>> GOOD AFTERNOON. MY NAME IS AURIN CHOWDHURY AND I'M THE VICE CHAIR OF THE COMMITTEE OF THE WHOLE. I'M GOING TO CALL TO ORDER OUR REGULAR COMMITTEE MEETING FOR TUESDAY, OCTOBER 21, 2025. BEFORE WE BEGIN THE MEETING, I WANT TO OFFER A FRIENDLY
REMINDER TO ALL MEMBERS, STAFF, AND THE PUBLIC THAT THESE MEETINGS ARE BROADCAST LIVE TO ENABLE GREATER PUBLIC PARTICIPATION. THESE BROADCASTS INCLUDE REAL TIME CAPTIONING AS A FURTHER METHOD TO INCREASE THE
ACCESSIBILITY OF OUR PROCEEDINGS TO THE COMMUNITY. THEREFORE, ALL SPEAKERS NEED TO BE MINDFUL OF THE RATE OF THEIR SPEECH SO THAT OUR CAPTIONERS CAN FULLY CAPTURE AND TRANSCRIBE ALL COMMENTS FOR THE BROADCAST. WE ASK ALL SPEAKERED TO MODERATE THE SPEED AND CLARITY OF THEIR COMMENTS.
AT THIS TIME, I'LL ASK THE CLERK TO CALL THE ROLL TO VERIFY THE PRESENCE OF A QUORUM. >> WONSLEY IS ABSENT. RAINVILLE. >> PRESENT. >> VETAW. >> PRESENT. >> OSMAN IS ABSENT. CASHMAN. >> PRESENT. >> JENKINS. >> PRESENT.
>> CHUGHTAI. >> PRESENT. >> KOSKI. >> PRESENT. >> PALMISANO. >> PRESENT. >> VICE CHAIR CHOWDHURY. >> PRESENT. >> AND CHAIR CHAVEZ. >> PRESENT. >> THERE ARE 10 MEMBERS PRESENT. >> LET THE RECORD REFLECT WE HAVE A QUORUM. THE AGENDA IS BEFORE US. ARE THERE ANY
AMENDMENTS TO MAKE? I WILL CALL ON COUNCIL PRESIDENT PAYNE. >> THANK YOU, CHAIR CHOWDHURY. I WOULD LIKE TO AMEND THE AGENDA AND ADD ITEM NUMBER 4 WHICH IS A RESOLUTION FOR THE BOARD OF ESTIMATE AND TAXATION.
>> SECOND. >> GREAT. WITH THAT MOTION TO AMEND THE AGENDA AND A PROPER SECOND, TO ADD THAT ITEM, ALL THOSE IN FAVOR SAY AYE. >> AYE. >> THOSE OPPOSED SAY NAY. THE AYES HAVE IT, AND WE WILL TAKE THAT ITEM UP AT THE END OF OUR
AGENDA. FIRST, WE WILL BEGIN WITH THE REPORTS OF OUR STANDING COMMITTEE BEFORE OUR CONSENT AGENDA. I WILL FIRST CALL ON THE VICE CHAIR OF THE ADMINISTRATION AND ENTERPRISE OVERSIGHT COMMITTEE, VICE CHAIR PALMISANO.
>> THANK YOU. THE ADMINISTRATION AND ENTERPRISE OVERSIGHT COMMITTEE IS BRINGING FORWARD 16 ITEMS FOR THURSDAY. CONTRACTS ORDINANCE, ITEM TWO IS A GIFT ACCEPTANCE FOR TRANSPORTATION,
MEALS AND LODGING, AS IS ITEM 3 AND 4. FOR CITY STAFF. ITEM 5 IS A CONTRACT AMENDMENT FOR THE SANITARY SEWER RECONSTRUCTION. SIX IS A CONTRACT AMENDMENT FOR THE CONVENTION CENTER
CONCESSIONS REMODEL. ITEM 7 IS A CONTRACT FOR READY MIX CONCRETE. ITEM 8, A CONTRACT AMENDMENT FOR THE FREMONT AVENUE PIPE REPLACEMENT. NINE A CONTRACT
AMENDMENT FOR LEAD SERVICE LINE REPLACEMENTS. ITEM 10 IS A CONTRACT AMENDMENT FOR HAWTHORNE OFFICE BUILD OUT. 11 A CONTRACT FOR SEWER IMPROVEMENT PROJECT. 12 IS FOR THE SANITARY AND STORM
SEWER IMPROVEMENTS. 13 IS A BID FOR THE CONVENTION CENTER'S MILL CITY KITCHEN CONCESSIONS REMODEL. 14 IS A COLLECTIVE BARGAINING AGREEMENT FOR LAW ENFORCEMENT LABOR SERVICES WHICH IS OUR 911 DISPATCH SUPERVISORS
FOR THE NEXT TWO YEARS. ITEM 15 IS AN ADA TITLE 2 POLICY. ITEM 16 IS A BIG ONE, IT'S MASTER CONTRACTS FOR WORKFORCE DEVELOPMENT SERVICES FOR THE NEXT TWO YEARS. AND THESE ARE JUST ELIGIBLE CONTRACTS. THIS ISN'T SOMETHING THAT WE ARE
AUTHORIZING AT THIS TIME. I'M HAPPY TO TRY AND ANSWER ANY QUESTIONS. >> THANK YOU SO MUCH, COUNCIL MEMBER PALMISANO. I HAVE COUNCIL VICE PRESIDENT CHUGHTAI IN QUEUE. COUNCIL VICE PRESIDENT.
>> THANK YOU, MADAM CHAIR. I'M WONDERING IF COUNCIL MEMBER PALMISANO CAN JUST REMIND US WHETHER ANY OF THE GIFT ACCEPTANCES THAT WILL BE COMING FORWARD ON THURSDAY ARE GIFTS
FOR THE DATES THAT HAVE ALREADY PASSED. >> OH YES. ACTUALLY, I MENTIONED THIS AT THE LAST AGENDA SETTING. THE GIFT ACCEPTANCE FOR TRAVEL FOR POLICE CHIEF BRIAN O'HARA WOULD HAVE PASSED. IT WAS OCTOBER 9TH AND 10TH, THE REASON
IT'S COMING THROUGH THIS CYCLE BECAUSE HE WAS NOT ASKED TO PRESENT UNTIL WHENEVER IT WAS FOR THIS COMMITTEE. THAT'S THE REASON WHY IT IS IN ARREARS SO TO SPEAK. >> GOTCHA. THANK YOU, MADAM CHAIR. >> SEEING NO OTHER QUESTIONS, I WILL NEXT RECOGNIZE THE CHAIR OF
THE AUDIT COMMITTEE, COUNCIL PRESIDENT PAYNE. >> THANK YOU, VICE CHAIR CHOWDHURY. AS YOU ALL KNOW THE AUDIT COMMITTEE DOESN'T BRING ACTIONS FORWARD, BUT DURING OUR MEETING YESTERDAY, WE TOOK UP
ONE, TWO, THREE, FOUR, FIVE, SIX, SEVEN ITEMS. THE FIRST TWO WERE UPDATES ON AUDITS WITH MPD, INCLUDING FLEET MANAGEMENT AND OFF DUTY WORK. WE WERE EXPECTING MPD TO PARTICIPATE IN THAT STATUS UPDATE, BUT THEY WERE NOT
AVAILABLE. AND DECLINED TO PARTICIPATE. WE DID GET AN UPDATE ON OUR OFF DUTY AUDIT FROM OUR AUDITING TEAM. BUT WE DID NOT HAVE MPD THERE. WE ACTUALLY HAD A FAIRLY ROBUST CONVERSATION ABOUT THE ROLE OF
MPD AND THE AUDIT AND THEIR LACK OF PARTICIPATION IN CERTAIN AUDIT ACTIVITIES WHICH RESULTED ON US TAKING ACTION ON RECOMMENDING THAT THE AUDITOR ISSUE A LETTER TO MPD LEADERSHIP, THE MAYOR, AND CITY COUNCIL TO OUTLINE SOME OF THE
ROAD BLOCKS THAT HE'S RECEIVED AND TO SEEK REMEDY TO THOSE ROAD BLOCKS. WE GOT AN UPDATE TO THE ENTERPRISE RISK ASSESSMENT AND RISK BASED AUDIT PLAN TO AMEND IT TO ADD A WORKFORCE OPTIMIZATION BENCHMARK STUDY. WE
HEARD FROM THE CITY AUDITOR ON DRAFT CHANGES TO THE AUDIT CHARTER. AND WE GOT A REPORT OF THE CITY AUDITOR. A STANDARD REPORT WHERE HE SHARED CONCERNS INVOLVING MPD. AND I WILL STAND
FOR ANY QUESTIONS. >> SEEING NO QUESTIONS, I WILL NEXT CALL ON THE BUDGET CHAIR, COUNCIL VICE PRESIDENT CHUGHTAI. >> THANK YOU, MADAM CHAIR. THIS COUNCIL CYCLE, THE BUDGET
COMMITTEE HAS BEEN HEARING DEPARTMENTAL PRESENTATIONS FROM THE MINNEAPOLIS PARK AND RECREATION BOARD, THE OFFICE OF CITY CLERK, THE OFFICE OF CITY AUDITOR, THE COMMUNITY PLANNING AND ECONOMIC DEVELOPMENT DEPARTMENT, ALONG WITH THE REGULATORY SERVICES AND HEALTH
DEPARTMENTS. THE YOUTH COORDINATING BOARD AND THE INFORMATION TECHNOLOGY DEPARTMENT, AND THE TECHNOLOGY IMPROVEMENT PLAN. WE'VE ALSO RECEIVED A REPORT ON MUNICIPAL REVENUE FROM THE LEGISLATIVE RESEARCH AND OVERSIGHT DIVISION. AND THE COMMITTEE IS NOT
BRINGING FORWARD ANY ITEMS FOR THE BODY TO CONSIDER ON THURSDAY. >> THANK YOU. ARE THERE ANY QUESTIONS FOR COUNCIL VICE PRESIDENT? OKAY. SEEING NONE, I WILL NEXT GIVE THE REPORT FOR
THE BUSINESS, HOUSING AND ZONING COMMITTEE. ITEM ONE IS APPROVING A LIQUOR LICENSE FOR CEDAR INN. ITEM 2 IS APPROVING A FINE AND TOBACCO SUSPENSION FOR LICENSE MARKET. THE CLEARANCE LETTER HAS
BEEN RECEIVED AND THIS WILL BE DELETED FROM THE AGENDA ON THURSDAY. ITEM 4 IS CONSIDERING A COMBINED TRADES LICENSE REVOCATION HELD BY PMR MECHANICAL INC. THIS ITEM WAS
FORWARDED WITHOUT RECOMMENDATION. ITEM 5 IS APPROVING ONE LIQUOR LICENSE. ITEM 6 IS APPROVING 26 LIQUOR LICENSE RENEWALS. SEVEN IS ACCEPTING A GRANT FOR REGULATORY SERVICES TO ATTEND THE BEST
FRIENDS CONFERENCE. ITEM 8 IS APPROVING APPLICATIONS FOR THE FALL 2025 BROWNFIELD GRANTS. AND THE LAST ITEM, ITEM 9 IS AUTHORIZING OWNERSHIP AND OPPORTUNITY LOAN FOR VITAL 24
LLC. WITH THAT, I WILL STAND FOR ANY QUESTIONS. GREAT. SEEING NONE, WE WILL GO TO CLIMATE AND INFRASTRUCTURE FOR ITS REPORT FROM ITS CHAIR, COUNCIL MEMBER CASHMAN. >> ALL RIGHT. THANK YOU, MADAM
CHAIR. THE CLIMATE AND INFRASTRUCTURE COMMITTEE IS BRINGING FORWARD THREE ITEMS. MNDOT'S UNIVERSITY NORTHEAST IMPROVEMENT PROJECT. TWO IS A RESOLUTION APPROVING SERVICES
AND SERVICE CHARGES FOR THE LEGACY. THREE IS ADOPTING A SERVICE LINE REPAIR ASSESSMENTS. FOUR CONSTRUCTION EASEMENT AT WEST RIVER ROAD NORTH. FIVE IS A
