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01 11 21 City Council MinutesNew Hope City Council January 11, 2021 Page 1 City of New Hope 4401 Xylon Avenue North New Hope, Minnesota 55428 City Council Minutes January 11, 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. Due to the COVID-19 pandemic, some members of the Council, city staff, and consultants participated remotely. PLEDGE OF ALLEGIANCE The Pledge was not recited since the meeting was not held in the council chambers. ROLL CALL Council present: Staff present: Kathi Hemken, Mayor John Elder, Council Member 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 Vicki Holthaus, AEM Valerie Leone, City Clerk Susan Rader, Director of Parks & Recreation 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 Elder, seconded by Council Member London, to approve the regular meeting minutes of December 14, 2020. Voted in favor thereof: Hemken, Elder, Hoffe, Isenberg, London; and the following voted against the same: None; Abstained: None; Absent: None. Motion carried. Motion was made by Council Member Hoffe, seconded by Council Member Elder, to approve the work session meeting minutes of December 21, 2020. Voted in favor thereof: Hemken, Elder, Hoffe, Isenberg, London; and the following voted against the same: None; Abstained: None; Absent: None. 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. New Hope City Council January 11, 2021 Page 2 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. BUSINESS LICENSES Item 6.1 Approval of business licenses FINANCIAL CLAIMS Item 6.2 Approval of financial claims through January 11, 2021. RESOLUTION 2021-01 Item 6.4 Resolution appointing city attorney. RESOLUTION 2021-02 Item 6.5 Resolution appointing Dan Boyum of Stantec Consulting Services Inc. as city engineer for sewer, water, street, and storm sewer projects and general work. RESOLUTION 2021-03 Item 6.6 Resolution appointing New Hope – Golden Valley Sun Post as official newspaper for city of New Hope. RESOLUTION 2021-04 Item 6.7 Resolution designating Wells Fargo as depository for payroll account and general or special funds of the city of New Hope. RESOLUTION 2021-05 Item 6.8 Resolution designating depositories for funds of the city of New Hope relative to investments. RESOLUTION 2021-06 Item 6.9 Resolution appointing city manager as director to the HRG Board for a term expiring December 31, 2021. WEED INSPECTOR Item 6.10 Appointment of assistant weed inspector for 2021. RESOLUTION 2021-07 Item 6.11 Resolution appointing Tim Hoyt as Alternate Director to the Local Government Information Systems (LOGIS) Board of Directors. RESOLUTION 2021-08 Item 6.12 Resolution appointing Tim Hoyt as Alternate Director to the Pets Under Police Security (PUPS) Board of Directors. RESOLUTION 2021-09 Item 6.13 Resolution ordering published notice and scheduling public hearing to approve the projected use of funds for the 2021 Urban Hennepin County Community Development Block Grant Program. RESOLUTION 2021-10 Item 6.14 Resolution approving final pay request to Dunaway Construction for playground site work at Begin Park (Improvement Project No. 1040) and for the basketball court replacement at Northwood Park (Improvement Project No. 1046). 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 January 11, 2021 Page 3 IMPROVEMENT PROJECT NO. 1055 Item 8.1 Mayor Hemken introduced for discussion Item 8.1, Motion to authorize preparation of plans and specifications for playground improvements at Corner Park (Improvement Project No. 1055). Mr. Dan Boyum, city engineer, stated Corner Park is located at 4653 47th Avenue North, and the equipment was last replaced in 1997. He illustrated the existing playground equipment. He reported the proposed improvements include playground equipment, play area container, a new bench, and a new park sign. He explained the neighborhood will be involved similar to other past park projects, and following the neighborhood committee meetings, the preferred design will be brought forward for Council approval. Mr. Boyum stated the cost estimate is $185,000 and the project will be funded by the park infrastructure fund. Mr. Boyum reviewed the project schedule with construction to occur this spring. MOTION Item 8.1 Motion was made by Council Member Isenberg, seconded by Council Member Hoffe, to authorize preparation of plans and specifications for playground improvements at Corner Park (Improvement Project No. 1055). All present voted in favor. Motion carried. IMPROVEMENT PROJECT NO. 1054 Item 8.2 Mayor Hemken introduced for discussion Item 8.2, Resolution approving plans and