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09-05-2023 City Council MeetingHOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS SEPTEMBER 5, 2023 CALL TO ORDER Pursuant to due call and notice thereof a regular meeting of the Hopkins City Council was held on Tuesday, September 5, 2023, at 6:31 p.m. in the Council Chambers at City Hall, 1010 1st Street South. Mayor Hanlon called the meeting to order with Council Members Beck, Garrido and Hunke attending. Council Member Balan was absent. Others attending included City Manager Mornson, Assistant City Manager Lenz, Deputy City Clerk Osman, Finance Director Bishop, City Planner Krzos, Planner Howard, Economic Development Director Elverum, Special Projects and Initiatives Manager Imihy Bean, Fire Chief Specken and City Attorney Riggs. ADOPT AGENDA Motion by Garrido. Second by Beck. Motion to Adopt the Agenda. Ayes: Beck, Garrido, Hanlon, Hunke Nays: None. Absent: Balan. Motion carried. PRESENTATIONS III.1. Adopt a Proclamation Recognizing September 15 to October 15 as Hispanic Heritage Month; Imihy Bean Special Projects and Initiatives Manager Imihy Bean summarized Council Report 2023- 093. Hispanic Heritage Month is an annual observance in the United States that celebrates the cultural contributions, achievements, and history of Hispanic and Latino Americans. Motion by Garrido. Second by Hunke. Motion to Adopt a Proclamation Recognizing Hispanic Heritage Month. Ayes: Beck, Garrido, Hanlon, Hunke Nays: None. Absent: Balan. Motion carried. CONSENT AGENDA Motion by Hunke. Second by Garrido. Motion to Approve the Consent Agenda. 1. Minutes of the August 15, 2023, City Council Regular Meeting Proceedings 2. Ratify Checks Issued in August 2023; Bishop Ayes: Beck, Garrido, Hanlon, Hunke Nays: None. Absent: Balan. Motion carried. NEW BUSINESS VII.1. Rail Facility Review/Shady Oak Station Update; Krzos City Planner Krzos summarized Council Report 2023 -088. The Metropolitan Council via Metro Transit’s METRO Green Line Light Rail Transit (LRT) Extension project is HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS SEPTEMBER 5, 2023 proposing to construct an approximately 24,000 square foot maintenance facility at 1515 6th Street South. Council Member Beck clarified that the resolution proposed tonight is not a land use approval, City Planner Krzos clarified that tonight’s presentation is an opportunity to provide feedback on the proposed plans. Ryan Kronzer, Assistant Director for Design and Engineering, Jim Alexander, METRO Green Line LRT Extension Project Director, and Joe Johnson, Design Lead from the Metropolitan Council provided an update on METRO Green Line LRT Extension construction and Shady Oak Station. Mayor Hanlon complimented Metropolitan Council staff for their responsiveness to opening trails in this area. Mayor Hanlon asked about how long the deferral of parking on the parcel labeled “Deferred Parking” might be. Mr. Alexander responded that they are still having conversations about what this parcel might look like in the future, and that the timeline is unknown. Mayor Hanlon expressed that he desires Hopkins to continue to be a part of the conversation regarding the future of this parcel. Council Member Beck noted that there is frustration about the timeline of the project, that property within Hopkins has been taken off the tax rolls without benefit to the City, and that the project is overbudget. He wondered what the Council should tell upset residents regarding the project challenges. Mr. Alexander expressed that he hears the concerns, is also frustrated but the new timeline is 2027, and the timeline is over 70% complete. He noted that Hennepin County and the Metropolitan Council are working through funding challenges to complete the project. Mayor Hanlon recognizes that there are frustrations with the project, but wants to look ahead to how to move forward and catalyze on the opportunity in front of the City. Mayor Hanlon asked whether or not they have looked at Inflation Reduction Act (IRA) dollars were available to increase sustainability like solar and Air-Sourced Heat Pumps. Mr. Kronzer said yes, they would look into this. Council Member Hunke complimented the new design and pedestrian-oriented design but encouraged them to include solar and sustainable design elements such as decreasing the asphalt on the site. Council Member Beck also agreed the design was better but wanted to especially thank City Staff for getting this item in front of the City Council despite it not being required by State law, as he feels that Council and Staff review has improved the project significantly. Council Member Garrido requested clarification about the area identified as a future building expansion and it was clarified amongst the Council, that yes this might be a building expansion. Motion by Hunke. Second by