HomeMy WebLinkAbout2020/12/21 - ADMIN - Minutes - City Council - Regular Official minutes
City council meeting
St. Louis Park, Minnesota
Dec. 21, 2020
1. Call to order
Mayor Spano called the meeting to order at 6:30 p.m.
1a. Pledge of allegiance
1b. Roll call
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), City Attorney (Mr. Mattick), Deputy City
Manager/Human Resources Director (Ms. Deno), CFO (Ms. Schmitt), Director of Community
Development (Ms. Barton), Assistant Zoning Administrator (Mr. Morrison), Police Chief Harcey,
Lieutenant Jon Parker, City Assessor (Mr. Bultema), Senior Management Analyst (Ms. Solano),
and Recording Secretary (Ms. Pappas)
Guests: Liz Diaz, Ehlers
2. Presentations
2a. Retirement recognition for Police Lieutenant Jon Parker
Police Chief Harcey recognized Lt. Jon Parker for over 29 years of service to the
community.
Mr. Harmening stated Lt. Parker will sorely missed in the city and thanked him for his
years of service.
Mayor Spano also thanked Lt. Parker for his many years of service, adding he is well
respected in the community and will be missed .
Councilmembers Rog and Kraft also thanked Lt. Parker for his service.
Lt. Parker reflected on his years of service stating he feels extremely fortunate to have
worked in such a well-run city. He added he is incredibly proud of serving in the
community with such a wonderful police force and people. He wished the best to city
and staff as they navigate the challenges of future.
2b. Recognition of donations
Mayor Spano thanked the following on behalf of the city council for their donations:
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$2,200 donation from Max and Lillian Fallek for purchase of a memorial bench at
Westwood Hills Nature Center honoring Max and Lillian Fallek and family
$2,200 donation from Jeffrey Raison and Marilyn Reiter for the purchase of a
memorial bench at Westwood Hills Nature Center honoring nature
$2,200 donation from Sheri Salloway Yarosh for the purchase of a memorial bench in
Wolfe Park honoring Polly and Louis Salloway and Adam Hauf
$100 donation from Leslie Marcus,
$20 donation from Karen Campbell and a $20 donation from Adrienne Berman for
park enhancements or program needs at Westwood Hills Nature Center
3. Approval of minutes - none
4. Approval of agenda and items on consent calendar
4a. Adopt Resolution No. 20-182 to recognize Jon Parker for his 29 years of service.
4b. Authorize the Solar Sundown pilot cost sharing program for 2021.
4c. Adopt Resolution No. 20-183 accepting work and authorizing final payment in
amount of $11,036.67 for street maintenance project (Area 4) with GMH Asphalt
Corporation – city contract No. 51-20.
4d. Adopt Resolution No. 20-184 approving acceptance of a $2,200 donation from
Max and Lillian Fallek for the purchase of a memorial bench at Westwood Hills
Nature Center honoring Max and Lillian Fallek and family, a $2,200 donation from
Jeffrey Raison and Marilyn Reiter for the purchase of a memorial bench at
Westwood Hills Nature Center honoring nature, a $2,200 donation from Sheri
Salloway Yarosh for the purchase of a memorial bench in Wolfe Park hono ring
Polly and Louis Salloway and Adam Hauf, and a $100 donation from Leslie
Marcus, a $20 donation from Karen Campbell and a $20 donation from Adrienne
Berman for park enhancements or program needs at Westwood Hills Nature
Center.
4e. Adopt Resolution No. 20-185 authorizing the special assessment for the repair of
the sewer service line at 1815 Melrose Avenue South, St. Louis Park, MN. P.I.D.
01-117-22-44-0039
4f. Appoint Council Member Lynette Dumalag as representative, and Council
Member Margaret Rog as alternate to the SWLRT Community Works Steering
Committee.
4g. Adopt Resolution providing preliminary approval for the issuance of multifamily
housing revenue bonds to finance the CB SLP Housing (CommonBond) project.
(This item was removed from the consent calendar and considered as regular
agenda as item 8d.)
4h. Adopt Resolution No. 20-186 designating polling places for the 2021 election
cycle.
4i. Approve for filing planning commission minutes of Nov. 18, 2020.
4j. Nov. 2020 monthly financial report - no action required at this time.
Mayor Spano requested that consent calendar item 4g be removed and placed on the
regular agenda as item 8d.
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It was moved by Councilmember Brausen, seconded by Councilmember Rog, to approve
the agenda and items listed on the consent calendar as amended to move consent
calendar item 4g 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. Reappointment of representative to Fire Civil Service Commission
It was moved by Councilmember Dumalag, seconded by Councilmember Harris, to
approve reappointment of William MacMillan to the Fire Civil Service Commission with a
term to expire Dec. 31, 2023.
The motion passed 7-0.
6. Public hearings - none
7. Requests, petitions, and communications from the public – none
8. Resolutions, ordinances, motions, and discussion items
8a. 2021 budget, final city and HRA property tax levies, and 2021-2030 capital
improvement plan (CIP). Resolution No. 20-187, Resolution No. 20-188,
Resolution No. 20-189
Ms. Schmitt presented the staff report. She noted the tax levy proposed increase for
2021 is 4.5%. She stated residents may contact herself, Mr. Harmening, or Mr. Bultema
for additional information about the 2021 budget, city and HRA property tax levies and
the capital improvement plan.
Councilmember Harris stated the council has discussed the levy since May 2020 adding
several folks have reached out during these difficult times. She stated the levy moving
down to 4.5% is a benefit to the community and she acknowledged staff’s efforts
working through the process and reimagining the community’s needs. She stated the
city will still reinvest in infrastructure, but at a more modest level.
Councilmember Brausen stated the budget is the most important endeavor taken up by
the city and council each year, and the amount of time staff spends on it is tremendous.
He noted while the council starts the process in May, staff begins in March, adding this
is a responsible and fair budget which meets the immediate needs of the city and
infrastructure and starts to address climate action goals for the city as well . He stated
more of a burden will fall on apartment buildings versus homes. He stated he preferred
a higher rate of increase on the levy to get ahead of costs in the upcoming cycle and
assist bigger demands to help the city’s social safety net . He added in this economy
some are doing fine, and others are struggling during the pandemic. He noted next year
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single-family homeowners will have a significant increase as property values are driven
up by the free market and houses continue to sell for high prices. However, he stated,
this budget for 2021 was well-thought out and he will support it.
Councilmember Rog stated over her 3 years on the council she has learned that many in
the community are unconcerned with property tax increases, some connect the value
they receive to the taxes they pay, and many values include responsive and professional
staff. She stated along with great parks and other city facilities, a wide range of
programming for residents and commitment to climate action and racial equity,
Connect the Park, and more, these residents whose income increases annually along
with their taxes; anticipate annual increases and support all city expenditures. She
stated as an elected official, she speaks for them.
Councilmember Rog added there are also those who are burdened by property taxes
especially seniors and others on fixed incomes, low-income renters, and homeowners
with lower priced homes including condos and townhomes. She stated as an elected
official, she speaks for them also.
Councilmember Rog explained since 2017, according to staff, the owner of a median
value townhome in St. Louis Park has seen an increase of $230 in the city portion of
their property taxes, or 35%, from $660 to $890; since 2017 the owner of a median
value condo has seen an increase of $187 or 41%, from $461 to $648 in the city portion
of their taxes. She added over the same time period, the owner of a single-family home,
median value, has seen about a $250 increase, from $1 ,037 to $1,284 in the city portion
of their taxes, or 24% – keep in mind this is about one-third of a household’s total
property tax bill, which also includes county and school district levy. She added Class C
apartments, which are the most affordable rental property in the city are her biggest
concern because their assessed value is increasing rapidly. Levies will increase also
between 2020 and 2021, and residents of median value Class C apartment unit in the
city will see a $113 increase in the city portion of their property taxes, from $477 to
$590.
Councilmember Rog added that utility and franchise fees are a factor too, with hidden
tax increases, and she would like to continue to watch this in the future, and change
fees so they are tiered to better reflect use and ability to pay.
