09-09-2014 WSMINUTES 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 pt•oject 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 witb the sidewalk proposal.
• Excelsior Blvd to 36th Street: Mr. Heppeimann explained the roadway, pedestrian and
bicycle alternatives. The committee conciuded 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 traffc 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 vehicies 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. Heppeimann 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 appiy 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
compames.
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 S�. Paul Port Au�hority, 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 properry 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 tbe �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 Ci�y
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 (FMP) 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 Councii 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
lighring 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 FMP 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. T'here 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 wili 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
CI'�'Y COIJNCIL
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ATTEST:
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Eugene J. { axwe , Mayor