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HomeMy WebLinkAbout2021/10/11 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA OCT. 11, 2021 The St. Louis Park City Council is meeting in person in accordance with the most recent COVID- 19 guidelines. Members of the public may attend the Oct. 11, 2021 meeting, in person at St. Louis Park City Hall, 5005 Minnetonka Blvd. The meeting may also be viewed live via webstream at bit.ly/watchslpcouncil and on local cable (Comcast SD channel 17/HD channel 859). Visit bit.ly/slpccagendas to view the agenda. 6:30 p.m. STUDY SESSION – community room Discussion items 1. 6:30 p.m. 2022 Capital Improvement Plan, utility rates, and proposed budget 2. 8:00 p.m. Anti-idling research and recommendations 3. 8:30 p.m. Upcoming study session agenda 8:35 p.m. Communications/updates (verbal) 8:40 p.m. Adjourn Written reports 4. Proposed amended and restated TIF Policy 5. COVID-19 local business assistance update The agenda is posted on Fridays on the official city bulletin board in the lobby of city hall and on the text display on civic TV cable channel 17. The agenda and full packet are available by noon on Friday on the city’s website. If you need special accommodations or have questions about the meeting, please call 952-924-2525. Meeting: Study session Meeting date: October 11, 2021 Discussion item: 1 Executive summary Title: 2022 Capital Improvement Plan, utility rates, and proposed budget Recommended action: No formal action required. This report is to guide the study session discussion regarding the 2022 Capital Improvement Plan (CIP), utility rates and budget. Policy consideration: •Does council support the CIP as presented (see the 2022-2026 capital plan by department)? •Does the council support the proposed rate increases for 2022 for each utility fund (see the 2022 proposed utility rates)? •Is council comfortable with a 5.58% final levy that includes components as outlined in this report? Summary: Staff will 1) provide background information, 2) recap the 2022 budget decisions-to- date, 3) outline 2022 budget components (including operating assumptions, recommended service level improvements, CIP, and utility funds), and 4) review the relationship between the components and the final budget. Staff have produced a recommended 2022 budget with a 5.58% general levy increase that includes the following: a Housing and Rehabilitation Authority (HRA) levy at $1,517,799, an Economic Development Authority levy at $500,000, a proposed capital plan, proposed utility rates, and service level improvements that meet our Vision 3.0 priorities. Financial or budget considerations: The CIP and Long-Range Financial Management Plan work in conjunction with the city’s annual budgeting process in helping to determine an appropriate property tax, HRA levy, and EDA levy. This also aids in maintaining the City’s AAA bond rating. Strategic priority consideration: All areas of the adopted strategic priorities are impacted by the city’s budget. St. Louis Park is committed to: •being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. •continue to lead in environmental stewardship. •providing a broad range of housing and neighborhood-oriented development. •providing a variety of options for people to make their way around the city comfortably, safely and reliably. •creating opportunities to build social capital through community engagement. Supporting documents: Discussion 2022 proposed utility rates 2022-2026 capital plan by department Prepared by: Melanie Schmitt, chief financial officer Reviewed by: Cindy Walsh, interim deputy city manager/operations & recreation director Approved by: Kim Keller, city manager Study session meeting of October 11, 2021 (Item No. 1) Page 2 Title: 2022 Capital Improvement Plan, utility rates, and proposed budget Discussion Background Background information in this report includes historic levy trends, highlighted information about outcomes with our current service level investment and updated financial projections. Historic levy trends The historical average of our final levy increase is approximately 5.2%. Current service levels Our levy allows us to provide high quality, responsive service to residents. Some recent highlights of outstanding service the city provides include: •Our community development department aids hundreds of small businesses annually and applies for grant funds on behalf of major development projects. A current example is the $4 million in contamination cleanup, Transit Oriented Development, and livable communities’ grants secured for St. Louis Park developments. •The Police Department responds to over 50,000 calls for service yearly, or 1 call every 10 minutes •Inspections division completes over 22,000 inspections a year with a turnaround time of 72 hours (many are completed within 24 hours) •More than 40,000 people visit the aquatic park and nearly 8,000 visit the splash pad annually •Operations maintains over 227 miles of street with 1,800 streetlights, over 8,500 street signs, 70 miles of pavement striping and over 4,000 pavement markings. •Engineering rehabilitates approximately 7 miles of streets each year, or 4.6% of our total street mileage •The Fire department receives over 4,400 calls for service a year for emergency and non- emergency medical response, structure fires, car accidents and fire alarms. They also perform over 700 inspections, and issue over 300 fire protection permits. •Facilities division has been enhancing protection of staff and guests to city buildings though regular sanitizing, installing shields, supplying personal protective equipment (PPE), and HVAC modifications •Sustainability division supported the installation of six new Level 2 EV Chargers at The Rec Center and at Westwood Hills Nature Center Study session meeting of October 11, 2021 (Item No. 1) Page 3 Title: 2022 Capital Improvement Plan, utility rates, and proposed budget •Operations mows 450 acres of grass weekly in the summer and plows 10 miles of regional trails, along with numerous park trails in the winter •Elections serves 37,567 registered voters in the City •Race equity works with 28 active neighborhood associations out of 35 geographic neighborhoods •Over 37,000 phone calls are answered at the city hall front desk annually •Human resources receives around 2,500 applications for open positions each year and has more than 600 active employees throughout the year 2022 Budget decisions-to-date On September 20, 2021, Council passed three preliminary levies. 2022 Preliminary general levy The 2022 preliminary general levy has been set at 6.5%. This is an increase of $2,360,495 over the 2021 levy. The primary driver of the levy is debt service on the Dakota Bridge project, increases to capital items from supply chain demands, and inflationary increases including staffing costs. Study session meeting of October 11, 2021 (Item No. 1) Page 4 Title: 2022 Capital Improvement Plan, utility rates, and proposed budget The preliminary general levy was passed along with direction to look for ways to ultimately approve a lower levy increase while keeping in place the service level residents and businesses expect. HRA levy The preliminary Housing and Rehabilitation Authority levy was set at the maximum allowed .0185% of estimated market value, which is consistent with previous years. In 2022 this equates to an estimated $1,517,799. Per council direction, approximately $400,000 will be used for housing staff salaries, with the balance of the levy proceeds placed in the city’s housing trust fund. EDA levy A preliminary Economic Development Authority levy was approved for $500,000 or approximately .00610% of estimated market value. This is lower than the maximum allowed, which would bring in an estimated $1,487,442. This levy will be used to fund our climate investment initiatives around commercial businesses ($300,000) and salaries in the development fund ($200,000). 2022 budget components At a very high level, a city’s annual budget consists of general fund (operational) expenditures and capital expenditures. The proposed budget for any given year is also crafted around the long- range financial plan and a number of built-in assumptions around spending. Due to ARPA funding, the years 2023-2026 will have an additional key component to factor in. Earlier in the 2022 budget development process, staff anticipated needing ARPA funds for 2022 expenditures. This is no longer the case and ARPA funding will be discussed at a council study session in early 2022. Operating assumptions around spending Currently, the following assumptions are included in 2022 budget planning: •Service levels for the public remain at 2021 levels, with recommended additions as outlined below. These additions are recommended to be funded with dollars health care expenditure savings. •The Capital Improvement Plan is funded as laid out in the 2022-2026 capital plan by department. •$300,000 budgeted for climate programs from the EDA levy •The policy of budgeting for a 45% general fund balance continues •Proposed general fund balance transfers will be approved by the council at the Oct. 18 meeting (support for this given by council members at Aug. 23, 2021 study session) Drawing from the approved long-range financial plan, additional, longer-term assumptions are also made, including: •Redistribute Tax Increment (65%) from districts where obligations are paid off, but the Council retains a portion (35%) for affordable housing. •Realign commercial and industrial franchise fees to reduce future residential fee increases. Proposed increases every other year. Study session meeting of October 11, 2021 (Item No. 1) Page 5 Title: 2022 Capital Improvement Plan, utility rates, and proposed budget Proposed service level improvements To live our Vision 3.0 priorities, keep up with service demands and respond to State mandates, the following ongoing expenses are recommended in 2022. These expenses are recommended to be paid for by health care expenditure savings. •New sustainability specialist ($90,676): To assist in the creation and implementation of engagement initiatives for the advancement of sustainability and the Climate action plan. •New dispatch supervisor ($113,239): Will manage training and skills for department ensuring our response model is efficient and coordinate with aftercare providers to maintain continuity. This position keeps the department in compliance with new State mandates around mental health care. •Increased mental health professional services in both police and fire departments ($31,000): Adult behavioral health social workers are utilized when an individual could benefit from social service support. These dollars supplement current hours to bring positions to full time status. •Increased hours for race equity program specialist ($15,703): Further support to Racial Equity Manager supporting strategic priorities around being a leader in racial equity and inclusion. These dollars supplement current hours to bring position to full time status. Capital Improvement Plan (CIP) Each spring, staff is asked to determine the needs of the city and their respective departments regarding purchases or construction of capital items. Generally speaking, a capital item has a cost greater than $10,000 and a useful life of 3 years or more. The CIP is adopted and updated annually. As departments prepare their respective CIPs, they are asked to consider the importance of the capital needs and classify them as follows: 1)Have to do: required by mandate or to maintain a system or business need. 2)Smart to do: makes sound business sense and/or anticipates opportunities and takes advantage of them. 3)Would like to do: if resources became available or are made available, it would make business sense but not as critical as higher level items. Staff also takes into consideration policy direction from Vision 3.0 strategic priorities, climate action plan, racial equity and inclusion and the comp plan when reviewing projects, purchases, programs and planning in the CIP and other budget areas. Staff has actively increased and decreased projects to work within the preliminary 2022 budget. Pavement management fund was reduced approximately $1 million, this is due to commercial street rehab moving to 2023. Fleet reduction was a little over $400,000; this was accomplished by moving a sweeper and other vehicles to future years. Additionally, the park fund increased approximately $100,000 due to inflation of scheduled projects. The capital replacement fund increased approximately $700,000 due to moving cost for Rec Center solar to 2022 (as discussed at the Aug. 23 and Oct. 4, 2021 study session) and inflation of current projects. Staff continues to review projects for 2022 to balance needs with budget availability. Each year, the draft CIP is presented to council during the budget process for review and adoption. The 2022-2026 capital plan by department lays out the 2022 draft CIP. Study session meeting of October 11, 2021 (Item No. 1) Page 6 Title: 2022 Capital Improvement Plan, utility rates, and proposed budget Utility rates The city is utilizing the updated rate study model done by Ehlers and Associates to determine utility rate increases. Recommended