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HomeMy WebLinkAbout2024-02-06 Work Session Meeting PacketAgenda City Council Work Session City of Edina, Minnesota City Hall Community Room Tuesday, February 6, 2024 5:30 PM I.Call To Order II.Roll Call III.2024 State Legislative Delegation Meeting IV.Adjournment The City of Edina wants all residents to be comfortable being part of the public process. If you need assistance in the way of hearing ampli(cation, an interpreter, large-print documents or something else, please call 952-927-8861 72 hours in advance of the meeting. Date: February 6, 2024 Agenda Item #: III. To:Mayor and City Council Item Type: Reports / Recommendation From:Scott Neal, City Manager Item Activity: Subject:2024 State Legislative Delegation Meeting Discussion CITY OF EDINA 4801 West 50th Street Edina, MN 55424 www.edinamn.gov ACTION REQUESTED: None. INTRODUCTION: Staff have invited Edina's legislative delegation to attend the City Council's work session. Representatives from the Municipal Legislative Commission, Metro Cities and the League of MN Cities are also invited. Staff proposes to have a discussion about the City's 2024 state legislative platform, detailed in the attached staff report and summary. ATTACHMENTS: Description 2024 State Legislative Platform February 6, 2024 Mayor and City Council Scott H. Neal, City Manager Gillian Straub, City Management Fellow 2024 State Legislative Platform Information / Background: Each year, City staff works with colleagues and partners to identify state laws that might be changed to better achieve the goals of the City and the broader Edina community. City staff also identifies proposed changes to state law contrary to City goals that might limit the livelihood and progress of the broader Edina community. The City Council reviews and discusses these items to determine whether they should be brought to the attention of state legislators and lobbyists. Changes to state laws can take years to occur. As the issues are debated, they are frequently modified to reflect additional concerns of other interested parties. It is important to start the conversation early with the understanding that details will be finetuned throughout the legislative process. When the State of Minnesota changes state statutes that provide additional powers to local municipalities, each municipality is typically required to consent to or opt-in to enforcement of the new statutes. Such procedural review involves public engagement including public meetings and frequently public hearings. As the City pursues changes at the state level, any following action at the city level would follow all appropriate statute and best practice, including public meetings and public hearings. This staff report provides the City’s state legislative platform, addressing issues that may be considered in the 2024 state legislative session, beginning February 12, 2024. There are two types of items that make up the 2024 legislative platform: 1. Priorities are issues specific to Edina and do not directly affect other communities. Priorities can be found on pages 2-3. 2. Positions are issues affecting cities in general and are not specific to Edina. Positions can be found on pages 4-16. Legislative positions the City holds may be reflected in the Municipal Legislative Commission (MLC), Metro Cities (Association of Metropolitan Municipalities), or the League of Minnesota Cities’ (LMC) 2024 legislative STAFF REPORT Page 2 platforms. In most cases, Edina’s interests align with these organizations both by virtue of the City’s participation in each organization as well as their guiding purpose. Each association adopts a legislative platform annually, and these platforms are attached to this report. This document does not duplicate items found in the MLC, Metro Cities or LMC platforms, rather, adoption of the City’s legislative platform assumes general alignment with these partner organizations. This approved state legislative platform includes several revisions requested by City Council at the December 19, 2023, work session and meeting. First, it includes a more robust explanation of the process for developing the platform in the information/background section. Second, it removes two affordable housing positions for consideration at a future Housing & Redevelopment Authority meeting: 2.4 Authorize the City to Impose a Demolition Fee and 2.5 Authorize the City to Impose a Single-Family Transfer Tax. Third, it includes edits to item 5.4 Support Funding and Programming for Recruitment and Retention Needs and added items 5.9 Technology Advancement throughout Hennepin County and 5.10: Request 1115 Waiver to Medicaid, requested by the City Council at the January 16, 2024, meeting. City Council approved this legislative platform at the January 16, 2024, meeting. STAFF REPORT Page 3 Priorities: 1 Bonding for Interchange Improvements at Minnesota Highway 100 and Vernon Avenue/West 50th Street The Minnesota Highway 100 interchange is non-standard with eight local road connections. The City partnered with Hennepin County to improve this interchange, helping to reduce construction impacts and cost. More importantly, the result will be a safer interchange for all users, by consolidating access points and increasing pedestrian paths and creating a more connected Grandview district. The total project cost is estimated to be $10.6 million; the City is requesting $5.3 million from the state, to match the local funds allocated for the project. In addition, the City requests that the State designates the surplus land created by the project for a much needed third fire station in northeast Edina. 2 Bonding for the Aquatic Center The Edina Aquatic Center is requesting state bonding to replace critical infrastructure in the facility’s pool pump house. Total cost for the project is $10.5 million. The pool house was originally constructed in 1958, and it needs replacement to accommodate changes in state code related to pumping apparatus, filter requirements and surge tank reservoirs to address swimmer capacity displacement. The Aquatic Center is a popular regional destination, with 75% of its annual visitors coming from outside of Edina, and an average of 850 to 1,000 visitors per day. Bonding would provide for a modern, code-compliant pool house, along with augmented pool amenities and patron areas to ensure a safe visitor experience. 