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HomeMy WebLinkAbout2018/08/13 - ADMIN - Minutes - City Council - Study Session�lVSt. Louis Park Official minutes M I N N E S O T A City council study session I%cPcr'wr�o<. LIFE hi iho Fark. St. Louis Park, Minnesota August 13, 2018 The meeting convened at 6:30 p.m. Councilmembers present: Mayor Jake Spano, Tim Brausen, Steve Hallfin, Rachel Harris, Anne Mavity, Thom Miller, and Margaret Rog. Staff present: City Manager (Mr. Harmening), Chief Financial Officer (Mr. Simon), CIO (Mr. Fires), Community Development Director (Ms. Barton), Director of Operations & Recreation (Ms. Walsh), Director of Inspections (Mr. Hoffman), Deputy City Manager/Human Resources Director (Ms. Deno), Police Chief Harcey, Fire Chief Koering, Housing Supervisor (Ms. Schnitker), Engineering Project Manager (Mr. Sullivan), Housing Program Coordinator (Ms. Olson), Management Assistant (Ms. Carrillo Perez), and Recording Secretary (Ms. Pappas). Guest: Members of Human Rights Commission, Police Advisory Commission, Multi -cultural Commission 1. Future Study Session Agenda Planning — September, 2018 Mr. Harmening presented the proposed Study Session agenda for August 27, 2018. He noted the MPCA/EPA topic will be pushed to a later study session. He added there will be more information to share after he and Mayor Spano meet with the Mayor and City Manager of Edina, and the EPA. 2. 2019 Budget Mr. Simon noted the staff report is related to the preparation of the 2019 budget and for staff to receive further direction from council regarding the preliminary levy. Mr. Simon noted the policy considerations are: • Is a 5.0 — 5.25% levy increase at this time in the budget process within target levels for setting the preliminary levy, with the understanding the goal by December is to achieve a final adopted levy increase of approximately 4.42%? • Does the 2019 budget process and timeline and direction meet council expectations? • Is there other information that council would like to review during the upcoming process, including any other service delivery change considerations? Mr. Simon provided an overview of the major changes to the general fund and the property tax levy. Ms. Deno added staff went out for bids on benefits this year, and found bids coming in more favorable than 12%. She stated staff hopes to see a substantial reduction this year, but will need to research the plans being quoted, to be sure all is in order. Study Session Minutes -2- August 13, 2018 Councilmember Rog stated investments for RCV includes new staff and marketing. She noted as the council moves forward, she would like to make sure they look at partnering with the League of Women Voters, and other organizations and funders, in order to lessen costs. She asked also if the full-time position for RCV will be ongoing, or only for the first year. Ms. Deno noted the city does partner with the League of Women Voters and FairVote; however, added they do not expect to find funding here, adding the city must be careful not to accept funding from organizations that are tied to political causes. Ms. Deno also noted the full-time position will be on-going and will not be a temporary position. There will be a great need for this position, as elections move back and forth between RCV and non-RCV, and there will be a need for ongoing education and outreach. Councilmember Rog stated she would like to see a full-time voter engagement position, and agreed that funding should only be sought out, if it is not tied to any political issues. Councilmember Mavity stated the position for Administrative Services is for $85,000 for RCV, noting she can understand this for year one, but added it seems a stretch to say staff will always need that support. She stated RCV is not complicated, and she would support allocating these funds to other areas. Councilmember Brausen stated he is supportive of the full-time position, and questioned the two -race equity, part-time, non -benefit positions, which work evenings doing community outreach. He stated these positions may need childcare stipends, and he hopes staff would consider this, adding he would be in favor of it. Ms. Deno stated Ms. Sojourner recommended these positions, noting they are grassroots positions, and will incorporate folks from different communities that speak different languages. She added staff would like to allocate more resources for these two positions. Councilmember Rog asked if the additional elections judges are for hand -counting for RCV elections. She asked if this is necessary given the software available for RCV elections. Ms. Deno stated the additional elections judges are for both counting and education at the polls. She added staff is not sure there will be any software that is approved by Hennepin County by 2019 for RCV. Mr. Harmening added it is imperative the city get the first RCV election right. He stated he and staff are paid to do this work, adding he is still learning of the complexities of RCV. He stated staff and council will not want to cast any doubt on RCV with city residents, and asked the council to support staffs recommendations. Councilmember Mavity stated she supports this for 2019, but still questions if it will be needed in the future. She noted increasing amounts of overtime for police and dispatch support, and is curious that these two positions are included for dispatch, when it seems there is a greater