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HomeMy WebLinkAbout2016/08/15 - ADMIN - Minutes - City Council - Study SessionSt. Louis Park OFFICIAL MINUTES M I N N E 5 0 T A CITY COUNCIL SPECIAL STUDY SESSION ST. LOUIS PARK, MINNESOTA AUGUST 15, 2016 The meeting convened at 6:00 p.m Councilmembers present: Mayor Jake Spann, Tim Brausen, Gregg Lindberg, Anne Mavity, and Susan Sanger. Councilmembers absent: Steve Hallfin and Thom Miller. Staff present: City Manager (Mr. Harmening), Director of Operations and Recreation (Ms. Walsh), Director of Engineering (Ms. Heiser), Deputy City Manager/Human Resources Director (Ms. Deno), Director of Community Development (Mr. Locke), City Housing Supervisor (Ms. Schnitker), Fire Chief (Mr. Koering), Deputy Fire Chief (Mr. Wolff), Chief Information Officer (Mr. Pires), Communications and Marketing Manager(Ms. Larson), Inspection Services Manager (Ms. Boettcher), Public Works Superintendent (Mr. Hansen), Chief Financial Officer (Mr. Simon), Police Chief (Mr. Luse), and Recording Secretary (Ms. Pappas). Guest: Citizens group representing sidewalk concerns. 1. 2017 Budget Update Mr. Harmening presented a brief overview of the 2017 budget, which the council had discussed on a high level at the June 20 meeting. Tonight's discussion will focus on the general fund ' budget in order to understand the preliminary general property tax and HRA levies, leading up to the final property tax levy, which will be presented in December to the council for final approval. Staff is seeking direction on any other major changes, programs, or policies that should be evaluated during the preparation of the 2017 budget. Additionally, staff will ask the council for direction on utility rates. Mr. Simon explained that based on the preliminary budget for 2017, the levy would need to be increased by 6.5-7% He added that property taxes provide the largest portion of the general fund, and these funds tie into capital improvement plans. Mr. Harmening added that staff is currently doing a comprehensive compensation review, which includes funding for salary adjustments. The council will hear more about this in the coming weeks. He added there is $17,000 set aside in the budget to purchase wind credits from Xcel Energy and asked the council for feedback on whether staff should pursue this. He noted that wind credits cost more than regular electricity, but given the city's commitment to the environment and moving toward a zero carbon footprint, he thought this would be a good place to start. Ms. Deno noted that the climate action plan would be developed first with a consultant and then a final decision would be made on use of funds based on the finalized plan. Councilmember Mavity asked if the city is in conversations related to solar gardens, as well. Ms. Deno stated it is being looked at for City Hall and the Fire Station. Councilmember Sanger stated the council had discussed solar panels on the roof and also talked about getting rebates for this. Ms. Deno stated this plan is still under consideration. Mayor Spano asked about the $22,000 throw phone included in the capital budget request and requested more detail on this phone. Chief Luse stated this phone is used by negotiators and the emergency response team, and the current one is now 23 years old and obsolete. Because it is a critical piece of equipment, a new updated version is needed. Chief Luse added the new phone Special Study Session Minutes -2- August 15, 2016 will last 25 years, but it cannot be leased and must be purchased. Mr. Harmening asked what drives the cost of the throw phone. Chief Luse stated the durability and technology. Mr. Simon stated funds for the purchase of this phone could come from the council reserve in 2016 and will plan to move ahead with it and remove it from 2017 budget. Councilmember Brausen asked about the costs related to the race and equity initiative, noting it is a critically important topic that council has been engaged in, along with staff. Councilmember Brausen asked for the 2016 amount that was spent in this area and what the anticipated cost is for 2017. Ms. Deno stated for 2016, $30,000 is budgeted in the organizational development area of the budget for additional programs and continued training. Mr. Harmening added that given the council's commitment to this issue, there is funding set aside for continued work and programs in 2017. For 2017 there is contingency set aside for work on race and equity and also outreach. Councilmember Sanger noted there was a proposal for an addition of two fire fighters. She is concerned about paying for this, presuming the city will be getting a grant. She asked if the two fire fighters would remain in the department after the grant is completed. She also asked if the Fire Department is collecting fees to cover the costs related to the Park Nicollet program where fire fighters visit residents. Ms. Deno stated the addition of fire fighters could be phased in over two years if the grant is not received. If the grant is received, staff would start to set aside funding for each of the next two years so these positions could be retained after the grant funding expires. Fire Chief Koering noted the Park Nicollet post discharge visit pilot program has existed for 2.5 years and is not a driver on demand for staffing. He stated the Fire Department has conducted 150 visits in this time frame, but there is no revenue from the program. The department continues to have discussions with Park Nicollet and HealthPartners about healthcare and how to make changes