3 Sales Tax Exemption for Projects in the Braemar Park Master Plan and Fred Richards Park Master Plan The City will use new local sales and use tax revenue to make improvements and expansions to Braemar Arena and Braemar Park and Fred Richards Park, as outlined in the Braemar Park Master Plan and Fred Richards Park Master Plan. The City will seek a sales tax exemption for the material and supplies purchased for the construction, reconstruction, upgrade, expansion, or remodeling of City facilities included in the Braemar Park Master Plan and the Fred Richards Park Master Plan. 4 Allowance to Use Allocated State Bonding for Fire Station 2 Construction Costs In 2022, the State Legislature approved $1 million in state bonding for the land acquisition, pre-design, or design of a new fire station in Edina. This facility replaces the existing Fire Station 2 and will house the City’s Public Health division. The new facility will provide a critical access point for public health services and regional technical rescue responses, and it will better serve the growing needs of the community and region. By the time the State allocated funds, the City had begun the final stages of design development and is now preparing to move into construction. The City requests that the Legislature expand the use of funds to include construction costs, as has been allowed with numerous other projects that received state bonding. 5 Authority to Expand Eligible Expenses for the City’s Lodging Taxes In 2014, the City established a lodging tax under Minnesota Statutes 469.190. The lodging tax is 3% and is imposed on the gross receipts of businesses who furnish lodging services. By statute, the City retains 5% of the gross monthly receipts of the tax to reimburse the City for the operational and overhead costs incurred in collecting the tax. The balance of the monthly receipts is distributed pursuant to a separate agreement STAFF REPORT Page 4 from 2014 to the Edina Chamber of Commerce to act as the City’s official Convention & Visitors Bureau (CVB). The lodging tax revenue has a limited range of eligible expenses, mostly related to marketing and tourism. The City seeks to increase the range of the eligible expenses to include general economic development and business support activities of the Edina Chamber of Commerce and expenses related to local community festivals and events. This includes fireworks for the 4th of July, law enforcement services for two art fairs and event expenses for the annual Torchlight Night. The City seeks legislative support for a broader use of the City’s lodging taxes, collected under M.S. 469.190. Additionally, all existing fund balances held by the Chamber of Commerce currently restricted by the spending limitations of M.S. 469.190 would be released from those spending limitations and would be eligible to spend on general economic development and business support activities as allowed under the new law. 6 Tax Increment Financing (TIF) Legislation for 70th and France and 72nd and France The City approved the 70th and France and 72nd and France 2 TIF Districts in 2022 and 2023 respectively to encourage reinvestment and redevelopment of substandard commercial properties. After considerable discussion, the City also entered into TIF redevelopment agreements with each development team to provide TIF funding subject to project completion and delivery of proposed public benefits. The City requests an extension of the five-year rule to 10 years. In addition, the City requests the ability to extend the terms of each TIF agreement, subject to approval by Edina City Council. When these Districts were established, the developers were on pace to redevelop the sites with new commercial and multi-family housing buildings and the existing buildings were demolished. Since the Districts were established and the substandard buildings removed, the national economic climate has changed significantly. Costs of construction material and labor have increased. Interest rates have increased. The ability of private banks to finance office buildings has decreased. The availability of private equity has also decreased. This situation is forecasted to remain the same for most of 2024 and is currently anticipated to recover in 2025. This pause in private financing sources hinders the ability of both projects to move forward. The ‘five-year rule’ in Minnesota TIF statutes will likely disqualify these sites from the use of TIF. Without the pledge of TIF to fill the financial gap, neither of these projects will move forward. The City requests an extension of the five-year rule to 10 years to allow the private lending sector to return to normal. In addition, the City requests the ability to extend the terms of each TIF agreement, subject to approval by Edina City Council. This would increase the 15-year term of the 70th and France District to 25 years and the 25-year term of the 72nd and France 2 District to 30 years. STAFF REPORT Page 5 Positions: The following legislative positions are grouped into five categories: General Government (page 5-8), Affordable Housing (9), Environment and Sustainability (10-12), Transportation (12-13) and Public Safety (4- 16). These positions represent issues which apply to Edina and other Minnesota cities. 1 GENERAL GOVERNMENT 1.1 Realign Motor Vehicle Lease Sales Tax Allocation In 2015, state legislation reallocated $32 million of the sales tax collected from leased vehicles from the State's general fund, half to Greater Minnesota and half to metro counties through the County State Aid Highway Fund. To balance funding for transit and roads/bridges, the new law excluded Hennepin and Ramsey Counties from receiving their share of funding. Instead, the other five metro counties split the proceeds generated in Hennepin and Ramsey Counties. With the elimination of the Counties Transit Improvement Board (CTIB) in 2017, all seven metro counties now collect their own local transportation sale tax, but the exemption still blocks Hennepin and Ramsey Counties. The City of Edina advocates for returning to the original intent by eliminating the exemption of Hennepin and Ramsey Counties and distributing the sales tax on lease vehicles, per the county state aid formula, to all metro counties. The City supports re-aligning the distribution because: • Distributing Hennepin and Ramsey County proceeds to the other five metro counties puts cities in Hennepin County at a disadvantage when it comes to accessing county funds for road and bridge projects. • This change would provide an estimated $10.7 million in additional funding to Hennepin County for roads and bridges. 