07-16-2013 WSMINUTES OF THE CITY COUNCIL WORK SESSION
Tuesday, July 16, 2013
Raspberry Room — 6:30 p.m.
The meeting was started at 6:32 p.m. Present were Mayor Maxwell and Council members Molly
Cummings, Jason Gadd and Kristi Halverson, City Manager Mike Mornson, Assistant City Manager
Jim Genellie, City Clerk Kris Luedke, Finance Director Christine Harkess, Director of Economic
Development and Planning Kersten Elverum, Captain Brent Johnson and LTD representative Jeremy
Hale.
New business:
Brew -Pub Discussion
Ms. Luedke presented background information regarding the "brew pub" type liquor license and
gave an overview of the draft ordinance. Since the last meeting, staff has met with the Co -
Founders of LTD (Live the Dream) Brewing Company, Mr. Jeremy Hale and Mr. Blake Verdon
who are interested in opening a brewer taproom in Hopkins. LTD would like to be open later
hours on Friday and Saturdays. Staff is recommending that the hours of operation be the same as
other on -sale liquor license establishments. The Hopkins Zoning and Planning Commission will
be reviewing the City Zoning Code in regards to the zoning for an on -sale brewer taproom
license in the B2 and B3 district. Ms. Luedke reviewed the annual fees.
Mr. Hale representing LTD Brewing Co. presented his business plan to the Council. Mr. Hale
gave an overview of their brewing background, possible locations, entertainment ideas, lounge
area, brewery tours, family friendly location and types of alcoholic and non-alcoholic beverages.
Mr. Hale gave an overview of their business strategy including size, sales focus and business
development plan and timeline. Mr. Hale reviewed the dream of LTD to make downtown
Hopkins a destination, involvement in the community, provide employment opportunities for
special need individuals, utilize local ingredients and host homebrew contests. Mr. Hale gave an
overview the types of brews, brewing equipment and targeted location to be within '/2 mile of
SWLRT. Mr. Hale asked the Council to consider waiving the food requirement for the brewpub
stating that the 10% food requirement would be associated with mediocre food and take away
from the overall brewpub experience. LTD would like to promote area restaurants by allowing
brewpub patrons to bring in food from local restaurants.
There was much Council discussion regarding the types of food sales allowed and the Hennepin
County Health Department ordinances. Staff will investigate the Health Department regulations.
Mr. Genellie addressed the Council regarding the idea of waiving the food requirement. Staff
initially was not in favor of the taproom only option but has considered the option LTD is
proposing of partnering with area restaurants and allowing patrons to bring in food as a way to
grow its business while building partnerships with existing businesses.
There was Council discussion regarding state requirements of alcohol content, extending hours
of operation on Friday and Saturday to 12 am, difference between a brew pub, tap room & bar,
location options, storage, types of home-made soda and what accounts for food sales.
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Mr. Genellie discussed with Council the specialty aspect of the LTD business model. The
Brewpub can only sell what they produce; it does not offer full bar options. The idea of
partnering with area restaurants will allow the brewpub to offer patrons an option to bring in
better quality food.
Ms. Luedke gave an overview of the next steps and timeline for the ordinance. The City Attorney
is currently reviewing the draft ordinance.
Council directed staff to notify bar owners and get their comments regarding the proposed
ordinance. Council asked that LTD co-founders reach out to the local bar & restaurant owners
regarding their business plan. Council also suggested that the LTD co-founders discuss their
plans with the Fire and Inspection Departments prior to entering into a lease agreement and start
to develop a relationship with the Hopkins Police Department.
The first reading of the ordinance with no food percentage requirement will be on City Council
agenda on Tuesday, July 23. Council asked Mr. Hale to present the LTD brewing business plan
at the July 23 City Council meeting.
Budget Review and Discussions
(a) ERP Review
Ms. Harkess gave a summary of the changes to the ERP 2014-2018 plan, reviewed the ERP fund
by department and gave an explanation of the equipment replacement needs. Ms. Harkess
summarized the changes from the 2013 plan.
Ms. Harkess addressed the need for new Finance Department software to meet the needs of all
departments and generate needed reports. Finance is currently investigating different software
options and costs.