within the community. Chief Koering added that fire prevention programs and code compliance is driving costs. In 2015, more than 1,200 times, they had more than two calls going at once. Councilmember Sanger thanked the Fire Chief for his explanation but added she is not entirely comfortable with this arrangement, especially when noting that a large number of calls are for medical assistance. She asked if the city needs another model for this or possibly needs different medical professionals for these medical calls. Mayor Spano confirmed if fire staff is responding to a home health call and a fire breaks out, the city has mutual aid agreements with other area communities to take care of the fire call. Fire Chief Koering responded this is correct. Councilmember Mavity asked Fire Chief Koering to clarify St. Louis Park's relationship with other cities and reliability on fire calls. Chief Koering stated if the Fire Department is out on another call, Edina, Golden Valley and Minnetonka provide backup for St. Louis Park, and are very reliable. Councilmember Mavity asked about the housing report and city policies related to changing ownership. She stated the city has worked to be proactive on these policies, but with Meadowbrook changing ownership and this being a private transaction, the city should consider having tools in place for any similar future transactions. She asked if there are any updates on strategies or any budget impact when being proactive on this issue. Ms. Schnitker stated there is a group that grew out of the Southwest Housing Group, which deals with affordable housing Special Study Session Minutes -3- August 15, 2016 issues. She stated these issues pose a large problem nationwide and locally. She noted the city is seeing investors coming in, making improvements to rental complexes, and increasing rents. Ms. Schnitker added there are many people working on this issue from the county and neighboring cities. The Urban Land Institute also explores what cities can do. The city will work with others on this project, focusing on the regional impact. Mr. Harmening stated that if the city provided rental assistance it would be a very large budget impact. Councilmember Mavity stated the more the city can do to work with housing partners, the better. Councilmember Brausen added he would like to see this issue be controlled by the city's affordable housing programs, noting that areas around the light rail will be in high demand and need to be affordable. He added the council will need to insist that developers provide affordable housing. Mr. Harmening asked if the council has any feedback on the estimated levy increase needed for 2017, and if so, staff will need to know this, especially if the council wants to reduce the percentage significantly. Mayor Spano noted that last year construction permit costs were at an all-time record and asked if this is expected again in 2017. Mr. Harmening stated that it is expected that construction permits will exceed the $250 million range, assuming major projects that are expected to be approved by Council will start construction this fall. Mayor Spano asked where the civic center/community center project might fit into the budget discussion, and if any funds were allocated for this. Mr. Harmening stated this is being worked on with Couneilmembers Lindberg and Hallfrn and the school district sub -group, but at this time no funds have been set aside. Mr. Simon also noted that in October, an interactive debt model for potential projects will be reviewed by the council. Mayor Spano asked how to get the city over the 14% threshold in the composting program and how much will be allocated to push forward on solid waste education. Ms. Deno stated programs and education in this area are in the solid waste fund and do not affect the general fund. Mr. Harmening stated staff will discuss this further with the council in the fall. Councilmember Mavity asked who will feel the most impact with the upcoming levy - homeowners or the commercial sector - and how is the balance at this point. Mr. Simon stated single family values went up 5.3% vs. the commercial increase of 9.6%, so there may be a shift to the commercial sector He noted staff will be able to project this better in the next few weeks when more data is received from Hennepin County. Councilmember Lindberg asked how it is going with benefits and the recent change when the city increased the employer contribution for family coverage. Ms. Deno stated the city is looking at benefits renewal now for 2017 and 2018, and things are moving in the right direction. Ms. Deno stated the change was made the city increased employer contribution for family coverage in two steps starting at 65% and now at 70%. She noted this may be looked at further. City employees were very appreciative of this coverage, and it was not brought up in contract negotiations by the unions. Councilmember Brausen stated if the 6.9% increase in the levy anticipates all the staff additions listed here, he is supportive. Mr. Harmening stated this is not yet final, but staff wants the council to be aware in advance. Special Study Session Minutes -4- August 15, 2016 Mayor Spano opened the discussion on sidewalks, recognizing the number of citizens present at the meeting carrying snow shovels. Mayor Spano noted this was an issue that has been discussed and reviewed in the past. Mr. Harmening added that the council has asked staff to look at snow removal for all sidewalks in the community. He stated staff looked at using seasonal