1.2 Increase Purchasing Agency The city manager is the chief purchasing agent of statutory Plan B cities. State law requires the city manager to recommend purchases and contracts over $20,000 and requires additional approval by the city council. This approval is obtained through requests for approval on the consent agenda. The City supports a raise in the legal maximum to at least $100,000, with the ability for individual city councils to set lower thresholds at their discretion because: • The $20,000 threshold has not been raised since 2004. This does not account for standard inflation over the past 19 years. • Most city purchases exceed $20,000. Allowing the city manager a higher purchasing threshold makes purchasing more efficient, while maintaining compliance and oversight of budget. • Neighboring charter cities with the council-manager form of government have significantly higher limits, including St. Louis Park at $175,000, and Bloomington and Richfield have city manager purchasing authority in excess of $20,000. 1.3 Change Group Home Regulation Licensed residential facilities do not have any distance separation requirements in single-family residential use zones in Edina. Minn. Stat. 245A.11 has distance requirements of 1,320 feet between licensed residential STAFF REPORT Page 6 facilities, but these requirements do not apply to Edina. The City supports licensed residential facility use in the City and urges this distance separation because: • Grouping facilities on the same block in a single-family residential neighborhood is detrimental to the neighborhood and the individuals in the facilities. • Individuals no longer reap the benefit of enjoying a normal residential setting with a diversity of households. When entire blocks are acquired for licensed residential facilities, the setting is more similar to a large institutional campus. • Neighborhoods experience an increase in traffic, parking needs, deliveries, and other activities compounded by numerous facilities on the same block. • Grouping facilities effectively turns a residential area into a commercial area. Municipal Liquor Positions 1.4-1.9 relate to municipal liquor. The City has operated a municipal liquor store since it was established by local referendum in 1948. The liquor operation generates over $1 million annually in profit. These profits fund Edina’s recreational facilities, including the ice arena, art center and aquatic center, allowing the City to reduce user fees and allow greater access. The City’s recreation programs serve children and families from all over the metro area, not just Edina. Continual support of liquor stores and their ability to generate profit allows municipal liquor stores to benefit the community and region through local programs and amenities. 1.4 Reinforce the Open Wholesaling Systems through Legislation In 2021, Miami-based Southern Glazer's Wine and Spirits filed a lawsuit against the State of Minnesota seeking elimination of a Minnesota law called the Coleman Act, which contains the open wholesaling system of spirits distribution. Open wholesaling of spirits requires that all spirit brands (with some exceptions) be available for sale to all licensed Minnesota wholesalers. This encourages healthy competition among wholesalers benefiting both sellers and customers. If Southern Glazer's lawsuit is successful, more than half of the spirit brands in Minnesota may become exclusive with Southern Glazer's. The City opposes this lawsuit and supports an amendment of the Coleman Act to reinforce a system of open wholesaling because without protections for open wholesaling: • Wholesale prices will increase. • Service levels on certain brands will decrease. • Purchase and delivery schedules will be reduced. • Sale margins will be compressed. 1.5 Oppose Changes to Tap Room Retail Operations Due to changes during the COVID-19 pandemic, tap rooms can offer direct-to-customer bulk sales via carryout. These sales are controlled by quantity, and the product must use different packaging than the product supplied wholesale to liquor stores. The City opposes changes to tap room retail operations because: • The changes allowing retail operations were implemented in October 2021. More time is needed to understand their effect on the market, customer, and other retailers. • Changes could allow bulk or exclusive sale from tap rooms. STAFF REPORT Page 7 1.6 Protect Customer Data As a municipal operation, municipal liquor stores may be subject to data practices requests. The City supports protections for customer data because: • Customer data subject to request could include purchase history and personally identifying information. • The threat of data requests erodes trust with the customer. • It may put municipal liquor stores at a competitive disadvantage. • The City’s municipal liquor operation discontinued its customer rewards program, because without clarity of what information is subject to a data request, the City would not hold personally identifying information and purchase history that could be subject to a data request. 1.7 Clarity on THC-Infused Products With the passage of Minn. Stat. 151.72 in July 2022, products containing THC are permitted for sale. The City seeks clarification on if retail liquor stores can sell THC-infused beverages because: • Without federal passage of the SAFE banking act, cannabis-related legitimate operations cannot generate proceeds from unlawful activity, and banking institutions can be penalized by federal authorities for providing services to a cannabis-related business. • Current regulation allows for retailers like Edina Liquor to accept credit card payments only if the percent of total revenue from THC products is less than 15%. 1.8 Maintain Constraints on Off-Sale Liquor Currently, grocery and convenience stores can sell 3.2% alcohol, while all other alcohol products are sold at liquor stores. Some grocery stores opt to apply for an off-sale liquor license and can sell beer, wine and liquor at the store, with some adjustments, including a separate entrance. The City of Edina supports maintaining the constraints on off-sale liquor because: • The constraints allow for smaller private and municipal liquor stores to compete on an even playing field. • Claims that the off-sale liquor license process inhibits growth are rebutted by several grocery stores opting for some locations applying for the off-sale liquor license. 