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HomeMy WebLinkAbout2022/05/25 - ADMIN - Minutes - City Council - Regular Official minutes City council Emergency meeting St. Louis Park, Minnesota May 25, 2022 1. Call to order at 6:00 pm Councilmembers present: Mayor Jake Spano, Tim Brausen, Sue Budd, Lynette Dumalag, Larry Kraft, Nadia Mohamed (arrived at 6:03 pm), and Margaret Rog. Councilmembers absent: None. Staff present: City Manager (Ms. Keller), Deputy City Manager/Operations and Recreation Director (Ms. Walsh), Public Works Superintendent (Mr. Hanson), Fire Chief (Mr. Koering), Community Development Director (Ms. Barton), Finance Director (Ms. Schmitt), Interim Communications and Technology Director (Ms. Smith), Chief Building Official (Mr. Skallet) Guests: None. 1a. Roll call 2. Presentations- none. 3. Approval of minutes- none. 4. Approval of agenda and items on consent calendar Mayor Spano suggested adding to the agenda a period for public comment, after the staff presentation. It was moved by Councilmember Rog, seconded by Councilmember Budd, to approve the agenda and to allow for public comment following the staff presentation. The motion passed 6-0 (Councilmember Mohamed absent). 5. Boards and commissions – none. 6. Public hearings – none. 7. Requests, petitions, and communications from the public – none. 8. Resolutions, ordinances, motions and discussion items 8a. Discuss the scope of damage to properties affected by the Saturday, May 21 water main break and options the city might provide for impacted residents Ms. Keller stated early on Saturday morning there was a watermain rupture on Minnetonka Blvd. Staff have been hard at work since that time to respond to the emergency and provide support with filing of claims and cleanup. With more claims coming in on Monday and Tuesday, staff now better understand the extent of the damage residents are experiencing. DocuSign Envelope ID: 2FEDDF4B-154A-4EA5-94B5-7C6A4AAEF4B5 Emergency City council meeting -2- May 25, 2022 Mr. Hanson provided background information on the city’s response to the event that occurred on Saturday. He acknowledged the human side of this event and the profound impact it has had on the residents. He provided an overview of city’s infrastructure in the area and the location of the watermain break. He explained because of the watermain break the nearby manhole was breached and that is how the water from the main break got into the sanitary system and made its way through the service laterals and into many of the homes. He stated when staff responded to the situation , they worked to shut off three separate valves to isolate and stop the water flow. The pipe that ruptured was a 12” water main. The size of the break was approximately 8” x 16” and it is estimated that 1.1 million gallons of water was lost. There is no known cause of the break, the rupture was located on the bottom of the pipe. Staff was onsite within 30 minutes of receiving the call of a confirmed break and about an hour later the water was off. Mr. Hanson explained when the high volume of water was under pressure coming out of the hole, it needed to go somewhere. When water flows out of a watermain break it follows a path of least resistance to relieve pressure. In this case, the path it followed penetrated the nearest manhole and the water pressure worked its way through the sewer lines and caused the backups in homes. Approximately 55 properties received water through the sewer system, the water levels varied from inches to as much as three feet. He explained the complexity of the work that was required to find the water main valves and get the water shut off. He noted the street repair on Minnetonka Blvd. is still underway and will be completed by the end of the week. Ms. Keller explained the city purchases insurance through the League of MN Cities Insurance Trust. Staff’s understanding is that the city has the best policy available. For claims like these, the coverage insures and individual property for up to $40,000 with an overall cap of $250,000 per event. The city is not aware of any other instance like this in which the city’s insurance has been insufficient to cover the claims from individual properties. The city’s utilities superintendent has shared that in the nine years he has been with the city he has only had one other property with damage from an event like this, and that instance was minimal damage. This is truly an unprecedented situation. The claim amount that can be provided through the city’s insurance is so low because of the high number of properties impacted by this event. Ms. Keller reviewed the proposed financial relief package the city can provide that is above and beyond anything that would be coming through the insurance trust. The