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11-30-04 WSNovember 30, 2004 Page 1 MINUTES CITY COUNCIL WORK SESSION -November 30, 2004 A work session of the Hopkins City Council was called to order by Mayor Gene Maxwell at 5:45 p.m. on November 30, 2004, at the City Hall. Council members Brausen, Johnson, Rowan and Thompson were present. City personnel present were: Acting City Manager Jim Genellie; Economic Development Director Jim Kerrigan; City Planner Nancy Anderson; Housing Coordinator Kersten Elverum; City Attorney Jeremy Steiner; Facilities Director Jay Strachota; and Financial Director Christine Harkess. For the Joint Meeting with the Zoning & Planning Commission commission members Peter Sholtz, Virgil Harness, Mary Hatcher, Krisi Halverson, Michael Kjos and Jannina Aristy were present. Also present for the work session were Heidi Kurtze of Cornerstone; Melissa Pfannenstein of DJR; Katie Lee of Hopkins School District; Vidya Rao, Teen Coordinator for the Depot; Bertrand Weber of Royal Cuisine, Hopkins School; and Kathleen Taber of the Depot. Joint Council/Zoning and Planning Session Mr. Kerrigan said he felt it was good for Council and the Commission to talk over various issues. He had three issues in mind: legal constraints of zoning, the planning process, and issues such as Council taking action other than that recommended by the Council. Attorney Steiner said zoning ordinance authority was given by the state statute Chapter 462. Chapter 473 requires cities to adopt a comprehensive plan. All zoning ordinances must conform to the comprehensive plan. The Met Council has the right of approval over the comprehensive plan to be sure such a plan meshes with the metropolitan plan. Zoning ordinances comprise a map that divides the city into districts and text which describes permitted uses and conditional uses for each type of district. A conditional use can be allowed only if certain conditions are met. Last summer Hopkins adopted a site plan review ordinance which reviews all construction other than single-family residences. The process is much like that for conditional use permits, and reasonable conditions can be required. Rezoning requires amendment of the city map and a text amendment to the zoning ordinance. The city has two types of authority: legislative authority, which gives city councils a lot of discretion although there must be some rational relationship to the issues involved; and quasi judicial, that of factual determinations, which has less leeway. Variances are a thorny issue. He stressed it is important to be consistent with state statute 462.357 subdiv. 6 which requires strict enforcement of the undue hardship requirement, which are specific to the property (such as unusual shape of lot), and the owner's plight must not be caused by his own actions. Economic considerations do not constitute undue hardship. It must be clear to variance applicants that the burden of proof is on them. The state changed the law on non-conforming usage; previously anon-conforming use ended if it stopped for more than a year or over 50 % of the premises were destroyed. Effective August 1 a site may be totally destroyed and rebuilt for the same non-conforming use. The legislature also changed the limit on moratoriums so effective August 1 there is a one-year limit and applicants have vested rights and are exempt if their application is submitted and fees paid before the enactment of the moratorium. November 30, 2004 Page 2 Mayor Maxwell noted the current comprehensive plan was implemented in 1999. He said Council and the Commission need to try to see what is coming down the road, need to be proactive. He wants the Commission to feel they are part of that process. Ms. Johnson suggested a yearly joint review of the plan. Ms. Anderson noted that the comprehensive plan can be changed during its 10-year period. Mayor Maxwell and Ms. Anderson mentioned the zoning change for the Knox property, noting if Honda goes out it reverts back to the original business park designation. Mr Aarness said he would like to have a review of the plan to help guide new commission members in making decisions. Ms. Hatcher felt a periodic review would be good. Ms. Aristy agreed, saying she wants to be sure her vision is the same as the city's. She asked how planning applies to the Commission, saying she feels the Commission is just to approve others' plans. Mayor Maxwell and Ms. Anderson noted East End was recently finished and Shady Oak will be coming up. They also need to look at Cornerstone now. Mr. Brausen noted while it has improved, he knows training for new members still could be better. Mr. Kerrigan noted the Commission would be dealing with car