HomeMy WebLinkAbout2022/06/06 - ADMIN - Minutes - City Council - Regular Official minutes
City council meeting
St. Louis Park, Minnesota
June 6, 2022
1. Call to order
Mayor Spano called the meeting to order at 6:30 p.m.
1a. Pledge of allegiance
1b. Roll call
Councilmembers present: Mayor Jake Spano, Tim Brausen, Sue Budd, Lynette Dumalag, Larry
Kraft, Nadia Mohamed, and Margaret Rog
Councilmembers absent: none
Staff present: City Manager (Ms. Keller), Deputy City Manager (Ms. Walsh), Finance Director
(Ms. Schmitt), Engineering Director (Ms. Heiser), City Attorney (Mr. Mattick), Economic
Development Coordinator (Mr. Hunt), Community Development Director (Ms. Barton), Planning
Manager (Mr. Walther), Housing Supervisor (Ms. Olson), Interim Communications and
Technology Director (Ms. Smith) Chief Building Official (Mr. Skallet), Operations Superintendent
(Mr. Hanson)
Guests: Mr. Dahl, Ehlers; Mr. Hoeft, Bolton & Menk; Residents of St. Louis Park
2. Presentations
2a. Proclamation recognizing Karen Bjorgan, founder of INSPIRE Program
Mayor Spano read the proclamation into the record declaring June 6, 2022, Karen
Bjorgan day in St. Louis Park. Ms. Bjorgan thanked the city and Park Nicollet and noted
the history of the INSPIRE Program, its resources, and support programs.
Both Councilmember Kraft and Mayor Spano thanked Ms. Bjorgan for her work with
INSPIRE and support for stroke survivors.
3. Approval of minutes
3a. Study session minutes of March 28, 2022
It was moved by Councilmember Rog, seconded by Councilmember Mohamed, to
approve the March 28, 2022, study session minutes as presented.
The motion passed 7-0.
3b. Special study session minutes of April 4, 2022
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It was moved by Councilmember Brausen, seconded by Councilmember Rog, to approve
the April 4,2022, special study session minutes as presented.
The motion passed 7-0.
3c. Study session minutes of April 11, 2022
It was moved by Councilmember Rog, seconded by Councilmember Dumalag, to approve
the April 11, 2022, study session minutes as presented.
The motion passed 7-0.
3d. City council meeting minutes of April 18, 2022
It was moved by Councilmember Mohamed, seconded by Councilmember Brausen, to
approve the April 18, 2022, city council meeting minutes as presented.
The motion passed 7-0.
3e. Study session minutes of April 18, 2022
Councilmember Kraft noted on page 2 it should read, …”there also is an important
quantitative piece…due to engage the greater level of care that can be captured as a
pathway.”
It was moved by Councilmember Brausen, seconded by Councilmember Rog, to approve
the April 18, 2022, study session minutes as revised.
The motion passed 7-0.
3f. Study session minutes of April 25, 2022
It was moved by Councilmember Rog, seconded by Councilmember Mohamed, to
approve the April 25, 2022, study session minutes as presented.
The motion passed 7-0.
3g. Study session minutes of May 9, 2022
It was moved by Councilmember Kraft, seconded by Councilmember Rog, to approve the
May 9, 2022, study session minutes as presented.
The motion passed 7-0.
3h. City council workshop minutes of May 9, 2022
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It was moved by Councilmember Brausen, seconded by Councilmember Mohamed, to
approve the May 9, 2022, city council workshop minutes as presented.
The motion passed 7-0.
3i. Emergency city council meeting minutes of May 25, 2022
It was moved by Councilmember Rog, seconded by Councilmember Budd, to approve the
May 25, 2022, emergency city council meeting minutes as presented.
The motion passed 7-0.
4. Approval of agenda and items on consent calendar
4a. Accept city disbursement claims for the period of April 30 through May 27, 2022.
4b. Motion to adopt Resolution No. 22-083 approving the Contract for Private
Redevelopment and the AHTF deferred loan between the city and CommonBond
Communities related to the Rise on 7 development.
4c. Motion to adopt Resolution No. 22-084 approving the Contract for Private
Redevelopment and the AHTF deferred loan between the city and Real Estate
Equities (St. Louis Park AH I, LLLP) related to the Wooddale Avenue Apartments
development.
4d. Motion to approve first reading of ordinance amending Chapter 36 pertaining to
PUD 10 to amend the site plans for Chick-fil-A and set the second reading for
June 20, 2022.
4e. Motion to approve first reading of Ordinance amending Chapter 36 pertaining to
electronic signs and set the second reading for June 20, 2022.
4f. Motion to adopt Resolution No. 22-085 to recognize Engineering Project
Coordinator Tom Pecchia for more than 26 years of service.
4g. Motion to adopt Resolution No. 22-086 approving a revised green building
policy.
4h. Motion to adopt Resolution No. 22-087 authorizing an annual sign permit
authorizing the St. Louis Park Lions Club to place temporary signs within the
public right-of-way for the annual pancake breakfast event.
4i. Motion to approve a temporary on-sale intoxicating liquor license for Twin Cities
Habitat for Humanity for an event at 6518 Walker Street on June 18, 2022.
4j. Motion to approve an extension until June 15, 2023, for Project fo r Pride in
Living (PPL) to record the final plat of Unity Village Apartments.
4k. Planning commission meeting minutes of April 6, 2022.
Councilmember Budd requested that agenda item 8a be moved up and discussed right
after the consent agenda.
It was moved by Councilmember Budd, seconded by Councilmember Brausen, to approve
the agenda and items listed on the consent calendar as amended to consider item 8a
after the consent agenda, and to waive reading of all resolutions and ordinances.
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The motion passed 7-0.
Councilmember Brausen referenced consent item 4f and recognized Engineering Project
Coordinator Tom Pecchia for more than 26 years of service and especially his work
related to various construction projects in Ward 4. He noted everyone had a good
working relationship with Mr. Pecchia and he will be missed.
Mayor Spano requested that agenda item 8b be pulled from the agenda as the applicant
withdrew their application.
It was moved by Mayor Spano, seconded by Councilmember Kraft, to remove item 8b
from the agenda as the applicant withdrew their application.
The motion passed 7-0.
8. Resolutions, ordinances, motions, and discussion items
8a. Discuss scope of damage of May 21 water main break and options for impacted
residents
Mayor Spano thanked the community for allowing councilmembers to come into their
homes to assess damages this past week. He stated staff will present the report related
to May 21 and this past weekend. After that, residents will have an opportunity to ask
questions and address the council.
Ms. Keller stated it is unimaginable that there have been two watermain breaks on the
same sections of pipe. She visited with residents this past weekend and learned how
this impacted them. She added that staff has also been surprised by what happened.
Ms. Keller stated staff will discuss what is known and what is unknown about the break
and the system and present an updated staff recommendation on financial relief. She
stated staff will answer all the questions they can and work on getting clarity on as
much as they can. Ms. Keller stated the action item for council consideration is to review
and approve of the financial relief package.
Ms. Walsh presented the report. She noted there were 22 homes impacted by the
second break, 38 homes were unaffected, and a few have not been heard from yet.
Mr. Hoeft, P.E. with Bolton & Menk, a multi-discipline firm that provides infrastructure
constructions, maintenance, and planning, spoke to the issue and his observations of
the second water main break. He stated he assisted the city with overseeing the repair
of the break, noting he is confident the repairs made will address the leakage issue.
Mr. Hoeft provided context about infrastructure issues h appening all over the country,
and a utility system that is typically over 50 years old in most areas of Minnesota.
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Ms. Heiser stated the city plans to update all city infrastructure with capital expenditure
and continues to do so each year. She stated sewer lines are routinely inspected and
engineering will be developing a plan to update infrastructure and work with the council
on this.
Ms. Keller stated tonight staff will focus on the city reimbursement program and city
loan program, noting there have been changes since the last meeting. She explained
there are four points she will present related to the assistance program. The first is
there has been updated insurance information from the League of MN Cities Insurance
Trust about the insurance cap; second, there will be expanded eligibility; third, the
residential properties will have no interest on the loan program; and fourth, a higher
dollar amount will be available for those impacted twice. Ms. Keller stated if approved, a
third-party will be hired to administer the assistance programs.
Ms. Keller added there will be another neighborhood meeting for affected residents on
June 8 at Lenox Community Center.
John Honsa, 2931 Sumter Ave. S., stated they had two breaks in a short period of time,
and he has no confidence in what has been repaired. Mr. Hoeft stated he assisted with
that very thing and noted the pipe it was being connected to looked brand new . He
stated the analysis and evaluation being done will address and access the repairs.
Julie North, 3014 Quebec, stated on May 21 they had over two feet of sewage water in
their basement and now have a trench there, with sludge in the pipes . She stated they
have a total of $53,000 worth of repairs needed and she is asking if the amount can be
increased. Mayor Spano stated council will be discussing this tonight .
Joanne LaFave, 3041 Quebec Ave. S., stated property values have been destroyed
because of these incidents. This is not about a $25K or $50K remediation as much as it is
about a complete lack of assurance the city can provide basic services to these homes.