utility rates are in the 2022 proposed utility rates. The study took a broad look at the operations and capital needs of the utility funds and if the if the updated tier structure distributes cost in the manner we identified with the 2018 rate study. In addition to the bullets below, the recommended increases across all four funds also include asset management software as a capital expense. Water Fund (4.5% recommended increase) •Base fee covers fixed costs. Varies by meter size. •750 gallons = one unit of water •Rates increase as residents use more water, to promote conservation •Capital projects in 2022 include local street rehab, and water well rehab •Suggested increase of 4.5% annually through 2031 Sanitary Sewer Fund (3.5% recommended increase) •Base charge covers fixed cost •Rates are the same for residential and commercial properties •Capital projects in 2022 include 36th & Wooddale street rehab, and sanitary sewer lining •Suggested increase of 3.5% annually through 2031 Storm Drainage/Stormwater Fund (6% recommended increase) •Billed by residential equivalent factor, per city code •Residential equivalent factors adjust stormwater runoff for non-single-family properties to the appropriate share of water runoff that goes into the storm sewer system •Capital projects in 2022 include local street rehab, and rainwater rewards •Suggested increase of 6% annually through 2031 Solid Waste Fund (5.25% recommended increase) •Rates include garbage, recycling, organics, and yard waste (rates are per contract) •Phasing out smallest garbage cart size (20 gallon) by September 2023 o Cost to provide 20-gallon garbage carts exceeds the fee that is being collected from customers o Customers who generate a small amount of garbage can utilize the every- other- week collection service. Customers who current have 20-gallon weekly service and elect for 30-gallon bi-weekly service will see a small decrease in their solid waste bill. •Suggested increase of 5.25% annually through 2031 The final impact The final impact on taxpayers in 2022 will be a combination of levies (i.e. general, HRA, and EDA (assuming it passes)) and fees (i.e. utility and franchise). Staff’s recommended 2022 general levy increase is 5.58%. Scenarios at different levy increase rates and for single family homes, apartment buildings, and commercial buildings are below. Study session meeting of October 11, 2021 (Item No. 1) Page 7 Title: 2022 Capital Improvement Plan, utility rates, and proposed budget For the median valued single-family home, current projections are below. Recommended levy increase Additional levy increase options For the median valued apartment building, current projections are below. Recommended levy increase total change Levy Change 5.58% Estimated city taxes 1,407.03$ 154.38$ Estimated utility rates (median user)1,374.84$ 60.04$ Estimated franchise fee (no change)162.00$ -$ Total per year 2,943.87$ 214.42$ Total per month 245.32$ 17.87$ Snapshot of impacts on median value home ($330,500) total change Levy Change 4.50% Estimated city taxes 1,392.38$ 120.40$ Estimated utility rates (median user)1,374.84$ 60.04$ Estimated franchise fee (no change)162.00$ -$ Total per year 2,929.22$ 180.44$ Total per month 244.10$ 15.04$ Snapshot of impacts on median value home ($330,500) total change Levy Change 6.50% Estimated city taxes 1,420.10$ 167.45$ Estimated utility rates (median user)1,374.84$ 60.04$ Estimated franchise fee (no change)162.00$ -$ Total per year 2,956.94$ 227.49$ Total per month 246.41$ 18.96$ Snapshot of impacts on median value home ($330,500) total change Levy Change 5.58% Estimated city taxes 10,552.00$ 290.77$ Estimated utility rates (median user)17,301.36$ 680.20$ Estimated franchise fee (no change)1,164.00$ -$ Total per year 29,017.36$ 970.97$ Total per month 2,418.11$ 80.91$ Snapshot of impacts on median value apartment building (class C) Study session meeting of October 11, 2021 (Item No. 1) Page 8 Title: 2022 Capital Improvement Plan, utility rates, and proposed budget Additional levy increase options For the median valued commercial building, current projections are below. Recommended levy increase Additional levy increase options total change Levy Change 4.50% Estimated city taxes 10,448.00$ 186.77$ Estimated utility rates (median user)17,301.36$ 680.20$ Estimated franchise fee (no change)1,164.00$ -$ Total per year 28,913.36$ 866.97$ Total per month 2,409.45$ 72.25$ Snapshot of impacts on median value apartment building (class C) total change Levy Change 6.50% Estimated city taxes 10,646.00$ 384.77$ Estimated utility rates (median user)17,301.36$ 680.20$ Estimated franchise fee (no change)1,164.00$ -$ Total per year 29,111.36$ 1,064.97$ Total per month 2,425.95$ 88.75$ Snapshot of impacts on median value apartment building (class C) total change Levy Change 5.58% Estimated city taxes 3,665.73$ 64.73$ Estimated utility rates (median user)38,535.36$ 1,601.76$ Estimated franchise fee (no change)3,564.00$ -$ Total per year 45,765.09$ 1,666.49$ Total per month 3,813.76$ 138.87$ Snapshot of impacts on median value commercial building ($637,000) total change Levy Change 4.50% Estimated city taxes 3,629.73$ 28.73$ Estimated utility rates (median user)38,535.36$ 1,601.76$ Estimated franchise fee (no change)3,564.00$ -$ Total per year 45,729.09$ 1,630.49$ Total per month 3,810.76$ 135.87$ Snapshot of impacts on median value commercial building ($637,000) Study session meeting of October 11, 2021 (Item No. 1) Page 9 Title: 2022 Capital Improvement Plan, utility rates, and proposed budget Next Steps Below is a summary of upcoming discussions: Oct. 18 Council meeting: Approve 2021 fund balance transfers, fund creation, and fund closures Nov. 1 Council meeting: Public hearing: first reading utility rates and fee increases 2022 Nov. 15 Council meeting: Adopt fee schedule including utility rates 2022 Dec. 6 Council meeting: Public hearing: Truth in Taxation, budget presentation 2022 Dec. 20 Council meeting: Council adopts 2022 Budgets, final tax levies (City, HRA, and EDA), and 2022 - 2031 CIP total change Levy Change 6.50% Estimated city taxes 3,723.00$ 122.15$ Estimated utility rates (median user)38,535.36$ 1,601.76$ Estimated franchise fee (no change)3,564.00$ -$ Total per year 45,822.36$ 1,723.91$ Total per month 3,818.53$ 143.66$ Snapshot of impacts on median value commercial building ($637,000) CITY OF ST. LOUIS PARKESTIMATED QUARTERLY UTILITY BILL ACTUAL 2017 AND PROPOSED 2018 Household Size4Water ‐ Units per quarter30Sewer ‐ Units per quarter20Solid Waste Service60‐gallonMeter size3/4 inchActual Proposed Dollar PercentService  Type2021 2022 Change Change NotesWaterPer unit rate ‐ Tier 12.07$             2.16$           0.09$             4.50%Per unit rate ‐ Tier 22.51$             2.62$           0.11$             4.50%Per unit rate ‐ Tier 33.01$             3.15$           0.14$             4.50%Service charge38.06$           39.77$         1.71$             4.50%State testing fee**2.43$             2.43‐$               0.00%Consumption74.43$           77.78$         3.35$             4.50%SewerBase service charge20.09$           20.79$         0.70$             3.50%Per unit3.92$             4.06$           0.14$             3.50%Consumption78.40$           81.14$           2.74$             3.50%Storm DrainageService charge26.27$           27.85$         1.58$             6.00%Bassett Creek Fee*1.93$             2.32$           0.39$             20.00% Bassett Creek feeSolid Waste (includes taxes and fees)85.92$           90.43$           4.51$             5.25%Total Bill without Bassett*325.60$        340.20$        14.60$           4.48% Not including BCWMCIncrease per quarter (dollars)14.60$          58.39      Increase per month (dollars)4.87$            58.39      * Since not all property owners would be charged this fee, it is not included in the dollar orpercentage change in total bill**Pass through fee to Minnesota Department of HealthPage 10 Study session meeting of October 11, 2021 (Item No. 1) Title: 2022 Capital Improvement Plan, utility rates, and proposed budget Capital Improvement Program City of St. Louis Park, MN PROJECTS BY DEPARTMENT 2022 2026thru Total2022 2023 2024 2025 2026DepartmentProject # Priority Buildings 31230001 25,00025,000City Hall ITE & Gould Elect Panel Replacement 3 31240001 35,00035,000City Hall Generator Head Gasket 1 31240002 8,0008,000City Hall Stair Carpet Replacement 5 31240004 85,00085,000City Hall Bridge 3 31240005 10,00010,000City Hall/Police Campus Landscaping 1 31240006 35,00035,000City Hall 2nd Floor Celing Tile Replacement 5 31240007 25,00025,000City Hall EV Chargers for Fleet 3 31250001 200,000200,000CH Windows, Ext. Coatings and Caulking Replacement n/a 31250002 15,00015,000City Hall Window Blinds 5 31250003 80,00080,000City Hall Timber Retaining Walls 1 31260001 35,00035,000City Hall First Floor Carpet Replacement 3 31260002 100,000100,000CH Access Control System Replacement, City Wide 3 32180004 20,00020,000Police Parking and Training Feasability Study 3 32220002 25,00025,000Police Report Writing Room Remodel 3 32220003 85,00085,000Police Station Remodel Restrooms 1 32220004 15,00015,000Police Station Entry Planter Brick Face 3 32220005 10,00010,000Police Lobby Furniture 1 32220006 5,0005,000Police Station Evidence Gate Doorway 3 32240001 250,000250,000Police Station Exterior Bullet Resistant Glass 3 32240002 25,00025,000Police Station Blind Replacement 3 32240004 140,000140,000PD Indivdual Office 3 32240005 38,00038,000Police Station VAV Replacement 1 32250001 15,00015,000Police Station Exercise Equipment Replacement 5 32250002 20,00020,000Police Station Replace Ceiling Tile 3 32250003 15,00015,000Police Station Range Targeting System 5 32250004 50,00050,000Police Parking Gate 5 32260001 90,00090,000Police Station Replace Carpet 3 33140002 45,00015,000 15,000 15,000MSC & Fire Stations CO Nox Sensor Replacement 1 33220001 70,00070,000MSC 2nd Bay-Sealant 3 33220002 11,00011,000MSC Campus Landscaping 3 33220003 10,00010,000MSC Natural Resources Manager Office 3 33230002 250,000250,000MSC Heat Exchanger Ventilation 3 33230004 20,00020,000MSC Traffic Shop Floor Sealant 5 33230005 20,00020,000MSC Convert Exterior HID to LED 3 33230006 50,00050,000MSC 3rd Bay Sealant and Stripping 1 33240001 45,00045,000MSC Bays LED Upgrade 3 33250001 25,00025,000MSC Paint Booth Maintenance 3 33250003 600,000600,000MSC Bays 1, 2 & 3 Roofing 3 33260001 12,00012,000MSC Replace HVAC Controls 3 34160002 120,000120,000Fire Stations 1 & 2 Apparatus bay floor coating 1 34220001 35,00035,000Fire Stations Replace Exercise Equipment 5 34220002 15,00015,000Fire 1&2 Mattresses 3 34230004 250,000250,000Fire Station 1 Decontamination Laundry 3 34240001 10,00010,000Fire Station #1 and #2 Landscaping 1 34240002 18,00018,000Fire 1&2 Water Heaters 3 34240003 10,00010,000Fire Station #2 Water Heater Replacement 3 Wednesday, October 6, 2021Page 12021-2030 Capital Improvement Plan Page 11 Study session meeting of October 11, 2021 (Item No. 1) Title: 2022 Capital Improvement Plan, utility rates, and proposed budget Total2022 2023 2024 2025 2026DepartmentProject # Priority 34240004 35,00035,000FS #1 and #2 Carpet Replacement 1 34240005 12,00012,000Fire Stations Replace HVAC Controls 5 34240006 45,00045,000Fire Station # 1 Entry Canopy 3 34250001 50,00050,000Fire Station #1 Training Tower modifications 5 34260001 60,00060,000Fire Station #1 light fixture replacements 1 35250001 45,00045,000Fire Station #2 Replace light fixtures 1 36220001 20,00020,000Westwood Fresh Air Cross Ventilation 3 36260001 20,00020,000Westwood Multi-purpose Rooms Tile 3 36260002 12,00012,000Westwood Replace Projectors 3 37220001 485,000485,000Rec Center Solar 3 3,856,000705,000 700,000 872,000 1,235,000 344,000Buildings Total Cable TV 11151002 20,00020,000Van Camera Cases 3 11151003 13,00013,000Van Camera Cables 3 11151007 10,00010,000Tripods for On Location 3 11172007 40,00040,000Council Chambers HD pan/tilt cameras 1 11191009 35,00035,000Replacement edit systems 1 11201001 140,000140,000Van Cameras 3 11201002 20,00020,000Van Camera Cases 3 11201003 13,00013,000Van Camera Cables 3 11201010 12,00012,000Tripods for On Location 1 11201015 14,00014,000Production switcher 1 317,00014,000 33,000 270,000Cable TV Total Engineering 40199006 12,862,71410,362,714 2,500,000SWLRT- Park and Ride Ramp at Beltline Station 1 40204001 161,000161,000Storm Water - Hannon Lake subwatershed 3 40211000 7,391,3877,391,387Street - Local Street Rehab (Area 8) 1 40220003 287,500287,500Concrete Replacement- SW-C&G-CB 1 40221500 721,000721,000Alley Construction 3 40223000 540,000540,000Sanitary Sewer- Lining 1 40224001 236,900236,900Storm Water- Lamplighter Pond Rehab 1 40224300 55,00055,000Storm Water- BMP maintenance 1 40224500 50,00050,000Storm Water- Rainwater Rewards 3 40226000 6,658,6256,658,625Street- W 36th Street/ Wooddale Rehab 1 40230003 287,500287,500Concrete Replacement- SW-C&G-CB 1 40231000 7,158,1367,158,136Street - Local Street Rehab (Area 1)1 40231050 1,529,2811,529,281Street - Commercial Street Rehab 1 40231100 8,622,5708,622,570Street - MSA Street Rehab (CLR TH169 to Nevada)1 40231200 494,400494,400Street - Maintenance Project (Area 6)1 40231500 734,000734,000Alley Construction 3 40232000 