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HomeMy WebLinkAbout2024/03/25 - ADMIN - Minutes - City Council - Study SessionOfficial minutes City council study session St. Louis Park, Minnesota Mar. 25, 2024 The meeting convened at 5:37 p.m. Council members present: Mayor Nadia Mohamed, Paul Baudhuin, Tim Brausen, Sue Budd, Yolanda Farris, Lynette Dumalag, and Margaret Rog Council members absent: none Staff present: City manager (Ms. Keller), city attorney (Mr. Mattick), deputy city manager (Ms. Walsh), finance director (Ms. Cruver), housing supervisor (Ms. Olson), community development director (Ms. Barton), administrative services director (Ms. Brodeen), communications director (Ms. Smith), deputy city clerk (Ms. Scott-Lerdal), park and recreation director (Mr. West), Lt. Mikael Garland Guests: St. Louis Park residents Discussion items. 1. Pre-eviction notice ordinance amendment. Ms. Barton and Ms. Olson presented the report. Council Member Dumalag asked about the response rate on the survey to learn about the outreach from staff. Ms. Olson stated 287 responses were submitted. Of these responses, 41 were from renters, 101 were from rental property owners or managers, 98 were from community members, 31 were “other” and 16 responses were from advocates. She added of the 101 rental property owners or managers, 19 identified as affordable housing, NOAH or mixed-income owners. Staff attempted to reach out to non-profits, none responded. Council Member Dumalag noted non-profits typically hold onto properties indefinitely and that was why she asked for the distinction. Council Member Brausen read a letter received from Common Bond, a non-profit organization that manages affordable housing in the city. Council Member Budd asked if the council is being asked to review the 30-day eviction notice for non-payment only. Ms. Barton confirmed this specifically relates to non- payment of rent or financial obligations. Council Member Budd asked if violence or property damage are exempt from the 30-day eviction notice. Ms. Barton stated yes, it is purely for financial obligations. Council Member Brausen asked how the court would know this. Ms. Barton replied that when an eviction is filed, the owner must give a cause. Council Member Brausen asked how staff monitors this. Ms. Olson stated the court monitors this. The court requires lots of documentation when a case is filed, including documents such as DocuSign Envelope ID: B7BCE580-73D2-45BC-938E-15B830011EA0 Study session minutes -2- Mar. 25, 2024 notices and lease. There would also be a different type of notice for seeking an expedited eviction. Council Member Rog asked about the 30-day notice, what is the practicality or opportunities/challenges around excluding single-family townhome, duplex, or condominium residents and focusing on multi-family properties. Ms. Barton stated this would be challenging for the courts to know when an eviction is filed and by the city ordinance if it applies to a single- or multi-family unit, noting it would provide a layer of confusion. Mayor Mohamed referenced the timeline that was shared and asked if staff could walk the council through the 14 and 30-day notice period. Ms. Olson stated there are some assumptions and it depends on when a landlord issues a notice. She reviewed the timeline included in the staff report. Council Member Rog thanked the housing team for their ongoing work for renters within the community. Regarding the 30-day notice, her goal is to keep folks housed and not to prolong the period of non-payment, but to stabilize. She noted she does support the landlords, but stated the data shows it takes more than two weeks to resolve these issues, and 30 days gives a greater likelihood to resolve issues. She added if dire outcomes are attained, then we can say it did not work, but she will stand with the renters on the 30-day notice period. Council Member Farris also thanked staff for their work on this and added when a renter first rents an apartment, they are expected to pay one to two month’s rent as a security deposit, depending on their credit score. She stated the landlord is not losing rent in this practice. She went on to say that she wants to see people stay housed. Council Member Farris clarified that it is not that she does not care about landlords, but if a renter loses their job, it is difficult to come up with rent in 14 days. She stated if we care about our community, we need to go with 30 days’ notice. Council Member Dumalag thanked housing staff for the report and their work. She spoke about her experience on several non-profits housing boards. She stated an unintended consequence of the eviction moratorium was that people did not pay rent, and regardless of the reason behind nonpayment, the city was very close to losing some affordable non-profits. She stated these non-profits did receive $15 million from the state in support, but these unintended consequences could be detrimental. Council Member Dumalag stated although the survey did not include affordable non-profits, she spoke with some of the organizations. Prior to the COVID-19 pandemic, the collection rate for renters was 97% who paid on time, and now it is 85%. She added Via Sol just went through receivership, and there is debt which comes the first of every month. Her concern is if these properties will potentially sell, and the for-profit owners will be the only owners in town. She added the city might see a preponderance of renters being asked for three month’s security deposit. Evaluating this data is why she will not support the 30-day notice. Council Member Brausen added he does not support extending the notice period to 30 days. He stated that 30 days will pose a hardship to landlords over time, and they will be looking at losing two months or more rent with an eviction. He stated he is also worried about the 30-day DocuSign Envelope ID: B7BCE580-73D2-45BC-938E-15B830011EA0 Study session minutes -3- Mar. 25, 2024 notice driving up housing costs in St. Louis Park because landlords will look to make a profit on their property. For-profit landlords will look to be made whole and will increase damage, rental deposits or charge higher application fees. The vast majority of tenants will then be paying for the ones that get evicted. Council Member Brausen added the feedback from rental assistance resources like STEP and Hennepin County indicated that the biggest issue in requesting rental assistance is the time involved in getting full information from the tenants, and not about the county or STEP not issuing the check soon enough. He stated that is hard to put together, but most landlords just want to get paid and do not want to evict because it is costly every time. He added extending the eviction notice period will not alleviate the situation but will just make it more pervasive as people often avoid action in difficult situations until they must act. He stated that a notice of 14 days is just the start of the process, but the full action time to get a renter evicted is six weeks, so there is time to pull funds together. Council Member Brausen added staff did not recommend the proposed 30-day notice; it was the city council who proposed it. The state of Minnesota proposed a 14-day notice and asked the council to observe and then decide. Tenants in need of rental assistance can obtain it through the city, the county and tenant advocacy organizations. Council Member Budd stated she agreed with parts of Council Member Brausen’s comments related to being in both parties’ interests. She noted the impact on the person being evicted, especially when the case of an eviction on their record becomes a major obstacle in housing. She added this is not the majority, and is an exception, but the impact it has on a landlord is miniscule compared to the impact on the person being evicted. She stated she will support the 30-day notice. She stated getting the paperwork together for a renter is not an easy task. She also pointed to 30 days being recognized by many organizations now in housing. Council Member Baudhuin stated he appreciated the work staff did on gathering feedback from residents. He noted there is a tendency to criminalize those who do not pay rent and a tendency to portray property owners and landlords as greedy extortioners. He stated these stereotypes trouble him and noted most property owners do want to work things out before getting to an eviction. He added it is hard on landlords to carry out an eviction as well as being a financial impact. He observed the effect of an eviction on a landlord’s bottom line but at the same time, expressed frustration with the words “unintended consequences” adding they feel like “premeditated consequences”. He pointed out that landlords conduct business, but they are still making a choice to increase rents. Council Member Baudhuin regretted that the city council had to make this decision. Council Member Baudhuin went on to say that he has a hard time with the idea of profits over people as well. He stated there is a downside to a free-market society whenever we talk about profit margins going down versus the well-being of a person who needs housing. He stated a longer warning time before an eviction goes on a renter’s record is needed and he noted he is in favor of delaying that outcome versus impacts on profits. Council Member Baudhuin stated the few people that do things poorly end up being the reason for ordinances, and those who do things well, have their lives impacted. He stated he is in favor of the 30-day notice as it will slow down things for those in hardship and allows them a DocuSign Envelope ID: B7BCE580-73D2-45BC-938E-15B830011EA0 Study session minutes -4- Mar. 25, 2024 payment cycle to find all their documentation. He added that he had heard feedback from renters and landlords. Council Member Brausen noted the new statute allows the court to expunge evictions and landlords are using the statute as a negotiation tool, so it will not automatically result in a bad credit rating for a renter. Council Member Dumalag asked if there would be any special circumstances for non-profits as they do not sell their properties. Mr. Mattick stated there are pragmatic issues that he would need to investigate further. Council Member Brausen added there is no way to monitor if non-profits will continue to build affordable housing in the city or if this will have an impact on them. Council Member Rog requested that the council review this in a year, look at impacts, and see whether those items of concern have manifested. Council Member Dumalag stated the non-profits recently received $50 million from the state to help with gaps under the eviction moratorium. Council Member