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HomeMy WebLinkAbout2021/10/11 - ADMIN - Minutes - City Council - Study Session Official minutes City council study session St. Louis Park, Minnesota Oct. 11, 2021 The meeting convened at 6:30 p.m. Councilmembers present: Mayor Jake Spano, Tim Brausen, Lynette Dumalag, Rachel Harris, Larry Kraft, Nadia Mohamed, and Margaret Rog Councilmembers absent: none Staff present: City Manager (Ms. Keller), CIO (Mr. Pires), Interim Deputy City Manager/Director of Operations and Recreation (Ms. Walsh), Engineering Director (Ms. Heiser), CFO (Ms. Schmitt), Director of Community Development (Ms. Barton), Building and Engineering Director (Mr. Hoffman), Sustainability Manager (Ms. Ziring), Communications Manager (Ms. Smith) Guests: Members of the Environment and Sustainability Commission Mayor Spano acknowledged today is Indigenous Peoples Day and recognized these people and nations. 1. 2022 Capital Improvement Plan, utility rates and proposed budget Ms. Schmitt presented the report. Councilmember Harris asked if there was an extra $300,000 built into the budget for the EDA levy. Ms. Schmitt stated this changed with health insurance coming in at a lower cost . Councilmember Harris asked if the $300,000 is at 1%. Ms. Schmitt stated 1% is at about $350,000. Councilmember Rog asked for an update on the size of the ramp and the park and ride. Ms. Barton stated staff is now in negotiations with Met Council on sharing the park and ride . She stated the number of spaces is set and not flexible on reduction, but there is discussion about reducing the ramp by one floor. Councilmember Rog asked if $10 million is the city match . Ms. Barton stated no, adding there is no firm cost yet on the ramp, but the assumption is approximately $10-14 million and will be funded by the CMAP federal grant at $7 million, while the city will contribute $2.5 million, and the developer will also contribute some as well. Ms. Barton stated the developer is looking to start construction on the ramp in 2022 and the ramp must be delivered by the time SWLRT is in service. Councilmember Rog asked if this cost is included in the 2022 levy. Ms. Schmitt clarified the funding source shows up as TIF and is not in the levy. DocuSign Envelope ID: 32FC26F7-F4EF-4523-ACF4-69206F44BE4A Study session minutes -2- Oct. 11, 2021 Councilmember Rog asked about the Minnetonka Boulevard improvements. Ms. Heiser stated the costs listed is what the city is being asked to pay for engineering, signals, and the like . She stated the total project is around $12 million . Councilmember Rog asked about a new piece of playground equipment at Wolfe Park. Ms. Walsh stated all the playground equipment will be replaced at Wolfe Park, and that funding comes from the park improvement fund. Councilmember Rog asked about the rec center rubber flooring and the high cost of $300,000. Ms. Walsh stated this flooring is for when patrons at the ice are na are wearing skates and is in the arena and locker room. Ms. Walsh agreed it is expensive and pointed out costs in supplies and products are increasing. She noted this floor is changed out every 10-12 years. Councilmember Rog asked about rec center signage for $200,000. Ms. Walsh stated there was a sign on Beltline and Monterey, and that sign was taken down. This sign is changeable and can advertise events and change out information about activities. Councilmember Rog asked about rental fees at the Roc. Ms. Walsh stated the ice rental is $175- 185 and the turf is a $40-50 fee. Councilmember Rog asked if the city owns any bus shelters. Ms. Walsh stated some are in the special service district and when improvements or new shelters are needed, the city pays for those items in the special service district. These bus shelters will be replaced as the old ones are deteriorating and noted the costs have come down. Councilmember Brausen asked if any police or fire vehicles are being replaced. Ms. Schmitt stated it is a single line item for $1.9 million. Councilmember Dumalag asked if this is the total cost of equipment in the capital report . Ms. Schmitt stated that is correct and added there are multiple funding sources on a project, because it is split into different categories. She added staff can run the report both ways for council if that is more helpful. Councilmember Dumalag asked if cost of inflation is included. Ms. Heiser stated all projects included inflation projections at 3%. She noted 2022 is cost plus inflation costs. Councilmember Dumalag asked if the SWLRT costs are from the previous year or estimates and then projected for inflation. Ms. Heiser stated those costs are provided by SWLRT. Councilmember Dumalag asked about state law related to mental health. Ms. Keller stated there were some changes at the state around diverting mental health related 911 calls. To meet that mandate, training and staffing will be needed. She noted this is the dispatcher supervisor position included in the staff report. Councilmember Rog stated it is unclear if this is a state