Garrido. Motion to Adopt Resolution 2023-029 finding that the proposed Hopkins Rail Support Facility is consistent with the Comprehensive Plan. Ayes: Beck, Garrido, Hanlon, Hunke Nays: None. Absent: Balan. Motion carried. VII.2. First Reading: Ordinance 2023-1198 Amending Chapter 102 of the City Code Regarding Attached Garage Setbacks for New Construction in N3-B Zones; Howard Planner Howard summarized Council Report 2023-087. In July of 2022, the City’s zoning code update established new provisions related to setbacks for attached garages relative to the main principal building’s front façade in neighborhood zones and the allowed locations for garage doors in order to encourage development that is human-scaled and pedestrian-oriented. Specifically, the code update originally required attached garages in N3-B, Small Lot Traditional Neighborhood zones to be set back 30 feet from t he main HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS SEPTEMBER 5, 2023 principal building’s front façade and only allowed garage doors to be located on the rear, side, or side street façade. These standards reflect that most properties located in N3-B zones are served by improved alleys. However, this presented design challenges to properties in N3-B zones that are not served by an improved alley, including a home proposed at 13 Harrison Avenue South for which variances were requested. Council Member Beck commented that the porch idea was a nice addition. Council Member Hunke clarified that this only applied to new construction, thus limiting the number of homes which would be applicable under this ordinance. Motion by Beck. Second by Garrido. Motion to Adopt for First Reading, Ordinance 2023-1198 Amending Chapter 102 of the City Code Regarding Attached Garage Setbacks for New Construction in N3-B Zones. Ayes: Beck, Garrido, Hanlon, Hunke Nays: None. Absent: Balan. Motion carried. VII.3. First Reading: Ordinances Adopting Gas and Electric Franchise Fees Beginning on January 1, 2024, Bishop Finance Director Bishop summarized Council Report 2023-091. City Council has had four meetings to discuss gas and electric franchise fee ordinances that expire on December 31, 2023. City Council directed staff to increase fees for a five-year term and to continue subsidizing the general fund and supporting the parks and capital improvement funds. City Council was in support of increasing the fees for parks and sustainability. City Council directed staff to pursue a franchise fee model based on utility revenues. Mayor Hanlon noted that they have gone back and forth on this issue to ensure the charges were not regressive, he complimented staff on the final proposal but acknowledged that larger utility users may have sticker shock on the increase. Council Member Beck also appreciated the new proposed schedule and the potential sticker shock, but also noted that we were much below other communities on what the City charges for Franchise Fees. Gary Devan, 16th Avenue North, Hopkins, voiced support for the franchise fees and the use of the Hopkins Climate Solutions Fund. Motion by Beck. Second by Hunke. Motion to Adopt for First Reading on An Ordinance Setting a Franchise Fee on Electric Operations within the City of Hopkins – Northern States Power D/B/A Xcel Energy. Ayes: Beck, Garrido, Hanlon, Hunke Nays: None. Absent: Balan. Motion carried. Motion by Hunke. Second by Garrido. Motion to Adopt for First Reading on An Ordinance Setting a Franchise Fee on Gas Operations within the City of Hopkins – Center Point Energy Resources Corporation D/B/A CenterPoint Energy Minnesota Gas. HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS SEPTEMBER 5, 2023 Ayes: Beck, Garrido, Hanlon, Hunke Nays: None. Absent: Balan. Motion carried. PUBLIC COMMENT The following residents shared their concerns with the health, safety, welfare and fees at their rental units owned by IPG Properties: Lee Vang, 1010 Lake Street NE, Apt. #603; Gavin Lawrence, 1010 Lake Street NE, Apt. #415; Allana Quaday, 1010 Lake Street NE; Julia Bakken, 1010 Lake Street NE, Apt. #707; Kayla Boswell, 1010 Lake Street NE, Apt. #411; Catherine Cross, 1510 Mainstreet, Apt. 104; Elaine (last name not provided) 1510 Mainstreet; David Knol, 1510 Mainstreet, Apt. 405; Joy Iwaszko, 460 5 th Ave. N., Apt. 201; Rachel Kindt, former resident at 1510 Mainstreet; Dustin Fader, 1010 Lake Street NE; and Chad Sweeny. Mayor Hanlon and Fire Chief Specken acknowledged the comments and concerns raised by the residents. Staff will continue to work with IPG Properties on these matters. ANNOUNCEMENTS Mayor Hanlon reviewed the upcoming meeting schedule. ADJOURNMENT There being no further business to come before the City Council, and upon a motion by Beck, second by Garrido, the meeting was unanimously adjourned at 8:22 p.m. Respectfully Submitted, Amy Domeier, City Clerk