RESOLUTION AUTHORIZING A GRANT APPLICATION FOR THE 2025 LOCAL ROAD IMPROVEMENT PROGRAM FOR PROJECTS ON 35th, LYNDALE AVENUE SOUTH. SIX IS A RESOLUTION DESIGNATED THE PHASE 2 PROJECT
FOR THE UPPER HARBOR TERMINAL ADOPTING REPORT AND COST ESTIMATE AND SETTING A PUBLIC HEARING FOR NOVEMBER 4TH. I'LL STAND FOR QUESTIONS. >> GREAT. SEEING NO QUESTIONS, WE WILL GO TO OUR LAST COMMITTEE REPORT FOR THE PUBLIC HEALTH AND SAFETY COMMITTEE. WE'LL GO TO
ITS CHAIR, COUNCIL MEMBER CHAVEZ. >> THANK YOU, CHAIR CHOWDHURY. THE PUBLIC HEALTH AND SAFETY COMMITTEE WILL BE BRINGING FORWARD FIVE ITEMS. ONE IS A RESOLUTION RECOGNIZING THE MONTH OF OCTOBER AS HEALTH LITERACY AWARENESS MONTH. TWO IS
APPROVING AN APPOINTMENT TO THE -- FOR CHRONIC DISEASE PREVENTION. AND ITEM FIVE IS
AUTHORIZING A CONTRACT WITH THE MINNESOTA TIMBERWOLVES FOR SECURITY SERVICES. I'LL STAND FOR ANY QUESTIONS. >> I DON'T SEE ANY QUESTIONS. BEFORE WE GO INTO THE CONSENT ITEM, I DO KNOW THAT IN THE
BEGINNING WE VOTED TO MOVE THE WALK-ON ITEM FROM COUNCIL PRESIDENT PAYNE. I'M GOING TO SUGGEST WE TAKE IT UP AS OUR THIRD ITEM AFTER NUMBER TWO IN DISCUSSION AND TAKE OUR RECEIVE AND FILE. IF THERE IS NO OBJECTION. GREAT. NOT SEEING ANY
OBJECTION. THERE'S ONLY ONE ITEM ON THE CONSENT AGENDA AND THAT IS ADOPTING THE 2026 TRANSITION CALENDAR FOR REGULAR MEETINGS OF THE CITY COUNCIL. IS THERE ANY DISCUSSION FROM COMMITTEE MEMBERS? SEEING NO ONE IN
DISCUSSION, I WILL MOVE APPROVAL OF THE CONSENT AGENDA ON THAT MOTION. ALL THOSE IN FAVOR SAY AYE. >> AYE. >> THOSE OPPOSED SAY NAY. THE AYES HAVE IT AND THAT MOTION HAS CARRIED. NOW WE WILL MOVE ON TO THE DISCUSSION PORTION. WE HAVE
A LEGISLATIVE DIRECTIVE TO DISCUSS ITEMS RELATED TO THE ENTERPRISE WIDE SALARY AND COMPENSATION STUDY PRODUCED BY GUIDE HOUSE. COUNCIL MEMBER KOSKI, WOULD YOU LIKE TO SPEAK FIRST ON THIS ITEM? >> THANK YOU, MADAM CHAIR. THANK
YOU, COLLEAGUES. TODAY I'M BRINGING FORWARD A LEGISLATIVE DIRECTIVE REQUESTING THAT THE MAYOR PROVIDE THE CITY COUNCIL WITH THE ENTERPRISE WIDE SALARY COMPENSATION STUDY THAT WAS CONDUCTED BY GUIDE HOUSE INC. IN PLAIN TERMS. THIS KIND OF STUDY TAKES AN EXTENSIVE LOOK ACROSS
THE ORGANIZATION, EVERY DEPARTMENT, JOB, CLASSIFICATION, EVERY SALARY SCHEDULE TO UNDERSTAND HOW A PAY STRUCTURE FUNCTIONS. THESE STUDIES ARE STANDARD IN GOVERNMENT BECAUSE THEY GIVE CITIES A CLEAR DATA DRIVEN VIEW OF HOW SYSTEMS ARE
PERFORMING AND WHERE ADJUSTMENTS MAY BE NEEDED. THEY SHOW WHERE PAY MAY BE TOO LOW TO RETAIN OR TRACK STAFF. INCONSISTENT ACROSS DEPARTMENTS OR CLASSIFICATIONS
RESULTING IN UNEQUAL PAY OR UNEQUAL PAY FOR SIMILAR WORK. AND ISSUES LIKE COMPRESSION OR INVERSION WHERE NEW HIRES EARN AS MUCH AS OR MORE THAN LONG-TERM EMPLOYEES WHICH CAN ERODE MORALE AND TRUST. IN SHORT, THESE STUDIES HELP
DETERMINE WHETHER COMPENSATION PRACTICES ARE FAIR, COMPETITIVE AND FISCALLY BALANCED. MAINTAINING A STRONG WORKFORCE AND LONG-TERM FINANCIAL HEALTH. FOR THE COUNCIL, THIS KIND OF INFORMATION IS FUNDAMENTAL. WE ARE RESPONSIBLE FOR MAKING BUDGETARY AND POLICY DECISIONS
THAT SHAPE THE CITY'S WORKFORCE FOR YEARS TO COME. IN THE SHORT TERM, STUDIES LIKE THIS INFORM MID CYCLE AND NEXT CYCLE ADJUSTMENTS. THINGS LIKE TARGETED PAY INCREASES, RECLASSIFICATIONS OR UPDATES TO COST OF LIVING ADJUSTMENTS. IN
THE LONG TERM, THEY GUIDE MULTI-YEAR FINANCIAL PLANNING BY HELPING US UNDERSTAND WHAT IT WOULD COST TO HELP CORRECT INEQUITIES, HOW TO PHASE COSTS RESPECTIVELY, AND COMPENSATION
IN THE WAY TO SUSTAIN. SALARIES AND WAGES MAKE UP A SIGNIFICANT SHARE OF OUR SPENDING. ROUGHLY ONE QUARTER OF ALL CITY-WIDE EXPENSES, AND NEARLY HALF OF GENERAL FUND EXPENSES IN THE 2026 RECOMMENDED BUDGET. WITH
THAT IN MIND, EARLIER THIS FALL, I REACHED OUT TO THE ADMINISTRATION, SPECIFICALLY THE CHIEF OPERATING OFFICER AND THE HUMAN RESOURCES OFFICER TO ASK ABOUT THE MOST RECENT STUDY, OUR HISTORY OF COMPENSATION STUDIES AND ANY RELATED INFORMATION. WEEKS LATER, WE RECEIVED A
SUMMARY OF THE REPORT. NOT THE ACTUAL REPORT. A STUDY AND REPORT THAT WAS APPROVED UNDER A $650,000 CONTRACT. I THEN INFORMALLY REQUESTED THAT THE
STUDY IN ITS ENTIRETY BE SHARED WITH THE COUNCIL. INTERACTIONS THAT WE ADOPTED UNDER RESOLUTION 2022R-326, WHICH ENCOURAGES INFORMAL REQUEST AS THE FIRST
STEP BEFORE ANY LEGISLATIVE ACTION. HOWEVER, AFTER NOT RECEIVING A RESPONSE FROM THE ADMINISTRATION FOR ANOTHER WEEK, THE ONLY REMAINING PATH TO RETAIN THIS INFORMATION DIRECTLY TIED TO OUR ONGOING BUDGET DECISIONS WAS TO COMPEL IT TO BE
SHARED. THE CITY CHARTER IS CLEAR. THE MAYOR MUST MAKE AVAILABLE TO THE CITY COUNCIL ANY INFORMATION WE REQUEST IN SUPPORT OF OUR LEGISLATIVE POLICY MAKING AND OVERSIGHT FUNCTIONS. THE CHARTER ALSO ESTABLISHES THE COUNCIL AS THE CITY'S FISCAL AUTHORITY.
RESPONSIBLE FOR THE BUDGET, FINANCIAL POLICIES AND OVERALL STEWARDSHIP OF PUBLIC FUNDS. SO NOT ONLY DOES THE CHARTER MAKE IT CLEAR THAT MATTERS LIKE THIS FALL SQUARELY ON THE COUNCIL'S RESPONSIBILITY, IT ALSO MAKES IT CLEAR THAT THE MAYOR AND
ADMINISTRATION HAVE A LEGAL OBLIGATION TO PROVIDE THAT INFORMATION ONCE FORMALLY REQUESTED. ONCE I NOTIFIED THE ADMINISTRATION THAT I WILL BRINGING FORWARD A LEGISLATIVE DIRECTIVE TO FORMALLY REQUEST THIS INFORMATION, THEIR RESPONSE MADE ONE THING CLEAR, THEY NEVER
HAD ANY INTENTION OF SHARING THE REPORT WITH THE COUNCIL AND STILL DON'T. THE ADMINISTRATION ASSERTED THAT THIS REPORT CANNOT BE SHARED BECAUSE IT IS CLASSIFIED AS NON-PUBLIC DATA. THAT MAY BE TRUE FOR THE PUBLIC. BUT WE ARE NOT THE PUBLIC. WE
ARE THE CITY COUNCIL. IF CONFIDENTIALITY IS A CONCERN, THEN SET UP A PROCESS THROUGH WHICH EACH COUNCIL MEMBER CAN SECURELY REVIEW THE INFORMATION IN A CONFIDENTIAL MANNER. I DON'T PARTICULARLY CARE WHAT THAT PROCESS LOOKS LIKE. BUT CONSIDERING THAT THE COUNCIL
MEMBERS HAVE BEEN PROVIDED NON-PUBLIC INFORMATION MANY, MANY TIMES BEFORE, THERE ARE ALREADY PRACTICES AND PROCEDURES IN PLACE FOR DOING EXACTLY THAT. SO PLEASE DO IT. THE ADMINISTRATION'S REFUSAL TO PROVIDE THIS INFORMATION THROUGH
INFORMAL REQUESTS HAS ALREADY VIOLATED OUR ADOPTED POLICY ON COUNCIL AND ADMINISTRATION INTERACTIONS. SO LET ME BE CLEAR, IF THIS LEGISLATIVE DIRECTIVE IS IGNORED, THAT WILL NOT JUST BE ANOTHER BREAKDOWN IN COUNCIL ADMINISTRATION INTERACTIONS OR SHARED GOVERNANCE, IT WILL BE A
VIOLATION OF THE CITY CHARTER. IF I SOUND FRUSTRATED, IT'S BECAUSE I AM. BECAUSE IT HAS BECOME FAR TOO DIFFICULT TO DO THE BASIC WORK OF GOVERNING WHEN COLLABORATION AND TRANSPARENCY
AREN'T TREATED AS SHARED PRIORITIES. THIS SHOULDN'T BE COMPLICATED. THE CITY COUNCIL SHOULD NOT HAVE TO FIGHT FOR ACCESS OF INFORMATION WE ARE LEGALLY ENTITLED TO. INFORMATION THAT DIRECTLY INFORMS OUR WORK ON THE BUDGET, ON FINANCIAL
PLANNING, AND ON OVERSIGHT. THIS IS ABOUT ACCOUNTABILITY, TRANSPARENCY, AND RESPECT FOR THE STRUCTURE OF GOVERNMENT OUR RESIDENTS EXPECT US TO UPHOLD. I'M ASKING MY COLLEAGUES TO SUPPORT THIS LEGISLATIVE DIRECTIVE SO THAT WE CAN MOVE FORWARD AND DO OUR JOBS, TO
GOVERN RESPONSIBILITY, MAKE INFORMED DECISIONS, AND ENSURE THE PEOPLE OF MINNEAPOLIS HAVE A GOVERNMENT THAT OPERATES WITH TRANSPARENCY AND STEWARDSHIP. THANK YOU. >> I WILL NEXT RECOGNIZE COUNCIL PRESIDENT PAYNE.
