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10-08-02 WSOctober 8, 2002 Page 1 MINUSES CITY C®UNCIIJ WORD SESSI®N -October 8, 2002 A work session of the Hopkins City Council was held at 6:30 p.m. on October 8, 2002, at the City Hall. Council members present were Council members Brausen, Jensen, Johnson and Rowan. City personnel present were City Manager Mielke; Public Works Director Stadler, Asst. City Engineer Bot, Assistant City Manager Genellie and Finance Director Yager. Review of Street Assessment Policy Mr. Stadler explained the present policy, noting they follow State Statutes, Chapter 429. Now assessments usually follow the 70/30 ratio unless it is a major street partially funded by Municipal State Aid, in which case residents are assessed based on average street construction. On major street work single-family residences are assessed at a 50% rather than a 70% ratio. Ms. Yager noted that the normal length of an assessment period is 10 years. Mr. Mielke added this could be changed; stretching it out would mean lower payments but higher total cost for the residents. Answering Ms. Johnson, he said longer periods would affect cash flow in that the PIR fund is a revolving fund. If less comes in, the Council would end up having to decide if they could finance a road project or would have to sell bonds to do so. Most small towns use bonds for every project. Mr. Stadler noted Minnetonka levies 2-2.2 million a year for roads. Mr. Bot noted that when New Hope switched from an assessment program to anon-assessment system taxes for his home went up $200 a year. Answering Ms. Jensen, Ms. Yager said switching to a 50/50 ratio would mean $110,000 more would need to be levied, meaning a 12 % increase in the levy amount. Mr. Mielke added that if the assessment system were dropped, everyone would want their road fixed; Mr. Bot noted Minnetonka has constant road requests. Ms. Jensen asked if anything could be done to' help those who get assessed twice in a short period due to two street projects being near . their homes; Mr. Rowan agreed it should be looked into. Mr. Bot said 10 year assessment periods and 20 year life of roads makes it difficult. 1VIs. Johnson asked if people could be notified about the 5-year plan. Mr. Mielke said the capital plan is just that, a plan, not a program. Perhaps it could be done for the coming year of the plan if the caveats were explained in an accompanying letter. He would need to check with the city attorney whether that could be construed as an assessment notice. Mr. Bot noted that people get atwo-year notice before the assessment is due in that there is a year between the first notice and the assessment hearing, then a year before payment is actually due. Mr. Mielke added early notice is also sent to the neighborhood association president if the city knows of one. Ms. Johnson asked if residents could get more explanation of the situation; Mr. Stadler said that is done at the meeting, but could be done more fully in the letter. Mr. Bot noted any changes to the policy would not affect the current project, only future ones . General Consensus: Neighborhood discussion will be on the 21St. Sample scenarios for the 70/30 and 50/50 assessments and for 10-year versus 20-year periods as how they would affect city finances and homeowners should be prepared for the Council. Double assessments should be studied. Information on how interest rates would impact should be prepared. Clear lines need to be given as to what applies to the policy and what would apply to the current project. October 8, 2002 Page 2 2003 Public Works general fund discussion Ms. Johnson asked about plans for moving Public Works. Mr. Mielke said discussions are taking place with Cetom (owner of Knox) and Duke-Weeks (owner of three acres adjacent to (Knox and SuperValu. Knox would lease the smaller building but adjacent land would be needed at the side (Duke-Weeks property). SuperValu is concerned about leasing as the property is for sale. Negotiations will continue. Mr. Stadler noted the budget increases for building maintenance were equipment purchases. The increase in.traffic signals was due to reallocation from Street Lighting. Cutback options would entail deferring equipment purchase and cutbacks in services such as street repair and sidewalk repair. Long-term reductions could include moving the $500,000 of state aid to the maintenance allotment, but over the long term it would reduce monies fot~ the city share of their projects, which would mean raising taxes then. Mr. Rowan said he would appreciate more information on how the state aid formula works. Other options would include reducing supervisory staff, outsourcing services (costs would need to be studied), and reducing staff (which would reduce services). Community Services Budget Mr. Genellie noted there is no leeway in this budget. Any cuts would mean shorter hours for the public in city hall. Reception handles 30,000 calls a year and helps 10,000 visitors. He noted Inspections cover 96 % of their budget with revenues. The only new personnel is the Nuisance Inspector. Answering Ms. Johnson, he said partnering with other cities is always being looked into, but is harder to do than one would think. It has been tried with several positions in the past, and has never worked outs Off Sale Liquor, Tobacco and Fireworks Licensing Mr. Genellie had maps showing where liquor and tobacco are sold. The moratorium will end December 24, but could be renewed. He has told the Chemical Health Commission that if the Council wants changes in the ordinance, he will notify them. Liquor: A general discussion was held on the reason for limiting off-sale liquor. Mr. Mielke noted options could be those used for adult stores -not near schools and churches ("sensitive areas"), distance between similar stores, B2 could be different from B3 zoning. Ms. Jensen and Ms. Johnson were concerned that liquor stores, pawn shops and cash checking places could end up adjacent to each other, making a poor public image. Mr. Rowan said he would like to see liquor stores separated from residential areas. General Consensus was staff should do an analysis for distance requirements from residential areas, between stores and from sensitive areas. Tobacco: Mr. Genellie noted Chemical Health had not wanted "more outlets." General Consensus was that this should wait for Mayor Maxwell's return due to his concern with the issue. Fireworks: Mr. Genellie said staff is drafting an ordinance for licensing the sale of October 8, 2002 Page 3 fireworks. They want feedback on requiring permanent building, sprinkling system, limiting storage, zoning and fees. Ms. Johnson said storage limitations are more important than the sprinkling system. Mr. Brausen suggested that the amount allowed to be stored be based on . whether there is a sprinkling system or not. Ms. Jensen said she felt the building should be free- standing because of the storage issues. Ms. Johnson asked whether the process could be done by registration like the pawn shops so there would not need to be so many inspections. General consensus was staff should continue with the ordinance drafting. Mr. Brausen moved adjournment; Ms. Johson seconded. Meeting adjourned at 9:30 p.m. Kasey Kester, Secretary ATTEST: Euge J. xwell, Mayor COU CI MBERS: