HomeMy WebLinkAbout2023/02/13 - ADMIN - Agenda Packets - City Council - Study Session AGENDA
FEB. 13, 2023
Members of the public can attend the meeting in person, watch by webstream at
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https://www.youtube.com/user/slpcable, usually within 24 hours of the end of the council
meeting or study session.
6:30 p.m. STUDY SESSION – council chambers
Discussion items
1. 60 min. REI and fire department – community health
2. 30 min. 2023 Alley Reconstruction (4023-1500) – project update
Written reports
3. Managing change in residential areas update
4. 2022 fourth quarter investment report
The agenda is posted on Fridays on the official city bulletin board in the lobby of city hall and on the text display on
civic TV cable channel 17. The agenda and full packet are available after noon on Friday on the city’s website.
If you need special accommodations or have questions about the meeting, please call 952.924.2505.
Meeting: Study session
Meeting date: February 13, 2023
Discussion item: 1
Executive s ummary
Title: REI and fire department-community health
Recommended action: None at this time.
Policy consideration: Does the council support the trajectory of the St. Louis Park community health
work through the Community Health Alliance?
Summary: The city has a long track record of focusing on the health and wellness of its residents
through a variety of programs and initiatives over the years. The health of the community, along with its
resiliency, are critical components of any community risk reduction effort. It is with that in mind that
the fire department, along with non-profit organization Care Resource Connection, formed the
Community Health Alliance. Through this work, the right resource, at the right time, can be provided to
residents and sustained. This reduces the demands on our 911 system, connects the resident to a more
equitable level of care and better controls the overall costs of healthcare. The work of the Alliance
continues to provide innovative levels of support and the capacity to scale this work to other
communities that wish to provide similar levels of support to their residents.
Financial or budget considerations: Future action to accept donation from Park Nicollet Foundation
for $270,000.
Strategic priority consideration: St. Louis Park is committed to being a leader in racial equity and
inclusion in order to create a more just and inclusive community for all.
Supporting documents: Discussion
Prepared by: Steve Koering, fire chief
Approved by: Kim Keller, city manager
Study session meeting of February 13, 2023 (Item No. 1) Page 2
Title: REI and fire department-community health
Discussion
Background
Medical calls represent at least 70% of a fire department’s 911-response work and, of those, a similar
percentage would not require transport to a hospital if other resources were available to the patient.
Due to their own pressures, healthcare systems may discharge patients without helpful medical follow
up or assigned services; and in too many of these cases, the patient continues to struggle and again
utilizes 911, creating a cycle. This cycle disproportionately affects vulnerable residents, who are less
likely to have inclusive health care coverage and more likely to be elderly and/or people of color.
Since 2014, the St. Louis Park fire department has been actively engaged in intervening in this cycle with
the goal of reducing over-utilization of the 911 system by residents who would be better served by
connections to other resources. The first generation of this work was the Post Discharge Visit program in
partnership with Methodist Hospital and Park Nicollet. In its initial form, the program referred patients
to the fire department for post-discharge patient visits. This program was successful early on, however it
waned in effectiveness as hospitals struggled to provide referrals to the fire department.
Understanding that an updated program model was needed, in 2017 the St. Louis Park fire department
partnered with a newly incorporated non-profit, Care Resource Connection. The partnership assessed
that it would be a significantly more effective use of resources, and have a greater likelihood of success,
if work were up-streamed so that the need for repeated 911 calls was eliminated. To accomplish this,
the Community Health Alliance was developed which works to proactively address the social
determinants that create the patient’s need. Both parties bring important credibility to the work:
firefighters provide the trusted connection with community, and without Care Resource Connection, the
fire department would not be recognized as a member of the patient’s care team.
The foundation of the Alliance’s success to-date can be attributed to a structured approach which
behaves like healthcare outside the walls of the healthcare system. This approach recognizes the
program as a member of the patient care team and prioritizes the patient within the entire care team.
Today, the Community Health Alliance has been recognized by county, state and national public health
agencies as an effective model for maximizing local community-based resources, in collaboration with
public health.
Current state
The Community Health Alliance represents one of the most progressive evolutions in the delivery of
community-based care. Its vision is to improve the health and quality of life of community members. Its
current focuses include eliminating the need for 911 calls, educating young people to begin careers in
health care, providing community outreach to vulnerable populations and improving processes in skilled
nursing facilities. The benefits of these streams of work are many and the staff presentation will include
relevant statistics. While the focus to-date has been mostly in vulnerable senior populations, the
program is expanding to address other needs within the community. Staff expects the program to
continue to grow and evolve to meet emerging community needs and remain culturally responsive.
Upstreaming resources and eliminating future 911 calls: This program starts with a firefighter identifying
the high potential for continued 911 medical calls and asking the patient “are you willing and able to
receive help?” Having secured consent, the firefighter refers the patient to a care coordinator who
connects directly with the primary care team. The care coordinator acts as a hub, providing resource
referrals and transmitting doctor’s orders. Common referrals include safe home visits, care conferences
and patient follow up. The program is building toward additional referrals in medication refills, lab
draws, and telemedicine. Empowering EMS providers to connect patients with wrap-around care
resources is both an expansion on their traditional role and within the scope of their license. It also
Study session meeting of February 13, 2023 (Item No. 1) Page 3
Title: REI and fire department-community health
places the patient at the center of the healthcare system in both the clinical and non-clinical roles. The
experience here in St. Louis Park has been that significant outcome improvements can be experienced,
sustained and measured using this structured care model.
Educating young people to begin careers in health care: In 2021, the Community Health Alliance, in
partnership with Spring Lake Park Schools, introduced the Certified Nurse Assistant program to the high
school to meet the demands of students for a healthcare curriculum. In its first year, 50 students
completed the class. In 2022, the program was awarded a United Way Purpose Driven Paychecks grant
directed at first generation students working towards careers in healthcare paving the way for an
additional 100 students to complete the program that year. Another 100 are anticipated to complete
the course in 2023. United Way has recognized the unique approach and will be supporting programs in
schools mirrored after St. Louis Park’s. At the end of the certification classes, the program hosts a job
fair with prospective employers who walk students through the process of applying and securing job
interviews. Students stand for a state certification exam, which becomes a stackable credential as they
enter the workplace.
Providing community outreach to vulnerable populations: The Community Health Alliance has partnered
with Perspectives, Inc. to ensure that their clients have the medical resources and education they need.
This has included everything from residents having a connection to healthcare insurance, providers and
resources from both the community and county. The Alliance developed the Wellness Wednesday
curriculum, which includes a focus on women’s and children’s health. The programs are well attended
by Perspectives clients.
Improving processes in skilled nursing facilities: The program works to reduce the number of incidents
requiring 911 response (which triggers fire department and HCMC support). To accomplish this, the
Alliance provides regular data feedback to all nursing facilities in St. Louis Park and a care plan is
developed for impacted facility residents. The work of the Alliance during the pandemic created a
synergy and collaboration amongst all the sites who now meet regularly to share information.
Present considerations
Expanding partnerships and building social capital within this space is critical. Many have been on the
sidelines watching the program’s progress and now see an opportunity to engage. Additionally, the
expanded focus to a broader base of residents is bringing attention to the importance of race equity and
inclusion in all processes and the significance of intentionally using accepted tools to evaluate the work.
To ensure a race equity lens is being applied to the work, staff ask, “who is impacted (either benefiting
or burdened) by the work?” and collect and disaggregate data by race. Additionally, as staff are hired to
support the program (additional details below), significant focus will include native speaking in relevant
languages.
Programmatic opportunities that are being explored include:
• Culturally relevant mental health resources
• Additional education programs at the high school
• Subscription programs where families can enroll a family member for care
• Hospice home visits
Communities throughout Minnesota and the region are recognizing the positive impact of the
coordinated approach and considering ways to tailor it to their needs.
Next steps
While the Alliance has been successful in building the base for this work, achieving the long-term vision
will require additional support and tools. As a part of the partnership with Park Nicollet, their
Study session meeting of February 13, 2023 (Item No. 1) Page 4
Title: REI and fire department-community health
Foundation has agreed to fund the salary and benefits of a full-time care coordinator for three years.
(This $270,000 donation will be presented for council adoption on Feb. 21, 2023.) Additional resources
are needed for necessary office buildout and vehicle. The Alliance’s ability to implement future
programmatic opportunities will also be dependent upon appropriate staffing levels. Leadership is
committed to working to utilize grants, pai d interns and continuing to explore value-based contracts
with healthcare providers to advance the work. Including community health in Vision 4.0 conversations
would help to elevate the profile of the work and the city’s commitment to it.
Meeting: Study session
Meeting date: February 13, 2023
Discussion item: 2
Executive s ummary
Title: 2023 Alley Reconstruction (4023-1500) – project update (Ward 1, Ward 4)
Recommended action: Provide staff direction on recommended scope changes to the 2023 Alley
project. Council will be asked to take action on this project at the Feb. 21, 2023 council meeting.
Policy consideration: Does the city council support staff's recommendation to modify the scope
of the 2023 Alley Reconstruction project to allow for additional coordination and stay within the
Capital Improvement Plan budget?
Summary: On Aug. 1, 2016, the city council updated the city's Assessment Policy to no longer
assess property owners for construction of improvements that serve a public benefit. Since alleys
serve a benefit to the public, this policy changed the assessment for reconstructing alleys from
100% assessed to property owners to 0% assessment, with the city fully funding the projects.
Staff developed a 10-year plan to reconstruct all gravel and bituminous alleyways to concrete
pavement.
This is the sixth year of these projects and the adopted plan includes ten alley segments. Nine
are in the Birchwood and Bronx Park neighborhoods (ward 1) and one is in the Eliot
neighborhood (ward 4). Two of these alley segments require additional coordination work
before they will be ready for construction. The project involves shaping the alleys, addressing
drainage and constructing 10-foot-wide concrete alleys.
Reports from the industry indicate that the city should expect inflationary increases in
construction costs in 2023. This inflation is due to trucking, labor, and material costs. Capital
Improvement Plan (CIP) estimates were developed in June 2022 and, due to great instability in
inflation, a minimum inflationary level was factored into the estimate. To have a more accurate
estimate, staff reached out to contractors this winter. This resulted in an updated engineer’s
estimate that is more in line with what the city may see when bids are opened for this project.
This engineer's estimate for all ten alleys is 27% higher than the CIP. While the actual
construction cost will depend on bids received, staff did extra work to align the project scope to
the adopted budget prior to going to bid. Staff recommends that three alley segments
(including the two that require additional coordination work) be removed from the 2023 alley
reconstruction project. Construction is anticipated to begin in May, with each alley taking about
four weeks to complete. All items are expected to be completed with final restoration by
October 2023.
Financial or budget considerations: This project is included in the 2023 CIP. Funding will be
provided using pavement management (franchise fees) and stormwater utility. Additional
information on cost, staff recommended changes to the project scope which affect cost, and
funding can be found later in this report.
Strategic priority consideration: St. Louis Park is committed to providing a variety of options for
people to make their way around the city comfortably, safely and reliably.
Supporting documents: Discussion, Alleys location maps, Brunswick Alley map
Prepared by: Jack Sullivan, engineering project manager
Reviewed by: Debra Heiser, engineering director
Approved by: Kim Keller, city manager
Study session meeting of February 13, 2023 (Item No. 2) Page 2
Title: 2023 Alley Reconstruction (4023-1500) – project update
Discussion
Background
On Aug. 1, 2016, the city council updated the city's Assessment Policy to no longer assess
property owners for construction of improvements that serve a public benefit. Since alleys
serve a public benefit, the assessment for reconstructing alleys was eliminated, with the city
fully funding the projects using the pavement management fund (franchise fees) and
stormwater utility funds.
There are 21.2 miles of alleys throughout the city. At the time the assessment policy was
updated, 16 miles had a concrete surface and met the minimum standard for an improved
alley. The remaining 5.1 miles of alleys were constructed of either asphalt or gravel and
considered unimproved. The unimproved alleys require annual maintenance to keep them
serviceable. To proactively address the unimproved alleys, the council directed staff to develop
a 10-year plan to reconstruct the unimproved alleys.
The reconstruction of all unimproved alleys has the following benefits:
• Fixing drainage problems – on many of the alleys, there are areas where drainage is
blocked or runoff drains onto private property. To address these issues, the alleys
require complete reconstruction.
• Reduces erosion – where drainage does work, runoff will wash silt and gravel from the
gravel alleys into the storm sewer system, ending up in ponds, lakes and wetlands.
• Reduces annual maintenance – reconstruction eliminates the need for operations staff
to perform maintenance such as grading the gravel alleys and patching potholes in the
bituminous alleys.
• Improves neighborhood livability – there are times that these alleys are difficult to
traverse, resulting in challenges for all users of the alleys, including solid waste vehicles,
walkers, bicyclists and automobiles.
Project scope
This is the sixth year of alley reconstruction and the adopted scope in the CIP includes nine alley
segments approximately 3,070 feet in length in the Birchwood and Bronx Park neighborhoods
(ward 1) and one alley that is approximately 100 feet in length in the Eliot neighborhood (ward
4). The alleys are a mix of gravel and bituminous pavement. The project involves shaping the
alleys, addressing drainage and constructing 10-foot-wide concrete alleys.
Staff has completed the design for this project and is ready to go out to bid. However, there are
two alleys in this year's project, Alley A and Alley D, that require additional site coordination.
For this reason, staff recommends they be removed from the project scope and done in a later
year. For cost containment purposes, staff also recommends removing Alley B from the 2023
plan. Information on why staff is making this recommendation is below.
Alley A – adjacent to 1840 Jersey Avenue
Alley A is adjacent to 1840 Jersey Avenue. This gravel alley serves one property and is
effectively a driveway used to access the garage in the back of their property. It is located on
platted Franklin Avenue right of way.
There is not a public street on this segment of right of way; Franklin Avenue ends in a 3-way
intersection at Hampshire Avenue; however, the platted right of way for Franklin Avenue
Study session meeting of February 13, 2023 (Item No. 2) Page 3
Title: 2023 Alley Reconstruction (4023-1500) – project update
continues through to Louisiana Ave. There is a trail and underground utilities located in this
right of way.
Alley A – 1840 Jersey Avenue
Public works maintains the alley, removing snow, and regrading the gravel. It is not used by
solid waste; instead, the bins are brought to the curb for collection as solid waste vehicles drive
down Jersey Ave. City code prohibits parking on an alley.
Since the property owner parks vehicles on it and it accesses only one garage, this segment acts
more like a driveway than an alley. In addition to this home, there are three other single-family
homes that have garages in the back of their property with driveways on this right of way for
access to a city street. None of the other three driveways are maintained by the city.
Staff questions the public benefit for the city to continue to own and maintain the alley. To
explore a path forward where the city would no longer be responsible for ownership and
maintenance, staff began working with this property owner in August of 2022.
Staff recommends removing this alley from the 2023 project so work with the property owner
that would shift the maintenance responsibility can continue. This would reduce the
construction cost estimate by $31,882.48.
Study session meeting of February 13, 2023 (Item No. 2) Page 4
Title: 2023 Alley Reconstruction (4023-1500) – project update
Alley D – 2800 block of Brunswick Avenue – private
Alley D is shown on the attached location map is east of Brunswick Avenue and south of 28th
Street and is currently gravel. The alley provides access to five properties that are addressed off
Brunswick Avenue and back up to the Canadian P acific railroad. In 2019, public works staff was
made aware that the alley was not on public right of way, making it a private alley. The alley has
been maintained by public works for over 40 years.
Once staff became aware that this alley was private property, the city needed permission from
the property owners to drive on their land in order for the city to continue to maintain this alley
and for solid waste vehicles to serve these properties. This permission comes in the form of an
easement. All five property owners would need to grant the city an easement to convert this
alley to a public alley. A permit from Canadian Pacific is also required and is obtained once all
private easements are obtained.
Since this alley serves more than one property owner, it was determined that there was a
public benefit to having this become a public alley. Staff began communication with these
property owners in late 2019 to gauge their interest in this becoming a city-owned and
maintained concrete alley. All of them were supportive and the property owners provided, in
writing, an intent to grant easement, as well as permission to continue to perform maintenance
and solid waste service. Since that time, staff has been working with the property owners on
getting the necessary public easements.
Due to the proximity of other alleys in the CIP, this alley was incorporated into the 2023 project.
These property owners were engaged with the residents throughout the preliminary design
process in 2022. However, the residents were cautioned that staff needed all five easements by
the end of October 2022 to construct the alley in 2023. Staff extended the deadline until the
end of November 2022 to get the necessary easements. At this time, only four of the five
easements have been granted. Even if the fifth easement were obtained, at this point there
would not be time to work with the railroad.
Staff recommends that this alley be removed from the 2023 project and reconstructed later in
the program. Removing this alley is estimated to reduce the construction cost by $64,001.81.
Project cost considerations
The engineer's estimate to reconstruct all ten alleys identified in the 2023 project is significantly
greater than the CIP funding. Removing Alley A and D from the project will reduce this cost;
however, not enough.
Staff considered design changes that could reduce the overall project cost without negatively
impacting alley functionality or durability. It was determined that the most viable option is to
remove one additional alley segment from this year's construction project to stay within the CIP
funding.
This year's project has a mix of gravel and bituminous surfaced alleys. While both surface types
require annual maintenance, the gravel alleys are more of a concern than the bituminous
alleys. Due to this, staff do not recommend removing a gravel alley from the project.
Staff reviewed the remaining bituminous alleys and consulted with public works staff to identify
alleys that have maintenance concerns and should not be postponed to a future year.
In order to identify the remaining alley to be removed from the project, staff reviewed adjacent
properties on all alleys within the project to see who would be burdened by the removal of
Study session meeting of February 13, 2023 (Item No. 2) Page 5
Title: 2023 Alley Reconstruction (4023-1500) – project update
their alley from the 2023 project scope. All adjacent properties are single family homes. Staff
reviewed average property values and used Census data to review demographics.
Given both the maintenance and equity analyses, staff is recommending removing Alley B on
the 2800 block between Florida and Edgewood avenues. The removal of this alley is anticipated
to reduce the construction cost by $172,420.06.
Bid alternatives
Staff has reached out to other communities to determine if the project cost increases have
been experienced with recent bid openings. To date, no local communities have opened bids
for work that is comparable to the alley reconstruction project. Due to the unknown bidding
climate, staff is exploring contingency plans to incorporate Alley B into the bid, as a bid
alternate.
If the low bid for the base project (Alleys C-1/2,E-H-2) is significantly under the engineer's
estimate, there may be budget to allow Alley B to be inserted back into the project and stay
within the CIP.
Public process
An informational meeting was held on Nov. 15, 2022. Twenty-four people were in attendance
representing several homes in the project area. The meeting showed all ten alley segments
being reconstructed. If the recommended alley segments are removed from the project, staff
will reach back out to the affected property owners to notify them of the changes.
Financial or budget considerations
The following table outlines the estimated project cost and anticipated funding sources for this
project. It includes the removal of Alley A, B and D to illustrate the project savings.
CIP Engineer's Estimate
Construction cost $656,000 $858,867.17
Engineering and administration $99,000 $99,000.00
Subtotal $755,000 $957,867.17
Removal of Alley A $31,882.48
Removal of Alley B $172,420.06
Removal of Alley D $64,001.81
Construction engineering $13,415.22
Subtotal -$281,719.57
Total $755,000 $676,147.60
Funding Sources
Pavement management $490,750 $446,257.42
Stormwater utility $262,250 $229,890.19
Total $755,000 $676,147.60
Study session meeting of February 13, 2023 (Item No. 2) Page 6
Title: 2023 Alley Reconstruction (4023-1500) – project update
While removing alleys A, B and D allows the estimate for the remaining seven alleys to stay within
budget, the actual construction cost will depend on the bids received. Bids will be opened on
March 23; if the base bid is lower than the estimate, it will inform staff's recommendation on if
there is funding to add Alley B back into the project.
Next steps
The proposed schedule for the project to facilitate construction completion in 2023:
Council approves plans and orders ad for bid Feb. 21, 2023
Open bids March 23, 2023
City council awards construction bids April 3, 2023
Construction May to October 2023
IDAHOAVESJERSEYAVESKENTUCKYAVESLOUISIANAAVES18TH ST W
22ND ST W
Jersey ParkJersey Park
NorthsideNorthside
ParkPark
0 400 800200
Feet
2023 Alley Reconstruction - Jersey Ave S
Legend
2023 Alley reconstruction
Date: 2/7/2023
A - Gravel
Study session meeting of February 13, 2023 (Item No. 2)
Title: 2023 Alley Reconstruction (4023-1500) - project update Page 7
2023 Alley Reconstruction - West
MINNETONKA BLVD BRUNSWICK AVE SHAMPSHIRE AVE SCOLORADO AVE SGEORGIA AVE SFLORIDA AVE SEDGEWOOD AVE SDAKOTA AVE S28TH ST W
29TH ST W
Date: 2/7/2023
Legend
2023 Alley reconstruction
0 500 1,000250
Feet
B - Bituminous
C1 - Bituminous
C2 - Bituminous E - Gravel
D - Gravel and
needs easements
Study session meeting of February 13, 2023 (Item No. 2)
Title: 2023 Alley Reconstruction (4023-1500) - project update Page 8
ALABAMA AVE SMINNETONKA BLVD VERNON AVE SXENWOOD AVE SWEBSTER AVE SUTICA AVE SZARTHAN AVE SLAKESTW27TH ST W
29TH ST W
28TH ST W ALLEYYOSEMITE AVE SBirchwoodBirchwood
ParkPark
Sunshine ParkSunshine Park
Keystone ParkKeystone Park
100
0 500 1,000250
Feet
2023 Alley Reconstruction - East
Legend
2023 Alley reconstruction
Date: 2/7/2023
G - Bituminous
F - Bituminous
H1 - Gravel
H2 - Bituminous
Study session meeting of February 13, 2023 (Item No. 2)
Title: 2023 Alley Reconstruction (4023-1500) - project update Page 9
2817 BRUNSWICK AVE S
2813 BRUNSWICK AVE S
2809 BRUNSWICK AVE S
2805 BRUNSWICK AVE S
2801 BRUNSWICK AVE S
28TH ST W28TH ST W
BRUNSWICK AVE SBRUNSWICK AVE S0 100 20050
Feet
Brunswick Ave - 12' Proposed Alley Easement
12' proposed alley easement
Study session meeting of February 13, 2023 (Item No. 2)
Title: 2023 Alley Reconstruction (4023-1500) - project update Page 10
Meeting: Study session
Meeting date: February 13, 2023
Written report: 3
Executive s ummary
Title: Managing change in residential areas update
Recommended action: None. City council members may relay any questions or comments to
staff.
Policy consideration: Is the work being done and planned in relation to managing change in
residential areas in alignment with the city’s strategic priorities and city council goals?
Summary: The city council’s study session workshop on November 7, 2022, developed city
council consensus in response to the question, “How can our low-density neighborhoods
become more aligned with our adopted strategic priorities?” This activity provided staff with
consensus council direction on managing change in low-density residential neighborhoods. It
affirmed the strategic priorities and comprehensive plan goals, and prioritized efforts under this
topic to support those priorities and goals.
Staff summarized the council consensus in a written report on December 12, 2022, at the
conclusion of the housing and neighborhood-oriented development system discussion. Staff
committed to follow-up in a subsequent report noting what is currently being done, in process,
included in work plans and budgets, or unable to be done.
The report shares city activities that are underway, in process, included in 2023 work plans, or
do not have resources to advance. A great deal of information about city policies, programs and
activities were shared in the reports last fall and staff tried not to repeat that information.
Financial or budget considerations: Some of the work noted in the report will have financial
impacts through programming and staff time. Some of this work is budgeted for in the 2023
budget. Other work may need to be budgeted for in future budget cycles.
Strategic priority consideration: St. Louis Park is committed to providing a broad range of
housing and neighborhood oriented development.
Supporting documents: Discussion, planning commission 2023 work plan, 2022 zoning audit
report executive summary, zoning code update approaches and schedules schedule (phased
districts approach), station area planning schedule
Prepared by: Sean Walther, planning manager/deputy community development director
Reviewed by: Karen Barton, community development director
Approved by: Kim Keller, city manager
Page 2 Study session meeting of February 13, 2023 (Item No. 3)
Title: Managing change in residential areas update
Discussion
Background: On September 12, 2022, the city council agreed to discuss the topic of managing
change in residential neighborhoods. Council wanted to revisit the Vision 3.0 values,
comprehensive plan goals and strategies, and strategic priorities that are closely related to the
issue of managing change in existing single-family (low-density) residential neighborhoods.
In response, staff conducted a two-part city council study session to first facilitate a focused
conversation among the council members to share reflections and insights on current policy
guidance around this topic and to help broaden perspectives. Secondly, staff facilitated a
workshop that led to consensus-based group decisions.
This activity provided staff with consensus council direction on managing change in low-density
residential neighborhoods. It affirmed the strategic priorities and comprehensive plan goals,
prioritized efforts to support those priorities and goals, and answered the question: How can
our low-density neighborhoods become more aligned with our adopted strategic priorities?
Page 3 Study session meeting of February 13, 2023 (Item No. 3)
Title: Managing change in residential areas update
How can our low-density neighborhoods become more aligned with our adopted strategic
priorities?
•Housing Types
o Duplexes throughout
o More townhomes
o Larger family sized homes
o Expand number of bedrooms in single-family homes
o Multigenerational living
o Rezone for duplex/triplex/quad homes at minimal expense
o Rowhomes
o Create more ADUs (accessory dwelling units)
o More duplexes
o Smaller lot sizes and smaller homes
o Multigenerational housing
•Engagement and Education
o Neighborhoods create a work plan on how to align with goals
o Educating the community on needs
o Exposure to strategic priorities – do they know them?
o Listen to school district
o Equity in neighborhood leadership
o Events to ease concerns
o Gradual evolution
o Eliminate language barriers to housing options
•Trees and Nature
o Expand / preserve tree canopy
o Increase tree canopy
o Tree preservation (Legacy tree ordinance +)
o Tree preservation incentives or regulation
o Limit pesticide weed control
o More yards with native plantings
•$ (Financing)
o NOAH preservation incentives
o $ for incentives
o Pilot programs
o Create 30% AMI (area median income) options
o Financial assistance for smart expansion
•Culture
o Art History Walkable
o Cultural events like Wat Promwachirayan
o Cultural-specific art
o Bike land festivals
•Home Ownership
o Affordable homes to buy
o Entry-level ownership for BIPOC (Black, Indigenous, and People of Color) community
o Limit investors to preserve ownership opportunities
o More affordable home ownership opportunities
Page 4 Study session meeting of February 13, 2023 (Item No. 3)
Title: Managing change in residential areas update
•Complete Neighborhoods
o Retail gap analysis
o 5- / 15-minute neighborhoods
o More places to walk to
•Energy Efficient Homes
Staff committed to follow-up on the ideas and consensus direction from city council in a
subsequent report. The structure of this report follows the headings/themes of the city
council’s responses. Described below are the community development department’s efforts
and activities that are underway, planned, or do not have resources allocated to advancing
them.
Housing types: City council affirmed the strategic priority to provide a variety of housing types.
Council also affirmed goals, policies, and strategies identified in the comprehensive plan. This
category garnered the most responses during the workshop. It also reflected planning and
zoning efforts underway to allow for more housing types and is a priority in our work plans.
2022 zoning code audit (completed): The zoning code influences the uses, housing types,
housing scale, and development density allowed in the city. The planning and zoning division
staff, with input from the planning commission and assistance from a planning consultant,
conducted a zoning code audit in 2022. The audit revealed a number of issues that should be
addressed, including: the zoning code contains multiple barriers to the development of a range
of housing types; the zoning code’s use-based districts approach makes it challenging to use
and to achieve the city’s development goals; and the zoning code’s existing structure and
format are outdated, excessively long, and lack flexibility.
2023 residential zoning districts amendments (In-process): To address the issues revealed in the
2022 zoning code audit, staff will undertake a comprehensive update of the zoning code. The
planning commission’s 2023 work plan includes amending the residential zoning district
standards. That effort will emphasize three areas: 1) Allow duplexes in all low-density
residential areas on appropriately sized lots; 2) Allow smaller lot sizes and legalize infill
development that match smaller lot sizes already present in the city.; and 3) Define more
housing types, amend zoning districts to encourage and allow more “missing middle” housing
types (i.e. duplex, triplex, fourplex, townhome, small apartment building, etc.), and amend the
zoning map to allow them in more areas of the city.
City staff will also be recommending edits to the accessory dwelling unit (ADU) rules to reduce
or remove some of the design/setback requirements that anecdotally have stalled some people
from pursuing them further. Although staff has yet to produce a new unit that is defined as an
ADU, policy changes made as part of the ADU adoption have allowed for houses to install
second kitchens and living spaces, while having full access throughout the house, in existing
single-family houses. It is challenging to quantify the number of these that have taken
advantage of this option. ADUs and these types of improvements provide more flexibility to
meet the needs of multi-generational and nontraditional households.
Work is already underway to amend the residential zoning district regulations. The planning
commission’s first study session discussion on the topic is tentatively scheduled for March 1,
Page 5 Study session meeting of February 13, 2023 (Item No. 3)
Title: Managing change in residential areas update
2023. Staff hopes to complete the draft and begin the formal adoption process in September
2023 and complete the approvals by November 2023.
The city saw community support for these actions through the Vision 3.0 and 2040
Comprehensive Plan outreach. Additional engagement will be included in the process as the
proposed residential zoning regulations begin take shape.
2023 housing market analysis (In-process): Every 5 years, the community development
department commissions a housing market analysis to understand current housing conditions
and define housing needs for the community. The most recent update was completed in 2017;
however, due to the pandemic, the update was postponed a year to allow the housing market
to normalize before undertaking the study to ensure a more accurate picture of conditions and
needs. The city has contracted with Maxfield Research to conduct the housing study this year.
Maxfield Research has begun the study and the full report is estimated to be completed later
this summer. The report will be presented to and discussed with the city council at study
session during the housing and neighborhood-oriented development system discussion this fall.
The study will further inform analysis, priorities, and implementation of the city’s housing
programs and policies.
Engagement and education: The city engages the community through a variety of methods.
The techniques vary based on the public participation goals and the stage of the process, which
may range from informing to consulting to collaborating. The city’s strategic priorities are
embedded into most of the city’s communications.
Informing (Ongoing): The city has expanded tools to help inform. The city website is rich with
content, including Vision 3.0 reports, the 2040 Comprehensive Plan, small area plans and
studies. Dynamic and compelling tools have been added to the city website to help report the
city’s progress on affordable housing, development activity and public art (i.e. multifamily
housing dashboard, development dashboard, public art map). There are also numerous housing
and economic development activity reports and resource information. Staff help drive people
to the website resources periodically through social media posts and newsletter articles that
are sent out to the community.
Consulting (Ongoing): Many of the above policies documents and plans were developed
through consulting or collaborating with stakeholders. This may have occurred via online
surveys, open houses, virtual and in-person neighborhood meetings, “tabling” at community
events, pop-up events in neighborhoods, and recruitment of community leaders to help lead
major planning efforts through steering committees or focus groups.
The comprehensive plan process included a plan-by-neighborhood chapter and companion
community education and input process to help neighborhoods visualize the components of
the comprehensive plan as they related to their geographic area.
Staff continues to creatively reach out to broader audiences and meet with people where they
are, rather than just inviting them to come to city-hosted meetings. Recent examples of this
include both the Historic Walker Lake and Texa-Tonka Small Area Plans that were created
following the comprehensive plan process.
Page 6 Study session meeting of February 13, 2023 (Item No. 3)
Title: Managing change in residential areas update
Collaborating (Ongoing): City boards and commissions are an enduring group of community
members with whom staff collaborate closely. The community development department
liaisons most frequently with the planning commission, board of zoning appeals and housing
authority board.
The planning commission’s 2023 work plan includes a major planning effort for the areas
around all three METRO Green Line Extension stations, as well as the West Excelsior Blvd
Corridor (west of Hwy 100). The plans for these areas are now 10-20 years old. Staff will be
engaging the community in 2023 to review the current context of these areas, better align the
plans with the comprehensive plan and strategic priorities, and develop and communicate
community goals to residents, business owners and institutions, and potential development
community. These refreshed plans will also inform future efforts to update the city’s land use
and zoning maps and zoning regulations to help implement the goals.
Occasionally short-term steering committees or task forces are established to address specific
plans and issues., Vision 3.0 process and the Historic Walker Lake and Texa-Tonka small area
plans all utilized steering committees of stakeholders that helped review the processes,
communications, and final document recommendations. Staff intends to form a steering
committee to work on the station area plans, as well.
Page 7 Study session meeting of February 13, 2023 (Item No. 3)
Title: Managing change in residential areas update
Trees and nature:
Landscaping requirements for developments (completed): The city zoning code has robust
landscaping requirements for new development and new subdivisions; as well as tree
preservation and replacement regulations.
Landscaping requirements for single family residential (not currently programmed): Limited
resources and the practicality of enforcing additional regulations that might extend to existing
residential areas or new single-family houses on existing lots may present challenges as have
been discussed in previous council study sessions over the years.
Elements of this topic were raised during both the connected infrastructure and housing and
neighborhood-oriented development systems in 2022 and were ultimately deferred. The city
council and city staff will have an opportunity to revisit these discussions in a comprehensive
manner during the environmental stewardship system discussion with the city council in 2023.
Financing: The city has several tools to facilitate the city’s housing goals.
NOAH preservation and affordable housing development programming (ongoing): The Legacy
program targets both multi-family and single-family owners to help preserve naturally occurring
affordable housing (NOAH) in the community. This program encourages multi-family NOAH
property owners to sell to a non -profit or mission-oriented developer when they are ready to
divest their property. Single-family homeowners are encouraged to sell their property directly
to Homes Within Reach land trust to maintain a legacy of affordable homeownership into the
future. The city budgets financial support for Homes Within Reach annually.
The city also offers a down payment assistance (DPA) program and first-generation
homeownership program to lower income persons to make homeownership and wealth
building more accessible.
Staff is currently assembling outside resources for multifamily NOAH land trust pilot project and
has secured $3 million to date.
Staff continues to respond to strategic acquisition opportunities to further advance affordable
rental and homeownership in the city. Staff is currently working with a non-profit developer to
redevelop 4 single-family parcels that we acquired over a multi-year period. The property will
be redeveloped with 8 ownership twin homes that will be sold to lower income households.
The most challenging area of affordable housing is addressing the needs of extremely low-
income households. It takes significant resources to create housing in this category. However,
we have had success creating 30% area median income (AMI) options through the inclusionary
housing policy and use of the city’s affordable housing trust fund (AHTF). In the past three
years, 39 new 30% AMI units have been approved utilizing these two tools. Additionally, we
provide funding assistance to households through the Kids in the Park program, which added 10
additional families in 2023 increasing the number of households served from 20 to 30, and
almost 300 rent assistance vouchers administered by the housing authority. Staff routinely
Page 8 Study session meeting of February 13, 2023 (Item No. 3)
Title: Managing change in residential areas update
applies for additional vouchers through various federal programs and has been successful in
securing additional vouchers the past several years.
Home Ownership:
Residential zoning code changes (in-process): The proposed residential zoning code
amendments could provide a few more opportunities for infill development of smaller lot
single-family houses or twin homes. The EDA and city continue to work with the Greater
Metropolitan Housing Coalition land trust to develop new affordable ownership housing on the
sites we acquired on the south side of Minnetonka Boulevard near Lake Street.
NOAH preservation and affordable housing development programming (ongoing): The city’s
down payment assistance and first-generation homeownership programs mentioned above are
two important programs for making home ownership more affordable. The city’s continued
financial support of Homes Within Reach also creates affordable homeownership opportunities.
Legislative advocacy (ongoing): We will also be monitoring activity by institutional investors in
single-family rentals to determine if interventions are required, and we are tracking bills at the
State legislature regarding this issue.
Culture: City staff recognizes the community interest in having local and diverse cultural
exchanges and representation in the arts and community events.
Public art and cultural programming (ongoing/in-process): The community development
department helps with some aspects of logistics and special event permitting related to our
ongoing arts and culture grants, in partnership with St. Louis Park Friends of the Arts. In
addition to maintaining the public art map, city staff are implementing recommendations from
the public art equity audit both in our arts process, both in the committees that select artists
and have input into requests for proposals, intentional shifts in the language and advertising of
public art grant solicitations, and focused attention to better align funded activities closely the
community’s strategic priorities. Though this report focuses on community development
department’s role, we would be remiss if we did not mention the significant parks and
recreation department programming that highlights multicultural music and cultural exchange
in the community, such as concerts at the amphitheater, Black History Month spotlight in the
parks of Black/African American city and school district employees this year, the city’s first
Juneteenth celebration in 2022, and a growing list of other examples.
Complete neighborhoods:
Consideration of commercial nodes in residential neighborhoods (not currently programmed):
Later phases of efforts to update the zoning code and map may consider code or map
amendments to broaden locations where small businesses and neighborhood commercial
services could be offered. To support more businesses in more areas of the city generally
requires more households in a service area and/or intersections with higher levels of traffic. We
have not programmed any commercial market analysis of the city.
Page 9 Study session meeting of February 13, 2023 (Item No. 3)
Title: Managing change in residential areas update
Energy efficient homes:
Residential energy efficiency (ongoing): The building and energy department leads the city’s
climate programs and collaborates with community development staff. The programs tailored
to low density housing are summarized below.
In 2023, the city replaced its residential energy efficiency rebate matching program with a new
program for one- to four-unit homes, “Climate Champions for Homes.” Under this program, the
city will match utility rebates for energy efficient equipment and air sealing/insulation projects.
Utility rebates are not yet available for heat pumps and heat pump water heaters, so the city
will provide direct rebates up to $2,500 and $1,000, respectively. Higher cost share amounts
will be provided to properties that fall into specific environmental justice priority areas.
To qualify, residents must have a Home Energy Squad “Planner” visit (or have received one
within the past 36 months) so that they understand which projects will provide the greatest
energy efficiency benefit.
Any property that completes a “Climate Champions for Homes” project is eligible for a rooftop
solar cost share bonus from the city, with the dollar amount tied to the percentage of
greenhouse gas emissions reduced under their energy efficiency/electrification project.
St. Louis Park is collaborating with other Minnesota cities to create an educational website and
engagement initiative for residents called “Electrify Everything MN.” More information will be
coming soon.
Page 10 Study session meeting of February 13, 2023 (Item No. 3)
Title: Managing change in residential areas update
Planning commission 2023 work plan
Time
Frame
Initiative Strategic
Priorities
Purpose
(see last page for definitions)
Ongoing Review development
applications; hold study
sessions and hearings in
order to make informed
recommendations to city
council.
☐New
Initiative
☒Continued
Initiative
☒Ongoing
Responsibility
☐1 ☐ 2
☒3 ☐ 4
☒5 ☐N/A
☐Commission Initiated Project
☐Council Initiated Project
☐Report Findings (council
requested)
☒Formal Recommendation
(council requested)
Ongoing Identify strategies to
broaden participation and
reduce barriers to public
participation.
☐New
Initiative
☒Continued
Initiative
☒O ngoing
Responsibility
☒1 ☐ 2
☐3 ☐ 4
☒5 ☐N/A
☐Commission Initiated Project
☐Council Initiated Project
☐Report Findings (council
requested)
☒Formal Recommendation
(council requested)
Q1 2023
–Q4
2023
Update light rail station
area plans
☐New
Initiative
☒Continued
Initiative☐Ongoing
Responsibility
☐1 ☐ 2
☒3 ☒ 4
☐5 ☐N/A
☐Commission Initiated Project
☒Council Initiated Project
☐Report Findings (council
requested)
☒Formal Recommendation
(council requested)
Q2 2022
–Q3
2023
Review residential
districts, including two-
family dwelling units
(twin homes and
duplexes) on
appropriately sized lots
in low density residential
areas.
☒New
Initiative
☐Continued
Initiative☐O ngoing
Responsibility
☐1 ☐ 2
☒3 ☐ 4
☐5 ☐N/A
☐Commission Initiated Project
☒Council Initiated Project
☐Report Findings (council
requested)
☒Formal Recommendation
(council requested)
Q4 2022
–Q1
2023
Review temporary use
regulations
☐New
Initiative
☒Continued
Initiative☐Ongoing
Responsibility
☐1 ☐ 2
☒3 ☐ 4
☐5 ☐N/A
☒Commission Initiated Project
☐Council Initiated Project
☐Report Findings (council
requested)
☒Formal Recommendation
(council requested)
Q3 2023
-Q2
2024
Transit oriented
development zoning
regulations
☒New
Initiative
☐Continued
Initiative☐O ngoing
Responsibility
☐1 ☒ 2
☒3 ☒ 4
☐5 ☐N/A
☐Commission Initiated Project
☒Council Initiated Project
☐Report Findings (council
requested)
☒Formal Recommendation
(council requested)
Page 11 Study session meeting of February 13, 2023 (Item No. 3)
Title: Managing change in residential areas update
Q2-Q3
2024
Hold a planning
commission meeting at an
off-site location to foster
community relationships.
☒New
Initiative
☐Continued
Initiative
☒Ongoing
Responsibility
☐1 ☐ 2
☐3 ☐ 4
☒5 ☐N/A
☒Commission Initiated Project
☐Council Initiated Project
☐Report Findings (council
requested)
☐Formal Recommendation
(council requested)
Q3-Q4
2024
Racial equity and inclusion
training. Possibly joint
training with other boards
and commissions like ESC
and police advisory
commission. Alternatively,
staff will share information
or resources regarding the
latest city policies and
activities that intersect
with the planning
commission’s work plan.
☒New
Initiative
☐Continued
Initiative☐O ngoing
Responsibility
☒1 ☐ 2
☐3 ☐ 4
☐5 ☐N/A
☐Commission Initiated Project
☐Council Initiated Project
☐Report Findings (council
requested)
☒Formal Recommendation
(council requested)
Parking Lot
Items that are being considered by the board/commission but not proposed in the annual work plan are
included in the “parking lot” below. Future council approval will be needed if the board/commission
decides they would like to move forward with an initiative.
Initiative Comments
Water conservation
and water recycling
Explore ways to encourage reduced water use, capture and reuse of storm
water, and protect ground water resources.
Housing analysis Explore setting policy targets for different housing types in the city based on
present inventory and unmet demand and promote homeownership
opportunities as well as inclusionary housing goals.
Transitional
industrial zoning
district
This item was identified in the comprehensive plan. Several amendments have
been made to the existing industrial districts that reflect elements of this idea
through applicant-driven requests in the past two years. For this reason, it is a
lower priority.
City of St. Louis Park Strategic Priorities
1.St. Louis Park is committed to being a leader in racial equity and inclusion in order to
create a more just and inclusive community for all.
2.St. Louis Park is committed to continue to lead in environmental stewardship.
3.St. Louis Park is committed to providing a broad range of housing and neighborhood
oriented development.
4.St. Louis Park is committed to providing a variety of options for people to make their
way around the city comfortably, safely and reliably.
5.St. Louis Park is committed to creating opportunities to build social capital through
community engagement.
Page 12 Study session meeting of February 13, 2023 (Item No. 3)
Title: Managing change in residential areas update
Zoning Code Audit Executive Summary
December 16, 2022
Purpose of code audit
In 2022, the City of St. Louis Park undertook this Zoning Code Audit to identify current zoning code
issues, opportunities for improvements, and priorities for code updates. Since the city’s last full zoning
code update occurred in 1992, the city has identified the need for a comprehensive review and update
of the zoning code. Over the last 30 years, targeted updates have been made to address specific needs,
but a comprehensive update has not been completed to address code inconsistencies, eliminate
redundancies, and improve usability. A zoning code update is also needed to complete implementation
of the 2040 Comprehensive Plan that was adopted in 2019. The Zoning Code Audit was led by HKGi, a
Minneapolis-based consulting firm with extensive experience in zoning code audits and updates, as well
as previous experience and familiarity with St. Louis Park’s planning and zoning issues.
Code Audit Components
The Zoning Code Audit consists of two components:
1.Zoning Code Structure Audit – General evaluation of the overall zoning code structure
and ease of use. The audit also included research and analysis related to alternative
zoning code approaches, including form-based codes, performance-based codes, unified
development codes, and hybrid codes.
2.Housing Types Barriers Audit - Focused evaluation of the zoning code’s barriers to
allowing a broad range of housing types.
Findings and recommendations
Findings
1.Zoning code contains multiple barriers to the development of a range of housing
types.
•80% of the city’s residential zoned land allows only single-family detached
houses.
•Structure of the residential districts prioritizes single-family housing and
separating it from other housing types.
•Zoning code does not define a broad range of housing types, e.g. “Missing
Middle Housing.”
•Density/lot size standards do not support a range of housing types.
•Most housing types are not permitted without specific conditions or a CUP.
2.Zoning code’s use-based districts approach makes it challenging to use and to achieve
the city’s development goals.
•Existing use-based districts don’t reflect modern development practices.
•Code‘s focus on use-based districts results in redundancy and an excessively long
code.
•Code’s excessive reliance on conditions for uses makes it more complex and less
flexible.
3.Zoning code’s existing structure/format is outdated, excessively long, and lacks
flexibility.
•Code’s multiple levels of standards (all districts, district types, district-specific,
use-specific) results in inconsistencies and makes it confusing to use.
Page 13 Study session meeting of February 13, 2023 (Item No. 3)
Title: Managing change in residential areas update
•Reliance on text and lack of tables/graphics makes the code excessively long and
hard to use.
Recommendations
1.Conduct a comprehensive review and update of the zoning code.
•A full code update will ensure a more unified development code
•Reorganize articles/divisions/sections, particularly related to multiple levels of
standards.
