HomeMy WebLinkAbout2025-05-20 Work Session Meeting Packet
Meeting location:
Edina City Hall
Community Room
4801 W. 50th St.
Edina, MN
City Council Work Session Meeting Agenda
Tuesday, May 20, 2025
5:30 PM
Accessibility Support:
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 amplification,
an interpreter, large-print documents or something else, please call 952-927-8861 at least 72 hours in advance of the meeting.
1. Call to Order
2. Roll Call
3. Meeting Topics
3.1. 2026-27 Budget Discussion
3.2. Enhancing Social Support for Staff
4. Adjournment
Page 1 of 25
d
ITEM REPORT
Date: May 20, 2025 Item Activity: Discussion
Meeting: City Council
Agenda Number: 3.1
Prepared By: Pa Thao, Finance Director, Ari Lenz,
Assistant City Manager
Item Type: Other Department: Finance
Item Title: 2026-27 Budget Discussion
Action Requested:
Discussion
Information/Background:
This meeting is a continuation of our 2026-27 budget discussions from May 6. Staff is still in the early
stages of the budget development process, and the City Manager’s biennial budget proposal will be
brought to the Council in August. Due to limited time, this work session will focus on a few of the
items (each has an attached document(s) with details).
• Council Budget Suggestions—At the retreat, Council requested an opportunity to review any
suggestions they had that weren’t part of the City Manager’s initial recommendations.
Council’s suggestions are attached along with some staff comments.
o Credit Card Fee Adjustment
Resources/Financial Impacts:
Relationship to City Policies:
Supporting Documentation:
1. Council Suggestions
2. Staff Report: Credit Card Fees
Page 2 of 25
Council Budget Suggestions
5/6/2025
At the retreat, Council requested an opportunity to review any suggestions they had that
weren’t part of the City Manager’s initial recommendations. Council’s suggestions are provided
below, along with comments from staff.
From Council Member Risser:
1) Staffing:
High-level staffing is our biggest expense. I understand service levels will be cut. Could
some cost savings come from reducing some of the outreach messaging?
We have a strong communications team. However, some of the negative comments I
get from residents are about videos that don’t really deliver a message that people thing
is needed or even accurate. One example is the video from November 2024 where
Edina Cheerleaders were featured in front of several public buildings in Edina with the
message that the City invests in its public buildings. Actually with all the deferred
maintenance it was weird to see them in front of Edinborough. There are others that
are feel good - but maybe not something that really need to be made. It is nice to have a
fun video that features staff from different departments - but maybe cut down on the
number of them?
We need to analyze whether a position needs to be refilled after somebody has retired.
For example, do we need a fulltime horticulturalist? Council does not have clarity on the
rate of new hires by department. This could be helpful.
Staff Comments:
The City Manager is responsible for overseeing personnel in a City Manager form of
government. The City Manager, Assistant City Manager and Human Resources team have
already implemented a hiring review process for all vacancies.
2) Contractors:
Could we cut back on contractor hours? If we are consistently hiring contractors for a
particular task is this something that we could train existing staff to do?
Example: We spent close to $7,000.00 bringing in an out-state consultant to moderate
the retreat. At the same time staff who are skilled in moderating council events were
present and likely could have run the event more efficiently as they are knowledgeable
about city facilities and practices.
Staff Comments:
Page 3 of 25
Having a facilitator for the retreat ensures all Staff and Council are able to participate. The
retreat is one of the most important strategic vision-related conversations we have all year.
Investing to ensure we can get the most out of the time together is important.
3) Rethink approach to unspent TIF:
It’s possible there would be much greater public benefit if unspent TIF was returned to
the county and Edina’s general fund could recoup 33% of that money. We need to
address deferred maintenance – it is only going to become more costly.
4) Address ongoing structural inefficiencies:
Edina’s city code is extremely challenging to read, and this has led to wasted resources.
We have approved code-violating development projects and then attempted to rewrite
the code so that the project and code are in sync. The Row at Valley View project is a
prime example of this. Time and money were spent with a proposed ordinance that
ended up being rejected because it would have codified commercial zones going purely
residential.
Our poorly organized/written code is likely to continue to cause problems. We need to
be working towards more clarity and consistency. Agreeing on basics such as using
Minnesota legal definitions for terms could be a way to save money and avoid further
muddying our code.
