05 24 21 City Council MinutesNew Hope City Council May 24, 2021
Page 1
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes May 24, 2021
Regular Meeting City Hall, 7:00 p.m.
CALL TO ORDER The New Hope City Council met in regular session pursuant to due call and notice
thereof; Mayor Hemken called the meeting to order at 7:00 p.m.
PLEDGE OF
ALLEGIANCE
The City Council and all present stood for the Pledge of Allegiance.
ROLL CALL Council present:
Staff present:
Kathi Hemken, Mayor
John Elder, Council Member (arrived at 7:15 p.m.)
Andy Hoffe, Council Member
Michael Isenberg, Council Member
Jonathan London, Council Member
Kirk McDonald, City Manager
Jeff Alger, Community Development Specialist
Dan Boyum, City Engineer
Tim Hoyt, Director of Police
Beth Kramer, Communications Coordinator
Dave Lemke, Public Works Operations Manager
Valerie Leone, City Clerk
Jeff Sargent, Director of Community Development
Bernie Weber, Director of Public Works
Stacy Woods, Assistant City Attorney
APPROVAL OF
MINUTES
Motion was made by Council Member Isenberg, seconded by Council Member
Hoffe, to approve the regular meeting minutes of May 10, 2021. All present voted
in favor. Motion carried.
OPEN FORUM
There was no one present desirous of addressing the council.
ROTATING VOTES
Please note that votes taken on each agenda item are called by the secretary on a
rotating basis; however, the written minutes always list the mayor’s name first
followed by the council members’ in alphabetical order.
PRESENTATIONS:
FIRE CHIEF
COMMENDATION
Item 5.1
Mayor Hemken introduced for discussion Item 5.1, Recognition of New Hope
Public Works employee with Fire Chief’s Commendation.
Ms. Sarah Larson, Fire Chief of West Metro Fire‐Rescue District, presented Brad
Johnson with a chief’s commendation for his heroic act in the city on April 9, 2021,
during the course of his duties as a public works employee.
2020 ANNUAL
FINANCIAL REPORT
Mayor Hemken introduced for discussion Item 5.2, Motion to accept the 2020
annual financial report.
New Hope City Council May 24, 2021
Page 2
Item 5.2 Mr. Kirk McDonald, city manager, introduced Bill Lauer of Malloy, Montague,
Karnowski, Radosevich & Co. (MMKR). Mr. McDonald recommended that the
Council accept the 2020 audit to enable the city to submit the audit to the state
auditor in a timely manner.
Mr. Bill Lauer summarized the 2020 audit. He reviewed the auditor’s role and
stated the city received a “clean opinion,” which is the highest reporting available.
He stated the city’s records were found to be in good condition. He stated there
were no findings this year for internal control and compliance report. He indicated
a federal single audit was required for 2020 as the city received CARES Act funds.
Mr. Lauer stated the city’s fund balance as of December 31, 2020, was $27,455,251,
a decrease of $1,795,737 from the prior year. He stated at the end of the fiscal year,
the unassigned fund balance for the General Fund was $8,901,587 or 63 percent of
total General Fund 2020 expenditures and transfers out. He stated the city’s total
bonded debt decreased by $2,612,989 from the previous year.
Mr. Lauer reviewed the enterprise funds financial position (sewer utility, water
utility, golf utility, golf course, ice arena, storm water and street lighting). He stated
in total the net position of the city’s enterprise funds increased by $2,294,461.
Council Member London commented on the small expense for replacement value
within net investments of enterprise funds. Mr. Lauer explained that $20 million
of the $26 million is capital assets. He noted the city should review replacement
impact when setting various rates.
Council thanked Mr. Lauer for his presentation. City Manager McDonald noted
the favorable report is reflective of the efforts of city staff and AEM.
MOTION
Item 5.2
Motion was made by Council Member Isenberg, seconded by Council Member
Hoffe, to accept the 2020 annual financial report. All present voted in favor.
Motion carried.
CONSENT AGENDA Mayor Hemken introduced the consent items as listed for consideration and stated
that all items will be enacted by one motion unless requested that an item be
removed for discussion. Mr. Kirk McDonald, city manager, reviewed the consent
items.
FINANCIAL CLAIMS
Item 6.2
Approval of financial claims through May 24, 2021.
RESOLUTION 2021‐63
Item 6.4
Resolution approving transfer of CARES Act funding from 2020 Audit General
Fund balance to Temporary Financing Fund.
RESOLUTION 2021‐64
Item 6.5
Resolution approving $500,000 transfer from park infrastructure fund to ice arena
operating fund for debt service and capital improvements.
MOTION
Consent Items
Motion was made by Council Member Elder, seconded by Council Member Hoffe,
to approve the Consent items. All present voted in favor. Motion carried.
New Hope City Council May 24, 2021
Page 3
PLANNING CASE
21‐05
Item 8.1
Mayor Hemken introduced for discussion Item 8.1, Resolution approving variance
to setback requirement at 7711 49th Avenue North (Planning Case 21‐05).
Mr. Jeff Alger, community development specialist, explained the property owners
of 7711 49th Avenue North are requesting a variance to allow for the construction
of a 600 square‐foot addition behind the existing garage at the property. The
proposed addition would include a living/kitchen area, a bedroom, and a
bathroom. It would connect to the existing living space through the garage. The
home at 7711 49th Avenue North is a legal nonconforming structure as the
northeast corner of the garage is set back 3.9 feet from the east property line. The
R‐1, Single‐family Residential district requires a five foot side yard setback for
attached garages. The proposed addition would extend the building to the south,
following the north garage wall. This configuration would result in the new
addition having a side yard setback ranging from 6.5 feet to 7.5 feet. The R‐1,
Single‐family Residential district requires a 10‐foot side yard setback for living
space. A variance is required since the addition would not meet the required
setback.
Mr. Alger stated the Planning Commission considered the request for a 3.5 foot
side yard setback variance at its May 4 meeting and voted 9‐0 in favor. He
reviewed the variance criteria. Mr. Alger stated the Planning Commission dialogue
resulted in additional conditions within the resolution to ensure the entire
property remains a single‐family home with one address and that the expansion is
not for rental purposes.
Council Member London inquired regarding drainage.
Mr. Dan Boyum, city engineer, explained the grading plan will be reviewed with
the building official to ensure the drainage is directed towards the street, not the
adjacent property.
Mr. Brian Hubbard, property owner of 7711 49th Avenue North, was recognized.
He explained his mother‐in‐law will reside in the new living space. He indicated
he has spoken with his neighbor to the east regarding the proposed project, and
the neighbor has no concern. Mr. Hubbard assured Council that he has no
intention of renting a portion of the home.
Council thanked Mr. Hubbard for choosing to remain in New Hope and making
improvements to the property.
RESOLUTION 2021‐65
Item 8.1
Council Member London introduced the following resolution and moved its
adoption: “RESOLUTION APPROVING VARIANCE TO SETBACK
REQUIREMENT AT 7711 49TH AVENUE NORTH (PLANNING CASE 21‐05).”
The motion for the adoption of the foregoing resolution was seconded by Council
Member Elder, and upon vote being taken thereon, the following voted in favor
thereof: Hemken, Elder, Hoffe, Isenberg, London; and the following voted against
the same: None; Abstained: None; Absent: None; whereupon the resolution was
declared duly passed and adopted, signed by the mayor which was attested to by
the city clerk.
New Hope City Council May 24, 2021
Page 4
2021 SANITARY
SEWER PIPE LINING
AWARD CONTRACT
(IMPROVEMENT
PROJECT NO. 1073)
Item 8.2
Mayor Hemken introduced for discussion Item 8.2, Resolution awarding a
contract to Hydro‐Klean, LLC in the amount of $80,413.38 for lining sanitary sewer
pipe in 2021 (Improvement Project No. 1073).
Mr. Dan Boyum, city engineer, stated the city undertakes an annual sanitary sewer
lining project to reduce inflow and infiltration into the sanitary sewer system. He stated
there is 377,178 feet of sanitary sewer pipe in New Hope and 68,423 (18%) has been
upgraded with Cured in Place Pipe (CIPP) lining.
Mr. Boyum stated the city previously awarded the 2020/2021 sewer lining project to
Visu‐Sewer to line sanitary sewer in 2020 and 2021. Bids came in significantly under
budget and a change order was added in 2020 for additional work. Approximately
$130,000 of the initial budget is still available in the 2021 budget. Bids were sought for
lining 2,110 feet of sewer pipe in the Liberty Park neighborhood. The low bid was
submitted by Hydro‐Klean, LLC for $80,413.38. He stated the project cost, including
contingency and engineering fees, is $101,320.86.
Council Member London asked if the lining project’s effectiveness can be measured.
Mr. Boyum reported the area was previously studied and metered for inflow and
infiltration. He stated after the lining is done, the meters can be installed again to obtain
measurements.
Mr. Kirk McDonald, city manager, pointed out the charge from Met Council to the city
has decreased due to the city’s ongoing I/I reduction efforts. Mr. Bernie Weber, director
of public works, stated the pipe lining also adds an additional 50 years to the life of the
infrastructure.