She asked how anyone can begin a reconstruction process and trust that this will not
happen again.
Demitrios Lalos, 2951 Rhode Island Ave. S., stated the insurance will cover $40,000. He
asked if there was a staff proposal prior to that and what was that . Ms. Keller stated
staff and the League worked jointly to put together the package and the updated
proposal is based on what happened over the weekend .
Mr. Lalos asked if there was any study of the first break. Ms. Walsh stated the
engineering firm will look at both breaks and evaluate both .
Ms. Lalos stated a study was done with the Pastor property related to infrastructure and
asked if there will be another study now that two breaks have occurred. Ms. Walsh
stated everything will be reviewed.
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Michala Hamilton, 2901 Sumter Ave. S., stated her home was flooded both times. She
stated after the first break she heard this was an unprecedented event, but after the
second break, this does not seem rational and there should be an explanation.
Ms. Hamilton asked if Bolton & Menk will be doing the investigation. Ms. Walsh stated
there will be a committee comprised of staff and volunteers from the neighborhood to
develop a request for proposal and select a consultant.
Jeff Withers, 2905 Rhode Island Ave., asked if Mr. Hoeft had ever done work in St. Louis
Park before. Mr. Hoeft stated his company has done work in the city before ; however,
he has not.
Mr. Withers asked how this can be considered an objective review of the situation when
the city council, the city attorney, and the city insurance are all on the same side of the
court. He asked who is representing the residents and if the council will select an
independent company. He stated the city is fully liable. Mr. Mattick stated the council is
trying to balance what can be done right now to assist the community.
Denise Mueller, 2941 Rhode Island Ave. S., asked if the funding from the League
includes the same things as the city program. Ms. Keller stated the intention is to model
the city’s program after the League’s program, plus deductibles and permit fees which
are not included in the League’s program. Ms. Keller stated staff will make sure
representatives from the League address this question at the neighborhood meeting.
Ms. Mueller stated she was also involved in the second break and asked what the plan is
for paying electrical bills for fans running day and night . Ms. Keller stated the city can
look into how to address this and noted the city will also make sure there are no extra
water charges.
Lu Han, 2934 Rhode Island Ave. S., stated she was impacted by both breaks. She
expressed her extreme disappointment in how the city has handled this and how the
city has been supporting the community, which has not been enough . She asked about
the pipe that was taken out, not just the pipe that was replaced, to look for corrosion as
part of the investigation. She expected this information from the city and asked about
the pipe that was taken out on May 21 and if it was replaced. Ms. Keller stated following
the May 21 break, the section was removed and with the June 3 incident, the whole
pipe was replaced.
Mr. Hanson stated on the first break, there was a puncture on the line, and that section
was removed and saved. He added after the second break, another section of pipe was
removed and replaced. Mr. Hanson explained the old section was cut out and if there is
any indication a connection will not be a firm grip on the repair, then more of the pipe
will be cut out to have a firm connection .
Ms. Han stated based on what was said here, she does not think this is a great approach .
She stated homes cannot be cleaned nor can the release be signed until residents know
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what the financial support will be. Mayor Spano stated the council will be discussing and
considering the program this evening.
Ms. Keller stated the city is working with the League to get some funds out to residents
as soon as possible. She added the amounts that staff came up with were related to
average construction costs.
Ms. Han asked if the investigation shows the city is at fault, is there a policy covering
this. Mr. Mattick stated there is policy coverage for the city, with a cap of $2 million
through the League. Ms. Han stated she wants to understand the investigation related
to city fault as well.
Jennifer Snyder, 3010 Quebec Ave. S., stated the reimbursement programs will not
cover the costs incurred and asked why there is a loan program to pay back the city for a
pipe that broke on their watch. She asked what other contingencies are not being told
to residents and why the city is not being transparent. She asked why a waiver has not
yet been developed. Mr. Mattick stated that will be developed as part of the program
the council will decide on tonight. The city cannot develop a waiver without knowing the
terms of the program. Participants need to know the terms they are agreeing to and
what they are receiving in conjunction with a waiver.
Casey Zimmerman, 2910 Rhode Island, stated he is also selling his home and was
fortunate because he had sewage coverage. He will have to pay his deducible and asked
if the council could look at using monies he might receive to be given to others for
repairs and increase the pool of funds. Ms. Keller stated the League coverage applies to
the event as whole. Staff does not know yet how the claims will be handled in terms of
distribution, that is still being determined by the League.
