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10-19-04A regular meeting of the Hopkins City Council was held on October 19, 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, Kerrigan, Anderson, Harkess, and City Attorney Jerry Steiner. CALL TO ORDER Mayor Maxwell called the meeting to order at 7:32 p.m. II. OPEN AGENDA -PUBLIC COMMENTS AND CONCERNS There were none. III. REPORTS -COMMITTEES/COMMISSIONS 1. Chemical Health Commission Three or four minors were caught with alcohol at the Hopkins Homecoming Dance. One DWI was issued. Michael is working on organizing the Town Hall meeting. The meeting will be held on Tuesday, February 15, 2005. The guest speaker will be David Walsh, author of "The Adolescent Brain". The meeting will either be held at the Center for the Arts or at Eisenhower. The Commission discussed the information on the Web site and agreed that it looks good. The Commission reviewed alcohol and tobacco crime stats for June and July. They agreed that they need to be reviewed more closely for further discussion. IV. CONSENT AGENDA 1. Minutes of October 5, 2004 City Council Meeting 2. Minutes of October 12, 2004 City Council Work Session 3. Approve Snow Storage Site Lease, SuperValu (CR2004-172) 4. Approce Easement and Construction Permit; CSAH 73/5 Intersection Improvement Project (CR2004-170) 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 Thompson, aye; Council Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously. October 19, 2004 City Council Meeting Minutes Page 1 V. OLD BUSINESS 1. EAW Office Project, Advance Development, LLC (CR2004-173) James Parker, Advance Development, LLC, has filed an application for a site plan review and conditional use permit to construct a 10-unit office/condominium project on property directly south of the Hopkins Care Facility on the west side of Highway 169. A petition, dated September 10, 2004, was submitted to the Minnesota Environmental Quality Board (EQB) requesting an Environmental Assessment Worksheet (EAW) to be completed for this project. The petition was forwarded to the City by the EQB. The City Council discussed the project and approved Resolution 2004-77, establishing a schedule for consideration of the EAW request at the September 21St meeting. The City hired consultant Chris Meehan of Wenck Associates, Inc., to review all of the information submitted by the EAW petitioners. Mr. Meehan's opinion is that the petitioners have not provided any evidence that the project might have the potential for significant environmental effects. The floodplain fill, wetland fill, and surface water runoff issues are not evidence that the project might have the potential for significant environmental effects. Mr. Meehan's opinion is that no EAW is required. Mr. Meehan appeared before the Council and confirmed the results of his report and answered the Council Members' questions. Mr. Meehan also stated that the land issues are flood plane and wetland, Mayor Maxwell asked what conditions would require the EAW. Mr. Meehan answered that the condition would have to be something that cannot be remedied or something that would have significant impact on adjacent properties. The issues that are being brought up by the project will be mitigated on site. Jim Kerrigan, Director of Planning and Economic Development, stated that the project is very small and that the only part in the flood plain is the driveway. The applicant will still have to come back to the Council for site plan review and for a conditional use permit. The Nine Mile Cove Association will have an opportunity to address other issues at that time. Mr. Meehan stated that the Nine Mile Watershed District will require wetland mitigation with their permit process. The District will also require a grading permit and will address the water quality, water runoff and the flood plane fill in that process. Council Member Rowan asked if the Watershed District will deal with the issues that have been identified. Mr. Meehan responded that they will deal with those issues. Mayor Maxwell asked what the ratio of mitigation is. Mr. Meehan responded that the ratio is two to one. One acre of fill would require two acres of mitigation. Typically, the mitigation stays on site. David Rosedahl, 859 Nine Mile Cove, and Tom Oberly, 975 Nine Mile Cove came forward. Mr, Rosedahl stated that he and Mr. Oberly represent the petitioners from Nine October 19, 2004 City Council Meeting Minutes Page 2 Mile Cove and the Hopkins Care Center. Mr. Rosendahl stated that they disagree that the project will not require an EAW and feel that a decision to deny the petition for an EAW would be inappropriate. The EAW would define the impact. Until an EAW is done, the impact is unknown. The standard to be met under the statute is that there "may be" potential for significant effects. The petitioners believe that this is a very low standard. The City need only find that there "may be" significant effects. Mr. Rosedahl said that the MN Court of Appeals has rejected the approach that the effects would be mitigated with the watershed district permit process. The Court declared that the government agency, by deferring the issue to later permitting and monitoring decisions had abandoned its duties. Mr. Rosedahl stated that the property was used to mitigate another property in Hopkins. Its future use has been restricted by covenant as part of that agreed upon resolution. Other reviews for the property determined that the environmental factors were so sever that the projects couldn't be accomplished. Tom Oberly reviewed the history of the property and stated that the City should take the responsibility for the land and order an EAW. Mr. Rosedahl stated that the Watershed District would address specific issues, but would not address issues like traffic, safety, and noise. The nature of the property and the potential for significant impacts should require and EAW. Mr. Kerrigan stated that the City Council asked the parties to supply information that would support an EAW. The letter did not identify traffic or noise issues. City Attorney Jerry Steiner stated that the Council's decision was to determine whether a threshold has been shown. The threshold would be if that project has the potential for significant environmental effects. It was his opinion that the City Council had not been shown anything different from any other project that was adjacent to a flood plain or wetland. Those are normal environmental effects; they are not significant. It's up to the petitioners to demonstrate that there is something beyond that which passes the threshold of significant environmental effects. Mr. Steiner gave examples of projects that would significantly effect the environment. None of that has been shown here. The second point is that, even if the City would require an EAW, and Mr. Parker went through that process, he would still have to go through the watershed process for filling in wetland or flood plain. It's a separate process. It is dealt with separately. Mr. Parker will have to demonstrate that he has met all legal criteria applicable to those two issues. Any approvals the City gives will have to be conditional on him doing that. Wetland and flood plain issues will be dealt with in that process. The City is not abdicating some responsibility if the Council decides that the City will not require an EAW. The decision would be that the threshold for an EAW has not been met. Mr. Rosedahl responded that they believe that the statute provides that an EAW is warranted if there may be substantial effects; the threshold is that there may be substantial impact. October 19, 2004 City Council Meeting Minutes Page 3 Council Member Johnson thanked the neighborhood for their input. Ms. Johnson stated that the Council has been educated on the EAW process. Ms. Johnson also stated that she believes that the City has demonstrated due diligence by hiring the consultant, Wenck, Inc. Council Member Rowan stated that the Council has heard that the threshold has not been met. The other side maintains that it may meet the threshold because the threshold is ambiguous. We need at least a suggestion of what the effect might be, not just that there might be an effect. Staff stated that the denial of the EAW does not approve the project. The project will be on the November 2"d agenda for site plan review and approval of a CUP. There are some significant issues with the project. The Council has to be comfortable with other issues before they approve the project. Council Member Johnson moved and Council Member Thompson seconded a motion to adopt Resolution 2004-82, determining that an Environmental Assessment Worksheet (EAW) is not required for construction of an office project by Advance Development, LLC. 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. VII. NEW BUSINESS 1. Ordinance Extending Moratorium for Transient Merchant Licenses (CR2004- 169) The City Council adopted a moratorium on the issuance of transient merchant licenses in April. The City of Hopkins has an ordinance, Section 1 145 of the City Code, which regulates peddlers, solicitors, and transient merchants. Staff believes that the current ordinance needs significant revision. One of the major issues that the current ordinance does not address is where transient merchants are allowed. Currently, any private property may host a transient merchant. Council Member Brausen moved and Council Member Rowan seconded a motion to approve Ordinance 2004-935, extending the term of the moratorium on the issuance of any new licenses for transient merchants. 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. Quarterly Financial Report, (Memo) Christine Harkess, Finance Director, gave the third quarter financial report. Revenues are down about 3 million due to the bond sales last year. After eliminating the bond sales and no longer being the fiscal agent for the Drug Task Force, revenues are actually up. October 19, 2004 City Council Meeting Minutes Page 4 Expenditures are up over last year, due mostly to increased spending in capital for the facilities projects. The majority of the debt service payments have been made for the year, resulting in a high budget to actual percentage. General fund revenues are up slightly. Property tax revenues increased by 8% over 2004. Ms. Harkess reviewed the Internal Service funds and the Enterprise funds. The City of Hopkins is maintaining its current financial position. No action was taken. Council Member Johnson announced that the Hopkins Raspberry Festival cook off will be featured on the Food Channel on November 8th and 14th. Mr. Genellie will try to have the information added to the City Newsletter. VIII. ADJOURNMENT There being no further business, Council Member Brausen moved and Council Member Johnson seconded a motion to adjourn the meeting. The meeting was adjourned by unanimous consent at 8:55 p.m. Respectfully Submitted rry Oberpf~;~ier, City Clerk COUNCLLII~IEMBERS ATTEST: Eugene .Maxwell, Mayor October 19, 2004 City Council Meeting Minutes Page 5