendar
4a. Approve second reading and adopt Ordinance No. 2593-20 vacating portions of
utility easements at 8200 Minnetonka Boulevard and approve the Summary
Ordinance for publication.
4b. Authorize a comment letter to be submitted to the Public Utilities Commission
regarding Xcel Energy’s 2020-2034 Upper Midwest Integrated Resource Plan.
4c. Adopt Resolution No. 20-126 electing to participate in the Local Housing
Incentives Account program and adopting the housing goals for 2021-2030. (This
item was removed from the consent calendar and considered as regular agenda
as item 8d.)
4d. Adopt Resolution No. 20-127 accepting work and authorizing final payment in
the amount of $9,216.20 for project no. 4019-9007 modifications to the
Wooddale Bridge at Highway 7, Contract No. 86-18.
4e. Adopt Resolution No. 20-128 to execute memo of understanding between the
Hopkins Chemical Assessment Team and the City of St. Louis Park.
4f. Adopt Resolution No. 20-129 approving acceptance of $310,000 from Maurice
Hobbs to construct an outdoor open-air shelter for youth programming at
Westwood Hills Nature Center in memory of his wife, Barbara Hobbs.
4g. Adopt Resolution No. 20-130 to recognize Police Officer Todd Hinz for his 30
years of service.
4h. Adopt Resolution No. 20-131 approving labor agreement between the city and
the police officer’s employee bargaining group, establishing terms and conditions
of employment for one year, from 1/1/2020 – 12/31/2020.
4i. Adopt Resolution No. 20-132 approving deferral of special assessment – 4405
Cedar Lake Rd, St. Louis Park, MN.
4j. Adopt Resolution No. 20-133 approving deferral of special assessment – 2150
Ridge Dr. # 28, St. Louis Park, MN.
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4k. Adopt Resolution No. 20-134 establishing the 2020 Interim Childcare/ Tutoring
Reimbursement Policy.
4l. Approve for filing planning commission meeting minutes of June 3, 2020.
Councilmember Brausen requested that consent calendar item 4c be removed and
placed on the regular agenda to 8d.
It was moved by Councilmember Brausen, seconded by Councilmember Harris, to
approve the agenda and items listed on the consent calendar as amended to move
consent calendar item 4c to the regular agenda as item 8d; and to waive reading of all
resolutions and ordinances.
The motion passed 7-0.
5. Boards and commissions
5a. Appointment of representative to boards and commissions
Councilmember Brausen stated Mr. Willette was a very strong candidate, who was not
selected initially, but was now selected due to a vacancy on the environment and
sustainability commission.
It was moved by Councilmember Brausen, seconded by Councilmember Kraft, to appoint
Andrew Willette to the environment and sustainability commission for the term ending
on May 31, 2021.
The motion passed 7-0.
Mayor Spano thanked Mr. Willette for being willing to serve the in this capacity.
6. Public hearings
6a. Savans Inc., dba Texas Tonka Liquor off-sale intoxicating liquor license
Ms. Solano presented the staff report. She noted the police completed the background
checks and there were no issues, adding this is just an ownership change.
Mayor Spano opened the public hearing. No speakers were present. Mayor Spano
closed the public hearing.
Councilmember Harris asked about window coverage and to make sure this complies
with the city’s ordinance. Mr. Harmening stated staff will look into this.
It was moved by Councilmember Harris, seconded by Councilmember Rog, to approve
application from Savans Inc dba Texas Tonka Liquor for an off-sale intoxicating liquor
license located at 8242 Minnetonka Blvd.
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The motion passed 7-0.
7. Requests, petitions, and communications from the public – none
8. Resolutions, ordinances, motions and discussion items
8a. Series 2020A General obligation bonds Resolution No. 20-135
Ms. Lammers presented the staff report. Ms. Lammers stated the city will levy tax
dollars to pay the bonds and the city has a AAA rating with Standard and Poor’s, so great
interest rates will be available because of this.