>> THANK YOU, VICE CHAIR CHOWDHURY. I THINK IT'S IMPROPER TO SAY I'M HAPPY TO SUPPORT THIS LEGISLATIVE DIRECTIVE BECAUSE I'M NOT HAPPY THAT WE'RE HERE. THIS SHOULDN'T BE A LEGISLATIVE DIRECTIVE. THIS COULD HAVE BEEN AN EMAIL. AND THE FACT THAT IT HAS RISEN TO THE NEED FOR THIS TO BE A LEGISLATIVE DIRECTIVE IS
A REFLECTION OF A BREAKDOWN IN HOW THIS NEW FORM OF GOVERNMENT WORKS. AND YOU KNOW, I KINDA GLOSSED OVER THIS IN MY REPORT OUT OF THE AUDIT COMMITTEE, BUT THIS MADE NEWS LAST NIGHT THAT THE POLICE DEPARTMENT WAS WITHHOLDING INFORMATION FROM OUR CITY AUDITOR, WHICH IS A
VIOLATION OF THE CHARTER. BUT THIS IS A REFLECTION OF A CULTURE PROBLEM WHERE BROADLY SPEAKING THIS ADMINISTRATION IS WITHHOLDING INFORMATION. SO YOU KNOW AT THE BEGINNING OF THIS TERM WE HAD A REGULARLY
SCHEDULED LEADERSHIP MEETING WITH COUNCIL LEADERSHIP AND ADMIN LEADERSHIP, INCLUDING THE CABINET AND THE MAYOR. AND THE OVERARCHING THEME OF THOSE CONVERSATIONS WAS THAT WE CAN EITHER DO THIS ORGANICALLY AND COLLABORATE IFRLY, OR WE CAN DO
IT ACCORDING TO THE TEXT OF THE CHARTER. MY PREFERENCE IS WE WORK COLLABORATIVELY, NOT HAVE FORMAL ACTIONS TAKEN JUST TO DO THE BUSINESS OF THE CITY. BUT THE MAYOR CANCELED THAT MEETING AND WE'VE BEEN LEFT EXCLUSIVELY WITH THE CHARTER AS OUR GUIDE TO
FIGURE OUT HOW WE'RE GOING TO NAVIGATE THIS NEW GOVERNMENT STRUCTURE. I'M GRATEFUL THAT YOU'RE BRINGING THIS FORWARD. I'M DISAPPOINTED THAT IT HAD TO COME TO A LEGISLATIVE -- SO WE CAN MAKE GOOD DECISIONS AND MAKE
WISE CHOICES AS WE'RE GOING INTO A TIGHT BUDGET. BUT THAT'S THE BROADER CONTEXT HERE IS WE NEED THIS INFORMATION. IT SHOULDN'T HAVE TO TAKE BIG FORMAL ACTIONS JUST TO COLLABORATE. BUT THIS IS WHERE WE ARE.
>> THANK YOU. I PUT MYSELF IN QUEUE. I JUST WANTED TO KIND OF REITERATE TO THOSE THAT ARE KIND OF LISTENING ON AND TO US AS A BODY AND TO OUR CITY ENTERPRISE.
IT REALLY MATTERS TO ME THAT WE GET THIS INFORMATION BECAUSE THIS IS $650,000 OF TAXPAYER DOLLARS THAT WE APPROVED AS A CITY COUNCIL TO GET VALUABLE INFORMATION TO MAKE DETERMINATIONS ABOUT OUR CITY
WORKFORCE. NOT ONLY IS IT $650,000 OF TAXPAYER DOLLARS, IT IS VALUABLE AMERICAN RESCUE PLAN DOLLARS THAT WE GOT FROM THE FEDERAL GOVERNMENT IN COVID UTILIZED FOR THIS REPORT. SO I WAS VERY STARTLED TO LEARN THAT
WE WEREN'T GOING TO GET THIS INFORMATION REQUESTED INFORMALLY FOR US TO DO THIS BUSINESS. I SHARE THE SENTIMENT THAT I'M DISAPPOINTED AND A LITTLE FRUSTRATED THAT IT WOULD TAKE US USING OUR LEGISLATIVE DIRECTIVE
AUTHORITY TO DO SO. AS A CITY COUNCIL, WE HAVE SPECIFIC BUSINESS INTEREST TO THIS INFORMATION WHETHER IT IS CONFIDENTIAL OR NOT. AND WE HAVE HAD SEVERAL MOMENTS ON THE CITY COUNCIL WHERE WE HAVE RECEIVED CONFIDENTIAL INFORMATION AND
THERE HAS BEEN PROCESSES IN PLACE FOR US TO HAVE IT SO WE CAN HAVE THE DISCUSSIONS THAT WE NEED TO HAVE AND MAKE DECISIONS FOR OUR CONSTITUENTS AND FOR THE HEALTH OF OUR CITY, ESPECIALLY AS IT COMES TO BUDGETING CONVERSATIONS. NOW I DON'T SEE
THIS AS A WAY FOR US TO PUT CONFLICT AND BLAME ON TO OUR ADMINISTRATIVE STAFF. I SEE THIS AS AN ON RAMP TO CORRECT THE SITUATION AND FOR US TO NEVER DO
THIS AGAIN. THIS IS OUR OPPORTUNITY THROUGH THIS LEGISLATIVE DIRECTIVE TO CREATE THAT CONFIDENTIAL PROCESS THAT COUNCIL MEMBER KOSKI HAS ASKED FOR AND SAID IT DOESN'T PARTICULARLY MATTER TO HER WHAT THAT LOOKS LIKE. SAME GOES FOR ME. THIS IS AN OPPORTUNITY FOR
US TO TURN AROUND THE SITUATION AND TAKE A STEP TOWARDS CHANGING OUR CULTURE. I DO BELIEVE THAT CULTURE CHANGE NEEDS TO CHANGE AT THE TOP AS WELL AS IT COMES TO COLLABORATION. BUT HERE IS AN OPPORTUNITY FOR US TO CHANGE AND GROW AND LEARN FROM THIS MOMENT.
WHICH I REALLY DO BELIEVE THAT WE CAN DO BOTH AS THE CITY COUNCIL AND AS AN ADMINISTRATIVE AND AS AN ENTERPRISE. THIS WORK IS TOO IMPORTANT NOT TO. SO I WILL BE SUPPORTING THIS ITEM TODAY. THANK YOU. I WILL NEXT
RECOGNIZE COUNCIL MEMBER PALMISANO. >> THANK YOU, MADAM CHAIR. I GUESS I'LL SUPPORT THIS MOTION BECAUSE I'M FOR BEING ABLE TO HAVE ACCESS TO MORE INFORMATION. BUT I DON'T SEED IT AS BEING NECESSARY. THIS REALLY FEELS
LIKE YOU'RE POLITICIZING SOMETHING NEEDLESSLY HERE. AND WHEN STAFF MEMBERS CAME UP AND ASKED ME ABOUT THIS SITUATION AND THE STUDY LAST WEEK, I ASKED AND WAS TOLD WE COULD DO SMALL BRIEFINGS ON IT. WE COULD -- YES, THE COUNCIL HAS A RIGHT TO
THIS INFORMATION. BUT IT'S NOT SOMETHING THAT IS GOING TO BE RELEASED PUBLICLY. SO COUNCIL MEMBER KOSKI IS RIGHT IN THAT IT IS NON-PUBLIC DATA. AND PERSONALLY, IF THIS IS A 600-PAGE LONG DOCUMENT, I DON'T REALLY SEE THE NEED TO LEARN
EVERY GRITTY DETAIL TO COMPLETE OUR GOVERNANCE ROLE. I DON'T THINK YOU BARGAIN AND NEGOTIATE SALARIES FOR NON-REPRESENTED EMPLOYEES. THAT'S NOT WHAT WE DO UP HERE. WE DON'T GET INTO THE WEEDS ON INDIVIDUAL EMPLOYEES OR INDIVIDUAL THINGS. I THINK THE
COMMENTS FROM MY COLLEAGUES ARE RICH IN LAST YEAR YOU LITERALLY TOOK THE RAISES AWAY. -- SEE A PATH FORWARD AND HOPEFULLY TRYING TO GIVE THEM BACK SOME OF THAT SALARY INCREASE THEY WERE
DUE LAST YEAR. SO GO AHEAD AND DO A BRIEFING INSTEAD OF TRYING TO MAKE SOME POLITICAL POINT. I THINK IF YOU WANT CULTURE CHANGE, WE NEED MORE MATURITY
AND LESS GAME PLAYING. >> THANK YOU, COUNCIL MEMBER PALMISANO. COUNCIL MEMBER CHAVEZ. >> CAN I GET WHY THIS NEEDS TO BE A BRIEFING -- MORE THAN HALF A MILLION DOLLARS WERE SPENT. I'M NOT SURE WHY WE'RE HAVING A
CONVERSATION ABOUT CLOSED DOOR CONVERSATIONS. WHY IS THIS NOT PUBLIC? THAT'S CONFUSING TO ME. >> I FEEL LIKE THAT MIGHT BE A QUESTION THAT COULD BE ANSWERED BY OUR CITY ATTORNEY. SO I WILL LOOK TO CITY ATTORNEY ABELSON.
>> THANK YOU. VICE CHAIR CHOWDHURY, CHAIR CHAVEZ, THE INFORMATION IN THIS STUDY IS NOT PUBLIC RELATIONS DATA UNDER MINNESOTA STATUTES 13.37. SO THAT STATUTE COVERS DATA THAT WILL BE USED IN PREPARING
MANAGEMENT NEGOTIATION POSITIONS FOR COMPENSATION BOTH FOR REPRESENTED AND NON-REPRESENTED EMPLOYEES. I THINK IN COUNCIL MEMBER KOSKI'S INITIAL REMARKS SHE SORT OF TALKS ABOUT ALL THE WAYS THIS STUDY CAN BE USED TO IMPACT COMPENSATION. SO FOR THAT
REASON IT'S NOT PUBLIC DATA. NOW OF COURSE THE COUNCIL HAS A RIGHT TO ACCESS NOT PUBLIC DATA WHEN THEY HAVE A BUSINESS REASON. AND CERTAINLY THE COUNCIL HAS A BUSINESS REASON WITH ITS, YOU KNOW, CHARTER FUNCTION OVER THE FINANCES OF THE CITY. BUT SO WE DO NEED TO
DO IT IN A NOT PUBLIC MANNER WHETHER THAT BE BRIEFINGS OR OTHERWISE DISTRIBUTING THE REPORT IN A WAY THAT WILL STAY NOT PUBLIC. >> INTERESTING. THANK YOU. >> COUNCIL MEMBER KOSKI, I SEE YOU NEXT IN QUEUE.
>> YEAH, THANK YOU, MADAM CHAIR. I JUST WANT TO BE CLEAR THAT, AND I REPEAT THIS, HALF OF OUR GENERAL FUND IS PERSONNEL SALARIES. HALF. SO WHY DO WE WANT TO SEE THIS REPORT? BECAUSE THIS WILL HELP US INFORM
DECISIONS OF SHORT-TERM AND LONG-TERM BUDGET AND FISCAL RESPONSIBILITY THAT WE HAVE. AND I AM MERELY JUST FOLLOWING THE POLICIES THAT WE HAVE ADOPTED SO THAT WE CAN HAVE SHARED
INFORMATION. AND THAT IS WHAT I'M REQUESTING TODAY. WHEN I FIRST SENT THE REQUEST, IT LIKE PRESIDENT PAYNE SAID, IT COULD HAVE BEEN SENT TO ME WITHIN MOMENTS. ALL OF US. IT COULD HAVE BEEN PRINTED OUT. 13 COPIES WITH WRITTEN ACROSS CONFIDENTIAL
AND BROUGHT TO OUR DESKS WITHIN HOURS OR EVEN DAYS. INSTEAD, WE ARE LOOKING OVER A MONTH FOR US TO GET THIS INFORMATION SO THAT WE CAN MAKE SURE THAT WE'RE FULLY INFORMED AS WE GO THROUGH THIS BUDGET PROCESS. THANK YOU. >> THANK YOU. I WILL RECOGNIZE
COUNCIL VICE PRESIDENT CHUGHTAI. >> THANK YOU, MADAM CHAIR. I'M FEELING A LITTLE BIT FRUSTRATED BY THE CHARACTERIZATION THAT THIS GAMESMANSHIP OR THE CHARACTERIZATION THAT THIS IS POLITICS. YOU KNOW, I'VE BEEN
INCLUDED IN ALL OF THE COMMUNICATIONS WITH THE APPROPRIATE STAFF ASKING FOR THIS INFORMATION, AND IT'S BEEN A NUMBER OF FOLLOW UPS HAVE TAKEN PLACE OVER THE COURSE OF,
YOU KNOW, I WANT TO SAY IT'S BEEN A MONTH AND A HALF AT THIS POINT. AND THEN THIS IS THE LOGICAL END POINT. YOU KNOW. I JUST DON'T KNOW HOW ELSE TO PUT IT. THANK YOU, MADAM CHAIR.
>> THANK YOU. I WILL RECOGNIZE COUNCIL MEMBER CHAVEZ. >> THANK YOU, CHAIR CHOWDHURY. I ALSO WANT TO PUSHBACK ON THIS ASSERTION THAT THIS IS POLITICAL. IT'S NOT. IT'S LITERALLY JUST ASKING FOR INFORMATION THAT WE'RE ALLOWED TO ASK UNDER OUR CITY COUNCIL AUTHORITY. THE OTHER COMPONENT
I'D LIKE TO MENTION IS EVEN THE -- COUNCIL ALWAYS HAS TO BEG FOR MORE TRANSPARENCY, MORE SUPPORT, ACCOUNTABILITY, OVERSIGHT, AND THAT'S PERSONALLY FRUSTRATING WHEN WE LITERALLY
HAVE TO ASK FOR THE LAW TO BE FOLLOWED. IT'S JUST WEIRD TO ME THAT IT HAS COME TO THIS POINT HERE IN MINNEAPOLIS. >> THANK YOU. IS THERE ANYONE ELSE? OKAY. I'M PUTTING MYSELF
IN QUEUE. I'M JUST GOING TO SAY I'M LOOKING FORWARD TO THIS. AGAIN, I THINK THIS IS A PART OF OUR OVERSIGHT FUNCTION THAT IS GIVEN TO US BY CHARTER AS THE MINNEAPOLIS CITY COUNCIL. I STILL BELIEVE THAT THIS IS A GOOD TURNING POINT AND A GOOD
PLACE FOR CORRECTION. I THINK WE CAN JUST DO BETTER AS A CITY. I THINK WHEN WE MAKE REMARKS SAYING THAT ASKING FOR $650,000 OF TAXPAYER DOLLARS, HOW THEY'RE USED TO BE SHARED WITH THE COUNCIL AS POLITICAL OR
GAMESMANSHIP, IT DOESN'T HELP US. I THINK IT FURTHER DIVIDES US IN A MOMENT WHERE WE JUST NEED TO COME TOGETHER. AND NOT LOST ON ME, THE COUNCIL DEFINITELY NEEDS TO PARTICIPATE IN THAT DOING BETTER. AND HERE IS A GOOD INFLECTION POINT FOR US TO MAKE A CHOICE TO EITHER DO
BETTER OR NOT TO. AND I'M HOPING WE CAN CHOOSE TO DO BETTER. SO ON THAT MOTION, IS THERE A MOTION BEFORE US AND IS THERE A SECOND? >> SO MOVED. >> SECOND. >> GREAT. ON THAT MOTION, I WILL
HAVE THE CLERKS CALL THE ROLL. >> COUNCIL MEMBER PAYNE. >> AYE. >> RAINVILLE. >> AYE. >> VETAW. >> AYE. >> CASHMAN. >> AYE. >> JENKINS. >> AYE. >> CHUGHTAI. >> AYE.
>> KOSKI. >> AYE. >> PALMISANO. >> AYE. >> VICE CHAIR CHOWDHURY. >> AYE. >> AND CHAIR CHAVEZ. >> AYE. >> THERE ARE 10 AYES AND NO NAYS. >> GREAT. THE MOTION CARRIES. >> MADAM CHAIR.
>> YES, COUNCIL MEMBER PALMISANO. >> MY UNDERSTANDING IS THAT YOU WILL UPDATE THIS LAST PARAGRAPH SO THAT IT DOESN'T SAY IT WOULD BE AVAILABLE TO THE PUBLIC VIA LIMS, RIGHT? THAT YOU'RE GOING TO BRING AN UPDATED VERSION
FORWARD THURSDAY. BECAUSE THAT'S WHAT I READ. THAT'S WHAT I WAS REACTING TO THAT YOU WANT THIS INFORMATION OUT ON LIMS AND THAT'S CLEARLY NOT WHERE THIS CONVERSATION HAS GONE. SO I'M JUST MAKING SURE. AND I SEE COUNCIL VICE PRESIDENT NODDING HER HEAD THAT YOU'RE GOING TO
ACTUALLY MODIFY THIS LANGUAGE TO SUBSTANTIVELY CHANGE IT AND BRING THIS UPDATED LANGUAGE ON THURSDAY TO PASSING. >> THAT'S A GREAT POINT OF CLARIFICATION. I'M GOING TO ASK THE AUTHOR IF SHE COULD WEIGH IN ON THAT. >> YES, THANK YOU, MADAM CHAIR. WE JUST HEARD FROM THE CITY ATTORNEYS. I DO HAVE SOME
LANGUAGE. BUT I WANT TO MAKE SURE WE RUN IT BY THEM SO THAT WE HAVE THE CORRECT LANGUAGE. BUT WE WILL HAVE THAT UPDATED BY THURSDAY. >> SO I'M JUST POINTING OUT THAT WE JUST VOTED AFFIRMATIVELY ON SOMETHING THAT IS WRONG AND AGAINST DATA PRACTICES, BUT WE
WILL HAVE IT CORRECTED BY THURSDAY. >> I WILL MAKE THE ARGUMENT THAT IN THE LEGISLATIVE INTENT WE SAID IF IT NEEDS TO BE CONFIDENTIAL, WE NEED TO MAKE IT CONFIDENTIAL. I WILL APPRECIATE THE FACT THAT WE PUT IN THE
PUBLIC RECORD. COUNCIL MEMBER KOSKI IS WILLING TO -- >> CAN YOU TELL ME WHERE IT SAYS THAT IN THE RCA? >> AS I SAID, THAT IS WHAT WE DISCUSSED TODAY ON THE DAIS TO PUT IN THE LEGISLATIVE RECORD. >> I SEE. SO I MEAN, I'M JUST
SAYING, I'M TAKING YOUR WORD ON THIS AND I VOTED YES TO TAKE YOUR WORD ON THIS THAT THIS IS BEING CORRECTED AND BROUGHT FORWARD FOR A LEGAL VOTE ON THURSDAY. >> EXCELLENT. THAT SOUNDS LIKE WHAT THE AUTHOR IS PLANNING ON DOING. GREAT. WONDERFUL. WE WILL
NOW MOVE TO -- >> I'M ON QUEUE. >> OH, I APOLOGIZE. COUNCIL MEMBER CHAVEZ. >> I MEAN, WE CAN REDO THE VOTE IF YOU FEEL COMFORTABLE PALMISANO SO THAT YOU CAN CHANGE YOUR VOTE ON THURSDAY. OTHERWISE, I DO WANT TO ASK THE
ATTORNEY AS WELL, THE COUNCIL DOES HAVE THE -- I'D LIKE TO KNOW WHAT WE WOULD NEED TO DO FOR THAT. >> OKAY. I WILL RECOGNIZE CITY ATTORNEY ABELSON. >> THANK YOU. CHAIR CHOWDHURY
AND COUNCIL MEMBER CHAVEZ, THE CITY COUNCIL DOES NOT HAVE THE AUTHORITY TO WAIVE THE DATA PRACTICES ACT. YOU MAY BE RECALLING THE CITY COUNCIL WAIVED ATTORNEY-CLIENT PRIVILEGE WHICH IS WITHIN THE CITY COUNCIL'S LEGAL AUTHORITY. BUT
THE CITY COUNCIL DOES NOT HAVE THE AUTHORITY TO MAKE NOT PUBLIC DATA PUBLIC, AND NEITHER DOES THE MAYOR. THAT'S SET IN LAW. >> GREAT. FOR ATTORNEY ABELSON, JUST JUMPING OFF THAT. EVEN IF THIS ITEM PASSED FORWARD, THERE WOULD BE NO LEGAL WAY FOR THIS
TO EVEN BE ATTACHED TO LIMS BECAUSE WE ARE PROHIBITED BY STATE LAW, CORRECT? >> CHAIR CHOWDHURY, CORRECT. AS LONG AS THE DATA REMAIN NOT PUBLIC. I MEAN, AT SOME POINT IN THE FUTURE, THE STATUS OF THIS COULD CHANGE. YOU KNOW, ONCE IT'S USED. BUT YES, AS LONG AS IT CONTINUES TO BE CLASSIFIED AS
LABOR RELATIONS DATA, IT IS NOT PUBLIC. >> EXCELLENT. I THINK WE CAN ALL FIND SOME PEACE OF MIND THAT THIS WILL NOT BE ATTACHED TO LIMS AND IT NEVER WAS GOING TO BE. WE WILL NOW MOVE ON TO ITEM THREE ON THE DISCUSSION AGENDA. THIS IS A WALK-ON ITEM FROM
COUNCIL PRESIDENT PAYNE. I WILL NEXT RECOGNIZE COUNCIL PRESIDENT PAYNE TO SPEAK TO THE ITEM. >> THANK YOU, MADAM CHAIR. THIS IS A RESOLUTION RECOGNIZING THE RELATIONSHIP OF THE BOARD OF ESTIMATE AND TAXATION AND CITY COUNCIL. SOME OF YOU MAY HAVE
FOLLOWED ALONG. BUT WE NOW HAVE FULL-TIME STAFF MEMBER SUPPORTING THE BOARD OF ESTIMATE AND TAXATION IN THE AUDIENCE. THANK YOU FOR BEING HERE. AND YOU ACTUALLY GOT TO SEE A LITTLE SAMPLING OF THAT COLLABORATION
IN YESTERDAY'S PRESENTATION AROUND MUNICIPAL REVENUE. THAT WAS A BODY OF WORK THAT HAD SOME KIND OF MUDDLED SOURCING ABOUT THE INITIATION ABOUT THE BOARD OF ESTIMATE AND TAXATION AND CITY COUNCIL ALSO HAVING AN INTEREST. IT GREW OUT OF
COMMITMENT THAT I MADE WITH THE MAYOR THAT WE AS A CITY WILL BE DOING RESEARCH ON NEW REVENUE SOURCES. WE BROUGHT MS. KETERLING ON AS A FULL-TIME STAFF MEMBER. SHE JUMPED RIGHT
INTO THAT BODY OF WORK. WHICH IS THE ROLE OF THE BOARD OF ESTIMATE AND TAXATION VERSUS CITY COUNCIL. HOW DO WE BEST UTILIZE OUR STAFF TIME TO SUPPORT BOTH OF THOSE BODIES OF
WORK. THIS IS ESSENTIALLY CREATING A CLEAR GUIDE RAILS OF HOW WE WILL INTERACT WITH THE BOARD OF ESTIMATE AND TAXATION. THOSE TWO BODIES ARE TECHNICALLY SEPARATE AND INDEPENDENT. MR. CARL, WOULD YOU LIKE TO SPEAK TO THAT AT ALL AND MAYBE MAKE SURE I'M COMPLETELY ACCURATE.
