12-03-2019 City Council Meeting HOPKINS CITY COUNCIL
REGULAR MEETING PROCEEDINGS
DECEMBER 3, 2019
CALL TO ORDER/PLEDGE OF ALLEGIANCE
Pursuant to due call and notice thereof a regular meeting of the Hopkins City Council
was held on Tuesday, December 3, 2019 at 7:02 p.m. in the Council Chambers at City
Hall, 1010 First Street South, Hopkins.
Mayor Gadd called the meeting to order followed by the Pledge of Allegiance with
Council Members Brausen, Kuznia, Halverson and Hunke attending. Staff present
included City Manager Mornson, Finance Director Bishop, City Clerk Domeier, Director
of Planning and Development Elverum, Police Chief Johnson, Assistant City Manager
Lenz, City Planner Lindahl, City Attorney Riggs, Fire Chief Specken, Public Works
Director Stadler and Community Development Coordinator Youngquist.
PRESENTATIONS
111.1. 2019 Hopkins Community Image Awards
Director of Planning and Development Elverum recognized the 2019 Hopkins
Community Image Award winners and thanked the staff and judges. Mayor Gadd
presented the awards to the winners and thanked them for their commitment to
improving Hopkins and reinvestment in the community.
Commercial/Industrial/Office winners:
• Hopkins Professional Building, 29-9t" Avenue North
• Hopkins Carpet One & Hopkins Center Drug, 907-913 Hopkins Center
Residential winner:
• Michael & Kimberly Falk, 245-9t" Avenue North
111.2. Recognition of Dale Specken — Fire Chief of the Year Award
City Manager Mornson recognized Chief Specken as Fire Chief of the Year award
winner. City Manager Mornson commented on the importance of recognizing the
accomplishments of staff and improvement projects in the City of Hopkins. Fire Chief
Specken thanked the City Council, City staff, members of the Hopkins Fire Department
and his family for their support of the fire department throughout his fire service career.
On behalf of the City Council, Mayor Gadd congratulated Fire Chief Specken.
CONSENT AGENDA
Motion by Brausen. Second by Kuznia.
Motion to Approve the Consent Agenda.
1. Minutes of the November 18, 2019 City Council Regular Meeting Proceedings
2. Minutes of the November 18, 2019 City Council Work Session following
Regular Meeting Proceedings
3. Ratify Checks Issued in November 2019
4. Adopt Resolution 2019-05 —Approving Execution of a Hennepin County
Healthy Tree Canopy Grant Agreement
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DECEMBER 3, 2019
Mayor Gadd commented on Consent Agenda item 4, thanking Public Works
Department staff, Superintendent Parks & Streets Strachota and Public Works Director
Stadler on acquiring a grant to lessen the City's tree impact from the emerald ash borer.
Ayes: Brausen, Kuznia, Gadd, Halverson, Hunke.
Nays: None. Motion carried.
OLD BUSINESS
VI.1. Beacon Interfaith Housing Apartment Building (Vista44) Rezoning 8� Planned
Unit Development (PUD) and Site Plan Review
Mayor Gadd commented that the Beacon project has been discussed at previous City
Council meetings and Work Sessions. The Council has heard and appreciates all the
community feedback from the many viewpoints.
City Planner Lindahl gave an overview of the staff report discussing the Beacon multiple
family apartment building rezoning and site plan. Mr. Lindahl discussed the rezoning
application commenting that the approval process requires a 4/5 City Council vote. Mr.
Lindahl discussed the site plan and gave an overview of the minor changes. Mr. Lindahl
gave an overview of the project history and commented that the additional public
comments received are noted in the City Council Packet. Mr. Lindahl reviewed the
questions that the Council wanted to further review and discuss.
Director of Planning and Development Elverum gave a presentation on affordable
housing in Hopkins. Ms. Elverum gave an overview of the 438 units of legally binding
affordable housing and how it is distributed throughout the community. Ms. Elverum
discussed the Metropolitan Council's overall housing score and goals of additional
afFordable housing units for Hopkins. Ms. Elverum commented on market value
increases and the factors putting pressure on the affordable housing market. Staff and
Council have heard the comments regarding the need for senior housing in Hopkins and
are interested in continuing the conversation. Ms. Elverum commented that the City
does not have control of the property of the proposed Beacon project. The Council
thanked staff for presenting the information to the community on affordable housing.