326,150326,150CTP Bikeway - Sidewalk - Trail 5 40233000 560,000560,000Sanitary Sewer- Lining 1 40234000 1,828,500159,000 1,669,500Storm Water- Webster Park WQ Improvements 3 40234200 20,00020,000Storm Water - Carpenter Park Maintenance 1 40234300 58,00058,000Storm Water- BMP maintenance 1 40234500 50,00050,000Storm Water- Rainwater Rewards 3 40237000 4,010,000250,000 250,000 1,220,000 2,290,000County - Mtka Blvd (Hwy 100 to France)1 40240003 287,500287,500Concrete Replacement- SW-C&G-CB 1 40241000 7,428,9457,428,945Street - Local Street Rehab (Area 7)1 40241050 1,789,7841,789,784Street - Commercial Street Rehab 1 40241100 9,587,6409,587,640Street - MSA Street Rehab (Lou and CLR)1 40241200 412,000412,000Street - Maintenance Project (Area 8)1 40241500 660,000660,000Alley Construction 3 Wednesday, October 6, 2021Page 22021-2030 Capital Improvement Plan Page 12 Study session meeting of October 11, 2021 (Item No. 1) Title: 2022 Capital Improvement Plan, utility rates, and proposed budget Total2022 2023 2024 2025 2026DepartmentProject # Priority 40241600 70,62070,620Parking Lot - MSC 3 40243000 580,000580,000Sanitary Sewer- Lining 1 40244000 438,725438,725Storm Water- Louisiana Oaks & South Oak Pond Rehab 1 40244001 94,01394,013Storm Water- Park Glen Improvements 1 40244002 87,74587,745Storm Water- Twin Lake outfall replacement 1 40244300 59,50059,500Storm Water- BMP maintenance 1 40244500 52,00052,000Storm Water- Rainwater Rewards 3 40250003 287,500287,500Concrete Replacement- SW-C&G-CB 1 40251000 7,252,5007,252,500Street - Local Street Rehab (Area 2)1 40251050 1,268,4501,268,450Street - Commercial Street Rehab 1 40251200 576,800576,800Street - Maintenance Project (Area 1)1 40251500 464,000464,000Alley Construction 3 40251601 17,85017,850Parking Lot - Fire Stn #1 3 40251602 12,60012,600Parking Lot - Fire Stn #2 3 40253000 600,000600,000Sanitary Sewer- Lining 1 40253100 675,000675,000Sanitary sewer - Glenhurst LS #19 1 40254300 61,00061,000Storm Water- BMP maintenance 1 40254500 52,00052,000Storm Water- Rainwater Rewards 3 40260003 287,500287,500Concrete Replacement- SW-C&G-CB 1 40261000 5,307,5475,307,547Street - Local Street Rehab (Area 3)1 40261050 2,873,0682,873,068Street - Commercial Street Rehab 1 40261200 473,800473,800Street - Maintenance Project (Area 7)1 40261500 466,000466,000Alley Construction 3 40262000 630,200630,200CTP Bikeway - Sidewalk - Trail 5 40263000 620,000620,000Sanitary Sewer- Lining 1 40264000 1,983,7501,983,750Storm Water- Ainsworth Park WQ Improvements 3 40264200 20,00020,000Storm Water - Carpenter Park Maintenance 1 40264300 62,50062,500Storm Water- BMP maintenance 1 40264500 52,00052,000Storm Water- Rainwater Rewards 3 100,235,20026,873,126 24,259,537 22,768,472 13,557,700 12,776,365Engineering Total Fire 65990001 16,0008,000 8,000Thermal Imagers 1 65990003 337,642337,642SCBA1 65990005 18,00018,000Auto-CPR Device 1 65990006 100,0000100,000Turnouts1 65990008 12,5006,000 6,500Air Monitors 3 65990009 39,00039,000AED's 1 65990010 24,00012,000 12,000Body Armor 3 65990011 15,0007,200 7,800RAD 57 5 65990012 12,00012,000Training Equipment Cache 3 65990013 6,00006,000Firefighting Barrier Hoods 1 65990014 16,0006,000 10,000Ice/Water Rescue Cache 3 65990016 25,00025,000Technical Rescue Cache n/a 65990017 17,0008,000 9,000Hose/Nozzle 1 65990019 8,0008,000Ventilation Fans 3 65990020 21,50021,500EMS - MED Kits 3 667,64213,200 389,642 60,800 84,000 120,000Fire Total Operations & Recreation 21201801 345,000345,000Dakota Park LED Baseball Field Light Replacement 3 21216101 490,000490,000Webster Park Construction n/a 21221806 172,500172,500Dakota Bridge 1 21221815 75,00075,000Trail Reconstruction - Dakota Park 1 21224109 50,00050,000Trail Reconstruction - Minnehaha Creek 3 Wednesday, October 6, 2021Page 32021-2030 Capital Improvement Plan Page 13 Study session meeting of October 11, 2021 (Item No. 1) Title: 2022 Capital Improvement Plan, utility rates, and proposed budget Total2022 2023 2024 2025 2026DepartmentProject # Priority 21230301 500,000500,000Court Reconstruction - Aquila Park Tennis (w/BSM) n/a 21231001 35,00035,000Court Reconstruction - Browndale Park n/a 21234611 30,00030,000Trail Reconstruction - Otten Pond 3 21234801 8,0008,000Court Resurface - Pennsylvania Park Basketball 3 21235112 10,00010,000Trail Reconstruction - Roxbury Park 3 21235813 10,00010,000Court Reconstruction - Twin Lakes Park Basketball 3 21240317 75,00075,000Trail Reconstruction - Aquila Park 3 21241118 50,00050,000Trail Reconstruction - Carpenter Park 3 21242719 30,00030,000Trail Reconstruction - Jersey Park 1 21244001 6,0006,000Court Resurface - Minikahda Vista Park Basketball 3 21246202 30,00030,000Trail Reconstruction - Westwood Hills NC, wldflr/t 3 21252101 5,0005,000Court Resurface - Fern Hill Park Tennis 3 21256403 100,000100,000Wolfe Park Amphitheater Pavers 3 212593202 51,50051,50040th & France Fencing & Parking Lot 3 21259903 100,000100,000Trail Reconstruction 3 21259905 150,000150,000Park Shelter Replacement - various parks 3 21259906 100,000100,000Trail Lighting 3 21260601 6,0006,000Court Resurface - Birchwood Basketball 3 21269901 100,000100,000Park Parking Lot Resurface 3 21269903 130,000130,000Trail (new), Hampshire Park to Otten Pond n/a 21990101 75,00075,000Playground Eqpt Repl - Ainsworth Park + concrete 1 21990301 100,000100,000Playground Eqpt Repl - Aquila Park 1 21990902 70,00070,000Playground Eqpt Repl - Bronx Park 1 21991002 80,00080,000Playground Eqpt Repl - Browndale Park 1 21991102 70,00070,000Playground Eqpt Repl - Carpenter Park 1 21991503 70,00070,000Playground Eqpt Repl - Cedarhurst Park 1 21991712 70,00070,000Playground Eqpt Repl - Parkview Park 1 21992611 70,00070,000Playground Eqpt Repl - Jackley Park 1 21993217 70,00070,000Playground Eqpt Repl - Knollwood Green 1 21994502 70,00070,000Playground Eqpt Repl - Oregon Park 1 21995403 70,00070,000Playground Eqpt Repl - Sunset Park 1 21996112 65,00065,000Playground Eqpt Repl - Webster Park 1 21996402 100,000100,000Playground Eqpt Repl - Wolfe Park EVOS/Rock Climb 1 21999902 150,00030,000 30,000 30,000 30,000 30,000Playground Woodchips 1 22999901 390,00075,000 75,000 80,000 80,000 80,000Tree Replacement (80% blvd + 20% parks)3 22999903 125,00025,000 25,000 25,000 25,000 25,000Buckthorn Management 3 23206201 40,00040,000Westwood Hills NC Rotary Deck Rebuild 1 23226201 48,00048,000Westwood Hills NC Garage (new)1 23226210 25,00025,000Westwood Hills NC Water Garden Repair/Trl mtce 5 23246202 15,00015,000Westwood Hills NC Staircase Railing 1 23246220 50,00050,000Westwood Hills NC Boardwalk Deck Repl, Ph 3 1 23256203 100,000100,000Westwood Hills NC Boardwalk Deck Repl, Ph 1,Wside 3 23256204 50,00050,000Westwood Hills NC Waterfall liner repair 5 24215005 215,000215,000Rec Center Parking Lot Replacement 1 24225004 70,00070,000Rec Center Parking Lot Light Replacement w/poles 1 24225006 40,00040,000Rec Center East Arena Painting 1 24225007 290,000290,000Rec Center Arena Rubber Floor 1 24225008 200,000200,000Rec Center Signage (2 entrance signs)3 24225010 25,00025,000Rec Center Elevator Updates 1 24225011 30,00030,000Rec Center Aquatic Park Sun Shelter Addition 1 24235008 75,00075,000Rec Center Arenas,Water Trtmnt Repl (to make ice)1 24235009 75,00075,000Rec Center West Arena Painting 1 24255003 25,00025,000Rec Center Banquet Room Carpet Replacement 3 24255010 800,000100,000 700,000Rec Center West Arena Roof Replacement 1 24265003 300,000300,000Rec Center West Arena Locker Room Remodel 3 24265004 1,000,0001,000,000Rec Center Boiler Replacement 1 24995003 150,000150,000Rec Center/ROC Dasher Board Replacement 1 Wednesday, October 6, 2021Page 42021-2030 Capital Improvement Plan Page 14 Study session meeting of October 11, 2021 (Item No. 1) Title: 2022 Capital Improvement Plan, utility rates, and proposed budget Total2022 2023 2024 2025 2026DepartmentProject # Priority 24995006 30,00015,000 15,000Rec Center Arena Refrigeration Maintenance 1 24995008 125,00050,000 75,000Rec Center Dasher Board Repair 3 24995017 95,00020,000 15,000 20,000 20,000 20,000Rec Center Landscaping (woodchips)3 25210203 10,00010,000Rec Center Aquatic Park Feasibility Study 3 25220205 70,00070,000Rec Center Aquatic Park Locker Room Remodel 3 25235003 100,000100,000Rec Center Aquatic Park Sand/Play/Gazebo 1 25240201 250,000250,000Rec Center Aquatic Park Pool Gutters 1 25240202 250,000250,000Rec Center Aquatic Park Pool Heaters 1 25240203 100,000100,000Rec Center Aquatic Park Slide Recoating 1 25990212 25,00010,000 15,000Rec Center Aquatic Park Deck Furniture 1 25990215 12,5005,000 7,500Rec Center Aquatic Park Concession Eqpt. Rplcmt 3 27226601 50,00050,000ROC Storage 1 27236604 160,000160,000ROC Turf Replacement (w/turf tiles)1 27246603 20,00010,000 10,000ROC Roof Assessment 1 50224101 185,000185,000Street Light Annual Replacement (2022)1 50224111 360,000360,000Street Light Replacement, SSD1b 1 50224201 150,000150,000Replace Bus Shelters, SSDs 1-4 1 50224402 55,00055,000Edge Mill & Overlay: Wooddale (In-House)1 50234101 190,000190,000Street Light Annual Replacement (2023)1 50244101 195,000195,000Street Light Annual Replacement (2024)1 50244110 320,000320,000Street Light Replacement, SSD2a 1 50254101 200,000200,000Street Light Annual Replacement (2025)1 50254110 280,000280,000Street Light Replacement, SSD2b 1 50264101 205,000205,000Street Light Annual Replacement (2026)3 50264102 750,000750,000Replace Street Light Bases/Wiring; Shelard Park 3 50264110 250,000250,000Street Light Replacement, SSD3a 1 53225001 80,00080,000Water Well Rehab (SLP11)3 53235001 45,00045,000Water Well Rehab (SLP10)3 53235002 140,000140,000WTP8 Roof Replacement 1 53235003 70,00070,000GAC Replacement (WTP1)1 53245001 55,00055,000Water Well Rehab (SLP16)3 53245002 520,000520,000Water Treatment Plant Rehab, WTP1 1 53245003 50,00050,000Water Well Rehab (SLP8)3 53255001 85,00085,000Water Well Rehab (SLP12)3 53255003 74,00074,000GAC Replacement (WTP1)1 53255004 460,000460,000Water Treatment Plant Rehab, WTP6 1 53265002 55,00055,000Water Well Rehab (SLP4)3 53265003 45,00045,000Water Well Rehab (SLP15)3 53265004 400,000400,000Water Treatment Plant Rehab, WTP8 1 E - XX01 10,142,5571,937,605 2,340,559 1,800,941 1,714,914 2,348,538Annual Equipment Replacement Program 1 24,586,0574,488,105 4,603,559 4,231,941 4,072,914 7,189,538Operations & Recreation Total Police 13995069 150,000150,000911 Server Replacement 1 20180001 10,00010,000SWAT Rifle replacement 1 20180002 24,00024,000SWAT Robot 3 20180003 7,0007,000SWAT Ballistic Shields 1 20210001 54,00054,000Dispatch Consollettes 1 60990001 41,00011,500 29,500Laser/Radar and Message Board 3 286,00011,500 186,500 34,000 54,000Police Total Technology 13125001 25,00025,000IR: PCI Re-Assessment / Training / Security 1 13135001 500,000100,000 100,000 100,000 100,000 100,000IR: Hosted / Managed Services / DR / BC 1 13135004 20,00020,000OR: AVL / GPS 3 Wednesday, October 6, 2021Page 52021-2030 Capital Improvement Plan Page 15 Study session meeting of October 11, 2021 (Item No. 1) Title: 2022 Capital Improvement Plan, utility rates, and proposed budget Total2022 2023 2024 2025 2026DepartmentProject # Priority 13145010 400,000400,000Police: New CAD/RMS/Mobile Suite 3 13155006 200,00040,000 40,000 40,000 40,000 40,000Admin Serv:Document Mgmt System Maintenance 1 13155007 110,00022,000 22,000 22,000 22,000 22,000IR: MyStLouisPark CRM 3 13155008 150,000150,000IR: City Hall Council Chambers AV Upgrade 3 13155016 26,00026,000Eng: Survey GPS 1 13155020 50,00010,000 10,000 10,000 10,000 10,000Police: Zuercher Crime View Dashboard 3 13165007 28,00016,000 4,000 4,000 4,000Admin Serv: HR Time Management System 3 13165009 110,00022,000 22,000 22,000 22,000 22,000B&E / Fire / CD: Project Dox 1 13175004 18,00018,000Eng: Trimble R2 GPS Receiver 1 13175006 30,00030,000IR: Wireless Controller Replacement / Expansion 1 13185001 300,000300,000Admin Serv: ERP-Financial/HR/Payroll App (with UB)3 13185002 55,00011,000 11,000 11,000 11,000 11,000Fire: Zuercher Field Ops Mobile Solution 3 13185003 15,00015,000Fire: Station Cameras / EOC in 2025 3 13185009 20,00020,000IR: Network Equipment Battery (UPS) Backup 1 13195001 200,000200,000Admin Serv: Utility Billing App (with ERP)3 13195073 36,00012,000 6,000 6,000 6,000 6,000IR: Lidar (one-time) / ESRI GIS Hub 3 13215002 40,0008,000 8,000 8,000 8,000 8,000Admin Serv: NeoGov E-Documents Verification 3 13215003 12,00012,000OR: Trimble R2 GPS Receivers (2)1 13225019 10,00010,000OR: Nature Center Surveillance Cameras,Parking Lot 3 13995001 1,625,000325,000 325,000 325,000 325,000 325,000IR: On-going Software Licenses, Mtce, Development 1 13995002 625,000125,000 125,000 125,000 125,000 125,000IR: On-going Network Adds & Replacement 1 13995003 815,000235,000 120,000 120,000 120,000 220,000IR: On-going Hardware Adds & Replacement 1 13995004 567,000287,000 100,000 180,000Police: 800 MHz Mobile Police Radios 1 13995006 365,000145,000 25,000 25,000 145,000 25,000Police: Squad Computers / Printers / Cell Service 1 13995007 80,00080,000Fire / Police: Dispatch Voice Recorders 1 13995011 253,00049,000 51,000 51,000 51,000 51,000OR: Asset Mgmt Software (CarteGraph)3 13995013 30,00015,000 15,000IR: EOC Computer / Phone Equipment Replacement 3 13995015 1,481,534278,225 279,182 293,141 307,798 323,188IR: Tablet / Smartphone Hardware