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03-26-02 WSMarch 26, 2002 Page 1 MINUTES CITY COUNCIL WORK SESSION -MARCH 26, 2002 A work session of the Hopkins City Council was held at 6:30 p.m. on March 26, 2002, at the City Hall. Council members present were Mayor Maxwell and Council members Brausen, Jensen (who left early), Johnson and Rowan. City personnel present were City Manager Mielke (after 8:00 p.m.), Housing Coordinator Elverum, Economic Director Kerrigan, Utilities Superintendent Lauseng, City Attorney Dieke, Public Works Director Stadler, Assistant City Engineer Bot, Assistant to City Manager Stahmer, Police Chief Reid, Fire Chief Beckering and Finance Director Yager. Also present were State Representative Rhodes, Sid Inman of Ehlers & Assoc. , Bob Moore of SRF and Charles Redepenning. Development Agreement, East CBD Project Housing Coordinator Elverum said April 16 is scheduled for official approval of the agreement by the Council. The Cornerstone focus group meeting was successful: over 40 people attended and 16 reservations were made. About 30% were Hopkins residents. Others said they were interested in living in Hopkins because of commuting and because of Hopkins' reputation. As the only publicity was articles in the Tribune and the Sun Sailor, she feels this interest was outstanding. A survey was taken at the meeting; results will be passed on to the Council. Mr. Kerrigan added that getting feedback from future residents even before planning is an interesting concept. Ms. Elverum added 4`" floor is the most desired; she was surprised how many wanted to be on Mainstreet rather than at the back. Ms. Elverum pointed out several sections of the agreement, noting a few points still need to be worked out. The land price was originally $300,000; due to the scaling down of the project, the price is now projected at $200,000, with the understanding that if the project is profitable Hopkins is entitled to "look back" and get more money; thus the land cost is based on profit rather than project cost. Later she added that Cornerstone is still asking that if they make a real effort and cannot obtain the retailers as prescribed, that they can come and renegotiate with Hopkins. The grant from the Met Council is budgeted as $200,000 for land, $21,250 for the bus shelter, $300,000 for underground parking, and $100,000 for architectural enhancements. She said present tenants should be moving out in May; the agreement comes to the Council in June; then demolition and storm sewer contracts will be bid out. The contracts will be taken care of by Cornerstone, with reimbursement at closing, as this makes overseeing easier for them. Answering Mayor Maxwell, she said that demolition costs are estimated at $120,000 and storm sewer changes at $100,000. Mr. Kerrigan added that he feels these costs and the land price will come close to "awash," and any shortages would come from ED funds. Ms. Elverum added that Cornerstone has already been hit with an unforeseen $80-100,000 cost to move an under- pressure gas line in the alley. Answering other questions, Mr. Kerrigan said planning is being done with future development of the Lommen property in mind. Ms. Elverum said the storm sewer would be moved to the south property line if it can be done deep enough. Any unknown environmental hazards costs would have to be negotiated. Mr. Kerrigan said Phase 1 testing showed no major March 26, 2002 Page 2 problems; however, he would recommend that the Council pass a resolution declaring blight in July just in case something major should show up so that a TIF could be set up if such an emergency arose. Ms. Jensen did not like that idea. Ms. Elverum said Cornerstone reimburses the city for development agreement costs; they draw the "streetscape. "Fourteen days after closing the storm sewer moving will start, and demolition should start in August. By early September construction should actually start. Cornerstone will design the bus shelter; Hopkins will reimburse them with $21,000 from the Met Council grant. Mayor Maxwell asked about proof of financing. Mr. Inman said Hopkins will probably get new proformas weekly. Attorney Dieke said the city is protected in that the city does not deed the property until proof of financing is presented. He added Hopkins also has title insurance on the property. He is working with City Attorney Steiner, and will make sure Council members get his comments . General Consensus: Council members were pleased with the public interest shown. They will be updated before the work session on Apri19. Lake Street Bridge Change Order Public Works Director Stadler said several major problems occurred on this project, including the hitting of a sanitary sewer forcemain on Aug. 2, 2002, as it was not where Met Council said it was, the hitting of a Minnegasco line (also Aug. 2) which had not been located by them, and pilings under the bridge which meant the casing under the bridge had to be much larger so they could be removed. The first problem resulted in a claim by MCES, which should be paid by Lunda Construction's insurance. The result of the problems was that utility work could not be done on the east side as planned and the project got delayed a year. He finally authorized the work to go ahead on a cost basis so the project could move forward. All this meant additional costs, totaling $245,780.64, which will be divided between the water and sewer utilities. An "office overhead" cost is still being negotiated. The city attorney is looking into taking action against Minnegasco for not notifying about their utility; they are claiming they sent FAXs, but he has none and nothing was said about them at the meeting they did attend. Mr. Moore added such action would set a precedent eagerly awaited by other cities and contractors. Utilities Supt. Lauseng said Aug. 2, 2002, was "the worst day I've ever put in," but said the good thing is Hopkins now has a much better system which is capable of isolating certain areas. There was discussion of where responsibility of the consultants, Met Council and utilities ends. Mr. Moore said they can only go on what information they are given. Mr. Bot said most entities such as Minnegasco send a disclaimer along with any information they do supply. Moore said all "cost basis" costs were verified. Mr. Mielke said a major factor is that in the bidding process the city sets the design; if that changes the contractor is not at fault. If we want the consultant to warrant placement of lines, etc., then that cost goes up. Mr. Stadler noted that Minnegasco never showed up until the bidding was completed. General Consensus: Mr. Stadler will update Council at the 2°d April work session. Enclosed Dumpster Project Mr. Stahmer said he has worked with the business group headed by Mr. Redepenning. He suggests the enclosed central dumpster site as a pilot project to be reviewed in three years. March 26, 2002 Page 3 Benefits include cost savings to businesses, improved recycling, alley clean-up, additional parking, reduced truck traffic. The city would still have liability as it is public property. The group is asking for 3 parking stall spots in Parking Lot 200 and $4,000 construction money. Mr. Redepenning said the businesses will be responsible for maintenance, including damage caused by trucks, etc., and said all businesses in the project area are signed up. There will be two haulers for a short time until a current contract runs out. There will be a reduction from 8-10 dumpsters and 18 glass containers to 4 dumpsters and 6 glass containers. The enclosure is designed for access from 2 sides so all dumpsters will be directly accessible, which will eliminate dropped trash, etc. While they are asking for 3 parking stalls, 9 will be freed up behind businesses. They are asking the city to dig the postholes. Mr. Stadler said that is the only thing to be worked out. Ms. Johnson asked why the city is being asked to pay. Mr. Redepenning says otherwise the businesses will need to save up the money and the enclosure could not be built for a couple years. The cleaning up of the alleys has been a city concern for a long time; the enclosure would do that. Mr. Rowan and Mr. Brausen said they think the money would be well spent to clean up the alley. Answering Mr. Brausen, Mr. Mielke said the liability issue is the same as on any city-owned property; Mr. Redepenning added grease containers will stay by the businesses so there would not be a spillage issue. Mr. Mielke said the money would come from the ED fund. General Consensus: The enclosure should be built as a trial project funded by Economic Development with a 2-year reviewal period; public works and police should look at the plan, which should be submitted April 16. Facilities Project City Manager Mielke said the primary purposes of this presentation were to get feedback on the proposed schedule and next steps and for Chief Reid to update on the radio situation. Curren School staff has asked that the concept be presented to the school board April 11; this would be only an introduction, not asking for any action. It is hoped fire hall construction would start Spring 2003 and police improvements Fall of 2003 to Spring 2004. Ms. Johnson asked if Parks had seen the plans; Mr. Mielke says they are okay with only two tennis courts. She suggested the Park Board be brought into help advocate. Mayor Maxwell asked if there would be drawings at the open houses; maybe the mailing should be Apri124 to allow time for drawings to be made. Mr. Mielke said there will be lots of photos of current conditions in the mailing. Ms. Johnson suggested cable television be utilized; Mr. Rowan suggested the web site. Mr. Mielke asked if "Let's Talk" group should be involved; all agreed and thought Citizens' Academy should also be. Mr. Stadler said he still needs one piece of information: will the intersection work for his trucks and equipment. Police Chief Reid said the radio situation is critical. He is trying to figure out what the long-term solution should be so he can determine ashort-term solution that will not require paying for the same help twice and that will make turnover easier. The options are to build our own system, buy into someone else's system (i.e., Eden Prairie), or get on the Met Council system (probably not available unti12006). The present system has 30,000 parts, none of which are stock items but have to be custom built, which takes 3 weeks. The system had a useful life of 15 years and was installed in 1987/8, and was no longer manufactured then. The portable units are also March 26, 2002 Page 4 outdated and part of the problem. Fire Chief Beckering added their pagers are also obsolete. The problem is exacerbated in that the dispatch system cannot be installed in a construction area due to the dust. Finance Director Yager presented figures showing that based on $11.2 million, the increase in the levy for the facility would amount to $96/year for the average homeowner, based on doing a referendum, which would impact in 2004. She plans 3 bond issues, the first at the end of 2002. The debt capacity is not a problem. She will do other figures for a higher cost and using a HRA Lease Revenue option (which should be approximately same cost to residential taxpayers). Other Ms. Johnson said Caring Youth is moved to 4/22 at 6:30 at Minnetonka City Hall. Mayor Maxwell reminded Council that Board and Commission Appreciation will be Thursday 6:00-7:15 for hors d'oeuvres and ice cream after the performance. Council members will serve the ice cream. Mr. Mielke said about 50 have said they will attend. Ms. Johnson moved adjournment; Mr. Rowan seconded. Meeting adjourned at 10:05 p.m. Kasey Kester, Secretary ATTEST: Eugen xwell, Mayor COUNCIL MEMBERS