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IV.1. Minutes of the April 21, 2020 City Council Regular Meeting ProceedingsHOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS APRIL 21, 2020 CALL TO ORDER Pursuant to due call and notice the regular meeting of the Hopkins City Council was held by conference call through GoToMeeting pursuant to Minnesota Statue 13D.021 in response to the COVID-19 emergency on Tuesday, April 21 at 7:07 p.m. Mayor Gadd called the meeting to order and conducted roll call of City Council participating in the meeting. Council Member present included Beck, Brausen, Halverson and Hunke. Others attending included City Manager Mornson, City Clerk Domeier, Assistant City Manager Lenz, City Planner Lindahl, Director of Planning and Development Elverum, Assistant City Engineer Klingbeil, Director of Public Works Stadler, Fire Chief Specken and City Attorney Riggs. Mayor Gadd provided information on the meeting format and other opening remarks. ADOPT AGENDA Motion by Beck. Second by Hunke. Motion to Adopt Agenda. Ayes: Beck, Brausen, Halverson, Hunke, Gadd. Nays: None. Motion carried. PRESENTATIONS III.1. Proclamation Declaring May as Dementia Awareness Month; Specken Mayor Gadd read the proclamation as submitted by Fire Chief Specken. CONSENT AGENDA Motion by Beck. Second by Hunke. Motion to Approve the Consent Agenda. 1. Minutes of the March 16, 2020 City Council Regular Meeting Proceedings 2. Minutes of the March 16, 2020 City Council Work Session following Regular Meeting Proceedings 3. Ratify Checks issued in March 2020; Bishop 4. Use Agreement – The Hopkins Farmers Market; Elverum 5. Approve Assessment of Private Water Line Repairs; Bishop Ayes: Beck, Brausen, Halverson, Hunke, Gadd. Nays: None. Motion carried. PUBLIC HEARINGS V.1. Adopt Assessment Roll – MPRB Parcels 2020-2021 Street and Utility Improvements, City Project 2019-10; Klingbeil City Engineer Eric Klingbeil provided a summary of Council Report 2020-022 relating to the assessment of Minneapolis Park and Recreation Board Parcels. Mayor Gadd opened the public hearing at 7:15 p.m. Mayor Gadd questioned if any written comments were received. Mr. Klingbeil replied no. HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS APRIL 21, 2020 Mayor Gadd asked for a motion to the close the public hearing. Motion by Beck. Second by Hunke. Motion to Close the Public Hearing at 7:16 p.m. Ayes: Beck, Brausen, Halverson, Hunke, Gadd. Nays: None. Motion carried. Motion by Beck. Second by Hunke. Motion to adopt Resolution 2020-016, Resolution Adopting Assessment Roll for Minneapolis Park & Recreation Board Parcels, 2020 -2021 Street and Utility Improvements, City Project 2019-10. Ayes: Beck, Brausen, Halverson, Hunke, Gadd. Nays: None. Motion carried. VI.2. Minneapolis Park and Recreation Board Conditional Use Permit Amendment for Meadowbrook Golf Course; Lindahl City Planner Lindahl provided a summary of Council Report 2020-024 relating to Minneapolis Park and Recreation Board’s Conditional Use Permit and Development Agreement for Meadowbrook Golf Course. Mr. Lindahl did not receive any comments on the action from the public. Mayor Gadd provided instructions on the public hearing process. Mayor Gadd opened the public hearing at 7:29 p.m. Michael Schroeder and Brian Rice with the Minneapolis Park Board were present to answer any questions after the public hearing. Mr. Schroeder thanked Hopkins staff for their diligence on the matter and presenting the proposal. Mayor Gadd asked for a motion to the close the public hearing at 7:30 p.m. Motion by Beck. Second by Hunke. Motion to Close the Public Hearing. Ayes: Beck, Brausen, Halverson, Hunke, Gadd. Nays: None. Motion carried. Council Member Hunke questioned if any concerns have been raised by the neighborhood regarding the temporary clubhouse. Mr. Lindahl stated he has not received any comments to date. Council Member Halverson questioned what the applicant has done to build a clubhouse. Mr. Schroeder stated a study has been done of golf in their system HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS APRIL 21, 2020 including the rounds played and revenue generated. He provided information about the excess of golf courses in their system and provided information on how they are accessing their golf courses and golf trends going forward. The Park Board is advancing their efforts for defining a clubhouse for the golf course. A proposed timeline was provided that included a new clubhouse open in two years. Council Member Halverson clarified the structure. Mr. Schroeder stated it was unlikely be that kitchen facilities would be added and that the structure would have a golf focus. Mayor Gadd questioned if the existing trailer on site would be used and the current condition of said trailer. Mr. Schroeder stated there was water damage and that the trailer has been