•A phased approach could enable priority updates to occur prior to a full code
update, e.g. removal of barriers to development of housing types.
2.Transition from the existing code’s use-based residential uses and districts to more
flexible housing types and mixed residential/use districts.
•Update residential uses to include Missing Middle Housing.
•Update residential uses standards (dimensional, density, architectural,
performance, etc.).
•Update/consolidate residential districts.
3.Transition from the current use-based structure/format to a hybrid and
streamlined/unified development code.
•Mix of use-based and form-based districts and standards.
•Tables for uses, standards, and procedures will reduce redundancies and
inconsistencies.
•Tables and graphics will reduce the code’s complexity and increase its ease of
use.
Planning commission’s comments
•Based on today’s allowed housing types in residential districts and the current zoning
map, many neighborhoods have no chance for mixed-density residential development.
•The city could overlay R-1 and R-2 lot area/width analysis maps on the mapped
neighborhoods with racially restricted covenants to identify the overlap of single-family
residential subdivisions and zoning with racially restricted covenants.
•In some neighborhoods, most lots do not meet the applicable R-1 or R-2 minimum lot
area/width standards.
•Need for understanding patterns in the lot sizes of single-family zoning, e.g. era the
houses were built, proximity of the housing to natural areas (creeks, lakes, nature
preserves), other patterns noted in the meetings.
•The desire to have residential districts’ names and regulations focused on what can be
built there, not who lives there (single-family, two-family, etc.). For example, the code’s
duplex language is focused on the built form of the housing.
•Important to identify the high-level comprehensive plan goals and strategies that relate
to and support the zoning code audit.
•It would be beneficial to have a sense of people not being able to find affordable
housing and the impacts of the residential districts’ regulations on this situation.
Page 14 Study session meeting of February 13, 2023 (Item No. 3)
Title: Managing change in residential areas update
Page 15 Study session meeting of February 13, 2023 (Item No. 3)
Title: Managing change in residential areas update
Station Area Planning Schedule
Meeting: Study session
Meeting date: February 13, 2023
Written report: 4
Executive s ummary
Title: 2022 fourth quarter investment report
Recommended action: None at this time.
Policy consideration: Reporting on investments each quarter is part of our financial
management policies.
Summary: The quarterly investment report provides an overview of the City’s investment
portfolio, including the types of investments held, length of maturity and yield.
Financial or budget considerations: The total portfolio value on December 31, 2022, is $98.6
million. Approximately $38.5 million of the portfolio is invested in securities that include
certificates of deposit, U.S. Treasury notes, federal agency bonds and municipal debt securities
with maturity dates ranging from less than a year up to 6 years. The remainder of the portfolio
is invested in money market accounts so that cash is available for capital project expenditures,
debt service and operating cashflow needs between property tax settlements, as well as future
investment opportunities. Interest rates on both the money market accounts and new
securities purchased increased again in the fourth quarter. The overall yield to maturity of the
portfolio is 2.88% compared to 1.97% last quarter and .52% at the end of 2021.
Strategic priority consideration: Not applicable.
Supporting documents: Discussion
Investment Portfolio Summary
Prepared by: John Cooper, accountant
Reviewed by: April Weller, finance manager
Approved by: Kim Keller, city manager
Study session meeting of February 13, 2023 (Item No. 4) Page 2
Title: Fourth quarter investment report (Oct – Dec 2022)
Discussion
Background: The City’s investment portfolio is focused on cash flow needs and investment in
longer term securities in accordance with Minnesota Statute 118A and the City’s investment
policy objectives of: 1) preservation of capital; 2) liquidity; and 3) return on investment.
Present considerations: The total portfolio value increased by $10.9 million to $98.6 million
between September 20, 2022, and December 31, 2022. The increase is due to available cash
being placed in the money market and purchases of additional Treasuries from the receipt of the
second half property tax settlement. We anticipate the overall investment portfolio to decrease
in the first quarter of 2023 due to debt service payments due on February 1, 2023.
Interest rates continued to increase in the 4th quarter. The overall yield to maturity of the
portfolio is 2.88% up from 1.97% on September 30 and .52% at the end of 2021. This is the
combined yield including both liquid funds held in money market accounts and long-term
investments. Interest rates on money markets were near zero at the end of 2021 but are now
over 3%. The two-year Treasury, a benchmark used by cities for yield comparison of their
portfolio, has gone from .73% on December 31, 2021 to 4.41% on December 31, 2022. As
securities mature in the portfolio and are replaced with new investments, we anticipate the yield
to maturity will continue to increase.
The money market accounts ensure there is cash available to fund payroll, operating and capital
project expenses and debt service payments between the June/July and December property tax
settlements, as well as one-time cash requirements such as the loan to STEP and the purchase of
the commercial building at 4300 36 ½ Street earlier this year. It also keeps cash available for
buying new investments in the higher interest rate environment. Approximately $4.25 million of
Treasury notes and CD’s will mature by the end of the 4th quarter. These maturities are
structured for payment of debt service on February 1, 2023.
A breakdown of the portfolio at December 31, 2022 compared to September 30, 2022 is shown
below and in more detail in the attachment.
Next steps: None at this time.
9/30/22 12/31/22
<1 Year 71% 69%
1-2 Years 7% 12%
2-3 Years 11% 12%
3-4 Years 6% 3%
>4 Years 5% 5%
9/30/22 12/31/22
Money Markets/Cash $47,988,284 $54,342,843
Commercial Paper/Other $5,493,635 $4,395,152
Certificates of Deposit $3,193,207 $2,688,763
Municipal Debt $8,149,120 $9,730,674
Agencies/Treasuries $22,914,229 $26,298,679
City of St. Louis Park
Investment Portfolio Summary
Decwember 31, 2022