and Services 1 13995017 125,00025,000 25,000 25,000 25,000 25,000Admin Serv - Hubble Budgeting Annual Maintenance 1 13995021 25,00025,000Police: Jail Cameras (17)1 13995022 20,00020,000Police: Non-Jail Cameras 1 13995024 55,00055,000Police: Dispatch Camera Viewing Workstations 1 13995025 80,00050,000 30,000OR: Rec Center / ROC / Lot Camera Replacements 1 13995026 85,00017,000 17,000 17,000 17,000 17,000IR: Surveillance Camera and S2 Locks Maintenance 3 13995029 34,0006,800 6,800 6,800 6,800 6,800IR: Central City Hall Plotter (Lease)1 13995031 25,00025,000OR: MSC Cameras 3 13995035 60,00060,000IR: Telephone Handset / Handless Upgrades 3 13995036 35,8005,700 13,000 5,700 5,700 5,700IR: Remote Building Large Scanner / Plotter 3 13995037 60,00060,000Fire: Stations A/V and EOC Presentation Equipment 3 13995040 6,5006,500Police: Interview Room Cameras 1 13995041 20,00010,000 10,000IR: Wireless Hotspot Additions / Replacements 3 13995042 183,40333,191 34,851 36,594 38,423 40,344Police: Zuercher CAD Module Annual Fees 1 13995043 120,000120,000Police: Roll Call / EOC AV Equipment Replacement 3 13995052 30,00030,000OR: Oak Hill Camera/Security/Wi-Fi Replacements 3 13995053 23,00011,000 12,000OR: Park Shelter (Smaller) Camera Replacements 3 13995054 5,0005,000OR: Wolfe Park / Amphitheatre / Pool Wi-Fi Replace 3 13995056 42,5008,500 8,500 8,500 8,500 8,500Police: Field Ops Interface 1 13995057 35,00035,000IR: UHL Camera Servers Replacement - City Hall 1 13995058 75,00015,000 15,000 15,000 15,000 15,000IR: Adobe Software Products Licensing 1 13995060 30,00030,000OR: Birchwood Cameras / S2 Security 3 13995061 15,00015,000OR: Wolfe Park Pavilion S2 / Amphitheatre Cameras 3 13995064 65,00065,000OR: Rec Banquet Room & Gallery A/V System Replace.1 13995065 350,00070,000 70,000 70,000 70,000 70,000IR: Fiber Locates / Field Data Collection 1 13995066 175,00033,000 34,000 35,000 36,000 37,000IR: Fiber Asset Management 1 13995067 625,000117,500 117,500 130,000 130,000 130,000Police: Body and Squad Dash Cameras/Video Storage 3 13995068 70,00014,000 14,000 14,000 14,000 14,000Admin Serv: Tungsten Elec Accounts Payable 3 13995070 70,00035,000 15,000 20,000OR: Rec POS Stations 3 Wednesday, October 6, 2021Page 62021-2030 Capital Improvement Plan Page 16 Study session meeting of October 11, 2021 (Item No. 1) Title: 2022 Capital Improvement Plan, utility rates, and proposed budget Total2022 2023 2024 2025 2026DepartmentProject # Priority 13995071 125,00025,000 25,000 25,000 25,000 25,000IR: Fiber Network Modifications / Repairs 1 13995072 8,0008,000Police: East / North Side Camera Replacements 3 10,874,7371,914,916 2,287,833 2,084,235 2,158,221 2,429,532Technology Total GRAND TOTAL 140,822,63634,019,847 32,460,071 30,321,448 21,161,835 22,859,435 Report criteria: Active Projects All Address data All Categories All Departments All Contacts All From Street data All Priority Levels All Projects All Source Types All Street Name data Wednesday, October 6, 2021Page 72021-2030 Capital Improvement Plan Page 17 Study session meeting of October 11, 2021 (Item No. 1) Title: 2022 Capital Improvement Plan, utility rates, and proposed budget Meeting: Study session Meeting date: October 11, 2021 Discussion item: 2 Executive summary Title: Anti-idling research and recommendations Recommended action: No action required. This topic has been placed on the agenda to begin a conversation around anti-idling policy recommendations. Policy consideration: Does the city council wish to take action to limit vehicle idling in St. Louis Park? What policy tools would the council like to use to take action? Summary: Idling refers to running a vehicle’s engine when the vehicle is not in motion. Idling has numerous negative impacts, including air pollution, carbon emissions, and a heightened risk of vehicle theft. Staff has been working with the Environment and Sustainability Commission (ESC) to draft options for reducing idling in St. Louis Park and has prepared a report detailing these options for council consideration. These include regulation through ordinance, resolution statement, internal fleet policy, and a public education campaign. Each option is described along with some of the advantages and disadvantages of each. The ESC and staff are recommending that council consider option 1 and/or 2. Financial or budget considerations: None at this time. Strategic priority consideration: St. Louis Park is committed to continue to lead in environmental stewardship. Supporting documents: Discussion Prepared by: Emily Ziring, sustainability manager Reviewed by: Brian Hoffman, director of building and energy Approved by: Kim Keller, city manager Study session meeting of October 11, 2021 (Item No. 2) Page 2 Title: Anti-idling research and recommendations Discussion Background: Idling refers to running a vehicle’s engine when the vehicle is not in motion (for the purposes of this report, a “vehicle” is one with an internal combustion engine that burns gasoline, gasoline-ethanol, diesel, biodiesel, natural gas or propane; while battery electric vehicles will drain their batteries while idling, they have no tailpipe emissions and therefore may be a lesser concern). Idling can be both discretionary (providing heat and air conditioning for the driver, talking on a cell phone in a parking lot, waiting to pick up a passenger, sitting in a drive-thru line or while waiting for a curbside order) and non-discretionary (stopped in heavy traffic or waiting for a traffic signal, powering on-board devices and equipment, inspection and maintenance, emergency and public safety). Misinformation likely contributes significantly to idling as well, with many drivers believing that the things they learned about cars from past generations, like engines needing to warm up in the winter (no longer true since electronic injection systems replaced carburetors), still apply to modern vehicles. Idling has numerous negative impacts: •Adverse effects on public health: Idling can produce more tailpipe emissions per minute than driving. Studies have linked various types of vehicle emissions to asthma symptoms, cardiopulmonary disease, lung cancer and other causes of death. Children are even more vulnerable to air pollution than adults because they breathe much more air per pound of body weight and their respiratory defenses are not fully developed (source: Mid-America Regional Council), which makes idling outside schools—one of the most common idling scenarios as parents wait to pick up children—especially dangerous. Vehicle exhaust has also been linked to brain cell damage. Drivers are likely unaware that the catalytic converter, which reduces tailpipe emissions, reaches operating temperatures much sooner when driving than when idling. •Carbon emissions: Eliminating 16 minutes of discretionary idling per day would result in a savings of 704 pounds of CO2 for a typical four-cylinder passenger vehicle (source: Sustainable America). Assuming 40,000 passenger vehicles are registered in St. Louis Park, this equates to 13,000 tons CO2 per year that could be eliminated, or the equivalent CO2 of 1,500 homes’ energy use for one year. Most mid-size and larger SUVs and trucks are equipped with six-cylinder engines, so the total amount of carbon emitted is likely even greater. Transportation makes up 39% of total greenhouse gas emissions in St. Louis Park and is the largest source of greenhouse gas emissions in Minnesota. •Heightened risk of vehicle theft: In 2019, St. Louis Park experienced 93 auto thefts. Fifty- four percent of those vehicles were idling or had the keys left in them. Auto thefts in 2020 rose to 165, with 47 percent of those found idling. Auto theft rises about 25% in the winter due to vehicles being left unattended to warm up with the keys in the ignition--“puffer” thieves look for the telltale white puffs that emanate from a car’s exhaust on a cold day when searching for targets. Many people are unaware that driving helps the engine reach its ideal operating temperature faster than idling it. •Wasting money: Vehicles get 0 MPG while idling. A typical four-cylinder passenger vehicle wastes 32 gallons of fuel annually through discretionary idling (source: Sustainable America), at a cost of $75-100. Idling while waiting consumes more fuel and is much less efficient than turning the engine off and on again, despite many people believing the opposite. Study session meeting of October 11, 2021 (Item No. 2) Page 3 Title: Anti-idling research and recommendations • Vehicle wear-and-tear: Vehicle manufacturers advise that idling for longer than 30-60 seconds can actually be damaging to an engine. Idling can produce sulfuric acid, which can eat away at a vehicle’s engine and other components. Additionally, idling results in lower combustion temperatures, which can produce additional soot and creates buildup in the engine (source: US Department of Energy). • Noise: An idling vehicle contributes to noise pollution, which can affect hearing and stress levels. In February 2020, concerned residents and Councilmember Kraft attended an Environment and Sustainability Commission meeting to ask the ESC about researching anti-idling tools and presenting recommendations for ways to limit idling to council. The research was tabled for a year due to COVID-19. At the March 9, 2021 council study session, Councilmembers Kraft and Rog presented a study session topic proposal on Vehicle Idling, which included a request for staff and the ESC to work on the issue jointly. Staff presented on the topic at the April and May ESC meetings, and the ESC expressed support for reducing idling in St. Louis Park through a few different means. Present considerations: Public agencies across the country have employed a variety of tools in an effort to limit vehicle idling. This report attempts to summarize options that the city council may choose to pursue individually or in combination, noting the options that the ESC has endorsed. Option 1: Anti-idling policy for city fleet vehicles This option is endorsed by the ESC. Description: Create a standalone anti-idling policy for city staff who use fleet vehicles to include more specific rules around idling of gas and diesel-fueled vehicles than the language in the City Vehicle Usage policy (written in 2013) (“Vehicles must be off when the vehicle is unattended. Exceptions are vehicles that require the strobe/hazard lights to be on or the use of inverters.”). Examples: Unknown, but likely that many public agencies have internal policies (could base specifics off the Minneapolis ordinance) Advantages: • Limiting idling is good for air quality and carbon reduction • Improves respiratory health of city staff and customers • Fuel and money savings for city operations • Opportunity to educate fleet users about idling • Can place reminder decals inside vehicles • Can motivate compliance with rewards for fuel efficiency improvements • Leading by example Disadvantages: • Unclear how prevalent this is given high compliance with existing policy—may require a lot of effort for little additional benefit • Vehicles are shared, meaning that specific employees are not tied to specific vehicles and any fuel efficiency data would have to be analyzed at a fleet-wide level • Public safety vehicles, emergency vehicles, and many public works, parks and city maintenance vehicles must be idled to maintain power to on-board devices and equipment, meaning policy would only apply to handful of fleet vehicles Study session meeting of October 11, 2021 (Item No. 2) Page 4 Title: Anti-idling research and recommendations Option 2: Educational campaign This option is endorsed by the ESC. Description: Use city communications tools (including, potentially, signage) to spread message throughout the city that idling is detrimental to public health and the environment. Examples: Common at schools, but no examples found from cities (beyond those that have ordinances in place, such as New York City) Advantages: • Limiting idling is good for air quality and carbon reduction • Improves respiratory health of drivers and passengers • Fuel and money savings for vehicle owners • Collateral materials already exist that could be leveraged • Campaign could both encourage individual participation in reducing greenhouse gas emissions and increase participation in other sustainability activities • Opportunity for events such as film screenings (“Idle Threat” documentary) • Could create targeted list of common discretionary idling locations and partner with those businesses, school district/Roots & Shoots and private schools to encourage participation in campaign • Could partner with local fleet owners to assist in spreading the message Disadvantages: • Difficult to educate vehicle owners who are not based in St. Louis Park • Not enforceable Option 3a: Anti-idling ordinance city-wide for all on-road gas and diesel-fueled vehicles Description: Restrict through regulation the number of minutes that passenger vehicles and heavy-duty trucks and buses are able to idle, with possible exceptions for public safety and emergency response vehicles; public works, parks and city maintenance vehicles; refrigerated delivery trucks; vehicle breakdowns; extreme temperatures; etc. Examples: Minneapolis, Saint