1.9 Adult-Use Cannabis Legislation during the 2023 session liberalized state law on adult-use cannabis and established regulatory authority in the new Office of Cannabis management. The City supports further clarification on the opportunity to operate a municipal cannabis retail store because: • Local governments should have the option to establish municipal dispensaries in the model of municipal retail liquors stores, as both operations have primary goals of ensuring the safety and security of the community. 1.10 Hearing Aid Affordability Currently, hearing aids are not classified as durable medical equipment (DME) and therefore not covered under many health insurance plans. Without health insurance coverage, many who need hearing aids are unable to get them, as they cost three to six thousand dollars. The City supports programs or policy changes reducing the cost of hearing aids and increasing access to them because: STAFF REPORT Page 8 • Hearing aids are critical devices for those who are deaf or hard of hearing. • Without health insurance coverage, hearing aids are not affordable for those living on a fixed income. Both Edina seniors on a fixed income and youth who age out of hearing aid support cannot access hearing aids because of cost. • Cochlear implants, which cost $80,000 to $120,000, are typically covered by health insurance while hearing aids are not. 1.11 Allow Restrictions on Possession of Firearms in Municipal Facilities with School-Like Use The Minnesota Citizens Personal Protection Act, also known as “conceal-and carry,” prohibits guns on most school properties but forbids other local units of government from prohibiting loaded firearms on their properties. The inconsistencies in the law’s treatment of different kinds of properties have caused confusion about how the law applies to multi-use facilities, such as municipal ice arenas used for school-sponsored programs. While various public facilities can restrict firearm possession, including schools, public facilities with a school-like function are not granted this authority. The City has several facilities with school-like usage and a large population of school-aged users. The City supports clarifying the law to allow municipal facilities with school-like usage to restrict the possession of firearms inside their facilities because: • This would align the law with other facilities that are authorized to restrict possession. • This would be one step to securing the safety of those who use City facilities for a school-like function. 1.12 Protect Municipal Employees with Enforcement Functions Many city employees and contractors are required to enforce administrative codes, rules, ordinances, and state laws as part of their job duties. Minnesota law recognizes the need to protect certain employees whose jobs make it more likely they will be the target of assaults by escalating assault charges from fifth to fourth degree for the assaults of peace officers, firefighters, school officials, and “public employees with mandated duties.” However, employees such as code enforcement officials, utility operators, municipal liquor store clerks and others have similar enforcement functions. The City supports extending the existing protection to all public employees whose jobs require them to enforce administrative codes, rules, ordinances, and state laws as a part of their job because: • Due to the enforcement function of their jobs, these public employees can be subject to verbal assaults, threats, and physical violence. • This would more evenly apply the law to all employees more likely to become target of assaults. 1.13 Remove Language in the State Constitution Allowing for Enslavement of Incarcerated People The Minnesota Constitution states that “There shall be neither slavery nor involuntary servitude in the state otherwise than as punishment for a crime of which the party has been convicted.” The City urges removal of this language because: • This is immoral and out of step with Minnesota values. As a public entity, it’s incumbent on public officials to hold the state accountable to remove this language and its consequences. • There is recent precedent for such an action, with Colorado, Nebraska, Utah, Alabama, Oregon, Tennessee, and Vermont striking similar language from their constitutions. STAFF REPORT Page 9 2 AFFORDABLE HOUSING Affordable housing includes two focuses: regulatory tools for affordable housing (2.1, 2.2), protecting low- and moderate-income tenants (2.3). 2.1 Reduce the Tax Rate on Land Trust Properties to Align with the 4d Property Tax Classification Previous legislative sessions made changes to the tax classification of Community Land Trust properties by reducing the tax rate for the 1a – Residential Homestead classification, from an up to 1.25% rate to 0.75%. The City supports a change to align with the 4d property tax classification, which is applied to low-income rental properties at up to a 0.25% rate because: • Homeowners lease, and do not own, the land from the Land Trust. • The property is required to be affordable as memorialized through the ground lease. • The Land Trust is designed to create affordable home ownership opportunities, but requiring the homeowner to pay property taxes on the value of the house and the land at the single-family homestead rate makes homes less affordable. • Due to both leasing the land and the requirement that it stay affordable, 4d is a more appropriate tax classification than 1a. • Edina has 26 land trust residential properties, with property values in the city rapidly increasing. High property values and corresponding taxes impact the ability of land trust homeowners to remain in their home. 2.2 Protection of and Taxation for Housing Purchased by Corporations for Renting The City supports legislation that authorizes a tax on the sale of these properties to corporations and protections prohibiting the conversion of single-family residences into rental properties by developers and corporations. The City supports bills introduced in the 92nd legislature: SF 3147, imposing the tax, and SF 4313, prohibiting the conversion, because: • The City and surrounding communities have seen an increase in the number of residences converted from single family homes owned by the residents to rental properties. • Such conversion negatively impacts ownership opportunities for residents. 