mandate or an optional component . Ms. Keller stated the diversion piece is a mandate, but she can get more clarity on that. DocuSign Envelope ID: 32FC26F7-F4EF-4523-ACF4-69206F44BE4A Study session minutes -3- Oct. 11, 2021 Councilmember Kraft stated the service numbers are impressive and thanked staff for all they do. He added it would be nice to see those numbers over time as well . He thanked staff for the levy information. Councilmember Kraft asked if in 2022 the levy will be shown as 5.58% or 6.9 to 7% which is the impact of the EDA levy added in. Ms. Schmitt stated the chart shows the large general levy and does not have the HRA or EDA added in. She stated she will check what other cities are doing, so as not to show the city’s increase as more than it is. Councilmember Kraft stated on the utility rates, he would like to see more encouragement of conservation, where low users pay less, and high users pay more. He has concerns that the rates at 4.5-6% are above the general rete of inflation, and will require justification as we can’t keep doing that forever because it will take more and more of people’s disposable income. Councilmember Kraft asked about the ramp and given that SWLRT service will be delayed one year or more, and the ramp does not have to be ready until then, is there any benefit to holding off on the ramp. Ms. Barton stated the developer needs the ramp for the project – the housing and the commercial – so once they are ready to go, it needs to move forward. Councilmember Kraft stated it is hard to digest the CIP document and asked if there is a way to present it in the future as a summary document or as reasons or themes, so it can be analyzed at a higher level, which would be helpful. Councilmember Mohamed asked about the projections on the median value apartments, and with the levy at 5.58% a resident would pay $80 per month. Ms. Schmitt stated that cost is for the full apartment building and not per unit. Councilmember Mohamed asked if the city is hiring for mental health positions. Ms. Keller stated the city currently partners with another city on this, but the goal is for St. Louis Park to have a full-time person in this capacity. She stated the dispatch service takes in the calls and the social worker follows up with referrals from police and fire . Councilmember Mohamed asked if the race equity position will be Mr. Gray’s role. Ms. Keller stated this will round out for full-time employment for 3 staff members. Mayor Spano asked for clarification if the mental health position is for the public and not for staff. He added a mental health position for staff should also be looked into further in the future. He added each year the city’s priorities need to be reassessed. He asked how much money flows through the city each year. Ms. Schmitt stated depending on construction, it is typically around $90 million. Mayor Spano thanked staff for their work on the budget and the report . Councilmember Rog asked if the city pays cash for the rubber floors. Ms. Walsh stated yes. Councilmember Rog pointed out the cost for the new rubber floors at the R OC are a 1%-point increase in the levy this year. She stated when the city invests in capital projects, and builds DocuSign Envelope ID: 32FC26F7-F4EF-4523-ACF4-69206F44BE4A Study session minutes -4- Oct. 11, 2021 new buildings, council needs to pay attention to the costs for maintaining those buildings going forward. Councilmember Rog added concerns about transparency include not hiding taxes or the full cost of living in St. Louis Park. She asked about staff vacancies and if there has been a cost savings this year. Ms. Schmitt stated the budget is calculated as if the city if fully staffed . She added at the end of the year, the fund balance discussion becomes important . Councilmember Rog noted she fully supports the police and pointed out the public safety costs are 45% of the general fund budget. She would like to continue to look at ways to shift things around and explore ways to reduce these costs without affecting public safety. She is concerned seeing another $50,000 added to public safety costs and would have preferred seeing ARPA funds being directed toward more creative mental health responses and projects. She added she would like to see more creative responses for dispatch to have for the very real mental health issues in the city and the number of calls received. Councilmember Rog asked if other councilmembers recalled the discussion of using ARPA funds for mental health expenses. Ms. Schmitt stated ARPA funds can be used for mental health programs, but the 2 positions for fire and police are all that was budgeted for the year. Councilmember Rog stated she supports the CIP presented with being thoughtful around maintenance costs. Councilmember Harris noted the rec center solar panels and energy savings over 12-14 years. She asked about the 45% overages and if those could be applied to these one-time costs. Ms. Schmitt stated one of the proposals that will be presented at the council meeting is the transfer