07-14-2015 Work Session HOPKINS CITY COUNCIL
WORK SESSION PROCEEDINGS
JULY 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, July 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, Equipment &
Maintenance Superintendent Autio, Finance Director Harkess, City Engineer Stanley and Parks
& Streets Superintendent Strachota.
2016-2020 EQUIPMENT REPLACEMENT PLAN (ERP)
Finance Director Harkess gave a summary of the changes to the ERP 2016-2020 plan, reviewed
the ERP fund by department, year and funding source. Ms. Harkess explained the proposed
equipment replacement needs and summarized the changes from the 2015 plan. Ms. Harkess
explained that staff continues to explore ways to finance items.
Equipment & Maintenance Superintendent Autio explained that staff has been reevaluating city
vehicles and equipment. Some equipment is exceeding its life expectancy and it is increasingly
difficult to acquire parts.
Mayor Maxwell asked about the video camera equipment for the Arts Center. Ms. Harkess
explained the need for additional cameras and that the recorder is at capacity.
Ms. Harkess gave an overview of the changes to the Fire Department ERP. The Fire Department
secured a grant to purchase breathing apparatus originally scheduled in the 2016 ERP. Ms.
Harkess explained that the current Police and Fire Department radios would not be supported by
Hennepin County in 2017 and need to be replaced prior to that date to maintain communications.
Mayor Maxwell asked about maintenance cost of the communication radios. City Manager
Momson commented that Chief Specken confirmed that the equipment is maintained by
Hennepin County. Police Chief Reynolds and Fire Chief Specken will provide further
explanation to the Council regarding the communication upgrades. Staff is seeking other
revenue sources to fund the purchase of the large ticket items.
Council Member Cummings asked if any value is recouped by the sale of equipment. Ms.
Harkess explained that items with any value are sent to the Hennepin County Auction and the
revenue goes back into the fund.
Ms. Harkess gave an explanation of the Technology Department and Public Works equipment
needs. Ms. Harkess explained that some equipment was eliminated from the ERP after further
review and explained funding, bond fund calculations and regulations. The challenge will be
funding the equipment needs in the ERP. Staff continues to work on balancing the fund and
evaluating equipment needs. Ehlers & Associates will be updating the Financial Management
Plan(FMP) to ensure financial stability. Ms. Harkess will update the Council once staff receives
the report from Ehlers.
HOPKINS CITY COUNCIL
WORK SESSION PROCEEDINGS
JULY 14, 2015
Items in the 2016 ERP will cause the fund to head into a negative position, therefore equipment
certificates are proposed for items purchased in 2016-2017. There was discussion of what can be
paid by the equipment certificate. Ms. Harkess will provide this information to the Council.
Council will continue to review the ERP and will contact staff with any questions. The ERP is
scheduled on the City Council agenda for August 18, 2015.
2016-2020 CAPITAL IMPROVEMENT PLAN (C.I.P.)
Finance Director Harkess reviewed the 2016-2020 CIP, summary of changes, cash flow by fund
and the 2016 through 2020 proposed projects. Ms. Harkess explained that building replacement
projects were pushed together in hopes of better pricing. Equipment & Maintenance
Superintendent Autio will contact Raspberry Ridge, the adjoining building to the Hopkins
Activity Center, regarding their roof replacement schedule. Ms. Harkess explained that items are
continually reevaluated and rescheduled if appropriate.
Ms. Harkess reviewed the Park Dedication Fund. Input from the public is still being incorporated
into the Park Reinvestment Plan. Staff will present the plan to the Council in September. Council
Member Cummings asked why the line item for the Park Dedication Fee is zero. Ms. Harkess
explained that the fee is negotiable and determined by development projects therefore it is
difficult to calculate a budget number. Ms. Harkess will update the Council on the history of the
Park Dedication Fund.
Ms. Harkess reviewed the PIR(Permanent Improvement Revolving) Fund, changes and list of
street improvement projects in upcoming years. City Engineer Stanley discussed with Council
the scheduled projects, costs and funding.
Ms. Harkess discussed the Pavilion Fund. The significant change in the fund is due to the need
for ice arenas to replace refrigeration systems. Parks & Streets Superintendent Strachota
explained the repair needs to the ice arena floor. Council suggested that staff contact the City of
Minnetonka regarding their ice arena replacement project. Council discussed how to fund the
large project and the need to get input from the Pavilion users.
Ms. Harkess discussed that the challenges to the CIP are a result of aging buildings and needed
upgrades. The CIP is a 5-year plan and the projects are continually reevaluated and adjusted. Ms.
Harkess explained that the Financial Management Plan is reevaluated each year and that staff
will continue to look at refining the projects.
Ms. Harkess reviewed the projects and related bond issues for the Municipal State Aid, PIR
Fund, Water Fund, Sewer Fund and Storm Sewer Fund. There was discussion regarding the
water rate study. Ehlers &Associates has just started the process of a rate study and City
Engineer Stanley will review the rate structure plan and update the Council.
Mr. Stanley discussed the CIP street construction projects 2016-2020 and commented that staff is
evaluating the streets and infrastructure policy.
HOPKINS CITY COUNCIL
WORK SESSION PROCEEDINGS
JULY 14, 2015
Staff will continue to evaluate the challenges to the CIP. Council will review the 5-year CIP and
the building components report and will contact staff with any questions. The CIP is scheduled
on the City Council agenda for August 18, 2015.
UPDATES
•Discussion of a resident concern of flooding on Westbrooke Way following the last rain storm.
Parks & Streets Superintendent Strachota explained that the flooding is not a storm sewer issue
and City Engineer Stanley explained that the Watershed District is reevaluating elevation
standards and that risk of flooding is minimal as Valley Park acts as a flood plain.
•Mr. Stanley updated the Council on the Mainstreet reconstruction project. The Clocktower
Plaza project will be timed with phase 2 of Mainstreet construction.
•Ms. Harkess updated the Council on the realignment of staff positions in the Finance
Department. The new finance software is scheduled to be online in October and it will include
an option for electronic bill pay.
•Council Member Halverson discussed a resident concern of daytime drug activity in the
Renaissance Court area.
•Council Member Kuznia will keep the Council updated on staff completion of Public
Infrastructure Certification.
•Council Member Gadd shared positive resident comments on the 4th of July block party and
gave an update on Beyond the Yellow Ribbon/Folds of Honor benefit concert on Thursday,
September 3, 2015 at Hopkins Center for the Arts. Council Member Gadd attended the Read
Indeed Read-a-thon at Barnes and Noble.
•There was Council discussion regarding Hopkins Raspberry Festival sponsors.
•City Manager Mornson provided the Council with a draft agreement between the Hopkins
Historical Society, Masonic Lodge and City of Hopkins. Mr. Mornson updated the Council on
the Historical Society Mission and Vision Statement, building lease, grant applications,
historical preservation status, programming and fundraising efforts.
•Mr. Mornson commented that staff would provide Council with feedback and a recap of the
Artery Experiment event.
•A Council Work Session regarding the Johnson Building will be following the regular Council
meeting on Tuesday, July 21, 2015.
HOPKINS CITY COUNCIL
WORK SESSION PROCEEDINGS
JULY 14, 2015
ADJOURNMENT
There being no further business to come before the City Council and upon a motion by Kuznia,
second by Cummings, the meeting was unanimously adjourned at 8:55 p.m.
Respectfully Submitted,
Debbie Vold
CO CIL MEMPERS
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Eugene J. xwell, Mayor Amy Domeier, City Clerk