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01-16-01A regular meeting of the Hopkins City Council was held on January 16, 2001, in the Council Chambers of the Hopkins City Hall. Present were Mayor Maxwell and Council Members Brausen, Jensen, Hesch, and Johnson. Also, present were staff members Mielke, Genellie, Stadler, Gessele, Kerrigan, and City Attorney Jerre Miller, I. CALL TO ORDER Mayor Maxwell called the meeting to order at 7:30 p.m. II. OPEN AGENDA -PUBLIC COMMENTS AND CONCERNS There were none. III. REPORTS -COMMITTEES/COMMISSIONS 1 . Zoning and Planning Commission John Szuba from the Zoning and Planning Commission said that the Commission discussed the Medica Project at their last meeting. Residents expressed concerns about the traffic, the main parcel and the smaller parcel. The greatest concerns were about traffic. Residents of 2nd Ave N were concerned that there would be an increase in cut through traffic. Residents of Monroe were not happy about the possibility of turning Monroe into a cul-de-sac. Concern was also expressed about the traffic going onto and coming off of highway 169. St. Louis and Jackson are used to go around Exc Blvd if there is a train. The plans show those streets going into the parking lot. People will have to go through the parking lot. Residents said that the building should face Exc Blvd. They questioned the use of the small parcel and suggested a trail or small building. Mr. Szuba said that the consultants would be working more on the traffic flow around the site. Mayor Maxwell announced that the HRA had just approved a loan assumption for Driskill's SuperValu and welcomed the Driskills to Hopkins. Mayor Maxwell also thanked the Tait family for 25 years of contributions to the City of Hopkins. IV. CONSENT AGENDA 1 . Minutes of January 2, 2001 Regular City Council Meeting 2. Minutes of January 9, 2001 City Council Work Session January 16, 2001 City Council Meeting Minutes Page 1 3. Miscellaneous License Applications 4. Second Reading, Cable Franchise Ordinances (Memo) Council Member Johnson said that minutes needed to be corrected on page 5, second paragraph. Council Member Johnson is listed as making and seconding the motion. Council Member Hesch questioned the second reading of the cable franchise ordinance. Jim Genellie explained that staff has just received a draft of the right-of- way ordinance and that it has not been forwarded to the cable companies yet. Because of this, the companies have still not had a chance to agree to the conditions of the ordinance. The motion in the memo is to continue the item. Council Member Jensen moved and Council Member Hesch seconded a motion to approve the Consent Agenda. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Jensen, aye; Council Member Hesch, aye; Council Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously. V. PUBLIC HEARING 1 . Lot 500-600 Improvements (CR2001-08) Steve Stadler said that the City Council authorized and reviewed a feasibility report and ordered a public hearing on improvements to lots 500 and 600 and 10th and 1 1 th Aves N. Hearing notices were mailed to all affected property owners. Mr. Stadler said that at the January 9th Work Session, the Council decided that work would continue on determining an acceptable method for assessing property owners for the street and parking lot improvements. For that reason, preliminary assessment calculations have not been included. RLK-Kuusisto has proposed a fee of $25,400 to complete design services. Mr. Stadler reviewed the scope of the project. Assessments have not been determined at this time; however, assessments will not exceed those included in the project feasibility report. The proposed assessment amounts from the feasibility report for street improvements and parking lot improvements are 565,441 and 5134,934.97 respectively. When the project is considered as a whole, the assessments amount to 42% of the total cost. Gary Brown, RLK, appeared to respond to questions. Mayor Maxwell opened the public hearing at 7:48 p.m. John Cooley, owner of the frame shop, said that he liked the plans, but was concerned about the costs. Don Hagen said that the main concern is the cost. January 16, 2001 City Council Meeting Minutes Page 2 Steve Stadler said that the recommendation is that if the motion is made to proceed, the assessment will be determined at a later date and will not exceed what has been stated. The City will pay for the landscaping and the storm sewer improvements, bringing the maximum assessment from seventy percent to a maximum of 42% of the total cost. Bill Hovander, 1 1 t" Avenue, asked why Hance Hardware is required to provide parking and also required to pay the assessment. In answer, Mr. Stadler said that the City is trying to acquire an interest in the parking that is owned by Hance Hardware. Mr. Brown said that those who own parking spaces have been credited for those spaces and will pay a lesser amount. Felix Kerawala, owner of the Boston Garden, said that he feels that it is not right that he will be expected to pay for three times the number of parking stalls that the grocery store is paying for. Sean Anderson, owner of the tattoo shop, is concerned about the cost. Kathy :Rolf, owner of 1009 - 1015 Mainstreet, said that once again, she did not receive notice of the hearing. Her issue was not the cost, but the loss of parking. Mr. Brown said that a total of twenty-eight spaces would be lost. The traffic study that was done showed that the average use of the parking was 48% during regular hours -and 60% during peak times. After seeing that information, most of the business people felt that safety issues were more important. The greatest loss of parking will be along 1 Ot" Ave. Curt Rolf said that the drainage was to him the biggest issue and had not been discussed at the meetings. Mr. Rolf also said that a tree planted behind the building was a problem that had not been discussed. Mr. Stadler said that he was well aware of the drainage problems. He reviewed some of the solutions, and said that a lot of these issues will come out in the design process. Mr. Brown said that drainage would be reviewed with each business owner in the final plan process. Council Member Brausen stated that the block has been adequately represented, that he is personally aware of existing problems with drainage and the tree from personal experience. He is confident that the drainage problems will be resolved. Council Member Brausen also stated that he sat in on several meetings. He was also surprised at the lack of concern over lost spaces, but realized that those present were concerned over safety. The Council is well aware of the cost issues and understands the small businessman's position. Mr. Brausen said that they are well represented on the City Council and that the Council is working well on their behalf. January 16, 2001 City Council Meeting Minutes Page 3 In answer to Mayor Maxwell's question, Mr. Gessele said that notices were sent out on December 26th and that Ms.. Rolf's notice was mailed to 425 Wayside. Mr. Gessele said that as a courtesy, the assessment clerk also mailed notices to the tenants of the buildings. Council Member Jensen moved and Council Member Johnson seconded a motion to close the public hearing. The public hearing was closed by unanimous consent at 8:20 p.m. Mr. Mielke asked Mr. Stadler for clarification on the assessment amount. Mr. Stadler said that the average amount was $0.13 per square foot. This was reduced from over 50.20 per square foot. Costs were lowered by over $80,000 from the time that the informational meetings were held to the time that the project was brought to the Council the first time. In answer to Mr. Mielke's question about the loss of parking, Mr. Brown said that of the 28 spaces that would be lost, 18 of them were being taken from along 10th Ave and that this was because of the safety to vehicles that were backing out of the diagonal spaces along 10th Ave. Council Member Johnson said that the Council wants time to look at the bigger issue of parking lot improvements and determine a fair way to assess improvements, not just on this project, but for future projects as well. Council Members discussed the difficulty of determining the assessed costs in a way that will determine the costs of all future projects based on this project. In answer to the Mayor's question, Mr. Mielke reviewed the action that would be taken at this time; the motion will order the improvement, approve a bond issue to finance the project and give authority to sign an agreement with RLK to prepare the plans and specifications. The motion does not set the assessments and the project can be stopped at_any time. Mr. Stadler reviewed the project schedule. Council Member Johnson asked when the Council would know the total cost of the project and what could be done if the bid came in too high. Mr. Stadler answered that bids will be opened and project costs will be available at the March 6th meeting. Council Member Johnson moved and Council Member Brausen seconded a motion to adopt Resolution 2001-05, Resolution Ordering Improvements After Public Hearing, Project 98-12; adopt; adopt Resolution 2001-06, stating City's intent to sell revenue bonds to fund this project; and authorize the Mayor and City Manager to enter into an agreement with RLK-Kuusisto, Ltd for engineering services related to this 2001 street January 16, 2001 City Council Meeting Minutes Page 4 and parking lot improvement project. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Jensen, aye; Council Member Hesch, aye; Council Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously. VI. NEW BUSINESS 1. Approve Liquor License Application, Tuttle Hopkins Recreation, Inc. (formerly Hopkins Family Bowl) (CR2001-10) Terry Obermaier introduced the Tuttles. Ms. Obermaier said that the Wrights are in the process of selling the bowling center to the applicant, Tuttle Hopkins Recreation Inc. The Corporation is owned by Michael, Timothy and Robert Tuttle. The Tuttles explained the business. Council Member Johnson asked how they would deal with underage drinking in Hopkins. The Tuttles said that they are very proactive, including server training. Council Member Hesch moved and Council Member Brausen seconded a motion to approve an On-Sale Liquor License and a Sunday On-Sale Liquor License for Tuttle Hopkins Recreation Inc., dba Tuttle's Hopkins Bowl, located at 107 Shady Oak Rd, along with the additional supporting licenses. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Jensen, aye; Council Member Hesch, aye; Council Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously. 2. Approve Engineering Services Agreement, 2001 Street Improvements (CR2001-09) Jim Gessele said that the Council conducted a public hearing on street improvements on segments of 1 1 th Ave S, 14th and 16th Aves N and 8th Ave S. Questions arose regarding the phasing of construction on 1 1th Ave. Council ordered the project with a provision that staff provide further information on assessments and construction phasing. Mr. Gessele explained the Consultant selection process and said that the proposed fee for Bolton and Menk is not to exceed $151, 870, which is 21 % of the total project cost. The fee includes plan/specification preparation, construction staking and inspection, project administration and record drawings. This does not include final streetscape design for 8th Ave. Staff recommended that assessments for phase one be delayed one year so that the assessment costs of both phases could be assessed in the same year, 2002. January 16, 2001 City Council Meeting Minutes Page 5 In response to questions about assessing after the project is completed, Jerre Miller, City Attorney, explained the process for objecting to the project versus the process for objecting to the assessment. Council discussed the guarantee of assessment cost that is established by the bids. Mr. Gessele explained that all the streets would be assessed at the same time that the entire project would be assessed after completion. Mr. Gessele reviewed design changes that were brought up at the public hearing. Council Members discussed the impact that the delayed assessment would have on the City budget. Mr. Stadler said that there will be some additional cost, but he did not believe that it would be significant. Mr. Mielke said that Lori Yager, Director of finance, is on vacation, but that he will call her for input. Council Member Jensen moved and Council Member Hesch seconded a motion to authorize the Mayor and City Manager to enter into an agreement with Bolton and Menk, Inc. for engineering services related to the 2001 street improvements program, Project 00-10, and to approve a staff recommendation for project phasing and special assessments schedule. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Jensen, aye; Council Member Hesch, aye; Council Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously. 3. Approve Construction Change Orders, Authorize Final Payment Parking Lot 750 (CR2001-07) Jim Gessele said that the contractor has completed the construction of Parking Lot 750. Mr. Gessele said that five change orders have come in. They include removal of curbing that was not included in original bid, reconstruction of wiring of existing cross walk lights, adjustment of electric handholds and splice wires on west side of Stn Ave, installation of electrical conduit on the east side of Stn Ave to provide upgrade and the removing and disposing of buried and abandoned NSP wiring. Mr. Gessele also said that there would be an additional $20,000 as a net increase to the contract amount due to the need to address poor soils on Stn Ave, for a total addition of $23,272.91. The existing agreement calls for US Bank to pay the additional $20,000 and $2,520 of the change orders. In answer to questions brought up, Mr. Gessele said that US Bank has been notified of the changes and has approved them. Council Member Jensen moved and Council Member Johnson seconded a motion to approve change orders one through five as they pertain to contract work on the construction of Municipal Parking Lot 750 and adopt Resolution 2001-04, Resolution January 16, 2001 City Council Meeting Minutes Page 6 Accepting Work and Ordering Final Payment, Parking Lot 750 Construction, Project 00-06. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Jensen, aye; Council Member Hesch, aye; Council Member Johnson, aye; Mayor Maxwell, aye. The motion carried unanimously. VIII. ADJOURNMENT There being no further business, Council Member Jensen moved and Council Member Brausen seconded a motion to adjourn the meeting. The meeting was adjourned by unanimous consent at p.m. Respectively S erry Q~ermaier, City Clerk ATTEST: Eugene J. axwell, Mayor January 16, 2001 City Council Meeting Minutes Page 7 COUNCIL MEMBERS