Michele Becker, 7908 Minnetonka Blvd., stated she lives in the house right next to the
apartments. She is worried about the value of her home and concerned about the
shifting of the earth from the apartment, as well as the pipe construction. Ms. Keller
stated her information would be passed on to the League.
Mr. Hoeft said the pipes are buried at a certain depth. As the pipes weaken, they may be
affected, but they are designed not to be impacted by adjacent areas.
Ms. Becker stated it seems the whole section of the pipe should have been replaced
after the first incident. Mr. Hoeft stated after seeing the pipe, he looked at the first
break, noting the first break was very different from the second, and did not look like
they came out of the same break. He added it is common to find one pipe with erosion,
and then also in good shape further down the line.
Adam Salwell, 2934 Rhode Island Ave., stated the first proposal was for $30,000 and
asked if this new proposal replaces the original program. Ms. Keller stated yes, that is
correct.
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Mr. Salwell stated it now appears to cover restoration, but it was previously mentioned
there is State statute that does not cover restoration if it is not a safety issue and asked
why that has changed. Ms. Keller stated there are rules in statute related to public
purpose expenditures and how they are defined. This is one of the things staff and the
city attorney have worked through extensively to ensure the city program was designed
in a way to be as flexible as possible withing statutory guide lines.
Mr. Salwell asked about the League determining there was no city liability related to the
first break; however, when looking at call records, there was two hours to turn off the
water which led to total flooding of Quebec Avenue. He asked why there was a delay of
two hours. Ms. Keller stated staff can account for some of this in the second incident
because staff knew where to turn off the valves, because they had just been out there
two weeks earlier when the first break occurred. She added this saved a lot of time.
Mr. Salwell noted there is a gap missing with the first incident of two hours and he
would be interested in a discussion around response times . Ms. Keller stated it was a bit
less than two hours, but staff would look further at the public record of phone calls.
Mr. Salwell asked about the pipe replaced and if the pipe Mr. Hoeft viewed after the
second incident looked brand new to him. Mr. Hoeft stated that pipe was already
removed prior to him arriving and was sitting on the roadway. He added the wall
thickness of the pipe on the roadway was intact and that pipe was very different than
the pipe in the first break. He stated testing companies can look at the pipe in subjective
ways and that will be part of the data that is collected.
Theresa Wirtz, 3051 Quebec Ave. S., stated she is disabled and has not been able to
function properly since the first incident. She stated she will take the money under
duress, noting the city has not even scratched the surface of what is needed beyond
physical restoration.
Jay Ruhl, 3004 Quebec Ave., asked about timing for the League’s payment. Ms. Keller
stated that the League representatives are still working through this and will be able to
answer questions more definitively at the neighborhood meeting. She noted they will
need to allow time for all claims to be filed.
Mr. Ruhl asked if the League’s finances are public information and if they can pay the
claims. Mr. Mattick stated the League is in a very strong financial position.
Mr. Ruhl asked if the League has ever paid out a claim as big as this before. Mr. Mattick
stated he did not know.
Sinom, speaking for his aunt who lives on 2900 Sumter Ave., stated she was affected by
both incidents. He asked why the first break happened and why we are not taking a
proactive versus reactive approach to this pipeline break. He stated something more
should be done. Mr. Hoeft stated both pipes will be subject to independent testing.
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Sinom asked how long the investigation will take. Mr. Hoeft stated the city is trying to
be deliberate and a lot of thought must be put into this as it impacts the community. He
added the city deals with many watermain breaks each year.
Mayor Spano stated the question about what the city is doing to prevent this in the
future is a legitimate question. He added what is being done tonight is responding to
what has happened and the question about what will be done moving forward will
happen, but not this evening.
Troy Fliegel, 3040 Quebec Ave., asked about risk mitigation going forward with the
homes affected. He stated the programs presented are bringing the homes back to
basically where they were. He has gotten quotes adding tier three is most accessible,
given there is flexibility. He added this is the time to do the repairs.
John Honsa, 2931 Sumter Ave. S., stated this is tough and he is emotional about this. He
stated this is unprecedented and now it is expected. He asked what the council would
do if this happened in their homes. He appreciated the council’s efforts, but he does not
have confidence in the city right now. He added he will not sign a release unless he talks
to an attorney. He stated with the League, the claims will be based on actual value
versus replacement value, and the property value will go down.
Julie North, 3014 Quebec Ave., asked if the city had reached out to the state for relief.
Adam Salwell, 2934 Rhode Island Ave., stated people are trying to get a restored
confidence in the city.
