City Council

HOPKINS CITY COUNCIL AGENDA Tuesday, December 5, 2023 6:30 pm THIS AGENDA IS SUBJECT TO CHANGE UNTIL THE START OF THE CITY COUNCIL MEETING Schedule HRA Meeting, 6:30 p.m. – City Council Meeting immediately following meeting I. CALL TO ORDER II. ADOPT AGENDA III. PRESENTATIONS IV. CONSENT AGENDA 1. Minutes of November 21, 2023, City Council Regular Meeting Proceedings 2. Resolution Approving Amendments to the Hopkins Fire Department Relief Association Bylaws; Specken 3. Ratify Checks Issued in November 2023; Bishop 4. Renewal of General Liability and Property Insurance and Authorize Not Waiving of the Statutory Tort Liability on the League of Minnesota Insurance Trust Policy; Bishop V. PUBLIC HEARINGS VI. OLD BUSINESS VII. NEW BUSINESS 1. Resolution Approving an On-Sale Liquor and Sunday Sales Liquor License for Shaughnessy Plating LLC DBA Pink Ivy Kitchen and Bar; Domeier 2. First Reading: Ordinance Granting Centerpoint Energy a Franchise for Gas Energy; Bishop 3. First Reading: Ordinance Amending Chapter 102 of the Hopkins City Code Regarding Signage; Krzos VIII. PUBLIC COMMENT IX. ANNOUNCEMENTS • Next City Council Regular Meeting: December 19 at 6:30 p.m. X. ADJOURN  HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS NOVEMBER 21, 2023 CALL TO ORDER Pursuant to due call and notice thereof a regular meeting of the Hopkins City Council was held on Tuesday, November 21,2023, at 6:30 p.m. in the Council Chambers at City Hall, 1010 1st Street South. Mayor Hanlon called the meeting to order with Council Members Balan, Garrido and Hunke attending. Council Member Beck was absent. Others attending included City Manager Mornson, Assistant City Manager Lenz, City Clerk Domeier, Finance Director Bishop, Director of Planning and Development Elverum, City Planner Krzos, Planner Howard, Special Projects and Initiatives Manager Imihy Bean and City Attorney Riggs. ADOPT AGENDA Motion by Balan. Second by Hunke. Motion to Adopt the Agenda. Ayes: Balan, Garrido, Hanlon, Hunke Nays: None. Absent: Beck. Motion carried. PRESENTATIONS III.1. Canvass to Certify the Results of the Election Recount for the City Council Seat; Domeier City Clerk Domeier summarized City Council Report 2023-130. The City Council as canvassing board is responsible for certification of the results of the recount. The recount results were Ben Goodlund 886 votes and Aaron Kuznia 884 votes. Motion by Balan. Second by Hunke. Motion to declare the results of the November 20, 2023, Election recount. Ayes: Balan, Garrido, Hanlon, Hunke Nays: None. Absent: Beck. Motion carried. III.2. Park Board 2024 Work Plan; Imihy Bean Special Initiatives and Projects Manager Imihy Bean and Park Member Matthew Miller provided an update on the 2023 plan and sought feedback on the 2024 plan. A brief discussion was held about the priorities for 2024 including race and equity plans along with park usage. Council Member Balan requested that other members of the community be asked to be in the race and equity working group. Discussion ensued regarding the Master Parks Plan and the race and equity component. III.3. Planning and Zoning Commission 2024 Work Plan; Krzos City Planner Krzos and Planning and Zoning Commission Chair Andrew Wright provided an update on the 2023 plan and sought feedback on the 2024 plan. Council Member Hunke appreciated the Commission learning more about the Shaky Oak Station area and suggested reviewing policies related to the City’s equity goals.  HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS NOVEMBER 21, 2023 CONSENT AGENDA Motion by Balan. Second by Garrido. Motion to Approve the Consent Agenda. 1. Minutes of the November 14, 2023, City Council Regular Meeting Proceedings 2. Second Reading: Extension of Interim Ordinance Authorizing a Study and Imposing a Moratorium on the Establishment and Operation of Cannabis Businesses in the City of Hopkins; Domeier 3. Resolutions Approving Special Assessments for Diseased Tree Removal and Private Water Service Repairs; Bishop 4. Approval of 2024-2026 Contract with Local 49; Lenz Ayes: Balan, Garrido, Hanlon, Hunke Nays: None. Absent: Beck. Motion carried. NEW BUSINESS VII.1. Adoption of the 2024-2028 Capital Improvement Plan; Bishop Finance Director Bishop summarized City Council Report 2023-126. Adoption of the CIP will authorize staff to prepare for purchases scheduled in 2024. Additional approvals will be necessary for most projects to proceed. The years 2025-2028 serve as a long-range plan and projects are not authorized by approving the plan. Motion by Hunke. Second by Balan. Motion to Adopt the 2024-2028 Capital Improvement Plan. Ayes: Balan, Garrido, Hanlon, Hunke Nays: None. Absent: Beck. Motion carried. VII.2. Adoption of the 2024-2028 Equipment Replacement Plan; Bishop Finance Director Bishop summarized City Council Report 2023-127. Adoption of the ERP allows staff to begin preparation for their purchases scheduled in 2024. Items that fall under the Minnesota Statutes Uniform Bidding/Contracting laws will require further approval before their purchase. The years 2025-2028 serve as a long-range plan and purchases are not authorized by approving the plan. Mayor Hanlon requested a projected budget to actual cost column included in future budget updates. Motion by Hunke. Second by Garrido. Motion to Adopt the 2024-2028 Equipment Replacement Plan. Ayes: Balan, Garrido, Hanlon, Hunke Nays: None. Absent: Beck. Motion carried. ANNOUNCEMENTS Mayor Hanlon reviewed the upcoming meeting schedule. City Manager Mornson thanked City Clerk Domeier for her work on the City Elections; announced that Assistant City Manager Lenz is leaving the city after eight years; and shared an email from the 325  HOPKINS CITY COUNCIL REGULAR MEETING PROCEEDINGS NOVEMBER 21, 2023 Blake Road project general contractor commending the great service provided by the Public Works and Inspections departments. ADJOURNMENT There being no further business to come before the City Council, and upon a motion by Hunke, second by Garrido, the meeting was unanimously adjourned at 7:25 p.m. Respectfully Submitted, Amy Domeier, City Clerk  Fire Department CITY OF HOPKINS City Council Report 2023-115 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Dale Specken, Fire Chief Date: December 5, 2023 Subject: Resolution Approving Amendments to the Hopkins Fire Department Relief Association Bylaws _____________________________________________________________________ RECOMMENDED ACTION MOTION TO Adopt Resolution 2023-040 Approving Amendments to the Hopkins Fire Department Relief Association Bylaws. OVERVIEW The Hopkins Fire Department Relief Association amended its Bylaws in October. The amendments are related to an option the relief association had chosen to provide deferred interest when the bylaws were written per state guidance in 2022 that is no longer allowed by MN law. The relief association has chosen not to offer deferred interest due to the complexity of the other options at this time. This is a return to the bylaw policy before the change in 2022 and will have no effect on any members who retired in the interim. SUPPORTING INFORMATION • Draft Resolution 2023-040 • Bylaws of the Hopkins Fire Department Relief Association  CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2023-040 A RESOLUTION APPROVING AMENDMENTS TO THE HOPKINS FIRE DEPARTMENT RELIEF ASSOCIATION BYLAWS WHEREAS, the Hopkins Fire Department Relief Association reviewed the Bylaws of the Hopkins Fire Department Relief Association; and WHEREAS, the Hopkins Fire Department Relief Association approved amendments to the Bylaws of the Hopkins Fire Department Relief Association; and NOW, THEREFORE, BE IT RESOLVED that the City of Hopkins hereby approves the amendment to the Bylaws of the Hopkins Fire Department Relief Association. Adopted by the City Council of the City of Hopkins on this 5th day of December 2023. By:___________________________ Patrick Hanlon, Mayor ATTEST: _______________________________ Amy Domeier, City Clerk  Finance Department CITY OF HOPKINS City Council Report 2023-136 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Nicholas Bishop, Finance Director Date: December 5, 2023 Subject: Ratify Checks Issued in November 2023 _____________________________________________________________________ RECOMMENDED ACTION MOTION TO Ratify Checks issued between November 1, 2023 and November 30, 2023 with numbers 132720 thru 133129 for total distribution of $1,591,862.57. OVERVIEW The checks issued, along with the purpose for those payments are attached for your review. The check registers and detail of those checks can be reviewed at any time in the Finance Department. SUPPORTING INFORMATION • Check Register  Finance Department CITY OF HOPKINS City Council Report 2023-135 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Nick Bishop, Finance Director Date: December 5, 2023 Subject: Renewal of General Liability and Property Insurance and Authorize Not Waiving of the Statutory Tort Liability on the League of Minnesota Insurance Trust Policy _____________________________________________________________________ RECOMMENDED ACTION MOTION TO approve renewal of the LMCIT Insurance Policy and to Not Waive the Statutory Tort Liability Limits to the Extent of Coverage Purchased. OVERVIEW The LMCIT notified its members of 2024 coverage rates in November of 2023. They indicated that insurance rates will decrease by an average of 0.75%. Liability rates will decrease by an average of 6%, auto physical damage will increase by an average of 10% and property rates will remain stable. The overall rate changes may not necessarily correspond with a specific City’s insurance premiums. Actual premiums are affected by changes in city expenditures, property values, payroll, experience rating and other exposure measures. Premiums were $264,814 in 2023 compared to a 2023 budget of $288,928. We anticipate that insurance premiums overall for Hopkins will be within the budgeted amounts for 2024. Finance continues to recommend the deductible amount of $20,000/$40,000 with $1,000 per occurrence after reaching the maximum $40,000. The current amount available in the Insurance Risk Fund to cover deductible costs is $271,014. In addition we will be sharing in a $3 Million LMCIT dividend this year. LMCIT has consistently paid out dividends since 1987, totaling approximately $366 Million. The dividend will add to our insurance reserves for potential claims and deductibles. The staff recommendation to not waive statutory tort liability limits is based on liability exposure to the City in the form of higher premiums. SUPPORTING INFORMATION • Election of Waiver of Tort Limits for Liability  LIABILITY COVERAGE WAIVER FORM Members who obtain liability coverage through the League of Minnesota Cities Insurance Trust (LMCIT) must complete and return this form to LMCIT before their effective date of coverage. Email completed form to your city’s underwriter, to pstech@lmc.org, or fax to 651.281.1298. Members who obtain liability coverage from LMCIT must decide whether to waive the statutory tort liability limits to the extent of the coverage purchased. The decision to waive or not waive the statutory tort limits must be made annually by the member’s governing body, in consultation with its attorney if necessary. The decision has the following effects: • If the member does not waive the statutory tort limits, an individual claimant could recover no more than $500,000 on any claim to which the statutory tort limits apply. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits would apply regardless of whether the member purchases the optional LMCIT excess liability coverage. • If the member waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could recover up to $2,000,000 for a single occurrence (under the waive option, the tort cap liability limits are only waived to the extent of the member’s liability coverage limits, and the LMCIT per occurrence limit is $2,000,000). The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to $2,000,000, regardless of the number of claimants. • If the member waives the statutory tort limits and purchases excess liability coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants. Claims to which the statutory municipal tort limits do not apply are not affected by this decision. City of Hopkins LMCIT Member Name: __________________________________________________________________________ ______________________________________________________________________________________________ Check one: ☐ The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minn. Stat. § 466.04. ☐ The member WAIVES the monetary limits on municipal tort liability established by Minn. Stat. § 466.04, to the extent of the limits of the liability coverage obtained from LMCIT. December 5, 2023 Date of member’s governing body meeting:___________________________________________________________ Signature: _____________________________________________________________________________________ Finance Director Position: _______________________________________________________________________________________ League of Minnesota Cities 3/2/2023 Liability Coverage Waiver Form Page 1  Administration CITY OF HOPKINS City Council Report 2023-131 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Amy Domeier, City Clerk Date: December 5, 2023 Subject: Resolution Approving an On-Sale Liquor and Sunday Sales Liquor License for Shaughnessy Plating LLC DBA Pink Ivy Kitchen and Bar _____________________________________________________________________ RECOMMENDED ACTION MOTION TO adopt a Resolution Approving an On-Sale Liquor and Sunday Sales Liquor License for Shaughnessy Plating LLC DBA Pink Ivy Kitchen and Bar. OVERVIEW Shaughnessy Plating LLC applied for an on-sale liquor license and Sunday sales liquor license at Pink Ivy Kitchen and Bar (“Pink Ivy”), a new restaurant to be located at 712 Mainstreet (formerly Cam Ranh Bay). The licensed premise includes the interior space and outdoor seating area at 712 Mainstreet. The owners plan to open Pink Ivy in mid- February. The Police Department and City Clerk reviewed the application for the liquor licenses requested and conducted a background investigation as required by state and local law. Staff have no reservations in approving the licenses based upon the results of the investigation. Upon City Council approval of the liquor licenses requested, the State applications will be submitted to the Minnesota Department of Public Safety, Alcohol and Gambling Enforcement Division, for certification. The liquor licenses will become effective upon all conditions being met in Resolution 2023-049 and will expire on June 30, 2024, subject to any subsequent renewals. SUPPORTING INFORMATION • Resolution 2023-049 • The complete application is on file in the City Clerk’s office.  CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2023-049 RESOLUTION APPROVING AN ON-SALE LIQUOR AND SUNDAY SALES LIQUOR LICENSE FOR SHAUGHNESSY PLATING LLC DBA PINK IVY KITCHEN AND BAR, WITH CONDITIONS WHEREAS, Shaughnessy Plating LLC DBA Pink Ivy Kitchen and Bar, applied for an On Sale Liquor and Sunday Sales Liquor License to be located at 712 Mainstreet, Hopkins; and WHEREAS, the Hopkins Police Department has reviewed the application as it is on file with the City Clerk and has no reservations about the license being issued. NOW, THEREFORE BE IT NOW RESOLVED, by the City Council of the City of Hopkins as follows: 1. The City Council approves an On Sale Liquor and Sunday Sales Liquor License for Shaughnessy Plating LLC DBA Pink Ivy Kitchen and Bar, for the premises located at 712 Mainstreet. The licensed premise includes the interior space and outdoor seating area at 712 Mainstreet. 2. The licenses are conditioned on the applicant’s ongoing compliance with its application that is on file with the City Clerk, and is further subject to the following: A. All terms and conditions of the City Code Chapter 4, Alcoholic Beverages, and Minnesota Statutes, Chapter 340A. B. Final inspection by the City Building Official. C. Final inspection by the Hennepin County Health Inspector. 3. The on-sale intoxicating license issued herein is further conditioned on the existence and operation of a restaurant, as that term is defined in Hopkins City Code, section 4-1(b), within the licensed premises. 4. Upon adherence with the contingencies set forth herein, the Mayor and City Clerk are hereby authorized to execute said licenses. 5. The licenses shall expire at 11:59 p.m. on June 30, 2024, subject to subsequent renewals. Adopted by the City Council of the City of Hopkins on this 5th day of December 2023. ______________________________ Patrick Hanlon, Mayor ATTEST: _____________________________ Amy Domeier, City Clerk  Finance Department CITY OF HOPKINS City Council Report 2023-134 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Nick Bishop, Finance Director Date: December 5, 2023 Subject: First Reading of An Ordinance Granting Centerpoint Energy a Franchise for Gas Energy _____________________________________________________________________ RECOMMENDED ACTION MOTION TO adopt Ordinance No. 2023-1205 Granting Centerpoint Energy Resources Corp., A Minnesota Corporation, d/b/a Centerpoint Energy Minnesota Gas, its Successors and Assigns, a nonexclusive Franchise to Construct, Operate, Repair and Maintain Facilities and Equipment for the Transportation, Distribution, Manufacture and Sale of Gas Energy and to use the Public Ways and Grounds of the City of Hopkins, Hennepin County, Minnesota, for Such Purposes; and Prescribing Certain Terms and Conditions therof for first reading. OVERVIEW Centerpoint Energy currently holds a franchise to operate and supply gas within the City of Hopkins. The franchise was adopted in 2002 for a 20-year term and is due for renewal. Franchises are granted under Section 10.02 of the City Code and can be a maximum of 20 years. Ordinance No. 2023-1205 continues Centerpoint’s Franchise for an additional 20-year term. It does not have any significant changes compared to the 2002 Ordinance and will not cause any changes to utility services of City Operations. SUPPORTING INFORMATION • Ordinance No. 2023-1205  CITY OF HOPKINS COUNTY OF HENNEPIN ORDINANCE NO. 2023-1205 AN ORDINANCE GRANTING CENTERPOINT ENERGY RESOURCES CORP., A MINNESOTA CORPORATION, d/b/a CENTERPOINT ENERGY MINNESOTA GAS (“CENTERPOINT ENERGY”), ITS SUCCESSORS AND ASSIGNS, A NONEXCLUSIVE FRANCHISE TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN FACILITIES AND EQUIPMENT FOR THE TRANSPORTATION, DISTRIBUTION, MANUFACTURE AND SALE OF GAS ENERGY AND TO USE THE PUBLIC WAYS AND GROUNDS OF THE CITY OF HOPKINS, HENNEPIN COUNTY, MINNESOTA, FOR SUCH PURPOSES; AND, PRESCRIBING CERTAIN TERMS AND CONDITIONS THEREOF THE CITY COUNCIL OF THE CITY OF HOPKINS DOES HEREBY ORDAIN: SECTION 1. DEFINITIONS For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall have the following meanings: City. The City of Hopkins, County of Hennepin, State of Minnesota. City Utility System. Facilities used for providing public utility service owned or operated by City or agency thereof, including sewer, storm sewer, water service, street lighting and traffic signals, but excluding facilities for providing heating, lighting, or other forms of energy. Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal government, which preempts all or part of the authority to regulate gas retail rates now vested in the Minnesota Public Utilities Commission. Company. CenterPoint Energy Resources Corp., a Minnesota corporation, d/b/a CenterPoint Energy Minnesota Gas its successors and assigns including all successors or assigns that own or operate any part or parts of the Gas Facilities subject to this Franchise. Franchise. This gas franchise ordinance, also referred to as Ordinance. Gas Energy. Gas Energy includes both retail and wholesale natural, manufactured or mixed gas. Gas Facilities. Gas transmission and distribution pipes, lines, mains, ducts, regulators, fixtures and all necessary equipment and appurtenances owned or operated by the Company for the purpose of providing Gas Energy for retail or wholesale use. Notice. A writing served by any party or parties on any other party or parties. Notice to Company shall be mailed to CenterPoint Energy, Minnesota Division Vice President, 505 Nicollet Mall, Minneapolis, Minnesota, 55402. Notice to the City shall be mailed to City Manager, 1010 First DOCSOPEN\HP145\106\908429.v1-10/12/23 Street South, Hopkins, MN 55343. Any party may change its respective address for the purpose of this Ordinance by written Notice to the other parties. Ordinance. This gas franchise ordinance, also referred to as the Franchise. Public Way. Public right-of-way within the City as defined in Minnesota Statutes § 237.163, subdivision 3 . Public Ground. Land owned or otherwise controlled by the City for utility easements, park, trail, walkway, open space or other public property, which is held for use in common by the public or for public benefit. SECTION 2. ADOPTION OF FRANCHISE 2.1 Grant of Franchise. City hereby grants Company, for a period of twenty (20) years from the date this Ordinance is passed and approved by the City, the right to import, manufacture, distribute and sell Gas Energy for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in the future and also the right to transport Gas Energy through the limits of the City for use outside of the City limits. For these purposes, Company may construct, operate, repair and maintain Gas Facilities in, on, over, under and across the Public Ways and, as may be provided by separate instrument, Public Grounds, subject to the provisions of this Ordinance. Company may do all reasonable things necessary or customary to accomplish these purposes, subject, however, to such reasonable regulations, or ordinance or permit requirements, as may be imposed by the City in accordance with state law. 2.2 Effective Date; Written Acceptance. This Franchise shall be in force and effect from and after the passage of this Ordinance and publication as required by law and its acceptance in writing by Company. Company shall file a written acceptance with the City within sixty (60) days after passage. 2.3. Service and Gas Rates. The terms and conditions of service and the rates to be charged by Company for Gas Energy in City are subject to the jurisdiction of the Commission. 2.4. Publication Expense. Company shall reimburse the City’s expense of publication of this Ordinance. 2.5. Dispute Resolution. If either party asserts that the other party is in default in the performance of any obligation hereunder, the complaining party shall notify the other party of the default and the desired remedy. The notification shall be written. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within thirty (30) days of the written Notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of this mediator. If a mediator is not used or if the parties are unable to resolve the dispute within thirty (30) days after first meeting with the selected mediator, either party may commence an action in District Court to interpret and enforce this Franchise or for such other relief as may be permitted by law or equity. 2.6. Continuation of Franchise. If the City and the Company are unable to agree on the terms of a new franchise by the time this Franchise expires, this Franchise will remain in effect until DOCSOPEN\HP145\106\908429.v1-10/12/23 a new franchise is agreed upon, or until ninety (90) days after the City or the Company serves written Notice to the other party of its intention to allow Franchise to expire, but in no event shall this franchise continue for more than one year after the expiration of the 20-year term set forth in Section 2.1. SECTION 3. LOCATION, OTHER REGULATIONS 3.1. Location of Facilities. Gas Facilities shall be located, constructed, and maintained so as not to interfere with the safety and convenience of ordinary travel along and over Public Ways and so as not to disrupt normal operation of any City Utility System including specifically any street lighting or traffic signal system of the City. Gas Facilities may be located on Public Grounds in a location mutually agreed upon by the city and company. The location and relocation of Gas Facilities shall be subject to reasonable regulations of the City consistent with authority granted the City to manage its Public Ways and Public Grounds under state law, to the extent not inconsistent with a specific term of this Franchise. Company shall provide field locations for its underground Gas Facilities within the City consistent with the requirements of Minnesota Statutes, Chapter 216D. 3.2. Street Openings. Company shall not open or disturb the surface of any Public Way or Public Ground for any purpose without first having obtained a permit from the City, if required by a separate ordinance, for which the City may impose a reasonable fee. Permit conditions imposed on Company shall not be more burdensome than those imposed on other public right-of-way users for similar facilities or work. Company may, however, open and disturb the surface of any Public Way or Public Ground without a permit if (i) an emergency exists requiring the immediate repair of Gas Facilities and (ii) Company gives telephone, email or similar Notice to the City before commencement of the emergency repair, if reasonably possible. Within two (2) business days after commencing the repair, Company shall apply for any required permits and pay any required fees. 3.3. Restoration. After undertaking any work requiring the opening of any Public Way or Public Ground, the Company shall restore the Public Ways or Public Grounds in accordance with Minnesota Rules, part 7819.1100. Company shall restore the Public Ground to as good a condition as formerly existed, and shall maintain the surface in good condition for one (1) year thereafter. All work shall be completed as promptly as weather permits, and if Company shall not promptly perform and complete the work, remove all dirt, rubbish, equipment and material, and put the Public Ground in the said condition, the City shall have, after demand to Company to cure and the passage of a reasonable period of time following the demand, but not to exceed five (5) days, the right to make the restoration of the Public Ways or Public Grounds at the expense of Company. Company shall pay to the City the cost of such work done for or performed by the City. The Company shall not be required to post a construction performance bond. 3.4. Avoid Damage to Gas Facilities. The Company must take reasonable measures to prevent the Gas Facilities from causing damage to persons or property. The Company must take reasonable measures to protect the Gas Facilities from damage that could be inflicted on the Gas Facilities by persons, property or the elements. Per Minnesota Statutes § 216D.05, the City must take protective measures when it performs work near the Gas Facilities. 3.5. Notice of Improvements to Streets. The City will give Company reasonable written Notice of plans for improvements to Public Ways and Public Grounds where the City has reason to DOCSOPEN\HP145\106\908429.v1-10/12/23 believe that Gas Facilities may affect or be affected by the improvement. The Notice will contain: (i) the nature and character of the improvements, (ii) the Public Ways or Public Grounds upon which the improvements are to be made, (iii) the extent of the improvements, (iv) the time when the City will start the work, and (v) if more than one Public Way or Public Grounds is involved, the order in which the work is to proceed. The Notice will be given to Company a minimum of eight (8) weeks time, considering seasonal working conditions, in advance of the actual commencement of the work to permit Company to make any additions, alterations or repairs to its Gas Facilities Company deems necessary. 3.6 Mapping Information. If requested by City, Company must promptly provide complete and accurate mapping information for any of its Gas Facilities in accordance with the requirements of Minnesota Rules, parts 7819.4000 and 7819.4100. SECTION 4. RELOCATIONS 4.1. Relocation in Public Ways. If the City orders Company to relocate its Gas Facilities in a Public Way for a City improvement project including changes to the Public Way, or construction or reconstruction of any City Utility System in the Public Way, the Company and City shall comply with the provisions of Minnesota Rules, part 7819.3100 with respect to the Company’s relocation of Gas Facilities. 4.2 Relocation in Public Grounds. City may require Company at Company’s expense to relocate or remove its Gas Facilities from Public Grounds upon a finding by City that the Gas Facilities have become or will become a substantial impairment to the existing or proposed public use of the Public Grounds. Nothing in this Section 4.2 shall be construed so as to invalidate or impair any existing company easements in Public Grounds. 4.3. Projects with Federal Funding. Relocation, removal or rearrangement of any Company Gas Facilities made necessary because of the extension into or through City of a federally aided highway project shall be governed by the provisions of Minnesota Statutes §§ 161.45 and 161.46. SECTION 5. INDEMNIFICATION 5.1. Indemnity of City. Company shall indemnify and hold the City harmless from any and all liability, on account of injury to persons or damage to property occasioned by the construction, maintenance, repair, inspection, the issuance of permits or the operation of the Gas Facilities located in the Public Ways and Public Grounds. The City shall not be indemnified for losses or claims occasioned through its own negligence or otherwise wrongful act or omission except for losses or claims arising out of or alleging the City's negligence as to the issuance of permits for, or inspection of, Company's plans or work. 5.2. Defense of City. In the event a suit is brought against the City under circumstances where this agreement to indemnify applies, Company at its sole cost and expense shall defend the City in such suit if written Notice thereof is promptly given to Company within a period wherein Company is not prejudiced by lack of such Notice. If Company is required to indemnify and defend, DOCSOPEN\HP145\106\908429.v1-10/12/23 it will thereafter have control of such litigation, but Company may not settle such litigation without the consent of the City, which consent shall not be unreasonably withheld. This section is not, as to third parties, a waiver of any defense or immunity otherwise available to the City. The Company, in defending any action on behalf of the City, shall be entitled to assert in any action every defense or immunity that the City could assert in its own behalf. This Franchise agreement shall not be interpreted to constitute a waiver by the City of any of its defenses of immunity or limitations on liability under Minnesota Statutes, Chapter 466. SECTION 6. VACATION OF PUBLIC WAYS AND PUBLIC GROUNDS The City shall give Company at least two (2) weeks’ prior written Notice of a proposed vacation of a Public Ways or Public Grounds. The City and the Company shall comply with Minnesota Rules, parts 7819.3100 and 7819.3200 with respect to any request for vacation. SECTION 7. CHANGE IN FORM OF GOVERNMENT Any change in the form of government of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the rights and obligations of the City provided in this Ordinance. SECTION 8. FRANCHISE FEE 8.1. Form. During the term of the franchise hereby granted, the City shall require the Company to pay a franchise fee. The franchise fee will be collected in a manner that is legally acceptable to the Company. The amount of the fee collected may differ for each customer class. The City will use a formula that provides a stable and predictable amount of fees, without placing the Company at a competitive disadvantage. Such fee shall not exceed any amount that the Company may legally charge to its customers prior to payment to the City and be consistent with the Minnesota Public Utility Commission’s March 23, 2011, Order establishing franchise fee filing requirements in Docket No. E,G999/CI-09-970. If the Company claims that the City required fee formula is discriminatory or otherwise places the Company at a competitive disadvantage, the Company will provide a formula that will produce a substantially similar fee amount to the City. 8.2. Separate Ordinance. Any modification to the franchise fee and fee schedule contained in Ordinance No. 2023-1200, enacted in accordance with Minnesota Statutes §§ 216B.36 and 301B.01, shall be imposed by separate ordinance duly adopted by the City Council. The effective date of any such franchise fee ordinance shall be no less than ninety (90) days after written Notice enclosing a copy of the duly adopted and approved ordinance has been served upon the Company by Certified mail. Section 2.5 shall constitute the sole remedy for solving disputes between Company and City in regard to the interpretation of, or enforcement of, the separate ordinance. 8.3. Condition of Fee. The separate ordinance imposing the fee shall not be effective against the Company unless it lawfully imposes a fee of the same or substantially similar amount on the sale of energy within the City by any other energy supplier, provided that, as to such supplier, the City has the authority or contractual right to require a franchise fee or similar fee through an agreed- upon franchise. DOCSOPEN\HP145\106\908429.v1-10/12/23  8.4. Collection of Fee. The franchise fee shall be payable not less than quarterly during complete billing months of the period for which payment is to be made. The franchise fee formula may be changed from time to time, however, the change shall meet the Notice requirements provided above and the fee may not be changed more often than annually. Such fee shall not exceed any amount that the Company may legally charge to its customers prior to payment to the City and be consistent with Minnesota Public Utility Commission’s March 23, 2011, Order establishing franchise fee filing requirements in Docket No. E,G999/CI-09-970. Such fee is subject to subsequent reductions to account for uncollectibles and customer refunds incurred by the Company. The Company shall not be responsible to pay City fees that Company is unable to collect under Commission rules or order. Company agrees to make available for inspection by City at reasonable times all records necessary to audit Company’s determination of the franchise fee payments. 8.5. Continuation of Franchise Fee. If this Franchise expires and the City and the Company are unable to agree upon terms of a new franchise, the franchise fee, if any being imposed by the City at the time this Franchise expires, will remain in effect until a new franchise is agreed upon. However, the franchise fee will not remain in effect for more than one (1) year after the franchise expires as stated in Section 2.6 of this Franchise. If for any reason the franchise terminates, the franchise fee will terminate at the same time. SECTION 9. ABANDONED FACILITIES The Company shall comply with Minnesota Rules, part 7819.3300, as it may be amended from time to time with respect to abandoned facilities in Public Ways. The Company shall maintain records describing the location of all abandoned and retired Gas Facilities within the Public Ways and Public Grounds, produce such records at the City’s request and comply with the location requirements of Minnesota Statutes § 216D.04 with respect to all Gas Facilities located in Public Ways and Public Grounds. SECTION 10. PROVISIONS OF ORDINANCE 10.1. Severability. Every section, provision or part of this Ordinance is declared separate from every other section, provision or part; and if any section, provision or part shall be held invalid, it shall not affect any other section, provision or part. Where a provision of any other City ordinance is inconsistent with the provisions of this Ordinance, the provisions of this Ordinance shall prevail. 10.2. Limitation on Applicability. This Ordinance constitutes a franchise between City and Company as the only parties. No provisions herein shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person as a third-party beneficiary of this Ordinance or of any one or more of the terms hereof, or otherwise give rise to any cause of action in any person not a party hereto. SECTION 11. AMENDMENT PROCEDURE Either party may propose at any time that this Franchise Ordinance be amended. Franchise Ordinance may be amended at any time by the City passing a subsequent ordinance declaring the provisions of the amendment, which amendatory ordinance shall become effective upon the filing of DOCSOPEN\HP145\106\908429.v1-10/12/23 Company’s written consent thereto with the City Clerk within ninety (90) days after the effective date of the amendatory ordinance. First Reading: December 5, 2023 Second Reading: December 19, 2023 Date of Publication: December 28, 2023 Date Ordinance Takes Effect: January 1, 2024 ______________________________________ Patrick Hanlon, Mayor AYES: NAYS: Attest: ______________________________________ Amy Domeier, City Clerk DOCSOPEN\HP145\106\908429.v1-10/12/23  Planning & Development CITY OF HOPKINS City Council Report 2023-133 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Ryan Krzos, City Planner Date: December 5, 2023 Subject: First Reading of an Ordinance Amending the Development Code Regarding Signage _____________________________________________________________________ RECOMMENDED ACTION MOTION TO Adopt for First Reading, Ordinance 2023-1204 amending the Hopkins Development Code regarding signage. OVERVIEW The City’s Development Code contains provisions to regulate signage displayed in Hopkins. When the Development Code was updated, the signage related provisions were mostly unchanged and carried over from the previous Zoning Ordinance. While a more complete update of the sign code is warranted in the future, two issues are needing more immediate consideration for amendment. The first issue relates to the definition of sign area, the second matter would create a new type of sign for pedestrian wayfinding. Sign Area Definition One of the basic standards contained in the sign code is the amount of sign area allowed per building. The definition of “Sign area” – see below – determines how the area calculation is made. Staff finds that the underlined operational provisions of the definition are vague and unnecessarily complicate the calculation methodology. (51) Sign area. A measurement of the area (size/square footage) within the frame of the sign, except that when the width of the frame exceeds 12 inches in the frame must be included in calculating sign area. When letters or graphics are mounted directly on a wall or fascia without a frame, the calculation of the sign's area must include the area extending 6 inches beyond the periphery formed around the letters or graphics in a plane figure bounded by straight lines. Each surface utilized to display a message or to attract attention must be measured as a separate sign. Symbols, flags, pictures, wording, figures or other forms of graphics painted on or attached to windows, walls, awnings, freestanding structures, suspended by balloons, or kites or on persons, animals, or vehicles are considered a sign and are included in calculating total sign area. To clarify the practice of calculating sign area staff is proposing to modify the text as follows: Sign area. A measurement of the area (size/square footage) within the frame of the sign, excluding any structural elements outside the limits of such sign and not forming an integral part of the display. When letters or graphics are mounted directly on a wall, fascia, canopy, or awning without a frame, the calculation of the sign's area shall be the smallest rectangle which encloses the sign message or logo. Each surface utilized to display a message or to attract attention must be measured as a separate sign. Symbols, flags, pictures, wording, figures or other forms of graphics painted on or attached to windows, walls, awnings, freestanding structures, suspended by balloons, or kites or on persons, animals, or vehicles are considered a sign and are included in calculating total sign area. The type of building signage typically installed at present consists primarily of individual letters mounted on the exterior wall. Signage within a frame is a style generally falling out of favor for new signage. As such, the need to include frame width in sign area is much less relevant today, and thus can be clarified within definition from staff’s perspective. The methodology for measuring sign area for letters mounted on a wall is remains largely the same, however the language is spelled out more clearly. The revised language is also more consistent the language used by peer communities. Walkway Signage The sign code defines specific types of signs that are allowed. One such type is a driveway sign. These are smaller signs that are to be installed near driveways and typically contain wayfinding information such as “enter” “exit” or similar information. These signs are required to be within 10 feet of a driveway and are limited to three feet in height and six square feet in sign area. Slightly larger signs (eight square feet in area and six feet in height) are allowed internal to site driveways within larger developments. Recognizing that pedestrian travel is equally essential to guide, staff is proposing to add walkway signage as a new type of sign. The concept for walkway signage would be similar to driveway signage except that the signs would need to be located near internal sidewalks. Walkway signs would be limited to the same display area size (six square feet), but the height maximum of walkway signs would be five feet in order to allow the display at eye level. Only properties with multiple buildings or sites over 50,000 square feet in area would be eligible for walkway signs consistent with the provisions for internal driveway signage. The signage code cannot mandate the type of information posted on such signage; due to content-based