Captain Johnson addressed the Council regarding the leasing rather than purchase of unmarked
police vehicles. The cost savings of leasing vehicles would be approximately $14,000/year
despite the addition of four vehicles. Captain Johnson gave an overview of funds generated by
the drug task force that will be used pay for a vehicle, need for a dedicated vehicle for the School
Resource Officer, ability to utilize more fuel efficient vehicles, opportunity to use vehicles for
surveillance that do not look police associated and the equipment utilized by unmarked vehicles.
Council discussed the lease agreement, continued maintenance of vehicles by city staff, resale of
vehicles at end of lease, average price received for vehicles sold at auction in the past, grants for
equipment and discussion of forfeiture funds. The Police Department will be disposing of the PT
Cruiser vehicle due to maintenance issues and it will not be replaced.
Mr. Stadler addressed Council regarding Public Works equipment, replacement needs and refuse
fund equipment needs.
Ms. Harkess provided an explanation of the financial stability of the ERP, how the 2014 sales tax
exempt status will affect the city, equipment certificate payments, bond issue and the Financial
Management Plan that will get equipment in the CIP and ERP into a master plan.
Council will continue to review the ERP and will contact staff with any questions. Council
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Council will continue to review the ERP and will contact staff with any questions. Council
suggested that staff check with the school district to assist with needed hockey improvements at
the Pavilion. The ERP is scheduled on the City Council agenda for August 5, 2013.
(b) Franchise Fees, Increase for Park Fees
Ms. Harkess addressed the Council regarding the impact of a $0.50 increase on franchise fees
with the funds dedicated to park improvements. Ms. Harkess discussed how the rate increase
impacts the general fund, street projects & park dedication fund as well as the timeline needed
for a proposed franchise fee approval. The utility companies require a minimum of 90 days.
Mr. Mornson suggested holding a joint work session on August 5 with the Park Commission and
City Council to discuss the park dedication fund and needed park improvements.
Mr. Stadler reviewed with Council the Park Board discussion regarding the need for a stable
funding source for the parks and needed improvements.
Council discussed the need to inform residents of park funding & improvement needs and
encourage residents to get involved in process. Council discussed amount of funds needed to
update the park equipment, grants, fees vs. bonding and continued review of franchise fees every
two years. There was much Council discussion regarding the need for steady revenue for park
improvements, inviting neighborhood input, importance to reach out to residents and to have a
solid plan in place regarding park improvement needs. A presentation regarding the franchise
fees and park dedication fund will be scheduled for August 20 City Council meeting.
(c) CIP Review
Ms. Harkess reviewed the 2014-2018 CIP & summary of changes, cash flow by fund and the
2014 through 2018 proposed projects. Ms. Harkess reviewed the added PIR project and funding
for Mainstreet rehabilitation, West Park Road & Hobby Acres. Mr. Stadler discussed the
Mainstreet rehabilitation project; which includes signal upgrades, crosswalks, sidewalks,
improvements of walking and driving surfaces, and signage. The project cost is approximately 2
million; 1.5 budgeted and $500,000 grant has been applied for. There was Council discussion
regarding the options of using MSA funds if the grant is unsuccessful. A public meeting is
scheduled for fall. Mr. Stadler gave an overview of future street projects.
Ms. Harkess reviewed the future projects, rates, funding sources of the Municipal State Aid Fund
(MSA), Water Fund, Sewer Fund, Storm Sewer Fund, Facilities & Buildings, Pavilion and
Communications Fund.
There was Council discussion regarding franchise fees for streets helping to keep taxes down, tax
levies and LGA funding. The CIP will be presented at the August 5 City Council meeting.
Other
• Discussion of 2013 Street & Utility Project.
• Staff will be meeting with MetCouncil to discuss Lift Station.
• Mr. Stadler will discuss with Council the resident input regarding buffer and landscaping along
Shady Oak Rd and West Park Road Project.
• Discussion of Shady Oak Road construction project, pond & house removal process.
• Council discussion of a resident concern regarding new home design being built on 11th
Avenue N.
• Council discussion regarding touring a brewpub similar to LTD proposed plan.
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With no further business to discuss there was a motion by Council member Cummings and a
second by Council member Gadd to adjourn the meeting at 9:36 p.m.
Respectfully Submitted,
Debbie Vold
CITY OUN I
ATTEST:
0� e
Eugene J. a ell, Mayor Kristine A. Luedke, City Clerk