11-18-03A regular meeting of the Hopkins City Council was held on November 18, 2003, in
the Council Chambers of the Hopkins City Hall.
Present were Mayor Maxwell and Council Members Brausen, Jensen, Johnson, and
Rowan. Also, present were staff members Mielke, Genellie, Stadler, Stahmer, N.
Anderson, Mike Noe, and City Attorney Jerre Miller.
CALL TO ORDER
Mayor Maxwell called the meeting to order at 7:34 p.m.
1. Special Order of Business
Proclamation for Jerre Miller
Mayor Maxwell read the proclamation and presented it to Jerre Miller, City Attorney.
Mr. Miller has served as the City Attorney for the City of Hopkins for 17 years.
Tonight is his last meeting. Mr. Miller thanked the Council and staff.
II. OPEN AGENDA -PUBLIC COMMENTS AND CONCERNS
Brad and Scott Holzer from Erberts and Gerberts introduced themselves as new
business owners in Hopkins. Their open house was a success.
III. PRESENTATION
There were none
IV. REPORTS -COMMITTEES/COMMISSIONS
Dick Neiman reported for the Park Board. The lost one member because the member
moved from Hopkins. They will need to replace that member. At the meeting, they
discussed two items. The first item they discussed was the dog park. The Board is
recommending that staff study the feasibility of providing a dog park. The Board also
discussed the Downtown Park. The pavers are in and benches are up. Everything
looks very nice. Ten straight benches have been placed. There are no more straight
benches. Donations have been received for five curved benches. Eleven curved
benches remain for donations.
The Board discussed policies for the use of the Downtown Park. They adapted the
policy on Picnics in the Park and will be presenting a recommended policy to the
Council at a later date.
An opening ceremony is planned for the Downtown Park next spring. The planned
time is on Wednesday evening before Memorial Day.
November 18, 2003 City Council Meeting Minutes Page 1
Mr. Neiman requested that the Park Board meeting dates and times be listed in the
Highlights.
V. CONSENT AGENDA
1. Minutes of November 5, 2003, City Council Meeting
2. Minutes of November 12, 2003, City Council Work Session
3. Approve Engineering Services Agreement, Lift Station #7, (CR2003-171)
4. Approve Agreement for Snow Storage Site Lease, SuperValu Property
(CR2003-169)
In response to Council Member Brausen's request, Mr. Stadler stated that lift station
#7 is one of the largest in the City. It is located by Valley Park, off from 8th St S. It
is now 30 years old. After a study of the equipment, staff decided to rehab the site
instead of replacing the equipment. The rehab will add 20 to 30 years of service to
the station. The funds will come from the Sanitary Sewer Fund, not general
revenues. The work will begin in April 2004 and continue for about 60 days. There
will be no interruption in service.
Mr. Stadler explained item #4. The City plows some areas of the City where the
snow has to be hauled away. In the past, they have dumped snow in other areas and
at the Shady Oak Beach parking lot. The parking lot at Shady Oak is not a good place
to dump the snow, allowing melt off to go into the lake. SuperValu is closer to
Mainstreet and easier to access. The cost of the lease is 515,000 per year.
Council Member Brausen moved and Council Member Rowan seconded a motion to
approve the Consent Agenda. A poll of the vote was as follows: Council Member
Brausen, aye; Council Member Jensen, aye; Council Member Rowan, aye; Council
Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously.
VI. PUBLIC HEARING
There were none.
VII. NEW BUSINESS
Council Member Rowan Stepped down for the next item at 7:47 p.m.
1. Request for Use of Unimproved Right-of-way (CR2003-171)
The owner of 9 Van Buren Ave S has requested temporary use of a section of
unimproved alley right-of-way. The owner would like to park a thirty, plus-foot motor
home in the right-of-way. With City staff approval, the owner has been parking the
motor home in the right-of-way. The right-of-way area became open when portions
of the alley were closed because of the Excelsior Blvd. project. The City Council
made a decision to put off the possibility of vacating the area until the configuration
November 16, 2003 City Council Meeting Minutes Page 2
has been in place for a year. Mr. Stadler explained that the applicant lost the ability
to maneuver the vehicle onto her lot when the alley was reconfigured. When projects
of this sort are undertaken, staff usually tries to accommodate residents by solving
problems that arise because of the project. Temporary use could continue with
conditions. An agreement would identify that area as City property without the
intention of vacating. Mr. Stadler stated that this area was never intended to be part
of the green space. The intended green space was always identified as the other side
of the fence. Several other areas of the City exist where adjacent property owners
maintain and passively use unimproved alley right-of-ways. Several of the driveways
in this area were extended into the right0of-way. The City monitors and enforces the
use of these right-of-way areas on a complaint basis.