Failure to register concerns of specific council members can also result wasted time,
and misunderstandings. At the retreat more than one council member pushed back
against the idea that addressing the budget was just about keeping the property tax in
the single digits. Several council members also underscored the importance reviewing
staffing levels. These concerns did not make it to the final idea board.
Staff Comments:
The zoning code is currently in the process of being updated;Council can consider this as part
of the update.
Liquor Stores:
Our profit margins are falling and there are a lot of uncertainties including tariffs and
growing awareness of health implications surrounding alcohol. It would be prudent to
have a plan for exiting the liquor business. It would be helpful to know what kind of
revenue could be generated from selling off these sites.
Staff Comments:
Page 4 of 25
The City continues to monitor liquor operations to ensure we are able to receive the best
benefit. Eliminating the liquor stores would result in a $1 million deficit for parks (based on
previous budgets). Any revenue would be one time from the sale of property.
5) General Concerns
Follow-through on community engagement: We spend time and resources on
surveys and community engagement. This is good – but then after the research is done
and the analysis written up, it’s often totally abandoned when a private project comes
forward.
Follow-through on DEI: Similarly, we invest in DEI concept work but fail to invest in
ways that build equity. Example: providing a park building for Lewis Park – the park that
services an area where we have affordable housing. Similarly, we don’t build the
sidewalk that would connect the Hennepin County Library to Adams Park – again this
would benefit low-income apartments. We also do not require design work to be put out
to bid which results in established firms being awarded contracts for work that may
result in contracts for major projects – the France Avenue Underpass
Ensuring Dollars are Well Spent on Affordable Housing
We are investing millions of dollars in affordable housing projects that are part of new
market-rate and luxury complexes. Yet, we don’t have much information about what we
will actually get for this investment. We need to know square footage, number of
bedrooms, and compliance with affordable rental requirements.
According to the Affordable Housing Compliance report that was in the December 2024
HRA packet, only two multi-family buildings that are part of this program are compliant
with our Affordable Housing standards. The majority of buildings that were not compliant
in the 2024 report were also not compliant in the previous year’s report. This is a
significant problem.
To date, we have tried imposing a buy-out option and a required unit requirement.
Neither of these has worked well. The buy-out resulted in meagre amounts of funding.
The requirement proved exceptionally costly. And as noted, doesn’t necessarily produce
the affordable units. I’m not sure how to make the program more efficient. However, we
are not even halfway through February and we have already invested over $4.8 million
in SPARC funds for affordable housing. That came at the expense of other very
necessary municipal investments.
Mitigating Future Costs:
Stop investment in the France Avenue Underpass
Page 5 of 25
It’s likely that proposed pedestrian/bike underpass under France will continue the
tradition of pouring resources into questionable projects (Grandview Pedestrian Bridge
– Chamber of Commerce renovation of space in 7201 Metro BLVD for the Innovation
Lab) . Residents are concerned that unspent TIF funds from decertified districts will be
used for this project. If returned to the county the city would receive a significant amount
of revenue that could be used to address pressing deferred maintenance.
-When first pitched, council learned the underpass could be a Dupont Circle
situation
-Then it was going to be like the York Avenue underpass.
Neither of these scenarios is possible. Council has not been given an accurate
presentation of the France avenue underpass reality. The feasibility study that promised
to be a “back to the drawing board” study was not objective. It failed to provide the
information and analysis that we needed to make an informed decision. This project
also lacks community support. People are concerned about safety and the cost of
upkeep including graffiti.
Like the Grandview Pedestrian Bridge the narrative has shifted significantly. The
Grandview Pedestrian Bridge started out as being a connection that would land on the
ground, not the upper deck of the parking ramp. Then that changed and the utility of the
bridge diminished significantly.
From Mayor Hovland:
Request to look at labor costs: staffing and operations.
Staff Comment:
This is consistent with the feedback we received from the Council retreat. The plan is to add
this to the 2026-27 Budget Work Plan for Council consideration.
Page 6 of 25
City of Edina • 4801 W. 50th St. • Edina, MN 55424
Information / Background:
During the March council retreat, the Council directed staff to proceed with the introduction of
convenience fees due to the rising costs and increased use of electronic payments. This initiative is
anticipated to generate an additional $300,000 in revenue to help offset current credit card fees
incurred from electronic payments. Staff will begin implementing a convenience fee of 3% on all
electronic payments, with full implementation across all city operations slated for completion by
December 31, 2025.
