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06-24-2008 WSJune 24, 2008 Page 1 MINUTES CITY COUNCIL WORK SESSION -June 24, 2008 A work session of the Hopkins City Council was called to order by Mayor Gene Maxwell at 6:35 p.m. on June 24, 2008, at the Hopkins City Hall. Council members Rick Brausen, Kristi Halverson and Cheryl Youalcim were present. Council member Rowan was absent. City staff present were City Manager Riclc Getschow, Public Works Director Steve Stadler, Finance Director Christine Harkess, Planning Director Kersten Elverum and Community Development Coordinator Tara Beard. CII' Review City Manager Getschow said there are four steps in the budget process: the Capital Improvements Plan (CIP), which covers 5 years; the Equipment Replacement Plan (ERP); the General Fund Budget, which will be started in late July; and the other fund budgets, which cover the enterprise funds and will be started in the fall. Each phase requires 2-4 meetings. Mayor Maxwell feels the Council must closely examine each budget item based on the tough economic times that may lie ahead. Mr. Brausen remarked one resident told him he does not see any level of government addressing the economy. Mr. Getschow commented the Council has a good record; the past two years have seen only 3-3.5% general fund expenditure increases. He and Ms. Harkess have pared back some capital items. Mr. Brausen said this would be a good time to publicize what the Council and staff have done about gas purchases, etc. the past few years, and to inform citizens what they can do. Ms. Youalcim suggested a "budget boot camp," perhaps as part of the Citizens' Academy, where citizens could see the budget process. Mr. Getschow noted the City has publicized that Nine Mile Creels work will be largely funded by the Watershed District -not the City. Finance Director Harkess said the forecasts to 2033 are something new in the CIP. Park Capital Improvements Fund. Ms. Harkess noted this fund saw significant park dedication revenue in 2007 as a result of the Cargill project. We need to keep in mind that the original intent of the law was for cities to buy land for parks. There was a brief discussion whether the Pavilion, Art Center, Activity Center could come under this fund. Mr. Stadler says he feels the Parlc Board would probably support adding the Pavilion but there may be concerns with other uses. Answering Mayor Maxwell, Ms. Harkess said she did not know the source of the $1,243 donation in 2006. Mayor Maxwell asked about the Skate Park. Mr. Stadler said the contract with Third Lair comes up next year, at which time fees, etc. can be discussed. Answering Ms. Youalcim, Ms. Harkess said Third Lair is reimbursed for their capital improvements to the Skate Park from the capital fund up to a set limit. Answering Mayor Maxwell, Mr. Getschow said the payback over 3-4 years to Minnetonka for our share of the Shady Oalc Beach work has been discussed with them, but nothing definite has been decided. Mayor Maxwell said he was impressed by the sale of the park benches and suggested the program be continued to put benches by play areas of other parks, etc. Mr. Stadler said he would bring the idea to the Park Board. Answering Ms. Youakim, Mr. Stadler said the amount for Interlachen Parlc is larger than that for Cottageville Park because Interlachen has a June 24, 2008 Page 2 much bigger shelter which will get water/sewer for the restrooms; it also involves grant money. Mr. Getschow said some cities have established non-profit foundations to enable citizens to donate funds to their park systems. Mr. Brausen said that could lead to equipment donations also. Capital Improvement Fund Ms. Harkess said money can be transferred from the general fund, but that affects levies. It was noted the $80,000 City Hall lobby improvement had been deleted. Mr. Getschow noted the Pavilion is now 20 years old; the Art Center, ten, which means renovations are needed. The 2009 $3 8,000 Pavilion project is bleacher heating; there was some discussion whether the youth hockey organization might help on that. The $8,000 project is WIFI for the Art Center; Mr. Stadler said that is necessary for rentals. Ms. Harkess said the 2010 project is Parking Lot 200 work; the Art Center is to be re-carpeted in 2011; the heating/AC system is to be replaced in the Activity Center in 2012. Mr. Stadler noted that the parking lot may be assessable. Mayor Maxwell said the formula used last time should be used again. Mayor Maxwell asked about the letter that was to be sent out on Excelsior Blvd. fencing. Mr. Stadler said that has not been sent. Mayor Maxwell said that letter should be reviewed and another drafted for Shady Oalc Road so residents know what the situations are. Cable TV Fund Ms. Harkess said the projects for the Council Chambers are: 2009, video; 2010, lighting; and 2011, playback equipment. There was general discussion on how the amounts might be altered. Mr. Getschow said he and staff will look at each item again. Municipal State Aid Fund The major planned projects are 5th St. in 2009; Shady Oak Road in 2011; and Excelsior Blvd (Blake to city border) in 2013. Ms. Harkess noted Hennepin County has been paid. P.I.R. Fund Mr. Stadler noted that street areas to be worked on are Park Ridge (2009), Parlc Valley (2010) and Presidential South (2011). Ms. Harkess noted that one bond gets paid off in 2011, which "evens out" the projected bond issue in 2010. Water Fund Ms. Harkess noted the projections for this fund are from City Engineer Bradford's master plan, which was brought before the Council earlier. Ms. Youakim asked about the negative working capital amounts. Ms. Harkess will check with Mr. Bradford; Mr. Getschow noted those amounts "go into the black" in 2017. Ms. Harkess said in figuring the plans, one can use depreciation or capital -one can't use both. Answering Ms. Youakim, Mr. Stadler said no federal monies are available. Storm Sewer Fund Ms. Harkess noted the big expense is always Met Council fees. Mr. Stadler said they are projecting