>> WELCOME, MR. CARL. >> THANK YOU, MADAM CHAIR AND TO COUNCIL PRESIDENT PAYNE, YES, ALL OF THOSE THINGS ARE CORRECT. AND IN ADDITION, THE BET STAFF INFORMATION IS UNIQUE WITHIN THE MUNICIPAL ENTERPRISE. IT IS A --
BOARD OF ESTIMATE AND TAXATION. HOWEVER, IT DOES EXIST IN THE MUNICIPAL ENTERPRISE. BUT THERE IS NO OPERATIONAL CENTER FOR THAT POSITION OR FOR THE BOARD OF ESTIMATE AND TAXATION. AS A CONSEQUENCE, YOU MAY BE AWARE OR NOT, THAT THE BOARD OF TAXATION
IN ITS BYLAWS HAS NAMED THE CITY CLERK AS ITS OWN CLERK. -- WE CLERK FOR THEM THE SAME WAY WE DO FOR THE CITY COUNCIL AND COUNCIL COMMITTEES. WE ALSO PROVIDE AN OPERATIONAL CENTER FOR THE COUNCIL SUCH THAT BETWEEN TRANSITIONS AND MEMBER SUPPORT, WE PROVIDE THAT
ADMINISTRATIVE FUNCTIONALITY. SO THAT INCLUDES, FOR EXAMPLE, FINANCIAL AND ADMINISTRATIVE ASSISTANCE, PERSONNEL ASSISTANCE INCLUDING PAYROLL APPROVALS, PURCHASING PROCUREMENT AND OTHER MATTERS. THE BET HAS NO SUCH ORGANIZATIONAL CENTER. SO AS AN
EXAMPLE, WHEN MS. KITERLING WAS HIRED, THERE WAS NO ONE TO BRING HER ON BOARD TO TRAIN HER, TO PROCESS HER PAY ROLL, TO APPROVE HER PURCHASES, TO AUTHORIZE CONTINUING EDUCATION, TRAVEL, THOSE TYPES OF THINGS. THIS RESOLUTION, THERE'S A COMPANION
RESOLUTION FOR THE BET AS WELL TO ADOPT, WHICH WOULD THEN BE THE TWO SEPARATE BODIES AGREEING THAT THE BET STAFF POSITION COULD BE ADMINISTRATIVELY HOUSED WITHIN THE DEPARTMENT SO THAT THE OFFICE OF CLERK CAN PROVIDE THOSE TYPES OF ASSISTANCE AND
SUPPORT TO THE BET STAFF POSITION WHICH ARE CURRENTLY LACKING. AND THEN IN ADDITION TO SUPPORTING THE BET AND THE BET STAFF'S EXECUTIVE SECRETARY, IT WOULD ALLOW SOME COLLABORATIVE WORK BETWEEN THE BET STAFF
POSITION AND OUR OWN RESEARCH AND OVERSIGHT DIVISION WHEN THAT POSITION IS NOT OTHERWISE ENGAGED IN BET SUPPORT. I THINK IT IS A MUTUALLY BENEFICIAL BETWEEN THE TWO BODIES. HAPPY TO ANSWER ANY SPECIFIC QUESTIONS IF
THERE ARE ANY. >> THANK YOU SO MUCH, MR. CARL. ARE THERE ANY MEMBERS WHO WOULD LIKE TO GET IN TO DISCUSSION FOR THAT? COUNCIL MEMBER RAINVILLE, I WILL RECOGNIZE YOU. >> THANK YOU. MR. CLERK, YOU HAD
MENTIONED THAT THERE'S A CERTAIN PERCENTAGE OF THE TIME THAT THE STAFF IN BET AND YOURS. WHAT PERCENTAGES ARE THOSE? >> THROUGH THE CHAIR, COUNCIL MEMBER RAINVILLE, I CAN'T GIVE
YOU A SET PERCENTAGE AND IT'S NOT OUR INTENTION TO HAVE A CERTAIN PERCENTAGE SUCH AS 80-20, 70-30. THE BET STAFF SUPPORTS THE BET. TO THE EXTENT THAT THERE'S ANY TIME AVAILABLE FOR THAT PERSON TO ASSIST WITH
LEGISLATIVE RESEARCH WORK, THEN THAT WOULD BE PERMITTED. IT WOULD BE ORDINARILY TO THE EXTENT THAT THEY'RE AVAILABLE. BECAUSE THE BET STAFF POSITION IS REQUIRED AS PART OF THEIR DUTIES TO HAVE A BACKGROUND
EXPERTISE, THERE IS I THINK A NATURAL AFFINITY OR SYNERGY BETWEEN -- BY THE LEGISLATIVE RESEARCH AND OVERSIGHT DIVISION. >> THANK YOU. >> THANK YOU. IS THERE ANY FURTHER DISCUSSION? SEEING NO
FURTHER DISCUSSION, IS THERE A MOTION TO APPROVE THE RESOLUTION? >> SO MOVED. >> SECOND. >> ON THAT MOTION, ALL THOSE IN FAVOR SAY AYE. >> AYE. >> THOSE OPPOSED SAY NAY. ANY ABSTENTIONS? THE AYES HAVE IT
AND THAT MOTION IS CARRIED. NOW WE WILL BE RECEIVING AND FILING A PRESENTATION RELATED TO SOCIAL HOUSING AND ITS OVERVIEW. I WILL WELCOME UP ANDREW HAWKINS AND
SARA RENNER FROM THE LRO FOR THE PRESENTATION. THANK YOU. >> ALL RIGHT. GOOD MORNING, CHAIR CHAVEZ, VICE CHAIR
CHOWDHURY, AND MEMBERS OF THE COMMITTEE. MY NAME IS ANDREW HAWKINS. I SERVE AS THE DIRECTOR. I'M GOING TO TRY TO KEEP MY PART AS SHORT AS I CAN TODAY AND TURN IT OVER TO SARA RENNER FOR DETAILS. BUT WE'RE
ALREADY TO TALK ABOUT THE SOCIAL HOUSING OVERVIEW AND STUDY FRAMEWORK. WE ALWAYS WANT TO ENSURE WE'RE LETTING EVERYBODY KNOW ESSENTIALLY WHAT BROUGHT US TO THIS POINT. THIS ONE IS UNIQUE BECAUSE IT'S THE FIRST TIME BEING A NEW GROUP, IT HAD TO HAPPEN EVENTUALLY. BUT WHEN WE RECEIVED A BUDGET ALLOCATION
THAT WAS TIED DIRECTLY TO WORK. FOLLOWING THIS, WE SAT DOWN TO DETERMINE THE BEST WAY FORWARD IN TERMS OF HOW WE WERE GOING TO BE ABLE TO FILL THIS REQUEST. WE DETERMINED THAT WE WOULD DO A POLICY BRIEFING. THE PURPOSES
WERE TWO-FOLD. THE FIRST BEING THAT IT WOULD GIVE OUR STAFF A BASE OF KNOWLEDGE IN ORDER TO PURSUE AN RFP. THE SECOND PIECE THAT CAME OUT OF IT WAS LEVERAGING THAT POLICY BRIEFING TO SHARE WITH YOU, WHICH WE'RE
DOING TODAY, TO HELP ENSURE WHATEVER WE'RE DOING IS GOING TO BE GUIDED BY OTHER OPTIONS OF MUNICIPALITY DOING THIS WORK. BEING ALIGNED WITH WHAT COUNCIL -- RFP AND REQUEST FOR
PROPOSALS WOULD BE. WHAT THE SCOPE LOOKS LIKE. SINCE THERE ARE THREE MAIN BUCKETS OF SOCIAL HOUSING RELATED WORK. WITH THAT, I'M GOING TO GO AHEAD AND TURN IT OVER TO SARA.
