Loading...
HomeMy WebLinkAbout2021/12/06 - ADMIN - Minutes - City Council - Regular Official minutes City council meeting St. Louis Park, Minnesota Dec. 6, 2021 1. Call to order Mayor Spano called the meeting to order at 7:10 p.m. 1a. Pledge of allegiance 1b. Roll call Councilmembers present: Mayor Jake Spano, Tim Brausen, Lynette Dumalag, Rachel Harris, Larry Kraft, Nadia Mohamed, and Margaret Rog. Councilmembers absent: None. Staff present: City Manager (Ms. Keller), City Attorney (Mr. Mattick), CFO (Ms. Schmitt), Director of Community Development (Ms. Barton), Solid Waste Manager (Ms. Fisher), Solid Waste Specialist (Ms. Stelzner). 2. Presentations - none 3. Approval of minutes 3a. City council meeting minutes of Nov. 1, 2021 It was moved by Councilmember Rog, seconded by Councilmember Kraft, to approve the Nov. 1, 2021, city council meeting minutes as presented. The motion passed 7-0. 3b. Special study session minutes of Nov. 1, 2021 Councilmember Kraft noted on page 2 it should read, “…in our parks and outdoor patios and restaurants, but it appears the city does not have the right levers to enforce it .” It was moved by Councilmember Mohamed, seconded by Councilmember Kraft, to approve the Nov. 1, 2021, special study session minutes as amended. The motion passed 7-0. 4. Approval of agenda and items on consent calendar 4a. Accept for filing city disbursement claims for the period of Oct. 23 through Nov. 26, 2021. 4b. Approve second reading and adopt Ordinance No. 2637-21 amending Section 36 pertaining to parking requirements and approve the Summary Ordinance for publication. DocuSign Envelope ID: 0BCEDAED-A73B-4521-B907-07C7A8381EE7 City council meeting -2- Dec. 6, 2021 4c. Approve second reading and adopt Ordinance No. 2638-21 establishing fees for 2022 as outlined in Appendix A of the City Code of Ordinances. 4d. Approve second reading and adopt Ordinance No. 2639-21 amending St. Louis Park City Code Chapter 3 related to prohibited conditions for liquor licenses and summary ordinance for publication. 4e. Adopt resolution authorizing the award of the 2022 arts and culture grants. (This item was removed from the consent calendar and considered as regular agenda as item 8b) 4f. Adopt resolution providing preliminary approval for the issuance of multifamily housing revenue bonds to finance the 3801 Wooddale Avenue Sout h housing project. (This item was removed from the consent calendar and considered as regular agenda as item 8d) 4g. Adopt Resolution No. 21-142 providing preliminary approval for the issuance of multifamily housing revenue bonds to finance the 8115 State Highway No. 7 housing project. 4h. Approve release of agreement pertaining to the property at 3440 Beltline Boulevard (Document No. 1716134). 4i. Adopt Resolution No. 21-143 approving amended and restated TIF Policy. 4j. Adopt Resolution No. 21-144 authorizing the mayor and city manager to execute the West Metro Home Remodeling Fair Joint Powers Agreement. 4k. Adopt Resolution No. 21-145 authorizing the special assessment for the repair of the sewer service line at 3253 Webster Avenue South, St. Louis Park, MN.P.I.D. 16-117-21-24-0021. 4l. Adopt resolution rescinding Resolution Nos. 3050 and 5979; and adopt Resolution approving the conditional use permit for 6639 Wayzata Boulevard. (This item was removed from the consent calendar and considered as regular agenda as item 8f) 4m. Adopt Resolution No. 21-146 accepting the Coronavirus Local Fiscal Recovery Funds established under the American Rescue Plan Act. 4n. Authorize a comment letter to be submitted to the Public Utilities Commission regarding the proposed Tariffed On-Bill financing pilot program. (This item was removed from the consent calendar and considered as regular agenda as item 8c) 4o. Adopt Resolution No. 21-147 authorizing installation of permit parking restrictions in front of 1457 Idaho Avenue. 4p. Adopt Resolution No. 21-148 authorizing installation of permit parking restrictions in front of 3053 Florida Avenue. 4q. Approve for filing planning commission minutes of Oct. 6, 2021. 4r. Approve for filing planning commission minutes of Nov. 3, 2021. (This item was removed from the consent calendar and considered as regular agenda as item 8e) It was moved by Councilmember Rog, seconded by Councilmember Mohamed, to approve the agenda and items listed on the consent calendar as amended to move consent calendar item 4 e, n, f, r, l to the regular agenda as item 8 b, c, d, e, f respectively; and to waive reading of all resolutions and ordinances. The motion passed 7-0. DocuSign Envelope ID: 0BCEDAED-A73B-4521-B907-07C7A8381EE7 City council meeting -3- Dec. 6, 2021 5. Boards and commissions 5a. Reappoint representative to Fire Civil Service Commission It was moved by Councilmember Brausen, seconded by Councilmember Harris, to reappoint Stuart Williams to the Fire Civil Service Commission for a 3-year term, expiring on Dec. 31, 2024. The motion passed 7-0. 