Merchant fees, also known as credit card fees, are charges that businesses incur when accepting
electronic payment methods such as credit or debit cards. These fees typically consist of a percentage of
the transaction amount, sometimes accompanied by an additional fixed fee. Although merchant fees
represent only a fraction of the total transaction price, they can accumulate significantly over time.
Currently, the city operates five different POS systems and utilizes ten merchant processors due to the
limitations of these systems in interfacing with specific processors. The average discount fee across all
merchant processors is 3%, excluding various additional costs that may be charged based on the type of
card used by the customer.
In 2024, the General Fund incurred $297,547 in merchant processing fees, with $141,309 (47%)
attributed to the Fire Department through general fire operations, Building Inspections, and Public
Health from total sale of $4.9M. Enterprise Funds incurred $863,798 in merchant processing fees. Since
2020, merchant fees have increased by 186%, driven by the convenience of electronic payments and the
accelerated adoption during the pandemic.
Currently, the city does not have a formal limitation on credit card payment amounts; however, it is
best practice to avoid accepting payments exceeding $20,000. A survey of peer cities revealed that when
merchant fees are paid by the customer, there is no limitation on the credit card payment amount.
Date:May 20, 2025
To:Mayor and City Council
From:Pa Thao, Finance Director
Subject:Credit Card Fees
Page 7 of 25
City of Edina • 4801 W. 50th St. • Edina, MN 55424
According to Minnesota state statute 325.G.051, businesses may impose a credit card surcharge under
certain conditions:
•Disclosure Requirements:
o In-Person Sales: The surcharge must be disclosed both orally and via a conspicuous
sign.
o Online or Mobile Sales: A clear notice must be posted at checkout or on the order
summary.
o Phone Sales: The surcharge must be disclosed verbally.
•The surcharge cannot exceed 5% of the purchase price.
•Businesses cannot impose a surcharge on customers using the business’s own credit card.
•Violators may face a $500 civil penalty and must refund the surcharge to affected customers.
Additionally, Minnesota state statute 16A.625 allows municipalities to impose a convenience fee for
electronic payments, except for tax payments required by law to be made electronically. Fees collected
are appropriated to the agency to pay the processing contractor.
Impacted Operations:
•Activity Reservations and Rentals: It is not recommended to apply a surcharge to parks and
recreation activity reservations and rentals due to the inability to accept alternate forms of
payment without causing significant operational impacts. 100% of these services are currently
conducted online through the CivicRec platform and includes youth, adaptive and Connect Card
scholarship transactions.
•Golf Operations: The point-of-sale system Golf Genius does not have the ability to add a
transaction surcharge on golf transactions. Therefore, it is not feasible to implement a surcharge
on golf operations without switching providers, which is not recommended.
•Edina Liquor Operations: This operational division can move the fastest in implementing
changes, with a quicker ramp-up process.
•Parks and Recreation Facilities: Recreational facilities would implement the new surcharge
on point-of-sale transactions for in-person sales such as concessions, rentals admission sales and
other related transactions. This would occur at Braemar Arena and Sports Dome, Edinborough
Park, Edina Aquatic Center, and Centennial Lakes Park. This would also apply to all athletic field
scheduling, such as field payments and ice rentals.
Page 8 of 25
d
ITEM REPORT
Date: May 20, 2025 Item Activity: Information
Meeting: City Council
Agenda Number: 3.2
Prepared By: Kelly Curtin, Human Resources Director
Item Type: Other Department: Human Resources
Item Title: Enhancing Social Support for Staff
Action Requested:
None; information only.
Information/Background:
Item will include providing an update from police and fire on mental health checkup programs, an
overview of de-escalation training by our Risk & Safety Manager, and an overview of a Safety &
Security Blueprint for Parks & Recreation.
Supporting Documentation:
1. Enhancing Social Support for Staff Presentation
Page 9 of 25
EdinaMN.gov
Enhancing Social Support for Staff
Page 10 of 25
Agenda
•De-escalation Training
•Mental Health Checkup Programs
•Parks and Recreation Safety & Security Blueprint
Page 11 of 25
De-escalation Training
Post-COVID project as staff survey identified need to provide guidance
and strategy on how to manage, de-escalate upset
residents, customers.