of $500,000 into the capital replacement fund for those solar panels. Councilmember Harris stated this is a 2022 investment and asked if the money to pay for this already exists or does it have to be included in the levy. Ms. Schmitt stated there is no levy for that piece; the expenses are more than the levy in that fund, so the transfer and fund balance will be used for that. Councilmember Harris asked, related to class C apartments, about the purpose of using class C for the average. Ms. Schmitt stated the city has mostly class C apartments, versus A and B, so that is why it was used. Councilmember Harris asked for a review of how many apartments are in the city’s A, B and C classes. Councilmember Harris stated she has been advocating for a 4.5% levy but does understand the city’s basic minimum operating costs are a 3% increase annually and then capital costs and added positions make up the additional cost . Ms. Schmitt agreed that is correct. Councilmember Harris asked if staff could provide projections on future capi tal expenditures and then future projected levies. Ms. Schmitt stated long-range financial planning will be done in January, but staff can look at bringing information to council prior to that . Councilmember Harris stated that would be helpful information to convey to constituents as to the why. She pointed out in Ward 3 there are many students that receive free lunch . She is concerned about DocuSign Envelope ID: 32FC26F7-F4EF-4523-ACF4-69206F44BE4A Study session minutes -5- Oct. 11, 2021 being responsive to residents, the projections for 2023 and 2024, and if those projections would be higher, then she would be more inclined to go with the 5.8% levy. Councilmember Kraft noted the Eugene, or “Cahoots” program, as a potential model for the mental health program for St. Louis Park public safety. Councilmember Kraft referenced Councilmember Rog’s transparency comments, adding he agrees. He stated property taxes will be going up due to valuation in residential homes, which are going up in value more than commercial properties. He does support the proposed utility rate increases for 2022 and is comfortable with the 5.58% final levy, especially when looking at inflation and the projects currently going on within the city. Councilmember Dumalag asked if the equipment figures point to yearly purchases which are an operating budget, not a capital improvement budget. Mr. Pires stated these are licensed software annual maintenance fees. Councilmember Brausen stated he supports the 5.58% levy, the utility rate increases, and the new EDA and existing HRA levies. He noted the impacts on the median value apartments and commercial are driving the utility rates and stated the $18 per month increase for homeowners seems tolerable. He would like to see a chart broken out by 20 th percentiles, so the dollar impact is shown for high and low-end homes. He stated he worries about the fixation around the percent increase adding it is not an apples-to-apples comparison by city. He pointed out these additional positions are added services for the city and police and fire seem to be doing more every year, so the costs make sense. He stated he is supportive. Councilmember Rog noted she is still very interested in outcomes-based budgeting. She asked how adding the new positions will help with cost savings and outcomes. She stated the most impact the city can have around climate action is being a leader. She hopes the focus of climate investments can be on modeling leadership. She also added if the city can untangle itself from TIF a bit, this will impact future levies. Councilmember Rog stated she supports the utility rate increases, and added she understands the debt service on large projects. She added she still does have concerns on the public safety budget but will support the 5.58% levy but does not support the EDA levy, adding those should be part of the general levy. Councilmember Kraft stated he does not support the creation of the EDA levy either . He is supportive of the dollar amount, but not the way it is structured. Councilmember Harris stated she is not supportive of the 5.58% levy and would like to see it at 4.5%. She stated she supports the proposed utility rates . She noted a resident contacted her and she will forward his creative idea to staff about water conservation . She is in support of the HRA and EDA levies as proposed. Councilmember Mohamed stated she understands why this is the best option for the levy, but she does not agree with it. She likes the plan about mental health services and adding hours for DocuSign Envelope ID: 32FC26F7-F4EF-4523-ACF4-69206F44BE4A Study session minutes -6- Oct. 11, 2021 the racial equity position. She supports the CIP as presented but would appreciate some planning around the racial equity department, with council input. Councilmember Dumalag stated she agrees with the CIP as presented, the utility rate increases , and the 5.58% levy increase as well. She also stated it is important to express to residents what the levy pays