2.3 Reform Eviction Expungement Records of unlawful detainer filings, or eviction lawsuits, remain on a tenant’s public record regardless of whether the matter was settled or dismissed prior to the court hearing or if the tenant prevails at the hearing. The City supports legislation expanding the eligibility for discretionary and mandatory expungements for eviction case court files because: • In these cases, the eviction record is not a reasonable predictor of future tenant behavior and should be expunged. • The existence of this record impedes the ability of the renter to secure suitable rental housing in the future. STAFF REPORT Page 10 3 ENVIRONMENT AND SUSTAINABILITY Environment and sustainability has five thematic focuses: energy management and environment (3.1, 3.2, 3.3), right to repair (3.4, 3.5, 3.6, 3.7, 3.8), sustainable transportation (3.10, 3.11, 3.12), local environmental public health programs (3.12) and water resource management (3.13, 3.14) 3.1 Establish Building Performance Standards Large commercial buildings are a significant contributor to Minnesota’s and Edina’s greenhouse gas emissions. Building energy benchmarking is already in use, requiring building owners to report energy use. However, the City supports establishing building performance standards because a performance standard: • Establishes required energy efficiency targets, a timeline to meet them, and resources to help building owners comply. 3.2 Establish a Right to Cooling Standard for Minnesotans In 2023, the Legislature passed a right to heating law for renters, to ensure renters have safe and functional homes. A lack of heating or inadequate heating can have serious health consequences. The City supports establishing a similar right to cooling, coupled with increased resources for the state’s Energy Assistance Program (EAP) that provides utility bill relief and weatherization programs like the Sustainable Resource Center to accept applications year-round and without a cap on annual service recipients. The City supports this because: • Minnesota is warming rapidly. • Excessive heat has well-documented health consequences, including serious illness and death. • Renters require additional protections to ensure landlords provide a safe and functional home. 3.3 Repeal the State’s Ban on Bag Bans With the passage of Edina’s Carryout Bag Ordinance, the City took one step toward shifting consumer behavior away from disposable goods. However, establishing a legislative path to ban plastic bags – produced by fossil fuels and source of microplastics – is an essential next step to materially reduce waste. 3.4 Allocate I 00% of State Revenue from the Solid Waste Management Tax (SCORE) to County Waste Management Activities Currently, the City is awarded a portion of the SCORE funds annually for residential recycling, residential organics recycling and participation in both at the multi-family building level. The City strives to spend 100% of the funds on allowable purposes. The City supports continued SCORE funding because: • The funds advance waste reduction, reuse, recycling and organics programs to meet city, county and state recycling goals. • SCORE funding allows the City to conduct critical outreach. 3.5 Support Efforts for the Proper Labeling of Compostable Products The City supports promoting only vetted manufactures because: • Working with only vetted manufactures reduces the likelihood of products with misleading claims to be sold or distributed in Minnesota. • It reduces City contamination in the recycling process. STAFF REPORT Page 11 • It simplifies education on which certifications customers can look for. 3.6 Fund Expanded Infrastructure at the Local Level for the Creation of Compost Processing Sites and Anaerobic Digesters The City supports additional funding for counties creating compost processing sites and anaerobic digesters because: • Landfilling all waste in Hennepin County and metropolitan area is no longer a viable option. • Compost processing sites and anaerobic digesters provide more options for waste haulers. 3.7 Support Extended Producer Responsibility Extended producer responsibility initiatives require manufacturers to finance all costs associated with collection, reusing, recycling, or safe disposal of their products such as carpets, mattresses, and electronics. The City supports this and similar efforts because: • The goals align with the City’s focus on reuse events and building partnerships. 3.8 Develop and Fund-Zero Waste Initiatives Zero-waste initiatives manage all discarded materials to their highest and best use according to the waste management hierarchy set forth in the Waste Management Act. The City supports the development of zero- waste initiatives because: • They will aid local governments reaching recycling and composting goals. • The City’s waste reduction goals mirror those set by the state, county and Edina’s climate action plans. 3.9 Support Funding and Technical Assistance to Electrify Public and School Buses Currently, less than one percent of Metro Transit’s fleet of buses run solely on electric power; 11% are hybrid-electric buses. There are very few electric public-school buses in Minnesota, and none in Edina. The City supports efforts to increase electrification of public and school buses because: • It would support transportation equity and reduce overall greenhouse gas (GHG) emissions. • Carbon emissions from traditional diesel buses disproportionally impact populations that rely on this mode of transportation, including children, elders, low-income households and BIPOC communities. 3.10 Increase Funding for the State E-bike Rebate Program In 2023, the State appropriated $2 million for a new e-bike rebate program. Expecting that eligible participants will each receive an average of $1,000, this is only 2,000 new e-bikes on the road. The City supports continuing and increasing this fund because: • More low-income residents will be able to access new and climate friendly transportation. • E-bikes are associated with positive health benefits. STAFF REPORT Page 12 3.11 Establish State Funding to Support Expanded Carshare Networks in the Twin Cities and Minnesota Xcel Energy recently pulled private funding from HOURCAR, the nonprofit electric carshare service in Minneapolis and Saint Paul. The City supports an expanded network and has studied resident support via a partnership with the University of Minnesota’s Resilient Communities Project in 2022-23. The City supports this because: • Carshares are a viable alternative to owning a personal vehicle. • Carshares have a demonstrated history of reducing vehicle miles traveled. 3.12 Continue Support for Local Environmental Health Regulatory Programs Currently, the State delegates authority to operate food, pool and lodging establishment regulatory programs to cities and counties. The City supports continuing local operation of these public health services and programs, because: • It allows cities to provide services to meet local needs. 