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2018-047 Resolution Approving the Second Reading of Ordinance 2018-1132 amending sections 520 of the city code related to Solar Energy Systems and authorizing its Publication CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION NO: 2018-047 A RESOLUTION APPROVING THE SECOND READING OF ORDINANCE 2018-1132 AMENDING SECTIONS 520 OF THE CITY CODE RELATED TO SOLAR ENERGY SYSTEMS AND AUTHORIZING ITS PUBLICATION WHEREAS, the City of Hopkins initiated an application to amend the Zoning Ordinance related to Solar Energy Systems; and WHEREAS, the procedural history of the application is as follows: 1. The Hopkins Planning & Zoning Commission reviewed the SolSmart Program during their July and August 2017 meetings; and 2. That the Hopkins City Council reviewed and discussed this item during their September 5, 2017 meeting; and 3. That an application to amend the Zoning Ordinance related to Solar Energy Systems was initiated by the City of Hopkins on December 22, 2017; and 4. That the Hopkins Planning & Zoning Commission reviewed and heard presentations on such application during the January 23 and February 27, 2018 meetings; and 5. That the Hopkins Planning & Zoning Commission, pursuant to published notice, held a public hearing to review such application on March 27, 2018 and all persons present were given an opportunity to be heard; and 6. That during the March 27 meeting, the Hopkins Planning & Zoning Commission voted to continue this item until their April 24, 2018 meeting to allow more time for study; and 7. That the Hopkins Planning & Zoning Commission, continued the public hearing to review such application on April 24, 2018 and all persons present were given an opportunity to be heard; and 8. That written comments and analysis of City staff were considered; and 9. That the Hopkins Planning & Zoning Commission voted 5-0 to recommend the Hopkins City Council approve an ordinance amending the zoning standards for Solar Energy Systems; and 10. That the City Council approved the first reading of this item on May 1, 2018; and 11. The City Council of the City of Hopkins held a second reading of this ordinance during the May 15, 2018 City Council meeting; and 12. The written comments and analysis of City staff were considered. WHEREAS, Minnesota Statutes, Section 412.191, Subd. 4, allows publication by title and summary in the case of lengthy ordinances; and WHEREAS, the City Council finds that the following summary would clearly inform the public of the intent and effect of the Ordinances. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hopkins hereby approves the second reading of Ordinance 2018-1132 amending Sections 520 the City Code related to Solar Energy Systems based on the findings detailed in City Council Report 2018-051. NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City Clerk shall cause the following summary of Ordinance 2018-1132 to be published in the official newspaper in lieu of the entire ordinance: Public Notice In summary, Ordinance 2018-036 makes the following changes to Sections 520 the City Code related to Solar Energy Systems: 1. Establishes the purpose and intent behind the proposed regulations. 2. Defines specific terms associated with Solar Energy Systems. 3. Details allowable uses by zoning district. 4. Creates specific performance standards for Solar Energy Systems. 5. Outlines a review process and necessary application materials. 6. Places reasonable limits on private groups to restrict Solar Energy Systems and encourages protection of solar access through easements. Adopted by the City Council of the City of Hopkins this 15th day of May 2018. /1L4G l. �' Molly Cuthmings, Mayor ATTEST: irMAU rJTh Amy Domeier, City Clerk HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS MAY 8, 2018 CALL TO ORDER Pursuant to due call and notice thereof a regular work session of the Hopkins City Council was held on Tuesday, May 8, 2018 at 6:52 p.m. in the Raspberry Room at City Hall, 1010 First Street South, Hopkins. Mayor Cummings called the meeting to order with Council Member Campbell, Gadd, Halverson and Kuznia attending. Staff present included City Manager Mornson, Finance Director Bishop, Assistant City Manager Lenz and Public Works Director Stadler. FMP UPDATE WITH EMPHASIS ON FRANCHISE FEES RENEWALS AND FINANCING THE CITY HALL PROJECT Finance Director Bishop updated the Council on the franchise fee renewals and financing for the city hall project. Mr. Bishop gave an overview of what franchise fees are and showed examples of what city franchise fees look like on a utility bill. Mr. Bishop