HomeMy WebLinkAbout2025/04/21 - ADMIN - Minutes - City Council - Study SessionOfficial minutes
City council special study session
St. Louis Park, Minnesota
April 21, 2025
The meeting convened at 7:18 p.m.
Council members present: Paul Baudhuin, Mayor Pro Tem Tim Brausen, Sue Budd, Yolanda
Farris, Lynette Dumalag, Margaret Rog
Council members absent: Mayor Nadia Mohamed
Staff present: City manager (Ms. Keller), engineering director (Ms. Heiser), engineering services
manager (Ms. Schweiger)
Discussion items
1. Utility asset management planning
Ms. Heiser gave the staff report. She shared that HDR, a consultant company, was hired to
conduct a risk assessment study, which reviewed the city’s water and sanitary sewer pipe
networks and evaluated risk. This discussion will involve looking at staff’s reasoning and
recommendations to approach adjusting the city’s capital improvement plan (CIP).
Ms. Heiser noted the policy question before the council is:
• Does the city council approve the recommended approach to integrating utility asset
management into the city’s capital improvement plan (CIP)?
Ms. Heiser stated the study showed that high-risk sections of pipes are interspersed throughout
the city and are not continuous, which creates challenges for replacement planning. She stated
that over the last year, staff has been working on an overall replacement approach by
completing a lifecycle analysis for the overall sanitary sewer and watermain network to identify
the optimal time for replacement. She explained this involves a proactive, data-driven asset
management approach to capital planning in 2027 and beyond, and this approach will be
applied in the 2026 budget process. Ms. Heiser stated this information will go into the capital
budget process, and available funding will be looked at along with staff capacity, to be realized
as part of the 2027 construction season.
Council Member Dumalag asked if a street could be reconstructed along with the sanitary
sewer, but without addressing the water main. Ms. Heiser stated not necessarily - it could be
done, but the water main and sanitary sewer are usually ten feet apart. She added that if the
council decides to replace the sanitary sewer, then it is best to do both the street and the water
main at the same time.
Council Member Budd asked how much funding was provided by franchise fees. Ms. Heiser
indicated that there is about $4.9 million per year available.
Council Member Budd asked if mill and overlay is included in the estimate provided. Ms. Heiser
stated yes and added these types of costs are incorporated into the pavement management
plan.
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Ms. Heiser stated that working on one neighborhood at a time allows for better pricing. She
acknowledged that construction fatigue is difficult for neighborhoods, and staff tries to take
this into account.
Ms. Heiser stated that many pipes are starting to age out of their life cycle. Staff recommends
replacing about two miles per year of water main pipes on average. This is where
readjustments will be made when looking at funding and streets, and a projected completion in
2086.
Council Member Budd stated many pipes will be replaced 40 years before their life cycle if this
plan takes place. She asked why the city would not invest money to replace pipes within the full
life cycle and let the funds build as opposed to pulling pipes out early. Ms. Heiser stated this is
because of the need to flatten the curve, and because pipes do not reach their full lifecycle,
which is indicate by water main breaks. She stated that replacing water mains and sewer lines
over time will make it easier in the long term.
Council Member Rog asked what the approximate costs are over time. Ms. Heiser stated it will
depend on whether a 12-inch or an 8-inch water main is used. Pavement replacement is
supported by franchise fees. Utility enterprise funds are based on rates, which are developed
using costs of the city’s capital plan, maintenance and operations. She stated these are the
three funding sources used to pay for capital improvements, and the plan is to make them go
further.
Ms. Heiser stated if the council is comfortable with the recommendations, staff will work on
revising the CIP and present it to the council with the 2026 budget, along with an updated CIP
for 2026-2034. Actual construction projects would begin in 2027.
Council Member Rog asked about commercial roads and whether Municipal State Aid (MSA)
funding is available. Ms. Heiser stated that MSA is programmed to be used on the roads in the
city which are designated as state aid roads. There is $9 million in federal funding for the Cedar
Lake/Louisiana Avenue project, as well as $5 million in state appropriations, and $7 million that
is state aid. The city’s state aid funding is committed through 2027, adding there is $1.6 million
per year in state aid, and the Oxford Street/ Louisiana Avenue project is next in line for these
funds.
Council Member Rog observed that the major burden of this work will fall on utility fees, as it
does currently. Ms. Heiser stated that is correct.
Ms. Heiser referenced sanitary sewer pipe replacements. For sewer pipes with no holes, cracks
or upsizing needs, trenchless technology can be used to extend the life of that pipe for up to 50
years.
Ms. Heiser noted there will be a great deal of future development around the light rail stations,
so there needs to be replacements to accommodate the additional capacity in those areas.
Council Member Rog asked if this type of project is funded totally by the city or if developers
share the cost. Ms. Heiser stated that the replacement and upsizing of the sanitary sewer as a
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part of the 36th Street and Wooddale Avenue project was funded by TIF dollars. She added they
do try to have the developer provide funding if the developer is creating the capacity need, but
sometimes it can be a series of developments that provide funding.
Council Member Rog asked how frequent sanitary sewer breaks are in the city. Ms. Heiser
stated that most of the city’s sewer system is not pressurized. Unlike a water main break,
sanitary sewer failures usually cause backups. Additionally, backups can be caused by
“flushable” wipes - which should not be flushed - as well as grease buildup.
Council Member Farris asked if the plan is to address one neighborhood at a time. Ms. Heiser
stated that the overall replacement plan would be approached one pavement management
area at a time, breaking the city up into eight different sections with 15 miles of street in each
section. It is unlikely that one entire neighborhood will be done in one year. The number of
miles of streets and utilities replaced each year would depend on funding and workload.