Institution/Broker Investment Type CUSIP Maturity Date
Yield To
Maturity Par Value
Market Value at
12/31/2022
4M Fund Liquid Asset Money Market 3.48%20,944,702 20,944,702.4 728,876
4M Fund Term Series 11/30/2023 4.60% 5,000,000 5,000,000 230,000
4M Fund Plus Money Market 3.45%28,280,647 28,280,647 975,682
UBS Institutional Money Market 2.31% 117,494 117,494 2,714
54,342,843
UBS Comm Paper - First Boston NY 2254EBNP2 01/23/2023 3.93% 395,152 395,152 15,529
4M Fund CD - Collateral - Pentagon Federal Credit Union, VA 01/20/2023 0.50% 5,000,000 5,000,000 25,000
5,395,152
UBS CD - Texas Exchange Bk TX 88241TNG1 02/04/2025 1.35% 245,000 229,126 3,308
UBS CD - Amer Express Natl UT 02589ABM3 03/03/2025 1.80% 245,000 230,969 4,410
UBS CD - CDG Community Bank, MD 12527CFL1 03/11/2026 3.80% 245,000 239,426 9,310
UBS CD - Goldman Sachs Bank UT 38149M3C5 03/16/2026 2.00% 245,000 226,177 4,900
UBS CD - Comenity Bank DE 981993FX1 03/18/2026 2.00% 200,000 183,300 4,000
UBS CD - Capital One Bank VA 14042RQZ7 05/04/2026 3.00% 245,000 233,110 7,350
UBS CD - Capital One Bank VA 14042TFV4 05/04/2026 3.00% 245,000 233,110 7,350
UBS CD - National Bank WI 633368GC3 06/03/2026 3.10% 245,000 233,544 7,595
UBS CD - State Bank of Indi NY 856285E98 02/01/2027 1.75% 245,000 219,322 4,288
UBS CD - Beal Bank Plano TX 07371AYL1 02/17/2027 1.85% 245,000 219,914 4,533
UBS CD - Beal Bank NV 07371CG37 02/17/2027 1.85% 245,000 219,914 4,533
UBS CD - Medallion Bank UT 58404DNF4 03/08/2027 2.00% 245,000 220,850 4,900
2,688,763
UBS Muni Debt - San Jose CA Txbl GO 798135H51 09/01/2023 2.13% 650,000 639,561 13,845
UBS Muni Debt - Westminster Colo Pub Schools 960666AC9 12/01/2023 2.60% 840,000 808,853 21,874
UBS Muni Debt - New York St Urban Dev Bds 64985TAZ4 03/15/2025 1.90% 300,000 283,545 5,712
UBS Muni Debt - S. Washington Co Sch Dist 840610QK8 06/01/2025 3.29% 250,000 250,685 8,235
UBS Muni Debt - S. Washington Co Sch Dist 840610QK8 06/01/2025 3.25% 375,000 376,028 12,191
UBS Muni Debt - Univ of Calif Gen Rev Bds 91412GU94 07/01/2025 2.51% 600,000 577,002 15,042
UBS Muni Debt - New York City Trans Fin Auth Bds 64971XAW8 08/01/2025 3.42% 240,000 227,508 8,208
UBS Muni Debt - CA St Univ Bds 13077DQD7 11/01/2025 1.51% 750,000 671,183 11,355
UBS Muni Debt - Nassau Cnty NY Interim Fin Auth 631663RF0 11/15/2025 3.39% 140,000 124,117 4,743
UBS Muni Debt - New York NY City Transit 64971XSW9 5/1/2026 4.70% 200,000 176,720 9,390
UBS Muni Debt - New York NY City Transit 64971XSW9 5/1/2026 4.64% 195,000 172,302 9,046
UBS Muni Debt - Massachusetts St Sch Bldg Bds 576000ZF3 08/15/2026 3.00% 700,000 614,425 21,000
UBS Muni Debt - Massachusetts St Sch Bldg Bds 576000ZF3 08/15/2026 3.46% 350,000 307,213 12,107
UBS Muni Debt - LAKE CO IL CONS S/D # 50 508624LP6 11/1/2026 4.64% 110,000 96,103 5,100
UBS Muni Debt - NEW YORK NY CITY TRANSI 64971XMF2 11/1/2026 4.63% 135,000 121,773 6,249
UBS Muni Debt - North Dakota Pub Fin Auth 65887PWD3 12/01/2026 1.35% 500,000 445,310 6,755
UBS Muni Debt - New York City Trans Fin Auth Bds 64971XLS5 05/01/2027 3.63% 160,000 141,597 5,805
UBS Muni Debt - La Habra CA Pension Oblig Bds 503433AF1 08/01/2027 1.90% 500,000 438,435 9,510
UBS Muni Debt - NEW YORK NY CITY TRANSI 64971XD39 8/1/2027 4.70% 225,000 190,001 10,582
UBS Muni Debt - Alabama Fed Aid Hwy 010268CP3 09/01/2027 1.50% 700,000 605,633 10,521
UBS Muni Debt - Connecticut St Health Auth Bds 20775DLB6 11/01/2027 2.16% 500,000 428,550 10,800
UBS Muni Debt - New York Taxable GO Bnds 64966ML31 12/01/2027 2.23% 400,000 378,468 8,928
UBS Muni Debt - LAKE CNTY IL CMNTY CONS 508759KL0 1/1/2028 4.77% 115,000 108,667 5,480
UBS Muni Debt - LAKE ZURICH IL 511444RK9 2/1/2028 4.79% 140,000 128,474 6,703
UBS Muni Debt - NEW YORK NY CITY TRANSI 64971XSY5 5/1/2028 4.77% 410,000 340,316 19,557
UBS Muni Debt - New York City Trans Fin Auth Bds 64971XD47 08/01/2028 1.95% 500,000 411,635 9,735
UBS Muni Debt - San Ramon Valley CA Uni Tax 7994082H1 08/01/2028 1.69% 500,000 423,415 8,450
UBS Muni Debt - WHEATON IL CORP PURP 962727PB3 12/1/2028 2.07% 140,000 117,683 2,898
UBS Muni Debt - NEW YORK ST URBAN DEV CO 64985TDF5 3/15/2029 2.25% 150,000 125,475 3,375
9,730,674
UBS US Treasury Note 912828N30 12/31/2022 2.78% 1,675,000 1,475,000 46,565
UBS US Treasury Note 912828N30 12/31/2022 2.51% 1,475,000 1,675,000 37,023
UBS FHLB 3130AJ7E3 02/17/2023 1.44% 620,000 617,737 8,928
UBS US Treasury Note 912828R69 05/31/2023 2.53% 350,000 988,240 8,855
UBS US Treasury Note 912828R69 05/31/2023 1.83% 1,000,000 345,884 18,300
4M Freddie Mac 3137EAEY1 10/16/2023 4.44% 1,000,000 964,487.53 44,400
UBS US Treasury Note 912828T91 10/31/2023 1.55% 75,000 73,140 1,163
UBS US Treasury Note 912828T91 10/31/2023 1.48% 450,000 438,840 6,660
4M US Treasury 91282CDV0 01/31/2024 4.44% 1,000,000 959,648.00 44,400
UBS FHLB 3130AFW94 02/13/2024 2.58% 500,000 487,860 12,900
4M US Treasury 912828X70 04/30/2024 4.44% 1,000,000 965,156.00 44,400
UBS US Treasury Note 912828XX3 06/30/2024 1.55% 600,000 1,010,216 9,300
UBS US Treasury Note 912828XX3 06/30/2024 1.66% 1,600,000 1,106,427 26,560
UBS US Treasury Note 912828XX3 06/30/2024 0.85% 1,150,000 1,106,427 9,775
UBS US Treasury Note 912828XX3 06/30/2024 1.36% 350,000 336,739 4,760
UBS US Treasury Note 912828XX3 06/30/2024 1.66% 260,000 250,149 4,316
UBS US Treasury Note 912828XX3 06/30/2024 0.41% 475,000 457,002 1,948
4M US Treasury 912828Y87 07/31/2024 4.44% 1,000,000 956,875.00 44,400
UBS FHLB 3130AGWK7 08/15/2024 1.55% 175,000 166,311 2,713
UBS US Treasury Note 91282CCT6 08/15/2024 0.41% 850,000 794,385 3,485
4M US Treasury 91282CDB4 10/15/2024 4.44% 1,000,000 934,414.00 44,400
UBS US Treasury Note 912828YY0 12/31/2024 0.32% 1,900,000 1,804,563 6,080
UBS Fannie Mae 3135G0X24 01/07/2025 1.69% 500,000 497,200 8,450
UBS Freddie Mac 3137EAEP0 02/12/2025 1.52% 650,000 614,536 9,880
UBS Freddie Mac 3137EAEP0 02/12/2025 1.52% 750,000 707,205 11,400
UBS US Treasury Note 912828ZW3 06/30/2025 0.36% 150,000 657,285 540
UBS US Treasury Note 912828ZW3 06/30/2025 0.58% 725,000 2,991,780 4,205
UBS US Treasury Note 912828ZW3 06/30/2025 0.39% 575,000 135,990 2,243
UBS US Treasury Note 912828ZW3 06/30/2025 0.72% 3,300,000 521,295 23,760
UBS US Treasury Note 91282CBC4 12/31/2025 0.75% 725,000 648,592 5,438
UBS US Treasury Note 91282CBC4 12/31/2025 0.70% 750,000 670,958 5,250
UBS US Treasury Note 91282CBC4 12/31/2025 0.82% 350,000 313,114 2,870
UBS US Treasury Note 91282CBC4 12/31/2025 0.57% 700,000 626,227 3,990
26,298,679
GRAND TOTAL 98,456,112 2,836,825
Current Portfolio Yield To Maturity 2.881%
Study session meeting of February 13, 2023 (Item No. 4)
Title: 2022 fourth quarter investment report Page 3