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HomeMy WebLinkAbout2021/02/08 - ADMIN - Minutes - City Council - Study Session Official minutes City council study session St. Louis Park, Minnesota Feb. 8, 2021 The meeting convened at 6:00 p.m. Councilmembers present: Mayor Jake Spano, Tim Brausen, Lynette Dumalag, Rachel Harris, Larry Kraft, Nadia Mohamed Councilmembers absent: Margaret Rog Staff present: City Manager (Mr. Harmening) Deputy City Manager/Human Resources Director (Ms. Deno), Director of Community Development (Ms. Barton), HR Manager (Ms. Timpone), Housing Supervisor/Deputy Community Development Director (Ms. Schnitker), Assistant Housing Supervisor (Ms. Olson), Planning and Zoning Supervisor (Mr. Walther), Assistant Zoning Administrator (Mr. Morrison) Senior Management Analyst (Ms. Solano), and Recording Secretary (Ms. Pappas) Guests: none 1. City manager recruitment discussion Mayor Spano announced the upcoming departure of city manager Mr. Harmening . He thanked him for all his work over the past 25 years, stating he will be sorry to see him go. Councilmember Brausen stated this is a loss for the city but thanked Mr. Harmening for his efforts and stated the city is a better place because of his work. Councilmember Mohamed stated Mr. Harmening is the council’s compass and she cannot imagine working without him in St. Louis Park. She added the person to be hired will carry the baton and she is sad to see Mr. Harmening go. Councilmember Kraft stated both Mr. Harmening and Ms. Deno have been fantast ic with calm, wise leadership which has been invaluable. He added the strong foundation the team has built here is something that can be built on . He is saddened by their departures, but also very excited about the position the city is in to go forward, and he thanked them both. Councilmember Harris stated a few years ago Mr. Harmening won the statewide city manager award, acknowledged by his peers. She added she knows he cares deeply for the city and the staff and added his commitment and choice to depart now are both evidence of his confidence in the city at this time. She added Ms. Deno leaving shortly before is indicative of the staff’s confidence in the city. She thanked Mr. Harmening for his kind-hearted leadership and commitment to see the best in those around him. Councilmember Dumalag stated she is grateful for Mr. Harmening’s being available to her at short notice. She added as a resident she is grateful for his leadership and the confidence he has with staff leadership will help with a gentle handoff. She thanked Mr. Harmening for his leadership and looks forward to hearing about all the things he will do. DocuSign Envelope ID: FD64F8C2-1665-4BA9-8A46-E767D5E9842E Study session minutes -2- Feb. 8, 2021 Mayor Spano added he always felt Ms. Deno and Mr. Harmening were two sides of the same coin and he thanked her also for her leadership, and her work for many years on contract negotiations and having those tough conversations with professionalism. Both Mr. Harmening and Ms. Deno thanked the council for their comments. Ms. Deno stated there will be big shoes to fill with Mr. Harmening’s departure . She added that Ms. Timpone, HR Manager, will oversee the recruiting process and has experience with hiring both the police and fire chiefs of St. Louis Park. Ms. Timpone outlined the city manager recruitment process for the council. She stated a consultant will lead the process and work closely with herself and council on this process. Ms. Timpone also noted several consultants the city has worked with in the past noting that staff will approach them for proposals. Mayor Spano stated he is interested in both an internal and external search, and added he is not familiar with the consultants presented, although he is interested in hiring a consultant . He asked what the process is for hiring the consultant and the impact, adding he would like to know more about the consultants before moving forward. Ms. Deno stated the plan is that staff will reach out to the three consultants presented, adding that staff will also get proposals from other consultants. Councilmember Kraft asked about the process with hiring consultants . Ms. Deno stated an RFP will be developed and posted on the city website. Councilmember Kraft asked if all three consultants have city manager hiring experience . Ms. Deno stated they do. Councilmember Kraft asked what staff is looking for in a consultant . Ms. Timpone stated she wants someone who the council trusts, who listens to council, and has all the technology available to handle pandemic recruiting. Councilmember Kraft asked how the process will work. Ms. Timpone stated we will solicit for proposals first and then have them in for presentation if warranted. Councilmember Kraft agreed on the hiring of a consultant as this is the most important decision the council will make, and he would also prefer an external search as well as internal. Mayor Spano asked that Mr. Harmening stay until August 1 so there is overlap between him and the new city manager. Councilmember Kraft agreed and asked if an external search would be only done in Minnesota . Ms. Timpone stated it will most likely be a national search. DocuSign Envelope ID: FD64F8C2-1665-4BA9-8A46-E767D5E9842E Study session minutes -3- Feb. 8, 2021 Councilmember Harris asked about being patient on the front end . Ms. Deno stated this