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02-05-02A regular meeting of the Hopkins City Council was held on February 5, 2002, 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, Kerrigan, Anderson, Bot, Yager, and City Attorney Jerre Miller. I. CALL TO ORDER Mayor Maxwell called the meeting to order at 7:35 p.m. II. OPEN AGENDA -PUBLIC COMMENTS AND CONCERNS There were none. III. REPORTS -COMMITTEES/COMMISSIONS 1. Zoning and Planning Commission Mary Hatcher reported that the Zoning and Planning Commission held their meeting on January 29th. They reviewed Randy Hanson's application for a variance on the empty lot east of his home, 707 Oakridge Rd. The Commission recommended denial. The Commission also reviewed the rezoning of a B-1 area along Highway 169, just east of the new SuperValu warehouse. The Commission recommended approval. The Commission reviewed the ordinance on vehicles and cars and recommended some re- wording. In answer to Mayor Maxwell's question, Mr. Mielke said that the applicant for the variance on Oakridge Rd requested an extension, IV. CONSENT AGENDA 1. Minutes of January 15, 2002 City Council Meeting 2. Minutes of January 22, 2002 City Council Work Session 3. Minutes of January 29, 2002 City Council Work Session 4. Ratify Prior Month's Disbursements 5. Snow Storage Site Lease, SuperValu (CR2002-21) 6. Set Date for'Hopkins Board of Appeal and Equalization (Memo) 7. Order Assessment Hearing, Knollwood Pond Project (CR2002-22) 8. Adoption of Resolution Authorizing 2002 Recycling Grant Application (CR2002-23) City Council Meeting Minutes February 5, 2002 Page 1 Council Member Johnson questioned part six of item five, Snow Storage site. Ms. Johnson said that if the City is responsible for damage to the site, there should be some documentation on the condition of the lot at the present time. The lot is in very bad shape. Mr. Stadler said that the lot has been used for snow storage for several years and that SuperValu has been very cooperative. He does not foresee any problems. In answer to Mayor Maxwell's question, Lori Yager said that the Hennepin County Recycling program will continue for two more years. Council Member Rowan moved and Council Member Brausen 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. V. OLD BUSINESS 1 . Second Reading, Pawn Shop Ordinance (CR2002-18) Jim Genellie said that an amended Council Report was given to them before the meeting. The change in the report is a change in the motion. A summary ordinance was prepared and the motion reflects the publication of the summary. There were two minor changes made to the ordinance since the first reading. The changes are: 1) The redemption period for any person pledging, pawning or depositing an item for security has been reduced from 90 days to 60 days before it becomes forfeited and sold; and 2) The holding period that prevents any item purchased or accepted in trade from being sold or transferred has been changed from 30 days to 21 days. At Pawn America's request, specific reference to the APF was replaced with "an automated system". Council Member Brausen moved and Council Member Jensen seconded a motion to adopt Ordinance 2002-865 for second reading, approve the summary of Ordinance 2002-865, and order the summary published. 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. City Council Meeting Minutes February 5, 2002 Page 2 VI. NEW BUSINESS 1. Rezoning B-1 Area Nancy Anderson said that there is a small area along Highway 169, just east of the new SuperValu warehouse, that is designated B-1, Limited Business. The new Comprehensive Plan has designated the area as Business Park. State Statute requires that the two be consistent. Ms. Anderson said that this is the most controversial of the rezonings that have taken place. Council Members discussed the use and the ability of the businesses to expand. Mayor Maxwell asked if the decision needed to be made tonight. Ms. Anderson said that there is still time. Mayor Maxwell said that he would like to discuss this item in a work session. Council Member Johnson moved and Council Member Rowan seconded a motion to continue this item to a future meeting. 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. 2. Approve Change Order, Parking Lots 500/600 Improvements dCR2002-20) Steve Stadler said that the longer than anticipated construction time resulted in many addition hours of construction inspection by the engineers, RLK- Kuusisto Ltd. The original construction services agreement budget of $49,438.00 was based on a nine-week project. The actual construction time was sixteen weeks. The additional negotiated fee is $19,000. Council Member Johnson moved and Council Mayor Maxwell seconded a motion to approve engineering services change order in the amount of $19,000 additional for engineering services related to this 2001 street and parking lot improvement project. 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. Fourth Quarter Financial Report Presentation Lori Yager, Director of Finance, reviewed the fourth quarter budget for the Council. Ms. Yager reviewed the fund balances. Ms. Yager said that the Governmental fund type reserves are up approximately $500,000 compared to December 31, 2001. The increased reserves are in the dept service funds City Council Meeting Minutes February 5, 2002 Page 3 for preparation of early retirement of some refunded and TIF district bonds. The City continues to be financially healthy. No action was taken. 4. First Reading Ordinance Raising Minimum Contract Amount for Bids (CR2002-6) Jim Genellie said that currently any amounts over $25,000 must be let for bid, State Statute requires that contracts shall be let, executed and delivered as provided in Minnesota Statutes and the City Charter. The State of Minnesota raised the amount of contracts that require bids from $25,000 to $50,000. The Charter states $25,000, but has language that allows the Council to adopt an ordinance to increase the amount to conform to the amount set by State Statute. Council Members discussed the ability of new contractors to bid on the smaller jobs. Staff answered that bid lists are kept and that people are always calling to have their name put on bid lists. Mayor Maxwell indicated that he would like to have project information posted on the web site. Council Member Rowan moved and Council Member Jensen seconded a motion to adopt Ordinance 2002-866 for first reading. 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. Create Insurance Internal Service Fund (CR2002-24) Lori Yager said that in 2001, finance analyzed the general liability and property insurance deduction and determined that we could save money by increasing the deductible on claims. The deductible was increased from $2,500 to $20,000 with a maximum payout of $40,000 in a given year. In 2001 the City received a premium reimbursement of $43,389. Establishing a new fund for the premium reimbursements would be used to pay for deductibles that could occur. Council Member Rowan moved and Council Member Brausen seconded a motion to approve the creation of a new Internal Service fund using the 2001 premium reimbursement. 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. City Council Meeting Minutes February 5, 2002 Page 4 6. Approve 2002 Contract for Sergeants (CR2002-19) Jim Genellie said that the contract calls fora 3% wage increase effective January 1, 2002 and a 0.5 % wage increase effective June 30, 2002. There is an increase of $45.00 per month for health, life and dental insurance. The increases are in range with other Cities in the area. The amounts are approximately what were budgeted. Council Member Jensen moved and Council Member Brausen seconded a motion to approve the 2002 Contract for the Sergeant's Union. 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, Council Member Jensen moved and Council Member Brausen seconded a motion to adjourn the meeting. The' meeting was adjourned by unanimous consent at 8:38 p.m. Respectively Submitted, erry rmaier, City Clerk ATTEST: Eugene .Maxwell, Mayor City Council Meeting Minutes February 5, 2002 Page 5