6. Public hearings 6a. Modifications to housing revenue bonds (PLACE Via Sol development), series 2018 (green bonds). Resolution No. 21-149 Mr. Hunt presented the staff report. Mayor Spano opened the public hearing. Kimberly Anderson, 3248 Yosemite Ave. S., stated they just heard the EDA conversation on this issue and thanked Mayor Spano for being the only one to have the courage to oppose this project. Kimberly has followed this project with optimism and skepticism, is astounded by the lack of transparency on finances and bondholders, is very disappointed, and will continue to watch this, hoping everyone will be wrong. Chris Valesco stated he works for the PLACE project. He noted this project will be exceptional when completed and thanked the EDA for appro ving this. He stated financing will be approved for this so the project can be completed. Mayor Spano closed the public hearing. Councilmember Kraft stated he is rooting for the project to be successful . He will support this and the way he looks at it, this provides the best chance to complete the project. Councilmember Brausen noted the 2018 bondholders agree to these modifications and will be subordinating their debt and they will have more risk than the city in doing so. Councilmember Rog stated she is also disappointed the project has not yet been completed, but with the advice of the bond attorney and stating this is necessary for the project to be completed, she will support this action. Councilmember Dumalag stated she will also support this, adding the priority is to complete the project. DocuSign Envelope ID: 0BCEDAED-A73B-4521-B907-07C7A8381EE7 City council meeting -4- Dec. 6, 2021 Councilmember Harris stated while there were risks with this project, it has been exciting to pursue, adding it will be a tremendous advantage to the community with live/work features. She will support this and hopes it will be successful. Mayor Spano stated he will not support this action but is still rooting for the project. He stated being asked to work around these financial issues of the project has been difficult and he is concerned about the capacity of the development team. He noted the council has looked at the same information but come to different conclusions and he thanked staff for their work on this. It was moved by Councilmember Brausen, seconded by Councilmember Mohamed, to adopt Resolution No. 21-149 approving the modifications to the housing revenue bonds, (PLACE Via Sol development), series 2018 (green bonds). The motion passed 6-1 (Mayor Spano opposed). 6b. 2022 proposed budget, tax levies and truth in taxation public hearing Ms. Schmitt presented the staff report. Mayor Spano opened the public hearing. Dave Larson, 4210 Yosemite Ave., stated he got his tax statement and noted when he first purchased his home in 1992, his taxes were $1,250 per year and $100 per quarter on sewer and water. This year, his proposed tax is over $7,667 with another $500 per month on sewer and water. He added he also had an 11% increase in home value and on top of this, there is the 6.5% levy so his taxes are going up 19% this year. He stated he understands some of the base was lost in commercial property; however, he cannot stomach this increase. He does not want to argue about the value of home but noted they must find the $2 million from somewhere else, and not just through the levy. He feels there is an insatiable want of money from government, adding the important thing is police, fire, and water, and this is too much. Eric Judge, 2824 Xenwood Ave., stated he has lived in St. Louis Park for 18 years and as far as he can remember, there has never not been a tax increase. He stated this is an unsustainable trajectory and he does not understand how the city can continue to raise taxes 5-6% each year. He stated we are trying to keep St. Louis Park affordable, noting the city is spending 14% to service city debt. He asked how taxpayers know if they are getting bang for their buck. He also asked if bicycle lanes are being used, about the 20- mph speed limit, and how does the city know if the money being spent on these programs is making these programs work. He stated the city is spending money, but how can we be sure it is coming back to residents. He stated before the council approves this, he wants them to think about return on investment. Kevin Mattson, 4860 Park Commons Drive, stated he has lived in the city for 3 years and owns a condominium. He stated they look forward to living here for the rest of their DocuSign Envelope ID: 0BCEDAED-A73B-4521-B907-07C7A8381EE7 City council meeting -5- Dec. 6, 2021 lives and he appreciates the investment the council is making. He stated he is a taxpayer, and no one likes to pay taxes, but he appreciates the discussion. Stan Jurgenson, 2309 Westridge Ln., stated he appreciated the help he received from staff. He stated the 2021 budget included funds in case there is no assistance for COVID from federal or county, but he understands $6.5 million was received in 2021 . He stated he is not sure how much of these funds went out . He stated social security has a cost-of- living increase, but not private pensions so many residents are cost burdened, and many must make tough decisions. He stated he appreciates the council’s work on this. Mayor Spano closed the public hearing. Councilmember Rog clarified the council is discussing a 5.58% increase at this time. Councilmember Kraft asked about the differences between a market value levy versus a tax capacity levy, noting the EDA and HRA are market value levies. Ms. Schmitt stated the market value levy takes the total market value of the property and applies the tax rate. The tax capacity levy takes the market value and pulls it down to a tax capacity rate and then applies it. Ultimately, the difference is how they are calculated by the county. Councilmember Kraft asked if the formula is applied equally across all property classifications. Ms. Schmitt stated it is not. Councilmember Kraft asked which classifications are better off in a market value levy and which are better in a tax capacity levy. Ms. Schmitt stated the legislature created the tax capacity levy to benefit lower value homes. As home values increase, the homestead exemption decreases. Councilmember Kraft stated the tax capacity levy is more progressive and less burdensome on lower value homes. He explained this means the decision to have an EDA levy instead of putting this in the general levy further impacts lower valued homes. If the same amount was in the general levy versus the EDA levy, it would be more progressive. Ms. Schmitt clarified that market value is taxed evenly across the board. He pointed out the 5.58% tax levy is the general levy, but the actual increase in the amount of levy being collected from people is not 5.58%, it is 6.9%. The council is choosing to put $500,000 in an EDA levy and not including it in the general levy. Mayor Spano stated the council is not deciding on the final levy tonight and will have the opportunity to discuss this further at the next meeting. The purpose of the item on the agenda was to conduct a public hearing and take public comment on the proposed levy before a final decision is made. He stated if Councilmember Kraft had a question of fact or point of clarification for staff, that is ok, but a question of policy is different and not what council was prepared to discuss tonight, noting council has been discussing the budget and the specific concerns around the EDA levy for months. Councilmember Kraft stated he would like to make a request of staff for the next meeting and propose that another alternative be evaluated. DocuSign Envelope ID: 0BCEDAED-A73B-4521-B907-07C7A8381EE7 City council meeting -6- Dec. 6, 2021 Mayor Spano stated that seemed inappropriate given that there would not be another opportunity before the final vote for the council to discuss at a study session and dig deeper into the details of the new alternative. Councilmember Kraft stated the council was just given new information that the levies are calculated differently and where they choose to put the funds has an impact. If council chooses to put those funds into the general levy instead of the EDA levy it will fall less hard on lower value homes. Councilmember Kraft made a motion, seconded by Councilmember Mohamed, to ask staff to develop an alternative 2022 budget without an EDA levy and to absorb those funds into the general levy, to the extent possible, consistent with city values. Councilmember Mohamed stated the information discussed tonight about how the different levies are calculated was also new to her and knowing this, she would have thought differently about the EDA levy. While taxes are necessary, if we are asking our lowest-income residents to pay, that is an equity issue. She would like to see the additional information from staff so she fully understands the impact of the levy and can explain it to anyone who asks her about it. She noted she does not want to tax people in a way that results in low-income or fixed income communities being disproportionately impacted. Ultimately, she wants to have all the information to be able to make the best decision possible. Councilmember Harris also noted the HRA levy, which also does not appear to be taxed as progressively. Councilmember Kraft agreed and stated because the HRA levy has been in place for years, he felt that at this time it was best to focus on the new levy being proposed, the EDA levy. He noted he would be open to looking at the HRA levy as well in the future. He clarified he was only asking for the opportunity to see what it would look like if the EDA levy was not established and instead those funds were put into the general levy, to the extent possible. Councilmember Rog stated while she supports the expenditures that are recommended to be a part of the EDA levy, she still does not support the creation of a new levy. She explained she would like to see the expenditures currently included in the EDA levy be folded into the general levy. Ms. Keller stated she appreciated that there was some additional clarity in how the information was presented today. She noted this is the reason why Ms. Schmitt has been saying that this is the reason why we can’t just add everything together into one number, because of the different valuation practices behind it. She clarified that from staff’s perspective the information presented tonight is not new information, it perhaps was clearer about why there are differences. She asked Ms. Schmitt to clarify what could be included if the EDA levy was wrapped into the general fund levy with a maximum increase of 6.5%. DocuSign Envelope ID: 0BCEDAED-A73B-4521-B907-07C7A8381EE7 City council meeting -7- Dec. 6, 2021 Ms. Schmitt stated if the EDA levy were eliminated, they would be able to absorb an additional $330,000 in the general fund levy to keep it at the 6.5% maximum increase that was set. Councilmember Brausen stated he understood all along how the EDA and HRA levies were calculated and applied based on market value capacity. He added the information presented tonight was not new information to him and noted this was how it was presented in staff reports throughout the budget process as well. He stated development of the alternative budget will require staff to jump through many hoops to figure out how to redistribute the funds and stay within the maximum levy target. He added when spread out across the billions of dollars of property value in the city, the burden of the EDA levy would result in minimal impacts, so he will not support this motion. Councilmember Dumalag stated she was not aware of this difference either and appreciated the clarification from staff. She noted she would like to see the alternative options so she can better understand the impacts of the levy. Councilmember Harris stated the policy itself and how it is explained to the taxpayers may warrant further conversation; however, given the scope of the conversation, it does not feel like the council would be able to give it the attention and time it deserves within the next 7 days. She reiterated that she would like to discuss in the future in terms of the council’s governance policies overall. Councilmember Kraft stated he appreciated the additional clarity from staff and found it to be very helpful. Mayor Spano asked what percentage of the budget was represented by the funds in the proposed EDA levy. Ms. Schmitt stated she can run the calculations for council, but she does know it is 1% or less. The maximum EDA levy allowed this year is $1.48 million, a little bit less than the HRA. If staff was going to look at it, they would want to compare the difference between tax capacity and market value at $1.4 million to be able to see more than roughly a one-dollar difference. Mayor Spano questioned if a substantially different budget proposal was bro ught forward, would the city have to do anything else from a legal standpoint given that the truth in taxation hearing had already been conducted. Mr. Mattick stated the maximum tax levy set in September cannot go up. Mayor Spano stated he does not take issue with discussing the question, he takes issue with the way it is being proposed. He will not support this as he does not feel it is fair to people or to council to try to push through a substantive shift in the way we fund our work at this point in the process. Councilmember Rog stated while she does agree with the proposal in principle, she will not support this motion given the burden on staff and the likelihood that this isn’t going DocuSign Envelope ID: 0BCEDAED-A73B-4521-B907-07C7A8381EE7 City council meeting -8- Dec. 6, 2021 to go forward at this time. She noted she does look forward to future discussions about the EDA and HRA levies and looking at how they are funded. The motion failed 3-4 (Brausen, Harris, Rog, and Spano, opposed). 7. Requests, petitions, and communications from the public – none. 8. Resolutions, ordinances, motions, and discussion items 8a. 2022 zero waste packaging acceptable materials and exemptions list administrative rules report Ms. Fisher presented the report. Councilmember Brausen asked if any substitutes have been found for coffee cup lids. Ms. Fisher stated yes, there are certified compostable lids available now. Councilmember Kraft stated he is supportive of the changes and asked if there has been compliance with the policies. Ms. Fisher stated the last couple of years have been difficult in dealing with businesses, due to the difficult circumstances of the pandemic. She stated generally there has been compliance, but there is always room for improvement. She added there is ongoing work to educate on this topic. Councilmember Rog asked how the city engages in the disposal end, with compost and recycling, and if there will be more signage on this. Ms. Fisher stated this is a challenge, and while staff has not done any studies on signage, they do work one on one with businesses and help them get the right services. She added certainly composting and recycling are available and affected businesses should be contracting with them for recycling and organics collection. Councilmember Rog stated work on these ordinances will benefit everything the city is working on regarding this. Councilmember Brausen stated this has been in effect 4 years. He noted he is ecstatic with the results he has seen in St. Louis Park and thanked staff and the council for work done on this. Mayor Spano added this has been a priority in the city and he noted positive county results were due to changes made in St. Louis Park, adding he is in support of the proposals related to zero waste packaging. He asked if the exemption list had changed over time. Ms. Fisher stated in addition to the two exemptions recommended to be removed for 2022, one other exemption has been removed in previous years. It was moved by Councilmember Brausen, seconded by Councilmember Rog, to approve the zero waste packaging acceptable materials and exemptions list and administrative rules for 2022. DocuSign Envelope ID: 0BCEDAED-A73B-4521-B907-07C7A8381EE7 City council meeting -9- Dec. 6, 2021 The motion passed 7-0. 