11-09-05 WSNovember 9, 2005
Page 1
MINUTES
CITY COUNCIL WORK SESSION -November 9, 2005
A work session of the Hopkins City Council was called to order by Mayor Gene Maxwell
at 6:30 p.m. on November 9, 2005, at the City Hall. Council members Brausen, Rowan and
Thompson were present. City personnel present were City Manager Rick Getschow; Facilities
Manager Jay Strachota; Finance Director Christine Harkess; Public Works Director Steve
Stadler; and Performance Evaluation Committee members Jim Genellie, Gordy Klingbeil, Pat
Weigel, Stacy Unowsky, and Mike Lauseng. Also present for the Depot Coffee House
discussion were teen board members Mattie Jones, Karen Gullikson, Vlad Gruin, Anna Hull and
Dylan Bauer; Teen Coordinator Ted Duepner; Bertrand Weber of Hopkins School District and
Royal Cuisine; Fran Hesch; and Community Education Director Katie Lee of Hopkins School
District.
Depot Coffee House Update
Facilities Manager Strachota said there was a positive fund balance for the Depot at the
end of this year; the 2006 budget estimates there will also be a positive balance of $10,000 this
year. Ms. Jones said the Teen Board had a retreat last week where they discussed expansion of
the Teen Center and new projects. Mr. Duepner was a great help; the Teen Board feels it is a
benefit to have his office in Hopkins City Hall.
Site Improvements
Mr. Strachota said discussions have been ongoing for a few years; it was decided a
master plan was needed. Money has become available through the Three Rivers Park District;
then they were told by Katie Walker of the Southeast LRT that "if all falls into place"
construction of the line could start in 2010. This would affect some of the planned
improvements so everyone is waiting for LRT drawings. Now we are looking more at the
building itself. Mr. Stadler said the LRT would definitely have some site impacts so the plans
are important; he hopes to get them within a month. Mayor Maxwell asked when the impact
study would be done: Mr. Getschow said in 2006. Ms. Hesch asked who was coordinating
everything and expressed concern the Depot Board might get left out. Mr. Strachota said Three
Rivers is coordinating; Mr. Stadler added the city will make certain the Depot board is not left
out. Mayor Maxwell expressed concern Three Rivers might back out due to the LRT issues; Mr.
Stadler said he feels that would happen only if the whole site became unusable. Mr. Strachota
added Three Rivers loves the Depot site as it is at the meeting point of four trails. When building
improvements were brought up, they said to bring the ideas to them. Ms. Hesch emphasized the
Depot board and the city need to know what is negotiable in the plans. She later added the Depot
Board sees no reason for the proposed wall, but really sees a need for brick tuck-pointing inside
the Depot. Mr. Gruin said the alternative energy planning has to be put on hold until the LRT
plans are seen as they might affect placement of the proposed solar panels. Mr. Brausen said he
felt the LRT would not be built that soon but it must be considered; he feels if Opus builds on the
North Annex site, this will have a major influence on Depot usage. Normal wear and tear on the
building must be looked at so that it is attractive. Mr. Thompson agreed building improvements
make sense. Mr. Rowan commented the situation was a microcosm of "smart growth." Mr.
Getschow said Three Rivers does plan to spend the money on the site; the LRT plans would only
"move things around." Mayor Maxwell commented he thinks the city and the Board need to get
together. Mr.Weber commented it is important to know the vision of Three Rivers - is it to
improve the trail, the park system or the Depot? Mr. Gruin said he feels it is important to
actually sit down with Three Rivers personnel, to not just give feedback. Mr. Stadler said he
thinks that once Three Rivers is comfortable with the LRT situation, all parties will meet
together. It is important for everyone to keep in mind this is a trailhead and to present things
November 9, 2005
Page 2
from that focus. Ms. Hesch commented Three Rivers had already indicated that alternative
energy might be good for a trailhead.
Alternative Eneray
Mr. Gruin said he wishes to set up an alternative energy task force if the project can be
done. In essence, the Depot would be an alternative energy use lab. He thinks it would bring the
public in more and help the Depot make a profit. He would like to install one or two solar
panels. If the proposed LRT track is elevated, the projected panel site would not be usable.
Thus the alternative energy plans are on hold till the LRT plans are received. The panels from
Innovative Power Systems would have an up-front cost of $40,000, but rebates would bring the
cost to $26,000. Ms. Hesch added the Board is waiting for a bid; it would have been received
except Hurricane Katrina has overloaded the company. There is a group of students eager to
work on the project. A letter of intent has been sent to McKnight Foundation for a grant. It is
possible there will be options for wind energy after a year. Mr. Duepner said the Board has
already had an energy audit by Centerpoint, changed to more efficient lighting, etc. Answering
Mayor Maxwell, Mr. Gruin said the panels would not be installed on the roof as they then could
not be mobile, which is an integral part of the project. Ms. Hesch added Hennepin County owns
the building and is really behind the project; they could perhaps use land to the west if moving
the panels is necessary. She said one' thing the grants require is that the foundations want to
know who will be responsible for maintenance of the panels. Would the Council entertain the
idea of the city being responsible? She added she was not asking for a definite answer
immediately. Mayor Maxwell said he would like to see figures for a maintenance contract; Mr.
