01-12-2016 Work Session HOPKINS CITY COUNCIL
WORK SESSION PROCEEDINGS
JANUARY 12, 2016
CALL TO ORDER
Pursuant to due call and notice thereof a regular work session of the Hopkins City Council was
held on Tuesday, January 12, 2016 at 6:32 p.m. in the Raspberry Room at City Hall, 1010 First
Street South, Hopkins.
Mayor Cummings called the meeting to order with Council Member Campbell, Gadd, Halverson
and Kuznia attending. Staff present included City Manager Morrison, Hopkins Center for the
Arts Co-Director Anderson, City Clerk Domeier, Assistant City Manager Genellie, Hopkins
Center for the Arts Co-Director Hanna-Bibus, Finance Director Harkess and Public Works
Director Stadler.
UTILITY RATE STUDY
In addition to City staff, a representative present for the item was Ms. Stacie Kvilvang, Ehlers,
Inc. Ms. Kvilvang gave an overview of the water, sanitary sewer and storm water utility rate
analysis. Ms. Kvilvang explained that the objective of the Enterprise Fund is to have adequate
revenue and cash to fund bond payments and capital equipment. Ehlers Inc. evaluated the water
and sewer rates. Ehlers Inc. determined that the water usage assumptions were not aligned with
actual usage, a flat rate is necessary to provide continued funding and utility improvements
continue to put pressure on cash balances. Ehlers Inc. determined that the sewer rates have not
kept up with financial needs of the fund and utility improvements put pressure on the cash
balance. Ms. Kvilvang discussed a proposed tiered rate plan where water rates would be based
upon usage and one user would not be subsidizing another user type. Ms. Kvilvang gave an
overview of the upcoming water and sewer capital improvements and the impacts to the fund.
The proposed 2016-2020 utility bills for the average Hopkins residential and commercial
customers were reviewed. Ms. Kvilvang discussed water charges in comparison to surrounding
communities. Hopkins proposed charges were the lowest based upon volume.
Ms. Kvilvang recommended that the City needs to increase utility rates to reflect actual usage,
adopt a tier system to align usage with fees and to fund needed capital improvements. Ms.
Kvilvang discussed the sewer rate recommendations. Ehlers Inc.is recommending the lower
sewer rate due to the impact on large commercial users. Ms. Kvilvang explained that the rate
increases would be higher in the first year then level out.
There was Council discussion regarding past utility rate studies, the tiered plan and public
education regarding utility rates. Finance Director Harkess explained that the last study was
done internally and that public information would be made available to Hopkins customers along
with examples of actual water bills of the Council Members. Public Works Director Stadler
explained that the DNR recommends the tiered system to encourage water conservation. Ms.
Harkess explained that the rate increase could go into effect in June with an annual increase in
January thereafter. Ms. Kvilvang explained that the rate increases would be reevaluated every
couple of years.
Council commented on the good explanation and reasons why the increase in utility rates is
necessary. Council consensus was in favor of the water rate increase and would like Ehlers Inc.
to look at a mid-range increase in sewer rates and update the Council.
HOPKINS CITY COUNCIL
WORK S; SSION PROCEEDINGS
JANUARY 12, 2016
Council Member Kuznia asked about the Storm Water Fund. Ms. Hark:ss explained that the
fund remains healthy and no increase is needed at this time.
City Manager Momson explained that the ordinance would require two I eadings in April or May
to implement rates in June. Staff will begin the public information proc:ss.
HOPKINS CENTER FOR THE ARTS UPDATE
Hopkins Center for the Arts (HCA) Co-Directors Lynn Anderson and S san Hanna-Bibus gave
an overview of the 2015-2016 annual report, goals and initiatives. The 1 o-Directors gave an
overview of rental income, programming, fundraisers, partners and pri is ary users of the Center.
They discussed the 2016-17 capital needs and expenses. Reduced costs ere realized to replace
the failing theatre seats by using the existing frames and to date the Na lie A Seat fundraising
campaign has raised $9,000. The Co-Directors discussed the increase in concert attendees,
events, rentals and off-site events. The Co-Directors discussed the reco si mendations of Aurora
Consulting to create a staff position to focus on fundraising. Staff discu•sed the challenges for
2016 including adequate staffing, improving efficiency, raising funds, i is proving technology,
marketing, exploring off-site options, maximizing volunteer and intern ontributions and
continuing to seek community partnerships.
There was Council discussion regarding recruitment of Board Members staffing and benefits to
the community. The Co-Directors commented that Board Members are recruited on the website,
recommendations and referrals. The Hopkins Center for the Arts provid•s the community
enrichment through the arts and is an economic benefit to area business,s. The Co-Directors
explained the day-to-day operations of the Arts Center and the need for. dedicated staff person
to fundraise and build relationships in the community.
Finance Director Harkess gave an explanation of past funding and the c rrent financial structure.