Councilmember Rog stated affordable housing incentive programs help and the city will
need to improve these programs and increase participation. She stated she concurs with
her colleagues and others who point out that levy increases that disproportionately
impact low-income residents are in conflict with the city’s strategic goals to keep
housing affordable and support people on fixed incomes who want to stay in their
homes. She stated she will continue to scrutinize budgets, try to get an ever-better grip
on ROI, and as she has in the past, continue to vote against a levy increase that is not in
the best interests of residents.
Councilmember Rog continued that in 2021 she will support a 4.5% levy increase due to
contextual issues, a major one being Hennepin County is not increasing their levy at all,
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and a 0% increase means cuts in expenditures and likely some programs. She added the
property tax bill that people see is roughly one-third city/county/school district and the
county tax at 0% mitigates the impact of the city at 4.5%.
Councilmember Rog stated many St. Louis Park residents will see a decrease this year in
their total tax bill, or a smaller increase than they would if the county were also
increasing, making a 4.5% increase in the city portion more palatable overall as the city
prepares for another rocky year ahead. She stated the city may also be called on to fill
gaps where the county is unable, and she wants the city to be able to do this.
Councilmember Rog stated with these important caveats, she will support the tax levy
increase of 4.5% for 2021.
Councilmember Kraft agreed with Councilmember Rog and appreciated the work of
staff to get the final proposed levy down from 6.11% to 4.5%. He stated given the COVID
recession, he started the process at a 0-3% increase and that is still where he is, adding
he does object to the guidance council gave to staff that resulted in us being outside
that range. He stated even with small tax increases each year, they still compound over
time and over 10 years, the difference between 3% and 4.5% is about $300 on an
average value home, which is significant. He added that even while most homeowners
will see a decrease this year in taxes due to market value, while apartments will see the
largest increases and fastest in Class C buildings. He continued the biggest increases will
be on those less able to afford it, and he does encourage renters and landlords to look
into the 4d affordable housing incentive program. He stated to be clear, he will ask for
tax increases when they are needed; however, he will vote against this tax increase.
Councilmember Dumalag stated she has heard many comments from residents that
they are very happy to pay for services they expect from the city. She acknowledged this
year property taxes are a difficult issue and the decisions made today are also being
made for 2022 and 2023. She noted property taxes are cyclical, but this is how the city is
funded. She stated she is comfortable with the 4.5% increase and will support it.
Councilmember Mohamed stated she generally supports the tax levy and thanked staff
for the data they presented and explaining the process. She agreed there is a sense in
St. Louis Park that residents are happy with services provided by the city; however, she
pointed out we are working to be an inclusive community and just because some can
afford to live here, others have a harder time. She challenged the council to think about
everyone from homeowners to renters, adding she is proud the council does this.
Mayor Spano thanked staff for working to stay on budget and explain to council how the
tax will be able to support the budget. He acknowledged there are issues around Class C
buildings, and he agreed with Councilmember Dumalag that taxes are cyclical. He stated
the challenge is that St. Louis Park is a very desirable destination to live in with vibrant
neighborhoods and good schools. He added the downside is many are willing to pay
more for services and the city must maintain the growth of the community . Mayor
Spano noted this is a responsible budget, adding it seems wise and is only a modest
increase, which will help continue investment and growth in the city.
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It was moved by Councilmember Harris, seconded by Councilmember Dumalag, to adopt
Resolution No. 20-187 to approve the 2021 budgets and authorizing the 2021 final
property tax levy of 4.5%.
The motion passed 6-1 (Councilmember Kraft opposed).
It was moved by Councilmember Rog, seconded by Councilmember Brausen, to adopt
Resolution No. 20- 188 to authorize the 2021 final HRA levy.
The motion passed 7-0.
It was moved by Councilmember Brausen, seconded by Councilmember Kraft, to adopt
Resolution No. 20-189 to approve the 2021-2030 capital improvement plan.
The motion passed 7-0.
8b. First reading of ordinance pertaining to miscellaneous zoning code
amendments
Mr. Morrison presented the staff report. He noted amendments to this ordinance will:
Make changes to be consistent with current policy
Correct errors
Clarify intent and language
Mr. Morrison stated the planning commission recommended approval.
