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01-15-02A regular meeting of the Hopkins City Council was held on January 15, 2002, in the Council Chambers of the Hopkins City Hall. Present were Mayor Maxwell and Council Members Brausen, Jensen, Johnson, and Rowan. Also, present were staff members Mielke, Genellie, Stadler, Kerrigan, Elverum, Bot, and City Attorney Jerre Miller. 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. Park Board Mark Kuhl and Patty Schuessler appeared for the Park Board. Hopkins Area Little League made a presentation at the Park Board Meeting. The League requested dugouts for the ball fields. Last summer was hot and wet. The Board reviewed the request. They will look at designs and ways for funding. They also requested practice-pitching mounds. At this time, the pitchers warm up along the fence by the concession stand. There is considerable traffic in that area. They would like to have mounds in the outfield, outside the fence. The installation of the mounds will not create an expense for the City. Patty Schuessler said that SRF Consulting presented the final draft of the trail and sidewalk master plan. The Board approved the draft. A joint meeting of the Minnetonka, Hopkins Park Boards was held last weekend. They will hold a Kid Fest on February 10 for the two communities. There will be both indoor and outdoor activities including a dog sled. Staff presented activity reports of the classes offered and reviewed the Shady Oak Beach structure. They discussed possible future budget cuts. IV. CONSENT AGENDA 1. Minutes of January 2, 2002 City Council Meeting 2. Minutes of January 8, 2002 City Council Work Session 3. Miscellaneous License Applications 4. Authorize Execution of Livable Communities Grant Agreement (CR2002-10) 5. Approve 2001 Pay Equity Implementation Report (CR2002-05) 6. Approval of Bid for Breathing Apparatus and Compressor (CR2002-07) January 15, 2002 City Council Meeting Minutes Page 1 Council Member Johnson asked Kersten Elverum to review the Livable Communities grant, item four. Ms. Elverum said that the City applied for an $825,000 grant through the Livable Communities Demonstration Account for the East Central Business District redevelopment project. The Metropolitan Council awarded the City of Hopkins 5600,000 and an additional 21,250 supplemental transit grant funds for the project. Several components of the project qualify for the grant funds. Council Members Brausen and Jensen complemented the outstanding efforts of Ms. Elverum in attaining the grant. Council Member Brausen moved and Council Member Jensen 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 Johnson, aye; Council Member Rowan, aye; Mayor Maxwell, aye. The motion carried unanimously. V. Pl1BLIC HEARING 1. Knollwood Pond Improvements (CR2002-13) Steve Stadler said that this is a request for improvements and in February of 2001, the City Council approved plans and directed staff to advertise for bids. Bids were received and rejected because they were higher than projected estimates. The Council directed staff to work out an assessment schedule with the neighborhood that they could all agree on re-bid the project at a later date. Mr. Stadler reviewed the scope of the improvements and the costs of the project. The neighborhood arrived at an assessment formula where those ten properties adjacent to the pond would pay 27.5 % of the assessment with the remaining 73% being paid by the other forty-three properties. The City will be paying 70% of the total cost of the project, which is estimated at 5130,000. The estimated assessed amount is 564,400. Mr. Stadler reviewed the plans and the scope of the project. Mayor Maxwell opened the public hea-ring at 8:47. Jim Rovner, 716 Valley Way, said that many neighborhood meetings have been held. Last year there was 80% approval. It is higher than that now with the redistribution of the costs. Mr. Rovner said that the improvements will benefit the whole neighborhood and that the work is needed and will only become more expensive. Dan Johnson, 705 Valley Way, said that he is in favor of the project. And thanked the City staff for all the work that was put into the project. Mr. Johnson then read a letter from Dave and Cindy Folin expressing their support for the project. January 15, 2002 City Council Meeting Minutes Page 2 Gretchen Brant, 420 Cottage Downs, said that there were questions from some. How was the percentage arrived at? Mr. Stadler answered that the petition stated 27.5%. Ms. Brant then asked if a realtor could be consulted to determine the increase in property value for those properties near the pond. Ms. Brant asked if some of the residents could volunteer to do