09-03-2013 CCA regular meeting of the Hopkins City Council was held on September 3, 2013, in the Council
Chambers of the Hopkins City Hall. Present were Mayor Maxwell, Council Members Cummings,
Gadd, Halverson and Youakim. Also, present were staff members Anderson, Bradford, Elverum,
Genellie, Harkess, Luedke, Mornson and City Attorney Jeremy Steiner.
I. CALL TO ORDER
Mayor Maxwell called the meeting to order at 7:07 p.m.
II. CONSENT AGENDA
1. Minutes of the August 20, 2013 Council Meeting
2. Minutes of the August 20, 2013 Work Session Following the Council Meeting
3. Ratify Checks for the Month of August
4. Second Reading of Renewal of Franchise Ordinance (CR 2013-088)
Council Member Gadd moved and Council Member Youakim seconded a motion to approve the
Consent Agenda. A poll of the vote was as follows: Council Member Cummings, aye; Council
Member Gadd, aye; Council Member Halverson, aye; Council Member Youakim, aye; Mayor
Maxwell, aye. The motion carried unanimously.
III. NEW BUSINESS
1. Approve a Tobacco License for Vaping Studio Inc., DBA, Hopkins Vaping Studio Located at 811
Mainstreet; (CR 2013-074)
Ms. Luedke addressed the Council regarding the tobacco license application to sell e -cigarette
products in conjunction with other general specialty merchandise at 811 Mainstreet. Ms. Luedke gave
an overview of tobacco license requirements. The Zoning and Planning Commission has reviewed
and approved the application.
Ms. O'Neil, a representative of the applicant, came forward and addressed the Council. Ms. O'Neil
gave an overview of the e -cigarette business and types of specialty products they will be selling.
There was much Council discussion regarding types of specialty products, zoning district, and vaping
or exhaling within the vaping studio. Ms. Anderson advised the Council that this use is allowed in the
B-2 zoning district. Staff will also advise the business owner to review the Hennepin County
requirements prior to selling food products. Mr. Steiner advised the Council regarding the tobacco
ordinance and that it is unlawful to exhale in the store per the city tobacco ordinance and that the
definition covers e -cigarettes.
Ms. Anderson discussed with Council the changes that were made to the city ordinance to cover e -
cigarettes and Ms. Luedke gave an overview of the State's definition of e -cigarettes. The State of
Minnesota considers e -cigarettes a tobacco item and are subject to the tobacco product tax. Staff will
review the ordinance with the applicant prior to issuing the license.
Council Member Halverson moved and Council Member Gadd seconded a motion to approve a
Tobacco License for sale of e -cigarettes for Vaping Studio, Inc. dba Hopkins Vaping Studio located
at 811 Mainstreet. A poll of the vote was as follows: Council Member Cummings, aye; Council
Member Gadd, aye; Council Member Halverson, aye; Council Member Youakim, aye; Mayor
Maxwell, aye. The motion carried unanimously.
2. Order Assessment Hearing, 2014 Street Improvements; (CR 2013-092)
Mr. Bradford addressed the Council regarding the 2014 street improvement assessment hearing. Mr.
Bradford gave an overview of the assessment calculation, assessment cap, average assessment, water
& sewer service costs, interest rates, pre -payment of assessments and project schedule. Staff is
recommending ordering the assessment hearing for the project on October 15, 2013. Final plans
would be presented at that hearing along with an updated cost estimate.
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There was much Council discussion regarding presenting the final plans prior to the assessment
hearing, assessments are spread out over 15 -years, reason for 2% above bond cost is to cover
administrative fees and notification of residents regarding ability to pre -pay assessments without
interest. Mr. Bradford discussed with Council that the assessment cap minimizes the risk of assessing
too much and that WSB will be keep residents informed during the construction project.
Council Member Cummings moved and Council Member Gadd seconded a motion to adopt
Resolution 2012-055, Declaring Cost to be Assessed and Ordering Preparation of Proposed
Assessment; and Resolution 2012-056, Resolution for Hearing on Proposed Assessments, 2014 Street
and Utility Improvements, City Project 2013-10. A poll of the vote was as follows: Council Member
Cummings, aye; Council Member Gadd, aye; Council Member Halverson, aye; Council Member
Youakim, aye; Mayor Maxwell, aye. The motion carried unanimously.
3. Preliminary — Final Plat —Dorholt; (CR 2013-090)
Ms. Anderson addressed the Council regarding the proposal to construct a new retail building on
what is now Leaman's Liquor, Nelson's Meats, Bakery and Deli and the Syndicate Sales buildings.
The buildings will be razed and a new retail building will be constructed. With this replatting the
three lots will be combined in one lot and a new building will be constructed. The proposal meets all
the zoning requirements and the Zoning and Planning Commission unanimously approved it.
