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06-13-06 WSJune 13, 2006 Page 1 MINUTES CITY COUNCIL WORK SESSION -June 13, 2006 A work session of the Hopkins City Council was called to order by Mayor Pro Tem Jay Thompson at 6:30 p.m. on June 13, 2006, at the Hopkins City Hall. Council members Bruce Rowan, Kristi Halverson and Cheryl Youakim were present. City personnel present were City Manager Rick Getschow, Public Works Director Steve Stadler and Finance Director Christine Harkess. Hopkins LRT Station Study Public Works Director Steve Stadler said he wanted to update Council members on the Southwest Corridor LRT Station Study. Hennepin County Board is scheduled to approve the study at its June 20 meeting. Consultants will be IBI Group, which does the majority of mass transit studies in North America, and Hoisington-Koegler, which has local knowledge and assisted with the Hopkins' East End study. The study should be completed in 6-8 months. Hopkins city staff will be involved in an advisory role. Answering Council questions, he said the study will cover possible station locations, identify possibilities and challenges, study impacts on traffic, and see how the cities involved can benefit from the transit line. Three station locations have been identified already: off Shady Oak Road south of McDonalds, a local station south of downtown Hopkins in the 5th/8th area (which may not have a parking lot), and one in the East End area on or near Blake Road. The consultants will be aware of our long-term plans for the East End as Hoisington-Koegler did that study for us. He will update Council before any community meetings are held and will probably have updates at least 3 times during the process. He noted the Policy Advisory Committee for the SWLRT has included Mr. Rowan. Steve, Nancy Anderson and Jim Kerrigan have sat on the Technical Advisory Committee. There is another study on the 11th Ave. South LRT crossing as to whether it should be a graded (above ground level) or non-graded crossing. The bike trail would be kept. City Manager Getschow noted there are a lot of local issues. Eden Prairie may support the line ending in Hopkins/Minnetonka as opposed to continuing through Eden Prairie. This could have a major city impact. The size and location of the stations also have local impacts. Review CIP City Manager Getschow noted the CIP and ERP will be before the Council for approval at a July Council meeting. August work sessions will be devoted to the 2007 budget. Budget Director Harkess noted extra funds in the General Fund are transferred to the Equipment Fund and Capital Improvements Fund. Transfers are budgeted to the Capital Improvements 2007-2010 in varying amounts. The Park Capital Improvements Fund will get extra monies in 2005, 2008 and 2010 due to the North Annex project park dedication fees. Mr. Stadler noted the $180,000 CIP project for 2010 is Shady Oak Beach. Ms. Harkess said the Municipal State Aid Fund is monies from the State. The transfer out amount of $2,370,000 is set aside to pay our share of Excelsior Blvd. work, for which we have not yet been billed by Hennepin County. Mr. Stadler noted the large projects are Minnetonka Mills Road (2008), Shady Oak Road (2009) and Excelsior Blvd (2011). Ms. Harkess noted the tax levy amounts for the Capital Improvements Fund are used for buildings June 13, 2006 Page 2 and parking lots. Mr. Thompson asked if there is major work scheduled for the parking ramp. Mr. Stadler said the ramp was built to be maintained, not replaced. If the joint seals are kept ..~._. tight, it should be okay. Mr. Getschow noted the maintenance fees are taken from the proper operating or special revenue fund, not the Capital Improvements Fund. Mr. Stadler noted some cities bring in outside experts to evaluate ramps after 20 years, and this might be a good idea. Briefly reviewing the 2007 street construction program, Mr. Stadler noted the Drill Lane project was a reconstruction; the 19th Ave. section is due to storm sewers being added there; the Blake Road project is a trail project and a curb and gutter with milling and overlay; the central city project is a mill and overlay. He added the Excelsior Blvd. coded as 2009 is actually a 2011 project. Mr. Getschow noted any monies under the estimated costs of the fire station, public works building and police department remodeling were to be applied to debt reduction. Ms. Harkess said that coming under budget on a $13 million building project was phenomenal. Ms. Harkess noted a bonding would