specifications and authorizing bids for the 2021 Infrastructure Project (Improvement Project No. 1054). Mr. Dan Boyum, city engineer, reviewed the project components for street and utility improvements. He stated the project area is in the Lions Park neighborhood and Erickson Drive. Two alternates are included for storm sewer line on Oregon Avenue, and trail work for Liberty Park is included as alternate 3. He stated the estimated project cost is $1,680,300 (base bid) and could increase if one of the two alternates for storm sewer line on Oregon Avenue is awarded and/or if the alternate for Liberty Park trail work is awarded. The majority of the project will be funded by the city’s street infrastructure and utility funds. If alternate number 3 for trail work is awarded, that portion would be funded by the Park Infrastructure Fund. There are two tax-exempt properties (Lions Park and The Salvation Army) that will also contribute as a funding source through special assessments. He stated if Council approves the plans and specifications and authorizes advertisement for bids, the bids will be presented to Council at the February 22 Council Meeting. Mr. Boyum reviewed comments made by residents regarding the proposed project including private driveway replacement, coordination of CenterPoint Energy’s work, and scope of improvements. Discussion ensued regarding trail pavement. Mr. Boyum stated it is cost effective to bid trail work in parks as an alternate to infrastructure projects. Council Member Isenberg acknowledged the efficiencies and inquired of the actual savings realized by bidding the work as an alternate. Mr. Boyum stated bidding the trail work independent of a major infrastructure project could result in double the cost. RESOLUTION 2021-11 Item 8.2 Council Member London introduced the following resolution and moved its adoption: “RESOLUTION APPROVING PLANS AND SPECIFICATIONS New Hope City Council January 11, 2021 Page 4 AND AUTHORIZING BIDS FOR THE 2021 INFRASTRUCTURE PROJECT (IMPROVEMENT PROJECT NO. 1054).” 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. ICE ARENA ROOF IMPROVEMENT BIDS (PROJECT NO. 1058) Item 8.3 Mayor Hemken introduced for discussion Item 8.3, Resolution approving plans and specifications and authorizing advertisement of bids for roof improvements at the New Hope Ice Arena (Improvement Project No. 1058). Mr. Dan Boyum, city engineer, indicated Bruce Paulson, architect with Stantec, is attending the meeting in a virtual capacity for any questions from Council. Mr. Boyum stated staff is recommending approval of plans and specifications and authorization of advertisement for bids for improvements to the south roof at the New Hope Ice Arena located at 4949 Louisiana Avenue North. The roof has reached the end of its useful life and is in need of replacement. The project will also include repair of the exterior insulation finish systems walls along the south end, north end, and over the front entrance; replacement of the roofing system on the main entrance; and several alternates (for different roof types, installation of a skylight system, and warranty periods). The estimated project cost is $750,000 and it is recommended that Temporary Financing Funds be utilized for the project and be repaid over a 15-year period. He stated if Council approves the plans and specifications and advertisement of bids, the bids would be presented to Council on February 22, 2021, for consideration of awarding the contract. Council Member London inquired of the cost of the skylight replacement. Mr. Bruce Paulson responded that a quarter barrel vault type is estimated to cost $140,000. RESOLUTION 2021-12 Item 8.3 Council Member Elder introduced the following resolution and moved its adoption: “RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND AUTHORIZING ADVERTISEMENT OF BIDS FOR ROOF IMPROVEMENTS AT THE NEW HOPE ICE ARENA (IMPROVEMENT PROJECT NO. 1058).” The motion for the adoption of the foregoing resolution was seconded by Council Member Isenberg, 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. MAYOR PRO TEM Item 10.1 Mayor Hemken introduced for discussion Item 10.1, Resolution appointing a council member as mayor pro tem for 2021. It was noted the mayor pro tem position is rotated based on seniority. Council unanimously supported the nomination of Council Member Jonathan London as mayor pro tem for 2021. New Hope City Council January 11, 2021 Page 5 RESOLUTION 2021-13 Item 10.1 Mayor Hemken introduced the following resolution and moved its adoption: “RESOLUTION APPOINTING A COUNCIL MEMBER AS MAYOR PRO TEM FOR 2021.” 