Paul (remote starters exempt), Owatonna, St. Cloud (limited in geographic scope), Fargo Advantages: • Could reduce vehicle theft in scenarios where cars are left idling with keys/fobs in ignition • Limiting idling is good for air quality and carbon reduction • Fuel and money savings for vehicle owners • Opportunity to educate vehicle owners about idling • Leading by example Disadvantages: • Enforcement would be difficult and limited (Minneapolis’s ordinance is administered by their Health Department and it is unclear how many citations are written; Fargo’s ordinance is not enforced, per deputy police chief); calls would require immediate response • If enforcement is inconsistent, could frustrate residents and hurt sustainability message • Could have unintended consequences, e.g. being used by neighbors to harass one another or report visitors they find suspicious (at a recent Sierra Club presentation, a Study session meeting of October 11, 2021 (Item No. 2) Page 5 Title: Anti-idling research and recommendations local environmental justice trainer described a heated discussion at a Minneapolis Southside Green Zone meeting in which some community members said anti-idling policies felt like “vehicular stop-and-frisk”) • Could frustrate vehicle owners who have paid to install remote starters to warm up their vehicles, unless exempted—which could lead to confusion Other considerations: • Consider whether to prohibit all idling, or only idling when vehicle is unattended with keys/fob in the ignition • Consider whether to exempt vehicles on private property, including driveways and most parking lots, and whether there would be unintended consequences of doing so (i.e. vehicles moved from street to driveway to warm up) • Consider how to address drive-thrus, where idling is frequent and largely unavoidable • Consider whether to exempt electric vehicles and if so, which types (battery electric, plug-in hybrid electric, or hybrid electric) • Would working toward a coalition created to push for consistent anti-idling regulations (or using an existing coalition to push for the same) throughout the metro be more effective than policy enacted in a patchwork way? Option 3b: Anti-idling ordinance city-wide for commercial vehicles (i.e. heavy-duty trucks and buses) only Description: Restrict through regulation number of minutes that heavy-duty commercial vehicles are able to idle, with possible exceptions for non-road vehicles; public safety and emergency response vehicles; public works, parks and city maintenance vehicles; refrigerated delivery trucks; vehicle breakdowns; extreme temperatures; etc. Heavy-duty vehicles typically burn diesel and emit significantly more particulate matter and carbon than passenger vehicles. Examples: Minneapolis; idling of school buses state-wide must be “minimized” per Minnesota statute Advantages: • Limiting idling is good for air quality and carbon reduction • Fuel and money savings for truck and fleet owners • Opportunity to educate vehicle owners about idling • Leading by example Disadvantages: • Enforcement would be difficult and limited (Minneapolis’s ordinance is administered by their Health Department and it is unclear how many citations are written); calls would require immediate response • Could be confusing for drivers to understand what applies to them • Difficult to communicate to truck drivers and fleet owners based outside St. Louis Park Other considerations: • Unclear how prevalent this is (the city Fleet Manager noted that most if not all major freight and parcel companies delivering to the Municipal Service Center turn off trucks on arrival) • Consider whether to exempt vehicles on private property, including most parking lots and loading docks Study session meeting of October 11, 2021 (Item No. 2) Page 6 Title: Anti-idling research and recommendations Option 4: Anti-idling resolution statement Description: Adopt a resolution affirming support for clean air and improved health through encouraging limits on idling. Examples: Houston, New Jersey Advantages: • Opportunity to educate vehicle owners about idling • Leading by example • Could pinpoint “idle-free zones” throughout the city for signage, targeting areas with high levels of particulate matter or those where idling is common, such as curbside pick- up spots (assuming private property owners cooperate) Disadvantages: • Not enforceable • Could cause confusion for residents wanting to report perceived violations • May be difficult to establish “idle-free zones” with nearby businesses and residents Option 5: Anti-idling policy at city facilities Description: Create policy to ban all vehicle idling (including fleet vehicles and privately-owned vehicles) at all of the city’s major facilities and parks, with possible exceptions for public safety and emergency response vehicles; public works, parks and city maintenance vehicles; refrigerated delivery trucks; vehicle breakdowns; extreme temperatures; etc. Examples: Unknown Advantages: • Limiting idling is good for air quality and carbon reduction • Fuel and money savings for vehicle owners • Opportunity to educate vehicle owners about idling • Could create “idle-free zone” signage for city properties Disadvantages: • Unclear who could enforce or how • Could be confusing for drivers to understand policy that only applies on city property • Signage at all entrances and throughout parking lots needed for visitors • Consider whether to exempt electric vehicles and if so, which types (battery electric, plug-in hybrid electric, or hybrid electric) Next steps: Staff will work internally and/or with the city attorney to draft the necessary policy, campaign or code language to create the programs the council wishes to pursue (if any). This language, along with any financial considerations, will be presented at a future council study session for consideration. Meeting: Study session Meeting date: October 11, 2021 Discussion item: 3 Executive summary Title: Upcoming study session agenda Recommended action: The city council and city manager to set the agenda for the special study session scheduled for Oct. 18, 2021 and the regularly scheduled study session on Oct. 25, 2021. Policy consideration: Not applicable. Summary: This report summarizes the proposed agenda for the special study session scheduled for Oct. 18, 2021 and the regularly scheduled study session on Oct. 25, 2021. Financial or budget considerations: Not applicable. Strategic priority consideration: Not applicable. Supporting documents: Tentative agenda – Oct. 18 and Oct. 25, 2021 Prepared by: Debbie Fischer, administrative services office assistant Approved by: Kim Keller, city manager Study session meeting of October 11, 2021 (Item No. 3) Page 2 Title: Upcoming study session agenda Oct. 18, 2021. 5:30 p.m. Special study session – community room Tentative discussion items 1.Neighborhood and community sidewalk designation– Operations & recreation/engineering (40 minutes) Per council request, staff will discuss snow removal from community versus neighborhood sidewalks. Oct. 25, 2021. 6:30 p.m. Study session – community room Tentative discussion items 1.Upcoming study session agenda – administrative services (5 minutes) Communications/meeting check-in – administrative services (5 minutes) Time for communications between staff and council will be set aside on every study session agenda for the purposes of information sharing. Written reports 2.September monthly financial report 3.Beltline Station Development update 4.Sustainability Division update for Q4 2021 Meeting: Study session Meeting date: October 11, 2021 Written report: 4 Executive summary Title: Proposed amended and restated TIF Policy Recommended action: Does the EDA wish to update and revise its TIF Policy as proposed? Policy consideration: Does the EDA approve the proposed updates and revisions as reflected in the amended and restated TIF Policy? Summary: The EDA’s Tax Increment Financing (TIF) Policy was adopted Aug. 18, 1997 and subsequently modified to reflect the city’s Green Building and Inclusionary Housing policies. During the Jan. 11, 2021 study session pertaining to the annual TIF district management report, it was suggested that the TIF Policy be revisited to see where it may be in need of updating and revision. Staff reviewed the TIF Policy and has made numerous proposed updates, revisions and clarifications which reflect the city’s current Strategic Priorities, adopted policies, as well as current TIF application practices and procedures. Attached is a redline of the proposed amended and restated TIF Policy. Notable updates include: •Updated, enhanced, and expanded objectives for the use of TIF to reflect the city council’s strategic priorities and goals. •Proposed developments must meet the requirements of the city’s Green Building Policy, Inclusionary Housing Policy, and pending Diversity, Equity, and Inclusion Policy. The Diversity, Equity, and Inclusion Policy will be discussed at a separate council study session. •Requests for TIF assistance should not exceed 10% of a project’s Total Development Cost and should not exceed 15 years’ worth of tax increment generated by the project unless there are mitigating circumstances. •TIF will be provided primarily on a “pay-as-you-go” basis” for a stated number of years, up to a predetermined maximum amount. •The former “Report Card” in the TIF Policy has been replaced with a TIF Policy Compliance Table similar to the compliance tables provided in the planning application staff reports. The proposed amended and restated TIF Policy has been reviewed by the EDA’s financial consultant and legal counsel who recommend approval. The proposed revisions may be discussed at the Nov. 22 study session relative to the EDA’s management and use of TIF. If the proposed amended and restated TIF Policy is acceptable, it will be scheduled for subsequent EDA consideration and adoption. Financial or budget considerations: City staff time to implement, manage and monitor compliance of the TIF Policy as the number of developments subject to the policy continues to increase. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. St. Louis Park is committed to being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. Supporting documents: Red-lined amended and restated TIF Policy; How TIF Works: Basic Mechanics Prepared by: Greg Hunt, economic development manager Reviewed by: Karen Barton, community development director, EDA executive director Approved by: Kim Keller, city manager Tax Increment Financing (TIF) Policy Adopted August 18, 1997 Amended and Restated 2021 Study session meeting of October 11, 2021 (Item No. 4) Title: Proposed amended and restated TIF Policy Page 2 1 City of St. Louis Park Economic Development Authority Tax Increment Financing Policy For the purpose of this policy, the "city" shall primarily mean the St. Louis Park Economic Development Authority (EDA), which serves in conducting various economic development, housing and redevelopment programs and activities within the City of St. Louis Park. I.General policy The purpose of this policy is to establish the city's position relating to the use of Tax Increment Financing (TIF) for private development. This policy shall be used as a guide in processing and reviewing applications requesting tax increment assistance. The fundamental purpose of tax increment financing in St. Louis Park is to encourage desirable development and/or redevelopment that would not otherwise occur “but for” the assistance provided through TIF. The City of St. Louis Park Economic Development Authority shall consider TIF for projects developments that serve to accomplish the city’s goals for economic development and housing as they may change over time. The goals include facilitating projects developments that would result in the attraction, retention, and/or expansion of businesses, creation or retention of quality jobs (e.g., stable employment and/or attractive wages and benefits), remediation of contaminated properties, or development and renovation of market rate and affordable housing options in the city. At the time of any application for a Comprehensive Plan amendment, rezoning or site plan approval for a project, whichever occurs first, applicants must disclose that TIF will be requested. II.City EDA’s objectives for the use of TIF As a matter of adopted policy, the City of St. Louis Park Economic Development Authority will consider using TIF to assist private development projects proposed developments to achieve over half of the following purposes, as applicable: •Foster racial equity, diversity, and inclusion economically and in the community. •Encourage development incorporating green building components and processes that help achieve the city’s Climate Action Plan goals. Study session meeting of October 11, 2021 (Item No. 4) Title: Proposed amended and restated TIF Policy Page 3 2 •Remove blight, contamination, and/or encourage redevelopment in the commercial and industrial areas of the city in order to encourage high quality development and revitalization. •Enhance the overall livability and economic vitality of the community. •Retain and expand the city’s businesses as well as attract new, complementary investment and employment. •Retain local jobs and/or increase the number and diversity of quality jobs (e.g., stable employment and/or living wages and benefits). •Provide public amenities, improvements and/or placemaking features which benefit a larger area than the subject development site. •Encourage additional unsubsidized private development in the area, either directly or as a catalyst for secondary "spin-off" development. •Achieve any of the following housing-related goals: •to promote high quality housing for households with a variety of income levels, ages, and sizes in order to meet the city's goal of preserving and promoting economically diverse housing options in the community. •to provide a balanced, broad range and sustainable housing stock of both market rate and affordable housing stock to meet diverse needs maintain a diverse population and to provide housing for those who live or work in the city. •to promote neighborhood stabilization and revitalization by the removal of blight and the upgrading of existing housing stock. •to ensure all housing is safe and well maintained. •Offset increased costs of redevelopment (e.g., contaminated site clean-up, soil correction, lead and asbestos abatement, demolition), over and above the costs that a developer would incur in normally incurred in urban and suburban development. •Facilitate the development process and to achieve development on sites which would not be developed without this assistance. •Meet other uses of public policy, as adopted by the council from time to time, including promotion of quality human-scaled urban design, quality architecture, environmental stewardship, energy conservation, decreasing the capital and operating costs of local government, etc. Study session meeting of October 11, 2021 (Item No. 4) Title: Proposed amended and restated TIF Policy Page 4 3 •Encourage the application of Livable Communities, New Urbanism, Transit Oriented Development, and sustainable design principles to a development project so as to create compact, efficient mixed-use development, quality amenities (e.g., public art), and attractive, pedestrian and transit friendly development. III.Costs that qualify for tax increment financing assistance The EDA will primarily consider the following development costs eligible for reimbursement through tax increment financing, as permitted under State Statutes: •Land acquisition •Demolition •Project design fees including: utilities, landscape, architectural and engineering. •Site work including permits for site work, earthwork/excavation, soil correction, shoring, additional structural support systems such as pilings, and related architectural and engineering fees •Design and construction of utilities, stormwater systems, streets and roads, street/parking lot paving, curb and gutter, sidewalks, lighting, and landscaping •Special assessments •Legal fees (acquisition, finance, closing) •Soil tests •Environmental studies and remediation •Surveys •Park and open space dedication fees •Interest rate write downs •Replacement or clean-up of contaminated soils which would otherwise preclude redevelopment •Parking structures •Construction of affordable housing •Rehabilitation of commercial and industrial buildings and multi-family housing facilities •Relocation assistance •Any Other costs allowable by Statute IV.Projects that may qualify for tax increment financing assistance All new TIF projects proposed developments considered by the City of St. Louis Park Economic Development Authority must meet each of the following minimum qualifications and will also be evaluated based on their ability to meet the desired qualifications for assistance. However, it should not be presumed that a project development meeting any of the qualifications will automatically be approved. Meeting the qualifications creates no contractual rights on the part of any potential developer to have its project approved. Study session meeting of October 11, 2021 (Item No. 4) Title: Proposed amended and restated TIF Policy Page 5 4 Minimum qualifications The project development should meet one or more than half of the Tax Increment Financing Objectives outlined in Section 2, but at a minimum shall: A.The project must be consistent with the City's Comprehensive Plan and Zoning Ordinances or required changes to the plan and ordinances must be under active consideration by the City at the time of final TIF application submittal. Be consistent with the city's Strategic Priorities, Comprehensive Plan, Zoning, and other ordinances effective at the time of final TIF application submittal. The project shall also be consistent with any changes to the plan and ordinances under active consideration by the City at the time of final TIF application submittal and adopted during the period of negotiation of TIF assistance. B.Meet requirements of the city’s Green Building, Inclusionary Housing, and Diversity, Equity, and Inclusion Policies (as applicable). C. Remove contamination, blight, poor soils, and/or encourage redevelopment in the commercial and industrial areas of the city in order to encourage high quality development or redevelopment and private reinvestment in those areas. D.To fFacilitate the development process and to achieve desired development on sites which would not be developed without this assistance. E.Demonstrate to the satisfaction of the EDA’s financial and legal consultants that the project development is not financially feasible "but-for" the use of tax increment financing. F.Prior to approval of a TIF financing plan, the developer shall provide any requested market and financial feasibility studies, appraisals, soil boring, private lender commitment, and/or other information the City or its financial consultants may require in order to proceed with an independent underwriting of the proposal. G.The developer must provide adequate financial guarantees to ensure the repayment of the TIF loan and completion of the project development. These may include, but are not limited to: assessment agreements, letters of credit, personal deficiency guarantees, guaranteed maximum cost contract, etc. H.Any developer requesting TIF assistance should be able to demonstrate past successful general development capability as well as specific capability in the type and size of development proposed. TIF will not be used when the developer's credentials, in the sole judgment of the city, are inadequate due to past track record relating to Study session meeting of October 11, 2021 (Item No. 4) Title: Proposed amended and restated TIF Policy Page 6 5 completion of projects, general reputation and/or bankruptcy, or other problems or issues considered relevant by the city. I.The developer should retain ownership of the project development at least long enough to complete it, to stabilize its occupancy, to establish the project development management, and to initiate repayment of the TIF loan. Desired qualifications A.TIF proposals Developments creating a higher ratio of property taxes paid before and after redevelopment will receive priority consideration. Given the different assessment circumstances in the city, this ratio will vary widely. A 1:2 ratio of property taxes paid before and after redevelopment is desired. B.TIF proposals should normally not be used to support speculative industrial, commercial, or office development; however, any such speculative developments will be considered on a case-by-case basis. In general, the developer should be able to provide market data, tenant letters of commitment or finance statements which support the market potential/demand for the proposed project. C.Requests for TIF assistance should not exceed 10% of a project’s Total Development Cost and should not exceed 15 years’ worth of tax increment generated by the project unless there are mitigating circumstances in accordance with this policy which require these parameters to be exceeded. D.The proposed amount of TIF assistance or term of the TIF Note should be within range of similar developments which previously received TIF assistance. E.TIF will normally not be used in provided to a project development that involves an excessive land and/or property price i.e., where the acquisition price exceeds the property’s market value by more than 20% as determined by an independent appraisal of the property. F.TIF will not be used in project provided to developments that would give a significant competitive financial advantage over similar projects in the area due to the use of tax increment subsidies. Developers should provide information to support that TIF assistance will not create such a competitive advantage. Priority consideration will be given to projects that fill an unmet market need. A.TIF will be provided on a pay-as-you-go-basis. Any request for upfront assistance will be evaluated on its own merit in accordance with the City's general financing policies. Projects requesting pay-as-you-go financing will receive priority consideration. See Section V below Study session meeting of October 11, 2021 (Item No. 4) Title: Proposed amended and restated TIF Policy Page 7 6 G.TIF will normally not be used considered for project developments that would generate significant environmental problems in the opinion of the local, state, or federal governments. Priority will be given to project developments that aim to clean-up existing contaminated sites and would facilitate the location of business or industry that has an environmentally sound track-record. H.Preference will be given to project developments that meet good public policy criteria as determined by the EDA and city council, including: •High project quality (e.g., sound architectural design, quality construction and materials). •Projects that complement and provide significant improvement to surrounding land uses, the neighborhood, and/or the city. •Projects that provide a significant increase in tax base. •Projects that provide new, or retained, employment (if applicable). •Projects that exceed the city’s Inclusionary Housing policy, if applicable. •Projects that further diversity, equity, and inclusion economically and in the community. •Projects that meet financial feasibility criteria established by the city. •Projects that provide optimal the highest and best desired use for the property. •Projects consistent with Livable Communities, New Urbanism, transit-oriented development, and sustainable design principles. •Projects that complement and/or add value to neighborhood by providing public elements (if applicable). •Projects that stimulate further investment in surrounding neighborhood. •Projects that will generally have a positive community impact. I.TIF will not be used to support project developments that are likely to place extraordinary demands on city services. V.Form of assistance Tax increment financing will generally be provided on a “pay-as-you-go” basis wherein the EDA reimburses the applicant for eligible project costs for a stated number of years, up to a predetermined maximum amount. The EDA will have the option to issue a TIF Note with or without interest, where the principal amount of the TIF Note is equal to the amount of eligible project costs incurred and proven by the developer. In all cases, semi-annual TIF payments will be based on available increment generated from the project. TIF payments will be made after collection of property taxes. Any request for upfront assistance will be evaluated on its own merit in accordance with the city's general financing policies. Projects Developments requesting pay-as-you-go financing will receive priority consideration. Study session meeting of October 11, 2021 (Item No. 4) Title: Proposed amended and restated TIF Policy Page 8 7 VI. TAX INCREMENT PROJECT EVALUATION PROCESS Evaluation process for all tax increment financing applications The following five methods of analysis for all TIF proposals will be used: 1. Consideration of project meeting minimum qualifications. 2. Consideration of project meeting desired qualifications. 3. Project meets "but-for" analysis and statutory qualifications (Exhibit A). 4. Project Report Card (Exhibit B) 5. Project is deemed consistent with Vision St. Louis Park and City Strategic Plan The following four methods of analysis, as reflected in the TIF Policy Compliance Table attached as Exhibit B, will be used for all TIF applications: 1. Is the development consistent with the city’s Strategic Priorities, plans, ordinances, and policies? 2. Does the development meet or exceed minimum qualifications? 3. Does the development meet or exceed desired qualifications? 