means the council does not need to figure this all out tonight and only needs to be able to move forward with the consultant search at this point. Councilmember Harris stated she is in favor of external and internal search, and a nationwide search could generate some innovation as well. She is open to a broader search adding the consultant can help here. Councilmember Harris asked how the priorities of the city will be rel ayed to the recruitment process. Ms. Timpone stated staff will build this into the position profile and will tell the story both to the consultants and the candidates about the city’s values. Councilmember Harris asked if there is anything in place related to a salary cap, and if it is only at the city manager level or trickles down. Ms. Timpone stated there is a waiver in place. Ms. Deno added it is exclusive to the city manager position . Councilmember Harris stated she agrees with the timeline. She asked what advice staff can give to council on this process. Ms. Deno stated there will be some homework sent to the council to work on and Ms. Timpone will assist on this with the consultant. Councilmember Harris stated she is aware of the capacity of the consultants and it is fine to reach out to those three. She would like a chance to weigh in on the consultant choice. Councilmember Mohamed asked if the council will work on the job description. Ms. Timpone stated council will work on the profile for the job, and a job description does already exist for the city manager position. Councilmember Mohamed stated she would definitely like Mr. Harmening to stay until Aug ust 1, is also interested in both an internal and external search and would like to see a diverse pool of candidates. Mayor Spano asked if the consultants can be told to bring in a certain percentage of diverse candidates. Ms. Deno stated this can be done with strategic direction but cannot be done by a quota as it may reflect reverse discrimination. Councilmember Dumalag stated she is in favor of the three or more consultant, prefers the external and internal candidates, and asked about process and open meeting laws. Ms. Timpone stated the consultant would be asked to gather feedback from leadership within the city. Councilmember Brausen stated the discernment process is crucial at the beginning and he appreciates the timeline as well. He would not want to do anything to threaten the work culture of responsibility and responsiveness to the city. He stated he is concerned with too many changes to the system at the top and does not want to jeopardize t he strong administration of the city. He stated the city has a system that works well, and he agrees with the consultants’ process, adding he would like to see an internal search first, before going DocuSign Envelope ID: FD64F8C2-1665-4BA9-8A46-E767D5E9842E Study session minutes -4- Feb. 8, 2021 external or national. He stated the worst thing would be to make a bad hire and he hopes to work with the consultant closely to make a good decision. Mayor Spano stated this will be the most important decision the council will ever make because this will determine the direction of the city as it moves forward. 2. 2021 housing program and budget summary Ms. Schnitker presented the report to the council. Mayor Spano asked what neighboring cities are doing with housing currently. Ms. Schnitker stated some cities are doing things, others are not. She noted Bloomington, Richfield, Brooklyn Park, and Minnetonka have housing programming, but St. Louis Park does much more comprehensive programming than those cities. Mayor Spano stated that is disappointing to hear especially since for many years regional affordable housing issues and policy have been discussed. He stated inclusionary affordable housing works and when he talks to colleagues, he does not hear them talking about affordability and he is proud St. Louis Park does work on this, adding there is still more to do. Mayor Spano asked if the revised 4d program is already offered to builders. Ms. Schnitker stated applications must be received by the end of February, but noted no new owner has applied, although there is still time. Mayor Spano stated he also wants to be sure staff keeps track of income guidelines for home improvements. Ms. Olson stated this can help meet the needs of a household and can be for a small addition to make a house function better. Councilmember Harris stated of the new initiatives she is pleased with the NOAH rental family trust preservation and is glad to see this is a priority in the community. She asked how the land trust is different than the 4D Tax program. Ms. Schnitker stated the 4D Tax program provides for a small financial incentive for a property and makes the property eligible to apply for the state 4d tax program for a 40% tax savings. For a land trust property, it would be similar to a land trust for a single-family home. The owner would buy the building and manage the renters, and the city would own the land. Councilmember Harris stated she is familiar with the Rondo Land Trust in St. Paul and the model does make affordable housing more accessible. She added the Minnetonka Boulevard land trust is an exciting project as well for multi-family housing. Councilmember Harris stated some programs are not overly utilized. She asked if there has been a survey of potential uses to find out what homeowners would find value in . Ms. Schnitker stated they have worked with developers but with market uncertainties it can be difficult for developers to commit. Ms. Schnitker stated staff does a yearly report that shows how much the community uses these programs. She added staff work to try to meet the community’s needs, but the programs must have a financial incentive for folks to want to participate in them. DocuSign Envelope ID: FD64F8C2-1665-4BA9-8A46-E767D5E9842E Study session minutes -5- Feb. 8, 2021 Councilmember Harris asked if there are any programs that require renters to live in a property for 6 months of the year. Ms. Schnitker stated, in general no, but the rental subsidy programs are not available to residents if they do not reside in the unit. In order to get the rental assistance, they need to reside in the unit. Councilmember Kraft stated there are a lot of programs here but is it too much or can we consider administering more programming utilizing city staff. Ms. Schnitker stated yes, but staff capacity is maximized, and we will need to consider adding more staff next year. Councilmember Kraft asked how the programs are doing. Ms. Schnitker stated they are going well, we are able to try new things; however, not all programs are utilized. She added fortunately St. Louis Park is a desirable place to live, and the city is doing extremely well in creating affordable housing. She noted the city has increased affordable rental subsidies also which is significant. Ms. Olson added each year they evaluate how the programs are working, look at performance , and then adjust and present a different program that would be more beneficial. Councilmember Kraft stated he is very interested in being strategic in this area. He referenced the chart in appendix C and stated he would expect programs and money invested would be targeted based on our goals and how we’re doing at achieving them based on this kind of data. Councilmember Kraft asked if on the 4D program, has the city learned anything here from Minneapolis and their success. Ms. Schnitker stated St. Louis Park is offering a higher financial incentive on the front end, but Minneapolis has more rental units than St. Louis Park. She added the programs are almost identical. She stated she does not see a big incentive for market rate owners and developers seem to have a fear about what will happen with the market . Councilmember Kraft asked if it is worth considering stripping out the upper affordability levels of the inclusionary housing policy. Ms. Schnitker stated possibly, but it has not been considered yet; they would need to look at what the impact would be. Ms. Barton added the city will continue to encourage builders to address affordability where the need is and then target public financing into those areas, without having to change the policy, since it is discretionary. Councilmember Brausen noted the city relies on federal programs for folks that need t he deep subsidies, while the market forces continue to drive up the cost of housing. He continued he has worked on affordable housing for many years and noted city staff has always been open to trying new programs. He added this is a region-wide problem and he appreciates the city doing their best on this, while balancing other needs including climate change costs . Councilmember Brausen asked if these types of programs can be funded by legislative programs to fund housing trust funds. Ms. Barton stated the HRA levy could be used for the trust fund and could be utilized in the future to fund other programs. DocuSign Envelope ID: FD64F8C2-1665-4BA9-8A46-E767D5E9842E Study session minutes -6- Feb. 8, 2021 Councilmember Dumalag noted projects with 30% AMI are mostly 100% affordable. She asked if we would attract mostly tax credit developers. Ms. Barton stated that is a common way, but with the inclusionary housing policy and the trust fund, we can provide financial incentives to developers on projects. Councilmember Dumalag asked from appendix C if there is information on bedrooms . Ms. Schnitker stated there is no breakdown on bedrooms, but this is data that can be accessed. Councilmember Dumalag asked about the wait list for public housing programs. Ms. Schnitker stated the length of public housing wait lists depends on how long someone stays in the program and is determined by turnover and how they are able to access programs. Councilmember Dumalag noted the legacy program and asked if it is working for NOAH housing. Ms. Schnitker stated she is not sure it is working since we have not had any inquiries, it may appeal mostly to owners of small buildings. Councilmember Mohamed asked if people in the 60-80% range of AMI can apply for the new homeownership programs. Ms. Schnitker stated they hope to work with agencies that help potential homebuyers attain homeownership and offer a second mortgage that also meets the lowest income possible. She added staff has more work to do on this. Councilmember Mohamed asked about the NOAH rental land trust program and how the partnership would work. Ms. Schnitker stated the owner would own the building and the city owns the land. Councilmember Mohamed asked how 30% AMI would get more housing units, when sometimes they are left out. Ms. Schnitker stated federal funding is one way, and the affordable housing trust fund might be a resource for developers willing to do deeper subsidies . She stated it will take financial resources. Ms. Barton stated to get to 30% AMI it is a lot of subsidies, and local dollars will be needed to make that happen. 3. Home-based businesses Mayor Spano asked about form-based codes. Mr. Morrison stated form-based codes are more about the building form and less about the uses. He added it is used in more of the mixed-use areas versus residential areas. He stated our draft ordinance still regulates some uses. Councilmember Brausen stated he likes the proposed draft ordinance . He stated the 25% rule seems reasonable. He noted the criteria is changing a bit since many are home officing now, but he stated the draft ordinance seems reasonable. Councilmember Brausen noted registering a home business with the city makes sense and it would be useful for database purposes and a minimal fee would be appropriate. He noted having no more than one employee and added it would be hard for the city to monitor. He stated the draft ordinance works well and he supports it. Mayor Spano stated much of the home-based business data is listed at the state offices. DocuSign Envelope ID: FD64F8C2-1665-4BA9-8A46-E767D5E9842E Study session minutes -7- Feb. 8, 2021 Councilmember Harris stated she has a purist approach with home-based businesses and ADU’s and appreciates the topics being separated by staff . She has been working with several residents on home businesses in the neighborhood that had staff coming and going, that are not presently legal but could be, adding this has caused some issues for the neighborhood. Councilmember Harris stated she is quite cautious in allowing home businesses in ADU’s and allowing non-occupants to work out of that space. She appreciates the intent of entrepreneurialism but feels co-working spaces in the community are more appropriate in neighborhoods versus in ADU’s. She added she does not want to see wide-scale confusion and disruption in neighborhoods for home-based businesses and therefore does not support home businesses in neighborhoods. Councilmember Kraft stated the example Councilmember Harris noted would not be allowable, even if the ordinance is adopted. Councilmember Harris agreed. Mr. Morrison stated this business is being operated out of a garage, and a person that lives in the home, works for the company as well. He noted there is a provision in the ordinance that addresses the issue of dropping off supplies and using the space as a warehouse . However, he noted, there is still the problem of enforcement and in this specific situation it would not compliant. Councilmember Kraft asked how violations would be enforced and how would it be harder or easier to enforce. Mr. Morrison stated the first violation is treated as education, so no citation is issued. We also don’t contact the homeowner unless the violation is witnessed by staff. Councilmember Kraft asked if this ordinance would make staff’s job harder. Mr. Morrison stated yes, it runs the risk of requiring more staff time. Councilmember Kraft stated he is generally cautiously supportive of this ordinance and encourages strong education to instruct what is allowable and what is not, adding it must be enforceable. Councilmember Mohamed stated she agrees with Councilmember Kraft and supports the spirit of this ordinance. She added outside of COVID she would be okay with more than one person as staff of the home business. Councilmember Dumalag asked if this issue was due to traffic coming and going . Mr. Walther stated the issue of most concern is the expansion of this into accessory buildings and garages. Mr. Walther added the most complaints staff receives are with businesses in garages. Councilmember Mohamed noted garage sales and asked if they would fall under this ordinance . Mr. Morrison stated this would not fall under the ordinance and added garage sales are allowed for no more than 3 days at a time, and on ly two events in one year. Councilmember Kraft asked if this ordinance is getting too far in front of the community. Mr. Walther stated the change to allow home businesses in accessory buildings like garages, is a big change, and nuisance complaints will increase in this example. DocuSign Envelope ID: FD64F8C2-1665-4BA9-8A46-E767D5E9842E Study session minutes -8- Feb. 8, 2021 Councilmember Harris wanted to clarify this ordinance does not relate to garages . Mr. Walther stated the ordinance as written allows for home businesses both in accessory dwelling units and accessory buildings. Councilmember Harris noted at an earlier meeting, construction costs for an ADU above a garage were estimated at $200,000, which could be unaffordable for some . She asked if the ordinance could be limited to just ADU’s and not any other accessory structures . Mr. Walther stated there are no ADU’s in existence in the city, where there is a separate smaller building in a backyard. Councilmember Harris stated this seems like a problem that does not exist. Mr. Walther stated ADUs are allowed now, so it is a problem that has not yet emerged, but it could as some point. Staff is trying to be clear for someone who resides in an ADU and could use it for an occupation also. He added this gives another layer of flexibility. Councilmember Harris stated she is still not in favor of including a garage or an exterior building in addition to the primary residence for this proposed language. She added this will allow for an intensification of use