3.13 Support Funding Research, Training, and Legislation for Applicators of Chloride- Containing De-icing Chemicals Salt is a pollutant and causes damage to infrastructure and the environment. Private contractors tend to over-apply salt on parking lots and sidewalks, often because they are afraid of “slip-and-fall” lawsuits. The City supports state funding for research and training for public and private applicators of chloride-containing de-icing chemicals, and legislation to address liability concerns of private de-icing salt applicators because: • Waterbodies throughout the state, including within and downstream of Edina, fail to meet the water quality standards for chloride (salt) established by the state and so have been added to the federal register of impaired waters as required by the Clean Water Act. • The proposed legislation, which is modeled on similar laws passed in New Hampshire and Illinois, would provide liability exemption for contractors who attend training, get certified, and document their practices, reducing the over-application of salt. 3.14 Inflow and Infiltration (I/I) Municipal Grant Program Inflow and infiltration (I/I) describe for the ways that clean water, including ground and storm water, makes its way into sanitary sewer pipes and gets treated, unnecessarily, at regional wastewater plants. The Metropolitan Council identifies cities contributing excessive 1/1 into the regional wastewater system and charges the city for the excess. The City supports state financial assistance to cities for metro area 1/1 mitigation, such as the Municipal State Bond Grant Program because: • I/I mitigation supports efficient use of the regional system for waste treatment. • I/I mitigation slows the need for capacity upgrades. 4 TRANSPORTATION 4.1 Continue Municipal State Aid (MSA) Funding The City has 40.85 miles of roads designated as MSA. This state funding is vital to maintain these high-quality connections. The City asks for continued support of municipal state aid funding because: STAFF REPORT Page 13 • The state aid road system was developed to provide vital, high-quality connections necessary for the overall state highway network to work well. • The roads that are on the state aid system typically carry heavier traffic volumes, connect major points of interest and provide an integrated and coordinated road system. 4.2 Increase Local Bridge Replacement Program (LBRP) Funding The Local Bridge Replacement Program provides local agencies funding for the reconstruction, rehabilitation or removal of bridges or structures. The program is financed by the passage of specific legislation allocating general obligation state bond funds, but regularly does not receive enough funding. The City supports funding dedicated to the Local Bridge Replacement Program to provide safe bridges because: • In 2019, there was $36 million in waitlisted, unfunded bridge projects. • The City had two projects which previously qualified for funding but were waitlisted: the Minnehaha Creek and Wooddale Avenue bridge. • The City has 27 local bridges. 4.3 Expansion of Public Transportation Frequency and Reach Edina, like much of the Metro area, has experienced multiple reductions in transit service frequency and reach as a result of the COVID-19 pandemic and workforce shortages. The City supports additional funding to reverse the impact of recent service reductions, support operator hiring initiatives, and develop a connecting bus study for the METRO Green Line Extension (Southwest LRT) because: • The City’s transit ridership prior to the pandemic was about half the average rate of Hennepin County. • To reach its climate action goals, the City aims to double public transit ridership from 3% in 2019, to 7% by 2030. Adequate public transit offerings are essential to meeting the City’s climate action goals. • Transit service supports many community goals, including improving mobility, relieving traffic congestion, reducing greenhouse gas (GHG) emissions and promoting sustainable development and growth. 4.4 Support Tools and Strategies to Reduce Vehicle Miles Traveled In Edina, the transportation and land use sectors account for around 40% of citywide greenhouse gas (GHG) emissions and are projected to become the leading GHG emissions source in Edina as the electricity sector moves to more renewable energy sources. The City supports funding to provide alternative transportation infrastructure to decrease the use of single-occupancy vehicles and their associated negative impacts on air quality, traffic congestion and quality of life because: • Total vehicle miles traveled (VMT) in Edina in 2021 was more than 500 million miles, an increase from past years. • The City’s Climate Action Plan identified a goal to reduce VMT by seven percent by 2030. • Decreasing commuters driving alone by six percent to match the county-wide average would decrease VMT by up to 10 million miles. STAFF REPORT Page 14 5 PUBLIC SAFETY 5.1 Emergency Medical Services (EMS) Local Control In February 2022, the Office of the Legislative Auditor (OLA) released a report that found serious deficiencies with both the management of the Emergency Medical Service Regulatory Board and the current ambulance service license process. During the 2023 legislative session, the Minnesota Fire Association Coalition introduced legislation, HF2736 and SF2691, to implement the recommendations of the OLA relating to the primary service areas. The City supports this legislation because: • Local governments should be able to set standards for EMS service in their communities. • Local governments should have the authority to find an EMS provider than can meet local standards. 5.2 Residential Fire Sprinklers There are few statutory requirements for residential fire sprinklers. The City opposes efforts to statutorily limit the use of residential fire sprinklers and supports the inclusion of professionals and industry experts in the creating or writing of any code parameters, particularly the installation of fire suppression systems in residential building code, because: • Sprinklers protect occupants, firefighters and property from fires. • Recent Minnesota studies show the cost of installing residential fire sprinkler systems averages $1.15 per sprinklered square foot, or approximately one percent of new home construction. 