Baudhuin asked about the expungement process. Ms. Olson explained the process and noted it becomes more accessible when the tenant prevails, when the case is dismissed, if the parties agree to expungement, if the case is settled and the tenant fulfills the terms, or if the expungement was ordered three or more years ago. Mayor Mohamed stated in her experience, the more the city raises the standards, the more the damage deposit will increase. She summarized that finding the sweet spot to have balance is her concern, adding she would like to see renters not punished with eviction. She stated we do need to be cognizant of everything and everyone, renters and landlords included. Mayor Mohamed stated that she does not support the 30-days’ notice and would like staff to continue to study the consequences of the proposed notice. Mr. Mattick offered that the council can create a form for this process, but noted his concern that a standard notice form will not simplify the process. It would likely result in multiple forms being given to the renter due to legal requirements of the landlord and state. Council Member Baudhuin asked about having a form that is clear and not in legal terminology that states renters’ rights - in multiple languages. He stated he would like a uniform notice of rights for renters. Ms. Keller stated the website will be updated with the current ordinance, which is translated, and include information from advocacy groups. Ms. Barton suggested that within the ordinance, a link to the city’s website with the most updated information could be included in the language. Council Member Rog stated she would like to move away from non-standard eviction forms as they cause unnecessary stress for renters, so the language could be better and clearer. Ms. Barton stated the form per the ordinance from the city must have the title “pre-eviction” with DocuSign Envelope ID: B7BCE580-73D2-45BC-938E-15B830011EA0 Study session minutes -5- Mar. 25, 2024 the link to the ordinance. She stated it would either be a standardized form or require that certain items be included in the notice that landlords provide. She added the state will also have requirements. Council Member Brausen stated he is opposed to the standardized forms for the notice. Council Member Dumalag stated she would like the language to be clear and not upsetting for the renter. Ms. Barton stated the language in the ordinance will be brought back to council for review also. Ms. Keller suggested the ordinance be brought back for a first reading and a policy question to the council. It was the consensus of the city council to move forward with implementing the 30-day eviction notice. Council Member Brausen made a motion to recess at 6:42 p.m., seconded by Council Member Budd, to go into the special city council meeting. The motion passed 7-0. Recess and reconvene. Council Member Brausen made a motion to return to the study session at 6:51 p.m., seconded by Council Member Baudhuin. The motion passed 7-0. 2. Boards and commissions purpose and structure. Ms. Walsh and Ms. Brodeen presented the report. Ms. Walsh opened the presentation with an observation that progress had been slow on the revisioning process, which she regrets. She reminded the council of her long history with boards and commissions. Last summer’s work with a consultant seemed to indicate that the city council wanted change. She explained that staff then came back to council with suggestions for a new structure recommendation. Some city council members were in favor of the changes, and some were not. She added she is thankful for Ms. Brodeen’s leadership and apologized to council if staff had any part in what has not gone right with the process. She added members are asking when this process will be completed, and if council is not ready to make changes at this time, that decision will be supported. Ms. Brodeen presented the report and policy questions, expressing that boards and commissions are also important to her. Her goal is to make their work more meaningful as well as have inclusivity for those who are not at the table, while doing the best for residents. Ms. Brodeen reviewed the policy questions and explained staff is seeking direction on policy questions around reporting structure and program purpose. In the future, staff will bring back DocuSign Envelope ID: B7BCE580-73D2-45BC-938E-15B830011EA0 Study session minutes -6- Mar. 25, 2024 ordinance amendments, updated rules of procedure, revised appointment process, outreach, onboarding and orientation. Recess and reconvene. Councilmember Rog made a motion, seconded by Council Member Dumalag to take a recess at 7:35 p.m. so those who observe Ramadan may break their fast. The motion passed 7-0. Councilmember Brausen made a motion, seconded by Council Member Rog, to return to the meeting at 7:45 p.m. The motion passed 7-0. Boards and commissions purpose and structure. (continued) Council Member Rog stated she feels the same tension as Ms. Walsh expressed. She stated there are many options, including the models presented. However, many of the potential outcomes are subjective, speculative and difficult to know. She has received clear feedback from commissioners that they do not want to abolish the boards and commissions program and create one strategic board that reports to the city manager. There has also been