>> THANK YOU, ANDREW. CHAIR CHOWDHURY, I'M GOING TO PROVIDE AN OVERVIEW OF SOCIAL HOUSING STARTING WITH SO WHAT IS IT? SOCIAL HOUSING IS RENTAL HOUSING THAT IS OWNED AND MANAGED BY PUBLIC OR PUBLIC ORIENTED
LANDLORDS. LONG STANDING MODELS SUCH AS IN VIENNA, SINGAPORE AND MONTGOMERY COUNTY, MARYLAND, HAVE INSPIRED A RECENT SOCIAL HOUSING MOVEMENT IN THE U.S. IN
THE LAST FEW YEARS, SOME OF THEM VERY RECENTLY, SOCIAL HOUSING MODELS HAVE BEEN ADOPTED IN ATLANTA, SEATTLE, CHICAGO, COLORADO, RHODE ISLAND,
MASSACHUSETTS, AND HAWAII. DRIVING THIS MOVEMENT -- MUNICIPALITIES TURNED SOCIAL HOUSING MODELS OUT OF FRUSTRATION WITH NOT BEING ABLE TO MEET THEIR HOUSING GOALS DESPITE MAXING OUT STATE AND
FEDERAL SUPPORT. THE MODELS VARY WIDELY, REFLECTING LOCAL MARKETS AND PRIORITIES. WHAT THEY HAVE IN COMMON IS THE DESIRE TO CREATE PERMANENTLY AFFORDABLE HOUSING. MOST OF THE SOCIAL HOUSING MODELS DO NOT RELY, OR AT LEAST DO NOT RELY AS MUCH ON
SUBSIDIES, AND THAT INCLUDES THE FEDERAL LOW INCOME HOUSING TAX CREDIT. AND BY AVOIDING THESE FEDERAL PROGRAMS, THEY AVOID RESTRICTIONS, AND SO THEREFORE, CAN GENERATE PERMANENT HOUSING WITHOUT DEADLINES. IN PRACTICE,
THE TERM SOCIAL HOUSING IS USED VERY BROADLY TO REFER TO ALL SORTS OF INITIATIVES. THE NYU FERMAN CENTER HAS DEFINED THE CONCEPT MORE TIGHTLY AS A U.S. PUBLIC DEVELOPER MODELS. AND ALL
SUCH MODELS, STATE OR LOCAL GOVERNMENT ENTITIES ACT EITHER DIRECTLY AS A HOUSING DEVELOPER OR THEY WORK BY FORMAL AGREEMENT WITH DEVELOPMENT PARTNERS TO ENSURE SOME DEGREE OF PUBLIC OWNERSHIP. THE ADVANTAGES OF
PUBLIC DEVELOPER MODELS IS THAT THEY BRING A PUBLIC MISSION TO HOUSING AND CAN LEVERAGE TOOLS THAT THE PRIVATE SECTOR CANNOT, SUCH AS PUBLIC LAND, FAVORABLE FINANCING, AND REGULATORY TOOLS. THE CHALLENGES, HOWEVER, ARE
ALSO CONSIDERABLE AND THEY INCLUDE INVESTING ENOUGH UPFRONT TO ESTABLISH A HIGH SKILLED, HIGH FUNCTIONING PUBLIC DEVELOPER ENTITY. WHICH IS A GOVERNMENT ENTITY. ANOTHER CHALLENGE IS BUILDING A SYSTEM OF PUBLIC FINANCE THAT IS
SUFFICIENT TO SUSTAIN BOTH THE AFFORDABILITY AND THE QUALITY OF HOUSING OVER TIME. SO IN THE CONTEXT OF CONSULTING WITH THE STATE OF RHODE ISLAND, THE NYU
FERMAN CENTER LOOKED ACROSS THE COUNTRY AND DEVELOPED A TYPOLOGY. THEY ESSENTIALLY CREATED THREE DIFFERENT GROUPS. THE FIRST GROUP IS GROUP A, WHICH IS MIXED INCOME HOUSING. IN GROUP A MODELS,
MUNICIPALITIES OR STATES ESTABLISH A GOVERNMENT-BACKED REVOLVING LOAN FUND. THESE FUNDS OFFER DEVELOPERS LOWER COST FINANCING IN RETURN FOR GOVERNMENT OWNERSHIP STAKE IN THE PROJECT. MONTGOMERY COUNTY, MARYLAND, FOR EXAMPLE,
ESTABLISHED $100 MILLION HOUSING PRODUCTION FUND USING BOND ISSUANCES. THEIR REVOLVING LOAN FUND INVOLVES CONSTRUCTION FINANCING TO DEVELOPERS AND ESSENTIALLY REPLACES THE ROLE OF
PRIVATE EQUITY. THE MONTGOMERY COUNTY HOUSING -- 5% RETURN LESS THAN WHAT PRIVATE EQUITY CHARGES. IN RETURN, THE COMMISSION DEMANDS A HIGHER SHARE OF MORE DEEPLY AFFORDABLE UNITS. THE COUNTY COMMISSION
INVESTS DIRECTLY IN MIXED INCOME HOUSING USING THE PROFIT FROM THEIR MARKET RATE UNITS TO SUBSIDIZE THE INCOME RESTRICTIVE UNITS AND ALSO REINVESTS THE EQUITY IN OTHER PROJECTS. FOR
THIS REASON, GROUP A MODELS SUCH AS MONTGOMERY COUNTY, THEY WORK BEST IN HIGHER COST NEIGHBORHOODS. MONTGOMERY COUNTY GENERATES UNITS THAT SERVE HOUSEHOLDS EARNING AROUND 50-65%
AREA MEDIAN INCOME, AMI. CHICAGO AND ATLANTA ARE USING -- EARNING 80% AMI. BUT THESE ARE NOT YET BUILT. ACCORDING TO NYU, GROUP A
MODELS ARE BEST USED TO FILL AFFORDABILITY GAPS FOR MODERATE INCOME HOUSEHOLDS. THEY ALSO OFFER RENTAL OPTIONS OR VOUCHERS. GROUP A MODELS REQUIRE TWO THINGS. THE FIRST IS
MULTIPLE FINANCING TOOLS. AND THIS IS IN ADDITION TO THE REVOLVING LOAN FUND AND . THIS IS TO MAKE THEM AFFORDABLE AS
POSSIBLE. THE OPPORTUNITY COMMISSION, FOR EXAMPLE, USES TAX EXEMPTIONS, INCLUSIONARY ZONING, AND OFTEN LEVERAGES PUBLICLY OWNED LAND. THEY ESTIMATE ABOUT 10-15%. ATLANTA,
GEORGIA ALSO BUILDS ON PUBLICLY OWNED LAND AND THEY ALSO DRAW ON CITY-OWNED LAND AS AN ADDITIONAL FORM OF EQUITY. COLORADO AND SEATTLE HAVE ADOPTED NEW TAXES TO PAY FOR THEIR SOCIAL HOUSING INITIATIVES. SPECIFICALLY TO RAISE EQUITY IN ORDER TO ISSUE
BONDS FOR THEIR REVOLVING LOAN FUNDS. THE SECOND REQUIREMENT FOR GROUP A MODELS TO BE SUCCESSFUL IS MAKING SURE TO HAVE SUFFICIENT UPFRONT INVESTMENT. ESSENTIAL TO GROUP A WHICH IS SOUND SKILLED
LEADERSHIP AND A RANGE OF EXPERTISE, INCLUDING IN RISK ASSESSMENT, UNDERWRITING, AND DEVELOPMENT. THE GOVERNANCE OF SUCH PUBLIC DEVELOPER ENTITIES IS CRITICALLY IMPORTANT. SOMETIMES THEY ARE HOUSED WITHIN
PUBLIC HOUSING AUTHORITIES SUCH AS IN MONTGOMERY COUNTY. SOMETIMES PUBLIC DEVELOPER ENTITIES ARE HOUSED IN A NEW NONPROFIT AGENCY THAT WORKS CLOSELY WITH THE CITY AND THE COUNCIL SUCH AS IN ATLANTA. AND SOMETIMES AN INDEPENDENT ENTITY
IS CREATED SUCH AS IN SEATTLE. THE SECOND TYPOLOGY GROUP IS PUBLIC HOUSING CONVERSIONS. THIS IS NOT LIKE GROUP A. THESE MODELS FOCUS ON CREATING NEW
MIXED INCOME -- GROUP A FOCUSES ON NEW MIXED INCOME. GROUP B EXISTING PUBLIC HOUSING. AND IN THIS MODEL, PUBLIC DEVELOPERS OPEN NEW UNITS AS OPPOSED TO NEW
DEVELOPMENTS. STATES AND CITIES EMPLOYING GROUP B MODELS REBUILD PROGRAM, WHICH USED TO BE KNOWN AS THE FAIR COST TO RAD PROGRAM. THEY USED THE SUBSIDIES TO REDEVELOP PUBLIC HOUSING CONTRIBUTING TO DEEPLY
AFFORDABLE HOUSING UNITS. THE MINNEAPOLIS PUBLIC HOUSING AUTHORITY HAS AROUND 900 UNITS OF UNUSED CAPACITY. THAT MEANS THAT FEDERAL LAW ALLOWS MPHA TO OPERATE AN ADDITIONAL 900 UNITS WHICH ARE NOT CURRENTLY
OPERATIONAL DUE TO FUNDING SHORT FALLS. MPHA IS NOW PILOTING INITIATIVE THAT DRAWS ON SUBSIDIES TO DEVELOP 15 AFFORDABLE UNITS. TO BE VIABLE,
GROUP -- I SHOULD SAY THERE'S POTENTIAL SCOPE FOR THAT TO BE EXPANDED AND ACCELERATED. GROUP B REQUIRES ADDITIONAL FUNDING IN ADDITION TO THE SUBSIDIES FROM
THE FEDERAL PROGRAM. THE CITY OF MINNEAPOLIS IS FAMILIAR WITH THIS BECAUSE THEY ALLOCATED A $1.3 MILLION DIRECT CONFTRIBUTIN
TO MPHA. THE CAMBRIDGE HOUSING AUTHORITY IN THE CITY OF CAMBRIDGE HAS FOUND A WAY TO COMBINE, RESTORE AND BUILD WITH THE LOW INCOME TAX CREDIT, SOFT DEBT FROM THEIR STATE, AND IN
SOME CASES, CITY FUNDS AND USING ALL THESE SOURCES OF FUNDS, THEY'VE BEEN ABLE TO GROW THE AVAILABILITY OF 100% AFFORDABLE HOUSING. THIS IS FOR EXTREMELY LOW INCOME HOUSEHOLDS. THE CAMBRIDGE HOUSING AUTHORITY CONSULTS WITH OTHER PHAs, PUBLIC
HOUSING AUTHORITY, INCLUDING IN BOSTON, AND THEY'VE BEEN SPREADING THE APPROACH IN NEW ENGLAND. ADOPTING THE REQUIREMENT FOR GROUP B MODEL IS REALLY HAVING A STRONG PHA WITH EXPERTISE AND CAPACITY TO UNDERTAKE LARGE SCALE
DEVELOPMENT. GROUP C MODELS OF SOCIAL HOUSING. THIS IS THE FINAL ONE. THIS IS KNOWN AS AFFORDABLE HOUSING. GROUP C MODELS USE DEDICATED FUNDING STREAMS AND PORTFOLIOS OF
SMALLER PROPERTIES TO CROSS SUBSIDIZED DEVELOPMENT COSTS. EXAMPLES IN DAKOTA COUNTY, MINNESOTA, AND IDAHO SHOWCASE HOW PUBLICLY DRIVEN DEVELOPMENT CAN SUSTAIN LONG-TERM AFFORDABILITY. SOMETIMES WITHOUT RELYING ON THE FEDERAL LOW
INCOME HOUSING TAX CREDIT. DAKOTA COUNTY, MINNESOTA, FOR EXAMPLE, OWNS AND OPERATES 1700 SENIOR UNITS IN 30 PROPERTIES FOR HOUSEHOLDS WITH INCOMES OF
80% AMI. THE WORK IS CARRIED OUT BY THE COUNTY'S INDEPENDENT DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY WHICH OPERATES AS BOTH A PUBLIC HOUSING AUTHORITY AND A HOUSING FINANCE AGENCY. TWO CHARACTERISTICS UNDERLIE THE SUCCESS AND SUSTAINABILITY OF
GROUP C MODELS. FIRST, THEY RELY ON A LARGE PORTFOLIO OF UNITS USUALLY DEVELOPED OVER DECADES AS IN DAKOTA COUNTY TO SPREAD OUT THE COSTS OF FINANCING, MANAGEMENT, AND REPAIR. SECOND, THEY HAVE FOUND A WAY TO AVOID
OR TO MANAGE COMPETITION WITH NON-PROFIT DEVELOPERS FOR GOVERNMENT SUBSIDIES. FOR THE LAST 30 YEARS, DAKOTA COUNTY HAS AVOIDED THIS KIND OF COMPETITION WITH NONPROFITS BY DRAWING ON A TAX LEVY AS A DEDICATED SOURCE
OF FUNDS FOR HOUSING. AND THEY ALSO USE THEIR BONDING AUTHORITY TO FINANCE AFFORDABLE PROJECTS. THE STRUCTURE OF THEIR BONDS ALLOWS THEM TO POOL REVENUE FROM ACROSS THEIR LARGE PORTFOLIO OF DEVELOPMENTS TO SERVICE THEIR DEBT AND TO SPREAD OUT THE COST
OF REPAIRS. TO KEEP THINGS AFFORDABLE, GROUP C MODELS FOCUS ON DEVELOPING SMALLER SCALE AND LESS EXPENSIVE PROJECTS. DAKOTA COUNTY SENIOR HOUSING DEVELOPMENTS, FOR EXAMPLE, ARE HIGH QUALITY BUT THEY SKIP OUT ON SOME OF THE EYE COST
AMENITIES SUCH AS DISH WASHERS. IN HIGH COST HOUSING MARKETS, GROUP C MODELS ARE NOT FINANCIALLY VIABLE TYPICALLY. AND THEY'RE MORE DIFFICULT TO SUSTAIN. AND WITH THAT, I WILL TURN IT OVER TO ANDREW TO TALK ABOUT NEXT STEPS.