lots, sculptures, and the rezoning and overlay district of East End in next few months. Ms. Johnson noted that Shady Oak needs to be looked at now before the County hands us their plan. Mayor Maxwell suggested that when the Commission has short meetings they could work on planning afterward. He mentioned St. Joseph's school area as one area to plan for; Ms. Anderson noted it is now a B3 district. She said her department needs help in deciding areas to look at. Mr. Aarness asked if a variance given for one neighborhood would mean the same criteria would apply to a different neighborhood; Mr. Steiner said if it is the same type district and same type of variance it would apply city-wide. Mr. Aarness said he would like staff to give reasons for why they have a recommendation. Mayor Maxwell and Mr. Kerrigan encouraged him and other Commission members to talk to staff or Council. Mr. Kerrigan said part of the problem is that if legal support is laid out and the Commission does not want to do it, their support could be used against the city in court. He agreed each report could have a section on how the issue relates to the comprehensive plan. Mr. Thompson encouraged the Commission to feel free to look at areas not under consideration by Council. Ms. Johnson suggested a meeting in January; Mr. Rowan said this would be a good time for an annual review and to start on planning issues. General Consensus: There should be at least annual, and preferably quarterly, joint meetings to discuss future plans. Ms. Anderson will see the new Commission members get copies of the comprehensive plan. Cornerstone Redevelopment; Hopkins Honda Property Ms. Elverum said Cornerstone has a purchase agreement with Luther for the property between 6`~ and 8~' Ave. on Mainstreet. Hopkins Honda will move this summer. Demolition and the start of the project will happen by fall. A couple obstacles have come up. Ms. Kurtze said many options were looked at for the two triangular pieces. Two major obstacles are parking accessibility- there are only 4-5 spaces for the one triangle. Hennepin County Rail Authority will not allow any building upon or underground parking in their 15 foot setback. While Luther owns the property, the County has a permanent deed restriction on that 15 feet. This was not discovered until title work was being done. November 30, 2004 Page 3 Staff is still trying to get approval for trees, etc. for screening. Cornerstone is adding a public sculpture or fountain; they may deed that portion back to the city as it is unbuildable. Ms. Pfannenstein went over preliminary sketches with the Council. They are staying at four stories as five would require variances and have to meet more stringent fire regulations. Also four stories will then match the building across the street. Mr. Kerrigan said he would rather see a squared front than the pitched one, that it would match Mainstreet's feel better; Mr. Thompson and Mr. Brausen agreed. Mr. Genellie asked about roof decks. Ms. Kurtze said it would push the cost up too much. Mr. Kerrigan asked about better soundproofing; Ms. Pfannenstein said cost and air quality issues are the factors; Ms. Kurtze said they would check on windows, etc. that might help. Mr. Kerrigan asked if all the Lofts retail space was taken; Ms. Kurtze said it could have been, but they refused some applicants as not suitable. They may split the 1300 sq. ft. left as some parties were interested in smaller space. Cornerstone would then use half as their sales center for Phase 2. Answering Council questions, they said they anticipate no price difference between Mainstreet and 8`'' Avenue units. A triangle could not be used as just a parking lot as finances are so tight on the project. There will be a raised front veranda for each unit, which will be fenced. From 7~' Ave. one would see landscaping and the community room, plus solid wall for the service rooms. There would be lots of windows on the 2"d to 4"' floors. Mr. Kerrigan noted that during the Regency project neighbors were concerned about occupants "looking down on them" through their windows. Jim Genellie suggested an elevation for the north side be done so neighbors could see what their view would be. Mayor Maxwell asked if Cornerstone is interested in developing the other property between 5`~ and 6~' Avenues. Ms. Kurtze said issues are absorption rate for the neighborhood (a timing issue) and contamination from the old gas station, etc. However, if the other developer does not go ahead, Cornerstone may want to do it. Mr. Kerrigan noted the next steps are environmental study, refining of plans by DRJ, working on the development agreement, and the land use approval process. Mayor Maxwell said