Demetrios Lalos, 2851 Rhode Island Ave. S, stated he agreed with all the statements
made about confidence in the infrastructure. He added in terms of financial matters, he
is at $71,000 before the second break, so total costs are probably closer to $100,000.
Michala Hamilton, 2901 Sumter Ave. S., stated the $50,000 was an increase from
$30,000 because of estimates from other residents. She asked why everyone was not
asked for their estimates, and these amounts are ridiculous. Ms. Keller stated the
increase to $50,00 was in recognition of the second break. She added the dollar
amounts were determined by talking with the League, chief building official, residents,
and researching typical costs for similar work.
Ms. Hamilton stated these amounts do not represent the costs that residents will incur.
Lu Han, 2934 Rhode Island Ave. S., stated it is very expensive to repair pipes and she
understands that, but whatever money is used to repair a pipe is tax dollars which all
residents pay. She added to her it seems the city is cutting corners to repair the pipe and
it did not work, so it damaged homes. She stated this was a band-aid and it already
broke and impacted 55 houses. She stated she pays taxes for the city to do the work,
but this does not make sense.
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Ms. Han asked what was done this time to verify the pipe repair was done correctly,
adding she needs to see data and details as soon as possible . She asked which
companies the city talks to, with all the supply change shortages and pandemic issues,
noting these figures for pay-out to residents are not realistic at all.
Jeff Withers, 2905 Rhode Island Ave., asked if the repair that was conducted was an
advanced repair. Mr. Hoeft stated it is a common repair given the situation.
Mr. Withers asked if it would be best performed by a licensed or unlicensed contractor .
Mr. Hoeft stated it would be best performed by a contractor with ample experience to
do those repairs.
Mr. Withers asked if the city does not have contractors that have licenses, are they still
qualified to do those repairs. Mr. Hoeft stated there are different licenses for plumbers
and contractors. He stated Valley Rich made this repair, they have a lot of experience,
and they are widely used in the metro area.
Mr. Withers asked if there have been any revisions to the dispatch policy for after-hours
utility calls. He noted the first call on the first break was at 4:58 a.m. and crews
responded at 5:43 am, after the judgement call of the dispatcher. He added with the
second break, the city was there within 15 minutes, so it appears there was a revision to
the dispatch policy, or the original dispatcher did not follow policy. He asked for
clarification. Mr. Hanson stated every situation is different and there are other factors
that can come into play. He noted on the first break the first notification was with
dispatch and on the second break, the first notification was with the monitoring system,
within a minute of that call.
Mr. Hanson stated in the city water towers, within the bowl on top and as water is used,
pumps kick on to bring water levels back up and if it gets t oo low, the water monitoring
system has an alarm. He added the alarm system worked in both cases.
Fire Chief Koering stated this event does not reach the thresholds required to receive
federal, state, or county relief funds. He noted the city has reached out to the county
and other partners to try access volunteer resources to address the needs of the
community.
Mayor Spano asked what those thresholds are. Chief Koering stated he can provide that
information at the neighborhood meeting on Wednesday.
Mayor Spano stated the rest of the questions can be asked at the Wednesday night
meeting.
Ms. Keller stated there were ideas of what could be added to the eligibility list . She
asked council to provide latitude in the eligible expenses.
Councilmember Budd stated Mr. Hoeft reminded everyone of the aging infrastructure,
noting she has concerns about people not feeling safe, and that is a bigger issue. She
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stated this is unprecedented and what if it happens again – there is not endless funding,
but there are ARPA funds that can be used for the community. She supports a larger
amount in that tier than is there right now. She stated some things will need to be
balanced, but she hears those that have said $70,00 to $100,000 will be needed, and
she wants to consider this.
Councilmember Dumalag thanked everyone for their comments and asked staff if there
are homeowners that have put their homes on the market, are these funds transferable
to potential buyers. Ms. Keller stated that would need further analysis. Councilmember
Dumalag stated if this can be considered in a fair manner, she would like to see that
happen.
Mr. Mattick stated receipts must be submitted with work done in connection with the
flood, and then the signed release binds the owner and all future successors.
Councilmember Kraft thanked everyone for their comments. He visited residents on
Saturday and could feel the trauma from those affected. He has many questions about
why both breaks happened and the city’s processes. He appreciates there will be a
third-party analysis with resident volunteers choosing the consultant. He stated the
council needs to get to the bottom of this, and in the right way. He is interested in
expanding eligible expenses for reimbursement and including preventative measures to
protect homes from future events. He is also interested in exploring how the League can
address that some residents may need more funds than others.
Mr. Mattick stated under the terms of the policy with the League, the cap of $40,000
per home is the cap, but if the claims come in less, and there is room on that $2 million,
it will not be paid out, on the first claim. He added they are still waiting for an update
related to the second claim.