need for more police officers on the street. She asked about the city having their own dispatch program, and if it continues to be cost-effective, and still on track. Study Session Minutes -3- August 13, 2018 Mr. Harmening stated it does cost more to have our own dispatch, but the benefits greatly outweigh the cost differential. He continued, the changes in how the city provides EMS services and being more proactive, enables us to do it better than if the city had to rely on the county. He noted the police and dispatchers build relationships, which is also a benefit to the community. Chief Harcey noted the police force is also getting more requests from council, staff and the community to cover more security at city events, so there has been an increase on demands for special events, and basic staffing on patrol shifts. He added last year one officer was moved from patrol duty to technology support, and the police are asking that this officer be kept working on that for one more year, as technology increases and body -worn cameras are put into use. Councilmember Mavity stated she does not see any costs related to body -worn cameras. Mr. Simon stated that is in the capital replacement fund. Councilmember Rog stated she appreciates the city's police department, and their covering of events. However, she noted $207,000 for police work that does not seem to align with strategic priorities, and she is trying to understand this. Chief Harcey stated he is doing some catch up from the last administration where some items were not addressed, and technology has fallen behind. He added the 24/7 dispatch service needs enough staff coverage, in order to run properly, and not press staff for overtime. Councilmember Rog asked how this will result in a change in service for residents. Chief Harcey answered that residents will be well -served by being able to adequately staff requests from the public and special events, along with solid dispatch service, and having the best technology possible. Councilmember Harris asked Mr. Simon what are some of the ways staff works to lower the levy from 5.18% towards 4.42%. Mr. Simon stated everything right now is early projections and estimates on revenue, but as time moves into October and November, things will be fine-tuned, and potentially lower pricing for items like fuel will be locked into place. Mr. Harmening added some 2019 items may move into 2018 instead, so an adjustment may also occur then. Councilmember Miller asked staff and the directors where they can reduce in other areas of the budget. Mr. Simon stated staff is looking at technology and where folks can share duties. Mayor Spano asked about the dispatcher costs at $97,000 all in. Ms. Deno commented that is correct, and includes benefit costs as well. Study Session Minutes -4- August 13, 2018 Mayor Spano asked about the contingency fund proposed forthe 2019 budget, at $74,350. Mr. Simon stated that is correct, and it is used for unplanned items. Mayor Spano stated that seems like a small amount. Mr. Harmening added it is small, however, the city also has a very strong unassigned general fund balance, which is 45% of 2019's budget. Mayor Spano asked if this is consistent with what the city has carried in the past. Mr. Harmening stated yes, adding the city also has other funds available for contingency as well. Councilmember Hallfin stated this is a budget, and is not an actuality as yet. He stated what happens next year will happen, and if the city runs into an issue, the council will then decide how to take care of it. He added the budget is only a forecast of what may happen. Councilmember Hallfin added he has confidence in staff that they will figure things out. Councilmember Brausen agreed, noting the city usually runs at a surplus. Councilmembers Mavity and Harris, and Mayor Spano all agreed with the 5-5.25% preliminary levy figure. Councilmember Miller, however, stated he is concerned as the values of homes increase, the tax levies may seem reasonable, but one-third of St. Louis Park residents are living in NOAH properties, and not getting any tax advantage. He added some are paying higher rents also, adding he would be more comfortable seeing the levy in the 3% range, moving down from 4%. Councilmember Rog added she is also concerned about NOAH residents and the burden on them, and wants the council to be cognizant of that. She asked if TIF is necessary and if it's the very first tool we must offer developers. She also asked what percentage of the city's property tax base is in TIF. Mr. Harmening stated it is around 10% and it fluctuates. He added the city has been very aggressive from a development perspective in St. Louis Park as well. Councilmember Brausen stated he would challenge Councilmember Miller on his comments related to the levy adding the city needs to keep staff whole. He stated the council has asked for new initiatives, and now will need to fund those items. He noted he does share concerns about rental property, and folks on fixed incomes, and asked staff for better data on the tax impact on the average renter so the council can be aware of that. He noted that perhaps a housing trust fund can help, but added most of the city's citizens are willing to pay tax increases. Councilmember Hallfin stated TIF helps provide affordable units, and if not for TIF, the city would not have 309 affordable units currently, so it is a balancing act. He added he is