Ms. Lammers stated the market is excellent right now with low interest rates at 1.2-
1.9% for the issuance. She noted the projects included are the Dakota Bridge, bike trails,
pavement management, SWLRT, and utilities including the water fund for a total
issuance of $15,540,000. The sale of the bonds will be completed on Oct. 26, 2020.
Councilmember Brausen confirmed the bond sales are being made for funding already
approved. Ms. Lammers stated yes, with the exception of $3 million in utility funds .
Councilmember Brausen confirmed this will be going into the capital plan improvement
and utility funds. Ms. Lammer stated yes.
Councilmember Brausen stated the city is authorized to borrow up to $233,000,000
based upon established market value of the city at $8 billion. He continued the city will
have only $42 million in debt with the proposed borrowing of the bonds. This will
include projects like The ROC, Nature Center, fire stations, city hall improvement, work
on roadways, new bridges, sidewalk, and bikeway. He also noted the city is using less
than 20% of its borrowing capacity and will spread this out over time to impact tax
payers for future years. Councilmember Brausen added the city is funding buildings and
the transportation system through bonds, while keeping our debt to under 20% of
bonding capacity, which is a testament to good city finances.
Mayor Spano stated the city’s $2 million contribution for SWLRT was in exchange for
grade separations at Beltline and Wooddale. He added these funds were combined
match of another $2 million to become $4 million. He stated this total cost is a small
fraction of what the full project might have cost otherwise at $15-20 million and noted
the $575,000 in the report is part of this $2 million.
Councilmember Rog stated she does not recall the last time the city bonded and what
the amount was, but this seems like a lot. She noted $3 million will go for future projects
around utilities and asked what a typical approach is to issue bonds . Mr. Harmening
stated it can go both ways, adding spenddown requirements need to be met first, but
sometimes debt is issued when projects start and also in advance of a project, and this is
a cost to issuing debt, so the attempt is to try to combine projects. He added bond
issuance also relates to where the bond market is at during a particular time. He noted
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the city was planning on issuing debt, but when Covid hit, we decided to hold off until
now.
Councilmember Rog asked if the city is being pre-emptive with this amount and if this
will potentially reduce the debt issued next time around. Mr. Harmening answered this
is possible, and the council will need to look at the capital plan to decide if there are
projects they want to hold off on and/or not do in the future.
Councilmember Rog asked if franchise fees can be considered as a way to pay down
debt going forward. Mr. Harmening stated debt service for this bond issue starts in
2022, and the council will need to adopt a preliminary tax levy for 2022. He continued if
council looks at franchise fees as way to pay debt, there will be time to do that and it is
permissible.
It was moved by Councilmember Brausen, seconded by Councilmember Harris, to adopt
Resolution No. 20-135, providing for the sale of general obligation bonds in the amount
of approximately $15,540,000, and set Oct. 26, 2020 to review bids and awards bond
sales.
The motion passed 7-0.
8b. 2021 preliminary property tax levy certification Resolution 20 -136
Ms. Lammers presented the staff report. She explained the property tax levy can be set
now, and can then be moved down by council, but cannot go up.
Councilmember Harris asked if the impact on the average home value of $287,000 is
$37 per year or $3 per month. Ms. Lammers confirmed this is correct.
Councilmember Harris asked about the fund balance related to infrastructure and for
more details on that. Ms. Lammers noted the park fund, capital replacement fund,
sidewalks and trails have cash deficits within those funds. Staff will be looking to council
to correct those and put a plan in place to give council options on where to go with that.
Councilmember Harris asked what the consequence are if the city does not build up
fund balances. Ms. Lammers stated items would need to be cut back on and plan would
need to be put into place to avoid negative deficits year after year.
Councilmember Harris stated the 6.11% tax levy increase seems prudent in keeping fund
balances positive. Ms. Lammers stated this is correct but can be discussed further.
Councilmember Harris stated the staff cost of living increases would be 1% if there is a
4.5% levy and 2% if there is a 6.11% levy. She stated she appreciates staff, but noted she
would agree with a 1% increase given the financial situation currently.
Councilmember Kraft asked what last year’s levy increase was. Ms. Lammers stated it
was at 5% and went down to 4.9%.
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Councilmember Kraft stated when this discussion began, council was at the 0-3% range,
and now we are at 6.11%. He stated he understands the flexibility argument and that
this level can only go down, but added messaging matters. He noted city residents will
have this amount mailed to them and will interpret that in a recession it is ok to raise
taxes more than in normal economic times. He stated he does not agree with this
messaging unless there are good reasons, which he has not seen yet. He stated there
are multiple crises right now including COVID, climate change, racial justice, and
economic issues resulting from COVID. He stated the 6.11% does not consider the
economic crisis people are facing. He added there is good work being done regarding
the climate plan, but he has not seen the full plan yet. He noted he is fine asking citizens
and businesses to pay more for the right reasons. He said he was willing to go to 4.5%,
especially with the climate crisis investments, which would lower energy costs over
time. He stated the 6.11% does not meet the bar for him.
Councilmember Kraft stated he appreciates staff, but noted it would be reasonable and
logical to ask staff to sacrifice a pay increase this year given the economic crisis we are
in. He noted adding a fourth fire fighter was part of moving to 6.11% and while he
appreciates the fund balances, comments so far have been vague. He stated he knows
this is the first step in the process, but added it sends the wrong message and he is
against the 6.11% increase and would be comfortable at 4.5%, especially knowing the
investments in the climate plan would help reduce expenses.
Councilmember Rog stated she feels similar to Councilmember Kraft and noted this is
not the year to send out preliminary notices to residents that say local taxes may
increase by 6.11%. She stated this is tone deaf, will alarm folks, and anger folks. She
noted unemployment is at an all-time high, including in St. Louis Park, at least 30% are
cost burdened by their housing, and 1 in 5 are seniors who are cost burdened due to
property taxes and housing costs. She stated commercial property increases will be
passed on to tenants, and the greatest impacts will be on lower va lue homes and will
impact those with the lowest resources. This impact on a $240,000 home will be nearly
$60 per year vs. the $37 per year we keep talking about for median home value, which
impacts the least resourced persons we are trying to protect. She read two of the emails
she received on this topic to the council. One asked for a year off on paying property
taxes during this crisis year. Another stated they are a senior watching their expenses go
up every year, and every percentage increase is against the year before. She stated trust
takes a long time to build, but a short time to lose and she urged the council to adopt a
4.5% preliminary levy to show sensitivity to folks, and that the council can be trusted.
She stated it is critical to be in partnership with those the council represents, and she
will vote against the 6.11% preliminary levy increase.
Councilmember Mohamed agreed with points made by Councilmembers Rog and Kraft
and stated even during a normal year, this would still be something she would push on
but even more so this year. She stated she feels it is very insensitive to send this letter
now, adding she does not know a single person outside this group that has not had an
economic decline this year. She added she cannot pick what needs to be cut, but she
does see the need for the city to tighten its belt this year. She stated she understands
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the number can go down from here, but she will not agree with the 6.11% increase, and
noted 4.5% is not as problematic, but she asked the council to show sensitivity at this
time. She agreed many have said the city services are good in St. Louis Park, and folks
will pay for them, but pointed out these folks are not the only ones living in the city, and
some may get taxed out of the city. She stated she is totally against the 6.11% levy
increase.
Councilmember Brausen stated he will support the 6.11% preliminary levy increase
because he believes in impacts more than imagery. He stated when looking at the
percentage, it is a big jump from 4.5% but it is only $400,000-500,000 in tax revenue to
be spread out over one year over an $8.2 billion base of property.