>> ALL RIGHT. THANK YOU, SARA. WE'LL BE REAL QUICK. JUST WANTED TO GO OVER POTENTIAL NEXT STEPS WITH THIS. OBVIOUSLY THERE'S GOING TO BE OPTIONS THAT ARE COVERED WITH THIS. BUT THERE'S A COUPLE OF LINE ITEMS TO PUT BEFORE YOU ALL. IN
THE EVENT WE WANT TO GO OVER FOR A DEEPER DIVE, PLEASE REACH OUT TO OUR OFFICE. JUST TO MAKE SURE WE HAVE AN UNDERSTANDING. IF THERE'S ANY CONSENSUS ON A
PREFERRED GROUP. THE REQUEST FOR PROPOSALS WILL IDENTIFY THE PREFERRED APPROACH TO BE PRIORITIZED. BUT I DO WANT TO EMPHASIZE JUST BECAUSE WE PRIORITIZE SOMETHING DOESN'T MEAN WE'RE GOING TO BLOCK OUT OTHER OPPORTUNITIES THAT ARE IDENTIFIED ALONG THE WAY. ONCE WE GET TO THIS POINT, THE LRO
STAFF WILL COORDINATE A PANEL. I WANTED TO MAKE SURE THIS WAS NOTED BECAUSE SOCIAL HOUSING IS VERY COMPLEX AND INVOLVED THING. AS MUCH AS WE WANT TO LEARN AS MUCH AS WE CAN SUPPORT THE WORK, THERE'S ALSO SUBJECT MATTER STAFF ON THE ADMINISTRATIVE SIDE
THAT ARE GOING TO BE RESPONSIBLE FOR SOME OF THE AREAS THAT ARE KEY FOR THIS. WE WANT TO ENSURE WE'RE REACHING OUT AND DOING THIS COLLABORATIVELY SO THERE'S BUY IN AND EVERYONE IS ON THE SAME PAGE GOING FORWARD. LASTLY, ONCE A CONTRACT -- WHEN AND IF A
CONTRACT IS ESTABLISHED ON THIS ITEM, A TIMELINE WILL BE ESTABLISHED THAT IDENTIFIES SPECIFIC STAGES OF WORK AND REPORTING DEADLINES SO THEY CAN KEEP COUNCIL ABREAST OF THE WORK AS IT PROCEEDS INTO NEXT YEAR.
WITH THAT, I WILL CONCLUDE OUR PRESENTATION AND SARA AND MYSELF ARE HAPPY TO STAND FOR QUESTIONS. >> THANK YOU SO MUCH, MR. HAWKINS. I WILL RECOGNIZE COUNCIL MEMBER CASHMAN. >> THANK YOU, MADAM CHAIR. THANK YOU, DIRECTOR HAWKINS. THANK YOU, SARA. I HAD A COUPLE OF
QUESTIONS ABOUT YOUR RESEARCH HERE. SO ON PAGE 9, THE NYU FURMAN CENTER ADVICES PUBLIC DEVELOPMENT MODELS BE USED WHEN THEY ADD TO THE LANDSCAPE RATHER THAN REPLACE EXISTING CAPABLE PARTNERS. SO I'VE BEEN THINKING ABOUT HOW SOCIAL HOUSING CAN
ACTUALLY BE PART OF A SOLUTION TO SPECIFIC NEEDS IN THE HOUSING SECTOR THAT AREN'T BEING ADDRESSED BY OTHER PUBLIC OR NON-PROFIT OR PRIVATE PARTNERS. SO I'M WONDERING IF YOU HAVE A SENSE OF WHAT THOSE NEEDS ARE IN MINNEAPOLIS. LIKE CERTAIN TYPES OF HOUSING THAT WE'RE JUST NOT
GETTING THROUGH OTHER SOURCES. >> I THINK THAT IS -- THAT'S THE KIND OF QUESTION THAT WILL BE ANSWERED IN OUR STUDY BECAUSE THEY'RE GOING TO BE LOOKING AT THE LANDSCAPE AND DOING A FEASIBILITY. THAT'S MUCH MORE THE TYPE OF TEXTURE WE DID NOT -- THIS WAS REALLY MEANT TO
GIVE US A SOUND BASIS. WITH THAT SAID, I MEAN, THE NYU WORK DOES POINT OUT SOME OF THE PARTICULARS THAT A PUBLIC ENTITY CAN DO RATHER THAN A PRIVATE DEVELOPER. SO USING PUBLIC LAND
IS ONE OF THEM. CONVERTING ABANDONED PROPERTIES. THOSE ARE SOME OF THE THINGS THAT THERE'S A COMPARATIVE ADVANTAGE HAVING, AND SOME OF THE FINANCING TOOLS AS WELL. YOU WANT TO EMPHASIZE
THE COMPARATIVE ADVANTAGE OF YOUR PUBLIC DEVELOPER AS OPPOSED TO THE NON-PROFIT. >> THAT'S HELPFUL. THE SECOND QUESTION I HAD WAS KIND OF RELATED TO THE ONE WE HAD YESTERDAY ABOUT MUNICIPAL REVENUE. I THINK IT'S PRETTY
LINKED GIVEN THAT BECOMING A PUBLIC DEVELOPER WOULD BE A WAY TO INVEST IN PROPERTIES THEMSELVES AND SEE THE PRODUCT OF THAT IN THE PUBLIC REALM AS WELL. HOW DO YOU THINK THE SOCIAL HOUSING STUDY CAN
COMPLEMENT THE THINKING ON MUNICIPAL REVENUE? >> CHAIR CHAVEZ, COUNCIL MEMBER CASHMAN, THANK YOU. I WAS ACTUALLY STANDING THERE THINKING I SHOULD HAVE MENTIONED. IT'S ALWAYS NICE WHEN DIFFERENT PROJECTS CAN KIND OF INTERSECT LIKE THIS IN A WAY THAT WE'RE
ABLE TO DEMONSTRATE AND LEVERAGE. OBVIOUSLY IN THIS SCENARIO HAVING STOOD HERE 24 HOURS AGO. IT'S A MUCH CLOSER EXAMPLE. BUT AS FAR AS WHERE THEY'RE RELATED AND HOW THEY CAN INFORM EACH OTHER. I THINK THERE WAS AN EXAMPLE YESTERDAY. AND I'M GOING TO FORGET ALREADY
BECAUSE WE MOVED INTO THE TAX. THE CITY OF SEATTLE HAS A TAX THAT'S RELATED TO SOCIAL HOUSING. I THINK ON THE MUNICIPAL REVENUE SIDE, AS FAR AS WHERE THERE'S CHALLENGES AND BARRIERS TO GET SOME OF THESE
THINGS THROUGH STATE LEGISLATURES AND APPROVED WAS DEFINITELY ONE OF THE THINGS THAT STAND OUT AND IMPLEMENTED THROUGH THESE TYPES OF PRACTICES. THERE WAS A WAY THROUGH THIS WORK ON SOCIAL HOUSING. THE IDEA WOULD BE THAT
IT'S IDENTIFYING I THINK THE SIZE AND SCOPE. BUT ALSO THE COST OF THE PROGRAM. IT'S SOMETHING I KNOW SARA COVERED. YOU CAN'T IGNORE ANYTHING THAT WE DO THAT'S NEW THAT'S GOING TO HAVE A COST. SO UNDERSTANDING WHAT THAT COST LOOKS LIKE HAS A DIRECT CORRELATION TO US NEEDING
TO FIGURE OUT HOW WE'RE GOING TO FUND IT. WHETHER THAT'S THROUGH EXISTING FUNDS, WHETHER THAT'S GOING THROUGH A STATE REQUESTING NEW TAX TO PROVIDE FUNDING IN FULL OR FUNDING IN PART TO ANY KIND OF SOCIAL HOUSING PROGRAM. I ALSO THINK THAT BEING ABLE TO
DO THIS DEEPER DIVE WHERE WE'RE PUTTING TOGETHER A MORE COMPLETE ROAD MAP WOULD BE A CRITICAL PIECE OF ANY REQUEST FOR APPROVAL OF A NEW TAX BY SIMPLY SHOWING THIS IS SOMETHING THAT'S TOTALLY FLUSHED OUT. WE KNOW WHAT WE'RE LOOKING AT. WE KNOW WHAT OUR LANDSCAPE IS. WE KNOW
WHAT WE'RE GOING TO DO AS OPPOSED OF GOING BROADLY. IT WILL COST ROUGHLY THIS AMOUNT. THIS WILL GIVE US THE STRONGEST CASE TO MAKE BECAUSE AT THAT POINT WE WILL HAVE DONE ALL THE WORK TO HAVE A CLEAR IDEA FOR WHAT WE'RE DOING GOING FORWARD.
