02-25-03 WSr'ebruary Z5,lUU3
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MINUTES
CITY COUNCIL WORK SESSION -February 25, 2003
Mayor Gene Maxwell called a work session of the Hopkins City Council to order at 6:30
p.m. on February 25, 2003, at the City Hall, Council members Jensen, Johnson and Rowan were
present. City personnel present were: City Manager Mielke and Facilities Manager Jay Strachota.
Also present were Donna Leviton and Ted Sauer, Hopkins School District; Chris Tower, Edina
School District; Mary Jo Barton, Marjorie Mathison Hance, Jim Shirley, Susan Hanna-Bibus and
Nelson Berg of HCA.
Success Is...
Mr. Mielke handed out the Hopkins budget for the Hopkins Center for the Arts. This was
city budget, not HCA budget. Operating expenses cost the city $17-35,000 per year; mortgage
payment paid from the Economic Development Fund is $61,000 per year until 2012; total 2003
subsidy for the city is $149,000 if the mortgage payment is included. Later he said that the city
could be losing 46 % of its Intergovernmental Revenues in 2003, and it could go as high as 91 % in
2004. This would include the $50,000 in Intergovernmental Revenues the state has been providing
Hopkins for the Hopkins Center for the Arts in lieu of allowing a food and beverage tax.
Operational subsidies come from the Cable Fund. The Council has moved communication
activities out of the Cable Fund to the General Fund due to these subsidies.
Mr. Strachota and Ms. Hanna-Bibus went over the "Success Is... " indicators and action
items that had come from their task force meetings. General discussion of items followed.
Two items discussed at length were signage and JC Studio. Mr. Strachota showed a sketch
of proposed signage, which would cost $10-25,000. Interior signage like that of the Box Office is
suggested over the Gallery, JC Studio and Elevator. A program kiosk with electronics would cost
$6,000; anon-electric would be $3500. An option for the JC Studio is retractable black curtains,
which would cost $17,000. Windows being installed were mentioned. Ms. Jensen noted the room
has been a struggle to meet two needs: staging and meeting space.
Mr. Sauer spoke about the Charter School, noting it could help offset some of the costs for
the Center. While adult education, pre-school, etc. monies have been cut; state budget cuts have
not affected plans for it. They are applying for the Charter and feel it will be approved as it fills
"a hole" after Fairview School. He feels the new school auditorium will not be a conflict, but that
because of the different sizes, cooperative efforts could help both. He noted that when Charter
School uses the Center, security would become necessary and he would see if his vendors could
help. He also suggested a joint booking arrangement might be a good idea.
Mr. Mielke asked each person present to give one potential action item. Donna Leviton -
the facility, greeting, signage, entry look and feel; Ted Sauer -opportunity for joint business
between the school district and the Center, including food service; Jay Strachota agreed with Ms.
Leviton; Chris Tower -complete marketing plan, which would include point of entry; Mary Jo
Banos agreed with Mr. Tower; Marjorie Mathison Hance -revenue sources; Jim Shirley -web
site; Susan Hanna-Bibus added public relations to Mr. Tower's suggestion saying it should also
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include marketing research; Nelson Berg -institutionalizing communication processes and
clarifying roles; Bruce Rowan -forums and community supporters, focus groups; Diane Johnson
- revenues, signage costs; Karen Jensen -Charter School; Gene Maxwell -dynamic parties,
events; Steve Mielke -fund raising. Ms. Jensen said she feels McKnight Foundation needs to be
approached as to why they denied a grant this year. Mr. Mielke asked what was missing on the
list. Mr. Nelson said staffing requirements. Ms. Leviton said community "buy-in"; Mr. Nelson
added the business community is not "on board" and some first backers have dropped out. Ms.
Jensen added volunteers.
People were suggested .for each area listed as follows:
• Signage/entry: Jay Strachota, a consultant (architect, interior decorator), tenants
• Joint Business Plan: Ted Sauer, Jay Strachota, Susan Hanna-Bibus, Stages
• Marketing/PR Plan: all partners It was noted here that care would need to be taken to not
"muddy the divisions between partners so grants would be denied.
• Revenue Sources: Steve Mielke, Ted Sauer, Steve Barbario, Susan Hanna-Bibus, Council
member, HCA Board member
• Web site: Donna Leviton, Chris Tower, Jim Shirley, Siri, Bruce Rowan
• Communication/ Role Clarification: Steve Mielke, Nelson Berg
• Community forum/Marketing Research: Council as lead, tenants. Mr. Mielke noted this
would be much like the "vision process"
• Charter School: Charter School steering committee
• Parties/Fund raisers: Gene Maxwell, Rick Brausen, Barb Westmoreland
Ms. Jensen said these problems need to be solved or the doors of the Center may have to
close. Jay Strachota said his staff has only so many hours. Mr. Sauer noted that just keeping
people resources in mind would help as everyone goes ahead. He suggested that each area have
"staffing needs" as an issue on their agenda. It was also noted that developing community through
arts or volunteers is part of the marketing and focus groups area. Mr. Berg asked about Stages
finances; Mr. Rowan said there was a net loss last year.
Next steps were discussed.
General Consensus was that each group should meet, "flesh out" their programs, and try to
take first steps. Another work session will be held on Apri18 with a meal provided at 6:00 p.m.
Other
iVlr. Rowan said he would be absent Apri122.
Ms. Johnson said many lights on Excelsior Blvd. are not working. Mr. Mielke will have
staff check on the situation.
She also noted March 18 will be very busy with Caring Youth and the Council meeting.
Mayor Maxwell said he wants at least a few minutes between the presentation and the meeting to
visit with the winners and parents.
Budget
Mr. Mielke handed out power points that give budget numbers. He met with James
Proescholdt last week and there should be a story in the paper that "5 % is not 5 % . " Rep. Rhodes
has told the city manager that he understands the situation and will not support the Governor's
budget proposal.
He also handed out an outline for the budget work session on March 11 and will make sure
everyone has the budget summary book for the March 11 work session. Budget projections will be
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on best, worst, and middle case scenarios. "Best" would be a 25 % cut in aids and a 3 % levy
increase each year. Worst would mean losing 91 % of state aids and frozen levy limits. The
shortage based on the governor's proposal would roughly equal the streets and park budgets. He
stressed Hopkins should not use up all its reserves or it will lose its credit rating. He suggested
that the 2004 budget be worked on as a "zero-based budget" -what do we want to "put in" a
blank budget, rather than the perspective of what do we take out. One big problem with the
Governor's "Total Revenue" assumption is that the grants, such as those for Chemical Assessment
and the Depot, CDBG monies, etc. are included as "Total Revenue". Ms. Johnson asked if
anyone was contesting the governor's numbers. Mr. Mielke said he is attending meetings
Wednesday and Friday.
General Consensus was that the first budget meeting should not include department heads,
but include Ms. Yager. Mr. Mielke said he feels his job is to make recommendations and ensure
the Council has all the information it needs once he is given their parameters so that they can make
the final decisions on budget cuts. Council agreed that was a good assessment. Mr. Rowan said
he would like the budget figures to all be in "one form," that is all based on programs or
departments or personnel needs, etc. to make decisions easier. Mr. Mielke is also to check how
the fire department volunteers are paid, per call or per hour.
Mayor Maxwell asked about Rule 85. Mr. Mielke said he has advocated it with Mr.
Rhodes. Mayor Maxwell indicated that he would be willing to attend any employee meetings.
Mr. Rowan moved adjournment. Ms. Jensen seconded. Meeting adjourned at 10:20 p.m.
Kasey Kester, Secretary
ATTEST:
Eugen ' . ~xwell, Mayor