on lots that are very small in many areas of the city . She noted this will not work for many neighbors and she would support entrepreneurship in other ways in the city. Mayor Spano stated this is coming about because folks live in neighborhoods which are being disrupted because of business uses in residential areas. Mr. Walther stated this ordinance does not address a specific nuisance, rather we are widening for additional activities to occur, so folks can use their home for a business and not detract from the neighborhood in doing so . Mr. Walther stated this ordinance is a way to avoid n uisance, rather than have a nuisance occur and adjust a situation after it happens. Mayor Spano stated this feels like the city already has tools to maintain stability or continuity and asked if the ordinance is necessary. Mr. Morrison stated staff is trying to find a balance with the ordinance, adding that the residence is a home first and a business second. Mayor Spano stated he needs to understand better, adding this is a lifestyle issue that neighbors are asking the city to make go away when it may not necessarily impact them. He added he wants to be sure the city uses the tools they have now, before creating new ones . Councilmember Brausen stated he understands the Mayor’s concerns about overregulation but added staff has come with examples of issues that have arisen, noting staff has created a structure of regulation and guardrails, and if opposed, the Mayor is free to vote against it . Mr. Walther stated the planning commission wanted input from council on the draft ordinance before starting the formal public hearing process. He thanked the council for their feedback and will bring this back to the planning commission. It was the consensus of the council to support this in general and send it back to the planning commission for further review and recommendations. DocuSign Envelope ID: FD64F8C2-1665-4BA9-8A46-E767D5E9842E Study session minutes -9- Feb. 8, 2021 4. Future study session agenda planning and prioritization Mayor Spano stated the Feb. 22, 2021 meeting will include a policing discussion as well as setbacks, and affordable housing, and discussion of the city manager selection process. He suggested a focus on the city manager and setback discussion . Councilmember Kraft noted the policing discussion is a priority and he would like to keep it moving forward. Councilmember Brausen stated starting the meeting at 6 p.m. would help and agreed the policing discussion and city manager process would be best. Councilmember Mohamed and Harris agreed. The council agreed to move the housing discussion to a later date. Communications/meeting check-in (verbal) Mr. Harmening noted at the February 16, 2021 meeting there will be a closed session related to public safety measures. Councilmember Harris stated she has been in touch with several city restaurant owners regarding pandemic response to outdoor dining. Mr. Harmening stated the concern is that owners are worried about how long to rent tents, and/or if they should purchase them and the costs to do this. He suggested staff look at grants for owners to help them purchase tents, and leave the current policy that council approved in place. Councilmember Harris suggested the city let owners have their tents up all summer. Mr. Harmening stated when the restrictions are lifted, and if tents remain up, there may be concerns about parking, while being up at full occupancy. Councilmember Harris clarified and asked if tents could remain up until the Governor’s peacetime declaration ends or until September 30, 2021, whichever comes first. Ms. Barton stated the city is looking at allowing up to five months – one month at a time - of rental and providing half the cost of that. Mayor Spano asked how many businesses have concerns here. Mr. Harmening stated three businesses. Ms. Barton stated this would be marketed to businesses, including restaurants and fitness studios. Councilmember Brausen asked that this be put on study session as a topic. Mr. Harmening stated staff is working on a solution and he will keep council informed. DocuSign Envelope ID: FD64F8C2-1665-4BA9-8A46-E767D5E9842E Study session minutes -10- Feb. 8, 2021 Councilmember Kraft noted the Children’s First Breakfast is next month and it is virtual th is year. Mayor Spano will be hosting a table and invited the councilmembers to join. Councilmember Kraft stated there was a story in the Sun Sailor about the $2 million cost of the CAP. He stated this is an investment in the community that would generate a return for the community and encouraged councilmembers to use appropriate language when discussing the CAP with the community. Councilmember Kraft stated he feels a break is warranted during the meetings and he would appreciate a break being offered in future meetings. Councilmember Brausen stated there was a nice article in the business section of the Star Tribune on the Quentin Development, their promotion of fresh air, and all the qualitative things being included there. The meeting adjourned at 9:45 p.m. Written Reports provided and documented for recording purposes only: 5. Proposed allocation of 2021 Community Development Block Grant (CDBG) funds ______________________________________ ______________________________________ Melissa Kennedy, city clerk Jake Spano, mayor DocuSign Envelope ID: FD64F8C2-1665-4BA9-8A46-E767D5E9842E