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Minutes - 7/24/2001 City Council Work Session July 24, 2001 Page 1 MINUTES CITY COUNCIL WORK SESSION - JULY 24,2001 A work session of the Hopkins City Council was held at 6:30 p.m. on July 24, 2001, at the City Hall. Council members present were Mayor Maxwell and Council members Brausen and Jensen. City personnel present were. City Manager Mielke, Finance Director Yager, Public Works Director Stadler, Police Chief Reid, and Captain James Liddy. Public Works/Police/Fire Facilities Discussion & Budget/Levy Discussion Ms. Yager said she would discuss both of these together as the facilities construction would affect the levy. Current estimates of the total bond issue needed for the facilities construction would be $11,770,000, based on a $150 per square foot cost. Of the $2,555,000 for the Public Works addition, $800,000 could be taken from public works funds. There are two major ways to approach the funding. One is by regular referendum. The other would be byHRA lease revenue bonds, which would cost the city more and would put a larger burden on the businesses, but would cost less for homeowners. Later she explained.HRA is aGtually a lease sO rating agents give it a higher risk rate, thus the higher cost in the end. Part of the problem in discussion is that the effects of the recent legislation have not yet been fully explained. She later added the state says she will get final figures in September as to levy limit, final tax capacity, tax increments, etc. While the state granted Hopkins $50,000 in additional local government aid in replacement of allowing the city to apply a 'food and beverage" tax, this was directly associated with Art Center operations. Levy limits have been replaced, but what Hopkins' limitwill be is unknown at this time. If the city is allowed to keep its 2000/2001 levy amount, the Art Center will be able to absorbed into the general fund. Her best estimation at this time is that the removal of the state aid will cost the average taxpayer approximately $150 more this year just to maintain current services. She showed several charts of how the new facilities would affect the tax increase. A $12 million bond would cost a resident with a $130,000 home about $12 more per month, and a business owner of $250,000 commercial property $28 more per month beyond the increase caused by the cutting of state aid. A HRA lease bond would costthe same homeowner $9 more per month. Ms. Jensen said her biggest fear is that in the past every time a school referendum has been paired with another referendum the voters have passed the school's and defeated the other one. Chief Reid said that waiting a year would cause his department great problems as he must start the new radio/dispatch systems shortly. In discussing presenting the issue to the public Ms. Jensen felt the police station would be the "easiest to sell." Chief Reid disagreed, saying the fITe trucks can't all fit in their building, that's the easiest to see. Ms. Jensen countered she has heard comments on how wonderful the fITe department is after their open houses. She also said she felt a 3-D model at City Hall would be a big help. Mr. Brausen said the Citizens' Academy would be a good place to educate the public. Ms. Yager said the big issue is whether to go general referendum or HRA lease, explaining later that if the referendum failed HRA lease would be impossible to pursue. She said if the July 24, 2001 Page 2 Council is fully committed to the need of a new facility, the only way to be sure of getting it is by the HRA lease. Ms. Jensen said she HRA lease would be her choice as she fears the facilities would lose on the same ballot with the school. Chief Reid said he felt it would be hard to sell to the public in the time allowed-pointing out all the time he has explained to the Council, and they still had questions. Mr. Stadler said he agreed with Ms. Jensen that the facilities would "lose" against the school referendum. 'He added he would also like the authority to go ahead with detailed planning of his site as at this point Public Works is actually losing some space and he needs to get his staff fully comfortable with the idea. Chief Reid added SEH says that planning would take about 2 months. Mr. Brausen said he was uncomfortable with the effect using HRA might have on the marginal businesses in town, but felt the need was paramount. Mr. Mielke said he feels the public would make up its mind on the referendum vote before they could be fully informed of the city's needs. He suggested using HRA lease, and then educating the public of the needs. Then during budget discussions, if the public was against the increased costs caused by the facilities the Council could go to a referendum. By then the public would have had the big increase due to the cutting of state aid. He felt the fact that HRA lease would be $3 per month cheaper than the general referendum cost could be a selling point for that choice with the public, for then it would be "only $9 more a month." He added Ms. Hesch had communicated to. him she was leaning toward HRA. Mayor Maxwell noted that there would be public flak no matter how, they did it, and the Council had to be committed to the idea fully, and that education before budget hearings would be a necessity. He said if there is a way to get the bond to under $10 million it would be a lot easier to "sell" to the public. Ms. Jensen suggested fund raising might be used, not only for the money it would generate but so that the public would see citizens working for the facilities. General Consensus The HRA lease should be pursued. Public education should be pushed by all three departments so that when the budget discussions, which will incorporate the HRA lease costs, are done, the public will be well informed of the dire need for the new facilities. Mr. Stadler was authorized to go to SEH for more detailed plans, including an analysis of the police remodeling of the fire department building. Vision Process This was postponed until a full Council would be present. Other Skate Park Rental Kathleen Tabor has been approached by a family wanting to rent the skate park for a bar mitzvah for the last three hours on the Saturday after Labor Day. They would like the caterer to serve liquor as well as food. The skaters would be entertainers hired for the event. Mr. Genellie and Ms. Tabor are now putting together guidelines for the August meeting. There was discussion as to whether liquor should be allowed at all. Mr. Brausen and Ms. Jensen were in favor as they feel it is not a "teen run" facility but equivalent to the pavilion. Mayor Maxwell said he had reservations but would not stop the rental. July 24, 2001 Page 3 General Consensus: The guidelines should be presented, and should be sent to the Chemical Health Board for their information the Monday before the meeting. Developer Interviews Each Council member had been asked for a question to be presented at the interviews. Ms. Jensen said hers is "Why do you want to build here?" Mr. Brausen said he has two: "What type of housing are you choosing and why, and will you keep the area's "old world charm"? Are you willing to upsize (include the Lommen property)?" Mayor Maxwell said his is "Are you just a developer who will do the job and say "goodbye" or will you stay here in the community?" Mr. Mielke said Ms. Hesch had left hers with him: . "We know how your development will contribute to the economy of the community, how will it make our community better in other ways?" It was agreed the questions would be discussed and narrowed during their meal before the interviews. Mr. Mielke also informed the Council the request for livable community money was denied. Kirsten is now drafting a letter of protest. Miscellaneous Mr. Stadler gave an update on street work and parking lot work. Ms. Jensen asked that variances philosophy be a future subject. Ms. Jensen moved adjournment; Mr. Brausen seconded. Meeting adjourned at 9:05 p.m. Kasey Kester, Secretary COUNCIL MEMBERS: ATTEST: Eugene J. Maxwell, Mayor .