Brausen and Mr. Rowan both said they would consider it.
Royal Cuisine Management Agreement
Mr. Strachota said the present agreement is fully operational. There are two areas of
concern -raising income and lowering salaries. Royal Cuisine has proposed that Kathleen Taber
become a Managing Liaison rather than a Depot Coffee House manager. This would result in a
net savings of almost $10,000. Miss Gullikson said she appreciates that $10,000 is a lot of
money but has some concerns about the cut-back in manager hours. Mr. Weber said in the past,
of the 40 hours the manager worked, 30 were behind the counter. He feels one cannot really
manage when one is a counter worker. Of the other 10, 2-3 were for the classroom, so actually
only 7 hours were truly managerial. The proposed 10 hours for management would be strictly
management hours. Mr. Getschow noted this means actual managerial hours would not really
change then. Mr. Weber said he has always wanted the Depot manager to be a link between the
school and the Depot; this arrangement would accomplish that. Mr. Getschow added that the
marketing class had come up with ideas that could not be put into action; at the meeting on this,
it was felt the change would help that situation. Miss Lee said the school district supports the
Depot as an educational learning facility; there needs to be a connection between school classes
and the Depot. This would help. Mr. Thompson asked if Miss Taber would need teacher
certification; Ms. Lee said she would be a coordinator, not a teacher. She added the more the
school/Depot connection can be expanded -such as through the alternative energy program -the
better it is for both parties. Miss Gullikson asked if Ms. Taber is only required to show up at a
class or if she needs preparation time; Mr. Weber said there would be goals set for her to
achieve. Mr. Brausen said he has not always understood the dollars and cents side of the Depot;
however, he is glad to see it being connected to the classroom, not only because it has helped the
Depot financially, but because of the experiences for the students. Mayor Maxwell commented
as long as the Teen Center is successful, he is satisfied.
Teen Coordinator
Mr. Strachota noted Mr. Duepner was hired as Teen Coordinator in March 2005. His
salary is paid by the Y, but he offices in City Hall. Mr. Duepner noted the Y connection allowed
the retreat to happen because of the discounts available. Mayor Maxwell asked if the city could
November 9, 2005
Page 3
help in any way. Mr. Duepner said officing at city hall has been a real asset; officing at the Y
would be "tough."
Ms. Hull updated the Council on the Battle of the Bands this year, which will start
November 25 and run five consecutive Friday nights. The "finals" will be New Year's Eve at
HCA. Only five spots remain open. Ms. Hesch added it would be helpful if the city would use
their newsletter, etc. to advertise the need for chaperones for New Year's Eve.
Performance Evaluation System
Mr. Getschow said the committee tried to assess both the culture (how often, when,
crossing departments) and the mechanics (forms, etc) of performance evaluation. They realized
internal customer service (getting along with other city employees) was as important as outside
customer service. They felt the city mission and vision needed to be fit into the goals. Training
for those doing evaluations was deemed critical. He noted "supervisors will be evaluated on how
they evaluate." They wanted to find a way to use feedback and felt the 360° review was met by
the peer evaluation. There would be anonymous feedback in special areas and aself-appraisal.
They discussed the merit pay issue and thought time off might be appropriate. The committee
has met regularly since July and looked at forms from 7-9 other cities. They developed new
forms, and feel peer review and team work are an important part of the review process.
Ms. Weigel said she feel the new system is a more positive system, as well as being more
personal. The old system was more mechanical and looked just at job elements. She has high
hopes for this system as even "needs improvement" has positive elements. Answering Mayor
Maxwell, Mr. Getschow said training would be important; the consultant said that the front line
supervisor has often had no training and the committee feels it is a critical element. The review
of the reviewing supervisor would go up one level so there would be "another set of eyes" in the
process. When Mayor Maxwell asked if staff would have a chance to give feedback, Mr.
Klingbeil said they have had feedback all along; that is how peer review along with the amount
of contact became incorporated. He added being able to stay anonymous in peer review is
important. He feels the big thrust is that this system would look at internal customer service as
much as external customer service. Mr. Genellie added the committee continually tried to get
feedback; however, they realize the system may need to be modified in a year. Answering the
mayor, Mr. Klingbeil said the form takes about 20 minutes to do; the discussion about it might
take an hour. Therefore, he applauded this effort. Mr. Thompson agreed. Mr. Lauseng said
when performance evaluation started in 1989 it had a really bad feeling that never really went
away. He sees this as a positive change. Ms. Unowsky said how the feedback is given is a
critical component. Mr. Rowan noted the purpose of the evaluation - to improve - is clear. His
only concern is. the "overall rating" at the end; it seems too much like a grade. Strengths and
concerns should get the focus. Mr. Brausen said the way it is laid out, he thinks it will promote
discussion between reviews. Answering Mayor Maxwell, Mr. Getschow said evaluations are
done on anniversary dates of hiring. He asked for feedback on the use of time off as a form of
"merit pay." Ms. Weigel noted this would be for such things as special projects, not just for
doing a good job. Mr. Rowan said he thinks an incentive is a great idea. Mayor Maxwell
thanked the committee for the time and work they had put in.