a 4.9% increase next year. Refuse Fund. Answering Mr. Brausen, Mr. Getschow noted recycling rates are not covering the expenses. Mr. Brausen said he would like another brief session on recycling. Mr. Stadler noted the current contract ends in 2009. The City gets money back on the sale of paper and aluminum refuse, and the City will make money on that this year as prices for those have gone up. He added Waste Management is no longer the only refuse company offering single-stream recycling. Mayor Maxwell said he would like to have the Council review the 2009 and 2010 projects before the CIP is brought forward for approval. Downtown Discussion June 24, 2008 Page 3 Ms. Elverum said she wanted an open and free flowing conversation about downtown with the Council. She noted Hopkins' vacancy rate (given as 2.28%) is being used as a marketing tool. She briefly reviewed the vacancies in downtown Hopkins, both for lease and sale, noting there is a link from thinlchopkins.com website to the available property listings. There was general discussion about the west end of downtown. Answering Mr. Brausen, she said she talks mostly to real estate agents about vacancies. Answering Mayor Maxwell, she said she had talked to the owner of the Best Buy location and will continue to do so. Mayor Maxwell said that while a few big businesses are moving out, Block 64, the Beard group projects and Cargill will help reverse that. Mr. Getschow noted one problem is some buildings are fully occupied, yet owners keep up "for lease" signs. Mr. Brausen commented that as opposed to other years of higher vacancies on Mainstreet, we now have more things in place to help the situation, such as the Art Center, the theater, the 7th to 8th area. The biggest help is the City taking a proactive role now. He likes the information packet Ms. Elverum and her staff have developed for prospective businesses. He feels Mayor Maxwell's idea to lobby for a Highway 169 exit to Mainstreet is important. He feels more dialog with owners would be helpful. Ms. Elverum said Baby Grand outperforming its other location was a sign Hopkins is a good business location. She added she does "new business visits." Ms. Beard says the marketing committee is discussing how to let vehicles on Highway 7 and Excelsior Blvd. know about Hopkins. The Burma Shave concept and large signs with removable banners for special events have been discussed. Ms. Elverum asked if money for signage is in the CIP; Mr. Getschow said that will need to be discussed. Mayor Maxwell said he does not feel a survey would bring in more information. Ms. Elverum commented the success of Baby Grand will help marketing. Mr. Brausen added there is more competition now, such as Excelsior & Grand, Wayzata's lakefront. He feels awell-known restaurant is needed. Ms. Elverum said she thinks entertainment destinations would be very good, especially with LRT coming in the future. There was a general discussion on demographics. Mayor Maxwell commented that years ago he was told "get a building on 169 that defines Hopkins and everything will change." Now we have Cargill at Excelsior Crossings. Mr. Getschow commented in other parts of the country, where city revenue is based on sales tax rather than property tax, cities concentrate much more on attracting new businesses. Mayor Maxwell said that meeting with Duke, Opus, Walsh, etc. to discuss what they feel Hopkins should do might be helpful. Ms. Elverum said she has talked to the Beard Group about that. Mr. Brausen said it would be nice if Council members, etc., have something they could hand out to business owners. Ms. Youakim suggested a Citizens' Development Task Force, with members rotating each year, could be very good. Answering Mayor Maxwell, Ms. Elverum said HBCA did a survey three years ago. Ms. Youakim suggested a Twin West Chambers survey. She also suggested a walking traffic count be taken. Other June 24, 2008 Page 4 There was discussion about the Interlachen resident who owns a 2-lot property and wants to rebuild the house. City Planner Anderson needs to know how the Council feels about requiring a replatting or changing city ordinances to allow restrictive covenants. The city attorney suggested the covenants as a viable option to replatting. Council consensus was to continue require replatting. Ms. Elverum gave a Habitat update. They have gotten approval for further funding; the problem is the lending organization (MHFA) is a land banking group that requires the land stay idle for a period of time before building starts. The City would get its money as scheduled, but $5000 less per lot. There was discussion if the City should go ahead with Habitat or not pursue that purchase and put the lots up for sale again. Council consensus was to continue to pursue the purchase with Habitat. Ms. Elverum noted the City received an offer on the middle lot for sale on 20t~' Avenue. Mr. Brausen said he would like another CIP project, cameras in the parking ramp. Mr. Getschow said that is being taken care of right now. IT Director Hepp is working on a wireless network. The cost should be about $20,000 and may be able to be put into the ERP or general fund budget. The system will include other public facilities and should be done by the end of the year. Ms. Halverson asked about the 2008 U.S. Women's Golf Tournament. Mr. Getschow provided an update. Mr. Getschow noted the Cargill site sidewalks are under discussion as they are very expensive. The distressed shrubs at the Highways 5/75 intersection will be replaced if necessary. Waste Management is using two-person crews because the swing arm cannot operate correctly in the narrow alleys. The cracks in the Art Center sidewalk were repaired right after construction; the marks are from the sealer that was used. Staff will see if they can find a paint that will disguise the sealant better. On motion by Mr. Brausen and second by Ms. Youakim, the meeting adjourned at 10:05 p.m. on a vote of 4-0. Kasey Koster, Secretary COUNCIL MEMBERS: ATTEST: Eugen . Ma ell, Mayor