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Minutes of the Work Session on September 9, 2014MINUTES OF THE CITY COUNCIL WORK SESSION Tuesday, September 9, 2014 City Hall Raspberry Room— 6:30 p.m. The meeting was started at 6:32 p.m. Present were Mayor Maxwell and Council members Molly Cummings, Jason Gadd, Kristi Halverson and Cheryl Youakim, City Manager Mike Mornson, Community Development Coordinator Meg Beekman, Director of Economic Development and Planning Kersten Elverum, Finance Director Christine Harkess, City Engineer Nate Stanley, Public Works Director Steve Stadler, WSB & Associates representative Tony Heppelmann and Community Development Intern Addison Vang. New business: Blake Road Corridor Study Mr. Stanley gave an overview of the Blake Road Corridor Study, a transportation, pedestrian, and bicycle trail plan for the Blake Road corridor. The plan is in conjunction with the Cities of St. Louis Park and Edina and Hennepin County. The technical advisory committee includes participation from Three Rivers Park District, Minnehaha Creek Watershed District, MnDOT and SW LRT Project Office. Mr. Heppelmann gave an overview of the study background and project limits. The purpose of the study is to identify and plan for transportation improvements in the Blake Road Corridor and to support construction of the SWLRT. Mr. Heppelmann gave an overview of the project schedule and public involvement process. At the first open house public comments included traffic and safety concerns, need for pedestrian crossing, bicycle facilities, trail crossing safety concerns and access to the SWLRT station. Mr. Heppelmann summarized the alternative plans for the corridor: • Interlachen to Excelsior Blvd: proposal for a 6 ft sidewalk on the west side of Blake Road. The Edina City Council is comfortable with the sidewalk proposal. • Excelsior Blvd to 36th Street: Mr. Heppelmann explained the roadway, pedestrian and bicycle alternatives. The committee concluded that the roadway needs two through lanes in each direction. Mr. Heppelmann explained the pedestrian and bicycle alternatives with the multipurpose trail providing a wider lane that would accommodate both cyclers and pedestrians. • Other alternatives: Mr. Heppelmann discussed options for a median break at Hill Street, signalized crossings Cedar Lake Trail crossing, signalized pedestrian crossings, a Minnehaha Creek trail crossing under the bridge and Roundabouts. Mr. Heppelmann discussed the benefits of the Roundabout include narrowing the road section, slowing traffic and provides additional room for landscaping. • TH7 Intersection: Mr. Heppelmann discussed that the improvements to TH7 intersection will help eliminate neighborhood cut -through traffic but widening of the intersection creates pedestrian crossing difficulty. The St. Louis Park City Council did not like the idea of widening the intersection or interchange options. The St Louis Park City Council discussed the possibility of a pedestrian bridge at TH7. Mr. Heppelmann discussed the next steps in the process including an October Open House, identifying potential funding sources, selecting a preferred alternative and developing an implementation plan. WSB would provide an update to the City Council in November or December. There was much Council discussion regarding Hiawatha Ave alternatives, access to area restaurants and pedestrian crossing at Roundabouts. Mr. Heppelmann explained that pedestrians would need to walk to Cambridge Street crossing to access restaurants. Studies have shown that mid -block crossings increase crashes. Mr. Heppelmann discussed that the current traffic volumes in the corridor is 15,000 vehicles per day with a future projection of 17,000-18,000 vehicles per day. Mr. Heppelmann explained that Roundabouts are easier for pedestrians who are crossing one direction of traffic at a time and traffic is traveling at a lower speed. However, Roundabouts are more difficult for visually impaired pedestrians due to lack of crossing signals. Mr. Heppelmann explained that the Roundabout lanes would accommodate traffic but is not a direct benefit for pedestrians and bike traffic. Bicyclists would not have a direct route along Blake Road with Roundabouts. There was discussion regarding a pedestrian signal at Lake Street. Mr. Heppelmann explained that the pedestrian volumes do not dictate a signal at Lake Street. Council also discussed a concern about the backup traffic at TH7. Mr. Heppelmann explained that the traffic analysis shows backup to Cambridge Street and that added left turn lanes at TH7 would help to reduce back up. Council discussed a right -in, right -out traffic access at Blake Road and Excelsior Blvd. There is a need to continue to discuss this option and get public input. There was Council discussion regarding the cost estimates of the project. Mr. Heppelmann commented that current estimates are $10-15 million with all the improvements but still looking at options to reduce the cost. There was discussion regarding funding for the project. Once the plan is finalized then the cities can look at options to apply for grants and other funding sources. Staff discussed that it would be better to combine funding efforts by the cities and Hennepin County. Council discussed the possibility of a trail under Minnehaha Creek. Staff commented that the bridge in good condition and would need to continue discussions with the Minnehaha Watershed District since the bridge would need to be raised for trail clearance. Council also discussed the impact of Cargill traffic at the 2nd Street Roundabout. Mr. Heppelmann commented that there might be some back up depending on time of day and train traffic. There was also discussion regarding the SWLRT station location and possible effects of traffic volume at 2nd Street. There was discussion regarding the project schedule. The target date for completion of the Blake Road corridor project would be prior to the opening of SWLRT but still need to identify project funding. The road project would probably be a 2 -year construction project. Council discussed the utility infrastructure along Blake Road. Mr. Stanley stated that infrastructure would need to be addressed and evaluated and that staff will be having discussions with the utility companies. Staff will continue to update the Council on the project and upcoming public information meetings. PACE Program Introduction Ms. Beekman gave an overview of the Property Assessed Clean Energy (PACE) program and introduced Mr. Addison Vang, Community Development intern. Mr. Vang gave an overview of PACE, a financing option supporting clean energy efficient improvements for businesses, non -profits, religious institutions and residential multi -family properties. Mr. Vang explained that the program is a loan to finance energy improvements and is paid back as a special assessment to the property. The PACE program would be administered by the St. Paul Port Authority, which eliminates the need for cities to use resources to secure revenues by selling, bonds. The city would need to sign a Joint Powers Agreement allowing the St. Paul Port Authority to manage the program. The Port Authority includes a 0.5% administration fee into the interest rate but the fee is included within the loan. Mr. Vang explained the application process, special assessment public hearing and benefits of the program including immediate cash flow for property owners from reduced utility cost, increase in property values, promoting construction jobs, incentives to businesses, no risk to the city, fees are included in the loan and the city can leave the program at the annual renewal with no penalty. Ms. Beekman explained that 12 cities have joined the program so far and 11 more cities are working towards joining the program. There was Council discussion regarding the amount that property owners can apply for. Mr. Vang explained that the loan amount is 20% of the property value and there is no limit in number of properties that can apply. The length of the loan is 10 years. There was discussion regarding the application paperwork, public hearing, assessment and job bidding process. Mr. Vang and Ms. Beekman explained that there is a 5 -page application, that the city would hold a public hearing for the special assessment but the assessment goes through the County and is then passed onto the St Paul Port Authority. Ms. Beekman discussed getting information out to the public through Hopkins Business and Civic Association to the business community and utilizing other city publications to inform potential users of the program. There was Council discussion regarding any potential risk to the city. Ms. Beekman explained that the only way the loan can be paid back is through special assessment that remains with the property. There is virtually no risk to the City and cities are are not qualified to be part of program. Properties are required to go through the city building permit process. Council consensus was to direct staff to pursue a Joint Powers Agreement with the St Paul Port Authority to implement the PACE program in Hopkins. Staff will have the City Attorney review the contract and have the PACE program part of the Council agenda at a future meeting. Ms. Beekman updated the Council on Block 64 building demolition. The 501 Mainstreet site has been graded and will be seeded. The soil testing has been sent to the Pollution Control Agency (PCA) and the city is waiting on results in order to have the open leak file closed. At the 525 Mainstreet site an additional slab and hydraulic cylinders were discovered. Soil samples were taken to determine any additional clean-up needs. If clean up at site is required, staff will apply for clean-up grants. The 525 Mainstreet site will then be graded and seeded. Ms. Beekman explained that the curb cuts would be removed as part of the Mainstreet Improvement Project. Mr. Stadler updated the Council on the duplex removal on Blake Road. Staff explained that asbestos was discovered in some of the sheetrock and testing needs to be finalized prior to demolition. Special Revenue and Enterprise Fund Budgets Ms. Harkess gave an overview of the 2015 Special Revenue & Enterprise Fund Budgets. • The Chemical Assessment Fund budget has remained at $45,000 since the 1980's. Past budget shortfalls have been covered by grant revenues but are not guaranteed. There is a possible state increase for the operations budget. • Ms. Harkess reviewed the Economic