2006 Budget Finance Director Harkess said the Council's goal was to keep the levy increase at
4%. That goal has been reached with a levy increase of only 3.98%. This was accomplished by
reducing the General Fund levy by 1% by reducing expenditures and by reducing the Debt Levy
by using the money left from the facilities project to write down the debt levy over the next four
years. The General Fund reductions were accomplished by four things: Terry Obermaier
worked with Hennepin County, which agreed to fund the 9 HAVA (Help America Vote Act)
election machines; capital items for the Activity Center were moved to the ERP; employee
benefit line items were adjusted to reflect more accurately the actual costs; individual department
November 9, 2005
Page 4
line items were also adjusted. A new factor impacting the levy is that for the first time Hopkins is
now a net contributor to the fiscal disparities program. The amount of the fiscal disparities
distribution is a direct offset to the tax levy; that amount has gone down the past two years so
that now we contribute more than is distributed. This impacts our tax capacity rate. However,
the tax capacity rate will be less than last year. If houses maintained the same value, their tax
would go down; however, the assessor has told her that Hopkins houses are increasing in value
an average 15% or more. Therefore, she estimates the median valued residential property will
see a tax increase of about $127. There is a contingency of $175,000 in the General Fund budget
to support salary increases, etc. as well as unexpected expenditures. Mr. Getschow noted the
2006 General Fund budget is a 0.4% decrease over the 2005 budget. Assistant City
Manager Jim Genellie noted that health insurance costs will go up approximately 20%; a family
policy would be $1200 per month. He actually had expected a 33% increase. New options are
being made available, which he hopes will help some employees. He added he had checked with
other insurance companies and found no better carrier. Mr. Getschow said he wants to
emphasize at the truth in taxation meeting that half of the 2% drop in the levy is due to the
facilities project coming in under budget.
New Finance Software
Ms. Harkess said the complete InVision program will cost $124,952, which includes
training; $135,000 had been budgeted in the ERP. She is familiar with the system and says it is
much better than what Hopkins has now. All modules will be integrated. The new program will
have e-commerce capabilities secured by INCODE for utilities, etc.; customers will be able to
check their accounts and pay their bills on-line. Mr. Thompson asked what added cost would
there be for the secured site. Ms. Harkess said the present support system costs about $9000 per
year; she does not see that going up much, if at all. She noted the additions will be done in
sections. She wants to order it right away as company orders are already backed up to March.
Mr. Getschow noted the purchase had already been approved in the ERP. Mr. Genellie said city
staff gets "a ton" of calls on utility accounts; he feels the e-commerce ability would help that.
Ms. Harkess added one city noted a 50% drop in such calls.
Mr. Getschow noted the Truth in Taxation will be December 5. Ms. Harkess said she
plans to use "user-friendly" charts, and she will emphasize the lower levy. Mr. Genellie said the
notices will go out tomorrow.
Mr. Thompson thanked Ms. Harkess for her promptness in supplying the depreciation
information.
City Council Vacancy
City Manager Getschow said the process to replace Ms. Johnson will be much like that
used in 1999. There will be a public notice process. Applications will be taken through
December. The appointment would be made at the end of January by the new Council. He
noted a special election is not needed as the vacancy occurred after the first day to file affidavits
for candidacy.
Other
Mr. Thompson asked if the changeover to the new meters is being pushed. Mayor
Maxwell noted another letter had been sent and it was in the update. Mr. Getschow said he will
make sure that staff is certain everyone affected knows.
He asked if a congratulatory letter had been sent to the teachers. Mr. Getschow said they
had been sent. He will put them in the update.
He mentioned the flag letter.
November 9, 2005
Page 5
Mr. Brausen suggested thank you letters be sent to members of the Performance
Evaluation Committee.
Mayor Maxwell also asked that thank you letters be sent to those who worked on the
Citizens Academy.
Mr. Brausen said he is concerned about the cutting of the manager hours at the Depot
since finances were not good when she was there 40 hours.
He asked if the city could actually provide the police presence at the Depot, perhaps by
using reserve officers. Mr. Getschow said he would discuss this with Chief Reid.
Council discussed the tiered system of performance evaluations used by the City of
Minnetonka. That system would be difficult to implement in Hopkins, with merit pay for
individual, department and city-wide goals.
Mr. Rowan suggested Keith Burgess of 101 Homedale be sent a board and commissions
packet.
He asked when the next Citizen's Academy would be. There was a short general
discussion. General Consensus was April would be good. Mr. Brausen added the graduation on
television was a "real high point."
Mayor Maxwell said there will be an event on December 10 for the wounded Iraq soldier
from Hopkins.
Mr. Getschow reminded Council there will be a Main Street noise meeting next Monday
night at the police station. He also mentioned the Hopkins Honda celebration Thursday; Mayor
Maxwell added the ribbon cutting is set for 6:00 p.m.
On motion by Mr. Thompson and second by Mr. Brausen, the meeting adjourned at 9:30
p.m. on a vote of 4-0.
Kasey Kester, Secretary
ATTEST:
Eugene . M ell, Mayor