for and is supportive of the additional positions which align with the city’s goals. Mayor Spano supports everything across the board, except for concerns around the EDA levy. Councilmembers Rog and Kraft would prefer the EDA levy be included in the general fund. They pointed out from the residents’ perspective, it is a 6.9% increase with the EDA levy. Mayor Spano stated in general he believes residents have been comfortable with the decisions council has made related to levies over the years. Ms. Schmitt stated there are so many ways to look at this. She stated it seems transparent to her, it can be done either way, but she is not certain what is the most transparent way to explain this to the public . Mayor Spano stated he understands all concerns but wants to make sure the best option is utilized to make the funds available. He added he sees TIF as an investment with public dollars that returns greater value money to the public down the road. He asked if staff is having discussions with the school district about their plans for the next few years, and if they might be doing a levy in the near future. Councilmember Rog again noted she would like the EDA levy funds to be included in the general fund, and just because the council votes on a levy amount does not mean it will stay that amount depending on what might come up. Councilmember Kraft agreed adding this is really a 6.9% increase but from the residents’ perspective this is not clear. He appreciates staff efforts, but noted council is talking about 5.58% when in reality it is 6.9%. He stated that some flexibility is lost in the EDA levy because the climate funds must be used for commercial purposes. He stated if it were in the general fund, there would be more flexibility, noting in the short term it may not be an issue, but it could be at some point. Councilmember Harris stated she had asked for the park improvement fund to be added to the general ledger so council could see all the funds and fund options, as well as presenting more transparency. Mayor Spano thanked staff for their work on the 2022 budget, stating it is a big undertaki ng each year. 2. Anti-idling research and recommendations Ms. Ziring introduced Holly Johnson, environment and sustainability commission member, and presented the report. Councilmember Mohamed asked what the commission does not recommend. Ms. Ziring stated the commission does not recommend an ordinance, a resolution, and a policy prohibiting idling at city facilities specifically. DocuSign Envelope ID: 32FC26F7-F4EF-4523-ACF4-69206F44BE4A Study session minutes -7- Oct. 11, 2021 Councilmember Mohamed agreed with this recommendation and noted there are policies in place around this already and asked if public safety would be subject to this. Ms. Ziring stated yes there would likely be exemptions for emergency vehicles, adding that would be policy decision by council. Councilmember Mohamed liked the idea of an education campaign around this, adding it is important to understand the implications involved . She stated a resolution would not do much as there is no action around it and as for enforcement, it would give some a tool to weaponize this, noting there are some racial equity implications involved. For education, she would suggest word of mouth messaging as well, which would go far, and be helpful for engagement . Councilmember Kraft asked about extending the policy to commercial vehicles or those with city contracts. He asked about thoughts on education. Mr. Ziring stated she is all for educating as many as possible and that idling reduction is a practice the city wants to reduce . Mr. Hoffman stated for people working for the city, there is some complication in that idling restrictions would need to be written into a contract. For contractors hired by a resident, those contractors idling would not be treated any differently than any other commercial vehicles, and since it cannot be controlled through permits, it would have to be done as a blanket resolution – which Ms. Ziring stated the ESC is not recommending. Councilmember Kraft asked if education could be done when permitting. Mr. Hoffman stated yes, this could be done via the website when applying for a permit. Councilmember Kraft stated he is in support of this and added the carbon emissions reduction potential was eye-opening to him. He added the idea of making this a regional approach might help change this into something more like a resolution. He would also like to partner with schools on this, especially with children and their parents who pick up at school and school buses that pick up. Ms. Ziring stated the youth member on the commission noted this program could be reinforced at the high school as well. Councilmember Rog thanked Ms. Ziring for the report . She appreciated the collaboration with staff and the ESC, and she supports the recommendations in the report and of the ESC. She noted involving youth in the idling effort with their parents could also be helpful, as Councilmember Kraft mentioned. Councilmember Rog