Development Fund that is used for developer assistance. The Financial Management Plan (IMP) eliminated the Arts Center transfer of $61,000 from this fund. • Ms. Harkess reviewed the Real Estate Purchases and Sales fund. Right of way fees are the only source of income and the current balance is $124,236. Ms. Harkess discussed with Council the possibility of rolling the fund into the Economic Development Fund. Staff has investigated this possibility and the fund can be eliminated because it is not set up as part of the charter. The fund could then be used to write down the Arts Center loan or pay down the deficit to decrease the levy. Council consensus was to have staff continue to investigate eliminating this fund and redirecting right of way permit funds to the General Fund of the Engineering Department. • Ms. Harkess discussed the Parking Fund. There is a proposed rate increase for parking permit fees. The additional revenue would be approximately $2,000-3,000. Ms. Harkess and Mr. Stadler addressed the Council regarding needed repairs and LED lighting upgrades in the parking ramp in the amount of $250,000. Ms. Harkess is proposing $125,000-$130,000 from the Parking fund and $150,000 from the PIR to subsidize needed ramp maintenance. Mr. Stadler discussed the possibility of grants available for the lighting upgrade and timing of the project. Mr. Stadler commented that ramp maintenance is needed to continue to improve and increase the life of the structure. Council will continue to review the Parking Fund budget. • Ms. Harkess reviewed the Communications budget and expenditures. • Ms. Harkess discussed the Depot Coffee House fund. The coffee business is currently supporting the youth project. The Youth Project receives support from the general fund, Minnetonka and Three Rivers Park District but grant funding decreased. The partnerships have made the program successful. Ms. Harkess updated the Council on the hiring process for new Youth Coordinator. • Ms. Harkess discussed the Arts Center budget that has been prepared according to FMP. Ms. Harkess explained that the Arts Center deficit and capital needs will be covered by the IMP over a period of 10 years and that the levy will be re-evaluated each year. Arts Center staff is working at securing rental revenues, additional funding and grants to work on closing the deficit gap. Ms. Harkess explained the capital need expenditures. There was Council discussion about possible sponsorship for new seats. Staff will continue to investigate this possibility. • Ms. Harkess gave an overview of the Tax Increment Fund balances and the Water Fund. Staff is proposing a water rate increase from $2.10 to $2.18. Mr. Stadler commented that antenna leases on the water towers are $147,000. • Ms. Harkess reviewed the Sanitary Sewer Fund and Storm Sewer Fund. Staff is proposing increasing the sanitary sewer rate from $4.10 to $4.30. Met Council fees have increased and Mr. Stadler discussed the station improvement project and storm sewer pipes replacement. Ms. Harkess discussed the refunding of 2007 Capital Improvement bonds and B Bonds that will provide significant savings. Ms. Harkess will be presenting this at an upcoming City Council meeting. • Ms. Harkess reviewed the Refuse Fund. Staff is proposing a rate increase for recycling from $4.25 to $4.50 and no increase in disposal costs. There was Council discussion regarding organic recycling. Staff is working on the next steps for an elective organic recycling program. • Ms. Harkess reviewed the Pavilion Fund, programs and capital improvement item. There was discussion regarding the need to replace the refrigeration system by the year 2020. Ms. Harkess discussed with Council that the Special Revenue and Enterprise Fund Budgets would be part of the resolution to approve the budget at the December City Council meeting. Other: • Council discussion regarding the Kenilworth corridor resident's lawsuit targeting the SWLRT project and changes to the SWLRT contingency funding. Staff will put together recommendations and will update the Council. • ResourceWest Director, Judy Elling, has resigned her position. • Hopkins Business and Civic Association meeting on Thursday, September 11 at 12 pm. • KiddieWampus ribbon cutting event on Saturday, September 13. • Council Member Gadd gave an update on a Beyond the Yellow Ribbon donation. • Council Member Cummings discussed resident concerns regarding the obnoxious weeds letter, public comments being aired & in the City Council minutes, Park Valley street improvements, Park Valley tree replacement and need for playground maintenance. • Mr. Mornson will be attending a conference and will not be at the September 16 City Council meeting. Mr. Genellie will be in attendance at the next City Council meeting. • Discussion of an upcoming Council tour of Gallery Flats apartments. • Council Member Youakim will not be at the October 7 City Council meeting. • Mr. Mornson updated the Council on Luther and Walser building expansions. With no further business to discuss there was a motion by Council member Halverson and a second by Council member Youakim to adjourn the meeting at 9:29 p.m. Respectfully Submitted, Debbie Vold CITY COUNCIL ATTEST: Eugene J. Maxwell, Mayor