first phase of the program would assist with cleanup expenses and would reimburse property owners up to $30,000 to ensure that homes are safe and habitable. Eligible expenses include cleanup, major mechanicals, or hotel stays. The second phase of the program would provide up to a $30,000 loan to assist with restoration costs. Eligible expenses would include things such as sheet rock, flooring, and major appliances. The interest rate would be 0% for people who are at 50% AMI and 2% for those above that income threshold. The interest rate covers the cost to have a third party administer the loan program. The city would not be making money on a 2% loan. She noted there were two commercial properties impacted and the dollar amounts for each phase are different because of the specialized equipment often located in businesses and the relatively larger footprint of the buildings. The first phase would provide reimbursement up to $60,000 and the second phase would provide a loan up to $75,000. Ms. Keller stated a community meeting is scheduled for May 26 at Lenox Community Center at 6 pm to outline the city’s response DocuSign Envelope ID: 2FEDDF4B-154A-4EA5-94B5-7C6A4AAEF4B5 Emergency City council meeting -3- May 25, 2022 and available resources. The Community Emergency Response Team (CERT) will be in the neighborhood tonight to inform residents of the community meeting. Julie North, 3014 Quebec Ave. S., stated her homeowner’s insurance will not cover anything. She questioned how the city arrived at the proposed financial relief of $30,000 because that will not cover the remediation costs. She added she feels the communication from the city has been terrible. Joanne Lefebvre, 3041 Quebec Ave. S., stated her insurance will cover nothing because they are being told by insurance that it isn’t a water issue, it is a sewer backup issue. She asked if there is anything the city can do to help with insurance claims by explaining that this was the result of the watermain break. Dimitrios Lalos, 2951 Rhode Island Ave. S., asked if any type of alarm system was set off when 1.1 million gallons of water was lost. He also questioned what the proposed loan term was for phase two of the program. He stated he is disappointed this his first opportunity to speak to council and he would have appreciated councilmembers visiting the neighborhood to meet with people. He noted he had 16” of water in his basement and has incurred way more than $30,000 in damages and that will not cover cleanup or restoration. Mr. Hanson stated the city does have an automated system that includes monitoring. A notification of the water loss was received, but on-call staff was already responding because of the calls from dispatch. The city has an elevation sensor in the towers and if it drops a certain amount unexpectedly it triggers an alarm for on-call staff. Ms. Keller stated for residents the loan would be for a 10-year term for businesses it would be a 20-year term. Camille Gipple, 3020 Quebec Ave. S., shared she has depression and anxiety and that this event has had negative impacts on her mental health. She stated her home wreaks, and she is on a very tight budget. She stated she has no help her remove items from the basement and her insurance will not cover the costs. She noted her basement is still wet and she fears it is not safe to be in the house. All of her belongings are contaminated, and remediation companies won’t touch her water heater or furnace because they say it is contaminated. She added she feels bad for everyone involved and there is a lot of emotional angst over this. She stated she does not have any money to pay for clean up or restoration and asked how quickly the relief could be provided. Adam Snyder, 3010 Quebec Ave. S., stated it seemed like the water kept rising after it was shutoff. He stated $30,000 won’t cover mitigation and he does not understand why they would be responsible for paying the 2% interest on the loan when the issue was not the fault of the property owners. Mr. Hanson stated the water was shut off on Minnetonka fairly quickly. The silt and fine material worked its way into the gate valve housing and staff could not immediately get the key on the six-inch main on Sumter to shut it off. The debris was removed, and the DocuSign Envelope ID: 2FEDDF4B-154A-4EA5-94B5-7C6A4AAEF4B5 Emergency City council meeting -4- May 25, 2022 valve was shut off at approximately 7:15 am. Even though the water was shut off it is possible it was still rising because of the water pressure. Jennifer Snyder, 3010 Quebec Ave. S., stated she does not know how the city arrived at $30,000 for clean up costs, noting the costs just to remove the water are a minimum of $10,000. She added mitigation involves replacing all of the mechanicals in a home