10 17 22 Work Session MinutesCity Council Work Session October 17, 2022
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City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes
Work Session Meeting
October 17, 2022
Northwood Conference Room
CALL TO ORDER The New Hope City Council met in work session pursuant to due call and notice thereof;
Mayor Hemken called the meeting to order at 6:30 p.m.
ROLL CALL Council present:
Kathi Hemken, Mayor
John Elder, Council Member
Andy Hoffe, Council Member
Michael Isenberg, Council Member
Jonathan London, Council Member
Staff present:
Tim Hoyt, Acting City Manager
Jeff Alger, Community Development Specialist
Dan Boyum, City Engineer
Erin Enstad, Abdo
Vicki Holthaus, Abdo
Rich Johnson, Director of HR/Admin. Services
Valerie Leone, City Clerk
Walker MacBeath, HR Coordinator
Susan Rader, Director of Parks & Recreation
Jeff Sargent, Director of Community Development
Mark Severson, Recreation Facilities Manager
Bernie Weber, Director of Public Works
Stacy Woods, City Attorney
HRG PROGRAMS
AND RATES
Item 11.1
Mayor Hemken introduced for discussion item 11.1, Discussion regarding HRG
programs and recommended 2023 rates.
Mr. Tim Pratt, HRG Recycling Manager, reviewed the recycling program components
(curbside recycling, education, bulky waste curbside collection, organics drop‐off,
special material drop‐off, yard waste site, and event recycling). He noted he will be
participating in New Hope’s city day event on October 27. He also reviewed the
participation levels in the curbside cleanup. He stated organics is the single largest
category in trash that could be recycled/composted. He explained the HRG subsidizes
rain barrels and compost bins ($20 discount for HRG residents). Through a grant an
organics drop off facility was built at Crystal Cove (Crystal Community Center parking
lot). There are 218 current users. Mr. Pratt stated the spring and fall special materials
drop‐off event continues to be popular. The yard waste contract at Maple Groves is
effective through 2023. Central Park in Brooklyn Park is the pumpkin drop‐off site as
well as the Maple Grove Yard Waste site. Event recycling containers are available for
loan.
Mr. Pratt stated the current monthly recycling fee is $4.00, and the board recommended
a $1.00 increase to offset the anticipated increased recycling contract. He stated the
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SCORE funding will no longer increase; it will remain flat. He explained the HRG is
considering purchasing recycling carts and another fee increase could be considered
in 2024 to help cover the expense.
Council Member London inquired whether the bulky waste curbside collection
program could occur in the summer when it would be more convenient to residents.
Mr. Pratt responded that the event occurs in the spring as haulers cannot participate in
the summer and fall as they are busy with yard waste collection. He indicated the next
curbside collection for New Hope will occur in 2024.
Mayor Hemken thanked Mr. Pratt for the update.
CANADIAN PACIFIC
RAIL REGIONAL
TRAIL UPDATE
Item 11.2
Mayor Hemken introduced for discussion item 11.2, Update on Canadian Pacific Rail
Regional Trail with Three Rivers Park District Staff.
Ms. Susan Rader, director of parks and recreation, introduced Danny McGowan of
Three Rivers Park District to review the community engagement process and gather
Council’s informal support on a future route.
Mr. McGowan discussed the public engagement process that transpired in the
summer.
The Canadian Pacific Rail Regional Trail (CP Rail Regional trail) is a planned 21‐mile
regional trail corridor that will extend from Becker Park in Crystal south to the
Minnesota River, connecting six communities – New Hope, Crystal, Golden Valley, St.
Louis Park, Edina and Bloomington. The proposed trail alignment will also connect to
three regional trail search corridors and six regional trails, including the Bassett Creek
Regional Trail which runs east‐west through New Hope mostly along 36th Avenue and
through Northwood Park.
He reported the majority of the community preferred the Winnetka‐Douglas route as
it has community connections and offers a quieter, more family friendly route.
Council Member London inquired of the $3M cost difference between the Winnetka‐
Douglas route and the Douglas Avenue route. Mr. McGowan stated the cost difference
is for the cost of curb work, driveway impacts, and drainage. He stated the Winnetka‐
Douglas route utilizes the existing Bassett Creek trail which is a cost‐savings.
Discussion ensued regarding the number of trail users and cost per user.
Council thanked Mr. McGowan for the update and provided verbal support for the
Winnetka‐Douglas route.
