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IV.3. Minutes of the April 14, 2015 Work Session Proceedings HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS APRIL 14, 2015 CALL TO ORDER Pursuant to due call and notice thereof a regular work session of the Hopkins City Council was held on Tuesday, April 14, 2015 at 6:31 p.m. in the Raspberry Room at City Hall, 1010 First Street South, Hopkins. Mayor Maxwell called the meeting to order with Council Member Cummings, Gadd, Halverson and Kuznia attending. Staff present included City Manager Mornson, Community Development Coordinator Beekman, Director of Planning and Development Elverum, Assistant City Manager Genellie, Finance Director Harkess, Public Works Director Stadler and City Engineer Stanley. 2015 ASSESSOR’S UPDATE Representatives from Hennepin County included Michael Smerdon, Residential Appraiser, Ashlei Munneke, 2016 Residential Appraiser and Janene Hebert, Commercial Appraiser. Mr. Smerdon reviewed the overall results of the 2015 residential market values of housing in Hopkins. The overall value change for Hopkins is +3.9%. Mr. Smerdon commented that single-family homes decreased in value while condos, townhomes and duplexes went up in value. Mayor Maxwell asked about increase in value of multifamily homes over single-family homes, foreclosures, interest rates and impacts of street reconstruction. Mr. Smerdon commented that the values of multifamily homes have increased to where they should be. Mr. Smerdon also stated that the number of foreclosures has dropped. Staff will investigate the number of foreclosures and housing permits in Hopkins and update the Council. Mr. Smerdon commented that an increase in interest rates typically would slow down home sales and that new streets do add to the appeal of neighborhoods. Council Member Cummings asked about the average time of home sales and the issue of radon. Mr. Smerdon commented that the average is 45 days for home sales and the radon issue has not been addressed with him. City Manager Mornson asked about Hopkins comparison to other cities. Mr. Smerdon commented that the City of Medicine Lake also experienced a drop in single-family home value. Ms. Hebert reviewed the overall results of the 2015 commercial market values in Hopkins. The overall value change is +3.4%. The apartment market had the largest increase of 13.5%. Ms. Hebert explained how Hopkins compared to other cities. City Manager Mornson asked if new apartment construction explained the large increase in value. Ms. Hebert commented that even the older apartment buildings increased in value. HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS APRIL 14, 2015 Council Member Cummings asked about the impact of the future SW LRT Operations and Maintenance Facility (OMF) on surrounding properties. Ms. Hebert commented that staff could investigate the impact and developments surrounding existing OMF facilities. The Open Book meeting is scheduled for Tuesday, May 5, 5-7 pm at Hopkins City Hall. Public information regarding the meeting is publicized in local newspapers and on property valuation statements. BLAKE ROAD CORRIDOR STUDY In addition to city staff, a representative present for the item included Mr. Tony Heppelmann, WSB. City Engineer Stanley gave an update on the Blake Road Corridor Study. A public Open House is scheduled for Monday, April 20. Mr. Heppelmann presented an overview of the Blake Road Corridor Study including project area, the purpose to identify a plan for transportation improvements in the Blake Road Corridor, study goals and evaluation criteria. Mr. Heppelmann reviewed the proposed recommendations and alternatives: Interlachen - Excelsior Blvd: The preferred alternative is a four-lane divided roadway due to better safety, adequate capacity, landscaped medium, pedestrian refuge with a proposed sidewalk and southbound right turn lane into Blake School. The 10.8' lanes would feel more restrictive and slow down traffic. Mr. Heppelmann gave an overview of traffic analysis, which determined there was a need for the four-lane alternative to accommodate future development. Mr. Heppelmann explained that the streetscaping options would give Blake Road a more urban and pedestrian friendly feel. Pedestrian and Bicycle Trail: The preferred alternative is for a multi-use trail. Staff evaluated feedback from residents in the corridor and determined that most users are recreational bikers not commuters. A multi-use trail would separate bicyclists and vehicles and reduce the need to cross the road. Council Member Cummings asked about the separation of pedestrians and bicycles. Mr. Heppelmann explained the difference between cycle-tracks and multi-use trails. Pedestrian and Bicycle crossings: Crossing Blake Road is a concern of local residents. Staff is proposing marked crossings at all signalized intersections and recommending rapid flash beacon crossing at uncontrolled locations. The Cedar Lake Regional trail is proposed to have a grade separation. City Engineer Stanley explained that the rapid flash beacon has been effective in Minnetonka. 2nd and Lake Streets intersections: nd The proposal is for a traffic signal at 2 Street. Mr. Heppelmann explained that roundabouts were removed from the plan because they resulted in greater property impacts and traffic back ups. Mayor Maxwell commented that a traffic signal at Lake HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS APRIL 14, 2015 Street might need to be considered. Mr. Heppelmann explained that significant development and increased traffic volumes could warrant a need for a signal at Lake Street. Mr. Stanley commented that staff could add a future signal at Lake Street into the plans. Oxford Street: The study recommends a closed medium. This would improve traffic operation, take up less right of way, minimizes cut-through traffic and allow for landscaping space. Highway 7: The study is recommending dual left turn lanes to improve traffic operations. MnDOT is not in favor of a pedestrian bridge over Highway 7 until further study but the plan is proposing enhanced crosswalks. Next steps in the process include an Open House on April 20, identifying funding sources, developing an implementation plan with final recommendations scheduled to be th presented to the Hopkins City Council on May 19. Mayor Maxwell asked about the cost of the plan. Mr. Heppelmann commented that construction costs are approximately $10.5 million with Hopkins share being $8 million. Funding may come from Federal grant programs, community works dollars and the Met Council. Mr. Stanley explained that the study is a tool to secure grant funding and that staff will be investigating funding options. Council Member Cummings asked about the grant programs. Mr. Heppelmann explained the grant process and timeframe. Council Member Halverson asked about utility replacement. Mr. Stanley explained that utility work would be completed at the same time as the road reconstruction. Council consensus was that they were comfortable with the schedule and plan design. COMMUNITY SOLAR GARDENS DISCUSSION In addition to city staff, representatives present for the item included Mr. Doug Lucas, Solar City Commercial Energy Advisor, Mr. David Pressman, Solar City, and Mr. Joe Tierney, Director of Project Development for Sunrise Energy Ventures. Public Works Director Stadler gave an overview of the Xcel Energy’s need to meet goals of renewable resources and the opportunity for subscribers to purchase power at a lesser- fixed rate, in turn saving the city money. The standard agreement still needs to be reviewed but staff wanted to present the information to the Council to get feedback before pursuing further. Solar City and Sunrise representatives gave an overview of the company background and completed projects including their experience with Xcel Energy. Sunrise has a proposed solar garden project in Monticello, MN. Solar City representatives explained the savings analysis, pricing terms and rates. Over a 20-year period, the City of Hopkins could save $2 million in energy costs. HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS APRIL 14, 2015 Council Member Cummings asked about the guaranteed price for the 20-year term of the contract and what would happen if Solar City goes out of business. Solar City representatives explained the benefit of the long-term rate. The representatives explained that Solar City is the largest solar company in country with developed and proven technology. The company offers a performance guarantee and stands behind their product. Mr. Stadler explained there would be no upfront costs to the City. Solar City representatives discussed the timeline for completion of the solar garden project with projections to be online by September or October of 2016. There was discussion regarding product maintenance. Solar City explained that the company is making a big investment and has proven long-term operations and maintenance of their facilities. Council Member Halverson asked about snow affecting the solar panels. The representatives explained engineering of the product and that they have projects already operating in cold climate states. Mayor Maxwell asked about the size of the project and contract termination. The Solar City representatives explained that they have three projects proposed in Minnesota and contract termination terms and penalties. City Manager Mornson asked about the billing system and who would be the anchor tenants. The Solar City representatives explained that the Xcel Energy billing would have a line item for Solar City and that they are currently talking to cities, school districts and private companies. Mayor Maxwell asked about the contract. Finance Director Harkess explained that it is a standard contract but staff has not had the City Attorney review it until they get direction from Council. Council consensus was that the plan sounds beneficial to the City but they would like to meet again to discuss the concept further. UPDATES  Director of Planning and Development Elverum gave an update on National Bike Month in May. A Proclamation will be on the City Council Agenda. A “Ride With the Council” event is tentatively scheduled for Wednesday, May 13, 5:30-7:30 pm. Staff will keep the Council updated on the bike event.  Ms. Elverum updated the Council on the SW LRT Station Art Committee members.  Ms. Elverum commented that staff has been asked to speak at an upcoming CIC meeting regarding the Blake Road project. Staff also met with designers of the SW LRT Operations and Maintenance Facility. HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS APRIL 14, 2015  Ms. Elverum updated the Council on the ARTery experiment day, grant funding, how the funding will be utilized and possible events.  Ms. Elverum gave an update on the Doran purchase of the Johnson building. Staff will keep the Council updated.  Council Member Kuznia commented on future Highway 169 road construction. Mr. Mornson commented that staff met with MnDOT and will keep the Council updated.  A media event is scheduled for Thursday, April 23, 11 am at Cottageville Park.  City Manager Mornson commented that staff has applied for two awards for Cottageville Park and Green Step City.  Hopkins Center for the Arts Annual Report and Street Seats update will be on the next City Council Agenda.  Mr. Mornson commented that Mainstreet would be featured in a community profile news article. ADJOURNMENT There being no further business to come before the City Council and upon a motion by Cummings, second by Gadd, the meeting was unanimously adjourned at 9:29 p.m. Respectfully Submitted, Debbie Vold COUNCIL MEMBERS ___________________________________ ___________________________________ ___________________________________ ___________________________________ ATTEST: ______________________________ ___________________________________ Eugene J. Maxwell, Mayor Amy Domeier, City Clerk