IV.3. Minutes of the November 12, 2019 City Council Work Session Proceedings
HOPKINS CITY COUNCIL
WORK SESSION PROCEEDINGS
NOVEMBER 12, 2019
CALL TO ORDER
Pursuant to due call and notice thereof a regular work session of the Hopkins City
Council was held on Tuesday, November 12, 2019 at 6:30 p.m. in the Raspberry Room
st
at Hopkins City Hall, 1010-1 Street South, Hopkins.
Mayor Gadd called the meeting to order with Council Members Brausen, Kuznia,
Halverson and Hunke attending. Staff present included City Manager Mornson,
Equipment & Maintenance Superintendent Autio, Finance Director Bishop, Director of
Planning and Development Elverum, Assistant City Manager Lenz, Public Works
Director Stadler and Community Development Coordinator Youngquist.
FACILITY SOLAR PROJECT
In addition to City staff, Ideal Energies representatives present for the item were Rich
Ragatz and Mark Hansen. Public Works Director Stadler discussed the proposed
project to install solar panels on three city facilities – Public Works, Fire Station and
Pavilion. There is no cost to the City for the solar panels or their installation, operation
or maintenance through the 15 and 20 year lease periods. During the lease period the
City would purchase the solar power at a reduced rate. Mr. Stadler discussed the
projected cash flow and commented that after the lease expires the City would own and
maintain the solar panels after the 15-20 year agreement expires. Staff toured City of
Roseville facilities that installed solar panels about one year ago. Mr. Stadler gave an
overview of the installation process and if approved some installation work could begin
before spring and be operational late spring 2020. The agreements are being reviewed
by staff and City Attorney.
Council Member Halverson asked why the three City buildings were chosen. Mr. Autio
explained that there is no available space on City Hall and that other facilities are
scheduled for roof replacement. Mr. Stadler explained that wording in the agreement
would allow for taking the solar panels out of operation if roof work is needed. Mr.
Ragatz explained how the power is purchased. Council Member Brausen asked about
lease agreement and customer base. Mr. Ragatz commented that Ideal Energies was
founded in 2010 with 350 commercial accounts to date. The company began marketing
to the non-profit sector approximately 3 years ago. Mr. Ragatz explained how the capital
lease program works for non-profit customers. Mr. Hansen discussed the federal tax
credit program explaining that the economics of the program are being reduced from
30% in 2019 to 26% in 2020. Mayor Gadd asked about ongoing costs to the City after
the lease period ends. Mr. Stadler commented that the product is warranted for 25
years and discussed the engineering and maintenance of the solar panel product. The
Ideal Energies representatives explained the technology to monitor the production of the
panels and gave an overview of the energy savings. Council Member Hunke asked
about the 15 and 20 year leases. Mr. Ragatz explained the Xcel Energy grant program
and payback. Council Member Brausen asked about the savings to the City and
commented on the importance of due diligence. Mr. Stadler discussed the City of
Roseville’s performance to date. Mr. Ragatz discussed the cash flow commenting that
the numbers are based on 10 years of average weather data. Mayor Gadd asked about
liability to the City and compatibility with the community solar garden program. The Ideal
HOPKINS CITY COUNCIL
WORK SESSION PROCEEDINGS
NOVEMBER 12, 2019
Energies representatives commented that the City would have a rider on their insurance
policy and that the solar panels would complement the community solar garden
program. Council Members Kuznia and Brausen commented on the importance of
getting additional information from other cities about the program.
Staff would schedule the facility solar project on the December Work Session agenda
for further discussion.
ARTSPACE UPDATE
Director of Planning and Development Elverum and Community Development
Coordinator Youngquist gave an overview of affordable housing and rental affordability
limits. Ms. Youngquist commented that 71% of Hopkins housing stock is naturally
occurring affordable housing and that there is a strong housing market in Hopkins
fueled by buyer preferences and the LRT. Ms. Youngquist gave an overview of Hopkins
legally binding affordable housing, ownership affordability limits and how it is distributed
throughout community and the populations served. Currently Hopkins has a total of 438
affordable housing units which is 5% of the overall housing stock. Ms. Youngquist
discussed the Metropolitan Council Housing Performance Score commenting that
Hopkins has done well to meet affordable housing goals and the high housing score
helps the City become eligible for grants.
Ms. Elverum discussed studies on the property value increases associated with the
Light Rail Transit (LRT) as well as opportunities for potential redevelopment sites and
the addition of new housing units. There was discussion about future development, the
potential for the loss of affordability and providing new affordable housing options that
meet different needs such as the Beacon housing supportive services, Artspace
creative live work space and the need for workforce housing. There was discussion
about the need for senior affordable housing and what Hopkins currently has and
needs. Staff would schedule a future City Council Work Session for further discussion
about senior housing. Council Member Hunke commented on the station area
development properties and the boost that the LRT stops bring to property values.
There was discussion about market rate rents near the station areas, preservation of
affordability and the effectiveness of inclusionary zoning with a percentage of affordable
units.
Ms. Youngquist discussed the background of Artspace, a live, work, affordable space
for creative arts. Ms. Youngquist commented that art-type destinations draw people into
Hopkins. Ms. Youngquist discussed the results of the preliminary feasibility study and
the arts market study that concluded there is a market for a 30-40 unit live, work, mixed-
use facility. Mayor Gadd asked about the Arts Center study that focused on the financial
impact of arts on the community. Staff would update the City Council.