2023 ENTERPRISE
AND UTILITY FUND
BUDGETS AND
UTILITY RATES
Item 11.3
Mayor Hemken introduced for discussion item 11.3, Discussion regarding 2023
enterprise and utility fund budgets and 2023 utility rates.
Mr. Bernie Weber, public works director, and Ms. Vicki Holthaus of Abdo, reviewed
the utility budgets. Mr. Weber highlighted expenditures planned for each fund during
the 2023 budget cycle.
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Ms. Holthaus recommended the following rate increases: 4% water, 4% storm water
drainage, 4% sewer, and 5% street lighting. Ms. Holthaus explained the memorandum
regarding cash balances. She stated the increases are needed to support the city’s ten‐
year plan, utility replacement and aging infrastructure. She also stated the city must
keep pace with sewer charges from the Met Council and water purchase from the city
of Minneapolis.
Ms. Holthaus stated the long term plan update will be presented in November.
Ms. Susan Rader, director of parks and recreation, and Mark Severson, recreation
facilities manager, reported on revenue and expenditures for 2023 for the golf course
and ice arena. Ms. Rader stated staff recommends minimal increases for golf course
greens fees and a $5/hour increase in the prime and non‐prime ice rental rates effective
fall of 2023. She stated an increase in the golf course budget is for reinstatement of the
golf course superintendent position and succession planning. Staff shared the capital
improvement plans for the city’s recreation facilities.
Council thanked staff for the budget review.
VEHICLE
PURCHASES
Item 11.4
Mayor Hemken introduced for discussion item 11.4, Discuss upcoming vehicle
purchases utilizing the Minnesota Department of Administration’s Cooperative
Purchasing Venture.
Mr. Bernie Weber, director of public works, explained that there are two vehicles
scheduled for replacement in 2022. Due to supply chain issues, the Mn Department of
Administration altered the purchasing window from six months down to three days.
He stated funds are in the CIP. He requested Council’s authorization to allow staff to
purchase the cab and chassis and then ratify at council meeting at later date.
Council expressed support.
MINNESOTA
INVESTMENT FUND
PROGRAM
Item 11.5
Mayor Hemken introduced for discussion item 11.5, Discuss request for city to serve
as legal sponsor for Minnesota Investment Fund program loan through Minnesota
Department of Employment and Economic Development (DEED).
Mr. Jeff Alger, community development specialist, explained that city staff, DEED, and
Greater MSP has been meeting to develop a proposal that would assist Padagis with
financing an expansion. The company owns and operates a manufacturing site in New
Hope at 3940 Quebec Avenue North. They are evaluating location options for
expanding production capacity to meet growing market demand for their
pharmaceutical products. A loan through Minnesota Investment Fund (MIF) would
provide $5M of investment in new machinery and would create 60 new jobs and
increase long‐term viability of the New Hope plant. The MIF financing would be 0%
interest. DEED provides funds to the city instead of directly to the company. The city
would serve as a pass‐through agency. There are costs for the city including
establishing a revolving loan fund policy, utilizing the city’s legal and financial
consultants to review the financial records. There is minimal risk for the city.
Mr. Jeff Sargent, director of community development, explained the business is not
increasing its footprint but would add new machinery for long‐term viability of the
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business. He stated a public hearing would be held regarding the request and staff
would develop a revolving loan fund policy.
Council supported staff’s recommendation.
FRANCHISE
ORDINANCES AND
CENTERPOINT
RENEWAL
Item 11.6
Mayor Hemken introduced for discussion item 11.6, Review Gas and Electric Franchise
ordinances and discuss renewal of CenterPoint Contract.
Mr. Jeff Alger, community development specialist, stated state statute allows cities to
charge utility companies for operating in the right‐of‐way. Costs are passed to
customers through franchise fees. He stated the franchise fees were implemented in
New Hope in 2002, and last year the city collected $962,395 in franchise fees. He stated
city code requires review of the ordinance every two years. The city’s agreement with
CenterPoint expires in 2023, and staff recommends renewing the agreement for
another five‐year term.
Mr. Alger illustrated a comparison of fees with other cities. He stated if New Hope
increased the franchise fees to “average”, it would generate an additional $300,000
annually.
Mayor Hemken recommended the residential rate of the franchise fee be a maximum
of $4.00.
Council Member London inquired whether the public works department has estimates
of the city’s costs for utilities in the city’s right‐of‐way. Mr. Bernie Weber, director of
public works, stated the city does track the data.