Councilmember Brausen stated he is sorry everyone is here tonight, noting this is
horrific for everyone. He stated the council and staff feel terrible for everyone involved.
He stated the council is trying to be as responsive as possible to provide a program that
can help people as quickly as possible. He stated there is up to $40,000 available to each
household through the League of Minnesota Cities and after that the proposed city
program would provide up to $30,000 to those affected by the first break and an
additional $20,000 to those affected by both breaks. That is up to $90,000 in relief per
household. He added the council wants everyone to be able to start restoring their
homes and lives as best they can.
Councilmember Brausen stated the city is looking at the best way to fund the relief
program, noting that impacts everyone in the community. He stated this will take time
to set up and the council and staff will try their best to move as quickly as possible. He
added the council does and will continue to look at how to handle aging infrastructure.
Replacing the entire system could cost $300-400 million, which is why a phased
approach is generally used to spread those costs out over time.
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Councilmember Budd asked for a friendly amendment to increase the $30,000 to
$60,000.
Councilmember Mohamed asked if the $60,000 would apply to both breaks .
Councilmember Budd stated she proposes the $30,000 be raised to $60,000 and the
$50,000 be raised to $80,000.
Councilmember Mohamed stated she echoes Councilmember Brausen’s thoughts. She
stated going through this a second time is unimaginable and losing trust in government
is awful. She stated she is a refugee and has lost her home, so she understands. She
stated the council represents all residents, and she worries people will eventually get
taxed out of the community, especially with inflation. She feels the proposed relief
program is the best the city can do at this time. She did not make this decision with a
light heart; she understands and feels for residents and has felt every emotion they
have felt. She stated the council will work to gain trust back and do everything they can
to ensure this does not happen again. She supports the program as proposed.
Councilmember Rog stated it is very hard to go through this a second time, noting
council is on the same side as residents and learning along with them. She feels the
council has shown up and she wants to be on the same side. She stated she was out
with Councilmember Budd last weekend and talked to people who had coverage , those
who did not, those who got two inches of water, and others that had more damage. She
is supportive of whatever plan is agreed on and supports waiving the quarterly water
bills and providing assistance for electric bills.
Councilmember Rog asked if adopted, is it possible for residents to use the loan
program to improve on what they had before. Ms. Barton stated the loan program
currently would be utilized for any expenses above and beyond what was covered in the
three other tiers, including personal property that was there before, and submitting
receipts for replacement items.
Councilmember Rog stated we are living with aging infrastructure, and this cannot be
improved tomorrow, noting that realistically, many communities are having these
issues. She stated in seeing the range of damage, we are getting close for many people,
but not for everyone. She would like staff to talk about recognizing there are some
outliers that this program will not help and to realize we need to take care of all the best
we can. She is supportive of getting the funds out right away and is supportive of
Councilmember Budd’s friendly amendment recognizing tha t not all residents will need
the full amounts.
Mayor Spano stated tonight we are working on how we will respond to help residents
get their homes repaired. He is also very interested in infrastructure repairs and having
staff review this in the future. He thanked everyone for opening their homes and their
tears, adding the council needs to hear this and they do hear this. He stated they cannot
fix it and make it like it was before, but they can provide financial support to make it
better.
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Mayor Spano added he is not in favor of Councilmember Budd’s friendly amendment .
He liked what Mr. Zimmerman had said and he is interested in approving the package in
front of council, with staff looking into a window of time for residents to get information
in about costs, and then redistribute funds at that time, for those that go beyond the
cap. He added this seems to strike the right balance, and if this budget were maxed out,
the council could consider allocating more funds in the future for those that are in need.
Ms. Keller stated staff would need to look at recommending an amount that should be
set aside for additional funding in the future.
Councilmember Kraft asked what signing the waiver means. Mr. Mattick stated the city
is paying residents with city money and this money must be used for public purposes, so
in this case it would be payment for a claim. He added that signing the waiver provides
an end point and both parties can move on. He stated if the city chooses to give more
money in the future, the city can approach residents and then the waiver can be
modified at that point, and it is to residents’ benefit as they would be receiving more
funds.
Councilmember Kraft asked if the loan were to change to the amount of money that is
set aside, would that be possible. Ms. Keller stated if the overall per household limit
were the same, then no, but if the limit were to change, then yes .
Councilmember Kraft stated he then will vote against the current proposal and would
like to add $30,000 to the city reimbursement program and remove the loan program.
