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11-02-04A regular meeting of the Hopkins City Council was held on November 2, 2004, in the Council Chambers of the Hopkins City Hall. Present were Mayor Maxwell and Council Members Brausen, Thompson, Johnson, and Rowan. Also, present were staff members Genellie, Stadler, Kerrigan, Anderson, and City Attorney Jerry Steiner. I. CALL TO ORDER Mayor Maxwell called the meeting to order at 8:00 p.m. II. OPEN AGENDA -PUBLIC COMMENTS AND CONCERNS III. REPORTS -COMMITTEES/COMMISSIONS 1. Zoning and Planning Commission Mary Hatcher, Vice Chair of the Commission, reported that the Commission discussed electronically changeable price signs on posts for businesses in Hopkins. The members of the Commission approved of the change. The Commission also discussed the concept review for the Peoples Credit Union and requested comments from the Council members. Mayor Maxwell said there would be a joint meeting of the City Council and the Zoning and Planning Commission on at 5:30 pm on November 30. IV. CONSENT AGENDA 1. Minutes of October 19, 2004 City Council Meeting 2. Minutes of October 26, 2004 City Council Work Session 3. Ratify Prior Month's Disbursements 4. Approve 3.2 Off-Sale Beer License for R&M Corp, dba Blake Grocery (CR2004-182) 5. Award Bid for 2005 Hop-A-Ride Service (CR2004-178) 6. Second Reading, Ord 2004-935 Extending the Moratorium on New Licenses for Transient Merchants (Memo) 7. Resolution in Support of Environmental Financial Grant Application (CR2004-179) Council member Johnson requested that the minutes of the Council Work Session of October 26 be corrected to read "Ms." Anderson of Minnetonka, rather than "Mr." Anderson. November 2, 2004 City Council Meeting Minutes Page 1 .. _~ .. ~ ~ _ ~ - ., _, ~ . ~ ~ ,.. ~ - _. , ... _ ~ ~ ._ ~- ~ , ,a , - ~ _. m,.~ ~_~r~,,~~,- Eric Hansen of Pinnacle Engineering appeared to ask the Council to support the • Environmental Financial Grant Application to Hennepin County by the Hopkins School District. This grant would fund a feasibility study regarding building a school bus depot on a former landfill. This would not require any funding from the City; it would be funded entirely by the grant. Council Member Thompson 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 Thompson, aye; Council Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously. V. NEW BUSINESS 1. HCA Agreement (CR2004-175) At the April 27, 2004 Worksession, the HCA presented a revenue sharing proposal to the Council. The Council was in favor of the proposal and directed staff to work with HCA, Inc. to develop an agreement that would meet the objectives presented in the HCA proposal. The original Cooperative Agreement between HCA and the City of Hopkins was rewritten to include the objectives. The City Attorney drafted the agreement. The agreement has been approved by HCA, Inc. The agreement will improve the revenue potential of the Arts Center by increasing the usage fees, sharing 10% of specific memberships and identifies a minimum of 55,000 net income to the Arts Center from fundraising. Jay Strachota reviewed the agreement. Council Member Johnson moved and Council Member Brausen seconded a motion to approve the Hopkins Center for the Arts Inc. Agreement and direct staff to execute the agreement with the Hopkins Center for the Arts, Inc. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Thompson, aye; Council Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously. 2. Concept Review, Peoples Credit Union (CR2004-177) Peoples Credit Union is proposing to construct a new credit union on the vacant lot on the north side of 5th St, the former parking lot area for the former Hopkins House. The lot is currently zoned R-4, Medium High Density Multiple Family and will need a rezoning to B-3 for this development. Peoples Credit Union is presently on the north side of the building that is occupied by Caribou Coffee. The Comprehensive Plan will also have to be amended from High Density Residential to November 2, 2004 City Council Meeting Minutes Page 2 ,. . ,... ~~.,~.::.a..„w.~,.. Commercial. The Zoning and Planning Commission reviewed the concept and were favorable to it. Nancy Anderson reviewed the plans. She stated that a neighborhood meeting was held, but no one came to the meeting. Rosemarie Kuretich, President of the Peoples Credit Union, appeared and stated they are growing and planning for the future. Jack Boarman, the architect for the project, reviewed the site plan with the Council. There was discussion among the Council members as to whether it would be more beneficial to the City if the property remained zoned for residential or rezoned for commercial. No action was taken. 