IF I DIDN'T ANSWER PARTS OF YOUR QUESTION, JUST REMIND ME. >> WELL IS THERE A REVENUE BENEFIT FOR DOING SOCIAL HOUSING JUST FROM A FINANCIAL SUSTAINABILITY PERSPECTIVE FOR THE CITY. >> I KNOW YOU HAVE SOME PIECES ON THIS. JUST FROM THE MUNICIPAL REVENUE SIDE OF WORK. LEVERAGING
ASSETS. SO THE CITY HAVING THE ABILITY TO REVITALIZE PROPERTIES AND BUILD OUT NEIGHBORHOODS THAT MIGHT NOT HAVE OTHERWISE RECEIVED THE SAME ATTENTION. AGAIN, IT'S A GENERATING CAPACITY WHERE ONCE SOMETHING IS THERE AND YOU HAVE A POPULATION
THERE, YOU'RE GOING TO GET OTHER STORES, SHOPS, ADDITIONAL PROPERTIES THAT CAN GO INTO THE SAME LOCATION. I THINK IT'S A WAY FOR THE CITY TO PLAY A ROLE IN PROVIDING A JUMP START FOR SOME AREAS. BUT I KNOW SARA HAS A PIECE AS WELL. >> YEAH.
>> COUNCIL MEMBER CASHMAN THROUGH THE CHAIR, THE EXAMPLE OF ATLANTA IS INTERESTING HERE BECAUSE THEY REALLY EMPHASIZE LEVERAGING CITY OWNED ASSETS AND LAND IN PARTICULAR. AGAIN, THEY
USE LAND AS A COLLATERAL AS EQUITY, I SHOULD SAY, FOR DEVELOPMENTS. FOR PUBLIC. NOT ONLY ARE THE PUBLIC DEVELOPMENTS ACTUALLY THEY'RE JUST IN PROCESS OF DOING THEIR FIRST ONE IN ATLANTA, BUT IT IS BEING BUILT ON PUBLIC LAND. AND AT THE SAME
TIME THE LAND IS BEING USED AS EQUITY. THERE'S SOME INTERESTING EXAMPLES IN THAT -- THERE'S SOME INTERESTING PIECES IN THAT EXAMPLE FOR HOW TO SORT OF MAXIMIZE CITY ASSETS. AS WELL, I
MEAN, THIS IS DEFINITELY A COST. THIS IS A HUGE EXPENSE. RIGHT. BUT THE STATE OF COLORADO AND SEATTLE BOTH HAD PROPOSITIONS
THAT TIED NEW SOURCES OF REVENUE TO SOCIAL HOUSING AND THEY BOTH PASSED. IT'S A WAY OF SORT OF TELLING PEOPLE WHERE THE MONEY IS. WHERE THE REVENUE THAT'S GENERATED IS GOING TO GO. AND GIVING THEM A COLORFUL EXAMPLE
OF HOW IT CAN BE PROACTIVE IN SOLVING PROBLEMS. THE SEATTLE EXAMPLE IS INTERESTING. THEY USED A TAX ON EXCESSIVE COMPENSATION. ANYTHING OVER $1 MILLION, THEY CHARGED THE --
IF A COMPANY WAS CHARGING, WAS GIVING A SALARY OF A MILLION DOLLARS OR OVER, THEY WOULD CHARGE $5 FOR EVERY DOLLAR OVER $1 MILLION. THAT'S THE FUNDS THAT THEY -- THAT'S THE TAX THAT THEY USED SPECIFICALLY FOR
SOCIAL HOUSING. THE STATE OF COLORADO ACTUALLY TARGETED A PIECE OF THEIR STATE INCOME TAX SPECIFICALLY FOR THIS. SO THERE ARE INTERESTING EXAMPLES. DAKOTA COUNTY ALSO HAS A SPECIFIC LEVY THAT FUNDS ITS SENIOR PUBLIC
HOUSING INITIATIVES. >> OKAY. THANK YOU. FINALLY, I JUST WANTED TO ASK ABOUT THE STATE LEGISLATURE TOOK SOME ACTION LAST YEAR. ARE YOU FAMILIAR WITH
THAT BILL? AND IF THAT'S AN OPPORTUNITY FOR US. >> I'VE BEEN SPEAKING WITH THE PEOPLE INVOLVED BUT I WASN'T AWARE THAT IT ACTUALLY PASSED. SO I WILL LOOK AT THAT MORE CLOSELY AND FOLLOW UP AND SEND INFORMATION. BUT THAT'S INTERESTING. >> YEAH. THANK YOU SO MUCH.
>> NEXT I'LL RECOGNIZE COUNCIL PRESIDENT PAYNE. >> THANK YOU, MADAM CHAIR. I REALLY WANT TO EXPRESS MY GRATITUDE FOR THIS PRESENTATION. WHEN WE PASSED THIS BUDGET AMENDMENT, I JUST ASSUMED THAT WE WOULD GO STRAIGHT TO RFP AND START REVIEWING CONTRACTS AND JUST GETTING THE WORK IN FROM
WHATEVER OUTSIDE PARTY. BUT THIS FOUNDATIONAL RESEARCH I THINK IT IS REALLY HELPFUL BECAUSE EVEN FOR MYSELF HAVING THIS TYPOLOGY HELPS REFRAME IT A LITTLE BIT FOR ME BECAUSE MY BIG WORRY AND CONCERN HAS BEEN THAT A LOT OF
OUR HOUSING POLICY IS CURRENTLY DESIGNED FOR A MARKET WITH ZERO PERCENT INTEREST. OUR AFFORDABLE HOUSING TRUST FUND WAS A GREAT INNOVATION WHEN THE PRIVATE MARKETS WERE LENDING AND HOW THEY CAME TOGETHER THROUGH A SMALLER INVESTMENT. UNDER THESE
CURRENT LENDING MARKETS, I DON'T KNOW THAT THE TRUST FUND IS AS SUCCESSFUL IN ACHIEVING OUR GOALS. THIS TYPOLOGY SO THAT WE CAN ENSURE THAT WHATEVER PATH WE TAKE IS IN LINE WITH OUR CURRENT CONTEXT AND REALITY. I WAS
LEANING MORE TOWARDS THE DAKOTA MODEL BECAUSE -- EVEN JUST THIS SMALL SAMPLE OF THE COMPLEXITY OF IT SHOWS THAT MAYBE IN OUR HOUSING AND MARKET IN MINNEAPOLIS SPECIFICALLY MAYBE THAT'S NOT THE BEST ALIGNMENT.
I'M REALLY LOOKING FORWARD TO THE DEEPER RESEARCH. -- SO THAT IT WOULD INFORM THAT RESEARCH SO THAT WE CAN ACTUALLY REALLY CATER IT MORE SPECIFICALLY TO MINNEAPOLIS. SO THANK YOU. >> THANK YOU.
>> THANK YOU. I'VE PUT MYSELF NEXT IN QUEUE. I WOULD LOVE AN OPPORTUNITY TO JUST KIND OF SIT DOWN WITH YOU OFFLINE TO DIG A LITTLE BIT DEEPER. I CERTAINLY HAVE A LOT OF QUESTIONS JUST
RANGING FROM HOW DO WE GET THE CAPITAL FUNDING TO DEVELOP SOMETHING AS A MUNICIPALITY AND WHAT OTHERS HAVE DONE. WHAT DOES BUILDING LOOK LIKE? WHAT DOES CONTRACTING LOOK LIKE? HOW
SUCCESSFUL HAS IT BEEN FOR THE TENANTS THAT END UP TAKING UP SOCIAL HOUSING. AND I'M ALSO INTERESTED IN THAT GROUP A CONVERSATION. I'M INTERESTED IN
SEEING WHAT IT WOULD MEAN FOR THE CITY OF MINNEAPOLIS TO HAVE MARKET RATE HOUSING AND HIGHER VALUE HOUSING IN THAT WAY TO LEVERAGE, TO CREATE MORE AFFORDABLE HOUSING. AND I HOPE
IN THE DEEPER RESEARCH STUDY THAT WE GET BACK IT CAN GO THROUGH NOT ONLY THAT CAPITAL STACK TO ACTUALLY GET THE DEVELOPMENT GOING, BUT YEAR AFTER YEAR, WHAT EXPENSES FOR
MANAGEMENT, MAINTENANCE, WHAT DID IT LOOK LIKE AND HOW WAS IT UTILIZED BY OTHER MUNICIPALITIES. GROUP A IS THE ONE THAT KIND OF MORE CLEANLY LINES UP WITH WHAT OUR STATE LEGISLATIVE DELEGATION HAS BEEN
WORKING ON. I BELIEVE IT WAS LED BY TWO MINNEAPOLIS DELEGATION REPRESENTATIVES ONE IN THE HOUSE AND ONE IN THE SENATE. BUT I CAN'T RECALL THE SENATE AUTHOR.
BUT THAT'S JUST KIND OF MY TWO CENTS ON THIS. I THINK THERE'S A LOT TO LEARN HERE AND I'M INTERESTED IN SEEING WHAT KIND OF MODEL WOULD WORK BEST FOR THE CITY OF MINNEAPOLIS. AND ALSO
UNDERSTANDING MAYBE THERE'S A WAY FOR US TO LOOK AT PURSUING MULTI-FAMILY HOUSING THAT ALSO HAS COMMERCIAL ON THE BOTTOM AND WHAT IT MEANS TO LEASE THAT OUT AND CREATE SMALL BUSINESS OPPORTUNITY IN THE FUTURE AS
WELL. YEAH. ARE THERE ANY OTHER MEMBERS THAT WOULD LIKE TO GET INTO QUEUE? OKAY. GREAT. WELL THANK YOU FOR THE PRESENTATION. SEEING NO FURTHER DISCUSSION, I WILL ASK THE CLERK TO RECEIVE
AND FILE IT. WITHOUT OBJECTION, WE ARE -- >> I HAVE A POINT I WANT TO MAKE. THANK YOU, CHAIR CHOWDHURY. >> COUNCIL MEMBER CHAVEZ, IS THIS REGARDING THIS ITEM? >> I HAVE A QUESTION FOR CITY
ATTORNEYS ON THE ITEM WE JUST DISCUSSED. >> OKAY. I WILL RECOGNIZE YOU, COUNCIL MEMBER CHAVEZ. >> THANK YOU. I'D JUST LIKE A MEMO ON ITEM ONE TO THE CITY ATTORNEY'S OFFICE. SPECIFICALLY THE ITEM WE TALKED ABOUT. THERE
WAS A SURVEY CONDUCTED BY GUIDE HOUSE WHICH COMPLETED AN ANALYSIS IN 12 PEER U.S. CITIES. HOW WAS THAT MADE PUBLIC AND HOW DO WE RECEIVE A COUNCIL ACTION ON THAT. AND HOW THAT IS DIFFERENT FROM THE OTHER COMPENSATION STUDY. SO MAYBE
THAT'S A MEMO. BUT THAT WAS MADE PUBLIC IN NOVEMBER 2023. IT WAS A COMPENSATION ANALYSIS CONDUCTED BY GUIDE HOUSE. AND IF WE'RE USING STATUTES 13.35, I JUST WANT TO KNOW HOW THAT'S
DIFFERENT. AND MAYBE THAT COULD JUST BE A FOLLOW UP OVER MEMO. >> COUNCIL MEMBER CHAVEZ, WE CAN FOLLOW UP WITH A MEMO. I WOULD NEED TO REVIEW THAT STUDY AND THAT ITEM. >> GREAT. WITHOUT OBJECTION,
OKAY, WE ARE ADJOURNED.