stated she liked the idea of a coalition throughout the metro, and in terms of education for contractors, she noted a truck under the Dakota Avenue bridge during the construction project that idled all day long. She stated this would be a good example of where education would help. She liked the idea of “idle-free zones” adding this would have an impact. She noted the many children that wait for their buses along Highway 100 and that when thinking about racial equity goals, she would like to include a targeted focus on particular areas. DocuSign Envelope ID: 32FC26F7-F4EF-4523-ACF4-69206F44BE4A Study session minutes -8- Oct. 11, 2021 Councilmember Brausen stated he supports what the ESC is doing and the report but was hoping something more could be done. He stated the school district needs to be incorporated into this, especially for parents who wait for their children outside of school. He suggested signage be included at schools. Mayor Spano stated he is also supportive of staff recommendations. He suggested for education, that staff think creatively about how to do this. He stated it is helpful to have ads pop up on phones, and at gas stations, as well as postcards and social media . Councilmember Dumalag stated the information on car theft and emissions was staggering. She is in support of the recommendations and the education with school children would be helpful, similar to the targeted campaign for seatbelts in the 80s. She liked the creative ideas and appreciated the report. Councilmember Harris also appreciated the report and counterpoints included. She is also in support of the recommendations, and suggested ads on school buses if allowable. She stated that school bus emissions are less polluting than in the past because of clean diesel initiatives. She suggested staff check on that marketing to see what the city might do. Mr. Hoffman stated there is a local singer-songwriter who wrote a song about the climate crisis and doing something one step at a time to help. He noted the marketing campaign could mention doing one thing, one day at a time, can have a great impact. Ms. Ziring thanked council for their input and support for option 1 (Anti-idling policy for city fleet vehicles) and option 2 (Education campaign). 3. Upcoming study session agenda items Councilmember Kraft stated the climate urgency/emergency topic has significant interest now, especially with other cities. He noted a sample resolution has been developed for cities to use and webinars will be conducted later this month for implementation by the end of January 2022. He stated the goal is to have 10 cities do this, and this would fit into the council’s goal of St. Louis Park being a leader regionally. Ms. Keller stated that staff is continuing to discuss how to prioritize future agenda items while keeping strategic priorities in mind and will bring back this item to council later in November. Councilmember Harris asked if any further items on study session future agendas are on hold now. Mr. Keller stated staff is working on which items are ready to discuss and which will be held for the new approach. Councilmember Brausen noted revisiting the sidewalk shoveling topic. Mayor Spano noted the proposed amended and restated TIF policy report was helpful and he looks forward to the discussion. Ms. Keller stated the discussion date is scheduled for Nov. 8. Councilmember Dumalag stated she looks forward to the TIF discussion. DocuSign Envelope ID: 32FC26F7-F4EF-4523-ACF4-69206F44BE4A Study session minutes -9- Oct. 11, 2021 Councilmember Kraft stated the COVID local business relief report was great. He stated the marketing business support was helpful and helping 50 small businesses was brilliant . Councilmember Rog asked if staff is still doing outreach with the city’s small businesses, and with loan opportunities and continued challenges. She added the sooner the city can help small businesses, especially in the Walker Lake Historic District, the better. Mayor Spano stated in talking to some small businesses, with all the tragedies that occ urred during COVID, there has been some energy and relationships that have come out of this , and those relationships would be helpful to leverage, if possible. Communications/meeting check-in (verbal) Ms. Keller announced the city received another award related to the Westwood Nature Center. The city is the only city receiving this award which is the Tommy Johnson award of excellence – through the Minnesota Park and Recreation Association. Councilmember Kraft stated it would be helpful to do some me ssaging around this as a net zero building, which was completed in 2020 versus 2030, and is a model as well. The meeting adjourned at 9:10 p.m. Written Reports provided and documented for recording purposes only: 4 Proposed amended and restated TIF Policy 5. COVID-19 local business assistance update ______________________________________ ______________________________________ Melissa Kennedy, city clerk Jake Spano, mayor DocuSign Envelope ID: 32FC26F7-F4EF-4523-ACF4-69206F44BE4A