need to be done this year for the P.I.R. Fund. Ms. Harkess said the Capital Lease amounts in the Water, Sewer and Refuse funds were allocations to cover their share of the expenses for the Public Works Facility, which they use. This helps keep the levy down as it helps pay the debt. If the water rate is not increased before 2009, the city will need to bond as rates are not keeping up with expenditures. She would like an internal study done on rates. Discussing the Sewer Fund, Mr. Stadler noted the $275,000 Capital Improvement for 2007 was for Lift Station #1. This work needs to be done before the Shady Oak work is done. Answering Ms. Youakim, he said Hopkins has 7 lift stations; hopefully one can be eliminated in a year or two. Ms. Harkess said these rates also need to be increased more than anticipated to keep up with the MET Council I/I (Inflow/Infiltration) charge increases. The I/I charges are put into special funds for each city as they are paid; the Met Council then reimburses cities which improve their I/I systems. The Met Council looks at flow meters records to determine if the cities meet criteria for reimbursement. Mr. Getschow noted Hopkins I/I rates are relatively low as compared to other area cities. He added education costs can also be reimbursed. Mr. Stadler added that as roads are redone, Public Works wants to make it easier for residents to connect to the storm sewer system. Ms. Harkess noted the 2001 bond will be paid off in 2010, saving around $200,000 per year in the Storm Sewer Fund. Mr. Getschow added that the Watershed District agreeing to pay for the culvert in connection with Nine Mile Creek work will be a big help to this fund. The 2007 Pavilion Fund capital improvement is for skate the replacement; skate the will also be installed in the lobby. Ms. Youakim asked if the continual deficit was due to lack of rentals or too low fees. Ms. Harkess said Pavilion staff does a good job of marketing. There is a lot of internal debt, such as to the ERP, for new equipment, etc. Mr. Stadler noted many of those improvements (and therefore, debt) are aimed at increasing future revenue, such as the new locker rooms and the mezzanine. Once paid for, those improvements will provide positive income. Mr. Getschow said the Pavilion is currently considered as an Enterprise Fund. There are other city facilities that are not treated as such and their improvements fall under other funds. The Council may need to have a discussion at a future date regarding the how Pavilion improvements are treated from an accounting standpoint. Ms. Harkess noted the CIP may be an option for capital improvements so the building is kept up. Mr. Getschow noted he and Ms. Harkess weren't advocating change, just mentioning options. Ms. Youakim asked if some of the park dedication fees could be used for the Pavilion. June 13, 2006 Page 3 Mr. Getschow noted the CIP will come back one more time. In addition, before any major project is undertaken, it must get approval. Stadler said the Park Board at its meeting June 26 may want to add a 2007 project, but it would be small, such as a shuffleboard court. Other Ms. Youakim said she has been approached by neighbors who would like to put plantings in the triangle at 15th and 2nd. She said one Meadowcreek resident told her the dog park was a good idea. Ms. Halverson said a friend of hers had been told by a cameraman from NBC in New York that they would be filming the Raspberry Festival in July. Mr. Getschow wondered if it might actually be related to the 2008 Women's Open NBC coverage. Mr. Rowan mentioned Ellen Morehouse, who won a National Merit scholarship. Mr. Rowan will be gone August 15. Mr. Getschow discussed an e-mail everyone received with a sewer complaint. He reminded the Council they had discussed a no-fault sewer backup insurance earlier. There was a brief discussion on future meetings. Mr. Rowan and Mr. Thompson will miss the June 27 work session, when there will be a final look at the CIP and a first look at the ERP. On Monday, July 24, we will meet with St. Louis Park Council there to discuss mutual concerns. Mr. Getschow said he feels it is very important to have a goal setting meeting in the near future. Mr. Getschow noted Planning and Zoning has 2 vacancies. General Consensus was being a business owner was a good guideline as it opened a new pool of potential members, but was not a requirement. On motion by Ms. Halverson and second by Mr. Thompson the meeting adjourned at 8:35 p.m. on a vote of 4-0. Kasey Kester, Secretary