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