fixed. Mr. Lindahl confirmed that the City Attorney has reviewed the CUP and Development Agreement. The Park Board attorney has also reviewed the documents. Motion by Beck. Second by Hunke. Motion to adopt Resolution 2020-017 approving an amendment to the existing conditional use permit for Meadowbrook Golf Course allowing the continued operation of a temporary clubhouse trailer, subject to conditions. Ayes: Beck, Brausen, Halverson, Hunke, Gadd. Nays: None. Motion carried. Motion by Beck. Second by Hunke. Motion to approve a development agreement with the Minneapolis Park and Recreation Board and direct staff to execute the agreement. Ayes: Beck, Brausen, Halverson, Hunke, Gadd. Nays: None. Motion carried. V.3. Public Hearing on Property Tax Abatement Related to Public Infrastructure Improvement; Bishop Finance Director Bishop provided a summary of Council Report 2020-025 relating to a property tax abatement for public infrastructure improvements. Stacie Kvilvang, Senior Municipal Advisor from Ehlers was also present for the item. Mayor Gadd provided instructions on the public hearing process. Mayor Gadd opened the public hearing at 7:48 p.m. Mayor Gadd read the submitted comments: Renee Kessler, 210 Ashley Road, Hopkins, Regarding the $1.5mm tax abatement for the Plantation property located at 500 Cambridge, I read that a tax abatement will reduce or eliminate the amount of property tax owners pay on new construction, rehabilitation, and/or major improvements. I drove around the property and did not notice any external improvements. I would like to understand what justifies the reduction HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS APRIL 21, 2020 in the Plantation's tax contribution to our City budget. Unless the same standard is applied to the Plantation as would be applied by a county assessor to a residential homeowner to justify a reduction in market value and tax, I am against th is request for an abatement. Residential homeowners that improve their property generally see an increase in their market value and tax. Unless a residential homeowner can demonstrate to the county assessor that homes selling within the past 18 mos with similar lot, square ft, and finishes, were sold at a market value less than the homeowners estimated market value, they are generally denied a reduction in their valuations and corresponding tax liability. I would argue a similar standard be applied to the Plantation property in evaluating a tax abatement request. A tax abatement for this property without a market comparable will only result in more tax being borne by Hopkins taxpayers. Hopkins taxpayers are already overburdened with almost double digit tax increases due to the City's excessive debt load, the $10mm Moline settlement and the expensive cost structure supporting the City's mere 4 square mile community. The City of Hopkins cannot afford to waive taxes for any commercial business, apartment complex or residential homeowner without the comparable market documentation and justification to do so. Otherwise, It is simply not fair! Maggie Sedoff, 122 Oakwood Road, I am writing regarding the request for approval of the tax abatement to pay for project work at 500 Cambridge St. I believe that the funding is necessary for the project at this point in time, however I urge the City Council and Staff to look more holistically at this policy along with TIF. As the city continues to carve out taxes to fund special projects, it puts more pressure on the remaining tax base to cover the levy, which in turn causes an increase in the tax rate. I believe that Hopkins needs to plan differently for 2021 and beyond. Mayor Gadd questioned this type of abatement proposed against the tax abatement spoke of by Ms. Kessler. Ms. Kvilvang provided information on using tax abatement to fund public projects. It is not a rebate of taxes for that property owner but instead the City can abate a portion of those taxes for the public improvement project. She also provided history where Hopkins has used tax abatement in the past. Mayor Gadd also provided comments related to Ms. Sedoff’s question regarding the project work at 500 Cambridge Street. Mayor Gadd asked for a motion to the close the public hearing. Motion by Beck. Second by Hunke. Motion to Close the Public Hearing at 7:54 p.m. Ayes: Beck, Brausen, Halverson, Hunke, Gadd. Nays: None. Motion carried. Council Member Alan Beck questioned that other than using this funding mechanism or bonds are their other ways to fund projects. Ms. Kvilvang stated that the only way cities can get away from it is to have a tax levy as part of your annual budget. Council Member Beck also questioned the expected life span of these repairs. Director of HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS APRIL 21, 2020 Public Works Stadler stated it was expected 15-20 years with minor maintenance over that time. Mayor Gadd inquired how many times we do mill and overlay before new construction. Mr. Stadler stated that streets deteriorate at different rates so hard to say how they will perform over lifetime but assumed two to three overlays before a full reconstruct. Motion by Beck. Second by Hunke. Motion to adopt Resolution 2020-018 Approving Property Tax Abatement Related to Public Infrastructure Improvements in the City of Hopkins. Ayes: Beck, Brausen, Halverson, Hunke, Gadd. Nays: None. Motion carried. NEW BUSINESS VII.1. Authorize Sale of $8,585,000 General Obligation Bonds, Series 2020A; Bishop Finance Director Bishop provided a summary of Council Report 2020-026 relating to the sale of $8,585,000 general obligation bonds. Council Member Beck questioned the term on the bonds. Mr. Bishop replied 15 years. Motion by Beck. Second by Hunke. Motion to approve Resolution 2020-019 Providing for the Sale of $8,585,000 General Obligation Bonds, Series 2020A. Ayes: Beck, Brausen, Halverson, Hunke, Gadd. Nays: None. Motion carried. VII.2. Emergency Ordinance Authorizing Late Penalty Waivers for Utility Bills; Bishop Finance Director Bishop provided a summary of Council Report 2020-027 relating to late penalty waivers during or immediately following a state or local emergency. Council Member Brausen questioned if staff has received requests for this ordinance. Mr. Bishop stated that that since the last billing cycle staff has received questions about late payment penalties. Motion by Beck. Second by Hunke. Motion to adopt Ordinance 2020-1151 An Emergency Ordinance Authorizing Late Penalty Waivers During or Immediately Following a State or Local Emergency. Ayes: Beck, Brausen Halverson, Hunke, Gadd. Nays: None. Motion carried. HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS APRIL 21, 2020 VII.3. Emergency Ordinance Amending Chapter 4 of the Hopkins City Code Regarding Liquor License Fees; Domeier City Clerk Domeier provided a summary of Council Report 2020-020 relating to liquor license fee payment plans. Mayor Gadd inquired about the newly passed legislation that allows for on -sale holders to serve off-sale. Ms. Domeier replied that six businesses are selling off -sale with take- out meals. No fees were imposed to use the legislation authorized. Mayor Gadd thanked staff for developing to the payment plan to assist liquor license hol ders in paying fees. Motion by Beck. Second by Hunke. Motion to adopt Ordinance 2020-1150 An Emergency Ordinance Amending Chapter 4 of the Hopkins City Code Regarding Liquor License Fees. Ayes: Beck, Brausen Halverson, Hunke, Gadd. Nays: None. Motion carried. OPEN AGENDA/PUBLIC COMMENT Sarah Foster, 228 Homedale Road, Hopkins, shared her request for the City Council to amend their policy and allow chickens within the City of Hopkins. Ms. Foster offered for her family to be the pilot program to have chickens. Mayor Gadd stated that staff is focused on COVID-19 and the situation we are in so implementing a new ordinance wouldn’t happen right now but the discussion will happen in the future. Mayor Gadd read submitted comments: Jennie Johnson, 105 16th Ave. N., Hopkins, Has the council and/or administration ever considered or do we currently use zero based budgeting? How do you all propose we get a handle on our debt? The future is terribly grim for tax payers and I am wondering how you plan to alleviate that burden. Now that the maintenance facility has been reduced or eliminated it seems like the available property would be a gold mine for increasing our tax base. is there a committee looking into the potential of this? (If the info is already out there, where would I find it) Harlan Limpert, 925 Nine Mile Cove South, Hopkins, I imagine you already plan to do this, but please describe how you envision the revenues to the City to be impacted by the Coronavirus AND the plans you have to prepare for those changes. Mayor Gadd talked about the emergency ordinances, impacts to the budget, what the City can do to help residents, and the current revenue decreases due to facility closures. Staff is looking at the 2020 budget as well as the 2021 budget and more discussion will be held regarding the impact. HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS APRIL 21, 2020 ANNOUNCEMENTS Mayor Gadd stated that the next City Council meeting will be held on Tuesday, May 5 at 7 p.m. On behalf of the City Council, Mayor Gadd thanked staff for all their efforts during the pandemic and provided closing comments on the situation within Hopkins. ADJOURNMENT Motion by Beck. Second by Hunke. Motion to adjourn. Ayes: Beck, Brausen Halverson, Hunke, Gadd. Nays: None. Motion carried. The meeting was adjourned at 8:28 p.m. Respectfully Submitted, Amy Domeier City Clerk ATTEST: _______________________________ Jason Gadd, Mayor _______________________________ Amy Domeier, City Clerk