and that will cost more than $30,000. She questioned why residents would have to pay a loan when they didn’t cause the problem. She stated she was disappointed that the council did not acknowledge the crisis until Wednesday. Jeff Withers, 2905 Rhode Island Ave. S., questioned the staff response time and referenced the police dispatch call log. He questioned if city staff working on the system have valid plumbing and mechanical licenses. He stated $30,000 is not enough and questioned why residents would have to repay the city. Jim Lefebvre, 3041 Quebec Ave. S., stated the proposed plan is an insult. He asked where personal property is factored into the program. He explained his home was destroyed by the incident and there are a lot of questions about what might have caused the problem. Susan Bowen, 2945 Rhode Island Ave. S., stated everything in her basement is ruined including the circuit panel, furnace, water heater, washer, dryer, and sump pump. She noted her backyard looks like sewage and she fears she is breathing toxic air. Her basement included a finished bathroom, bedroom and family room and it is all gone. She stated she does not know what her property taxes pay for, adding her sewer backed up in February and questioned why the sewer system is so poor. Denise Mueller, 2941 Rhode Island Ave. S., stated she agrees with her neighbors and believes the city needs to do better for them because this was not their fault. She stated her home has lost value and questioned why residents would have to payback a loan. Jacob Ruhl, 3004 Quebec Ave. S., stated the city should not give better loan terms to businesses than individual property owners. He asked how Paster development was cleared of any wrongdoing so quickly after the incident. Jennifer Snyder, 3010 Quebec Ave. S., stated they are not currently able to live in their home because they have no furnace, hot water, gas, or running water. She questioned why nothing tangible could be done in this moment to help residents. David North, 3014 Quebec Ave. S., asked the council what they would you do if this happened to them. He stated this is has been very devastating for the residents and they simply want back what they had before this disaster happened. Julie North, 3014 Quebec Ave. S., stated they appreciate the city’s offer to clean the sewer lines, but they already had that done five days ago and questioned if they could be reimbursed for that cost. DocuSign Envelope ID: 2FEDDF4B-154A-4EA5-94B5-7C6A4AAEF4B5 Emergency City council meeting -5- May 25, 2022 Mayor Spano stated the residents who are disappointed with council not visiting the neighborhood is a fair criticism. He recognized that Councilmember Budd has been in the neighborhood and trying to meet with as many people as possible. He also acknowledged that staff is doing everything they can to be in the neighborhood and help. He asked how many people have not responded to door knocking or contact attempts. Ms. Keller stated as of this morning (6) homes had not responded to contact attempts. She noted inspections staff visited those homes today and were able to contact four of the homes and left messages for the remaining two. Mr. Skallet stated of the two remaining properties, one is a rental property and the other is currently unoccupied, but the homeowner did respond. Councilmember Budd asked how soon the funds would be available. Ms. Schmitt stated phase one funds could be provided fairly quickly. The city would be able to either reimburse the costs to the homeowner or pay vendors directly. Councilmember Budd stated she understands how devastating and tragic this is for people. She was able to visit some homes and spoke to many residents. She noted she believes it is her job to advocate for residents in the best way possible and she has been a part of the discussions involved to develop the relief program. She stated it is disturbing to hear that people are unsatisfied by the financial relief programs proposed. Councilmember Rog asked if there is an opportunity for the city to advocate with insurance providers that this is a water issue. She also asked staff to clarify if the city’s insurance through the League is a supplemental resource and if the city could reimburse residents for the cost of cleaning the sewer lines. Ms. Keller stated she would follow up with the city attorney on the insurance question and try to have information available at community meeting. She explained the city’s insurance coverage with the League is a supplemental resource, noting it is important to acknowledge the number of claimants and the overall $250,000 cap will result in a minimal amount being received per claimant. She confirmed the city can reimburse for the sewer line cleaning and fold that into whatever the council