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