HomeMy WebLinkAbout2020/11/23 - ADMIN - Minutes - City Council - Study Session Official minutes
City council study session
St. Louis Park, Minnesota
Nov. 23, 2020
The meeting convened at 7:50 p.m.
Councilmembers present: Mayor Jake Spano, Tim Brausen, Lynette Dumalag, Rachel Harris,
Larry Kraft, Nadia Mohamed, and Margaret Rog
Councilmembers absent: none
Staff present: City Manager (Mr. Harmening), Director of Operations and Recreation (Ms.
Walsh), Engineering Director (Ms. Heiser), Deputy City Manager/Human Resources Director
(Ms. Deno), Director of Community Development (Ms. Barton), Finance Manager (Ms. Sledge),
CFO (Ms. Schmitt), Communications Manager (Ms. Smith), Police Chief Harcey, Fire Chief
Koering, City Assessor (Mr. Bultema), Senior Management Analyst (Ms. Solano), and Recording
Secretary (Ms. Pappas)
Guests: Stacy Kvilvang, Liz Diaz; Ehlers
1. 2021 budget and capital improvement plan update
Ms. Kvilvang presented the report. She gave the background information related to the tax levy
for 2021 and explained the council will determine if the tax will be at 4.5% or 4.95%. Ms.
Kvilvang noted the council can reduce the levy from 6.11% to 4.5% or 4.96% and still meet the
needs of the city. She added all existing assets will be maintained and equipment replaced as
needed, while planned projects will not be eliminated. Ms. Kvilvang noted the Connect the Park
projects will be extended to 2037, while pavement condition will be maintained, and mill and
overlay will be conducted vs. reconstruction.
Mayor Spano asked that Mr. Harmening’s email to council, that is referred to in the report, be
added to the minutes as an exhibit for the public to view.
- Email added as Exhibit A at the end of the minutes.
Councilmember Kraft thanked staff for their work, and asked with spreading out Connect the
Park, what are the assumptions going forward with the project. Ms. Heiser stated everything
currently shown on the map is what has been approved by council for 2021, including trails and
sidewalks. She added there are no new projects currently, and any standalone projects for
Connect the Park were pushed out to later.
Councilmember Kraft asked regarding the capital improvement plan changes presented if all of
them would impact 2022 and beyond and would not impact the 2021 levy. Ms. Kvilvang stated
yes.
Councilmember Kraft asked about the general fund, and where the city is forecast to be and
what property assumptions are forecasted. Ms. Diaz stated the second half of property taxes
should come in adding that 98% should be collected and the projected balance v ersus last year
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is that it may go up a bit. She added the general fund is on track and staff will be doing some
additional analysis.
Councilmember Kraft asked based on the current budget, what are next year’s expenditures in
the current budget. Ms. Diaz stated for 2021 it is $42.1 million approximately.
Councilmember Kraft stated given the recession and that fact that there will be a fund balance
of approximately 50%, it seems like a 3% levy would be more in order. He pointed out reducing
the levy would still give the city a greater than 45% fund balance by his calculations.
Mr. Harmening stated at the end of each year when the city does an audit, the council can see
exactly where the general fund balance is at, adding for some time, the city has always been
over 48%. He explained the practice has been then to take those dollars from the fund balance
and plug them into funds that need a cash infusion to reduce impacts on, for example,
increasing franchise fees. This cash infusion would limit an increase. He added the concern is
without a high enough fund balance, funds would need to be made up in 2022 thereby
increasing the tax levy.
Councilmember Kraft asked if the fund balance funds are earmarked for other fund s in the
budget. Mr. Harmening stated not yet as the city does not know yet where it will be needed
related to COVID. He stated his recommendation is to refrain from touching any excess fund
balance to avoid having to increase taxes later.
Mr. Harmening added the city is getting very few calls from residents concerned about their
truth in taxation. He stated he is more concerned at this point about 2022 versus pushing the
levy down this year and the more that can be done this year will help limit the amount of levy
increases for future years.
Councilmember Rog appreciated staff’s efforts and the reductions noted, adding these all look
like good, smart changes. She added she has not had any calls related to the levy this year
either and typically would have received calls at this point. She attributed this to the fact
Hennepin County has a 0% levy increase; however, she has concerns about cuts the county
might make and impacts on the city in terms of services people rely on. She stated she is in
support of the 4.5% levy increase at this time.
Councilmember Rog asked about the Fern Hill West pavement project in Connect the Park and
public input. Ms. Heiser stated the pavement management projects for 2022 have living streets
elements in them and the council had directed staff to not discuss or promote this until policy
discussions are completed.