Ms. Youngquist discussed the proposed site for Artspace; the underutilized City-owned
parking lot 800. The parking lot is currently not generating funds, is zoned multi-family,
within .5 miles of the downtown Hopkins LRT station and within close proximity to
Hopkins Center for the Arts. Council Member Brausen asked about grant monies. Ms.
HOPKINS CITY COUNCIL
WORK SESSION PROCEEDINGS
NOVEMBER 12, 2019
Youngquist gave an overview of the grants received and what they covered. Ms.
Youngquist discussed the artist led community engagement event and the importance
to engage the community from the beginning to seek input to form a concept plan. Ms.
Youngquist gave an overview of the engagement plan that includes getting the word
out, pop up events, focused discussions, an open house and engagement sessions.
The information gathered would be shared back with the community in January 2020.
Ms. Youngquist shared ways that staff is raising the profile of the site to increase
engagement in the process.
There was discussion about perceptions and challenges of the project. Council Member
Brausen commented on the importance of community conversations and neighborhood
input and asked about the history of the lot and current appraisal. Ms. Elverum
commented that two single-family homes were moved off the lot in the 1970’s. Ms.
Youngquist discussed the history of the property and commented that staff would reach
out to Hennepin County to update the property value. Ms. Elverum commented that staff
is working hard to engage residents and hear from the community. Mayor Gadd
discussed the importance of communication and the engagement process and asked
about other locations. Staff discussed the market study that looked at different sites,
options and future possibilities. Ms. Elverum commented that Artspace acknowledges
the need to build an attractive building. Ms. Youngquist discussed the steps moving
forward and critical dates.
City Council Members should contact the staff with any additional questions and that
staff would compile community feedback and continue to update the City Council.
PLANNING AND DEVELOPMENT UPDATE
Beacon Interfaith Housing project is scheduled to be discussed at a special Work
Session on Tuesday, November 26, 6:30 p.m. Council discussed that the reason the
item was tabled was for additional information and to get questions answered.
The Hometown Auto building is under contract and is proposed to be divided into
small tenant spaces.
The Firestone building is under contract for a possible brewery location.
A hotel is looking for a possible site in Hopkins
A workforce housing proposed project would be on the January Work Session
agenda.
Ms. Lenz discussed the Meadowbrook Golf Course clubhouse. Staff has discussed
options with the City Attorney and will update the City Council.
Discussion of a social entertainment district liquor license. City Clerk Domeier
investigated neighboring license fees and Hopkins is on the lower end of the fees.
City Council would continue to discuss and review.
Vine Room would like to purchase an off-sale liquor license but currently the City
has a reached the maximum off-sale liquor licenses. City Council consensus was for
staff to proceed with investigating the request.
City Manager Mornson is meeting with the Minnehaha Creek Watershed District staff
regarding the Blake Road site on Friday, November 15.
HOPKINS CITY COUNCIL
WORK SESSION PROCEEDINGS
NOVEMBER 12, 2019
Discussion about the City of Minnetonka proposal.
Discussion about The Moline presentation and addressing community questions
CONTINUED REVIEW OF THE 2020 GENERAL FUND BUDGET & TAX LEVY
Finance Director Bishop reviewed the 2020 General Fund budget and tax levy
commenting that the Truth-in-Taxation notices that are available November 12, 2019
are based upon the preliminary levy. The public meeting and budget presentation is
scheduled for the December 3, 2019 City Council meeting. Mr. Bishop gave an
overview of the 2020 preliminary taxes and percentage change to residential properties.
Overall Hopkins market values increased 6% with the condo market having the greatest
increase. Mr. Bishop gave an overview of the preliminary budget and levy that was
approved on September 17, 2019 at 12.86%. Mr. Bishop discussed the budget
reductions to the General Fund and the issuance of equipment certificates for eligible
items that would spread the cost of the city equipment over the years 2021 through
2029. Equipment certificates are a way to reduce the 2020 levy without affecting the
City’s equipment needs. The total reductions have reduced the proposed increase to
9.71%. There was discussion about the budget presentation and the importance of
communicating the vision of the City and how the preliminary budget was reduced to
achieve the current budget. Council consensus was to proceed with the 9.71% budget
increase.
ADMINISTRATION
City Manager Mornson gave the following update:
Three City Council Members are needed to attend the Canvass and Certification of
Election Results on November 5, 8 a.m.
Discussion of the City Council appointment process.
November 26 Special City Council meeting agenda.
Discussion of the January 10, 2020 Goal Setting meeting agenda.
Discussion of the State of the City event.
National League Conference discussion
UPDATES
Council Member Halverson shared a resident concern about snow piling the last few
th
years near her driveway at 350-19 Avenue North.
Council Member Kuznia commented that a new City Council representative is
needed for the Southwest Light Rail Transit (SWLRT) Community Works Steering
Committee. Council Member Brausen volunteered and Council Member Halverson is
the alternate.
Council Member Hunke attended the P.L.A.C.E.S. committee meeting.
Council Member Hunke attended the Access Hopkins meeting on November 6.
Discussion of a resident concern about vehicle speed on Cambridge Street.
Council Member Brausen discussed moving the public comment portion at regular
City Council meetings to the beginning of the meeting.
Mayor Gadd discussed upcoming meetings and conferences.
HOPKINS CITY COUNCIL
WORK SESSION PROCEEDINGS
NOVEMBER 12, 2019
ADJOURNMENT
There being no further business to come before the City Council and upon a motion by
Brausen, second by Kuznia, the meeting was unanimously adjourned at 9:52 p.m.
Respectfully Submitted,
Debbie Vold
ATTEST:
___________________________ ____________________________
Jason Gadd, Mayor Amy Domeier, City Clerk