4. Does the development meet statutory qualifications and "but-for" analysis? Please note that the evaluation methodology is intended to provide a balanced review. Each area will be evaluated individually and collectively and in no case shall one area outweigh another in terms of importance to determining the level of TIF assistance. VII. Application for TIF assistance for all TIF districts AND PROJECT AREAS The tax increment financing program will be administered by the St. Louis Park EDA. The St. Louis Park EDA will require a non-refundable application fee in the amount of $3,000 for its processing of the application. The amount of the application fee will be determined from time to time by the EDA or city council. The application fee shall be paid to the EDA at the time a final TIF application is submitted. At the time a final TIF application is submitted, the applicant shall also make an initial deposit $20,000 with the EDA (depending on project size and complexity) to cover its attorney’s legal, financial, and other necessary consultant costs incurred as part of establishing or amending a TIF district, drafting and negotiating a development agreement, and conducting any fiscal analysis that may be required to meet the requirements of utilizing TIF. If additional expenses are incurred beyond the initial deposit $20,000, prior to the execution of a during the term of the redevelopment agreement, the EDA shall notify the applicant in writing and the applicant will be required to deposit additional funds upon notice. If the project development is approved and the applicant proceeds with the project it’s construction, the EDA shall reimburse the applicant any unused portion of the deposit as of the date of execution of the development agreement after issuance of the TIF Note. If the applicant Study session meeting of October 11, 2021 (Item No. 4) Title: Proposed amended and restated TIF Policy Page 9 8 does not proceed with the project development, the EDA shall reimburse the applicant for the unused portion of the deposit as of the date that the EDA is notified in writing that the applicant desires to withdraw its application. VIII. Application process and procedures The application process is a two-step process and must be completed in accordance with the TIF application procedures outlined in Exhibit A. The purpose of this approach is to give an applicant the opportunity to present a development proposal without expending a great deal of money and time in pursuing a development that may conflict with the city's goals and objectives. IX. Other policy issues Fiscal disparities It is the CityEDA’s general policy to have tax increment financing districts contribute to fiscal disparities in accordance with applicable State law. Tax revenues for fiscal disparities generated by the project will be the responsibility of properties inside the TIF district. In the event a project development cannot be completed as a result of this election, the city may re-evaluate the impact of this policy on the project within the framework of State statutes. Loss of government aid At any time, if the formation of a new TIF district or the use of an existing district to finance a project will subject the city to an LGA/HACA penalty or local contribution to a project, the transaction shall be structured so as to have the ultimate cost to the city minimized to the greatest extent permitted by law, so as to have the project bear the cost of the penalty or contribution. Public use of tax increment The EDA and City shall follow applicable state laws in terms of potential public improvement financing with TIF. It shall be the general policy of the EDA and City to identify public improvements at the time of adoption or amendment of the TIF Plan. PASSED AND DULY ADOPTED this 18th day of August, 1997 by the City of St. Louis Park/St. Louis Park EDA _____________________________ Mayor _____________________________ Study session meeting of October 11, 2021 (Item No. 4) Title: Proposed amended and restated TIF Policy Page 10 9 EDA President ATTEST: _________________________________ City Manager/EDA Executive Director Study session meeting of October 11, 2021 (Item No. 4) Title: Proposed amended and restated TIF Policy Page 11 10 ADDENDUM The TIF Policy shall be implemented and administered in accordance with the requirements set forth in adopted EDA and city policies including the following: •Green Building Policy adopted February 16, 2010, as updated September 16, 2014, and July 14, 2020, and as subsequently amended. •Inclusionary Housing Policy adopted June 1, 2015, as amended May 15, 2017, September 6, 2018, September 2019, and July 2021 and as subsequently amended. •Diversity, Equity, and Inclusion Policy (adoption pending) as finally adopted and as subsequently amended. Study session meeting of October 11, 2021 (Item No. 4) Title: Proposed amended and restated TIF Policy Page 12 11 Exhibit A Application procedures for tax increment financing assistance 1. Applicant must meet with city economic development and planning staff to discuss the scope of the project, consistency with city Strategic Priorities, etc., financial assistance being requested, time schedule, city policy requirements and other information as may be necessary before applying for tax increment assistance. 2. If the applicant plans to apply for tax increment assistance, the applicant must disclose that TIF will be requested at the time of any application for a Comprehensive Plan amendment, rezoning or site plan approval for a project, whichever occurs first. 3. Preliminary project plans requesting planning applications, and indication of need for TIF assistance shall be submitted/presented in a staff report at a city council/EDA study session for initial concept review and feedback. The applicant may make a formal presentation of the project if necessary or requested. If the council/EDA’s preliminary concept review is generally positive, and the EDA indicates that it is willing to consider a formal request for tax increment assistance then the applicant may file a formal application for TIF assistance. At the time of such application, the applicant is to submit the required application fee and initial escrow deposit to be placed in a separate account to cover the EDA’s financial and legal consulting fees associated with the application. 4. The application shall be reviewed by city staff and the EDA’s financial consultant in a timely manner. Once an appropriate amount of assistance is determined, staff shall prepare a report with its findings of compliance with applicable city policies along with its recommendation for TIF assistance. 5. The staff report shall be submitted/presented at a city council/EDA study session. If the council/EDA wishes to proceed and formally consider providing assistance to the proposed project, staff will be directed to undertake the following steps: - schedule a public hearing for the establishment of the appropriate TIF district type. - have a tax increment financing plan prepared. - prepare business terms for the provision of the agreed upon amount of tax increment. 6. The proposed business terms shall be submitted/presented in a staff report at a city council/EDA study session. If the terms are found to be generally acceptable and the EDA wishes to formally consider them, staff shall be directed to incorporate the terms into a redevelopment contract. Study session meeting of October 11, 2021 (Item No. 4) Title: Proposed amended and restated TIF Policy Page 13 12 7. If the proposed development requires the sale of EDA or city-owned property, the planning commission will need to make a formal finding that the proposed property sale is consistent with the city’s comprehensive plan. 8. A public hearing for the establishment of the proposed TIF district shall then be held in conjunction with formal consideration of the proposed TIF district and redevelopment contract. Study session meeting of October 11, 2021 (Item No. 4) Title: Proposed amended and restated TIF Policy Page 14 13 Exhibit B TIF Policy Compliance Table* Factor Requirement/Guideline Proposed Project Met? Applicable TIF District Redevelopment/Renewal & Renovation/ Housing/Economic Development Statutory TIF district requirements Redevelopment District (example) 70% site coverage, More than 50% of bldgs structurally substandard & are reasonably distributed Use of TIF Proposed costs are statutorily eligible for reimbursement through proposed TIF district. TIF Objectives TIF Policy requires projects to meet more than half of objectives for use of TIF. Minimum qualifications Applicable Strategic Priorities Meets or exceeds Green Building Policy requirements Meets or exceeds Inclusionary Housing Policy requirements (if applicable) Meets or exceeds Diversity, Equity, and Inclusion Policy Consistent with city's Comprehensive Plan and Zoning Ordinance, or approvals pending Removes contamination, blight and/or will not generate significant environmental problems Helps facilitate desired development that would not occur without assistance Developer provided necessary documentation to evaluate TIF need and proposed project Determined not financially feasible "but-for" the use of tax increment financing Developer has experience and capability to construct proposed project Developer plans to retain ownership of project long enough to stabilize occupancy (if applicable) Desired qualifications Incorporates Livable Communities, New Urbanism, TOD, Sustainable Design principles (i.e., mixed-use, urban design, human scale, walkable, public spaces, and sustainable design features). High quality development (sound architectural design, quality construction and materials) Complements and/or adds value to Study session meeting of October 11, 2021 (Item No. 4) Title: Proposed amended and restated TIF Policy Page 15 14 neighborhood by providing public elements or placemaking features (if applicable) Proposed development will likely stimulate further investment in surrounding area/neighborhood Provides new, or retained, employment (if applicable) The increase in market value of the property after redevelopment is more than 8 times the original market value Will have a positive community impact Will not place extraordinary demands on city services Land price for project site is within market range. Ratio of private to city investment (TIF and grants) is more than $5 to $1 The proposed amount of TIF assistance or term of the TIF Note is within range of similar developments which received TIF assistance. Proposed TIF assistance will be provided on a pay-as-you-go-basis. *This table may be amended from time to time to reflect changes to city policy and to provide additional clarity to applicants. Study session meeting of October 11, 2021 (Item No. 4) Title: Proposed amended and restated TIF Policy Page 16 Meeting: Study session Meeting date: October 11, 2021 Written report: 5 Executive summary Title: COVID-19 local business assistance update Recommended action: None. This report is for information purposes. Please contact staff with any questions. Policy consideration: None Summary: In response to the significant challenges local businesses faced during COVID-19 over the past year and a half, city staff worked on multiple fronts to assess local business needs and assist businesses address and mitigate the impacts of the pandemic. To that end, programs, partnerships, and resource networks were created to help support local small businesses as they navigated and adapted to the adverse impacts. The attached report is a summary of those collaborative efforts. Financial or budget considerations: Not applicable. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. St. Louis Park is committed to being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. Supporting documents: Discussion Prepared by: Julie Grove, community and economic development analyst Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Kim Keller, city manager Study session meeting of October 11, 2021 (Item No. 5) Page 2 Title: COVID-19 local business assistance update Discussion Present considerations: The following is an update on the city’s small business assistance activities and initiatives during the COVID -19 pandemic. St. Louis Park Small Business Relief Fund (two grant rounds) • Round 1 - In April 2020, the St. Louis Park EDA provided $224,000 in emergency assistance to local businesses. Given the urgent need for assistance, staff worked diligently to establish this emergency grant program in a matter of a few weeks. This included creating an easy-to-complete, on-line application; grant agreements; outreach program targeted at under-served small businesses; and setting up direct deposits to ensure dollars got to the businesses as quickly as possible. Forty-six (46) local small businesses received up to $5,000 in grants designed to help them sustain operations and endure the economic hardships posed by the pandemic. A total of 35 (76%) of the grants were provided to businesses owned or managed by women, veterans, or people of color or in the indigenous community (27 women, four veteran, 13 people of color or in the indigenous community). The grants were spread throughout the community. St. Louis Park was among the first metro communities to distribute financial assistance to its local businesses at the onset of the pandemic, and the first to provide the assistance in the form of a grant (as opposed to a loan). • Round 2 – In July 2020, the city partnered with Hennepin County’s Small Business Relief Fund program to provide additional emergency financial assistance to local businesses adversely impacted by COVID-19. Small businesses located in Hennepin County with up to 50 employees were eligible. Hennepin County provided $10 million in grants to businesses countywide. Approximately, $600,000 of the county