fine with the 5-5.25% and moving down to 4.5%, stating these are reasonable numbers. Study Session Minutes -5- August 13, 2018 Councilmember Mavity reiterated that the community success and attractiveness as a development location is because of the strategies the council has put into place. She cautioned the council on lowering the levy further than recommended by staff, adding the city's success is because we have invested in smart ways. She stated the city has tools for affordability, but added they must be willing to invest. Councilmember Miller stated he understands the budgeting process, but still has concerns for NOAH property residents who may work two jobs. Councilmember Mavity agreed, but stated she does not believe the levy is the tool. Mayor Spano added we all benefit from our police, fire, and parks. The majority of the council was in agreement with the 5 — 5.25% preliminary levy, moving toward 4.42% for a final. 3. Inclusionary housing policy/affordable housing trust fund policy Ms. Schnitker presented four proposed amendments to the Inclusionary Housing Policy for council's consideration. She also discussed specifics related to the establishment of a city affordable housing trust fund, proposed funding resources and presented a draft policy defining the use of the funds. The four proposals for consideration include: • Increasing the percentage of affordable housing required for the 60% affordability level from 18% to 20% of units. Staff is also recommending the inclusion of an option to provide units affordable at 30% AMI. • The current policy does not allow for a payment -in -lieu of including affordable units in an eligible development. Staff proposes the policy be amended to require a payment -in - lieu for homeownership developments, pointing out it is likely any eligible homeownership development will be high-density condominium or townhomes. • The current policy allows tenants residing in affordable units to continue to live in the unit until their income exceeds 120% of AMI. Staff is proposing that this be changed to 140% of the qualifying election for the units, to be consistent with tax credit regulations. • Staff proposes the council consider amending the inclusionary housing policy, including the addition of a 30% affordability option. Councilmember Rog asked if there is any opportunity to partner with Community Land Trust. Ms. Schnitker stated not on a condo project, but possibly for a multi -family rental property project. Councilmember Brausen asked related to the payment -in -lieu, could the city impose a housing trust fund for payment on housing improvements, by imposing a franchise fee. This way everyone could share in the costs on affordable housing. Ms. Schnitker stated she did not know if that could be done. Study Session Minutes -6- August 13, 2018 Mayor Spano noted there are very few condos built in St. Louis Park. However, Ms. Schnitker noted the laws related to correcting construction defects have changed, so the city anticipates seeing more condos being built, especially in this market. Councilmember Mavity stated she supports going to 20% affordability, and agrees with the other proposals as well. She also agreed with creating funds for land trusts, and with Councilmember Brausen's idea of a fee. She added the council will also need to pay attention to how income averaging for the tax credit program might impact the inclusionary housing program, adding they will want to be consistent on this. Councilmember Rog stated she would like to look at including larger size apartments in the inclusionary policy, with 2 and 3 bedrooms vs. only 1 bedroom. She noted that families are leaving St. Louis Park because they can't find large enough units, and that means they are leaving our schools as well. Councilmember Mavity stated the housing trust fund will be the better tool to direct at this issue, adding with the inclusionary policy, it must reflect with what is comparative to what the market is producing. Councilmember Rog stated she is concerned there will not be enough money in the housing trust fund. Councilmember Harris stated she inquired about 2 and 3 bedroom units when meeting with the Housing Team, and they told her there is usually a few months vacancy for larger apartment units. She asked if staff could look at what leads to those apartments turning over quickly and if there is a disconnect in the community, related to this. Ms. Schnitker stated the recently completed Maxfield Comprehensive Housing study does address the demand for 3 -bedroom units. The study is being finalized prior to distribution. Councilmember Rog added when the council met with Sherman and Associates regarding their development, they stated there is a need for 3 -bedroom units and they would include them. Ms. Schnitker added that most developers do include them, but usually only a small number of units. It was the consensus of the council to approve the four -pronged policy changes as presented. Housing Trust Fund Ms. Schnitker stated the housing trust fund sets up a distinct fund established by city, county or state governments that receive ongoing dedicated sources of public funding to support the preservation and production of affordable housing. Housing trust funds can also be a repository for private donations. Study Session Minutes -7- August 13, 2018 She noted council expressed interest in this fund being established, which must be established by ordinance. She noted the council will approve the amount allocated into the fund each year. Councilmember Mavity is in favor of this fund, and noted when she worked on a project in Edina for affordable housing in the Southdale area; a housing district was created by state legislation. She asked if the council has authority to create a housing TIF district for affordable housing. Ms. Barton stated the council can do a TIF district without special legislation, and can move TIF funds into the housing trust fund. She added this can be discussed further by staff and council. Councilmember Mavity added the MN Housing Partnership is doing studies on NOAH for the western suburbs, noting she agrees entirely about having fees on new units. She suggested doing a percentage capture on homes at the $300,000 range or above, that are being built new, and not taxing affordable homes. Councilmember Miller stated this doesn't seem like it's enough, and if the PLACE project were removed, the city would only have developed 65 affordable units. He added there is a huge amount to get to the Metropolitan Council goals. He stated he would advocate for TIF or fees, in order to get to the goal amount as quickly as possible. Councilmember Rog stated more funding will be needed, especially since housing is identified as one of our highest priorities. She added the council should also look at development, retail, hotel and industrial fees, as sources for funding. Mr. Harmening stated that the question is whether the city has authority under state law to do this, and if so, there would need to be a policy as to how to do this. Councilmember Harris stated overall, she is in favor of a housing trust fund policy, adding the 2020 tax levy may be able to help fund this. She asked about developing a housing fee, similar to the park development fee. Mr. Harmening stated he would look to see if it is legal to do this. Councilmember Hallfin was also in favor of a housing trust fund policy adding, however, it may take some time to get it funded. He noted he takes a longer view, and while he understands it's a need, and this is a move in the right direction, it will take time to build up the fund. Councilmember Brausen added he is also supportive of creating the fund, adding that more tools help. He noted he is not comfortable committing the full HRA levy to the fund, but does want to be able to make a significant impact on the housing fund. Councilmember Rog said she was notified by STEP that they are willing to partner to administer the fund on behalf of the city. Study Session Minutes -8- August 13, 2018 Mayor Spano stated the idea of using property taxes as general fund dollars feels like a last resort, especially since taxpayers will be paying more taxes for schools. He stated he would agree more with fees for developers. He asked if staff could provide the metrics to council, in a manner where they can be compared against other options, in order to have this be more understandable. Ms. Schnitker stated staff will work on this and bring more information back to the council in the near future. 4. Body -worn camera (BWC) policy Chief Harcey presented a draft policy on the police department's use of body -worn cameras (BWC), and asked for council's feedback. Deputy Chief Kraayenbrink and members of the Police Advisory Commission (PAC), Human Rights Commission (HRC) and Multi -Cultural Advisory Committee (MAC) were in attendance. Chief Harcey stated in developing the policy, they relied on work done by the League of MN Cities, and developed a work group of law enforcement officials. He stated they started with a model policy and developed a draft, and then compared it to other local law enforcement who had already developed a policy. Chief Harcey added the draft was also shared with the PAC, HRC and MAC, and they reported back their recommendations and concerns. Chief Harcey added the work group reviewed state statutes and policies, and received public input. The draft plan is also on the police website for public review. He noted at this time, there has been great support by all for the draft policy. Councilmember Brausen asked how the police are feeling about the draft policy. Chief Harcey said there is overwhelming support from the police force on the policy and the program. Chief Harcey added there were 4 major concerns that were reviewed: - When to turn cameras on/off—they chose to provide discretion to the officer on when to turn the camera on, with some requirements of mandatory turn on. - When to allow officers to view their videos — officers are allowed to view the video prior to writing a report or providing a statement for a critical incident. They want to be accurate in how they report and what they report. - Concerns and questions about when to release videos, what's private and public data — basically all videos are presumptively private with exceptions. There are also confidential data for cases where data cannot be released because it's an active criminal investigation. - Auditing on how to apply the policy — worked with HRC recommendations and internal audits will be conducted on officer evaluation. An independent 3rd party will review bi- annually. Study Session Minutes -9- August 13, 2018 Chief Harcey stated for software and hardware, the group has evaluated and narrowed choices down to 2 providers, which have similar products. He noted they wanted to have a product that