appropriates. Councilmember Kraft asked if we know what caused the water main break. Mr. Hanson stated it is unknown what caused the break itself. Councilmember Kraft asked if Paster was cleared of responsibility. Ms. Keller stated it is her understanding that the construction was happening down the road and any utility work associated with Paster Properties had been completed long before and was not connected with this line. DocuSign Envelope ID: 2FEDDF4B-154A-4EA5-94B5-7C6A4AAEF4B5 Emergency City council meeting -6- May 25, 2022 Mr. Skallet stated he is aware of the project at the corner of Minnetonka Blvd. and Texas Ave. He explained the utilities for the project are attached to Texas Ave. and are located approximately 300 yards away from the location of the break. He stated it is very unlikely that project would be directly related to this break. Councilmember Kraft asked if we understand why homeowner’s insurance isn’t providing coverage. Ms. Keller stated she can’t speak to specifics of individual homeowner policies because every policy is different. She noted this may require a separate rider for this type of coverage. Councilmember Budd stated she heard from some residents that they did not have the required flood insurance, noting most don’t have coverage required for this incident. Councilmember Dumalag apologized to the residents for what they are experiencing and thanked them for coming to share their stories. She asked staff to explain the methodology behind the terms of each phase of the proposed program. Ms. Barton stated staff researched the average dollar amount of claims made to FEMA for floods in the area as well as the scope of work included in the claims. The proposed interest rate for the phase two loan program cover the cost of administration of the loans by a third party. Councilmember Budd asked what expenses are eligible in each phase of the proposed program. Ms. Barton explained that eligible expenses in phase one would be for health and safety remediation including cleanup, disposal of contaminated items, repair, or replacement of major mechanicals such as furnaces and water heaters. Phase two would include expenses for restoration such as carpet, flooring, washer, dryer, or furniture. Councilmember Mohamed asked how the programs are proposed to be funded and stated she would like more information on future budget implications. She questioned if there would be an opportunity to increase the amount offered at a later date. Ms. Barton stated the programs would be funded through the general levy and ARPA funds. The business loans would come from the development funds. Ms. Schmitt stated the options discussed regarding the 2023 budget would need to be revised if the programs are approved because there would be less funds available to use for special transformative projects. Stated if the proposed phase one program to provide up to $30,000 to each affected property was maxed out, the total cost would be approximately $1.6 million dollars in ARPA funds. General fund dollars would be used for the loan program. There may be additional money to buy down the levy, but that could leave no additional money for anything else. DocuSign Envelope ID: 2FEDDF4B-154A-4EA5-94B5-7C6A4AAEF4B5 Emergency City council meeting -7- May 25, 2022 Councilmember Mohamed stated she is devastated and sorry to hear what residents are going through. She added she is happy they can meet to hear what options are available to help. She explained the council’s first priority is to make sure that resident’s homes are safe and livable. Councilmember Rog stated she would like to know if there are options available for the city to increase the amount of money being proposed for the relief programs and would be open to reconsidering the city’s use of ARPA funds to provide more help to residents to try to make them whole. Councilmember Budd stated she would support increasing the dollar amounts in both phases of the program. Mayor Spano stated the city will not be able to make people whole, their homes have been damaged. He asked if the city could hire a third-party to investigate the break and see if a cause of the break could be determined. He stated he understands there is no known cause at this time, and he also understands that sometimes pipes simply break when they are old, but an investigation should be considered. He asked if there are other technologies or processes the city should be looking at to monitor and control the water system. Ms. Keller stated staff could certainly look into an investigation and come back to the council with a recommendation. Mr. Hanson stated water main breaks are not uncommon, however this type of event and the scope of this event are very uncommon. He explained the city does have a state -of-the-art system to monitor and control the water system and it did function properly. Mayor Spano asked if the city was required to charge interest on the loan program. He stated he is interested in trying to find a way to help close the gap for residents. He added the issue is not liability. The residents need help and the city’s infrastructure broke. Ms. Barton stated the city does not have to charge interest and could absorb the cost to administer the loan. Councilmember Brausen stated this is a catastrophe and he empathized with the residents. He noted an engineering study to try to determine an actual cause may help sort out a lot of questions later. He stated anything the city can do to assist residents in getting coverage from insurance, would be appreciated. He explained the city does not have unlimited resources to make everything right and the initial proposal goal is to try to help as soon as possible and provide some immediate relief. Motion by Brausen to adopt staff recommendation for phased proposal for financial relief. The motion fails for lack of a second. DocuSign Envelope ID: 2FEDDF4B-154A-4EA5-94B5-7C6A4AAEF4B5 Emergency City council meeting -8- May 25, 2022 Councilmember Mohamed asked if there is an opportunity to come back later to appropriate more dollars if necessary. Ms. Keller stated the council does retain the ability to provide additional funding. Councilmember Kraft asked if there were conditions attached to relief program. Ms. Keller stated a release of liability would be attached to the funds. Councilmember Kraft stated he wanted to make sure all of the information is clear and transparent because he knows people are rushing to try to get things done quickly. Councilmember Rog asked staff to outline their protocol for responding to incidents. She noted the city has excellent staff who do the very best they can to be responsive. Mr. Hanson stated at approximately 5 am, on call staff received a call from dispatch about a possible backup. Staff’s understanding from dispatch was that a plumber was being called by the homeowner because the suspicion at the time was there was an internal issue either in the home itself or within the service lateral. If an internal issue is suspected, dispatch is advised to please call immediately if they get another call from a different property because that would immediately trigger a response for a possible sewer backup. On call staff received the second call from dispatch and immediately responded and called in additional staff. The third call was received from dispatch when staff was already en route. Councilmember Budd asked if there is a way to do phase one now to provide immediate relief and hold off on a final solution until more info is known about the release, the investigation, and any new information that is heard at the community meeting. Ms. Keller stated the city should confer with the attorney before taking action to appropriate funds without a release of liability. Councilmember Mohamed stated she wants to be responsive to the needs of impacted residents, but also needs to be responsible to others in city who are expecting council to make the best decisions possible regarding the tax levy. Ms. Keller clarified at last study session council directed staff to set aside ARPA funds to help relieve tax increases that may be coming, it does not mean taxes will be reduced. Councilmember Kraft stated the council directed staff to set aside money from the general fund and ARPA. Ms. Schmitt stated the proposal is to use ARPA money for phase one and general fund dollars for phase two. Councilmember Budd asked how much would be needed if the amount offered in phase one was increased to up to $50,000. DocuSign Envelope ID: 2FEDDF4B-154A-4EA5-94B5-7C6A4AAEF4B5 Emergency City council meeting -9- May 25, 2022 Ms. Schmitt stated the total would be $2.7 million. Councilmember Brausen asked if there is potential for any type of state assistance for disaster relief. Ms. Keller stated staff continues to explore opportunities but have not found any yet. Mayor Spano stated if city is going to provide funds, a waiver is not an unreasonable request. He noted the amounts proposed seem low and suggested $50,000 for remediation or clean-up costs and eliminate the option for a restoration loan. Councilmember Mohamed stated there is a big difference between the two phases and understand why staff separated. She noted life safety issues are different than restoration. She stated she is open to removing the interest on the loan program. Councilmember Kraft asked if the city needed to keep the costs separate. Ms. Keller stated yes, there is a real reason to separate expenses. She explained the city needs to be able to demonstrate that expenditures meet the definition