Council Member Johnson asked when permission was given and stated that the
situation was discussed at a work session. The consensus of the Council Members at
the work session was that nothing would be done or allowed on this particular right-
of-way for at least a year.
Pat Saunders, the applicant came forward. Ms. Saunders stated that since the time
when the first plan to remove the T's in the Alley was discussed, she had been told
that she could park the vehicle on the right-of-way. Permission has been there from
the beginning for the resident's use of the land. Ms. Saunders said that she has made
landscaping improvements to compensate for the creation of the berm and the
increased elevations of the area.
Residents of the neighborhood area have objected to the use.
Dan Eagan, 41 Van Buren Ave S, stated that the improvement should not have been
made until the alley was vacated. Mr. Eagan stated that the neighborhoods
expectation was that the right-of-way area would be green space, park area. Mr.
Eagan also stated that the City did not follow the ordinance in allowing the temporary
use.
Council Member Jensen said that she recalled that the north side of the fence would
be the green space area and that eventually the south side would be vacated.
Mr. Mielke stated that the City has given permission for temporary use of rights-of-
way to many. Doing so would not constitute an ordinance violation.
Sue McCarville, 58 Harrison Ave S, stated that there is a long history of assumption
that this space belongs to the applicant.
Jeff Christensen, 37 Van Buren Ave S, stated that permission to use the right-of-way
should not have been given. He has been sited many times for vehicles on his
property. Everyone needs to keep their vehicles on their own property.
November 18, 2003 City Council Meeting Minutes Page 3
Dave McCarville, 58 Harrison Ave S, stated that when the new ordinance was
passed, he had to have his camper put into storage, because there was not room on
his property for the camper.
Don Roesner, 618 Park Valley Dr W, stated that in his neighborhood there is a real
problem with vehicles. Vehicles cannot park on the Boulevard. He asked that the
Council not set a precedent by allowing the vehicle to be stored on the right-of-way.
Ms. Saunders came forward again. She stated that she did not assume the use of the
right-of-way. Permission was granted.
Council Members discussed the possible vacation of the alley and its use until the
time of the possible vacation. There was consensus that nothing should be allowed
on the right-of-way at this time.
Council Member Jensen moved to permit use of the unimproved alley right-of-way
adjacent to 9 Van Buren Ave S provided RV parking ordinance requirements are met,
objecting neighborhood residents' concerns are addressed and the owner enters into a
license agreement with the City. The motion died for lack of a second.
Council Member Johnson moved and Council Member Brausen seconded a motion to
deny the request for a permit to park on the unimproved right-of-way and that the
applicant be instructed to remove the motor home from the right-of-way. A poll of
the vote was as follows: Council Member Brausen, aye; Council Member Jensen,
nay; Council Member Johnson, aye; Mayor Maxwell, aye. The motion carried.
Council Member Rowan returned to the table at 9:00 p.m.
2. Amend CUP for Dental Office at 1222 Mainstreet (CR2003-168)
A few months ago a conditional use permit was approved to construct a dental office
at 1222 Mainstreet. The construction bid for the building came in over budget. Dr.
Gendler is now proposing to have the bottom of the building below the windows brick
and the remaining part of the building stucco. The new building exterior will meet the
design guidelines. The Zoning and Planning Commission have reviewed the changes
and no comments were received from any of the Commissioners about the changes.
Mayor Maxwell questioned the original estimate.
Ilya Epshteyn, the project engineer, said that the estimate was an architect's
estimate.
Dr. Jhosef Gendler, the owner of the Dental practice, stated that he gave the
architect a budget and that the architect exceeded that budget by 5400,000.