Councilmember Brausen stated he does not want to govern from a position of fear, and
being fearful about the future, so therefore we will cut programs we believe in and are
supportive of. He added there will be demand on some emergency programs in the city
that we will want to spend money on, and many will be impacted, but added not the
vast majority who have houses, 55% of residents are home owners. He stated this will
also affect commercial and industrial owners as well, so it is not exclusively
homeowners bearing this impact. He stated staff has done well to provide this budget
plan and thanked them for the high level of services that are provided. He stated some
of the unions have already negotiated with staff a higher wage increase of 3% as well.
He added he will support setting the preliminary tax levy increase at 6.11% and
challenge staff to look for ways to save money adding, however, he does not want to
cash strap staff either.
Councilmember Mavity agreed with Councilmember Brausen adding she is hearing fear
from council about what 6.11% means. She stated the complexity of the tax levy system
shows and pointed out last year’s increase at 6% meant a $74 increase for the average
home, but this year 6% means a $23 increase for the average home based on the staff
report. She stated it is the same 6% increase each year, but a different impact. She
stated by focusing on this percentage only instead of looking at what that means for
each household, we are missing the point.
Councilmember Mavity stated folks trust the council to understand the complexities of
the tax system and to communicate to them. She stated there is a messaging challenge
to communicate what these changes mean. But she noted the range at a 6% change per
year is about $24 to $50 per year, and she does not believe this is too much to ask of
residents, because the needs are great this year and this is not the time to step back.
Councilmember Mavity continued everyone needs to work on addressing the city’s
needs and in doing so, it is more robust as to what we can achieve. Our residents expect
more and we can deliver more for them. She added there is not a single year where the
council has not landed on a lesser amount for the tax levy, but if we start at a lesser
amount, it will be more difficult to whittle it down, and staff will be constrained on what
they can offer back to council. She stated the council has a responsibility to ask our
community to come together in these times.
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Mayor Spano stated he will support the 6.11% preliminary levy, knowing council will
land at a lower percentage for a final number. He stated staff and council will need to
sharpen their pencils to get there, and some funds are in need of long-term assistance,
but added small course corrections should be done now vs. larger corrections later. He
also pointed out while the city has reserves on hand for emergencies, staff would have
to go into budget reserves to pay for items if the levy is too low.
Mayor Spano added it will take 2-3 years to get the economy and employment back, so
if the council does not make investments in the community this year, there will be lots
of catch up year after year over time. He stated this is a good place to begin and will
allow staff the flexibility to come back to council.
Councilmember Harris stated she will support the 6.11% as well and urged the council
not to focus on image but on outcomes, adding the 6.11% at maximum does change
based on the value of a resident’s property, and it is a fair and sound investment.
Councilmember Kraft asked about union wage increases noting there were negotiations
with only one union, our smallest, and asked staff if there is only one union where a
wage increase has been set this year, and if the one already approved in the consent
agenda has already occurred. Mr. Harmening stated that is correct.
Councilmember Kraft asked then if there is any pay increase overall yet for unions. Mr.
Harmening stated staff has not yet begun negotiations with bargaining units so he has
no information on that yet.
Councilmember Kraft commented on Councilmember Mavity’s statement. He stated it is
the council’s responsibility to know the details of the tax levy and agreed this is a serious
responsibility. He noted the $23 average home increase Councilmember Mavity pointed
out, but stated it is double that amount for homes on the lower range. He agreed it is
the council’s responsibility to ask the community to come together but only for a good
reason, adding it is the council’s responsibility to tighten belts.
Councilmember Kraft noted the comments about fear, adding he does not see this as
fear, but about sending the right message and being fiscally responsible. He added the
fund balance issue and the fact that there is no data on how much will be necessary is
more of a fear argument currently.
Councilmember Kraft stated the council is not done with this, and it behooves the
council to start from a lower tax increase amount to show we are willing to tighten our
belts. He added when it’s broken down to monthly and daily levels it is easy to shift to
higher amounts, but that approach over time yields significant dollars and he will not
support this, noting it is more prudent to start at 4.5%.