of a public purpose. There is a strong public purpose to ensuring the health and safety risks are remediated. It becomes much harder to identify the public purpose in other expenses related to restoration, which is why the loan option was developed. Councilmember Kraft stated they have a responsibility to balance the financial health of the city and the need to address life safety issues for impacted residents. Councilmember Dumalag asked what the definition is of restoration. Ms. Barton stated use of restoration funds would be at the homeowners’ discretion because it is a loan. For the first phase, expenses must be eligible in order for the city to provide reimbursement so the public purpose can be demonstrated. Councilmember Rog asked if there was dollar range of estimates for damages. Ms. Barton explained due to sense of urgency and short turnaround time, staff based the dollar amounts on estimates of claims submitted to FEMA for flood damage. Councilmember Rog asked if it would make sense to wait until we have a better understanding of the actual costs. She noted she understands the urgency of cleanup to address health and safety concerns and to make homes livable. Ms. Barton stated it is likely most important to get cleanup funds out to people as fast as possible. Councilmember Rog stated it seems like they are creating a problem for residents by asking them to waive liability in order to secure emergency funds. DocuSign Envelope ID: 2FEDDF4B-154A-4EA5-94B5-7C6A4AAEF4B5 Emergency City council meeting -10- May 25, 2022 Councilmember Kraft stated he has a concern about how long it would take to get adequate information. He suggested increasing phase one up to $50,000; and leave the up to $30,000 loan option as is. Councilmember Budd stated she liked Councilmember Kraft’s proposal and offered that the loan be 0% interest. Councilmember Rog questioned if the waiver would still be required. Councilmember Kraft stated yes. His intent was to provide an option that provides immediate relief and balances the council’s fiduciary responsibility to the city. Councilmember Mohamed agreed the waiver is needed because they also need to protect the city. She supported increasing the amount in phase one and is interested in discussion the interest on the loan program. Councilmember Rog confirmed the council could still decide later to appropriate more funds. It was moved by Councilmember Kraft, seconded by Councilmember Rog, to allow for additional public comment. The motion passed 7-0. Jennifer Snyder, 3010 Quebec Ave. S., asked for clarification on what is a cleanup expense versus a restoration expense. She questioned why the city can’t just give $50,000 up front to everyone. Halley, 3004 Quebec Ave., stated her concern with the proposed financial piece is the definition of cleanup and asked if restoration could also be included for free. Jeff Withers, 2905 Rhode Island Ave. S., stated the program is very shortsighted and does not cover or serve people. Denise Mueller, 2941 Rhode Island Ave., stated she would rather have more money go towards restoration. She added rather than spending money on why the break occurred, put that money towards the restoration program. Jim Lefebvre, 3041 Quebec Ave. S., asked how much research was done on the neighborhood. He stated it seems council assumes the residents are living paycheck to paycheck and that isn’t the case. He noted they don’t want a loan, they want fairness, justice, and restoration for damages incurred. Jay Ruhl, 3004 Quebec Ave. S., stated he would like to know if there is case law on these types of issues because precedent will be set. DocuSign Envelope ID: 2FEDDF4B-154A-4EA5-94B5-7C6A4AAEF4B5 Emergency City council meeting -11- May 25, 2022 Dimitrios Lalos, 2951 Rhode Island Ave. S., stated he feels like the council is moving to hastily. He noted there are some people who need relief immediately, others have already gone through cleanup process and paid out of pocket and can wait to figure out what the right number is. He asked if there is a way to tailor the program to help those who really need it right now. Joanne Lefebvre, 3041 Quebec Ave. S., stated the insurance adjuster said they would cover the costs if it was classified as a water loss, if it was sewage backup the coverage would be $5,000. Adam Snyder, 3010 Quebec Ave. S. asked if phase one covers the cost for a furnace. Ms. Keller stated yes, major mechanicals and electrical are eligible in phase one. Ms. Schmitt stated the main reason for splitting the program into phases has to do with state statute. Taxpayer money the city expends has to be used for a public purpose. The city does not have the ability to write a check to each person . Making homes safe to live in is a public purpose because if the homes remain unlivable and damaged, they may need to be condemned. Staff’s primary concern is to get folks money who need a safe, clean, dry house and we can legally expend money for that purpose. Councilmember Kraft questioned if that meant on the restoration side that it must be a loan. Ms. Schmitt stated yes. Councilmember Budd asked if anything could be offered in phase two that is not a loan. Ms. Schmitt stated she would need to consult the city attorney, but she did not believe so. Susan Bowen, 2945 Rhode Island Ave. S., questioned how this is different from the insurance process. Ms. Keller stated staff can collect contact information and ask the League’s insurance adjuster to make contact. Jeff Withers, 2905 Rhode Island Ave. S., asked if it would be a public purpose expenditure to prevent a class action lawsuit. Mayor Spano stated the council is prioritizing trying to be responsive and asked staff to find a plan to get money in people’s pockets now. He is hearing from residents the need to slow down, collect more information, and get it right. He asked if there are options for those who do not have money for remediation. Councilmember Budd stated she is torn between the need for immediacy and the danger of making hasty decisions. DocuSign Envelope ID: 2FEDDF4B-154A-4EA5-94B5-7C6A4AAEF4B5 Emergency City council meeting -12- May 25, 2022 Councilmember Kraft stated this is doubly challenging because they need answers to some important legal questions. He continued it feels like it is worthwhile to wait a bit and reach out to make sure those who need have a place to go. He added it also feels like this can’t wait until next week to reconvene. Councilmember Brausen stated he does not think all the questions will be answered in a couple of days. He explained he viewed the staff proposal as a starting point. It was developed to try to provide an immediate response. Ms. Keller stated if there was a desire to create something that people in need could take advantage of right now, the council has the ability to do that and come back and have additional work and conversation with residents who may not have the same sense of financial immediacy. It was moved by Councilmember Brausen, seconded by Councilmember Kraft, to authorize creation of an emergency fund of $150,000 to be used to address immediate health and safety needs for impacted property owners. Motion withdrawn. Councilmember Mohamed stated she does not feel comfortable leaving without providing an option for immediate relief for those in need. Councilmember Rog clarified the proposal is to create a pool of funds for any needs related to health and safety. Councilmember Brausen stated yes. Mayor Spano asked if the intent is to use the criteria of phase one and give the city manager the discretion to assist property owners up to $150,000. Councilmember Brausen stated yes, but it would be used for truly emergency expenses to address immediate health and safety issues. Councilmember Mohamed stated if the concern is immediacy, why doesn’t the council just pass phase one of the program with the intent to revisit the discussion at a later date when more information is known. She added she is opposed to the proposal because it is unclear to her what they would be passing. Ms. Barton stated legally this could not be a grant program because there is much more work involved in administration of the program. The difference is that the phase one program as proposed is a reimbursement program the city is offering due to the unforeseen situation, not a grant program. Councilmember Rog stated this could be appropriate if there are only a small number of people in immediate need. DocuSign Envelope ID: 2FEDDF4B-154A-4EA5-94B5-7C6A4AAEF4B5 Emergency City council meeting -13- May 25, 2022 Ms. Keller suggested authorizing a total amount of $300,000 to ensure the people who need immediate assistance can get it without needing more money appropriated. Councilmember Budd stated she feels the residents would be better served by approving phase one of the program as proposed. Councilmember Mohamed stated she agreed with Councilmember Budd. It was moved by Councilmember Brausen, seconded by Councilmember Kraft, to authorize an initial investment of the phase one reimbursement program of $300K and authorize the city manager to administer the program to address emergency cleanup needs with the intention to revisit and consider future relief options when more information is received, and the scope of need can be better understood. Ayes: 5 Nays: 2 (Budd, Mohamed) 9. Communications – none. 10. Adjournment ______________________________________ ______________________________________ Melissa Kennedy, city clerk Jake Spano, mayor DocuSign Envelope ID: 2FEDDF4B-154A-4EA5-94B5-7C6A4AAEF4B5