November 18, 2003 City Council Meeting Minutes Page 4
Council Member Rowan moved and Council Member Brausen seconded a motion to
amend the approved CUPS-7 with the new exterior to the dental office at 1222
Mainstreet. A poll of the vote was as follows: Council Member Brausen, aye;
Council Member Jensen, aye; Council Member Johnson, aye; Council Member Rowan,
aye; Mayor Maxwell, aye. The motion carried unanimously.
3. Lawful Gambling Premises Permit for Youth Hockey Association (CR2003-
157)
Several months ago, Hopkins Youth Hockey Association applied for a premises permit
for Tuttle's Hopkins Recreation. At the time, the application was continued and later
withdrawn because they did not meet the requirements of Hopkins Policy 4-A, Lawful
Gambling. The areas of non-compliance, Section 2.02, physical location in the City;
Section 2.07, two organizations doing the same games at the same location; and
Section 2.03, a minimum of 30 active members as defined by State Statute, Chapter
349, have now been corrected.
Council Member Johnson stated that she did not believe that the Youth Hockey
Association has complied with Section 2.10 of the Legislative Policy 4-A. Ms.
Obermaier responded that the Hopkins Youth Hockey Association held a meeting in
March where the general membership approved gambling activities. Council Member
Johnson asked the City Attorney to respond. Jerre Miller, City Attorney, responded
that the March meeting satisfied Section 2.10. Mr. Miller also reviewed a letter that
was submitted by the Raspberry Festival. He said that he found nothing in the letter
that would cause him to recommend denying the permit.
Council Members Brausen and Rowan both indicated that they were uncomfortable
with gambling for a youth related activity, but they believed that the applicant met
the requirements of the policy.
Council Member Jensen moved and Council Member Rowan seconded a motion to
adopt Resolution 2003-96, approving a Lawful Gamboling Premises Permit at Tuttle's
Hopkins Recreation, 107 Shady Oak Rd, for the Hopkins Youth Hockey Association
contingent on staff receiving a written opinion from the City Attorney by November
21, as to whether the Hopkins Youth Hockey Association met the requirement of
Section 2.10. A poll of the vote was as follows: Council Member Brausen, aye;
Council Member Jensen, aye; Council Member Johnson, aye; Council Member Rowan,
aye; Mayor Maxwell, aye. The motion carried unanimously.
4. Procedure for Handling Gambling Funds (CR2003-136)
At the August 19t" City Council Meeting, the Council amended Legislative Policy 4-A,
Lawful Gambling, by including Section 2.15. The new section requires organizations
who are conducting lawful gambling in leased premises to contribute 10% of their net
profits to the City. The City Attorney is recommending that the contribution be
Novemher 18, 2003 City Council Meeting Minutes Page 5
extended to all organizations conducting lawful gambling, or eliminated from the
policy. Staff asked for direction.
The City Council discussed the requirement of the 10% and the resulting fund that
would be created. The Council expressed their desire to hear from all of the
organizations and felt that staff should be proactive in obtaining the feed back. Mr.
Genellie responded that it could be scheduled for a work session and placed on the
agenda in December.
Council Member Jensen moved and Council Member Rowan seconded a motion to
direct staff to write a letter to all lawful gambling organizations notifying them of the
proposed fund and work session. A poll of the vote was as follows: Council Member
Brausen, aye; Council Member Jensen, aye; Council Member Johnson, aye; Council
Member Rowan, aye; Mayor Maxwell, aye. The motion carried unanimously.
5. First Reading, Gas and Electric Franchise Fee Ordinance (CR2003-167)
Minnesota Statute 2166.36 grants cities the authority to impose franchise fees on
gas and electric utility services in return for the utility's use of public rights-of-way.
The City has nonexclusive franchise agreements with CenterPoint Energy Minnegasco
and with NSP/Xcel Energy. Both companies have been notified of the City's intent to
consider franchise fee ordinances.
The ordinance as presented shows a residential fee of 51.50 per premise. Staff is
recommending that that be changed to 51.00 for second reading.
Based on a residential fee of 51.00 per premise and fees from 53.00 to 563.00 for
commercial and industrial locations, the expected revenues would be about
5290,000.
Council Member Jensen questioned if the funds received through the fees needed to
be dedicated to offset the cost of streets and utilities. Staff responded that the
Council can choose where the funds are allocated.
Mr. Stahmer stated that the City is allowed to charge different rates based on the
customer classification as defined by the utility.
In response to a question from the Council, Mr. Stahmer stated that no service fee
from the utility for collecting the fee has been discussed.
Council Members discussed the differences between a sunset clause and fee review
clause and concurred on the preference for a sunset clause.
The Council discussed how and when the fee could be changed -annually with
notice. The budget process will force fee review.
November 18, 2003 City Council Meeting Minutes Page 6
Council Member Jensen stated that she would prefer that a cap be placed on the fee.
Don Roesner, 618 Park Valley Dr W, came forward. Mr. Roesner questioned the
fairness of the Gas franchise fee on apartment dwellers versus homeowners.
A discussion was held on different ways to figure the fees.
AI Swintek, CenterPoint Energy, addressed the Council. CenterPoint is not exactly
happy with the fee, but will work with the City and do recognize the necessity.
CenterPoint prefers a flat fee, because that way lower income customers that cannot
afford the better windows and insulation are not penalized for more usage. It is felt
that the lower fee is more equitable and is less burdensome to CenterPoint.
The City Council directed staff to review the rates in both ordinances to be sure that
residents are being treated equitably.
Council Member Brausen moved and Council Member Jensen seconded a motion to
approve Ordinance 2003-910, Utility Franchise Fee Ordinance for Xcel Energy for
First Reading with Staff recommended changes . A poll of the vote was as follows:
Council Member Brausen, aye; Council Member Jensen, aye; Council Member
Johnson, aye; Council Member Rowan, aye; Mayor Maxwell, aye. The motion carried
unanimously.
Council Member Brausen moved and Council Member Johnson seconded a motion to
Approve Ordinance 2003-911, Utility Franchise Fee Ordinance for CenterPoint Energy
Minnegasco for First Reading with Staff Recommended Changes. A poll of the vote
was as follows: Council Member Brausen, aye; Council Member Jensen, aye; Council
Member Johnson, aye; Council Member Rowan, aye; Mayor Maxwell, aye. The
motion carried unanimously.
6. Parking Permit Fee Increase (CR2003-165)
Current parking. ramp and municipal lot fees are set at 52 per day, 515 per month,
538 per quarter, and 5130 per year. An increase to 5140 per year and 540 per
quarter would help to offset increasing maintenance costs relating to the public
parking lots and the aging municipal ramp.
Council Member Johnson moved and Council Member Jensen seconded a motion to
approve an increase in the yearly and quarterly parking permit rates of 7.7% and
5.3/5 respectively, with new 2004 rates in the amount of 5140 per year and 540 per
quarter. A poll of the vote was as follows: Council Member Brausen, aye; Council
Member Jensen, aye; Council Member Johnson, aye; Council Member Rowan, aye;
Mayor Maxwell, aye. The motion carried unanimously.
7. Approve Purchase of Telephone System (CR2003-166)
November 18, 2003 City Council Meeting Minutes Page 7
The City's current telephone system is eleven years old. A total of 5119,000 was
placed in the Equipment Replacement Plan to replace the equipment in 2002. Staff
has looked at upgrading the software for the current system in order to prolong the
life of the system. Now the new facility projects require additional equipment. The
City solicited bids for both upgrading the existing system, with some additional
equipment for the new facilities as well as completely replacing the telephone system.
Only one provider bid on the upgrade at a cost of 585,000. A completely new
system will cost approximately 5101,000. The maintenance costs will be
significantly less over the next seven years than keeping or upgrading the current
system.
Mr. Genellie introduced Mike Noe, IT Director, to the Council and said that they were
both available to answer any questions.
Council Member Jensen moved and Council Member Brausen seconded a motion to
approve the expenditure of 5101,000 for the purchase of a new telephone system for
the City. A poll of the vote was as follows: Council Member Brausen, aye; Council
Member Jensen, aye; Council Member Johnson, aye; Council Member Rowan, aye;
Mayor Maxwell, aye. The motion carried unanimously.
VIII. ADJOURNMENT
There being no further business, City Attorney Jerre Miller moved and seconded a
motion to adjourn the meeting. The meeting was adjourned by unanimous consent at
1 1:00 p.m.
Respectfully Submitted,
Terry O maier, City Clerk
ATTEST:
Eugene xwell, Mayor
November 18, 2003 City Council Meeting Minutes Page 8