Councilmember Rog stated she has concerns in Fern Hill because neighbors have asked for
improvements and she thinks this will catch folks by surprise since the east side was completed
already. She asked if the timing can be synced better. Ms. Heiser stated staff is planning to
come back to council for more policy discussion on Connect the Park in January .
Mr. Harmening added these discussions will be in parallel to budget discussions and CIP
planning, noting there is still time to discuss this further.
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Councilmember Mohamed stated a lower levy this year means a higher levy next year . She
asked if the levy is set at 4.5% this year, will the city be in good standing for 2022 .
Mr. Harmening stated given all the changes made with CIP, the higher the levy is in 2021, there
will be lower impacts in 2022. He added there will still be challenges in 2022 given higher
valuations of single-family homes versus industrial commercial areas.
Councilmember Mohamed stated she recognizes this is a challenge and that staff has stepped
up to the plate. She stated she is more comfortable at 4.5% and staff has tightened the budget
up and this will show the council has sympathy toward the struggles of residents in 2021 and
2022. She added she really appreciates staff’s work on this.
Councilmember Brausen stated he appreciates staff’s work on all program spending, noting
that council demanded this, and staff came through. He stated he does, however, worry about
moving pavement management and trails out further, and pushing back projects like Cedar
Lake Road, which was due in 2020 and is now programmed for 2023 .
Councilmember Brausen added Louisiana Avenue north of Cedar Lake Road will now be
completed in 2023-24, and both require bike paths for safety, along with regular pavement
management and sidewalks on the east side of Louisiana Avenue. He stated residents have
asked for this work for many years, and he is worried it will keep getting pushed back too far .
He looks forward to re-engaging on Connect the Park and stated he favors the 4.96% increase.
Councilmember Brausen stated the 2022 levy increase is still projected at 5.9%, so if 2021 is at
4.5%, there will need to be a larger increase at 6.4% in 2022 when the real impacts of COVID
will be worse. He stated the city is better off doing the 4.9% now when there are strong
property tax collections. Otherwise next year, council will be trying to avoid a higher tax, which
will be difficult for the average homeowner and will have higher impacts on lower home value
owners. He added 4.96% will help the city manage the future better.
Councilmember Harris stated this is a difficult choice for council given the projections for next
year and asked if in 2022, there is also a projected 2% increase for staff. Ms. Schmitt stated yes,
adding salary contingencies are built into the long-term financial plan. Ms. Deno added in the
past 3% was the projection and this has now been lowered.
Councilmember Harris asked if staff has examined contract services, and if those were lowered,
would this help lower expenses. Ms. Deno stated in general contracted services are used in
exchange for adding additional staff. She noted there have been no major changes here
because of service demands.
Councilmember Harris stated the recession will be deeper next year versus this year for those
already impacted and when that is considered, noting that not everyone is impacted in the
same way, she is cautious about projections for 2022. She wants to see impacts of a 2%, 1% or
0% wage increase. She stated she is inclined to approve the 4.5% tax levy but wants to see the
final adjustments for 2022 first.
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Councilmember Dumalag also thanked staff for helping her to understand the budget and tax
issues and impacts on homeowners. She added property tax is an expense for renters as well
and she would like to see the impact on renters of 2-3-bedroom apartments as well. She is
worried about the pipeline and would approve 4.5% but could be convinced to go w ith 4.96%
also. She stated she would like to see a wage adjustment projection as well.
Mayor Spano agreed with Councilmember Brausen on many points; however, noted even if
projects are pushed out a few years and deferred now, that is not set in stone and those
projects can be changed by this council or future councils.
Mayor Spano stated he appreciated Councilmember Kraft’s comments about potential ways to
find savings in the budget. He still supports the 4.5% but added this will not help the city in
2022.
Councilmember Kraft stated that of the two options he prefers the 4.5% increase, adding he
will meet with staff more to understand fund balances better. He appreciates staff has
preserved $250,000 for climate work; however, this is not sufficient, and he would like to find
out what a sufficient amount is and discuss how this can be funded . He stated he believes
climate work should be funded at $1-2 million per year and he would like to talk about how to
do that.
Mayor Spano stated he appreciates Councilmember Kraft’s thinking here and the city should
treat climate work like a 10-year plan, like Connect the Park and how to get to the goal. He
stated this will be an important discussion for council.
It was the consensus of the council to support the 4.5% tax levy increase, while Councilmember
Brausen supports 4.96%.
2. Future study session agenda planning and prioritization
Councilmember Kraft stated a 60-minute discussion on the SWLRT Wooddale Station Site seems
too short. Mayor Spano agreed this is an important topic and deserves longer discussion time.
Mr. Harmening stated staff will adjust the agenda time.