employees, contractors, and adding staff members. He noted that if it is contracted out, the cost is over $1 million per year. Seasonal staffing would cost about $750,000 per year. Councilmember Sanger stated she brought up this question again and thinks it is past due the time when the city should be shoveling everyone's sidewalks. She stated the following points: • Sidewalks are publicly owned, provide for the safety of the public, and are not of specific benefit to the property owner. They are for everyone to use, so like roads, alleys, and streetlights, they are a public benefit. She added that sidewalks are public infrastructure, and by not plowing certain sidewalks and plowing others, the city is putting an assessment on those who have to shovel their own sidewalks. She added it is not equitable if those folks shovel or pay to have it shoveled. • Almost 60 miles are cleared by the property owner, and 48 miles are cleared by the city. There is a tax assessment on the 48 miles, and this is against the principles of equity for our residents. • The current system of classifying sidewalks is arbitrary, and it is difficult for residents to identify a neighborhood sidewalk vs. a community sidewalk. Community sidewalks help people get to schools, parks, and bus stops. However, this has been applied in an arbitrary manner. For example, Ottawa Avenue sidewalks are not plowed by the city, but those on Minnetonka Blvd. are, even though they all lead to the same bus stop. She added that this is an artificial distinction. • St. Louis Park has an aging population. In order for people to stay in their homes, the city will need to shovel their sidewalks. The city has committed to active living and walking more, so the city needs to take care of shoveling, especially since sidewalks are being added. Likewise, if the city wants to promote Connect the Park, shoveling city sidewalks must be part of the program. Councilmember Sanger stated she liked the report, noting the cost of shoveling by part time staff, and she would like to see it added to this year's budget. She added that if the council does not agree with her on this topic, then the city should not shovel anyone's sidewalk, in order to be equitable. Councilmember Lindberg stated there is an important distinction here, and the city should have policy conversations about the why and where of shoveling and also be clear about what we are doing with the Connect the Park project. He added he has concerns about using seasonal employees; and having to deal with this in labor negotiations. Councilmember Brausen stated he does not have a sidewalk or alley, but he does understand the importance of this issue. When he did have a sidewalk, he cleared the snow himself. However, he does have some discomfort with this issue and the idea of civic obligation versus homeowner obligation. He noted with diseased trees, the city has split the cost with residents. He stated he would like more information before discussing this further and noted the city's first obligation is to clean the streets. Special Study Session Minutes -5- August 15, 2016 Councilmember Mavity added she understands where this is coming from, but it should not be framed as an equity issue. She noted the city needs to focus on the problem and look at the aging population. If an elderly person is having a problem keeping sidewalks clean, then the city needs to address this problem. She added she still needs more information on this and stated it is not an issue of equity. It is an issue of what the problem is and how to get folks help for this problem. Mayor Spano added this is not just an issue for seniors. He agreed with Councilmember Mavity, stating the critical issue is about the problem and how to solve it, rather than just throwing money at it. He noted an example where he and his family helped an older next door neighbor with his snow removal, pointing out there are services, neighbors, and programs to help those in need. Mayor Spano stated these opportunities need to be explored further. Councilmember Sanger reiterated this is an issue of equitable use of tax dollars and doing for some and not doing for others. She added this needs to be consistent for all across the board. Councilmember Mavity stated there is confusion between equity and equality. Mr. Harmening stated that hiring seasonal or part-time people to clear sidewalks sounds like an easy, inexpensive fix; however, the biggest concern would be in not meeting expectations. He added there could be issues with not being able to hire a sufficient number of part-time people who are willing and able to work with an unknown schedule, and people not showing up for work when called upon. He is not confident the city could deliver, so he would not recommend it as a viable option. Councilmember Mavity added the city should be asking who cannot shovel their sidewalk, and then addressing their needs. Mayor Spano added the practicality of going door to door and asking folks does not make this an arbitrary distinction. He added the city plows the sidewalks that are most used for getting to schools and bus stops, noting he pays taxes to have sidewalks cleared in other areas of the city. He stated that at some point, there may be folks who come to the city and say "I don't have sidewalks, so I don't want to pay for shoveling," or "I don't have kids in school, so I don't want to pay for schools in the city." The consensus of the Council was to not move forward with this initiative as this time The meeting adjourned at 7:20 p.m. Meliss Keened ,City Clerk