RESOLUTION 2021‐66
Item 8.2
Council Member London introduced the following resolution and moved its
adoption: “RESOLUTION AWARDING A CONTRACT TO HYDRO‐KLEAN,
LLC IN THE AMOUNT OF $80,413.38 FOR LINING SANITARY SEWER PIPE
IN 2021 (IMPROVEMENT PROJECT NO. 1073).” The motion for the adoption of
the foregoing resolution was seconded by Council Member Elder, and upon vote
being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe,
Isenberg, London; and the following voted against the same: None; Abstained:
None; Absent: None; whereupon the resolution was declared duly passed and
adopted, signed by the mayor which was attested to by the city clerk.
PUBLIC WORKS
PROJECT ‐ PHASE 1
(IMPROVEMENT
PROJECT NO. 1039)
Item 8.3
Mayor Hemken introduced for discussion Item 8.3, Resolution awarding contract
to Rochon Corporation for construction of Phase 1 Improvements at the Public
Works Facility (Improvement Project No. 1039).
Mr. Dan Boyum, city engineer, explained that on April 15, 2021, Council approved
plans and specifications for phase 1 improvements at the public works facility. Bids
were opened on May 6 and seven companies submitted bids. In addition to the
base bid, there were five alternate bids for wall panels, flooring, lunchroom
improvements, and garage doors for the dirt room. Mr. Boyum illustrated the
proposed building plans. He stated the low bid was submitted by Rochon
Corporation with a base bid of $2,255,000. Staff recommends awarding the contract
to Rochon Corporation for the base bid and Alternate 1 for $61,000 for translucent
wall panels in the garage area. The total contract would be $2,316,000. Staff
New Hope City Council May 24, 2021
Page 5
recommends deferring the other alternates to the phase 2 project. The intent is to
complete phase 1 at this time and phase 2 in 2024 or later with internal financing
and avoid the need to bond for the improvements. The engineer’s estimate was
$1,737,785. The higher bid is a result of design changes identified during the
feasibility study as well as an increase in building material costs seen nationwide.
The project cost, including indirect costs, is $2,508,280. It is recommended that
phase 1 be paid by the central garage building replacement fund ($1,650,000
balance) and a grant or a loan from the Temporary Financing Fund ($858,280). The
Temporary Financing Fund is utilized for gap financing on city projects to avoid
bonding, and the fund will have a balance of $4,441,664 at the end of May.
Mr. Boyum noted the operating costs for phase 1 improvements is $1,900/year for
air conditioning in the mechanics bay and $1,700/year to heat the soil storage
building. He stated an analysis was conducted for costs and equipment
replacement savings associated with storing vehicles and equipment indoors
instead of outside. He stated the savings by moving the fleet vehicles inside is
$33,013 annually for a total estimated savings of $990,393 over 30 years (using 2.5
years of extended life for indoor storage).
Mr. Boyum reviewed the proposed project schedule with construction beginning
in June and being substantially complete by November, 2021.
Council Member London commented that the expansion for indoor storage of
equipment is based on the reasoning that it will extend life cycles of
equipment/vehicles. He noted the same claim was made for the garages at the new
city hall but he does not believe the timeline has been extended for vehicle
replacements. He noted the city should be grateful to the federal government for
the Coronavirus Relief Funding that has been distributed to local governments and
will assist with expenses.
RESOLUTION 2021‐67
Item 8.3
Council Member Elder introduced the following resolution and moved its
adoption: “RESOLUTION AWARDING CONTRACT TO ROCHON
CORPORATION FOR CONSTRUCTION OF PHASE 1 IMPROVEMENTS AT
THE PUBLIC WORKS FACILITY (IMPROVEMENT PROJECT NO. 1039).” The
motion for the adoption of the foregoing resolution was seconded by Council
Member Hoffe, and upon vote being taken thereon, the following voted in favor
thereof: Hemken, Elder, Hoffe, Isenberg, London; and the following voted against
the same: None; Abstained: None; Absent: None; whereupon the resolution was
declared duly passed and adopted, signed by the mayor which was attested to by
the city clerk.
EXCHANGE OF
COMMUNICATION
Item 12.1
Mayor Hemken introduced for discussion Item 12.1, Exchange of communication
between members of the City Council.
Mayor Hemken reported on upcoming events.
ADJOURNMENT
Motion was made by Council Member Isenberg, seconded by Council Member
Elder, to adjourn the meeting, as there was no further business to come before
the Council. All present voted in favor. Motion carried. The New Hope City
Council adjourned at 8:22 p.m.
New Hope City Council May 24, 2021
Page 6
Respectfully submitted,
Valerie Leone, City Clerk