Update on COVID-19
Mr. Harmening stated Covid has taken a turn for the worse and numbers are going up . He
stated the verbal report tonight will provide clarification, what the spread looks like in St. Louis
Park, and time for council to ask questions.
Fire Chief Koering stated they do not get reports on numbers for long -term care residences
versus other areas of the city. He did note, however, the fire department community health
program tracks deaths in long-term care facilities and applies that number against Hennepin
County’s numbers. He stated the rate of infections is going up, and as of today many deaths are
in the 75- to 90-year-old range.
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Mayor Spano asked about bed and ICU capacity at Methodist Hospital, and if the ice arena was
being looked at for support. Chief Koering stated Methodist is turning people over quicker to
have more beds for COVID and at this time, there are 70 people at Methodist for COVID, but
the hospital does still have capacity. He added the concern is now about having enough staff to
cover patients, and they are working on this. He stated there is no concern about the Park
Nicollet morgue at this time either.
Councilmember Harris asked about staffing levels at skilled nursing facilities in St. Louis Park.
Chief Koering stated it varies among facilities, adding the fire department has helped with
staffing solutions. He added PPE currently is fine as a lot of work was done early on, and work
with the supply chain was conducted. He stated the work group led by Hennepin County is
helping to build up PPE inventory in long-term care facilities and PPE is now being used
differently also.
Councilmember Harris asked about testing sites at Park Nicollet and availability. She added it
seems the eligibility for who can be tested has been reduced and asked where the nearest
testing locations are for those living in St. Louis Park. Chief Koering stated the MN Department
of Health website has locations listed and access to testing is wide open. He added the state did
roll back on testing a bit since they want to make sure people are not being tested for no
reason.
Councilmember Kraft asked if there are any areas of concern from the fire department. Chief
Koering stated they have had a few cases with employees required to quarantine but noted
there has been no impact on services. He added most people are catching COVID outside of the
workplace.
Councilmember Kraft asked if Chief Koering had any concerns with vaccines relative to city
work. Chief Koering stated the city has little to say about the vaccine, but as it becomes more
available and expands beyond the initial doses, we will think about how it gets deployed . He
stated there is so much unknown right now, especially with required vaccine storage and
refrigeration versus freezing. He added the city is engaged in these conversations currently.
Councilmember Rog appreciated that staff is looking ahead on vaccines and noted that
expedited mail-in tests are now available also. She added there are many still planning to get
together for Thanksgiving and asked if the city is doing anything to send an effective message
about this.
Ms. Smith stated she will work with Chief Koering about getting a message out this week to
residents and added the Mayor can do a reminder in his video message this week as well.
Mayor Spano noted the COVID Aware MN app can now be download to a smartphone, which
informs users of data about those who have tested positive in certain areas of the state .
Councilmember Kraft thanked staff for the use of force update from the police, adding he
appreciated the level of analysis included and the addition of prohibiting warrior style training .
He thanked the police force for moving that forward.
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Councilmember Brausen agreed and noted at the National League of City’s Summit , there was
mention of citizen review panels and cities looking at that. He asked if the city can pursue this.
Chief Harcey stated citizen review panels are not prohibited in Minnesota and there are civilian
review boards in Minneapolis and St. Paul, adding St. Louis Park can look into this as well.
Councilmember Rog noted the police force update and stated there is a discrepancy between
the state recommended policy and ours on use of force as it relates to choke hold and
asphyxiation. Chief Harcey stated the city’s policy is different from the state in that the city
trains on this with officers so they are cognizant of these issues . He added the city’s police force
felt this was important to include in the city’s actual use of force policy.
Councilmember Rog noted contact weapons used to control a subject, and chemical aerosols as
well. She noted the recent protests where 600 people were arrested in Minneapolis and
chemical agents were used. She asked if the city uses chemical aerosols in similar crowd control
protests.
Chief Harcey stated any use of force is directly related to the policy and the first priority is to
protect a person’s first amendment rights to free speech. He added the only time contact
weapons or chemical aerosols might be used is if there were an unlawful assembly, and a route
given for people to disperse to. He added this would be the decision of the police chief and
officers have the equipment available, if needed. He stated the only time chemical agents or
weapons are used is to protect citizens or protect pol ice from active assault and to defend
public property. He added these are used with discretion.
Councilmember Rog asked if SRO’s bring firearms into elementary schools. Chief Harcey stated
anytime an officer is in full uniform or in plain clothes official police capacity, they wear a
firearm.
Chief Harcey added the city’s police force have learned a lot this past year and some responses
have changed. He added there is constant learning going on , things evolve, and it has been
good for law enforcement to continue to learn and adapt to what is going on.
Chief Harcey added the police work group did fantastic work and put a lot of time and effort in
and he appreciated this. He stated they have helped police get to a very good place and added
after final thoughts and recommendations are submitted, the police will move forward with the
new policy.