funding was allocated to St. Louis Park businesses. The city’s EDA provided an additional $200,000 specifically for local businesses. In total, 40 St. Louis Park businesses were selected to receive county funds and an additional 15 were selected to receive EDA funds. Grant awards from the EDA ranged from $5,000 to $15,000 depending on the amounts requested. Of the local small businesses receiving assistance from the EDA, 10 (or 67 percent) were owned by women and/or individuals who identify as BIPOC (Black, Indigenous, and People of Color). The following are a few of the comments received from Round 2 grant recipients. Comments were provided by Hennepin County: • Since the onset of the pandemic, [business] has been substantially down. The funds helped stabilize my business, providing much needed funds to continue operating. • We could not pay rent and maintain full employment without this assistance. Thank you very much for your support and bolstering our business as we struggle to navigate the seemingly endless challenges inherent to our current state of affairs. It is meaningful and it is appreciated. • The grant paid past due rent payments, so my lease was not terminated. I am happy to be able to continue my business with the help of the grant. • These funds allowed us to come current on the rent and to stay in business. Without these funds it is very likely that we would have been forced to break our lease and close indefinitely. The city employees made the application process quite seamless and were very helpful. Study session meeting of October 11, 2021 (Item No. 5) Page 3 Title: COVID-19 local business assistance update • The funds gave us the breathing room to make sure we were able to pay our employees on time and not default on our bills. • We were closed in April and May, so the grant kept the store viable for reopening in June. We would not be open without this assistance. Thank you! • The grant enabled us to pay our rent and begin selling retail and service packages online. We are so grateful for this assistance. Marketing Assistance Program To help local small businesses pivot and enhance their on-line marketing and sales during the pandemic, the city created a website design and marketing assistance grant program in October 2020. Through this program the city covered the cost of up to $1,000 of new marketing services provided by selected St. Louis Park based marketing firms. Fifty (50) businesses utilized this grant program, and 13 local marketing firms provided the marketing services. A total of $50,000 was invested in this initiative. Temporary Tent Reimbursement Program In February 2021, the city launched a tent reimbursement program for specific business types affected by restrictions from state emergency executive orders (such as restaurants, breweries, distilleries, and fitness facilities). This reimbursement grant program reimbursed up to 50% of a business’ cost to rent or purchase an outdoor tent up to a maximum of $5,000. A total of $25,600 was utilized for this grant program. A total of six local businesses/non-profits utilized this program. Temporary outdoor customer service area permit A temporary outdoor customer service area application was created to assist St. Louis Park businesses reopen during the COVID-19 outbreak. It was intended to allow requests for businesses to temporarily conduct business outside for things like outdoor seating, outdoor tents, igloos, etc. Nine outdoor permits were received. Businesses that were able to utilize this new permit included breweries, distilleries, fitness studies, and a few restaurants. Business outreach In the spring of 2020, city staff contacted its local businesses via phone calls and emails to gauge the economic impact of the pandemic and how businesses were responding to the challenges it presented. Staff reached out to over 2,500 local businesses, starting with the city’s small businesses. The general theme of the contacts was to “check-in” on the businesses to see how they were doing, let them know about the various resources available to them, answer questions, respond to concerns, and see how the city could be of further assistance. Through those calls staff has developed ongoing relationships with some local businesses and has created an email list that is now used to provide continual updates/information to local businesses. COVID website/Social Media In an effort to keep local businesses and community members informed of the rapidly changing COVID-19- related technical and financial assistance programs available to them, staff continually monitored local, state, and federal resources to ensure that the most current and up to date information was provided on the city’s website and posted on social media. Often times, grant and loan programs had very short application windows, so it was critical to keep up to date and push out the information as quickly as possible, including through direct phone calls and emails. Study session meeting of October 11, 2021 (Item No. 5) Page 4 Title: COVID-19 local business assistance update Loan deferrals With EDA consent, lenders participating in the EDA’s Revolving Loan Fund and 2% loan programs provided loan deferrals to borrowers on an as-needed-basis to provide financial relief during the outbreak. Typically, such deferrals were for six months. Winter Postcard Knowing that winter 2020/21 was going to present some unique challenges to local businesses as they continued operating during COVID, the city distributed postcards to businesses with ideas and information to help them adapt their customer experiences during the winter season. Small Business Liaison The city's small business liaison, Julie Grove, was an invaluable resource to the city’s local businesses during the pandemic. She continually monitored available resources, ensured information was distributed to the businesses in a timely fashion via emails, phone calls, social media contact, and website updates. Julie continues to be a resource to local business and prospective entrepreneurs in need of technical or financial assistance. The support includes connecting businesses with available services and financing programs, answering policy or program questions, assistance with city permits, helping find available properties, providing contact information, communicating new program information, and listening to business concerns. Open to Business Program The city’s Open to Business program in conjunction with the Metropolitan Consortium of Community Developers (MCCD) continued offering free, one-on-one, confidential business consulting during COVID. The program’s business advisors helped local small businesses and entrepreneurs with technical assistance and financing needs to navigate and survive the impacts from the pandemic. During 2020, MCCD staff met with 19 local clients and provided 108 hours of service in the city. Of the clients served, 63% were women, 31% were low income, and 37% were black, Indigenous, and other persons of color. A total of $103,000 in loans were also provided to local businesses. Additionally, MCCD facilitated grant applications for the DEED Small Busines Emergency Loan grant for two salon clients. The total funding awarded was $60,000. Furthermore, two microloans were provided to a Mexican restaurant and music studio. Each loan was under $5,000. In the first half of 2021, MCCD staff provided 56.5 hours of technical assistance to seven local businesses/residents. Assistance was provided for early stage start up assistance, business plan review, website development, pre-financing assistance, PPP assistance and forgiveness, loan facilitation, existing loan maintenance and existing client TA, bookkeeping assistance, general assistance around lease terms, pricing, and contract negotiation, strategic planning, marketing campaigns. MCCD was the co-administrator and funding agent for the Hennepin County federal CARES Act Funding for the first two rounds of funding in 2020 including the Hennepin County Small Business Relief Fund, and the Hennepin County Self-Employed Entrepreneur Fund. MCCD administered or disbursed over 1,250 grants to business owners in Hennepin County accounting for $10,200,000 Study session meeting of October 11, 2021 (Item No. 5) Page 5 Title: COVID-19 local business assistance update in aggregate grant funding for these programs. A total of 19 grants were disbursed to St. Louis Park businesses resulting in $120,200 in total grant funding in these programs. Additional partnerships led by other agencies benefitting local businesses include: Business District Recovery Program – marketing In an effort to support area businesses/districts through the economic impacts of COVID-19, Hennepin County created a Business District Recovery Marketing Program using $125,000 in funds from the federal CARES Act. In the fall of 2020, St. Louis Park worked with Hennepin County to select the Historic Walker Lake Business District for the program, which was one of only 11 businesses districts selected. Additionally, Hennepin County, through one of its consultants, developed the Love Local Initiative, a marketing campaign to encourage communities and local residents to support their local business districts safely through COVID-19. Promotional materials included social media ads, digital ads, print ads, website banners; as well as a guide to how to advertise on social media was provided to the business district. In addition to marketing support, the Love Local Initiative also includes coordinated public space improvements including wayfinding and artist-designed dome installations, to encourage COVID-19 safety and enhance overall shopping experience. Hennepin County small business relief funding As of March 15, 2021, Hennepin County provided more than 6,400 Small Business Relief grants totaling $69.4 million. The County held five application rounds through the Small Business Relief fund, including the partnership round with the St. Louis Park EDA. A total of 298 Hennepin County small business relief grants were provided directly to St. Louis Park small businesses. Of those, 37% were women owned businesses and .4% were identified as another gender identity, non-binary, non-conforming, or other. In addition, businesses identified as the following race, 0.4% American Indian/Native Alaskan, 9.6% Asian, 8.3% Black/African American, 5.3% Hispanic/LatinX, and 5.3% multi-racial. Elevate Business HC Staff have been working with Hennepin County on a new business initiative called Elevate Business HC. This program offers free advising and other resources to help businesses recover from the pandemic and build for future growth. Hennepin County has contracted with 25 professional business advisors, consultants, and service providers to offer advising and consulting services. City staff have provided information to local businesses about the program and have been working with Hennepin County to help business owners navigate and connect with providers that offer the services for which they are seeking. State/Federal Business Assistance Programs Main Street COVID Relief Grant: This past summer, funding for new business assistance programs was passed by the legislature. Utilizing these funds, the Minnesota Department of Employment and Economic Development (DEED) has begun to roll out new grant programs for businesses and non-profits. The most recent program is the Minnesota Main Street COVID Relief Grant. A total of $64,200,000 is available in grants for Minnesotan owned and operated businesses that can demonstrate financial hardship due to the COVID-19 pandemic. Businesses that are majority-owned by military veterans, women, and Black, Indigenous and people of color individuals; employ six Study session meeting of October 11, 2021 (Item No. 5) Page 6 Title: COVID-19 local business assistance update people or fewer; and/or did not receive previous assistance from other state relief programs will be prioritized in the selection process. Applicants that qualify and are selected will receive a grant amount between $10,000 and $25,000 based on the number of full-time equivalent (FTEs) employees on staff. Applications were accepted September 10-29, 2021. Information on this program has been shared with local businesses via email, social media, phone calls and is also available on the city’s website. COVID EIDL loans In September 2021, the SBA announced major enhancements to the COVID Economic Injury Disaster Loan (EIDL) program. These include increasing the EIDL cap from $500,000 to $2 million, implementation of a two-year deferred payment period, expansion of eligible use of funds to allow prepayment of commercial debt, and a simplification of requirements to ease the application process. Applications for EIDL loans will be accepted until December 31, 2021. Applications are located on the SBA website at sba.gov/eidl. Next steps: Staff will continue supporting and adapting resources for local business as they face the ongoing challenges created by the pandemic and Delta variant. Staff will also continue alerting local businesses of various additional technical and financial assistance programs as they become available. Please contact economic development staff with any questions.