explained that franchise fees are revenue used to provide city services and that franchise fees can be used for any public purpose. Mr. Bishop explained that Hopkins franchise fees are used to reduce the tax levy in the General Fund and for park improvements. The proposed 2019-2023 increase is $1.00/month for residential customers. The proposed increase would go into the Capitol Improvement Plan (CIP) that includes $1.1 million in projects. The increase could fund the City Hall improvements. Mr. Bishop discussed the other options including no franchise fee increase or phasing in a larger increase over the next several years. Mr. Bishop discussed the unknowns of future legislation regarding franchise ordinances. Mayor Cummings asked about the franchise fees legislation. Mr. Bishop explained that the new legislation would apply to a franchise agreement over a 5-year period and any ordinances passed after August 1, 2018. Council Member Gadd commented that the legislation could dictate that franchise fees could only be used for the purpose for which they are being collected. Mr. Bishop discussed the future actions for the proposed ordinance and timetable. There was discussion about the cable fund and nonresidential franchise fee comparisons to neighboring cities. Assistant City Manager Lenz discussed the SW Cable commission and communication uses. Mr. Bishop would update the Council on nonresidential franchise fee comparisons. Council consensus is to renew the franchise fee. Council commented that the franchise fee is an important tool to continue infrastructure improvements and that the fee is shared by everyone. Mr. Bishop will send the Work Session presentation to Council for further consideration and discussion at the next Work Session. City Hall project Mr. Bishop discussed the costs of the City Hall renovation project, previously planned projects and available funding sources. The base renovation costs are $3,500,000 with additional costs the project total would be $4,270,000. Mr. Bishop commented that HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS MAY 8, 2018 property taxes and franchise fees are appropriate funding sources. Mr. Bishop discussed the tax impact to the medium value residential home and the City Hall construction timetable. Assistant City Manager Lenz discussed the contingency plans and costs. City Manager Mornson asked what franchise fee increase would be required to pay for the entire City Hall project. Mr. Bishop estimates a $1.50 franchise fee increase. Mayor Cummings discussed the concern of legislative changes to franchise fees. Mr. Bishop commented that if the City would lose franchise fees then the renovation project would have to be paid for by raising the tax levy. Council Member Kuznia asked about how to increase franchise fees. Mr. Bishop commented that franchise fees could be increased in steps. Mayor Cummings asked how the increase fits with the overall Financial Management Plan (FMP). Mr. Bishop discussed how the $1.00 per month increase would affect the tax levy. Mr. Bishop commented that staff is updating the estimates for the 2019-2023 CIP. There was discussion how the park improvement fund depends upon franchise fees and park dedication fees to fund park projects. Park improvement funds are dependent on development projects and the fees are negotiated and cannot be counted on. Options would be to delay the park project or use tax levy to fund project. There was Council discussion about the following questions: 1. Costs to the City if SWLRT happens and how these will be funded? Mr. Bishop reviewed the SWLRT agreements, cost estimates and funding. Mayor Cummings asked about bonding for the anticipated costs. Mr. Bishop commented that the City would cover costs with cash flow and then group the costs with the next bond the City issues. Mr. Bishop discussed the audit and base rating relating to how much cash the City has on hand. 2. Costs to the City if the SWLRT does not happen and how will these be funded? Mr. Mornson discussed the CMAQ grant and the negotiations between Met Transit and Doran Properties for the Moline Parking Ramp. Mr. Bishop commented that the funding plan for the ramp if SWLRT falls through would be to issue General Obligation and TIF bonds. There was discussion about the City's funding commitment and that Council needs to be aware of the worst-case scenario. Mr. Bishop discussed the fund obligations, CMAQ federal requirements and TIF Districts. 3. Anticipated road project costs for next 3 years? There was discussion of road project costs and funding. 