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09-07-04A regular meeting of the Hopkins City Council was held on September 7, 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, Harkess, N. Anderson, Ray Vogtman, and City Attorney Jerry Steiner. I. CALL TO ORDER Mayor Maxwell called the meeting to order at 7:40 p.m. II. OPEN AGENDA -PUBLIC COMMENTS AND CONCERNS There were none. III. REPORTS -COMMITTEES/COMMISSIONS 1. Zoning and Planning Commission Virgil Arness reported that the Zoning and Planning Commission met on August 31, 2004. The Commission discussed a CUP for a sign at the United Methodist Church that will replace the existing sign. The Commission recommended approval. The Parker Office building was discussed. Several residents of the neighborhood attended the Zoning and Planning Commission meeting. Concerns were expressed about the screening and parking lot lights. The Commission recommended approval of the plan and CUP with conditions. The Commission discussed the zoning ordinance amendment that would allow a sculpture to be placed at 15 - 8t'' Ave N. They recommended approval, but not at the site that was proposed. They discussed the site plan for Meadow Creek garages, the site plan for Starbucks Coffee, and the Starbucks Coffee drive-thru. The manager of Caribou Coffee attended and brought up concerns about parking and traffic. The,Commission recommended approval of all three items. IV. CONSENT AGENDA 1. Minutes of August 17, 2004 City Council Meeting 2. Minutes of August 24, 2004 City Council Work Session 3. Minutes of August 31, 2004 City Council Work Session 4. Ratify Prior Month's Disbursements 5. Miscellaneous License Applications 6. Approve Appointment to Park Board, Elizabeth Dorn (Memo) 7. Resolution 2004-72, Ordering public Hearing for 2004 Miscellaneous Assessments (CR2004-149) 8. Dutch Elm Disease Stump Removal and Reforestation Funding (CR2004- r 139) September 7, 2004 City Council Meeting Minutes Page 1 9. Resolution Endorsing Creation of Alternative Energy Lab at the Depot Coffee House (CR2004-136) 10. Second Reading for Ordinance 2004-927 (Memo) 11. Change Benefit Amount for Fire Department Relief Association (CR2004- 137) Ray Vogtman explained that because of the catastrophic losses of Dutch elm trees this year, over 420, the department is experiencing greater expenses than usual. Staff is picking up brush for residents and so far have gotten about 50% of the resident pick-ups and less than that amount of the City's boulevard removals. The stumps remain. Additional funds are needed to contract for their removal. They should be removed before snow season. Other funds requested are for replacing 100 trees. They should be planted at the end of October. Mr. Vogtman said that he would like to hire one contractor to do the stump removal. City staff will work with the employees of the nursery to plant the trees. They will plant several varieties. Jon Kent, Chair of the Depot Coffee House Board, and Dan Trockman, High School Teacher, explained the Alternative Energy Lab at the Depot Coffee House. They are currently writing a grant request for the planning stage. A second series of grants would be written to purchase the equipment and supplies to implement alternative sources at the Depot Coffee House. The information and finished products would be available to the general public for inspection. Alternative energy principals would be taught in the classroom. Practical work would be done at the Depot Coffee House. Questions concerning the Zoning regulations and if the use would be allowed at the Depot Coffee House came up. City Planner Nancy Anderson said that they would have to see a drawing and the specifications for the project before they could answer the question. Council Member Brausen moved and Council Member Thompson 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. PUBLIC HEARING 1. Revenue Bond Hearing for Hopkins Mainstreet School for the Arts (CR2004- 132) Jim Kerrigan, Director of Planning and Development, stated that the applicant requested a continuance to October 5, 2004 on this item. Council Member Rowan moved and Council Member Johnson seconded a motion to continue the item to the October 5t'' City Council Meeting. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Thompson, aye; Council September 7, 2004 City Council Meeting Minutes Page 2 Member Rowan, aye; Council Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously. VII. OLD BUSINESS 1. Second Reading of Ordinance 2004-929, Amending Section 710 and 715 of the Hopkins City Code (Memo) The City is requiring the replacement of water meters with meters that can read both high and low flows and that can be read by radio. The City is responsible for one- inch diameter or smaller meters. Townhomes and condominiums are also single- family homes that are or can be owner occupied. Because they require a much larger meter, the City will credit $466.00, which is equal to the cost of a one-inch meter, to any townhome or condominium association that replaces an old meter. The City will credit 5190, which is equal to the cost of a transponder fora 1-inch meter, to any townhome or condominium association that installs a transponder on a meter that is capable of accurately measuring high and low flows, but not capable of being read by radio. When the association provides proof of the meter replacement or transponder installation, the credit will be issued in the form of a check. The City will waive the cost of the permit to replace the meters. Also, the City has made arrangements with Badger for reduced costs on the meters. Patricia Butler, General Manager Westbrooke Patio Homes, thanked the Council for hearing their concerns and for acting on those concerns. Council Member Thompson moved and Council Member Brausen seconded a motion to approve Ordinance 2004-929 for second reading and order published and adopt Resolution 2004-76 establishing a policy for issuing credits for meter replacement. 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. VIII. NEW BUSINESS 1. CUP, United Methodist Church Sign (CR2004-141) The United Methodist Church on Highway 7 is proposing to construct a new sign. The sign will have space for changeable copy. The sign will be a monument sign and will be located on the south side of the site. All signs in institutional districts are required to have a conditional use permit. The Zoning and Planning Commission recommended approval. Nancy Anderson reviewed the site plan and specifications of the sign. Council Member Johnson moved and Council Member Rowan seconded a motion to adopt Resolution 2004-64, approving a conditional use permit to erect a sign at the September 7, 2004 City Council Meeting Minutes Page 3 United Methodist Church. 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. Site Plan Review, Parker Office Building (CR2004-142) Nancy Anderson, City Planner, stated that the applicant has asked to continue this item and the next item to the September 21, 2004 City Council Meeting. Council Member Thompson moved and Council Member Johnson seconded a motion to continue the site plan review and the CUP for the Parker Office Building to the September 21St meeting. 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, eye. The motion carried unanimously. 3. CUP, Parker Office Building (CR2004-143) Action taken above. 4. Zoning Ordinance Amendments, Sculptures (CR2004-144) Dr Pete L'Allier has applied for an ordinance amendment to erect a sculpture in the front of his office at 15 8th Ave N. The proposed sculpture is twenty-two feet high and six feet wide. The sculpture would be lit from the bottom. The use is not currently allowed in the Zoning Ordinances. The Zoning and Planning Commission recommended approval, but not on the site as proposed. Staff recommended denial. Council Members discussed the use of art in the business districts. Several of the Council Members expressed their desire to incorporate the use of art in the business area and would like to see the use of art allowed in the Zoning Ordinances, but were not sure that this amendment would be the best way to do that. They agreed that they would like more time to study the issue and write an ordinance creating guidelines for future uses of art. At the same time, they were reluctant to let this first opportunity pass. City Attorney Jerry Steiner suggested that it was possible to change the ordinance and direct staff to draft a moratorium on the installation of sculptures to give the Council time to study the issue. The applicant, Dr. Pete L'Allier, came forward to answer questions. Dr. L'Allier stated that the form of the sculpture is the world symbol for wellness and felt that it would be appropriate to place in front of his clinic. He would prefer to see the sculpture in Hopkins rather than at his other clinic in Mound, but wants the sculpture to be viewed September 7, 2004 City Council Meeting Minutes Page 4 as an asset by the City of Hopkins. If there were to be complaints about the sculpture, he would take it down. Dr. L'Allier said that he would like to have the sculpture installed before snow falls. If Hopkins doesn't decide in time for him to do that, he would install the sculpture in Mound. Dr. L'Allier agreed to continue the item for review. Council Member Rowan moved and Council Member Thompson seconded a motion to adopt Resolution 2004-67, approving Ordinance 2004-932, which would amend the zoning ordinance to allow sculptures in the B-2 zoning district for first reading and direct staff to begin the process of placing a moratorium on the use of sculptures in the district. 