Councilmember Rog agreed with Councilmember Kraft adding she feels strongly about
this, is saddened by this decision, and will not support the 6.11% increase.
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Mayor Spano encouraged folks to reach out to council members with their comments
and concerns.
Councilmember Brausen asked staff for data on the impact of the tax levy on the
average apartment dweller, as well as additional data on impacts to residents and fund
balances. He added nothing prohibits council from going below 4.5% if during
discussions, councilmembers can present and convince their colleagues of items to
delete from the budget.
It was moved by Councilmember Mavity, seconded by Councilmember Brausen, to adopt
Resolution No. 20-136, approving 2021 preliminary tax levy of 6.11% and setting budget
public hearing dates as noted in the staff report for Dec. 6 and Dec. 21, 2020.
The motion passed 4-3 (Councilmembers Rog, Kraft, and Mohamed opposed).
8c. 2021 preliminary HRA levy certification Resolution No. 20-137
Ms. Lammers presented the staff report. She noted the HRA levy is set at .0185% of
market value.
Councilmember Brausen stated these funds will go toward affordable housing, and he
invited the community to tell the council what they think the fund should be spent on,
related to housing.
It was moved by Councilmember Mavity, seconded by Councilmember Brausen, to adopt
Resolution No. 20-137, authorizing the 2021 preliminary HRA levy at .0185%.
The motion passed 7-0.
8d. Electing to participate in the local housing incentives account program and
adopting the housing goals for 2021-2030 Resolution 20-126
Councilmember Brausen explained he pulled this item off the consent agenda for
discussion. He wanted to acknowledge the city has participated in this program for 20
years, noting when he came on council in 2014, meetings were conducted with
advocates and affordable housing goals were set. He added the city had a goal of 320
units of affordable housing, and with the help of Councilmember Mavity and Mayor
Spano, developers were required to meet these goals and the city was successful. He
added now there is a need at lower than 30% of median income and this is one of the
reasons we are adding funds to the HRA levy housing trust fund.
Councilmember Brausen pointed out this is no longer an affordable housing issue,
adding it’s more of an income inequality issue now, and it will need to be figured out in
the future. He challenged the council and the community to address this issue.
Councilmember Kraft asked if there is a way to track the city’s affordable housing goals
and where the city is at so far. Mr. Harmening stated Ms. Barton is working on a
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dashboard to present this information, and link a comprehensive report to it, while
making this information public and easily accessible.
Councilmember Brausen stated not all communities reach their affordable housing
goals, but St. Louis Park should be commended.
It was moved by Councilmember Brausen, seconded by Councilmember Mavity, to adopt
Resolution 20-126, electing to participate in the local housing incentives account
program and adopting the housing goals for 2021-2030.
The motion passed 7-0.
9. Communications
Mayor Spano noted there was a community conversation around race in the Sorenson
and Birchwood communities and asked how they went. He stated he applauds those
neighborhoods for using grant money to fund this.
Councilmember Rog stated that while she did not attend, she urged other
neighborhoods to start thinking in those ways. She added Birchwood was not included
in the conversation.
Councilmember Harris stated the Minnehaha neighborhood was involved.
Councilmember Harris stated on Oct. 6, 2020 the city is hosting a WebEx on Walker Lake
zoning, led by staff planner Jennifer Monson. She stated there is more information on
the city website.
Councilmember Rog stated on Wed. at 6:30 p.m., there is a WebEx on the Beltline Blvd.
bike and pedestrian trails and significant changes to support safer access to the Beltline
station. She added there is more information on the city website also.
Mr. Harmening stated next week’s council meeting will be moved to Tues ., Sept. 29,
2020 as Mon. is Yom Kipper.
10. Adjournment
The meeting adjourned at 8:25 p.m.
______________________________________ ______________________________________
Melissa Kennedy, city clerk Jake Spano, mayor
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