Representatives present for the item were Kevin Walker, Beacon Interfaith Housing
Collaborative Vice President of Housing and Shelter and Chris Dettling, Beacon
Interfaith Housing Collaborative Director of Housing Development. Mr. Walker
discussed the Vista 44 land use application commenting that the proposed development
meets a need in Hopkins and is an important community asset. Beacon is committed to
being good neighbors and landlords and the application reflects best practices and
responsive design. Beacon is requesting that the City Council approve the application.
Council Member Brausen asked about the Coordinated Entry process, background
checks and tenant services. Mr. Walker gave an overview of the Coordinated Entry
process administered by Hennepin County and application criteria. Beacon is looking for
other funding sources in order to set aside units to be responsive to the needs of
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REGULAR MEETING PROCEEDINGS
DECEMBER 3, 2019
Hopkins families. Mr. Walker discussed the criteria for occupancy commenting that
Level 3 sex offenders would not be accepted. The Beacon property would be a
supportive housing specialist but services are not mandated as condition of occupancy.
Council Member Halverson asked about staffing. Mr. Walker commented that staff
including case managers would be available on a daily basis and staff would be parking
onsite. Mayor Gadd asked about an exit strategy for the residents. Mr. Walker
commented that the property would be considered permanent supportive housing and
discussed possible reasons why families move on to other housing options. Council
Member Brausen asked about the leases and drug free addendum. Mr. Walker
discussed applicant criteria and reasons for eviction.
Mayor Gadd reviewed the procedure for public comment.
William Anderson, 102 Wayside Road W, spoke about concerns of the City's financial
debt and how the property could affect Hopkins taxpayers. Mr. Anderson commented on
the high percentage of affordable and rental housing in Hopkins, concerns of drug and
alcohol use, parking and setting new standards with the variance.
Michael Beasley, 128-7th Avenue South, spoke in support of Vista 44 asking the Council
to approve the application.
Jane Erickson, 38-15'" Avenue North, spoke about concerns of the City's debt, need for
more affordable senior housing and that the Beacon project does not fit the area.
Greg Sicheneder, 4809 Woodhill Road, Minnetonka, as a member of Saint Gabriel's
Catholic Church supports Vista 44 and the mission of the church to provide supportive
family housing.
Cheryl Youakim, 129-7th Avenue North, spoke in favor of Vista 44 and the importance of
stable family housing. Ms. Youakim asked that the City Council approve the application.
Charlie Flynn, 374 Althea Lane, supports Vista 44 commenting that the land use zoning
change was recommended by city staff and the Planning and Zoning Commission. Mr.
Flynn commented that Beacon staff has been responsive to requests and concerns and
is asking the Council to approve the application.
Scott Searl, Shepherd of the Hills Lutheran Church, 500 Blake Road S, Edina,
commented that the faith community supports Vista 44.
John Nelson, Gethsemane Lutheran Church, 715 Minnetonka Mills Road, in addition to
members from the faith community support Vista 44.
Jay Rudi, 600 Hopkins Crossroad, Minnetonka
Oby Ballinger, Edina Morningside Church, 4201 Morningside Road, Edina
Rev. Cindy Hillger, St. Martins by the Lake Episcopal, Minnetonka
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REGULAR MEETING PROCEEDINGS
DECEMBER 3, 2019
Tarrah Palm, ResourceWest, 1011 1 St Street South, spoke in support of Vista 44.
Mark Muenchow, 1117-1St Street South, discussed concerns and spoke in opposition to
the project.
Allan Johnson, 32-11�'' Avenue South, spoke in support of stable family housing and the
Vista 44 project.
Betty Fenton, 426 Hollyhock Lane, spoke about concerns of the City budget, debt, levy
and that projects need to contribute to the tax base.
Don Roesner, 618 W Park Valley Drive, commented that the project is not asking for
City funding.
Pam Knolls, 241-9t'' Avenue North, discussed concerns about the project and spoke in
opposition of Vista 44.
Greg Zoidis, 201 Homedale Road, spoke in support Vista 44, asking the City Council to
support the project.