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; and the following voted against the same: None; Abstained: London; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the mayor which was attested to by the city clerk. GENERAL TAX ABATEMENT BONDS, SERIES 2021A Item 10.2 Mayor Hemken introduced for discussion Item 10.2, Resolution providing for the sale of $2,095,000 General Obligation Tax Abatement Bonds, Series 2021A. Mr. Kirk McDonald, city manager, explained that staff has been coordinating with Ehlers and AEM on the potential refinancing of the ice arena energy conservation bonds that were issued in 2011. He stated Vicki Holthaus of AEM and Jason Aarsvold of Ehlers are both available for questions. Mr. McDonald stated Ehlers advised the city that it could save a significant amount in interest by refinancing the 2011 bonds at a lower interest rate. The EDA issued $3,505,000 in Taxable Lease Revenue Bonds/Qualified Energy Conservation Bonds in 2011 to fund improvements for the refrigeration system, lighting, building envelope and water conservation improvements at the arena and other city facilities. The bonds were issued at 5% as “taxable” since there was an annual rebate from the federal government which made them more cost-effective than “tax-exempt” bonds. The EDA has been meeting the financial obligations. The bonds are now callable and the city’s financial consultants recommend restructuring the bonds. He stated the presale report outlined the financial details of the refunding. Mr. Jason Aarsvold, Ehlers, stated he recommends refinancing the bonds with tax exempt, general obligation tax abatement bonds which will result in a savings of approximately $14,000 per year over the remaining life of the bond issue (year 2028). He recommended the Council approve the resolution to set public hearings on February 8 and February 22 (sale/award of the bonds). Council Member London asked to see the cash flow analysis. He suggested postponing action on the item. Mr. McDonald indicated postponing the item would change the schedule for the public hearing and rating call. Mr. Aarsvold noted the earlier the action the more the city will save in interest costs. Mr. Aarsvold stated the interest earned is built into the projected savings analysis shown on the report. He indicated Ehlers has additional documentation if Council would like to review it. Mr. McDonald asked Mr. Aasvold to provide the cash flow data to him so he could forward to Council. Ms. Vicki Holthaus, AEM, indicated AEM staff has reviewed the bond documents and supports the financing. MOTION 10.2 Motion was made by Council Member London to postpone action on Item 10.2 to a later date. The motion failed for lack of a second. RESOLUTION 2021-14 Item 10.2 Council Member Elder introduced the following resolution and moved its adoption: “RESOLUTION PROVIDING FOR THE SALE OF $2,095,000 New Hope City Council January 11, 2021 Page 6 GENERAL OBLIGATION TAX ABATEMENT BONDS, SERIES 2021A.” The motion for the adoption of the foregoing resolution was seconded by Council Member Isenberg, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Isenberg; and the following voted against the same: London; 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. 2021 CITY MANAGER GOALS Item 11.1 Mayor Hemken introduced for discussion Item 11.1, Motion approving city manager goals for 2021. Mr. Kirk McDonald, city manager, stated his employment agreement calls for defining goals annually in January. Mr. McDonald stated he presented the initial list of goals at the December 21 work session, and a minor modification was made after Council feedback. MOTION Item 11.1 Motion was made by Council Member Isenberg, seconded by Council Member Hoffe, approving city manager goals for 2021. All present voted in favor. Motion carried. CITY MANAGER EMPLOYMENT AGREEMENT Item 11.2 Mayor Hemken introduced for discussion Item 11.2, Resolution approving eleventh amendment to city manager employment agreement. Mr. Kirk McDonald stated the Council reviewed his performance at the December 21 work session and the city attorney has prepared the amendment to the employment agreement per Council’s direction. Council expressed their appreciation for Mr. McDonald’s job performance. RESOLUTION 2021-15 Item 11.2 Council Member Elder introduced the following resolution and moved its adoption: “RESOLUTION APPROVING ELEVENTH AMENDMENT TO CITY MANAGER EMPLOYMENT AGREEMENT.” 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 8:07 p.m. Respectfully submitted, New Hope City Council January 11, 2021 Page 7 Valerie Leone, City Clerk