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, nay. The motion carried. 5. Site Plan Review, Meadow Creek Garages (CR2004-145) Meadow Creek is proposing to construct new garages. There are 536 condos in the association and 28 garage buildings with a total of 128 garages. They have a total of 1062 parking spaces in nine separate lots. They are proposing to begin with the addition of new garages in lot 4. The lot serves 88 units and has 24 garages. They will add 38 new garage spaces and reconfigure 126 surface spaces. This would be the first parking lot to offer the new garages. If there is a demand for the garages, other lots will be considered for additional garages and each lot will go through the site plan review. Nancy Anderson reviewed the site plan. Doug Strandness, Manager, came forward and answered questions. The slabs will have a noticeable slope to drain the area. A steel wall will separate each unit. The exterior will be fiberboard. Openers are optional. Council Member Rowan moved and Council Member Johnson seconded a motion to adopt Resolution 2004-68, approving the construction of garages at Lot 4, Meadow Creek Condos. 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. 6. Approve PUD Agreement, Former Hopkins House Hotel (CR2004-148) Nancy Anderson explained that a corrected PUD agreement had been placed on the Council's table prior to the meeting. Ms. Anderson stated that the agreement would authorize staff to make minor changes that do not impact the overall intent of the agreement. As part of the rezoning to PUD, a PUD agreement has been drafted. The agreement outlines the terms and conditions for this specific development. If the development does not tak place, the site will revert to the base zoning of B-3, General Business. September 7, 2004 City Council Meeting Minutes Page 5 Council discussed the number of units, 48 condo units and 6 townhomes. A discussion of the cost per square foot was held. The agreement stated that the units must be sold at 5200 per square foot. Council Member Thompson questioned why that figure was there. Staff answered that they thought that the Council had expressed a concern about the quality of the units that would be sold. Council Member Rowan moved and Council Member Brausen seconded a motion to approve a PUD agreement to redevelop the former Hopkins House Hotel into 48 condo units and six townhomes. 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. 7. Site Plan Review, Starbucks Coffee (CR2004-146) Mathwig Development is proposing to construct a Starbucks Coffee on the retail pad south of the former Hopkins House site. This site was re-platted and a B-3 pad was separated from the condo/townhouse site. The former Hopkins House site was approved for redevelopment to condo and townhomes in August this year. The applicant has also requested a CUP for adrive-thru. The Zoning and Planning Commission recommended approval. Nancy Anderson reviewed the site plan. Ms. Anderson stated that the traffic study that was done, was done for a more intense use. The Council discussed parking and traffic. Council Member Thompson moved and Council Member Johnson seconded a motion to adopt Resolution 2004-69, approving •the construction of a building that will be used for a Starbucks Coffee. 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, nay. The motion carried. 8. CUP, Drive-thru for Starbucks (CR2004-147) Mathwig Development is proposing to construct a Starbucks Coffee on the retail pad south of the former Hopkins House site. The applicant is applying for a conditional use permit to construct adrive-thru for Starbucks Coffee. Council Members discussed the former traffic study for the site. Jane Bardwell, General Manager for Caribou Coffee came forward. Ms. Bradwell stated that the drive-thru would require more employees; therefore they will need more parking. Ms. Bardwell explained that adrive-thru would bring 75% of their business between the hours of 6:30 and 10:00 a.m. Traffic will be concentrated at that time of day. September 7, 2004 City Council Meeting Minutes Page 6 Council Members discussed the adequacy of the stacking area for the drive-thru. Mr. Kerrigan suggested that the Council review the situation in about six months. Council Member Brausen stated that he would prefer that Mr. Benshoof look at the current plans and give the City a written report of the traffic and stacking accommodations. Jerry Steiner, City Attorney, stated that the City could give approval and reserve the right to revoke the CUP if the traffic warrants doing so. Council Member Brausen moved and Council Member Rowan seconded a motion to adopt Resolution 2004-70, approving a conditional use permit for adrive-through at Starbucks Coffee with the condition that Benshoof and Associates reviews the current site plan and reports to staff on whether or not the stacking, backing out from the townhouses, and parking on Robinwood will flow properly. 