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HomeMy WebLinkAbout2025.01.27 CC Minutes-Goal Setting WorkshopMINUTES City Council Meeting City Hall Council Chambers Monday, January 27, 2025 6:00 p.m. Mayor Weidt called the meeting to order at 6:00 p.m. COUNCIL PRESENT: Krull, Miron, Petryk, Strub, Weidt COUNCIL ABSENT: None STAFF PRESENT: City Administrator Bryan Bear, Finance Director Anna Wobse, Community Development Director Rachel Juba, Fire Chief Jim Compton, Public Works Director Scott Anderson, City Clerk Michele Lindau, City Administrator Bryan Bear talked about the memo he had prepared that reflected projects already set in motion. He also presented a list of goals for 2025 prepared by staff, and recommended Council have discussion on the following: Discussion on 165 Street Corridor Study Community Development Director Rachel Juba presented information on a proposed Corridor Study on 165th Street for areas west and east of TH61. These areas Juba showed on the map have development interest. 165th Street on the west side of TH61 is gravel and will need improvements, and Elmcrest Avenue and Otter Lake Road extensions need to be considered. The area on the east side of TH61 is paved and will need sewer and water extended to it. The size of piping that connects to the Metro Council Sewer Interceptor will need to be determined dependent on anticipated development of eastern Hugo. The cost of oversizing the pipe is high and would be the responsibility of the City. Scenarios need to be evaluated that may include a lift station. The 2040 Comprehensive Plan showed 165th Street as an urban section road with trails. Developers have questions on changes to the land use, whether 165th Street needs to be an urban section road, and the best way to serve the area with utilities. Juba talked about the Met Council’s discussions on increasing densities from three units to four units in some areas, but natural resources in Hugo make it difficult to meet those densities. Discussions are currently going through committees, and the City should know by February 12 of the Met Council’s decision. Staff proposed a goal for 2025 to move forward with area studies and engagement with landowners. These same studies would likely need to be done when updating the 2050 Comprehensive Plan. Council generally agreed to have staff bring to them a scope of work with timelines and funding options for consideration. Local Affordable Housing Aid Community Development Director Rachel Juba provided an overview of the Local Affordable Housing Aid (LAHA) program, a state initiative that provides funds for affordable housing Council Meeting Minutes Goal Workshop on January 27, 2025 Page 2 of 4 projects through a 0.25% sales tax in the seven-county metropolitan area. Funds are allocated based on the number of cost-burdened households within each city and must be spent within four years of receipt. Hugo received its first installment of $59,740 in July 2024. Juba outlined the types of projects that qualify for LAHA funding saying there are extensive stipulations associated with the program. Currently, Hugo does not have a housing policy dedicated to affordable housing projects or a housing agency to oversee such initiatives. However, the City could develop programs that align with LAHA requirements to utilize the available funding. Historically, Hugo has collaborated with the Washington County Community Development Agency (CDA) to support affordable housing efforts. A bill passed by the state legislature requires counties to engage with cities in administering the LAHA program at no cost. Hugo has several options for utilizing these funds. The City could transfer the money directly to the Washington County CDA, allowing them to allocate it at their discretion, or it could contract with the County to ensure that LAHA funds are used specifically for projects within Hugo. In this case, the County would collaborate with the City on project selection while also handling tax documentation and reporting requirements to the state. Additionally, Hugo has the option to approve the use of its funds for affordable housing projects outside City limits as part of a larger regional effort. Any unspent funds would need to be returned. City staff expressed confidence in Washington County’s ability to administer LAHA funds effectively, given their experience conducting housing studies and understanding Hugo’s specific needs. The Council discussed the potential administrative burden on the City if it were to manage these funds independently. The Council expressed interest in using LAHA funds to subsidize loans and implement targeted programs to address specific community needs. Staff will work with Washington County to draft an agreement for Council approval. Rental Housing The adoption of a rental housing ordinance was initially discussed in 2009 during the recession, prompted by concerns over foreclosures, crime, and property maintenance. The proposed ordinance primarily required rental properties to be registered, but it was never approved. The topic has resurfaced due to a recent issue with tenants in a rental unit and the overall increase in rental properties within the City. Community Development Director Rachel Juba outlined the benefits and challenges associated with rental housing, including property conditions, increased crime rates, and the eviction process. The City could adopt rental housing ordinance that could require rental licensing, property inspections, and a maintenance code. The ordinance could include revocation of a landlord’s license, compelling them to address property issues, including initiating eviction proceedings. However, the eviction process remains a lengthy procedure governed by state law. Juba provided information on what other cities did regarding rental housing including the requirement for additional staffing. Currently, the City monitors rental housing ownership through Washington County property owner database and utility billing records. Hugo receives relatively few complaints regarding rental properties. Council Meeting Minutes Goal Workshop on January 27, 2025 Page 3 of 4 The Council discussed concerns that a rental ordinance might be overly burdensome and would not significantly impact the eviction process. Historically, landlords in Hugo have been cooperative, often unaware of problem tenants until notified, at which point they are typically eager to remove them to protect their investment. Landlords also tend to maintain their properties to attract and retain reliable tenants. It was suggested that as neighborhoods age, implementing a rental ordinance may become more beneficial. Council generally agreed the best approach would be to meet with the homeowners' association that initially raised concerns about rental housing and focus on improving internal practices for managing rental-related issues. Urban and Rural Tax Rate City Administrator Bryan Bear reminded the Council that the urban and rural tax rates were discussed during the budget workshop. Residents in the rural district pay 90% of the tax rate of those in the urban district. Under state law, properties located within designated rural areas are classified under the urban tax category once they undergo platting. The City previously revisited this issue in the 1970s and 1980s, but no changes were made. Any modifications to the tax classifications and rates would require a public process. Staff anticipated that reopening this discussion would generate similar public feedback as in previous years, likely leading to the same outcome. The Council reached a general consensus and chose not to include this matter as a goal for 2025. Selection of 2025 goals City Administrator Bryan Bear highlighted goals drafted by staff and commissions that included street and bridge projects, as well as the need for a ditch maintenance plan in collaboration with the Watershed District. Specific road projects include improvements at 165th Street and Elmcrest Avenue. For parks, staff proposed to move forward with playground improvements in Oneka Lake Park and trail construction Clearwater Creek Preserve. The City owned Bernin Park has easement restrictions imposed by the DNR, and staff will continue working on potential improvements. The City will support the County’s bonding fund request for the Hardwood Creek Trail extension. The Fire Department would like to form a committee to assess the department’s vehicle needs, with the goal of replacing two trucks with a single unit as early as 2029. Staff feels good about its salary matrix but feels an employee benefits analysis should be conducted since one has not been performed in many years. There is now an Employees Safe and Sick Time Policy required by the state, and in 2026 the new Family Leave Program will be in effect. Staff will attempt to conduct an internal study on employee benefits but may request Council’s approval for consultant assistance. Staffing needs should be evaluated including an assessment of the Fire Marshal position. Council Meeting Minutes Goal Workshop on January 27, 2025 Page 4 of 4 Council inquired about the status of the wetland bank project. Bear noted that the permitting process has been challenging, as regulatory agencies have updated their requirements while the City was monitoring the project. Staff will look at potential ways to move the project forward, but the outlook remains uncertain. Staff will keep Council informed. Council had no additional goals to add for 2025. Adjournment Miron made motion, Petryk seconded, to adjourn at 7:41 p.m. All Ayes. Motion carried. Respectfully Submitted, Michele Lindau City Clerk