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HomeMy WebLinkAbout2024/08/05 - ADMIN - Minutes - City Council - RegularOfficial minutes City council meeting St. Louis Park, Minnesota Aug. 5, 2024 1. Call to order. Mayor Mohamed called the meeting to order at 6:16 p.m. a. Pledge of allegiance b. Roll call Council members present: Mayor Nadia Mohamed, Paul Baudhuin, Tim Brausen, Sue Budd, Lynette Dumalag, Margaret Rog Council members absent: Yolanda Farris Staff present: City manager (Ms. Keller), city attorney (Mr. Brooksbank), community development director (Ms. Barton), housing supervisor (Ms. Olson), engineering services manager (Mr. Elkin), engineering director (Ms. Heiser), recreation supervisor (Ms. Abernathy), deputy city clerk (Ms. Scott-Lerdal) Guests: Pledge of Allegiance guest Zhandi Chidothe, League of Minnesota Cities representative Luke Fischer 2. Approve agenda. It was moved by Council Member Dumalag, seconded by Council Member Brausen, to approve the agenda as presented. The motion passed 6-0 (Council Member Farris absent). 3. Presentations. a. Recognition of Playground Junior Leaders Ms. Abernathy introduced each playground junior leader and Mayor Mohamed presented them with a certificate of recognition. Mayor Mohamed thanked the junior leaders for their work. Ms. Abernathy described how the program provides 7-9th grade students with a leader-in-training experience through summer volunteer work. Council Member Brausen pointed out that 48 total students volunteered this summer to provide over 1,000 hours of community service. He thanked everyone for all their efforts. b. Recognition of Mayor Mohamed, recipient of the League of Minnesota Cities 2024 Emerging Leader Award Docusign Envelope ID: 91C0810A-F553-4446-91CC-CBABF9922690 City council meeting -2- Aug. 5, 2024 Mr. Fischer, executive director of the League of Minnesota Cities, recognized Mayor Mohamed as the 2024 Emerging Leader award winner. He described her accomplishments and her history of public service. A video was presented about the mayor with comments from staff, city council members and state representatives. Mayor Mohamed thanked the city council and all who joined her at the presentation in Rochester, MN. She dedicated the award to the city, residents and those who helped her along the way, as well as her mentors. She shared how she grew up in St. Louis Park, indicating the qualities people see in her come from this city and growing up here. She is proud of the work being done in St. Louis Park and looks forward to the work to be done over the next three years. She sees this award as the city and staff’s award, as well as everyone who contributes to the amazing work of the city. Mayor Mohamed thanked her mother, remarking on the strong relationship they have and how much that factored into how she was raised. Council Member Budd shared she attended the event in Rochester and noted the enthusiasm at the award presentation, adding that it had been wonderful to be part of that event. Council Member Brausen pointed out that Mayor Mohamed received this award as an emerging leader and the best is yet to come. Council Member Dumalag stated this award is well deserved, and she has always appreciated the Mayor’s enthusiasm, curiosity and dedication to this community. Council Member Baudhuin stated it has been an honor to work with Mayor Mohamed and shared how he had been involved in the Mayor’s 2019 city council campaign. He saw her as a leader then and now, and is proud to be led by Mayor Mohamed. During a time when there has been fear around East African and Somalian immigrants, Mayor Mohamed has brought beauty to the city as a person from a long lineage of Somalian immigrants - adding the city is grateful for her. Council Member Rog added her congratulations to the Mayor as well and encouraged her to keep up the good work. Mayor Mohamed offered her thanks to all and to the League of Minnesota Cities as it advocates for cities throughout Minnesota. 4. Minutes. a. Minutes of July 8, 2024 city council meeting b. Minutes of July 8, 2024 study session c. Minutes of July 15, 2024 city council meeting d. Minutes of July 15, 2024 special study session It was moved by Council Member Brausen, seconded by Council Member Rog, to approve the July 8, 2024 city council meeting and study session minutes as presented, and the July 15, 2024 city council meeting and special study session minutes as presented. Docusign Envelope ID: 91C0810A-F553-4446-91CC-CBABF9922690 City council meeting -3- Aug. 5, 2024 The motion passed 6-0 (Council Member Farris absent). 