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, nay. The motion carried. 9. Approve Preliminary Levy (CR2004-150) The truth in taxation process required the City to certify a proposed levy and set public hearing dates. A proposed general fund budget has been established. Adoption of the actual budget will occur in December 2004 and the levy cannot exceed the approved proposed levy. Christine Harkess, Finance Director, reviewed the proposed levy. The proposed tax levy for 2004 payable in 2005 is 58,198,136, an increase of 6.41 %. Because of the decertification of three tax increment districts, the City's tax base increased 23.14%. It is expected that for the average homeowner, the tax will not increase unless there is a significant increase in the value of the home. Council Member Johnson moved and Council Member Brausen seconded a motion to adopt Resolution 2004-73, Approving Proposed 2004 Tax Levy Collectible in 2005, Proposed 2005 General Fund Budget, and Setting Public Hearing Dates; and adopt Resolution 2004-75, Approving a Decrease in the 2005 Tax Levy Requirement for the June 1, 2003 HRA Leased Revenue Bonds. 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. September 7, 2004 City Council Meeting Minutes Page 7 10. First Reading of Ordinance 2004-931, Amending Section 703 of the City Code (Deferred Assessments (CR2004-138) Section 703 allows the City to defer special assessments for up to ten years. This provision was put into place in 1990. It has been used a number of times to assist elderly homeowners with the cost of assessment. Historically, the assessments have been paid prior to the ten-year expiration. Recently, staff has been approached by a resident whose ten-year deferment is expiring. The original assessment plus interest is now due. The result of the deferment has been to increase the cost to the homeowner. Minnesota statute allows the City to defer special assessments for persons 65 and older or who are retired by virtue of a permanent and total disability until on of the following occurs: 1) the death of the owner, provided that the spouse is otherwise not eligible for the benefit; 2) the sale, transfer or subdivision of the property or any part thereof; 3) if the property should loose homestead designation; or 4) if for any reason the taxing authority deferring the payments shall determine that there would be no hardship to require the immediate or partial payment. Ordinance 2004-931 would remove the ten-year limit and adopt the above reasons for ending the deferment. Council Member Rowan moved and Council Member Johnson seconded a motion to adopt Ordinance 2004-931 for first reading. 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. 1 1. Approve 2004/2005 HMEA Contract (CR2004-135) The contract calls fora 2% wage increase effective January 1, 2004, a 1 % wage increase effective June 27, 2004, and a 2% wage increase effective January 1, 2005. The contract also provides for an increase in the City's contribution for insurance of 520.00 per month for 2004. The increase will apply to all employees in the unit. Employees hired after August 1, 2004 who have single insurance, will receive single health, dental, and life insurance at a cost not to exceed 5500.00 in 2005, there will be a 540.00 per month increase for employees with family, single plus one, or Single plus children group health insurance and a 515.00 per month increase for employees with single coverage. Employees will also receive one additional vacation day per year. The total cost of the wage and benefit increase is within the budget. Council Member Brausen moved and Council Member Rowan seconded a motion to approve the 2004-2005 Contract for HMEA retroactive to January 1, 2004. A poll of September 7, 2004 City Council Meeting Minutes Page 8 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. IX. ADJOURNMENT There being no further business, Council Member~rfioved and Council Member , -----~ seconded a motion to adjourn the meeting. The meeting was adjourned by unanimous consent at p.m. Respectfully Submitte Oberrp~rt"~r, City Clerk ATTEST: `~ iii Eugene . Ma ell, Mayor September 7, 2004 City Council Meeting Minutes Page 9