some of the work, if seed could be used instead of sod, and if the residents could be polled to see what they would be willing to pay. Randy Engel, 810 Valley Way, said that those that attended meetings felt comfortable with a figure of $1,000 for an assessment. He felt that maybe Don Johnson could answer the real estate question. Sod is being used because it is less attractive to the geese. It will also afford better erosion control. Ms Brant came forward and stated that she approves of the project, she just wanted answers to her questions. Mr. Stadler said that the project will come before the Watershed District this month for approval. Council Member Brausen moved and Council Member Johnson seconded a motion to close the public hearing. The public hearing was closed by unanimous consent at 7:59 p.m. Council Members complemented staff and the neighborhood residents on their ability to work together well on this project. Council Member Brausen moved and Council Member Jensen seconded a motion to 1) adopt Resolution 2002-02, Resolution Ordering improvements After Public Hearing, Project 00-14; and 2) adopt Resolution 2002-03, Resolution Approving Plans and Specifications for Knollwood Pond Improvements and Authorize Advertising for Bids with the condition that the project is approved by the Watershed District. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Jensen, aye; Council Member Johnson, aye; Council Member Rowan, aye; Mayor Maxwell, aye. The motion carried unanimously. 2. Reallocate CDBG Funds (CR2002-1 1) Kersten Elverum said that the City receives an allocation of approximately ~ 150,000 from the Urban Hennepin County CDBG program. The funds must be used for specific activities, which benefit low and moderate-income residents. In the past, the primary activity funded with CDBG is the housing rehabilitation loan and grant program. Other activities included public housing improvements and limited funding of social service programs. Because of a significant increase in housing rehabilitation loan repayments, the City has been able to recapture approximately $70,000 in program income. These funds must be expended prior to new CDBG dollars. The City has accumulated a balance in the housing rehabilitation budget, which cannot be spent by the May 1, 2002 deadline imposed by the Department of Housing and Urban Development. In order to prevent January 15, 2002 City Council Meeting Minutes Page 3 loosing CDBG funds in the future, staff is recommending that $99,000 in housing rehabilitation funds be reallocated to public housing improvements for Dow Towers. The majority of the funds will be used to install individual thermostats in each of the 76 units at Dow Towers. Currently, the residents only have the option of having heat on or off. To control the heat in their apartments, they open windows. Installing the thermostats will provide a more comfortable living environment as well as afford a significant cost savings in decreased heating bills. In answer to questions from City Council Members, Mr. Kerrigan said that the thermostats will be installed while the residents are in the apartments. The current system is old and not working well. The boilers are scheduled to be replaced next year. Mayor Maxwell opened the public hearing at 8:08 p.m. No one came forward. Council Member Johnson moved and Council Member Jensen seconded a motion to close the public hearing. The public hearing was closed by unanimous consent at 8:08 p.m. Council Member Jensen moved and Council Member Rowan seconded a motion to adopt Resolution 2002-01, Reallocating Urban Hennepin County CDBG Funds and authorizing the execution of third party agreements. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Jensen, aye; Council Member Johnson, aye; Council Member Rowan, aye; Mayor Maxwell, aye. The motion carried unanimously. VI. OLD BUSINESS 1 . First Reading, Ordinance for Vacation of 13th Ave S (CR2002-12) Steve Stadler told the Council that the City received a request from St. Joseph's Church to vacate a portion of 13th Ave S. Mr. Stadler outlined the public process. A public hearing on the issue, held on December 18, 2000, was continued and staff was directed to organize a meeting between the parties that will be affected. Two meetings were held. They were well attended by residents, business owners and representatives of St. Joseph`s Church. A consensus was not reached. Staff recommended that the Council deny the vacation, implement a perpetual right-of-way use agreement with the Church and continue to go forward with the design of reconstruction of 13th Ave S. Mr. Stadler reviewed the options. The Council discussed the issues. Mayor Maxwell opened the public hearing at 7:35 p.m. January 15, 2002 City Council Meeting Minutes Page 4 Eunice Anders, Citigables, said she has lived there for eleven years and is in favor of the vacation. She felt that the project would increase safety for the children and the parishioners, Jim `farosch, an attorney representing Fine Properties of Minnesota came forward. Fine Properties own the building on the corner. Fine Properties support the vacation and the project of the Church. They do have a concern that traffic may become problematic. The alley may not be sufficient to handle the increased traffic. They would like to have the traffic monitored. Mr. Yarosch complemented the process and the organization done by Mr. Stadler and Council Member Brausen. Cecil Kloss, President of Citigables, and Doug Palmer, Treasurer of Citigables, came forward. Mr. Kloss expressed his belief that other measures could be taken to assure the safety of the students that attend John Ireland School. Mr. Kloss also said that the closing of 13t" Ave S will cause an increase to traffic on 12t" Ave S. Mr. Palmer said that he is also concerned about the safety of the children, but felt that the current design and use of the parking lot as a play area for the children would put them at greater risk. Mr. Kloss presented a petition with 51 signatures against the vacation. John Flerbeck, owner of the building on 105 - 13t" .Ave S, said that there are over 200 people in the area and that fifty-three of them would strongly oppose the vacation. Any vacation would isolate them. Mr. Herbeck felt that the residents were getting the short end of the stick. Fie felt that the traffic counts were not accurate because they were done in the winter. He felt that there might be more traffic in the summer. Mr. Herbeck also submitted a petition against the vacation. John Jelinek, a trustee of St. Joseph's Church, said that the Church is willing to pay for all related costs of closing 13t" Ave S. They will pay for the vacation, lighting and for maintenance and snow removal. They will not pay for a reinstatement in the event that the City wants the property returned. Mr. Jelinek that the Church wants a complete vacation, but would accept the easement. Mayor Maxwell said that he was disappointed with the communication of the parties involved. Council Member Jensen moved and Council Member Brausen seconded a motion to close the public hearing. The public hearing was closed by unanimous consent at 9:03 p.m. In answer to Mayor Maxwell's question, Mr. Stadler said that, yes, the City should proceed with design plans. The street can always be removed from the project. Council Members discussed the lack of consensus. They expressed disappointment in the lack of give and take on the part of both sides. Most felt that there is a way to continue the project, but felt that both sides must give some. The Knollwood project and County January 15, 2002 City Council Meeting Minutes Page 5 Road 73 and 5 intersection were given as examples of how a neighborhood could work out differences and solve a problem that was very divisive. There is still time for the parties to get together and try to come to some kind of agreement that would benefit all parties. The Council Members would all like to see some agreement. Mayor Maxwell moved and Council Member Johnson seconded a motion to deny the vacation request and reconstruct 13th Ave S per 2002 Street Improvement project design. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Jensen, aye; Council Member Johnson, aye; Council Member Rowan, aye; Mayor Maxwell, aye. The motion carried unanimously. VII. NEW BUSINESS 1 . Approve Preliminary Layout of Hwy 7 and Co Rd 73 Intersection (CR2002-14) Steve Bot explained that two years ago the Council approved a concept for this intersection. Approval carne after two task force meetings were held to consider the improvements in this area. Throughout the planning process of this project, a vast amount of input form the affected property owners has been considered. In 1997, a feasibility report was prepared by SRF Consulting Group Inc. This report has been updated and is now submitted to Council. Mr. Bot reviewed the scope of the improvements. Access to all properties will be maintained. Mr. Bot reviewed the right-of-way acquisitions that will be necessary. Both Hopkins and Minnetonka will use the same firm for acquisition to save costs. Hopkins share of the project cost is estimated at 5260,000. Assessments are not proposed for this project. In answer to Council Member Johnson's question, Mr. Bot said that the intersection will be coordinated with the Walgreens' project and completed at the same time. In answer to Mayor Maxwell°s question, Mr. Stadler said that the CSAH 73/5 project will likely also start this year and be completed about the same time that the CSAH 73/Hwy 7 project is. Council Members discussed the design elements. Council Member Johnson moved and Council Member Brausen seconded a motion to adopt Resolution 2002-04, Resolution Receiving Feasibility Report, Authorizing Preparation of Plans and Specifications, and Authorizing Right-of-Way and Easement Acquisition, CSAH 73/TH 7 Intersection Area Roadway Improvements, City Project 01-06. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Jensen, aye; Council Member Johnson, aye; Council Member Rowan, aye; Mayor Maxwell, aye. The motion carried unanimously. January 15, 2002 City Council Meeting Minutes Page 6 2. First Reading, Ordinance Amending Section 1 180, Pawnshops (CR2002-01) Jim Genellie said that the intent of the ordinance is to replace the existing ordinance, bringing the City into conformance with State Statute. The new ordinance will allow a greater link to the other cities in the Metro area. It has new redemption criteria and the holding time has been changed. There is also a new fee structure. Representatives of Pawn America were here earlier and voiced some objections to some of the language in the new ordinance Staff plans on meeting with them prior to the second reading and will make changes to the ordinance accordinglye Chief Reid said that the workload will be greatly improved. It will eliminate the double entry of information and greatly speed up the process. The new system will allow the Pawn Clerk to check through the system for stolen property as opposed to entering the information. Some of the concerns that were voiced by the Pawn America Representative are the redemption period and the equipment standards (whether their current equipment will meet standards). Kathy Magdal, Pawn Clerk, said that surrounding cities are pleased that Hopkins is going to this system. Council Member Brausen moved and Council Member Johnson seconded a motion to adopt Ordinance 2002-865 for first reading and directed staff to work with Pawn America to satisfy language differences and concerns. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Jensen, aye; Council Member Johnson, aye; Council Member Rowan, aye; Mayor Maxwell, aye. The motion carried unanimously. 3. Approve 2002 Hopkins Municipal Employees' Association Contract (CR2002-08) Jim Genellie said that the proposed increase includes a 2.5 % wage increase effective January 1, 2002 and a 1 % wage increase effective June 30, 2002. There is an increase of $50.00 per month for health, life, and dental insurance. The agreement is in line with other cities in the area and is within the amount budgeted, Mr. Mielke said at this time he would like to make the Council aware that the State budget shortfall could cause the City to lose up to $300,000 from the budget this year. Because 70% of the City's budget is wages, cuts would have to be made in services and level of services. If the contract is not settled, the City could go into arbitration with the employees. Likely, employees would get 3.5 % because that is what most cities in the area have settled on. Mr. Mielke recommended approval of the contract. Council Member Brausen moved and Council Member Johnson seconded a motion to approve the 2002 Contract for the Hopkins Municipal Employees' Association, HMEA. A January 15, 2002 City Council Meeting Minutes Page 7 poll of the vote was as follows: Council Member Brausen, aye; Council Member Jensen, aye; Council Member Johnson, aye; Council Member Rowan, aye; Mayor Maxwell, aye, The motion carried unanimously. 4. Approve Increase in Non-Union Wages (CR2002-09) Steve Mielke said that traditionally, the non-union employees receive the same increases that the union employees do. The requested increases are 2.5 % wage increase effective January 1, 2002 and a 1 % wage increase effective June 30, 2002. There is an increase of $50.00 per month for health, life, and dental insurance. Council Member Jensen moved and Council Member Johnson seconded a motion to approve the wage and benefit increases for non-union employees for 2002. A poll of the vote was as follows: Council Member Brausen, aye; Council Member Jensen, aye; Council Member Johnson, aye; Council Member Rowan, aye; Mayor Maxwell, aye. The motion carried unanimously. 1/III. ADJOURNMENT There being no further business, Council Member Brausen moved and Council Member Jensen seconded a motion to adjourn the meeting. The meeting was adjourned by unanimous consent at 10:21 p.m. Respectively Submitted, erry Ob a° ity Clerk ATTEST: Eug ne .Maxwell, Mayor January 15, 2002 City Council Meeting Minutes Page 8