5.3 Support Funding for Auto Theft and Violent Crime Investigation The City supports the creation and funding of a multijurisdictional group of law enforcement officials focusing on investigations and prevention because: • Auto theft and violent crimes committed in stolen vehicles have dramatically increased. 5.4 Support funding and Programming for Recruitment and Retention Needs The City supports a variety of funded recruitment and retention programs for law enforcement agencies. Programs include creating a grant program for bonuses, renewing part-time officer licenses for small agencies, state-provided health care for all law enforcement officers and their families, paid health care for licensed police officers who retire at 55 after 10 consecutive years of service with a Minnesota city, deferred retirement option programs, county or tribal government, scholarship programs with higher education partners and increased support for 911 Telecommunications. The City supports these funded programs because: • Agencies of all sizes are having trouble recruiting and retaining officers. • Out-of-state agencies are recruiting Minnesota officers away from the state. • Deferred retirement option programs in particular would help stabilize the workforce. 5.5 Require K-12 Threat Assessments The City supports legislation which would require school districts to study and address general and specific school safety issues because: • Previous funding, including the grants passed by the Legislature in 2018, only provided for infrastructure improvements. • Further assessment of school safety issues, beyond physical infrastructure, is needed. STAFF REPORT Page 15 5.6 Increase Penalty for Fleeing in a Motor Vehicle and Allow Use of Mobile Tracking Devices Currently, the penalty for an offender fleeing is relatively low and using tracking devices on stolen vehicles is only allowed with owner consent or a search warrant. The City supports increasing the penalty for fleeing and allowing officers to use mobile tracking devices on fleeing vehicles under specific circumstances. The City supports this because: • The number of offenders who flee police officers has increased as police departments shift away from pursuing due to the high level of risk to the community. It is well known that police will often not pursue, due to the risk. • Increasing the penalty more appropriately captures the risk to the community when an offender flees. • Allowing officers to use mobile tracking devices when an officer has reason to believe a vehicle is stolen or the driver has committed a crime reduces the need to pursue many offenders, allowing for both safer streets and the ability to safely locate offenders. 5.7 Revise School Resource Officer Legislation In 2023, the 93rd Legislature changed the reasonable force standards by which school resource officers act in schools. The City supports the following amendments to legislation: Minnesota Statute 121A.582, Subd. 1(b): Subd. 1 (b) expand the definition of when “reasonable force” may be used by amending the language as follows: “to restrain a student and or prevent bodily harm or death to the student or another.” Subd. 1 (b) clarify that use of reasonable force by a school resource officer or police officer contracted with a district is regulated by Minnesota Statute 609.06. Minnesota Statute 121A.58: Subd. 2 (a) AND Subd. 2 (b): Remove “school resource officer” and “police officer contracted with the district” from roles covered by this subdivision. Add a section that makes the exclusion of “school resource officers” and “police officers contracted with a district” from the definition of “agents” or “employees” of a school district explicit. The City supports these amendments because: • The current legislation has competing interpretations, some allowing for restraint and some banning it except in the most extreme cases, and potentially creating different reasonable force standards for school resource officers and police officers. • School resource officer programs can benefit students, officers, and communities through positive interactions. The current legal confusion caused many partnerships between schools and police departments to be put on pause, absent clear direction. 5.8 Arbitration Reform In the current system of police arbitration under the Minnesota Public Employment Labor Relations Act (MPELRA), individual arbitrators are allowed to override the professional discipline and termination decisions made by city manager and police chiefs. City managers and police chiefs make these decisions to ensure professional, safe and effective policing. Ultimately, arbitrators can, in their sole judgement, require a STAFF REPORT Page 16 city to return an officer to the streets, when the city has determined the officers is not meeting the standards required of the department and community, without an appeals process for the city. The City supports using administrative law judges and instituting a standard of reasonableness focused on if the facts presented show that the employer’s actions were reasonable and consistent with city and department policies. The City supports these positions because: • The current system undermines the ability of elected and appointed officials, including police chiefs, to make lasting discipline or termination decisions. • These decisions help ensure a public safety department meets the needs of the community, which it cannot do under the current system of police arbitration. 5.9 Technology Advancement throughout Hennepin County Hennepin County faces increasing healthcare costs and the prospect of implementing cost-reducing technology, including facial recognition software. The City supports investments in healthcare technology for individuals in custody and adequate transparency and disclosure around key law enforcement tools because: • Members of the Edina community are held in Hennepin County Jail. • Investments in healthcare technology like heartrate monitors can detect medical emergencies and allow individuals to receive needed care sooner. • Transparency and disclosure in law enforcement tools like facial recognition software allow prudent use of the technology while protecting individual rights. • Cost reductions resulting from technological advancements would enable staff to be more proactive and mitigate communication issues that lead to mistakes. 5.10 Request 1115 Waiver to Medicaid Currently, patients lose coverage 7 days after being incarcerated, and they face significant hurdles getting coverage after they are released. 