he would like Zoning and Planning to see the plans. Mr. Kerrigan will check if that can be worked out. General Consensus was Cornerstone's plan is going in the right direction. Depot Reorganization Mr. Strachota said things which led to the reorganization were Ms. Taber asking to step down as director and be only a coffee house manager, the Depot Board wanting the coffee house to break even on its own income rather than relying on grants, and discussions between Ms. Taber and Royal Cuisine (the Hopkins School District food service operations) about how they could interface. Key points of the proposed reorganization are that Royal Cuisine would hire and supervise the manager and counter staff, supply food concessions and take care of equipment (all costs being charged to the Depot board monthly). The Board would oversee the Teen Center and be advisory to the Coffee House. The city would still maintain the building and grounds, take care of budgets and lease agreements, and be responsible for the Teen Coordinator. The Depot supervisor's position will be posted by the school district in December. The partners and Depot Board could have an agreement done by next week. A retreat with board members and partners is planned for spring to develop policy between the parties and to develop an infrastructure on paper. November 30, 2004 Page 4 Answering Council questions, Ms. Taber said the reorganization would not affect the ability to get grants. Mr. Strachota said present grants stated personnel costs for the teen center coordinator only. This is not a subleasing of the Depot but a contractual services agreement, which the city attorney will look over. Mr. Weber said contractors with the school district would take care of equipment repairs. Finances will stay with the city as accounting is part of the skills business students learn at the Depot. Ms. Lee noted the reorganization was all the Depot could handle right now; Ms. Taber added students are concerned if this does not work they don't want to have to change the financing back. Mr. Weber said the 8:00-3:00 clientele is what needs to be worked on. Royal Cuisine is about to go online for furnishing lunches, this could also apply to the Depot. He thinks personnel will stay about the same even though they become school employees. Ms. Taber said she will need to reapply for the posted position. Ms. Lee noted the Teen Board will have some input into the Depot, though Royal Cuisine will make final decisions. Ms. Rao said students were apprehensive at first, but are now comfortable they will have enough input. Mr. Weber said while the agreement is for one year, he feels the school is making a continuing commitment. Ms. Lee added the school district has lots invested in the Levy for Lease and wants students to have a place to learn business, etc. Mayor Maxwell said he is concerned about issues relating to enterprise by the school district. Mr. Weber said he has been getting endorsement from local businesses. They are doing the senior center meals as the old provider quit and no one else could be found so they were asked to take over. Mr. Strachota said it is part of the educational component for business students and chef students. Ms. Johnson noted part of the enterprise debate is the loss of tax dollars from private business. Mr. Weber noted the students are able to get better meals at school because of the extra funds he earns. Mr. Strachota said when the agreement is drafted, it will go through the city attorney, then before the Council and school board. Ms. Lee noted that may be in January due to the holidays. Ms. Rao said the Teen Center will have a `battle of the bands' for New Year's Eve. General Consensus was to go ahead with the plan. Water Service Replacement Policy Mr. Stadler says it is discouraging when a newly redone street needs to be reopened because of utility pipe problems. Therefore, he has come up with a proposed policy which would apply only during a street improvement project. He suggests that at the request of the property owner, the city would pay a portion of the cost to replace water service to the curb box. The owner's share would be added to the assessment. Estimated total cost is $600-800/service. He further suggests the city televise each sewer service and provide results to homeowners. If it is failing, the owner would be required to replace the service as part of the construction project, with the cost again added to the assessment amount. Total cost to the city for 2005 would be $18,000 for televising (from the sewer fund) and $30-40,000 based on 100 water service replacements (a generous estimate) which would come from the Water Fund. He feels not many would choose