good information from staff and consultants to guide the council on specific concerns from the original assessment. In her view, the council has all the information it needs to move forward in a way that addresses concerns and represents the community voice. Council Member Rog noted barriers to communication. With the exception of virtual meetings, all barriers can be addressed with a program that reports to the council, including compensation, food, childcare, a consensus model, meeting frequency and cadence. Council Member Rog added meaningful interaction with the city council should mean that council gives the boards and commissions more time and makes them a priority by inviting them in for regular dialogue. These interactions give the commissioners experience and leadership development as well. She added if we prioritize these residents, let us prioritize their time on council’s calendar, clarifying that council can decide on this time and staff can support. She indicated that the council is spending time discussing items that could be reports. She suggested written reports to address items that can be voted on without lengthy discussions. She suggested if boards and commissions regularly meet with the council, that could change the need for staff to attend every meeting. Council Member Rog also noted cross-topic collaboration and asked how they do this as a council. She observed that the council divides work around systems or topics, and they are discussed independently but with consideration for overarching vision and priorities. She asked if boards and commissions members could be trained to do the same. She also advocated for annual meetings, as that was great way of sharing ideas in the past. Council Member Rog stated the city charter lays out the responsibilities of boards and commissions to advise city council and this is what they say they want to do. She encouraged DocuSign Envelope ID: B7BCE580-73D2-45BC-938E-15B830011EA0 Study session minutes -7- Mar. 25, 2024 the council to stay true to this course, adding there are many paths forward to address participation and create deeply meaningful experiences for residents. Council Member Rog asked the council to listen to and respect what members are saying about their work. Council Member Baudhuin stated he has experience as a former commission chair. He thanked staff for all work done on the revisioning over the last few years, and he stated he felt heard. He added no matter how this decision turns out, that does not mean the work was in vain. Council Member Baudhuin stated his discomfort when he hears comments such as intent to “get rid of boards and commissions” and added the heart of this work is not to eliminate them, but to put them in a different container. He added boards and commissions should be reporting to the council, and he views them as members of the community at large that report to the council. He agreed they should have a strong connection to the council, as this will take work from the council also. Council Member Baudhuin asked if at-large council members could be primary liaison between the boards and commissions and council. When he served on the Human Rights Commission, he did feel they were held back by the process in some way. Council Member Baudhuin referenced the chart in the presentation and asked how the single strategic board would remove more barriers to the process than the current structure does. Ms. Brodeen shared that during the assessment, staff often heard that the meetings are not flexible or community centric. The structure that has been in place for many years tends to feel accessible to some residents, but not to all. By shifting the structure, additional access and flexibility would create a more community centric feel. Council Member Baudhuin added that cross-collaboration can be created under the current structure, with a quarterly meeting, and one person from each board or commission attending the meeting to discuss collaborative topics which helps them connect more. He is concerned about removing that community connection from council. Council Member Baudhuin pointed out that making some change is necessary, and the change needs to make the structure better. Council Member Baudhuin asked why the large group would not be subject to open meeting law. Mr. Mattick advised the large group would be subject to open meeting law. He added that committees and subcommittees are also governed by the open meeting law, per the state of Minnesota’s guiding principles. He noted the differences between an ad hoc committee and a standing committee that changes. Council Member Budd thanked Ms. Walsh for pointing out the tension around this topic and agreed with her. She noted the revisioning process has been positive and she appreciated the operational changes like equitable recruitment, onboarding and orientation - items which can be added to the process going forward. There are things that do need to be improved upon. Because the council is an elected body and must connect with the community, this gives an opportunity for those connections to happen in a unique way. She observed how boards and commissions connecting with the community and providing feedback to the council is crucial. She supports getting the groups back in front of the council more often. Council Member Budd noted the cross-topic