Jim Shirley, 32-11 t" Avenue South #201, spoke in opposition of Vista 44 discussing
concerns regarding the project setback and changes in zoning.
Gary McGlennon, 32-11th Avenue South, #111, spoke in opposition of Vista discussing
parking concerns, building size and neighborhood opposition.
Tom Quinn, 310-12th Avenue North, discussed concerns of the tax burden.
Judy Worrell, 148 Interlachen Road, discussed the projects impact on resources and
finances to the community and school system commenting a plan is needed to address
future ramifications and needs of the project.
John Stepanek, 238-15t" Avenue North, spoke about the need for affordable housing for
seniors and concerns of tax impacts on residents.
Mayor Gadd commented that the zoning request to Mixed Use is in line with the 2040
Comprehensive Plan. Council Member Brausen asked how the Hopkins School District
would handle the different needs. Mr. Walker commented that the services Beacon
provides would compliment the services already provided by the Hopkins School
District. Mayor Gadd commented that the support services would reduce impacts on
students. Mr. Walker discussed the benefits of the supportive housing concept. Mr.
Lindahl commented that City departments have had an opportunity to weigh in on the
potential impacts to the City. Council Member Kuznia asked about the drug use policy
and exit strategy. Mr. Walker commented that the drug free addendum and applicant
criteria are important for the health and safety of the residents. Mr. Walker discussed
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REGULAR MEETING PROCEEDINGS
DECEMBER 3, 2019
the outcomes of the housing support program. Council Member Hunke discussed the
community concern about street lighting and commented that the rezoning would be
consistent with the 2040 Comprehensive Plan. Mr. Stadler discussed the street light
requirements.
Motion by Hunke. Second by Kuznia.
Motion to Adopt Resolution 2019-089 approving the first reading of Ordinance
2019-1144 rezoning the subject from R-5 High Density Multiple Family to Mixed
Use with a planned unit development, subject to conditions.
Council Member Kuznia discussed the difficult decision but hopes the community would
support the project. Council Member Kuznia commented that the City cannot control
whom the church sells the property to and that the property would be on the tax rolls.
Council Member Brausen discussed his struggles with the decision understanding the
community concerns for the site. Council Member Brausen commented on his support
of the Beacon organization and that the organization is not asking for a financial
contribution from the City.
Mayor Gadd discussed the affordable housing statistics and commented on the need for
supportive family housing.
Ayes: Kuznia, Gadd, Halverson, Hunke.
Nays: Brausen. Motion carried.
Motion by Halverson. Second by Hunke.
Motion to Adopt Resolution 2019-090 approving the PUD site plan for the
Beacon Multiple Family Apt Building subject to conditions.
Ayes: Kuznia, Gadd, Halverson, Hunke.
Nays: Brausen. Motion carried.
Mayor Gadd thanked the community for their feedback. The second reading is
scheduled on the December 17 City Council agenda.
NEW BUSINESS
VI1.1. 2020 Budget Meeting, 2020 Tax Levy and General and Special Revenue
Fund Budgets
Finance Director Bishop gave an overview of the 2020 General Fund Budget and Tax
Levy and the recommendations by staff and City Council to reduce the levy. Mr. Bishop
discussed the taxation process and gave an overview of the City's budget and how it
impacts taxes on a median value home. Mr. Bishop discussed the General Fund
revenues and expenditures and the Arts Center and Pavilion levy. Mr. Bishop discussed
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REGULAR MEETING PROCEEDINGS
DECEMBER 3, 2019
the proposed 2020 preliminary levy and the reductions made by staff and Council to get
to the 9.71% increase to the proposed levy which calculates out to an $88 increase to
the median valued home or 5.1%.
Council Member Halverson asked about grant dollars. Mr. Bishop discussed project
funding. Mayor Gadd discussed the Arts Center budget and the staff and Council's
efforts to reduce the deficit and eliminate the outstanding debt. Mr. Bishop discussed
the plan to pay off the debt and Assistant City Manager Lenz discussed the Arts
Center's budget improvements and revenue sources. Mayor Gadd commented on the
Art Center's financial impacts and benefits on the City and the Mainstreet businesses.