He noted then it would be up to $60,000 for those impacted by the first break and up to
$80,000 for those impacted by both breaks. He stated in terms of going forward tonight,
he is comfortable with this.
Councilmember Dumalag stated she agrees with Councilmember Budd and is in favor of
increasing the amounts to $60,000 and $80,000 as reimbursement , noting there are a
wide variety of issues with each residence, and she would like to move the funding to
residents as soon as possible.
It was moved by Councilmember Brausen, seconded by Councilmember Mohamed, to
adopt the staff recommended proposal to sunset the emergency fund program adopted
on May 25, 2022, roll any expenses from that program into claims with the League of
MN Cities Insurance Trust, and adopt an expanded financial relief program to include a
reimbursement fund of up to $50,000 for qualifying expenses impacted by both the May
25 and June 3 watermain breaks, and up to $30,000 for qualified expenses for
properties affected by the May 21, 2022, watermain breaks and a loan fund to provide
for up to $30,000 additional at 0% interest for residential properties, and up to $75,000
at 2% for commercial properties utilizing the existing city reimbursement fund and to
allocate $1 million of general fund balance and $1 million of ARPA funding to fund these
programs.
The motion failed 3-4 (Councilmembers Kraft, Dumalag, Rog and Budd opposed).
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It was moved by Councilmember Budd, seconded by Councilmember Brausen, to sunset
emergency fund program adopted on May 25, 2022, roll any expenses from that
program into claims with the League of MN Cities Insurance Trust, and increase the city’s
reimbursement of up to $80,000 for qualifying expenses for properties impacted by both
the May 21 and June 3 watermain breaks and up to $60,000 for properties impacted by
the May 21 watermain break and to allocate $1 million of general fund balance and $1
million of ARPA funds to fund these programs.
Councilmember Kraft asked if this new motion covers any qualifying expenses.
Councilmember Budd stated yes, to cover water and electric bills as well.
Councilmember Mohamed asked if this motion includes the loan and if this applies to
commercial also.
Councilmember Budd amended her motion to add the following: “up to $75,000 at 2%
for commercial properties utilizing the existing city reimbursement fund.”
Councilmember Brausen seconded this as amended.
Councilmember Rog asked how exceptions might be handled. She wants to be clear to
residents and whether they have any additional options. Mayor Spano stated the
council reserves the right to change any decisions at any time; however, there is not a
plan for this right now.
Councilmember Rog stated the people that should be grilled are the insurance
companies who are not covering this, noting that folks should review their policies, as
insurance companies are not always looking out for the best interests of their
customers.
Ms. Keller stated Ms. Schmitt’s recommendation would be to set aside $4 million total
to include administrative costs, with $1 million in fund balance and $3 million of ARPA
funds.
Councilmember Kraft asked if that decision needs to be made tonight, or can the council
come back to figure this out later for the reserve funds, when we are moving from $2
million to $4 million.
Mayor Spano stated staff can come back and make change s about where the funds
come from, but the important thing is to get clarity to residents tonight .
The amended motion is as follows:
It was moved by Councilmember Budd, seconded by Councilmember Brausen to sunset
emergency fund program adopted on May 25, 2022, roll any expenses from that
program into claims with the League of MN Cities Insurance Trust, and increase the city’s
reimbursement of up to $80,000 for qualifying expenses for properties impacted by both
the May 21 and June 3 watermain breaks and up to $60,000 for properties impacted by
the May 21 watermain break, and to allocate up to $75,000 at 2% interest for
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City council meeting -15- June 6, 2022
commercial properties utilizing the existing city reimbursement fund, up to $1 million of
general fund balance and up to $3 million of ARPA funds to fund these programs.
The motion passed 6-1 (Councilmember Mohamed opposed).
Councilmember Mohamed stated she is totally in favor of getting residents the
assistance they need; however, $4 million is too large of an amount for her to approve.
Mayor Spano clarified this is up to $4 million and if all the funds are not needed, they
will not be used.
5. Boards and commissions – none.
6. Public hearings
6a. Public hearing to establish the Beltline Station 1 Tax Increment Financing
District Resolution No. 22-088
Mr. Hunt presented the staff report.
Mayor Spano opened the public hearing. No speakers were present. Mayor Spano
closed the public hearing.
It was moved by Councilmember Rog, seconded by Councilmember Mohamed, to adopt
Resolution No. 22-088 approving the establishment of Beltline Station 1 Tax Increment
Financing District (a housing district).
The motion passed 7-0.
6b. Public hearing to establish the Beltline Station 2 Tax Increment Financing
District Resolution No. 22-089
Mr. Hunt presented the staff report.