Ms. Harkess explained the donation from the Economic Development F nd that would support
and reduce the debt of HCA. This would put HCA in a more favorable s osition for grants and the
City's bond rating. Ms. Harkess discussed that all the Capital Improve is ents have been budgeted
but expenditures may be moved to different years. Staff will be working on a modified budget
and update the Council.
There was Council discussion regarding the leases with Stages Theatre, Hopkins School District
and the increase in expert and professional services. Ms. Anderson expl:fined that long-term
leases require less staff hours than rentals to the public and that they are investigating additional
janitorial services during high use times. Ms. Anderson will evaluate the comparison of building
uses and update the Council.
Council commented that the Hopkins Center for the Arts is a wonderful attribute to the City.
City Manager Morrison and HCA staff will continue meet with Aurora onsulting to evaluate the
direction for operations at the Arts Center. Council consensus was to go forward with the
$300,000 donation from the Economic Development Fund to reduce the HCA deficit.
HOPKINS CITY COUNCIL
WORK SESSION PROCEEDINGS
JANUARY 12, 2016
MOBILE FOOD UNIT DISCUSSION
City Clerk Domeier and Assistant City Manager Genellie gave an overview of the changes to the
Mobile Food Unit Policy. The changes included regulations suggested by the Fire Department,
Liability Insurance, indemnification language, requirements to obtain a Park Permit and
application and fee language. Ms. Domeier explained that additional changes would need to be
made to portions of the City Code and a zoning code update would be necessary.
There was Council discussion regarding the length of the permit, number of food trucks, summer
school lunch trucks and penalties. Ms. Domeier explained that the annual permit is for six days,
two food trucks are allowed per event, special language or a special event permit would cover
the school lunch mobile food unit and revocation of the permit would be the penalty for
violation.
Ms. Domeier explained that maps of designated parking areas for food trucks would be made
available as part of the application process. Staff would update the Council on Food Truck
Permits following the season and Council would be able to modify the policy at that time if
needed. The City Attorney will review the permit holder language and staff will update the
Council on the agenda timeline for the policy.
Liquor Ordinance amendment
City Clerk Domeier gave an overview of the amendments and fees for theatre liquor sales at a
proposed comedy club. The amendments will be on the January 19, 2016 City Council agenda
for first reading.
Sidewalk Café Policy
City Clerk Domeier reviewed language changes concerning the Sidewalk Café Policy. Changes
include building materials, extension of the allowed area, reflective strips, insurance
requirements, license renewal and specific timeline.
There was Council discussion regarding complaints and construction of the sidewalk cafes. Staff
did not receive any additional complaints and Council commented they heard mostly positive
remarks. Mr. Genellie commented that the constructed temporary structures should have no
obstructions. The policy will be on the February City Council agenda and staff will notify the
previous permit holders of the changes to the policy.
2016 LEGISLATIVE POLICY
City Manager Morrison provided an overview of the proposed legislative initiatives. The City
Council supported the initiatives as presented. It was anticipated that the elected Hopkins
representatives, State Representative Youakim and State Senator Latz will attend a future
Council meeting.
UPDATES
•Council Member Halverson commented that the snow pile blocking access to the trail along the
east side of 14th Avenue North was resolved.
H•PKINS CITY COUNCIL
WORK S SSION PROCEEDINGS
JANUARY 12, 2016
•Council Member Gadd discussed the upcoming Southwest Light Rail I ransit meeting
regarding cost estimates, proposed timeline and scope changes. Coun it Member Gadd will be
unable to attend the meeting but will provide feedback to the committ,e.
•Council Member Campbell gave an update on the Park Board meetinti. Feedback from the park
open houses included the importance of adequate lighting.
•Mayor Cummings discussed the need to screen the smoking area at D w Towers. Staff will
meet to discuss options.
•Mayor Cummings gave an update on local civic organizations donatio s and fundraising efforts
for the Pavilion at Cottageville Park.
•Mayor Cummings attended the Rotary meeting, Regional Council of ayors meeting and will
be walking in the St. Paul Winter Carnival Parade on February 6, 201i.
•Mayor Cummings, City Manager Mornson and city staff will be meefis g with SuperValu staff
on February 12, 2016.
•City Manager Mornson discussed the goal-setting packet.
•State of the City posters and postcards are ready to promote the event en Thursday, January 28,
2016.
•SWLRT station design will be presented at the January 19th City Cou cil meeting.
•Staff and Council will be attending the Racial Equity program.
•Discussion of the Light Rail Lawsuit article in the Star Tribune newsp:per.
ADJOURNMENT
There being no further business to come before the City Council and up•n a motion by Kuznia,
second by Campbell, the meeting was unanimously adjourned at 8:58 p m.
Respectfull Submitted,
Deb I ie Vold
ATTEST:
A/17 ,
Molly Cummings, Mayo f Amy Domeier, Ci Clerk