Council Member Gadd moved and Council Member Youakim seconded a motion to adopt Resolution
13-53, approving a preliminary/final plat for 108, 116, 120 Shady Oak Road. A poll of the vote was
as follows: Council Member Cummings, aye; Council Member Gadd, aye; Council Member
Halverson, aye; Council Member Youakim, aye; Mayor Maxwell, aye. The motion carried
unanimously.
4. Preliminary — Final Plat for 20 and 24 Shady Oak Road; (CR 2013-091)
Ms. Anderson addressed the Council regarding the replatting of 20 and 24 Shady Oak Road.
Syndicate Sales will move from their existing location to the building on Lot 2. With the replat, Lot
2 will consist of the lot with the building and the vacate land to the west of Lot 1. The building on
Lot 1 will be razed and become a parking lot. The Zoning and Planning Commission unanimously
approved the final plat and the lots meet the zoning requirements. There was Council discussion
regarding the ownership of parking lot. Ms. Elverum addressed the Council regarding shared users of
the parking lot and that ownership is yet to be resolved.
Council Member Youakim moved and Council Member Halverson seconded a motion to adopt
Resolution 13-54, approving a preliminary/final plat for 20 and 24 Shady Oak Road. A poll of the
vote was as follows: Council Member Cummings, aye; Council Member Gadd, aye; Council Member
Halverson, aye; Council Member Youakim, aye; Mayor Maxwell, aye. The motion carried
unanimously.
5. Approve 2014 Preliminary Levy and Budget; (CR 2013-089)
Ms. Harkess addressed the Council regarding the 2014 preliminary levy and budget. The Council is
required to certify a proposed tax levy and submit it to Hennepin County by September 16th. Staff is
suggesting December 3, 2013 as an appropriate date to discuss the budget and receive public
comments, allowing time to consider the comments from the public prior to adopting the budget. Ms.
Harkess discussed the new requirement that the city needs to disclose the sales tax paid in 2012 and
what the city intends to do with the sales tax savings. Ms. Harkess gave an overview of the sales tax
exemptions and rules. Ms. Harkess gave an overview of legislative changes regarding Local
Government Aid (LGA) and Levy limits for 2014.
There was much Council discussion regarding the sales tax savings. Council requested a list of what
will be taxed and non-taxable and present an estimate of sales tax savings at the December 3 meeting.
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There was Council discussion regarding the $289,900 LGA the city of Hopkins will receive in 2014
and the $1.8 million in LGA that was cut in 2003.
Ms. Harkess gave an overview of city planning process to put the budget together. Ms. Harkess
reviewed the 2014 proposed budget; a 3.46% increase over the 2013 budget. Ms. Harkess gave an
overview of the general fund expenditures & revenues, percent change from 2013 to 2014 and how
the city achieved a balanced budget by eliminating an $84,000 shortfall. Staff has worked hard to
refine the budget. The preliminary levy for 2014 is 1.12% increase over 2013. Ms. Harkess explained
that the maximum levy set would be the maximum for 2014. Ms. Harkess reviewed the historical tax
increases, levy increase & rate increase for past five years and fiscal disparities changes and how it
affects the tax rate. Ms. Harkess reviewed the next steps in the budget process.
There was Council discussion that the levy could decrease but not increase once it is approved and
that if possible the Council would like to see the increase go below 1.12% prior to the December 3rd
meeting.
Council Member Cummings moved and Council Member Halverson seconded a motion to approve
Resolution 2013-052 approving proposed 2014 tax levy, debt service levies at levels under those
required in the bond covenants, proposed 2014 general fund budget, and setting budget meeting
dates. A poll of the vote was as follows: Council Member Cummings, aye; Council Member Gadd,
aye; Council Member Halverson, aye; Council Member Youakim, aye; Mayor Maxwell, aye. The
motion carried unanimously.
IV. ANNOUNCEMENTS
*September 10, 2013 Work Session will be at the Fire Station at 6:30 pm.
• Three Rivers Park District Sampler on Sunday, September 8, 12-5 pm at Hopkins Depot and Shady
Oak Beach.
• Overview of upcoming concerts at the Hopkins Center for the Arts.
Mayor Maxwell closed the meeting at 7:56 pm to discuss possible litigation.
Council Member Youakim moved and Council Member Gadd seconded a motion to adjourn the
closed meeting. The closed meeting was adjourned at 8:39 pm.
V. ADJOURNMENT
There being no further business, Council Member Halverson moved and Council Member Cummings
seconded a motion to adjourn the meeting. The meeting was adjourned at 8:39 p.m.
Respectfully Submitted,
Debbie Vold
ATTEST:
Eugene J. M well, Mayor
COUNC L MEMB RS
Kristine A. Luedke, City Clerk
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