09-11-07 WSSeptember 11, 2007
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MINUTES
CITY COUNCIL WORK SESSION -September 11, 2007
A work session of the Hopkins City Council was called to order by Mayor Gene
Maxwell at 6:30 p.m. on September 11, 2007, at, the Hopkins City Hall. Council
members Rick Brausen, Kristi Halverson and Bruce Rowan were present. City personnel
present were City Manager Rick Getschow, Finance Director Christine Harkess, Pavilion
Manager Don Olson, Facilities Manager Jay Strachota, and Public Works Director Steve
Stadler.
2008 Budget -Special Revenues and Enterprise Funds
Pavilion Fund
Pavilion Manager Don Olson said that ice use is down slightly; leagues grew a
little bit; dry floor activity has increased, although income has come not come up much.
Answering Mayor Maxwell, he said the dog show is continuing and brings in $1200 for
the weekend, and he has received inquiries for a cat show. Antique and estate salts are
starting to grow. He is getting an increasing number of requests for information. Roller
hockey is down to three nights with only a few hours each week. Soccer is likely to grow
as Cargill already has some soccer at the Pavilion. Upstairs usage is showing slow but
steady growth. He doubts there will be business from U Bus School. Answering Mr.
Rowan, he said most people ask about the Pavilion because of the web site. Mr. Olson
noted the large drop in lease income (from $153,806 to $38,000) is caused by the major
payments being completed and only maintenance costs will be due. There have been no
major changes in expenses. He would like to add additional part-time hours during ice
season (about 15 hours/week) so that he can devote more time to tracking budget issues,
developing new programs, etc. Answering Mayor Maxwell, he said the roof was cut and
skirted in 2003 or 2004, which added about 10 years to its useful life span. It will be in
the CIP for replacement. The refrigeration tower is 18 years old. It looks good now, but
he cannot estimate how long it will last. Mr. Strachota noted Mr. Olson gets a lot of
credit for its usability as he keeps close track of demineralization of water. This is a
computer controlled system, and that should be looked at to see if it should be changed.
Mr. Getschow added money is now being put aside each year for Pavilion capital
improvements. Answering Mr. Rowan, Mr. Olson said the budget shows a loss of $45-
50,000 last year, largely due to depreciation costs. If depreciation is not included, the
loss would be about $8200 and he is hoping to reduce that to about $3000 next year. He
said today he spent $1400 on compressor repairs. He does about 20% of the maintenance
on that himself. He noted the lockers are done. Mr. Strachota noted that the increased
part-time hours would be given to present employees so there would be no increased
benefit costs.
Art Center
City Manager Rick Getschow said that Council had heard recently about the new
model for operating the Art Center. Another meeting related to the implementation of
that new model will be held later this year. Facilities Manager Jay Strachota said this
year's budget looks very different due to the new management system that will soon take
place (HCA figures have been included). Rentals went down slightly; lease income went
up due to the school. "Admissions" includes revenue from concerts, etc. Answering Mr.
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Getschow, he said there may be more than one fundraiser in 2008. Answering Mayor
Maxwell, Mr. Getschow said the Art Center gets about half of the cable franchise fee
money; the other half is used for city communications, including the web site, newsletter,
annual report, etc. The current franchise agreement term ends in 2012. Mr. Strachota
said more part-time help is needed as the Art Center is getting more back-to-back events.
Regular employee overtime is used when Mike cleans carpets on the week-end, etc.
Answering Mr. Rowan, he said there are 6 part-time employees. They have asked to
have some type of uniform, such as a vest or shirt, with a logo; Mr. Rowan said he felt it
should be an Art Center logo rather than the city's logo. Answering Mayor Maxwell, Mr.
Strachota said the postage expense number is based on HCA Inc.'s history. Utility costs
have gone up. The capital outlay is for the new information center. HCA, Inc. is
working on their new by-laws and developing lists for new Board members in the change
process.
Other Funds
Ms. Harkess said the State Chemical Assessment is totally funded by the state and
federal governments.
The Economic Development Fund ebbs and flows as development goes up and
down. Answering Ms. Halverson, she said the property tax change is due to HRA levy
change. Answering Mayor Maxwell, she said the employee benefit amount went up due
to employee changes and retirement benefits.
Hop-a-Ride. Answering Mayor Maxwell, she said the general fund transfer to
this fund is done yearly, but has not been used. Mayor Maxwell noted this is a program
that needs to be looked at and perhaps expanded.
Parking is about the same; the capital. amount is for door changes, etc. Mr.
Getschow said he has been talking to the IT department and we may be able to get
cameras that would hook into the city system. Staff is looking into this more.
Section 8 has no big changes.
Cable Fund money was used for this year's city survey. It will pay for printing
the annual report for most residents.
Depot
Ms. Harkess noted this is a draft budget as the students had to cancel a couple
meetings. There are no new employees for the city budget. A resource coordinator will
be paid for by the Park Nicollet grant. Mr. Getschow noted the Depot received a county
grant of $20,000 for organic recycling. He said Fran Hesch is still helping with the
business side. When she came, there was a deficit balance; now there is a positive fund
balance. Mr. Brausen said when he has talked to Ms. Hesch, she has really appreciated
the help of Mr. Getschow, Ms. Harkess and Mr. Strachota. Mr. Hesch has put in many
hours also. He feels the city should recognize their contributions. Mr. Getschow noted
Three Rivers is now partnering at the Depot and that is a positive development.
TIF
Mr. Getschow noted a large decertification (R. L. Johnson) will occur in the next
few years. There was general discussion of celebrating successes for past redevelopment
that is now coming to fruition as it relates to TIF decertification.
Sanitary Fund
Ms. Harkess said the figures for this fund must be redone as Met Council has
raised their rate 8%, not 3% as she had projected. They also said to expect 6-8%
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increases for the next 5 years due to capital improvements, Mr. Getschow noted that at
least 60% of that fund's expenses are for Met Council fees. Mayor Maxwell asked that
staff research how much money we have received from Met Council the last 4-5 years for
such programs as Hop-a-Ride, Livable Communities, etc.
Other
Ms. Halverson noted Chaska has passed an ordinance on under-age drinking that
~'~ holds parents responsible.
' Mayor Maxwell reminded members of Bish's retirement party a week from
Friday.
Mr. Getschow said we did not receive a Livable Communities grant for
Cottageville park. They want the improvements tied more closely to a development
j project in the area. After more progress is made with the Atlas site, we can reapply.
', The LA Fitness developer may have a purchase agreement on the Mayon Plastic
site.
' There was a Human Rights Commission meeting Monday night. The members
are looking to establish a connection with the new Ubah Medical Academy.
'. There will be not be a November 13 work session.
Five people filed for City Council and one filed for Mayor.
Mr. Getschow distributed a letter from the three area city managers, including
I, himself, directed to TCW railroad. He will also check on switching station progress.
'~ Mayor Maxwell said there were articles of interest on Wayzata and Stillwater.
I
We may need to look at our downtown situation.
On motion by Ms. Halverson and second by Mayor Maxwell, the meeting
adjourned at 8:35 p.m. on a vote of 4-0.
Kasey Kester, Secretary
COUNCIL MEMBERS : ,~