integrates well with the dash cam system proposed for squad cars, so they are not on two different systems. Councilmember Miller asked if the PAC, MAC, and HRC have all reviewed the draft policy and if all their questions have been answered. Chief Harcey stated yes, the final draft presented includes all recommendations and police revisions as well. Chief Harcey noted again the draft is on the police website for the public to view, however, he noted he can also email it to the 3 commissions as well. Councilmember Miller stated he would like it to be reviewed again by the 3 commissions for an official response. Councilmember Rog also requested the HRC receive written responses to questions they posed, adding she did not necessarily see all the responses to their questions in the policy draft. Chief Harcey stated they did work with them in person and answered and responded to each and every question in person, but added he can also respond to them in writing. One of the commission members noted from the audience that they feel as a whole they have been seen and heard by police on this draft policy, adding it is difficult to speak on behalf of the entire commission. Councilmember Rog stated the police do a great job, and she continues to hear great things about the police force, however she is concerned the BWC policy is a solution in search of a problem, adding she feels like we are rushing. She stated with this investment, the city may have to forgo other things, that are more positive and she also worries about supporting companies like Taser. She is worried about buying into this, and feels possibly the community does not need this at this time. Councilmember Brausen stated he appreciates the policy, it seems well thought out, and he is glad the 3 commissions responded to it. He added he would like to adopt the use of body cams, but has some concerns about costs, and data retention. He stated it's a solution in search of a problem, adding however he would like to hear more public input at the public hearing. Councilmember Hallfin stated he would like to know whether the 3 commissions are recommending moving ahead with the policy or not. He stated he is also looking forward to the public hearing as well, adding that he trusts City Manager Harmening's opinion that the city needs to get ahead of this. Councilmember Harris asked what problem the city is trying to solve. She stated she appreciates the commissions were involved in the process and provided input, and sees BWC as a preventative measure. She would like to consider it further, and is looking forward to hearing feedback from the commissions and the public as well. Study Session Minutes -10- August 13, 2018 Councilmember Mavity stated she is very much in favor of adopting the policy and agrees with Mr. Harmening's earlier recommendation. She stated the trust with community members could disappear in an instant, and if the city does not adopt the policy, it would be concerning. She added she feels strongly the city needs to be prepared, and she would err towards greater accountability, and not giving police officers the discretion on when to turn on cameras. Councilmember Miller stated BWC provides an additional data point, and extra physical evidence. He stated he again asks that all 3 commission have a chance to comment back to the council on the draft. Mayor Spano agreed with Councilmember Miller, and would like to also hear back from the commissions as well. He also agrees BWC fill in the data points, but added nothing is ever fool- proof. He stated he would like to see tighter guidelines as to when officers would turn the cameras on and off, and would hate to have a camera not turned on and miss important information. Chief Harcey stated they found most communities use the officer's discretion in their policy, but Minneapolis has now changed their policy to state that all BWC must be turned on. Chief Harcey also stated officers will be given guidelines, adding that under certain situations they must turn cameras on. Mr. Harmening stated there will be public feedback at the public hearing, but not a vote that night from the council. Communications/Meeting Check -In (Verbal) Councilmember Mavity commented on the written report regarding the 2040 Comprehensive Plan. She stated a concern from residents is the 39th and France Ave crossing, which is noted as dangerous. She would like to consider this intersection for a future CIP request. Mr. Harmening stated after a conversation with Three Rivers Park District, it was noted Edina is interested in doing a dog park at 401h and France also, and this will be discussed further related to developing a couple lots there also for a land trust project. Councilmember Brausen noted several storm water management questions, adding he is hopeful this will be included on future pavement improvement discussions, and stormwater management in general. Councilmember Rog stated she had a follow-up discussion on the temple at Vernon Ave, and a great solution and compromise was worked out related to moving the fence and retaining wall back from where it was previously planned. She stated it was a positive experience, and the community gardens will stay. The meeting adjourned at 9:00 p.m. Written Reports provided and documented for recording purposes only Study Session Minutes -11- August 13, 2018 5. 2040 Comprehensive Plan — draft survey results and draft plan by neighborhood