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01-10-2017 Work SessionHOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS JANUARY 10, 2017 CALL TO ORDER Pursuant to due call and notice thereof a regular work session of the Hopkins City Council was held on Tuesday, January 10, 2017 at 6:30 pm. 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 Mornson, Community Development Coordinator Beekman, Planning and Development Director Elverum, Finance Director Harkess, City Planner Lindahl, Assistant City Manager Lenz and Public Works Director Stadler. 2017 AND 2018 PROJECTS AND FUNDING In addition to City staff, a representative present for the item was Stacy Kvilvang, Ehlers Inc. Finance Director Harkess gave an overview of the upcoming projects and funding. Ms. Kvilvang provided an explanation of bank qualified vs. non-bank qualified bonds. Due to significant projects and the size of the 2017-2018 bond issue, the City would not qualify for a bank qualified bond and therefore pay more interest for a non-bank qualified bond. Ehlers, Inc. ran the differential and it would be approximately an additional $25-30,000 per year for non-bank qualified bonds. Ms. Harkess commented that the plan would be to issue the larger bond for just one year and keep the bond issue under $10 million the next year. There was much Council discussion regarding the bond issue. Council asked about the Pavilion project, street improvements and project maintenance. Public Works Director Stadler commented that Hopkins does qualify for the larger Mighty Ducks grant due to the type of refrigeration system at the Pavilion and that the street improvement project was higher this year due to the larger area. Mr. Stadler commented that there would be additional operational costs to maintain amenities. Staff is looking at maintainable materials when doing projects and the cost of outsourcing maintenance. Ms. Kvilvang commented that the updated Financial Management Plan would account for increased costs. Council Member Gadd asked which bonds were bought by commercial banks. Ms. Kvilvang would update the Council with the information. Mayor Cummings asked about the total outstanding debt. Ms. Kvilvang provided an explanation of the debt limit and commented that City has ample debt capacity. Council consensus was that due to the large number of 2017 projects and public expectation they approve the higher 2017 bond issue but would like to get back under $10 million the next year. HOPKINS PAVILION PROJECT UPDATE Public Works Director Stadler gave an overview of the Pavilion project, preliminary cost estimate and site plan. Mr. Stadler commented the estimated project cost for the upgraded facility would be $5.7 million and that the build out of the second floor would be an additional $1 million. Mr. Stadler gave an overview of the funding including a commitment letter from the Hopkins Youth Hockey Association (HYHA) for $1 million for the facility upgrade. Council Member Halverson asked about the HYHA funding. Mr. Stadler commented that the City would need legal documentation and a solid commitment from HYHA before going forward with the entire project. Mr. Stadler will HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS JANUARY 10, 2017 keep the Council updated. Mayor Cummings asked about the commitment of the Hopkins School District. Staff will be meeting with Hopkins School District to discuss their commitment and will keep the Council updated. City Manager Mornson asked about the base estimate. Mr. Stadler commented that the base proposal for is for the rink floor and refrigeration system only. Mr. Stadler explained that phase one of the project is for expansion of the buiiding including enlarged team rooms, reconfigured lobby and a community-warming house. There was Council discussion regarding the second floor expansion, high cost and timeframe. Mr. Stadler commented that the second floor would be more rentable space and the decision would need to be made in the next 45 days for the second floor to be included in the design scope. Mayor Cummings asked if many other cities would be doing the refrigeration project at same time. Mr. Stadler would investigate and update the Council. Mr. Stadler commented that the Mighty Ducks Grant process begins this summer. Council Member Gadd asked about the HYHA funding. Mr. Stadler explained that the City would not proceed until funding is committed. Staff will keep the Council updated regarding funding before moving forward with the design phase. COLD STORAGE SITE CHECK-IN Planning and Development Director Elverum gave an update of the Cold Storage site and redevelopment recommendations. Ms. Elverum commented that a lot of steps needed to be completed before development can take place on the large site. TonighYs discussion is intended to provide the Council with preliminary details for further conversation and thought in order to provide developers feedback and expectations from the City regarding the site. Ms. Elverum reviewed the Advisory Panel's comments and recommendations for the types of design and development for the 17-acre site. Ms. Elverum commented that staff has discussed options for rezoning the site to mixed use, the City's financial assistance for infrastructure build up, a Planned Unit Development, Tax Increment Financing, design criteria, mixed housing types and grants for environmental issues and affordable housing. City Manager Mornson asked about the Request for Qualifications (RFQ). Ms. Elverum commented that the consultants recommend the RFQ and the Minnehaha Creek Watershed District (MCWD) wants input and support from the City. Council Member Halverson asked about possible community space at the PPL project and water tables on the Cold Storage site. Ms. Elverum commented that the use of the PPL community space requires a tenant connection and the topography and site slopes would work in favor for the developer. Council Member Kuznia asked about the storm water component and building heights. Community Development Coordinator Beekman explained that 3-5 acres are designated for storm water management and that staff wants to look at height and density standards. Council Member Campbell commented that sustainability and community access are important for the site. Ms. Elverum explained that the current market sustainability is for housing not retail but the market can change. Mayor Cummings asked about the size of the site in comparison to other sites in Hopkins and commented on the importance of incorporating the needs of what HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS JANUARY 10, 2017 people are asking for, changing demographics and the ability to convert spaces to other uses. Staff will update the Council on the size of the site. Ms. Elverum commented that it is a challenge to redevelop sites and it is important to thoroughly think it through and get it right. Staff will keep the Council updated and encouraged the Council to share ideas with staff. 2040 COMPREHENSIVE PLAN UPDATE — CULTIVATE HOPKINS City Planner Lindahl gave an overview of the Comprehensive Plan and the feedback received to date. Mr. Lindahl discussed the public engagement process. There have been 126 responses to the survey and 300 views of the online video. Staff has interacted with 500 stakeholders but would like to get a broader perspective from the diverse populations. Mr. Lindahl discussed the 2016 survey questions and overall responses received so far. The next steps are to engage the public, find ways to broaden the connection to the community and establish an advisory committee. There was Council discussion about ways to engage the community, apartment residents and the diverse populations. Suggestions included postings at businesses and the public library, events at local grocery stores, paid ads on social media, a dedicated Facebook page, participation in Hopkins Race & Equity events, connecting with Hopkins School District, translation of materials into different languages, portable tablets, prizes and direct mailing. Council can direct any feedback and additional ideas to City Planner Lindahl. UPDATE ON SHADY OAK STATION Planning and Development Director Elverum updated the Council on the location of a storm water retention pond at the future SWLRT Shady Oak Station area that impedes future development and the street grid. Staff has looked cost estimates for a solution to divert the pond to a site near the SWLRT Operations and Maintenance Facility. The estimated cost would be approximately $1.5 million and should be a shared cost. Staff would apply for grants to offset the cost but Hopkins would need to think about contributing towards a local match. Ms. Elverum commented that the pond location is very impactful to the plan and would be a significant issue, as development could not happen as envisioned. City Manager Mornson asked how staff came up with costs. Ms. Elverum commented that the engineering firm, Bolten and Menk, Inc. looked at the plan and gave an estimated cost. Staff will continue to discuss the issue with the City of Minnetonka. 2017 LEGISLATIVE POLICY City Manager Mornson discussed the 2017 Legislative Policies and those that affect the City of Hopkins. There was discussion about wording for the SWLRT funding. Council and staff concluded that the current wording supports the purpose of the 2017 Legislative session. Wording could be changed for future Legislative sessions. HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS JANUARY 10, 2017 UPDATES • Council Member Kuznia will be attending the Interlachen Neighborhood meeting on Thursday. • Council Member Kuznia discussed an event the owner of the Comedy Club is planning in May. The Comedy Club owner also asked about the Liquor License hours and food requirements. Council Member Kuznia encouraged him to talk to the City Clerk. • Council Member Halverson discussed a business owner's concern about concrete around a stop sign on 9th Avenue S. Staff will investigate. • Council Member Halverson attended the Blake School neighborhood meeting and there were concerns regarding the bus route and parking. • Mayor Cummings attended the CMC meeting. • Mayor Cummings commented that the SWLRT Project Office reached out to the Stewart Company regarding their concerns. • Mayor Cummings had a discussion with the new General Manager at Walser regarding signage during the Highway 169 construction project to direct people into Hopkins. • Mayor Cummings will be meeting with Pawn America. • City Manager Mornson provided the following updates: o Goal setting meeting on Friday, January 13, 2017. o The joint meeting with the City of Minnetonka is Tuesday, January 17 at 5 pm. o Citizen Academy Alumni event is scheduled for Tuesday, April 25 at the Fire Station. o Hopkins Police Department swearing in ceremonies will be at a future City Council meeting. Assistant City Manager Lenz discussed a proposed Ordinance for a Liquor License Public Premise Permit for the City Council to review. Council can direct comments to City Clerk Domeier and the Ordinance is scheduled for a first reading on the February 7�h Council Agenda. There was discussion regarding fees and approved vendors and Ms. Lenz commented that a letter would be sent to Hopkins liquor establishments. ADJOURNMENT There being no further business to come before the City Council and upon a motion by Gadd, second by Kuznia, the meeting was unanimously adjourned at 9:54 p.m. Respectfully Submitted, Debbie Vold ATTEST: / ` G,��l� L� �r 2� �%C.G,.. �G'r' � /��"i `� `� ` Molly Cu mings, Mayor Amy Domeier, City Clerk