Councilmember Rog asked that the city make the code more accessible on the city
website with interactive links.
Councilmember Brausen pointed out the marijuana dispensaries are only preliminary at
this point and indicated he will support the amendments.
It was moved by Councilmember Brausen, seconded by Councilmember Mohamed, to
approve the first reading of ordinance amending Chapter 36 pertaining to zoning and set
second reading for January 4, 2021.
The motion passed 7-0.
8c. 2021 non-union employee compensation. Resolution No. 20-190
Ms. Deno presented the staff report. She noted the recommendation is to approve
general adjustment of 2% in accordance with the discussions with council on budget and
with the compensation plan. This also includes city manager salary. Compensation is
reviewed by a consultant, looking at the public sector market in the plan and also the
Midwest market for city manager as Minnesota is subject to salary cap.
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Councilmember Dumalag asked what other areas of the country are considered peers to
St. Louis Park, with comparables. Ms. Deno stated there is a list of cities used by the
consultant in the Midwest with similar populations and area as St. Louis Park.
Councilmember Kraft supported the compensation increase, stating the city provides
many services in St. Louis Park, staff works hard, and this is appropriate compensation.
Mayor Spano stated the value of the city manager is significant adding the city and
council all rely on him to hire the right people and make sure the council understands
the implications of their decisions. He added Mr. Harmening is exceptionally good at his
position and the compensation is warranted.
It was moved by Councilmember Brausen, seconded by Councilmember Kraft, to adopt
Resolution No. 20-190 confirming a 2% general increase for non-union employees
effective Jan. 1, 2021 and approving the city manager’s salary for 2021.
The motion passed 7-0
8d. Preliminary approval for issuance of multifamily housing revenue bonds to
finance the CB SLP Housing (CommonBond) Project. Resolution No. 20-191
Mayor Spano pointed out the 2021 budget was just passed, and this item relates to the
issuance of $21 million in bonds. He asked staff to explain. Ms. Barton noted this item
shows the bonds are conduit bonds. She explained the developer proposes to build an
all-affordable apartment building and issue bonds through the state, which must go
through the city; however, the city is not liable for these bonds.
Mayor Spano pointed out the city charges a percentage for allowing this, and that is a
bit of revenue generated for the city, approximately $20,000.
Councilmember Dumalag asked what the total cost is of the project. Ms. Barton stated
at this point the total is not worked out as the developer is still figur ing out their
financing.
It was moved by Councilmember Brausen, seconded by Councilmember Rog, to adopt
Resolution No. 20-191 providing preliminary approval for the issuance of multifamily
housing revenue bonds to finance the CB SLP Housing (CommonBond) project.
The motion passed 7-0.
9. Communications
Councilmember Brausen thanked staff for their incredible work this year, especially with
the unprecedented challenges for our community including the pandemic and racial
unrest. He stated staff has performed admirably and well during these challenging
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circumstances, and it made a challenging 2020 bearable, as well as making it easy for
the council to do their jobs.
Councilmember Mohamed shared an incident that occurred at her apartment complex
related to face masks. She wanted to take this opportunity to ask everyone to please
mask up and remind folks to mind their own business as well, as we do not know others’
situations.
Mayor Spano thanked Councilmember Mohamed for sharing the incident. He reflected
on 2020 and its challenges. He thanked those in the community who are front line
workers, and the many residents who work in healthcare within St. Louis Park. He also
commented on the murder of George Floyd, a St. Louis Park resident of Ward 2, stating
it seems there is more interest, awareness, and action around race in the last 6 months .
He thanked residents, neighbors, and businesses who have taken this seriously in
dealing with race and race equity, adding that St. Louis Park is a resilient t own. He
added he appreciates all this council has done as well as past councils and hopes 2021 is
a more peaceful and comfortable year for all.
10. Adjournment
The meeting adjourned at 8:00 p.m.
______________________________________ ______________________________________
Melissa Kennedy, city clerk Jake Spano, mayor
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