5. Consent items. a. Approve city disbursements and financial report b. First reading of ordinance relating to 2025 fees c. Resolution No. 24-087 authorizing final payment for Rotary Northside Park Water Quality Improvement Project (4022-4001) - Ward 4 d. Resolution No. 24-088 approving Infrastructure Investment and Jobs Act discretionary match grant agreement with MnDOT e. Resolution No. 24-089 approving lawful gambling premises permit - Maple Grove Lions Club - Ward 4 f. Approve replacement of two fire engines (Units No. 1308 and 1604) Council Member Brausen referenced item 5d approving infrastructure investment and jobs act discretionary match grant agreement with MnDOT. This item is to put the city’s safety action plan in place and the matching cost the city had to make was $200,000. He thanked staff for being proactive in this matter to obtain matching funds from the federal government and MnDOT. Council Member Brausen also noted the replacement of two fire engines, adding that is over $2 million in cost. He indicated the advance planning on this item because construction of fire engines takes years to complete. The two fire engines are estimated to be delivered to the city in 2027. He pointed out an anticipated trade-in credit of $400,000 and thanked staff for their work. It was moved by Council Member Budd, seconded by Council Member Dumalag, to approve the consent items as listed; and to waive reading of all resolutions and ordinances. The motion passed 6-0 (Council Member Farris absent). 6. Public hearings – none. 7. Regular business. a. First reading of ordinance amending Ch. 22 of the city code regarding bulk materials storage Mr. Elkin presented the staff report. Council Member Rog stated she heard from some residents that bulk materials in the right of way was a challenge, so she appreciates this change. She asked about practical and reasonable locations for bulk materials. She asked for clarification of criteria on areas where a dumpster would be prohibited, allowing the dumpster to be placed in the street instead. Mr. Elkin stated residents can reach out to staff to schedule a site visit. Areas of concern include steep driveways, a lot with many trees, or a pie-shaped lot. Mr. Elkin noted that staff is trying to be more flexible related to this issue. Docusign Envelope ID: 91C0810A-F553-4446-91CC-CBABF9922690 City council meeting -4- Aug. 5, 2024 Council Member Rog asked who will determine whether a public safety issue exists. Mr. Elkin stated there is a list of conditions that are required for putting anything in the street. These include markings, space around fire hydrants, not blocking sidewalks or bike lanes or parking zones; all of which will be considered as part of the permit process. Council Member Rog asked if a decision is made that a tree be removed, will residents reach out to their council members for exceptions. Mr. Elkin stated staff will try to avoid this outcome, working and communicating with residents to avoid issues. Council Member Dumalag thanked staff for their work and shared that some residents had reached out to her about dumpsters being present in yards for up to a year. She likes that this ordinance shortens that time to two weeks and appreciates the thoughtfulness of this requirement. Council Member Rog asked if a Bagster dumpster has a longer timeframe than two weeks. Mr. Elkin stated that would be permissible as long as it remains in the residents' yard. It was moved by Council Member Dumalag, seconded by Council Member Budd, to approve the first reading of an ordinance amending Ch. 22 of the city code regarding bulk materials storage The motion passed 6-0 (Council Member Farris absent). b. First reading of pre-eviction notice ordinance Ms. Olson presented the staff report. Council Member Budd asked whether the proposed ordinance requirements would be considered a post-eviction filing versus a pre-eviction filing. Ms. Olson stated the proposed 30 day timeframe is the notice period before an eviction is filed. Council Member Baudhuin asked whether the timeframe starts when the notice has been given or when it has been received. Ms. Olson stated it is 30 days from the date of the notice. Council Member Rog why the notification method was deleted related to email or mail requirements. Ms. Olson clarified the city’s method of delivery was deleted from the proposed language because state statute already requires a specific method of delivery. In the city’s seven-day ordinance, email was listed as an option, but state statute does not allow for email. Ms. Olson added that the city ordinance is supplemental to the state statute, so the city does not reiterate any state information. Barbara Tchom-Schopf, 9416 Fredrick Ave., stated she grew up in St. Louis Park and has owned a home in the city for 42 years. She thanked the city council for the 30-day notice ordinance, and shared a conversation she had with a resident who received an eviction notice. Many tenants are working to get information together, including legal support, to allow them to stay in their homes. The 30-day notice allows for more time for tenants and passing this ordinance will benefit tenants. She hopes this will not cause unintended consequences of increased rent Docusign Envelope ID: 91C0810A-F553-4446-91CC-CBABF9922690 City council meeting -5- Aug. 5, 2024 and shorter leases or higher deposits. She thanked the council again and shared her appreciation for their commitment to this issue. Claudia Oxley, 2931 Vernon Ave. S., thanked the council for their work as well as for listening to residents. She is part of the community housing group and is invested in the overall health and quality of the city. She stated the city has not invested enough money in this issue and the 30- day eviction notice does not solve the problem. She recognized that this is a struggle, and shared that what this eviction notice does is provide tenants a bit more time to prevent eviction. Stable housing helps improve education, economics, health and safety outcomes for all, adding that providing 16 more days’ notice is a big win. She concluded that consistency is simplicity. Kirsten Brekke Albright, 8607 Westmoreland Lane, stated she has lived with her husband in St. Louis Park for 30 years. She stated we all do better when we all do better and she supports the 30-day notice. Keeping people housed has positive impacts and is the right thing to do. In a city with many diverse faiths, community leaders rally around issues based in common humanity and this is a continuation of that work. Housing is an essential human right and she is proud the community leads impactful tenant protection initiatives. Jessica Szuminski, policy attorney for Housing Justice Center, stated she supports the ordinance and noted it is necessary for the 41% of St. Louis Park residents who are renters. The 30-day ordinance is common sense and allows renters to avoid eviction. She noted confusion among tenants when eviction notices are submitted, and pointed out several deletions in the proposed ordinance that she has concerns about, including the dates. Regan Reeck, 8011 34th Ave. S., Bloomington, stated she represents HOME Line and is happy to support this ordinance. She thanked the commission, council and staff for their work. She noted the additional 16 days will continue to decrease eviction filings, and while it may have some costs to landlords, it will also allow for more assistance to tenants and assure more breathing room for renters. She added kids will stay in school and local businesses will continue to be supported. Barb Patterson, 4356 Wooddale Ave., thanked the council for the creation of this ordinance as well as partners within and outside the city. She thanked tenants for helping everyone learn and want to stay in St. Louis Park. She also thanked those who opposed this policy as it helps in learning and growing. She stated the ordinance will reduce homelessness in the community and thanked the community for their work. Elizabeth Stroder, 2240 Nevada Ave. S., stated she is speaking from personal experience related to homelessness. She shared her personal story including moving to Minnesota in 2009, and now having recently lost her job and living with friends. When she received an eviction notice, her landlord did not work with her to assist. She stated she was a number and her humanity did not matter. She asked the council to please continue to care about St. Louis Park residents. Matt Kinney, 9115 W. 34th St., stated he supports the 30-day eviction notice and the required letter. He had been working with a friend to acquire affordable housing and during that time, he learned how slow the process is. He stated the arguments against the proposed ordinance are hypothetical and noted Council Member Farris’ comments at the study session were Docusign Envelope ID: 91C0810A-F553-4446-91CC-CBABF9922690 City council meeting -6- Aug. 5, 2024 accurate. He stated the proposed ordinance will not help everyone, but will help many and the required letter of notice will get the correct information into the hands of the tenants. He urged the council to vote in favor of the ordinance. Marilyn Klug, 2729 Xenwood Ave., stated she is a member of the community housing team and thanked the council for their support of the proposed ordinance. The letter of notice and ordinance are clear and serve both tenants and landlords. She stated the pre-eviction notice is clear and understandable and noted some recommendations the housing group made. She thanked the council for their support on this tenant-centered ordinance and stated it takes everyone to address the housing crisis. Nils Snyder is a small business owner, a housing provider and manages rental property. He is not in support of the proposed ordinance, noting that managing rental property has been the most difficult job he has had. He stated the process of eviction is time-consuming and expensive. He shared the eviction process is not typically 16 days; it is more like six to nine weeks for the whole process. There will be unintended consequences, including rent increases and higher deposits. He has tried to work with tenants in the past and found it does not work. His business needs the rent for taxes, mortgage, utilities and other expenses. He stated this will have an impact on renters. Mayor Mohamed stated Alexander Bisanz of Mortgage Equities submitted a written statement to the city council. Mayor Mohamed thanked everyone for their comments, adding this is the most thoughtful and intentional group she has heard before council. Council Member Budd asked why the second reading date was changed. Ms. Olson shared it was originally scheduled for August 19 and recommended by staff to move the second reading to September 9, 2024. Ms. Keller clarified the date change was recommended after reviewing the agenda calendar. It was moved by Council Member Dumalag, seconded by Council Member Brausen, to amend ordinance to include a sunset date of 24 months, at which point the city would rely on state statute. Council Member Dumalag suggested this based on the City of Brooklyn Center, which has a similar ordinance. After collecting data for two years, the council can review how well the ordinance is working. Council Member Rog noted the recommendation to sunset and effectively end the ordinance is different than the recommendation to look at the data and evaluate whether to continue. Council Member Dumalag clarified that by providing the timeline for sunsetting the ordinance, the city council will be required to look at the data in advance of the 24-month timeframe. The council can then evaluate if they want to continue with the 30-day pre-eviction notice or not. The data from staff shows that of 13,000 rental units, less than 2% receive the filing and less Docusign Envelope ID: 91C0810A-F553-4446-91CC-CBABF9922690 City council meeting -7- Aug. 5, 2024 than 1% are actually evicted. She would like to review this data again in two years and her motion ensures this review process is not forgotten. Council Member Rog asked what kind of data should be reviewed. Council Member Dumalag expressed concern about housing stability throughout the city. There are a number of renters living in apartments, houses, condominiums, townhomes and duplexes – both regular and owner-occupied. She acknowledged the council is trying to assist those renters. Council Member Dumalag shared her family’s experience with homelessness and her motivation to serve on two boards working towards solutions. She does not want to create a policy where the majority of license holders will be greatly affected when there are only a few bad actors. At a future study session, she would like to explore funds to create a program to assist small business owners who are landlords. Council Member Baudhuin asked if the two-year sunset would happen automatically or whether a vote would be required for the ordinance to sunset. Council Member Dumalag clarified that it would be automatic. Council Member Baudhuin asked what might happen if the council then, after two years, wants to keep the ordinance in place. Mr. Brooksbank stated it would require another ordinance amendment at that time to remove the sunset language. Council Member Rog stated when body cameras for police were brought on, there was concern from some members of council. At the time, the council required a detailed yearly report from police on the body camera program, including data. She is more comfortable with adding a requirement that council receive a yearly report with specific data to examine if the ordinance should remain in effect. She is in favor of a report of this type rather than a sunset which ends the ordinance, especially after all the work and effort that went into this ordinance. Council Member Brausen stated he supports the proposed amendment to sunset in two years. He is worried this ordinance will radically impact the rental markets in St. Louis Park. He acknowledged he also understands that a housing crisis exists. He is not sure this ordinance will house more people and has substantial concerns the requirements will deter landlords. Council Member Brausen added that he could support the ordinance for two years and examine the data before extending the ordinance permanently. Council Member Baudhuin stated he appreciates a motion that holds the council accountable and looks at the data. He is not in support, however, of an automatic sunset and if the ordinance is working, he prefers a mechanism that makes it easier to keep it rather than going through a process to keep it. He is in favor of accountability structures and monitoring data. Council Member Budd agreed and stated she is not in favor of the amendment motion. There has been a great deal of due diligence all along the ordinance’s drafting process. The data from HOME Line was impressive in the decrease of filings and she feels there is enough data to support the proposed ordinance. She likes accountability and requiring annual reports but she is not in support of sunsetting by default. Docusign Envelope ID: 91C0810A-F553-4446-91CC-CBABF9922690 City council meeting -8- Aug. 5, 2024 Mayor Mohamed stated she likes the spirit of the amendment and looking at the data. She does not want all of the work that went into the ordinance to automatically sunset after two years. She is in favor of accountability measures, such as yearly reports with goals reached and data supporting outcomes. She is open to more discussion on accountability and requiring specific data. The motion failed 2-4 (Council Member Baudhuin, Budd, Mohamed and Rog opposed; Council Member Farris absent). Council Member Rog stated she has concerns around the date of the notice and no recognition that the mail method does not guarantee successful delivery. She asked staff to speak to those concerns. Ms. Olson clarified that state statute dictates how the notice must be delivered, but landlords may use additional methods such as email, hand delivery and online tenant portals to ensure the notice is received. Mailing is a legal method of delivering a notice and the city cannot predict when the notice will arrive. To provide clearer communication to renters, the ordinance requires the landlord to include a statement outlining 30 days from the date of the notice, and not the date it is received. Ms. Barton added the letter could be dated a certain date but not mailed until later, noting the city does not have control of that. She added it may be mailed but not postmarked on the date it was mailed, and some people do not have email. Under state statute, notices must go through the regular US mail, however, landlords generally want the notice to get into the hands of tenants as soon as possible. Notices are usually mailed, hand-delivered, emailed or delivered via tenant portals. Council Member Rog stated that she is interested in the data point of the time it takes between a notice being mailed and when it is received, to see if this is in fact an issue. Council Member Budd thanked everyone in the room and all those who wrote in to explain their situation. She shared that she heard from small business owners as well, and those comments were valuable. She observed that St. Louis Park does not have an eviction crisis like some cities, and that is wonderful. However, the impact of an eviction on a single person is more significant than the cumulative effect of the 16 additional days of delay on receiving the rent. She will vote in favor of the proposed ordinance. Council Member Brausen thanked everyone for their efforts. He cares about housing in St. Louis Park and thanked the landlords who spoke and sent written comments. Council Member Brausen shared that he is a real estate attorney with a great deal of experience with evictions. He stated he is not pro-landlord and is in favor of tenants working out their situations because no one wants to see homelessness. The crisis is about affordable housing and the city has committed resources to this over the years and will continue to do so. He will vote against this proposed ordinance because he is worried about the rental market. The city’s work with 200 eviction notices per year will have an impact on the 18,000 renters in St. Louis Park. This is a concern as it will be more difficult to find rental units that do not ask for a substantial deposit or a shorter lease, and that do not get more vigorous in their screening processes. Docusign Envelope ID: 91C0810A-F553-4446-91CC-CBABF9922690 City council meeting -9- Aug. 5, 2024 Council Member Baudhuin thanked everyone for their feedback and apologized for not being able to respond to all residents who sent emails, but noted that he had read every message he received. He stated this decision has been difficult, and he knows there are many very compassionate landlords in St. Louis Park. There are good relationships between renters and landlords, but after hearing from both sides, it is clear to him that there is a housing problem in St. Louis Park. He stated that is where we have to step back and say there is a systemic problem in our city, and in our world which is multi-faceted and evidenced by the unintended consequences that have been discussed. He stated these are not unintended consequences, they are intended, and landlords will act upon them if this ordinance passes. Hearing this concern reiterated can feel like a threat, and yet he understands the mechanisms of running a small business. Broadly, the rental system is weighted in favor of landlords and renters are, for the most part, at the mercy of landlords; renters need more protections through regulations. Council Member Baudhuin stated this issue is not simple and there are many elements at play. He stated one of the reasons the 30-day pre-eviction notice could be problematic is that the remaining elements in the rental market are not being addressed; it really does not solve the housing problem. He stated the problem will not be solved all at once, so the city has to start by taking incremental steps to make it a little harder to put someone into homelessness. Because of that, he will vote in favor of the proposed ordinance and is in favor of the required notice portion. Council Member Rog stated thanked the housing team and everyone else involved with the work, specifically Barb Patterson, Marilyn Kluge, Claudia Oxley and Liz Schroeder. She also thanked JCA, HOME Line and all the other advocacy groups. She thanked the council and staff for their discussion and work, as well as landlords and renters who shared their input. She stated housing is complicated and the ordinance will provide individuals and families more breathing room, a notice that better aligns with realities of low-income renters, and the steps they have to take to resolve their housing issues. Council Member Rog stated she had a conversation with staff at STEP and the loss of a job is the primary reason why tenants fall behind in paying rent. Landlords have stressed they are concerned about losing 60 days of rent given the time it takes for processes to be worked through. She pointed out the timeframe is intended to allow people to take care of their issues and avoid eviction. Regarding landlord concerns, she sees an opportunity by setting aside a portion of the anticipated $330,000 in state funds – from a new sales tax - which can be used for housing assistance. With those funds, more resources can be provided to housing partners so they can provide two to three month's rent assistance versus the current one month. This will create conditions where renters are more likely to resolve their issues. She stated this will reduce risks to landlords and give everyone more time. Council Member Rog stated on the required notice, the forms were misleading and difficult to follow, so she is grateful for the support of a standard form and grateful to the community housing team for their work to make it understandable, as well as meeting all the legal requirements. She stated she will vote in favor of the proposed ordinance. Council Member Dumalag thanked everyone as well for their work on this issue but she still has concerns about the broad impact upon all renters in the city. She agrees some emails can feel Docusign Envelope ID: 91C0810A-F553-4446-91CC-CBABF9922690 City council meeting -10- Aug. 5, 2024 like a threat but noted that is the reality if someone has to do business and provide housing. She is not worried about those in market-rate housing but has more concerns about those living in NOAH, affordable housing, and those that work to provide it. She is not in favor of this proposed ordinance because she does not want the higher security deposits, higher rents and shorter-term leases – all of which are mechanisms landlords may use. She added even non- profits still have to have cash flow, otherwise they could lose their property. Council Member Dumalag added she would like more discussion on unintended consequences of the proposed ordinance at a study session. Mayor Mohamed stated this has been a long time coming, and many conversations on this issue have happened over the years. She has been vocal on this issue and shared that she is a renter herself. When it comes to this ordinance, for folks of color, it is a double-edged sword with access to housing for diverse persons being so difficult. The reality is the unintended consequences. She stated she will vote in favor of this issue and the standard notice form, and the city will do the best it can on this ordinance. She added that if it does not work as intended, she invites folks back for more discussion. It was moved by Mayor Mohamed, seconded by Council Member Budd, to approve first reading of the ordinance of pre-eviction notice. The motion passed 4-2 (Council Members Dumalag and Brausen opposed; Council Member Farris absent). It was moved by Mayor Mohamed, seconded by Council Member Dumalag, to set the second reading of the ordinance of pre-eviction notice for September 9, 2024. Council Member Dumalag stated she would like to allocate time for a future study session discussion so folks can stay in their homes, and landlords do not have to lose or sell their properties in light of unintended consequences. Council Member Rog agreed and asked for staff’s direction on collecting data to be brought back for council to study. Ms. Barton stated staff currently does not collect the type of data discussed this evening, so staff will work with the city attorney on options and bring those recommendations to council. Council Member Baudhuin stated that data should come back to council before two years have elapsed, and data should be from renters as well as landlords, so it is balanced and well- rounded. The motion passed 6-0 (Council Member Farris absent). Council Member Rog thanked Mayor Mohamed for her handling of the meeting this evening, and stated she dedicated her status as an emerging leader through her actions. 8. Communications and announcements. Docusign Envelope ID: 91C0810A-F553-4446-91CC-CBABF9922690 City council meeting -11- Aug. 5, 2024 a. Quarterly development update – 3rd quarter of 2024 b. Results of the banking services RFP evaluation and recommendation Ms. Keller stated construction on Minnetonka Boulevard will begin next week, noting there is a link on the city web page to Hennepin County for more information. 9. Adjournment. The meeting adjourned at 8:39 p.m. ______________________________________ ______________________________________ Melissa Kennedy, city clerk Nadia Mohamed, mayor Docusign Envelope ID: 91C0810A-F553-4446-91CC-CBABF9922690