requirements being prohibited. Review Criteria In deciding Development Code text amendments, the City is acting in a legislative capacity. When considering a legislative action, the City is creating development standards to regulate land use. Under the law, the City has wide flexibility to create standards that will ensure the type of development it desires; however, these regulations must be reasonable and supported by a rational basis relating to promoting the public health, safety and welfare. Per the Code, in making decisions about development code text amendments, the Planning & Zoning Commission and City Council must consider all relevant factors, including at least the following:  (1) Whether the proposed development code text amendment is in conformity with the comprehensive plan; and (2) Whether the proposed development code text amendment corrects an error or inconsistency or will help meet the challenge of a changed or changing condition. Consistency with the Comprehensive Plan The Comprehensive Plan sets a land use goal to encourage all public and private developments to be well-designed, durable, human-scaled, and pedestrian oriented. Providing a clear standard for measuring the size of signage allows for consistency among applications which will contribute to better overall design. Adding the proposed walkway signage will further pedestrian orientation as wayfinding signage at walkway scale allows for efficient navigation. Correcting an Error or Addressing a Changing Condition Staff proposes the text amendment to modify the sign area definition to address a vague and overly complicated standard. Staff proposes the addition of walkway signage to address the inconsistency between allowing driveway signs oriented toward motorists without having similar signage oriented toward pedestrians. Planning and Zoning Commission Review The Planning and Zoning Commission held a public hearing on the proposed ordinance amendment at their November 28, 2023 meeting. Notice of the public hearing was published in the City’s official newspaper. No comments from the public were received following publication or during the public hearing. The Commission unanimously approved a resolution recommending the City Council approve the proposed Ordinance. SUPPORTING INFORMATION • Proposed Ordinance 2023-1204 Amending the Hopkins Development Code Regarding Signage  CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA ORIDNANCE 2023-1204 AN ORDINANCE AMENDING CHAPTER 102 OF THE HOPKINS CITY CODE REGARDING SIGNAGE THE CITY COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AS FOLLOWS: SECTION 1. Hopkins City Code, Part III, Chapter 102, Article 10, Section 102-10110, is hereby amended by adding the double-underlined language as follows: 102-10110 Driveway and Walkway Signs 102-10110 (a) ENTRANCES AND EXITS One driveway sign may be installed at each vehicle entrance and exit to any lot occupied by an allowed nonresidential use or multi-unit residential building. Such signs must be located within 10 feet of the intersection of the driveway and the street right-of-way. Driveway signs may be illuminated but may not exceed 4 square feet in area or 3 feet in height. 102-10110 (b) INTERNAL (1) Off-street parking areas with a capacity of more than 4 vehicles, multi-tenant developments and uses on lots exceeding 50,000 square feet in area may display internal site driveway signs. Such signs must be located within 10 feet of an internal site driveway or drive aisle and may not exceed 8 square feet in area or 6 feet in height. (2) Developments containing multiple buildings on a lot, or lots exceeding 50,000 square feet in area may display internal walkway signs. Such signs must be located within 10 feet of an internal walkway and may not exceed 6 square feet in area or five feet in height. SECTION 2. Hopkins City Code, Part III, Chapter 102, Article 10, Section 102-1010 (f) (61), is hereby amended by adding the double-underlined language as follows: (61) Walkway sign. A sign located near an internal site sidewalk circulation network that provides a permanent pathway for pedestrians between public streets and building entrances. (62) Window sign. Any building sign, pictures, symbol, or combination thereof, designed to communicate information about an activity, business, commodity, event, sale, or service, that is placed inside a window or upon the window panes or glass and is visible from the exterior of the window. SECTION 3. Hopkins City Code, Part III, Chapter 102, Article 10, Section 102-1010 (f) (51), is hereby amended by adding the double-underlined language as follows:  (51) Sign area. A measurement of the area (size/square footage) within the frame of the sign, excluding any structural elements outside the limits of such sign and not forming an integral part of the display. except that when the width of the frame exceeds 12 inches in the frame must be included in calculating sign area. When letters or graphics are mounted directly on a wall, or fascia, canopy, or awning without a frame, the calculation of the sign's area shall be the smallest rectangle which encloses the sign message or logo. must include the area extending 6 inches beyond the periphery formed around the letters or graphics in a plane figure bounded by straight lines. Each surface utilized to display a message or to attract attention must be measured as a separate sign. Symbols, flags, pictures, wording, figures or other forms of graphics painted on or attached to windows, walls, awnings, freestanding structures, suspended by balloons, or kites or on persons, animals, or vehicles are considered a sign and are included in calculating total sign area. SECTION 4. The effective date of this ordinance shall be December 28, 2023. First Reading: December 5, 2023 Second Reading: December 19, 2023 Date of Publication: December 28, 2023 Date Ordinance Takes Effect: December 28, 2023 By:___________________________ Patrick Hanlon, Mayor ATTEST: _______________________________ Amy Domeier, City Clerk