Council Member Farris stated she is in support of the policy question.
Council Member Dumalag stated she is also supportive and likes the approach of replacing
pipes in two-mile segments, as it will help to prioritize areas and also help with the budgeting
process.
Council Member Baudhuin stated he also supports the policy question, as well as flattening the
curve and the foresight so as not to create another curve as well.
Council Member Rog asked if this approach overrides the city’s previous approach to pavement
management. Ms. Heiser stated it layers in the watermain and sanitary sewer replacement.
Council Member Rog asked where and when pavement management would be happening in
the Birchwood neighborhood. Ms. Heiser stated the Bronx Park neighborhood will be in 2026,
and mill and overlay will happen in the Birchwood area in 2028, but noted reconstruction there
will not happen again until 2034.
Council Member Rog asked about the high-risk map and Minnetonka Boulevard showing up as
a green area. She understood that area was being replaced for piping because there was a great
need at this time. Ms. Heiser stated the county will rebuild Minnetonka Boulevard as concrete,
and the decisions made there today will not be revisited for over 50 years, so the pipe
replacements need to be done at this time.
Council Member Rog asked if franchise fees will go up a lot. Ms. Heiser stated this is a different
process, and the city will work with utility fees to fund the sanitary sewer and water main
replacement work. With utility fees, there have been incremental annual increases to plan for
the replacement work.
Council Member Rog stated she is supportive of the policy question and all the work that went
into this discussion, noting it has been an in-depth approach.
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Council Member Budd stated there is a 4% increase in utility fees. She added that overall, she is
supportive but would like to spread the 2% over a few years, noting the solid waste increase of
5% was difficult for those on a fixed income. She is totally supportive of how engineering is
researching and approaching the problem.
Mayor Pro Tem Brausen added he likes the measured and proactive approach for evaluating
high-risk areas. He stated it is unfortunate that costs will continue to rise, and the city will need
to continue to replace infrastructure. However, this is a reality, and future councils will have to
raise taxes to pay for it. He said it is helpful to address these issues now before they become
massive problems.
Ms. Heiser stated staff will focus on the CIP for 2027 and 2028 and will bring that information
back to the council.
2. Proposed study session topic – relative homestead rental licensing
Mayor Pro Tem Brausen shared comments from Mayor Mohamed stating her support of
relative homestead rental licensing as a topic for a study session.
Council Members Budd, Dumalag and Farris also voiced their support for this topic.
Ms. Keller stated they will put this topic into the work plan and asked if staff can proceed with
the topic without another study session.
Council Member Rog stated she does not need another study session before the proposed
study session.
Written Reports
3. Housing activity report
Council Member Dumalag stated there was some concern about rental licenses and asked if
there could be more information in the report related to that concern. She noted that data
about who truly owns property within the city would be important to see.
Mayor Pro Tem Brausen stated he would like follow-up data on the 30-day eviction notice and
how that is impacting landlords.
Council Member Baudhuin stated this was a very well-done report. Mayor Pro Tem Brausen
added he appreciated the data in the housing report as well.
Council Member Rog stated that since this is such a big scope of what the city does, it would be
good to have a deeper dive into understanding spending on housing, how the housing program
is doing, what the outcomes are, and discuss if the city wants to add more money to housing
programs.
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Council Member Dumalag agreed it would be good to have a check-in and to check against the
city’s goals to see how we are benchmarking with housing, along with political pressures.
Ms. Keller stated that these deep dive topics will be added to the council’s systems approach
work. She added that a study session request form would be helpful with details, so the topic
can be narrowed.
4. Vision 4.0 update
Board and Commissions discussion:
Council Member Rog stated she wanted to share alternative application approaches and see
what others think.
Mayor Pro Tem Brausen said he has a comment from Mayor Mohamed on this topic, indicating
Mayor Mohamed does not like changing the approach mid-stream because the applicants rely
on the current approach. Mayor Mohamed would like to streamline the process.
Ms. Keller stated she is also open to conversations on future processes.
Council Member Baudhuin added that applicants might fill out an application differently if they
know whether or not they will get an interview. Ms. Keller stated there is no guarantee of an
interview.
Council Member Baudhuin stated he appreciated the information provided by Council Member
Rog, but noted he does agree with Mayor Mohamed on not changing a process mid-stream.
Council Member Rog stated she feels there was a gap in the scoring. She added not everyone
stepped up last year, and everyone on the council needs to be part of interviews.
Council Member Farris stated Fridays are difficult for her.
Council Member Dumalag agreed not to change the process mid-stream and supported the
idea of streamlining the process in the future.
Mayor Pro Tem Brausen stated he agrees with maintaining the process, and in future years, if
someone reapplies, proposed that the deadline could be a week earlier.
Council Member Farris stated she will agree with the majority.
Ms. Keller stated she is hearing the majority of council members are considering strong support
for exploring a streamlined process, comfort with moving down to two council members per
interview panel session, and comfort with a fewer number of applicants being interviewed.
Council Member Baudhuin stated Mr. Coleman already has a plan in place, and he should be
allowed to proceed with it.
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Ms. Keller stated the study session meeting on May 12, 2025 has been cancelled, and suggested
Mr. Coleman utilize that date for a meeting related to board and commissions.
The meeting adjourned at 8:35 p.m.
______________________________________ ______________________________________
Melissa Kennedy, city clerk Nadia Mohamed, mayor
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