8b. Authorize the award of the 2022 arts and culture grants. Resolution No. 21-150 Councilmember Kraft said a small amount of money is spent here and he loves the items presented, including a pop-up pick-up truck opera, a community story telling forum, the Minnesota Thai cultural council, Semilla Center winter solstice lantern walk, and a fall sound garden park. He appreciates the creativity and confirmation of the city’s values with these projects. Councilmember Brausen noted the lantern walk is for mental health initiatives and is a good cause to support. It was moved by Councilmember Kraft, seconded by Councilmember Brausen to adopt Resolution No. 21-150 authorizing the award of the 2022 arts and culture grants. The motion passed 7-0. 8c. Authorize a comment letter to be submitted to the public utilities commission regarding the proposed tariffed on-bill financing pilot program Councilmember Kraft noted this letter to the public utilities commission (PUC). He stated this is the city investing time and influence to get a pilot program put in place by the utility, to create cost savings, make homes healthier, and meet the city’s climate goals. It was moved by Councilmember Kraft, seconded by Councilmember Dumalag, to authorize a comment letter to be submitted to the PUC regarding proposed tariffed on- bill financing pilot program. The motion passed 7-0. 8d. Provide preliminary approval for the issuance of multifamily housing revenue bonds to finance the 3801 Wooddale Avenue South housing project . Resolution No. 21-151 Councilmember Dumalag noted this has not reached city approval, but all the applications are due next month. She asked about the status of the project. Ms. Barton stated the developer has not submitted the application yet but has established an escrow to perform a traffic study, which will be available to council in a few weeks. It was moved by Councilmember Dumalag, seconded by Councilmember Brausen, to adopt Resolution No. 21-151 providing preliminary approval for the issuance of multifamily housing revenue bonds to finance the 3801 Wooddale Ave. S. housing project. The motion passed 7-0. DocuSign Envelope ID: 0BCEDAED-A73B-4521-B907-07C7A8381EE7 City council meeting -10- Dec. 6, 2021 8e. Approve for filing planning commission minutes of Nov. 3, 2021 Councilmember Dumalag stated the minutes should read “Commissioner Kraft” and not “Councilmember Kraft.” It was moved by Councilmember Dumalag, seconded by Councilmember Brausen, to approve the amended planning commission minutes of Nov. 3, 2021 for filing. The motion passed 7-0. 8f. Rescind Resolution Nos. 3050 and 5979; and adopt Resolution approving the conditional use permit for 6639 Wayzata Blvd. Resolution No. 21-152 and Resolution No. 21-153 Councilmember Brausen stated this is the Morries Hyundai dealership, adding he is excited to see they are moving to all LED light on the car lot and dimming them later in the evening. He added there is no requirement under a CUP for solar installation, and he would like to consider in the future that commercial partners be looked for to do solar farm installation. It was moved by Councilmember Brausen, seconded by Councilmember Rog, to adopt Resolution No. 21-152 to rescind Resolution Nos. 3050 and 5979 and adopt Resolution No. 21-153 approving the conditional use permit for 6639 Wayzata Blvd. The motion passed 7-0. 9. Communications Ms. Keller stated the police department is accepting donations for Toys for Tots. Donations can be dropped off in the lobby of the police department by Dec. 15, 2021. She added the vaccine program is at 77% with a goal of 80%. Ms. Keller also noted all council business for the year will be wrapped up on Dec. 13, 2021, and the meetings for Dec. 20 and 27, 2021, will be canceled. Councilmember Rog noted the Be the Light winter solstice walk, which has the theme of mental health, will be held on Dec. 21, 2021, 6:30 – 8 p.m. and preregistration on the city website for the free event. She added the Holiday Train is online again this year, on Sat urday, Dec. 18, 2021, and donations to STEP are encouraged. Councilmember Brausen stated the Exchange Medical Arts building had its grand opening this week with new office space in the community. Mayor Spano wished a happy last day of Hanukkah to those celebrating. He thanked Councilmember Mohamed for representing him at a ribbon cutting for the Loffler grand opening. Mayor Spano added he was at the tree lighting at the West End and thanked Councilmember Rog for her idea related to acknowledging folks for their acts of kindness . He stated Maggie DocuSign Envelope ID: 0BCEDAED-A73B-4521-B907-07C7A8381EE7 City council meeting -11- Dec. 6, 2021 Myers and Tammy McKanna are at all city events, and they are at community, arts, and all types of events. He thanked them for being such great ambassadors for the city. 10. Adjournment The meeting adjourned at 9:00 p.m. ______________________________________ ______________________________________ Melissa Kennedy, city clerk Jake Spano, mayor DocuSign Envelope ID: 0BCEDAED-A73B-4521-B907-07C7A8381EE7