Council Member London opposed franchise fee increases.
Council Member Isenberg stated the increase would be $24/year per residence based
on the proposed $1.00/month increase for electric and gas franchise fees. It was noted
that higher rates apply for commercial properties.
Staff was directed to proceed with implementing franchise fee increases.
CIVIC CENTER
PARK/CITY HALL
LANDSCAPING
PROJECTS UPDATE
(IMPROVEMENT
PROJECT. NOS
941/994)
Item 11.7
Mayor Hemken introduced for discussion item 11.7, Update on Civic Center Park/City
Hall Landscaping projects by Stantec Engineering (Improvement Project Nos. 941/994).
Ms. Susan Rader, director of parks and recreation, provided an update on the Civic
Center Park/city hall landscaping projects. She explained the final contract that
remains open is held with Sunram Construction, Inc. She noted the contractor has
completed the outstanding punchlist items and the remaining retainage is $145,000.
Ms. Rader stated staff is recommending not charging Sunram any liquidated damages
but to deduct $28,000 to cover additional engineering costs caused by Sunram’s delays.
She explained that pursuing liquidated damages would incur legal costs.
Ms. Stacy Woods, city attorney, explained the lowest responsible bidder criteria that
the city must follow for contracts. She explained that contracts under $175,000 do not
require sealed bids and staff can solicit quotes from reputable contractors.
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Council supported staff’s recommendation.
Ms. Rader stated a resolution to close the project and issue final payment to Sunram
will be placed on a future council meeting agenda.
CHANGE ORDER
(IMPROVEMENT
PROJECT NO. 1039)
Item 11.8
Mayor Hemken introduced for discussion item 11.8, Discuss change orders related to
Phase 1 Improvements at the Public Works Facility (Improvement Project No. 1039).
Mr. Bernie Weber, director of public works, explained the need for a $18,654 change
order for the public works project. He reviewed the cost for adding LED lighting at the
gate areas to improve security, adding RFID long range readers for the gates, and the
price increase for wear course paving in 2022 and patching work.
Mr. Dan Boyum, city engineer, stated the contractor originally quoted $29,809, and
staff negotiated the change order to $18,654.
Council supported the change order and directed staff to place the item on the council
meeting agenda of October 24, 2022, for approval.
DIVERSE,
EQUITABLE, AND
INCLUSIVE
ENVIRONMENT
STATEMENT
Item 11.9
Mayor Hemken introduced for discussion item 11.9, Discussion regarding the creation
of a statement to publicly share the city’s commitment to a diverse, equitable, and
inclusive environment.
Mr. Rich Johnson, director of HR/administrative services, explained that staff has
worked internally and has met with the New Hope Human Rights Commission on two
occasions to share information as well as gather their input regarding the city’s
dedication to D, E, & I.
Mr. Johnson stated staff desires to have a statement that the city has a commitment to
embracing a diverse, equitable, and inclusive environment.
It was agreed that the city does not need to hire a person to promote D, E, & I, as it is
the responsibility of the city manager, directors, and Council.
Council discussed the importance of a D, E, & I statement and directed staff to prepare
a statement by year‐end.
FENCING
CONSORTIUM JOINT
POWERS
AGREEMENT
Item 11.10
Mayor Hemken introduced for discussion item 11.10, Discussion regarding Fencing
Consortium Joint Powers Agreement.
Mr. Tim Hoyt, acting city manager, discussed the increased security measures taken
over the past couple of years based on civil unrest in surrounding cities. He
recommended joining a fencing consortium to reduce costs on obtaining unscalable
fencing that could be erected within hours. He stated if needed the city would have the
support of public works staff from multiple cities to erect the fencing within hours.
The fencing would allow separation between protesters and police officers. The
fencing consortium reduces the need for crowd control measures to be used, creates a
space for protesting, and reduces resource demands committed to one location.
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Mr. Hoyt stated the fence would encompass the fire station and city hall, and the
approximate cost for access to the fencing is $7,000 per year. He stated there are nearly
30 cities in the consortium at this time. He noted the city of Brooklyn Center paid
$12,000 per month for fencing during the recent civil unrest.
Council supported joining the consortium and spoke of the need for emergency
management preparedness and protection of resources.
ADJOURNMENT The meeting was adjourned at 9:11 p.m. as there was no further business to come
before the Council at its work session.
Respectfully submitted,
Valerie Leone, City Clerk