collaboration works well right now and, as an example, pointed to the dashboard that the police advisory commission designed. She stated DocuSign Envelope ID: B7BCE580-73D2-45BC-938E-15B830011EA0 Study session minutes -8- Mar. 25, 2024 she supports model #3, with continuing boards and commissions reporting to the council and keeping their current alignment. She supported not moving them into the strategic priority categories, but with substantial changes to operational items. Council Member Dumalag thanked staff and the community members for being at this meeting and added the council received feedback from the boards and commissions members. She agreed with Council Member Budd’s comments related to model #3 and added that strategic priorities do also play a large role. She asked if cross-topic opportunities could be included to assist the council in being better informed. Council Member Brausen stated the council, staff and community have done a lot of study of this topic. He noted he has served on boards and commissions as well, and recalled the reason that the city council undertook this process is because the council got feedback from the community that the process was not working. He noted prior to the pandemic, boards and commissions and the council always had an annual dinner meeting. At this meeting, boards and commissions members shared with council all they were working on, and cross-topic discussions did occur. He added that the pandemic disrupted this whole process. He stated the revisioning process is not about a lack of respect for boards and commissions. Council Member Brausen shared that the process has been centered around how we can improve, engage the community in their ideas and passions, and involve them in the decision-making process. Council Member Brausen went on to say that this is not a frustration that is only heard in St. Louis Park, observing that barriers to participation is happening in many other cities as well. He stated he is happy to go along with the majority on whatever council decides as well as improving the operations side. Council Member Farris also thanked staff and the boards and commissions for their work on this process. She stated she has received many emails and is trying to learn, noting she has not had any connection with boards and commissions since she joined council, and added something needs to change. She stated she will also go with the majority and added she has heard the commissions and boards and their concerns. Mayor Mohamed thanked staff and the commissioners for their work on the revisioning process. She recalled that she is one of the council members that did not navigate into her work with city council through a board or commission, but came through the multi-cultural committee, which reported to the police department. She was a college student at that time, seeking to have her life experiences validated, and was able to share her thoughts with the committee. She saw how what she had to say about her experiences did show up with the council, giving the example of the police department’s body camera policy. Mayor Mohamed stated that commissioners’ comments were enlightening to listen to, and noted she wants to respect that. She agreed that commissioners should report to council and hopes to regain trust in processes and the relationship with council and staff – this trust had been a bit lost during the pandemic. Mayor Mohamed added the lack of people of color serving in our commissions is also an issue of concern and she does not see herself reflected in any of the commissions, as she did see herself reflected in the multi-cultural committee. She added she is concerned about keeping the same structure in place for the next five years and not DocuSign Envelope ID: B7BCE580-73D2-45BC-938E-15B830011EA0 Study session minutes -9- Mar. 25, 2024 seeing herself reflected on the boards and commissions. She stated this community has people from all walks of life, and she would love to see that in the commissions and for the city to achieve this representation. She stated she is challenging the commissioners to make this happen and she hopes barriers do not continue. Council Member Rog stated she agrees also with model #3 as well and this model takes other outlying bodies into account. It was the consensus of the city council to make operational updates as well as policy decisions around budget and other changes, as well as cross topic discussions related to the strategic priorities with all boards and commissions. Ms. Keller stated the next steps will be to have conversations around roles, boards and commissions procedures and operations and then bring things back to the council for final review and approval. Ms. Brodeen stated this will likely be set for June 2024. Written Reports. 2. 2024 market value update Ms. Keller stated this update will be presented at the LBAE meeting on April 1, noting there were very little changes in market values this year. 3. Bulk material containers in the right-of-way Council Member Brausen stated he is in favor of the changes noted in the report. Communications/meeting check-in (verbal) The meeting adjourned at 8:25 p.m. ______________________________________ ______________________________________ Melissa Kennedy, city clerk Nadia Mohamed, mayor DocuSign Envelope ID: B7BCE580-73D2-45BC-938E-15B830011EA0