4. Total expected bonding costs without City Hall upgrades? Mr. Bishop reviewed the CIP for the next three years. HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS MAY 8, 2018 5. Central Park funding source beyond the Park Dedication Fund? Public Works Director Stadler commented that for the park improvements to be a viable program it needs revenues from franchise fees and park dedication fees. The amount of park dedication fees is specific to each development project. 6. What if franchise fees are disallowed? Mr. Bishop commented that if franchise fees became disallowed as a funding source the City would need to cut services or increase fees. 7. Hopkins Center for the Arts continued losses? Mr. Bishop's recommendation is to continue to fund the Arts Center and take the Arts Center out of the deficit. There was discussion that the Arts Center's projected loss continues to trend towards the positive. 8. City bond over last 6 years? Mr. Bishop reviewed the bonding amounts. 9. City levy increases over last 6 years? Mr. Bishop reviewed the levy increases. 10. Ongoing costs of the Class and Comp study? Mr. Bishop commented that labor contracts are still in negotiation and staff would have more accurate information on the impact once contracts are settled. Council commented on the importance of looking at the big picture and the impacts going forward. There was Council discussion about increasing the franchise fee and getting the fee closer to neighboring cities. Mr. Bishop would update the Council on different franchise fee scenarios and look at the allocation between commercial and residential franchise fees. Assistant City Manager Lenz discussed the next steps for the City Hall renovation project. There was Council discussion about the City Hall project making offices work flow friendly, staff retention, front entry improvements and it would be more efficient to do all the improvements at time of construction. Council needed more time to evaluate the information before making a decision. There was discussion about the importance of understanding the funding and resolution to the parking ramp agreement that still need to be finalized. There is a potential for steep cost increases. Council will continue to study the information and address questions with city staff. Ms. Lenz discussed the City Hall timetable commenting that pushing the decision date back to June 5 would not have much impact and keep the project moving forward. The 2019 City Hall construction year schedule works well with the election timeframe. HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS MAY 8, 2018 Mr. Mornson commented that Finance Director Bishop would present the Quarterly Financial Report and discuss the franchise fees renewal at the next City Council meeting. Council would then have time to follow up with questions and then schedule June 5 to continue the process for the City Hall renovation project. UPDATES • Council Member Kuznia and Council Member Campbell gave an overview of the Cold Storage area developer selection process. • Council Member Halverson discussed a resident complaint about bird noise. • Council Member Kuznia commented that the Interlachen neighborhood is completing the paperwork to adopt Interlachen Park. • Council Member Gadd discussed a resident concern of regarding debris in Park Valley Park. • Council Member Gadd would be attending the Cargill Learn graduation. • Council Member Campbell discussed Cultivate Hopkins and complimented City Planner Lindahl for all his work on the City's comprehensive plan. • Mayor Cummings asked about surveys from the Hopkins Academy. Assistant City Manager Lenz would update the Council. • Mayor Cummings discussed recent and upcoming meetings and events. • Mayor Cummings commented that the ResourceWest Spring Fling event was successful. • Mayor Cummings shared an invitation with Council to attend a Raspberry Festival Senior Royalty brunch on June 13. City Manager Mornson gave the following updates: • Volunteer dinner agenda. • Overview of presentations on the next City Council agenda. • Discussion of a local organizations concerns regarding the Charitable Gambling Amendment. • Discussion of the neighborhood meeting regarding next year's street improvement project. The Council discussed the Planning and Zoning Commission interviews and candidates. The Council selected two commission members and one alternate member. ADJOURNMENT There being no further business to come before the City Council and upon a motion by Kuznia, second by Campbell, the meeting was unanimously adjourned at 9:27 p.m. Respectfully Submitted, • Debbie Vold ATTEST: .4/6Molly Cummings, Mayor Amy Domeier, City Clerk