Mayor Gadd appreciates the effort of staff regarding the Arts Center budget. Council
Member Brausen commented on the benefits of the Arts Center and the need for more
discussion on ways to improve the debt and create more revenue streams.
Mayor Gadd reviewed the procedure for public comment.
Don Roesner, 618 W Park Valley Drive, spoke on concerns of market values, Arts
Center debt and tax impacts to residents. Mr. Roesner discussed a concern that
Hennepin County, Hopkins School District and City of Hopkins Truth in Taxation public
hearing meetings are scheduled on the same night.
William Anderson, 102 Wayside Road W, spoke on budgeting accountability and fiscal
responsibility and taxpayer concerns of home values, City debt and looking at ways to
decrease taxes.
Bryan Bjornson, 741-11 th Avenue South #3, spoke about proposed tax increase and
concern that Hennepin County, Hopkins School District and City of Hopkins Truth in
Taxation public hearing meetings are scheduled on the same night.
Gerard Balon, 245-18t'' Avenue North, opposed the proposed tax levy increase and
commented that is financially harder for residents to stay in their homes.
Maggie Sedoff, 122 Oakwood Road, spoke about concerns of the tax increase and debt
levy. Hopkins Residents for Fiscal Responsibility are looking at opportunities to reduce
the City's debt obligation and make changes in the budget process going forward.
Council Member Brausen asked for clarification of what she meant by benchmarking
with other cities. Ms. Sedoff commented on tax increases of cities of a similar size.
James Warden, 620-10th Avenue South, commented that the budget proposal is better
but unsustainable. Mr. Warden commented on budget forecasts, accountability,
transparency and need for resident involvement in the budget process.
Betty Fenton, 426 Hollyhock Lane, spoke about concerns of the City debt and fiscal
responsibility.
HOPKINS CITY COUNCIL
REGULAR MEETING PROCEEDINGS
DECEMBER 3, 2019
Jerry Dykhoff, 220-17th Avenue North, spoke about concerns of the levy and debt
increase and that Hennepin County, Hopkins School District and City of Hopkins Truth
in Taxation public hearing meetings are scheduled on the same night.
Tom Quinn, 310-12th Avenue North, spoke about concerns of the budget increase.
Bob Worrell, 148 Interlachen Road, commented that City leadership and City Council
should look at ways to reduce the City budget.
William Anderson, 102 Wayside Road W, commented that the City needs examine
reasons for adding debt.
Judy Worrell, 148 Interlachen Road, commented that City Council needs to realign city
spending, be transparent and listen to feedback and direction from residents in order to
address the fiscal situation. Ms. Worrell asked that Council change the street
reconstruction public hearing process and broadcast all City Council meetings.
Don Wille, representing his mother who lives at 256-21St Avenue North, spoke about the
need to make budget cuts.
Mayor Gadd commented that the City Council will take public comments into
consideration and will look at more opportunities to engage residents in the budget
process. Mayor Gadd commented that the City listens to resident feedback from street
project open houses and would address televising of Work Sessions with staff. Council
Member Brausen commented on the importance of everyone's right to be heard,
scheduling of tax hearings, moving of public comments to the beginning of City Council
meetings and the budget process. Council Member Hunke appreciated the residenYs
interest in the budget process. Mr. Bishop discussed the City's use of debt to fund long-
term capital improvement projects.
Motion by Brausen. Second by Hunke.
Motion to continue the budget discussion at the December 17 City Council
meeting.
Ayes: Brausen, Kuznia, Gadd, Halverson, Hunke.
Nays: none. Motion carried.
ANNOUNCEMENTS
• Next Regular City Council Meeting: Tuesday, December 17 at 7:00 p.m.
ADJOURNMENT
There being no further business to come before the City Council and upon a motion by
Halverson, second by Hunke, the meeting was unanimously adjourned at 11:50 p.m.
HOPKINS CITY COUNCIL
REGULAR MEETING PROCEEDINGS
DECEMBER 3, 2019
OPEN AGENDA— PUBLIC COMMENTS AND CONCERNS
The City Council did not receive any comments or concerns.
Respectfully Submitted,
Debbie Vold
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r` son Gadd, Mayor Amy Domeier, City Clerk