1115 Waiver to Medicaid allows for pilot programs which promote the objectives of Medicaid and could allow for continuity of care for incarcerated people under Medicaid. The City supports requesting the state apply for a 1115 Waiver because: • Losing healthcare coverage and facing significant challenges regaining coverage after release drives up health care costs and creates funding issues society-wide. • Continuity of care ensures better health outcomes of those in Hennepin County’s custody, including Edina residents. STAFF REPORT Page 17 2023 Legislative Summary Priorities Sales Tax Exemption for the Community Health and Safety Center (Fire Station 2) The City was granted a tax exemption for the construction of Fire Station 2. That action will save the City over $900,000 for the project. Bonding for Community Health and Safety Center (Fire Station 2) The City received $1.3 million in state bonding for Fire Station 2. Bonding for the South Metro Public Safety Training Facility The City received $1 million in state bonding for the Facility. Bonding for the Pedestrian Bridge over Highway 62 The City received $3 million in state bonding for the Pedestrian Bridge over Highway 62. Positions Repeal Statutory Salary Limitation on City Employees Establish Revenue Resource for Affordable Housing Funding of Fire Resources, Training and Statewide Response Teams Increase Funding for Public Safety Disability Requirements Focus on Mental Health and Post Traumatic Stress Disorder (PTSD) Support for Law Enforcement Officers and Firefighters STAFF REPORT Page 18 City of Edina Staff Contact Information Priorities Scott Neal, City Manager, can be contacted regarding any of the legislative priorities, in addition to the staff below. He can be reached at SNeal@EdinaMN.gov or 952-826-0401. 1 Bonding for Interchange Improvements at Minnesota Highway 100 and Vernon Avenue/West 50th Street Chad Millner, Director of Engineering CMillner@EdinaMN.gov 952-826-0318 2 Bonding for Aquatic Center Perry Vetter, Parks & Recreation Director PVetter@EdinaMN.gov 952-826-0430 3 Sales Tax Exemption for Projects in the Braemar Park Master Plan and Fred Richards Park Master Plan Perry Vetter, Parks & Recreation Director PVetter@EdinaMN.gov 952-826-0430 4 Allowance to Use Allocated State Bonding for Fire Station 2 Construction Costs Andrew Slama, Fire Chief ASlama@EdinaMN.gov 952-826-0332 5 Authority to Expand Eligible Uses of the City’s Lodging Taxes Scott Neal, City Manager SNeal@EdinaMN.gov 952-826-0401 6 Tax Increment Financing (TIF) legislation for 70th and France and 72nd and France Bill Neuendorf, Economic Development Manager BNeuendorf@EdinaMN.gov 952-826-0407 STAFF REPORT Page 19 Positions 1 GENERAL GOVERNMENT 1.1 Re-align Motor Vehicle Lease Sales Tax Allocation Scott Neal, City Manager SNeal@EdinaMN.gov 952-826-0401 1.2 Increase Purchasing Authority 1.3 Change Group Home Regulation Cary Teague, Community Development Director CTeague@EdinaMN.gov 952-826-0460 1.4 Reinforce the Open Wholesaling Systems through Legislation Josh Furbish, Liquor Operations General Manager JFurbish@EdinaMN.gov 952-903-5732 1.5 Oppose Changes to Tap Rooms Retail Operations 1.6 Protect Customer Data 1.7 Clarity on THC-Infused Products 1.8 Maintain Constraints on Off-Sale Liquor 1.9 Adult-Use Cannabis 1.10 Hearing Aid Affordability Scott Neal, City Manager SNeal@EdinaMN.gov 952-826-0401 1.11 Allow Restrictions on Possession of Firearms in Municipal Facilities with School-Like Use 1.12 Protect Municipal Employees with Enforcement Functions 1.13 Remove Language in the Minnesota State Constitution Allowing for Enslavement of Incarcerated People 2 AFFORDABLE HOUSING 2.1 Apply the 4d Property Tax Classification to Community Land Trust Properties Stephanie Hawkinson, Affordable Housing Development Manager SHawkinson@EdinaMN.gov 952-833-9578 2.2 Protection of and Taxation for Housing Purchased by Corporations for Renting 2.3 Reform Eviction Expungement STAFF REPORT Page 20 3 ENVIRONMENT AND SUSTAINABILITY 3.1 Establish Building Performance Standards Chad Millner, Director of Engineering CMillner@EdinaMN.gov 952-826-0318 3.2 Establish a Right to Cooling Standard for Minnesotans 3.3 Repeal the State’s Ban on Bag Bans 3.4 Allocate I 00% of State Revenue from the Solid Waste Management Tax (SCORE) to County Waste Management Activities Twila Singh, Organics Recycling Coordinator TSingh@EdinaMN.gov 952-826-1657 3.5 Support Efforts for the Proper Labeling of Compostable Products 3.6 Fund Expanded Infrastructure at the Local Level for the Creation of Compost Processing Sites and Anaerobic Digesters 3.7 Support Extended Producer Responsibility 3.8 Develop and Fund-Zero Waste Initiatives 3.9 Support Funding and Technical Assistance to Electrify Public and School Buses Andrew Scipioni, Transportation Planner AScipioni@EdinaMN.gov 952-826-0440 3.10 Increase Funding for State E-Bike Rebate Program Chad Millner, Director of Engineering CMillner@EdinaMN.gov 952-826-0318 3.11 Establish State Funding to Support Expanded Carshare Networks 3.12 Continue Support for Local Environmental Health Regulatory Programs Jeff Brown, Community Health Administrator JBrown@EdinaMN.gov 952-826-0466 3.13 Support Funding Research, Training, and Legislation for Applicators of Chloride-Containing De-Icing Chemicals Jessica Vanderwerff Wilson, Water Resources Coordinator JWilson@EdinaMN.gov 952-826-0445 3.14 Inflow and Infiltration (I/I) Municipal Grant Program Ross Bintner, Engineering Services Manager RBintner@EdinaMN.gov 952-903-5713 STAFF REPORT Page 21 4 TRANSPORTATION 4.1 Continue Municipal State Aid (MSA) Funding Chad Millner, Director of Engineering CMillner@EdinaMN.gov 952-826-0318 Andrew Scipioni, Transportation Planner AScipioni@EdinaMN.gov 952-826-0440 4.2 Increase Local Bridge Replacement Program (LBRP) Funding 4.3 Expansion of Public Transportation Frequency and Reach 4.4 Support Goals and Strategies to Reduce Vehicle Miles Traveled 5 PUBLIC SAFETY 5.1 Emergency Medical Services Local Control Andrew Slama, Fire Chief ASlama@EdinaMN.gov 952-826-0332 5.2 Residential Fire Sprinklers 5.3 Support Funding for Auto Theft and Violent Crime Investigation Todd Milburn, Police Chief TMilburn@EdinaMN.gov 952-826-0487 5.4 Support Funding and Programming for Recruitment and Retention Needs 5.5 Require K12 Threat Assessments 5.6 Increase Penalty for Fleeing in a Motor Vehicle and Allow Use of Mobile Tracking Devices 5.7 Revise School Resource Officer Legislation 5.8 Arbitration Reform Kelly Curtin, Human Resources Director KCurtin@EdinaMN.gov 952-826-0402 5.9 Technology Advancement throughout Hennepin County Todd Milburn, Police Chief TMilburn@EdinaMN.gov 952-826-0487 5.10 Request 1115 Waiver to Medicaid