Councilmember Kraft noted staff did a great job with the US census also.
Communications/meeting check-in (verbal) – none
The meeting adjourned at 9:44 p.m.
Written Reports provided and documented for recording purposes only:
3. Police use of force policy work group update
4. Developer recommendation for SWLRT Wooddale Ave Station site
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5. 2020 Census outreach final report
6. October 2020 monthly financial report
______________________________________ ______________________________________
Melissa Kennedy, city clerk Jake Spano, mayor
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Exhibit A
From: Tom Harmening <THARMENING@stlouispark.org>
Sent: Monday, November 23, 2020 2:46 PM
To: SLP Council Members <slpcouncil@stlouispark.org>
Cc: SLP Department Directors <slpdepthead@stlouispark.org>; Maria Solano
<msolano@stlouispark.org>; Jacque Smith <jsmith@stlouispark.org>; Stacie Kvilvang
<skvilvang@ehlers-inc.com>; Elizabeth Diaz <EDiaz@stlouispark.org>; Melanie Schmitt
<MLammers@stlouispark.org>; Darla Monson <dmonson@stlouispark.org>
Subject: Budget Questions
Mayor and Council – staff received questions from councilmembers on tonight’s budget and levy
discussion the responses of which I thought I should share with you as well……
What street and local rehab project slated for 2021 had its CTP portion modified resulting in a
decrease in project costs by 50% or $510K?
The 2021 pavement management project originally scheduled for 2021, is now scheduled for
2022. This is located in west Fern Hill. There are Connect the park sidewalks and bikeways that
were originally included in this project (see attached). The council asked staff to put a pause on
proposing new CTP segments until the CTP policy conversations are completed, right now this is
expected to be sometime in 2021, likely 3rd quarter. We will be kicking off the public process
for this project in first quarter 2021. The streets will be designed recognizing that these CTP
segments are in the plan, however, we will not be proposing them as a part of the overall
construction project.
What CTP project was reduced in cost by 300K and delayed to 2021?
The 2 block segment of bikeway on Wooddale from the Dakota/ Lake/ Wooddale intersection to
the north ramps at Highway 7. The cost was reduced due to the recommended type of
facility. The original cost estimate for this segment was as a separated bikeway. Staff reviewed
the segment and discovered that the concrete sidewalk on the west side of this street segment is
an 8 foot wide and can serve as a multi-use trail. The trail will provide a facility for those less
confident. The bikeway to the north and south of this segment is on street bike lanes. To provide
continuity for the on street bikeway users, our recommendation is to stripe this gap as an on
street bikeway, resulting in an estimated $300K cost reduction. The recommended year for
installation is 2021.
Have we decided as a council that CTP now extends through 2037?
The slowing down of the CTP CIP is a recommendation to reduce soften the annual debt service
for GO Bonds out into the future. The new completion date is a function of spreading out the
segments to logical termini, and flattening the annual bonding. More discussion on CTP will take
place with council over the coming months.
I'd like to understand better how we went from $35M to $18.5M in anticipated future bonding
needs for CTP. Can you provide more detail?
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This is the result of slowing down the CTP CIP. The decrease in anticipated bonding is the
result of the decrease in project costs in the current ten year plan. The rest of the CTP bonding is
beyond the 10 year CIP. (2031-2037)
For Parks & Rec:
What park projects were removed from the CIP, and what projects were extended into the future
to reduce park improvement capital costs?
Below are the PIF modifications that were made so we could lower our bonding amount:
40th and France potential fencing for dog park moved from 2022 to 2023 (this would be a
joint project with Edina and they have not indicated they have the money or staff time to
do this)
Dakota Park replace lights with LED bulbs from 2021 to 2026 (The bulbs are operating
fine. The return on investment isn’t there with this given how few hours they are
used. The fixtures will need to be replaced in 2026 due to age so the right time to change
them to LED is when they age out)
Carpenter Park replace lights with LED bulbs from 2023 to 2027. (same explanation as
above)
2022 Webster Park construction to 2023. (there is money in 2021 for planning if we are
able to gain access to the property from MnDot. It is likely to take time to acquire this so
construction in 2023 is more realistic)
2021 Rec Center parking lot reconstruction moved to a mill and overlay in 2022 after the
Monterey Drive project has been completed.
2021 Brick House ADA improvements have been removed. A bigger picture decision
needs to be made on what we do with that house)
2021 trail construction at Bronx and Northside have been combine. We hope to fix the
issues with cracksealing and mill and overlay rather than a reconstruct.
2021 Rec Center parking lot light pole replacement moved to 2022 to coincide with the
parking lot
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