3. Ordinance Amendment, Changeable Signs (CR2004-1 ~6) Holiday Station has applied for a zoning amendment to allow electronic price signs. Automatic changing signs are allowed in the B-3 and industrial districts as a wall sign. Time and temperature signs can be a pylon or a monument sign. Currently, gas stations have price signs that are manually changed. Holiday would like to have their price signs be changed electronically rather than manually. The signs would not blink or scroll. The amendment would apply to all uses in the B-3 that could advertise a price. The Zoning and Planning Commission recommended approval. Nancy Anderson reviewed the sign plan. Keith Yokom, of Holiday Stations, appeared before the Council. He showed pictures of the signs being proposed that are currently in use. The proposed signs are smaller than the existing signs. Council Member Brausen moved and Council Member Thompson seconded a motion to adopt Resolution 2004-83, approving Ordinance 2004-936, amending the zoning ordinance to allow electronic price signs. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Thompson, aye; Council Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously. 4. Approve Increase in Water Utility and Refuse Rate Increases (CR2004- 181) The present water rate of 51.20 per 1000 gallons used, has been in effect since 2000. Operating costs have increased from 5713,000 to an estimated 5725,100 November 2, 2004 City Council Meeting Minutes Page 3 while revenues have decreased from $1,174,900 to an estimated $900,000. In the next five years, the water fund will incur capital costs of approximately $770,000. The increase in the water revenue will be used to pay for operations, interest on revenue bonds and maintain a minimum working capital balance. The present refuse rates have been in effect since 1995. Currently, the rates do not fully fund the operation of the refuse fund that includes bulk collection, yard waste and leaf collection, brush collection, recycling and disposal collections. Operating costs have increased from $538,800 to $576,600. The fund has operated at a loss in four of the last eight years. Even with the proposed rate increase, a budget deficit is expected for 2005. Mayor Maxwell suggested that when the notice of the rate increase is sent to residents, information be included about the various sizes of refuse containers available. He also suggested that the information include how long it has been since the last increase. Council Member Rowan moved and Council Member Brausen seconded a motion to adopt Resolution 2004-85 that increases the water utility and refuse rates effective on billings rendered from and after January 1, 2005. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Thompson, aye; Council Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously. 5. Approve Increase in Parking Permit Fees (CR2004-180) Current ramp and municipal lot parking permit rates are $2 per day, $15 per month, $40 per quarter, and $140 per year. Staff is proposing an increase to $3 per day, $17 per month, $43 per quarter, and $150 per year. Expenses have increased from S 1 14,600 in 1997 to $148,000 in 2004 while revenues have increased from $49,000 in 1997 to $100,000 in 2004. The revenues have not kept up with the increasing costs of enforcement and maintenance. The source for the maintenance of the parking facilities is permit fees, court fines, and interest. More resources will be needed to adequately maintain these facilities. Council Member Johnson moved and Council Member Brausen seconded a motion to adopt Resolution 2004-86, increasing the parking permit fees as follows -daily fee from $2 to $3; monthly fee from $15 to $17; quarterly fee from $40 to $43; and the annual fee from $140 to $150 effective January 1, 2005. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Thompson, aye; Council Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously. November 2, 2004 City Council Meeting Minutes Page 4 VIII. ADJOURNMENT There being no further business, Council Member Rowan moved and Council Member Thompson seconded a motion to adjourn the meeting. The meeting was adjourned by unanimous consent at 9:18 p.m. November 2, 2004 City Council Meeting Minutes Page 5 Respectfully Submitted, _~ Bish Johnso dministrative Assistant ATTEST: Eug a .Maxwell, Mayor November 2, 2004 City Council Meating Minutes Page 6