Mayor Spano opened the public hearing. No speakers were present. Mayor Spano
closed the public hearing.
It was moved by Councilmember Mohamed, seconded by Councilmember Rog, to adopt
Resolution No. 22-089 approving the establishment of Beltline Station 2 Tax Increment
Financing District (a renewal and renovation district).
The motion passed 7-0.
6c. Public hearing to establish the Wooddale Avenue Apartments Tax Increment
Financing District Resolution No. 22-090
Mr. Hunt presented the staff report.
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Mayor Spano opened the public hearing. No speakers were present. Mayor Spano
closed the public hearing.
It was moved by Councilmember Dumalag, seconded by Councilmember Kraft, to adopt
Resolution No. 22-090 approving the establishment of the Wooddale Avenue
Apartments Tax Increment Financing District (a housing district).
The motion passed 7-0.
6d. Public hearing to establish the Rise on 7 Tax Increment Financing District
Resolution No. 22-091
Mr. Hunt presented the staff report.
Mayor Spano opened the public hearing. No speakers were present. Mayor Spano
closed the public hearing.
Mayor Spano stated he will support this but noted there are costs for remediating
debris from construction of Highway 7. He asked staff if there is a way to recoup those
costs from the State.
Councilmember Brausen asked if staff confront the former church owners, or the State
on this issue. Mayor Spano stated he assumes staff should ask the state .
It was moved by Councilmember Brausen, seconded by Councilmember Mohamed, to
adopt Resolution No. 22-091 approving the establishment of the Rise on 7 Tax
Increment Financing District (a housing district).
The motion passed 7-0.
6e. Public hearing on Bridgewalk Condominium Homeowners’ Association revised
housing improvement area
Ms. Olson presented the staff report.
Mayor Spano opened the public hearing.
Libby Carlson noted she is an owner at Bridgewalk for 4.5 years and when she initially
moved in, she learned this process would start and she got on the board . Until she was
on the board, she did not realize the extent of what needed to be done . She stated the
building is 50 years old and the roof alone is $1 million to repair, with snow and rain
coming into the third-floor units. She added the roofing is crumbling, there is mold all
over, and the wood is crumbling. She stated outside all the decks must be replaced as
they are no longer safe. She added it has been neglected for a very long time and sh e
hopes the council approves this, so they can improve their homes, with 92 units
included.
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Doug Strandness, 727 Summit Ave., St. Paul, stated he has worked with the association
on this whole process. He thanked the council on behalf of the board and the
association and for considering this project. He also thanked Ms. Olson for working with
them on the process.
Mayor Spano closed the public hearing.
Councilmember Brausen stated this is the type of essential service the city can render to
help them improve their existing homes, which are affordable and naturally occurring.
He added this is well worth it and he supports this.
Councilmember Rog added she also supports this and stated it is not use of public
dollars but is a loan where the city collects fees.
Mayor Spano stated while he supports this, these affordability programs with 40-year
windows should be looked at and as council approves them, he would like to take note
of the age of buildings and ensure the council not get caught in a cycle of constantly
helping to fund buildings.
Ms. Olson stated this would be a one-time support by the city, and when getting this
funding, the building associations must present a plan of how they will not get into
these situations again the future.
It was moved by Councilmember Brausen, seconded by Councilmember Budd, to approve
first reading of an ordinance establishing the Bridgewalk Condominium Homeowners’
Association Housing Improvement Area pursuant to Minnesota statute, sections 428A.11
to 428A.21 and to set second reading for June 20, 2022.
The motion passed 7-0.
7. Requests, petitions, and communications from the public – none
8. Resolutions, ordinances, motions and discussion items
8a. Discuss scope of damage of May 21 water main break and options for impacted
residents
This item was considered directly after the consent agenda.
8b. Xchange II Medical Office Building
This item was removed from the agenda as the applicant pulled their application.
9. Communications
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Ms. Keller stated a press release on the program passed tonight will be going out as well as an
email to all residents affected.
Ms. Keller added the city’s housing authority is opening the 1-bedroom public housing list on
Mon., June 13, at 10 a.m. and the list will close on Mon., June 20, at 4 p.m. There is more
information on the city website and applicants must meet eligibility.
Councilmember Kraft thanked Ms. Keller and staff for leading the council through the
discussion tonight, being prepared, and taking care of our residents. Mayor Spano agreed,
stating he appreciated staffs’ work on this, residents’ feedback, and opening their homes to
council members.
10. Adjournment
The meeting adjourned at 10:06 p.m.
______________________________________ ______________________________________
Melissa Kennedy, city clerk Jake Spano, mayor
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