Multi-Dept
Strategy Team
IQS
Overlap
External
Resources
ROAR
/
RESTORE
Leadership and
Small Group
Feedback
Edinet
IQS Training
Content
Page 12 of 25
Page 13 of 25
Page 14 of 25
Mental Health Check Up Program: Police
EPD Wellness Program is a holistic approach focusing on mental and
physical health as they have interlocking effects.
Ø Mandatory mental health check-in for all sworn officers and optional
for non-sworn personnel. Up to five department paid additional sessions
are available to members of the department if wanted.
Ø Mandating all officers to attend eliminates potential stigma and reluctancy.
Ø EPD Peer Support Team which works with a Southwest Metro
Peer Support Team Consortium.
Ø Department therapy dog (Lou)
Ø Metro resources available for critical incident debriefs.
Ø Department policy mandates mental health check-ins and follow-up after a critical incident if
necessary.
Page 15 of 25
Mental Health Check Up Program: Police
In addition to mental health programs, EPD invests in the officer's
physical wellness by:
Ø Cardiometabolic testing through Sigma Tactical in 2023
-Included full blood panel, carotid artery scan, heart stress test,
MD follow-up, nutritionist follow-up.
Ø Invested in Load Bearing Vests for officers and cadets.
Ø Ergonomic assessments for officers through TCO.
Ø Workout on-duty policy and upgraded PD gym.
Ø Researching future programs and initiatives to prevent cardiac related disease.
Page 16 of 25
Mental Health Check Up Program:
Fire
Fire Department wellness is actively evolving.
•Multiple aspects included in Paramedic Firefighter Wellness
•Mental Health
•Resiliency
•Physical Health
•Resiliency
EMS and Fire Protection requires:
•Preparation
•Training
•Performance
•So does Mental Health and Protection
Page 17 of 25
Mental Health Check Up Program:
Fire
Multi-Faceted Support
Funded Program
Contract Program
Community Relationships
Page 18 of 25
Parks & Recreation Safety and Security Goals
•Every employee is prepared and confident to handle dynamic
situations;
•Reduce the risk of injury to employee and patrons, and;
•Employees understand leadership supports their decisions
and actions.
Page 19 of 25
Parks & Recreation Safety and Security
Objectives
•Determine ways to support front-line staff encountering critical incidents.
•Work to identify other events or incidents where patron and staff safety is of concern.
•Familiarize P&R staff with Public Safety response protocols to
understand intersection of roles. Establish familiarity with
dispatch staff and impacted staff.
•Professional resources to define and create best practices and train staff in areas with no policy, old policy, or policy that needs to meet modern climate.
Page 20 of 25
Parks & Recreation Safety and Security
Site Assessments
•Conducted a comprehensive security assessment for each site.
•These site evaluations considered the use of technology, facility
barriers, access procedures, response procedures, and standards of
conduct.
•Assessment reports include specific and actionable
recommendations to enhance the safety and security at each site.
•Assessments include non-public security information under MN
statute 13.37.
Page 21 of 25
Parks & Recreation Safety and Security Blueprint
•Group 1:
ü Aquatic Center
ü Edina Liquor – 50th &
France
ü Edina Liquor – Grandview
ü Edina Liquor – Southdale
ü Centennial Lakes Park
ü Braemar Golf Course
•Group 2:
ü Braemar Arena
ü Braemar Field
ü Braemar Golf Dome
ü Senior Center
ü Edinborough Park
ü Park Maint./PW Facility
Page 22 of 25
Parks & Recreation Safety and Security
Primary Focus:
•Used CPTED, Crime Prevention
Through Environmental Design
•Reports contain non-public security
information under MN State Statutes
13.37
•Incorporate into capital planning and
facility projects such as Braemar
Arena and Edina Aquatic Center
Page 23 of 25
Parks & Recreation Safety and Security Blueprint
(Draft Policy Version)
•Edina-specific safety and security policy and procedure manual
•Security specific onboarding training manual
•In-service training protocols
•Scenario and Team Training Talks
•Specific Hazards or Situations
•Edina-specific response matrix guiding employee response
•Post-event review process to aid in continual safety and security
growth
•Contain non-public security information under MN State Statutes
13.37
Page 24 of 25
EdinaMN.gov
Enhancing Social Support for Staff
Page 25 of 25