to redo their sewers; the television scan would allow the city to make them replace a failing system. If approved the new language would go in Legislative Policy 8-B, Roadway Improvements. The goal is to insure longevity of redone streets. November 30, 2004 Page 5 Mr. Thompson suggested that the City pay one-fourth of the cost since the owner would already be saving a lot because the street is already open. Mr. Stadler felt that amount might not be enough encouragement. He noted the work would be done on a city bid, the best price for the owner. Mayor Maxwell asked how many streets have been redug. Mr. Stadler said he cannot think of a redone street that has not had at least a couple. Mr. Genellie said he feels it should be a one time experiment for the present, not a policy change. General discussion followed. General Consensus. The water service plan should be tried with the city paying one-third. The city could offer the television service with the owner paying. The city attorney should check if this can be a trial experiment. 2005 $udget Ms. Harkess said Hennepin County will be charging $86,000, not $83,000. The budget differences were due to the appraiser being eliminated mid-2004 and the assessor in 2003. The city saves about $75,000 by having the County do the assessing. The municipal building difference was due to line items and one new employee. Mayor Maxwell said he would like to wait a year on the employee. Mr. Stadler said he will be unable to do even baseline maintenance without another employee. Further, he was hoping to start preventive maintenance with that person. He feels it is important to start training someone. Ms. Johnson suggested budgeting for a June start, and reviewing it then. General discussion followed. General Consensus was to budget the position starting in June, but to review it then to see if it should be implemented. Mr. Genellie noted the fire department eliminated positions in the 2004 budget; this is the same number but $3600 more for increases in salary and call rates. Mayor Maxwell asked for more information on the $3500 maintenance costs and $2800 contractual services, asking if that would be included in Mr. Stadler's new person. Mr. Stadler said he has 10 seasonal employees for the department as a whole; maintenance increase was for supplies. Mr. Brausen said Council needs to remind itself how many people the department lost during budget cuts. Ms. Harkess said Zoning & Planning is trying to get training to prior levels. A question was raised about 2004 costs for contractual services. Staff will check to determine if at least part of the $10,000 cost was apass-through as there is also a $6,000 refund. Mayor Maxwell wondered why there wasn't higher income in 2004 for fire inspections. He noted he was charged $45 for each suite in his building for inspection. Ms. Harkess noted the program wasn't in effect till mid-year. Ms. Harkess noted that the tax levy was reduced by $49,640, the amount of the contingency reduction. This means the average homeowner will see an increase of under $10. The Truth-in-Taxation public hearing will be December 13 at 6:30 p.m., and will be televised. Notices have been published in the paper, newsletter and website. She received no calls after the tax notices went out. Mayor Maxwell said most comments he has heard have been happy. November 30, 2004 Page 6 Mr. Thompson asked that Ms. Harkess supply the total tax bases for 2003 and 2004, as well as the proposed 2005 base. He would like it broken down for commercial, residential, etc. He would like to know how much the tax base increased over last year by expansion (TIF and new construction) rather than market value increase. He added he feels Ms. Harkess has done an outstanding job on the budget. Other Ms. Johnson said she has heard the activity center does not allow outside caterers now that they contract with Royal Cuisine. She would like that checked into. Mr. Rowan noted he would miss both the January 18 and Feb. 1 meetings. Mayor Maxwell asked for an update on employee response for the city manager interviews. Mr. Genellie said about 20 have signed up, which surprised and pleased him. He thinks it can be done by departments. He still has to figure with Mr. Brimeyer how to debrief them so the Council gets the information. Names suggested for Group 6 were Bob Miller, Mary Hatcher, HBCA representative (Mr. Cooley if possible), Herb Gibbs, Fran Hesch. The reception will be at 6:00. All six finalists have agreed to come. Ms. Johnson moved adjournment. Mr. Thompson seconded. On a 5-0 vote, the meeting adjourned at 10:15 p.m. Kasey Kester, Secretary ATTEST: Eugen well, Mayor _~, ~. ,.. _.,._...~M..«;-,,.. COUNCIL MEMBERS: