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06-28-05 WSJune 28, 2005 Page 1 MINUTES CITY COUNCIL WORK SESSION -June 28, 2005 A work session of the Hopkins City Council was called to order by Mayor Gene Maxwell at 6:35 p.m. on June 28, 2005, at the City Hall. Council members Brausen, Johnson, Rowan and Thompson were present. City personnel present were City Manager Rick Getschow, Housing Coordinator Kersten Elverum, Economic Development Director Jim Kerringan, City Attorneys Bob Dieke and Jerre Steiner, Public Works Director Steve Stadler, and Finance Director Chris Harkess. Also present were Rebecca Kurtz of Ehlers & Associates and Bob Lindall of Kennedy & Graven. In the audience were Steve Flanagan of GPS Development; David Kirkman, attorney for Mr. Flanagan; Fred Katter, consultant for Flanagan; and Tim Kelly, representing Park Plaza. Approval of Liquor License Application, Jack Yee's City Manager Getschow said the application was received after the regular meeting in June. The city agreed to process the application at the work session so there would be no interruption of service. Mr. Thompson moved to approve the wine and 3.2 beer license application, including strong beer for Jack Yees' Restaurant with the condition that the Police Department approves the license. Mr. Brausen seconded. Passed 5-0. Block 64 Economic Development Director Kerrigan said he wished to update Council on • TIF District 1-3 as concerns were expressed at the meeting last week. This is scheduled for the July 5 meeting, and he wanted the city's attorneys to detail discussions that have taken place, strategies, time table, etc. Attorney Lindall said he would represent Hopkins if needed for eminent domain or the TIF district. The property owner has sent a letter on the building condition report; he feels it is desirable to respond to that; LHB should review that letter. An owner can choose to oppose an eminent domain action associated with a TIF district on the grounds the TIF was not properly founded. He would like a stronger basis in the public record so recommends continuing the public hearing July 19. Since it was closed, he suggests scheduling a new hearing so the owner cannot say the Council did not have the right to reopen a closed hearing. Another developer, Spyder Development, is competing for a chance to develop the Park Plaza property. While he is experienced, the Council has said it wants to develop all of Block 64. A request has been made for specified materials to be supplied by Park Plaza and Spyder Development, as well as asking permission to reinspect the property, all by July 8. They said they had not received a copy of the TIF plan and development agreement; those have been sent to them. He has handled a case much like this in which the Court agreed the competing developer did not meet the city's objectives; this is something the city will need to think about. He said the process could take 12-18 months. This could have significant financial impacts, especially for the security to be provided by the developer. The second developer has offered $6.7 million, while the city had an appraisal of $3.5 million. It is difficult to see how the larger amount could be paid and still get the kind of development the city wants. It is important to see a copy of the purchase agreement. June 28, 2005 Page 2 Answering Council questions, Attorney Lindall said a reinspection of the property ~• is desirable as the inspector had only a brief time allowed him the first time; if he had a longer time, he could check what the owner says in his letter. If no response is received to the information request, it would be made clear in the public record. A lack of response would raise issues as to whether the developer could finance the project. Mr. Kerrigan said that if the TIF district is challenged, it will affect more than Block 64. The city attorney is presently checking to see if a TIF would be possible for just the Honda property. Attorney Dieke commented that even if the second developer is viable, the city has the choice to accept his proposal or not. Mr. Lindall said an important consideration is if his plan would reach the city's objectives for the property. Another is if the city feels he has the ability to obtain the necessary land control. Attorney Steiner said he agrees with Attorney Lindall's suggestions about the hearing, even though he feels there was enough for proper findings at the last meeting. Mr. Kerrigan said on July 5 the Council will be asked to approve a motion to schedule July 19 to consider a resolution on the TIF district. Staff will get comments from LHB on the owner's letter and will continue to work with GPS on the development agreement. He added this could be a costly venture. Mr. Lindall noted the League of Minnesota Cities often covers defenses of TIF; even if the city wants its own personal "shadow," it would cut expenses. Mayor Maxwell commented that one of the city's major goals has been the redevelopment of this area. Attorneys Steiner and Lindall and Mr. Kerrigan commented financing will be an issue if the project is delayed. CIP Final Review • Finance Director Harkess said the major change from the last draft is she moved Excelsior Blvd. work large4ly out of the MSA fund and-to the PIR fund. Another major project is scheduled for 2009 (Shady Oak Road) that affects the MSA fund. It is not likely Hopkins could get advance funding on the MSA allocation; but a bond against future allocations is a possible scenario, in which case MSA money would be used for bond payments. The PIR fund will need bonding in 2006, which would also help cover 2007. There are significant projects in 2008 and 2009. Projects can be private as the city needs to front the money, and then assess to get it back. Mr. Getschow commented the assessment revenue estimates are conservative. Mayor Maxwell asked if it was planned to assess for Shady Oak, noting no assessments were made for Excelsior Blvd. Mr. Getschow said no assessments were put in the budget. Mr. Getschow said he feels comfortable with the project list. Mayor Maxwell asked about the Historical Society roof replacement, suggesting staff check with Renaissance Court to see if they would be doing theirs; perhaps the city could save money if both were done together. Mr. Stadler said he would check with them. Ms. Johnson asked about the sign master plan. Mr. Stadler said this is not putting up actual signs, but hiring a consultant and developing a plan that would include, branding, how to show the city best, etc. The `figure he used is low compared to other cities. Mr. Brausen asked about the pavilion sign. Ms. Johnson wondered who would decide what goes on it. Mr. Stadler said Council would develop the policy for messaging. Mr. Getschow said staff would try to get matching funds from the school district, youth hockey, etc. Mr. • Brausen asked who would decide on the HCA carpet. Mr. Stadler said probably Jay, with June 28, 2005 " " Page 3 ~ input from the tenants. Mayor Maxwell asked about the concrete alleys. Mr. Stadler said •~ those are paid 80% by assessment and 20% from storm sewer funds. Concrete alley repair costs about $14,000 a year. Ms. Johnson said she hopes the trail connections do not get put off again. Mayor Maxwell asked about the. trail signs. Mr. Stadler said they were not ordered due to the uncertainty about the area south of Excelsior Blvd. Now there is a better definition of where the signs should go. Ms. Harkess commented that this is simply a plan. If bids come in too high, then the Council could re-decide. Adjustments can also be made when the budget is done. She will present the plan at the July 5 meeting. Public Works Pre-Budget Public Works Director Stadler said the reorganization has gone well. Efficiency has improved, though not enough to make up for 3 lost positions. Major requests include re-establishment of one streets and parks position. Reasons to hire another person include: outsourcing pavement work has not been successful as there seems to be no interest from bidders; storm sewer catch basin repairs need to be started again; winter sidewalk maintenance can't be met; loss of a position for one week a month due to training someone into the water/sewer system. Cost would be $47,000-$58,000. He also needs to add another person to utilities. The workload has grown due to NPDES regulations. Three of the four workers are due to retire within 5 years; someone needs to get trained in. Cost would be $62,000 once the person is trained and licensed. Requests for building/equipment maintenance include a fire alarm central reporting system ($7000), tire changer ($3500), City Hall boiler controls upgrade to meet industry standards ($3000); energy management system for HCA ($5000). Mayor Maxwell noted the last item makes sense. While not on his request list, Mr. Stadler noted Jay would like to bring Allen back on Mondays ($8500) and added the Sunday church rentals add $20-30,000 annual revenue. Streets and parks requests include upgrading downtown planted areas, a ballfield drag, 11 seasonal workers. He would like to start an upgrade program for Trace radio-read meters. The $22,500 is the cost to establish the program, get hardware, train personnel. Batteries would be replaced as they wear out; the new ones would last 20 years and don't require an FCC license. Mayor Maxwell said he's not willing to add personnel yet. Mr. Getschow noted no numbers have been done for the budget yet; the purpose of pre-budget talks is to provide information. Ms. Harkess noted the cost for the parks person would come from the general fund; for the utilities person, from the utilities fund. Mr. Stadler said the utilities position really concerns him; if he can't hire someone new, he will have to move in someone from another area. Ms. Johnson asked if seasonal workers could shovel snow; Mr. Stadler says steady winter workers are hard to get as seasonal workers are usually college students. Unimproved Alley Vacation Public Works Director Stadler said the alley right-of-way vacation under discussion is between 19~' and 21S` Avenues North and 2°d and 3`d Streets North. Encroachments include fences, retaining walls and one garage. There is clearly no public purpose in retaining the ROW other than the overhead utility line which would remain within a utility easement. One owner is contending in conciliation court that present June 28, 2005 Page 4 condition of the ROW decreases his property value. Vacation could cause disputes • between property owners, yet continued city ownership carries potentially increasing liability. Three options are to do nothing; to proceed with vacation after notifying property owners and informing them of the potential for encroachment issues with abutting property owners; or -what staff "reluctantly recommends" -sending letters to owners whose encroachments extend over the ROW centerline telling them they must correct them within one year and then proceed with vacation. Answering Council questions he said statute requires even division of the ROW; 3 properties have encroachment problems. Mr. Getschow said one possibility is for the city to facilitate a meeting of owners to work out encroachment problems. Mayor Maxwell wondered if the city could send a letter saying the city would vacate if the owners could work things out but will not vacate the ROW if residents can't agree. Mr. Thompson and Mr. Rowan felt the city should go ahead with the vacation as encroachments should not have occurred. General discussion followed. General Consensus .was Mr. Stadler-should send out letters, with specific detailed letters to owners with potential problems. City staff would indicate where the center line would be, with the understanding this is not a legal survey but to help owners understand where the division would approximately be. It can be indicated the city does intend to vacate the right of way. Third Street North Unimproved Righ-of--way Vacation Request Public Works Director Stadler said Mark Van Oort, 301 20t'' Ave. N. has requested the city vacate the 30' x 135' section of 3`d St. N. between 19th and 20t" Aves. Because of a previous vacation, his neighbor would actually receive the vacated land, but he has an agreement with his neighbor to acquire the property. There are no utilities in the ROW. However, a review showed that pedestrians do use the ROW to reach Hilltop Park. Staff suggests a letter be sent to the residential area that is most likely to use this access and request input. Mayor Maxwell said 2 people have approached him about vacating on 21St; it would be difficult to refuse them if this is granted. He added he doesn't think the city can make people go an extra block to get to the park. Mr. Thompson said it would make a big difference if he knew what neighborhood input would be. General Consensus was to do as staff suggested and send a letter requesting neighborhood input. 2005-6 Goals City Manager Getschow asked for comments and additions to the goals. Under Goal I (Improving Communication and Marketing Efforts) Mr. Thompson suggested that Action 8 be clarified as to how community could get the summary of economic development, suggesting a copy at city hall, the library, etc. Discussing Goal II (Growth of Employees, Supervisors and City Council), Mr. Brausen commented he served 14 years in various positions with no training, except some League of Minnesota Cities events, and no feedback or evaluation on how he was doing. Ms. Johnson remarked basic understanding of Roberts Rules of Order would be good. Concerning Action 2 Mayor Maxwell said he has received positive feedback on the Planning and Zoning training. Mr. Getschow said he is putting together a committee to work on employee evaluation. June 28, 2005 Page 5 Commenting on Goal IIC (Feedback Systems for Council), Mr. Brausen and Ms. Johnson said this was a real need, especially in understanding each other. Ms. Johnson asked if the Council could get copies of the employee newsletter (Action 12). Ms. Johnson suggested that an action "Review contract employees (at set times to be specified)" be added under Goal III (Improve the Budget Process). Regarding Goal IV (Improve Quality of Life in Hopkins), Ms. Johnson suggested bike racks be added to Action 15. Mayor Maxwell said Action 20 had been accomplished and could be removed. For Goal V (Citizen Growth and Development) Ms. Johnson suggested publicizing elections on the web site and Mr. Rowan added the Citizens' Academy. Mr. Getschow commented it looks like the Citizens' Academy will be similar to what was done before. A city monthly column will start in the Sun Sailor in July; they had expressed concern about elected officials doing the column. He suggested having Chief Reid, etc. do some of the columns. Mayor Maxwell commented it would be nice to have one explaining TIF districts and how they work. General Consensus was Mr. Getschow should bring the Goals document before the Council on July 5 or July 19. Other Ms. Johnson asked about a car being hit by the city. Mr. Getschow said a contractor may have hit a resident's car, but there is no certainty he did. The city cannot guarantee the contractor will pay when no one is sure he did it. Mr. Thompson asked about the policy on park dedication fees in relation to lot splits, noting Shorewood and Minnetonka have such a fee if a split results in buildable ~; lots. Mr. Getschow said he will look into it, adding Shorewood and Minnetonka's provision is unusual. Mr. Rowan asked about the Qwest cable on Mainstreet. Mr. Getschow said there is a meeting on Thursday and he will ask them why they are retrofitting old material. Mayor Maxwell commented if Qwest doesn't have an easement, they should be paying for the moving of the cable. Mr. Rowan asked how many water meters have been replaced voluntarily. Mr. Getschow will find out. Mr. Brausen asked if there have been any revenue changes due to water meter replacement. A teacher from Harley Hopkins school approached him about signage; he told her to be specific where she' wanted signage. He said he has noticed some of the seasonal workers just sitting around, doing nothing. Mayor Maxwell said he has had a couple complaints about that also. Mayor Maxwell asked if Council members were planning to go to the National League of Cities December 6-10. Mr. Rowan, Mr. Brausen, Mr. Thompson and Mayor Maxwell all were interested. Mr. Getschow said early registration saves money. Mr. Getschow said a group wants the mayor's support for Haiti and asked for feedback. The Charter Commission is now filled. Chemical Health is still short of people and Police Chief Reid wonders if it should be combined with Reduce the Use. Ms. Johnson suggested staff get input from Kathy. Pat Sanders has put together a screening plan in response to the city's letter. June 28, 2005 Page 6 .s- Ms. Johnson moved adjournment. Mr. Thompson seconded. On a 5-0 vote the meeting adjourned at 10:05 p.m. Kasey Kester, Secretary ATTEST: ~C ~ Eugen axwell, Mayor