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IV.3. Minutes of the July 18, 2017 City Council Work Session ProceedingsHOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS JULY 18, 2017 CALL TO ORDER Pursuant to due call and notice thereof a regular work session of the Hopkins City Council was held on Tuesday, July 18, 2017 at 6:31 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, Finance Director Bishop, Planning and Development Director Elverum, Planning and Economic Development Intern Curt Howard and Housing Officer Unowsky. AFFORDABLE HOUSING DISCUSSION In addition to City staff, representatives present for the item were Shepherd of the Hills Lutheran Pastor Scott Searl and Associate Pastor Joanna Mitchell; ICA Director Peg Keenan, ResourceWest Executive Director Tarah Palm, Blake Road Corridor Collaborative representative Ann Beuch, Community Action Partnership of Hennepin County representative Christine Hart and Housing Justice Center representative Tim Thompson. Planning and Development Director Elverum introduced the affordable housing discussion which would focus on the needs and issues in the Hopkins community. Ms. Elverum commented that housing is a critical part of the community and has impacts on jobs and transportation. Ms. Elverum commented that the loss of naturally occurring affordable housing (NOAH) is a regional trend due to the current market demand. Pastor Searl commented on the spirit and leadership of Hopkins that supports housing, diversity and economic growth. Pastor Searl discussed the concerns of development along the light rail, additional housing options, current market trends and needs of displaced residents. Ms. Beuch discussed affordable housing statistics. Ms. Hart discussed types of affordable housing, housing demands in the metro area and rental trends. Ms. Hart commented that there is a housing crisis in the Twin Cities and increases in the demand for social services coincides with the loss of NOAH and number of displaced residents. Ms. Hart commented that there are a lot of regional conversations happening regarding the housing issue. Ms. Keenan discussed Hopkins statistics explaining that 65.4% of households are renters, 49% are NOAH rentals and 5% are publically subsidized. Ms. Palm discussed the cost burdens and use of social services for displaced residents. Mr. Thompson discussed practical steps cities can take to preserve affordable housing. Cities could require a 90-day advance sale notice giving preservation buyers/nonprofits an opportunity to compete for the property purchase. Ms. Keenan discussed the number of service calls regarding low cost housing and commented on the importance of preserving affordable housing. Ms. Keenan commented that on average a renter lives in a community 2-5 years. HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS JULY 18, 2017 Mr. Thompson discussed ways to protect tenants including the Section 8 Voucher program and creation of incentives to get landlords to participate in the program. Mr. Thompson discussed a Just Cause ordinance or requirement that landlords demonstrate good reason for tenants to vacate a property. Mr. Thompson discussed building new affordable, mixed-income housing and requiring or encouraging developers to include affordable units in market rate developments. Area cities are looking at strengthening inclusionary zoning policies. There was discussion about the challenge for landlords to upgrade properties while keeping rents affordable and the administrative burden of the Section 8 program. Mr. Thompson commented that preservation buyers tend to make an investment in the property with moderate rent increases and cities could offer rehabilitation loans in exchange for affordability options. Ms. Hart explained the Section 8 rules, inspection process and discrimination policy. Ms. Elverum commented that the Met Counci l administers the Section 8 program in Hopkins. There was discussion of the 90-day notice to make a rental property sale public and the provisions to protect tenants with Just Cause. Mayor Cummings commented on the “Sold Out” housing documentary and the community impacts when tenants are displaced. Mayor Cummings commented that the work force shortage is tied directly to lack of housing. Council commented on the importance to educate the community and preserve and improve the housing stock. Ms. Elverum discussed the significant number of Hopkins rental units with just a few owners and the need to continue the discussion to have tools and policies in place. There was discussion regarding creating an Affordable Housing Foundation funded by developers. Ms. Elverum commented that staff could continue to explore and thi nk creatively about a foundation. Mayor Cummings commented on the important task that the Council has to balance the tax base to be able to continue to provide amenities to the residents. Ms. Elverum discussed market conditions and redevelopment in Hopkins. Hopkins looks at each redevelopment on a case-by-case basis realizing there is competition with neighboring cities. Hopkins has already planned for higher densities surrounding the SWLRT station areas. Ms. Elverum commented that each community works differently and that staff would continue to explore a housing policy that is a good fit for Hopkins. Ms. Elverum commented that staff and Council could continue the discussion of general strategies and ideas. There was discussion about the importance of community engagement, educating the public on the definition of affordable housing and to continue the affordable housing discussion. HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS JULY 18, 2017 Community Development Ms. Elverum gave a update on the SWLRT Shady Oak Station storm water treatment pond site. The Project Office has agreed to a subordinate funding agreement for a future storm water connection to the Operations and Maintenance Facility (OMF) site. Diverting the storm water pond to the OMF would offer more redevelopment opportunities. Ms. Elverum discussed the costs for design work and construction that would be split with the City of Minnetonka. Staff commented that costs could be recaptured with future development. Council recommended moving forward with the agreement. The agreement would be on the next City Council agenda. 2018-2022 EQUIPMENT REPLACEMENT PLAN (ERP) Finance Director Bishop discussed the highlights of the 2018-2022 preliminary ERP. Mr. Bishop commented that the 5-year plan is updated annually. Mr. Bishop discussed the funding sources, equipment certificates, use of the funds and projected balance. There was Council discussion about patrol vehicles costs and that it is helpful to have a visual of the equipment requested. Council asked about the interfund loan. Mr. Bishop commented that the loan was from the General Fund and is scheduled to be paid back over 3 years. Council asked about the Franchise Fees. Mr. Bishop commented that the fees are renewed every 5 years which would be at the end of 2018. Staff and Council could reevaluate the fee at that time. Staff would continue to assess the ERP and make adjustments. Mr. Bishop asked that the Council continue to review the plan and address questions and concerns with the Finance Dept. 2018-2022 CAPITAL IMPROVEMENT PLAN (CIP) Finance Director Bishop discussed the highlights of the preliminary 2018-2022 CIP. The 5-year plan is updated annually. Mr. Bishop discussed the funds, funding sources and 2018 proposed projects including the Pavilion addition, pickleball courts at Central Park and Park Valley play equipment. There was Council discussion regarding costs and funding. Mr. Bishop commented that a portion of the Blake Road corridor improvements were funded by a grant. Mayor Cummings asked about a $134,000 donation. Staff will review and update the Council. The ERP and CIP would be on the next Work Session agenda. Staff would continue to fine tune the budget and finalize cash flows. Mr. Bishop will update the Council on what is new in the ERP. UPDATES  Council Member Campbell commented on the Raspberry Festival parade plane flyover sponsored by Tuttles.  Council Member Gadd discussed a resident concern regarding a rental inspection.  Council Member Gadd gave an overview of the Met Cities Policy Committee discussion regarding legislative issues that could affect Hopkins.  Council Member Kuznia commented on the good job by City staff cleaning up following the Raspberry Festival parade. HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS JULY 18, 2017  Mayor Cummings asked that two housing articles be distributed to Council Members.  Mayor Cummings will be meeting with the new Hopkins School District Superintendent. City Manager Mornson gave the following updates:  The Tuesday Farmer’s Market located at Pizza Luce closed due to lack of interest.  Discussion of National Night Out. Hobby Acres is the 2017 kick-off event site. A law change now allows police departments to solicit funds for National Night Out.  Artery update: a soft opening is scheduled for November with the funding partners and the Grand Opening scheduled for June 2, 2018.  Open Streets event scheduled for October 14.  The Moline will be scheduling a ribbon cutting.  Hockey Project agreement scheduled to be on the July 31 City Council agenda. ADJOURNMENT There being no further business to come before the City Council and upon a motion by Campbell, second by Kuznia, the meeting was unanimously adjourned at 9:01 p.m. Respectfully Submitted, Debbie Vold ATTEST: ___________________________ ____________________________ Molly Cummings, Mayor Amy Domeier, City Clerk