05 18 20 Work Session MinutesCity Council Work Session May 18, 2020
Page 1
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes
Work Session Meeting
May 18, 2020
City Hall, Virtual WebEx
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
Cedrick Frazier, Council Member
Andy Hoffe, Council Member
Jonathan London, Council Member
Staff present:
Kirk McDonald, City Manager
Brandon Bell, Community Development Assistant
Dan Boyum, City Engineer
Tim Fournier, Director of Police
Vicki Holthaus, AEM
Beth Kramer, Communications Coordinator
Sarah Larson, Fire Chief
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, Assistant City Attorney
WMFRD UPDATE
Item 11.1
Mayor Hemken introduced for discussion item 11.1, Update from West Metro Fire-
Rescue District.
Ms. Sarah Larson, Chief of West Metro Fire-Rescue District, reviewed the department’s
duty crew staffing that has been implemented due to the pandemic. She also reviewed
the preliminary 2021 fire budget. She stated the total 2021 budget is $2,674,050 which
is a $99,800 increase from last year. The general operating budget increase is $89,800 or
4.42%, based on increases in salaries, PERA, workers comp insurance, motor fuels,
equipment repairs, communications and financial services. There is a $20,000 increase
to the capital plan to offset a future deficit and there is a $10,000 decrease to the special
revenue insurance fund. She stated New Hope’s share of the toal budget is $1,352,363
or 50.5736%.
It was noted the fire board has rescheduled the May 13 work session to June 10 to
discuss the budget. Both city councils must act on the budget by August 31.
Council thanked Chief Larson for the budget presentation.
2020 MORRIS
LEATHERMAN
Mayor Hemken introduced for discussion item 11.2, Discuss professional community
wide survey in 2020 with Morris Leatherman Company.
City Council Work Session May 18, 2020
Page 2
COMMUNITY WIDE
SURVEY
Item 11.2
Mr. Brandon Bell, community development assistant, explained at the February 2020
work session staff discussed a potential professional survey being conducted by Morris
Leatherman. He stated subsequent to the work session Peter Leatherman submitted a
preliminary survey for review. He stated due to the pandemic and closure of some
programs and facilities it may be best to postpone the professional survey until next
year. As an alternative, he recommended utilizing a performance measurements
survey to be mailed with the July utility bills.
Council expressed support for postponing the professional survey until 2021 and
directed staff to prepare a community performance measurements survey for review
at a future work session.
TOBACCO
REGULATIONS
Item 11.3
Mayor Hemken introduced for discussion item 11.3, Discuss Potential Changes to
Tobacco Regulations.
Mr. Brandon Bell, community development assistant, stated the citizen advisory
commission reviewed tobacco use prevention options with New Hope business
owners and residents on February 11, 2020, and Council reviewed the commission’s
recommendations at the work session of February 18, 2020. He stated staff was
directed to prepare a proposed ordinance and Mitchell Hamline Public Health Law
Center and the city attorney coordinated drafting the ordinance amendment. Mr. Bell
outlined the changes contained in the proposed tobacco ordinance amendment:
1. Many definitions have either been revised or added to provide or more modern
verbiage.
2. Mirrored the newest federal regulations including raising the legal age required to
purchase tobacco products, from 18 years of age to 21 years old. Also includes the
ban on all flavored cartridge-based e-cigarettes (except for tobacco flavored).
3. Raised the age of those legally allowed to sell tobacco products as a clerk at a
licensed retailer to 18.
4. Banned the sales of all flavored tobacco products except for mint, menthol and
wintergreen.
5. Possession, use, and purchase laws have been removed that would punish people
under the age of 21 who attempted to buy tobacco.
6. Put a cap on the number of tobacco licenses in the city to equal the total amount of
licenses held at the beginning of 2021. The current amount is 21, but with a ban on-
site pharmacy licenses, the number will be reduced to 19 in 2021.
7. Prohibit the sales of tobacco in any facility that contains an on-site pharmacy.
Current license holders will keep these licenses until the end of the year, but will
not be eligible for renewal.
8. Change the age of those allowed to conduct compliance checks from 15-17 to 17-
20 to align with new state policies.
9. Increase the fine for first time violations for tobacco license holders from $250 to
$300. This reflects changes to new state regulations.
Mr. Bell asked for Council input on items 6 and 7. He stated staff finds all of these
proposed changes to be reasonable and to align with many of the changes that other
cities in the area have made to their tobacco ordinances. Many of the businesses that
City Council Work Session May 18, 2020
Page 3
staff has been in contact with, and that attended the CAC meeting in February, also
seemed to find these changes acceptable.
Mayor Hemken recalled the discussion at the February work session and expressed
support for not banning the sale of mint, menthol or wintergreen-flavored tobacco
products.
Council inquired about feedback from businesses.
Mr. Brandon Bell stated four businesses attended the Citizen Advisory Meeting in
February and two businesses contacted him about the work session.
Council Member Frazier inquired if there was any feedback from pharmacies. Mr. Bell
stated he did not hear from Walgreen’s or Hy-Vee. Council Member Frazier stated he
supports banning menthol and wintergreen flavored tobacco as well.
Mr. McDonald indicated all 21 tobacco license holders were notified of the work
session.
Discussion ensued regarding compliance checks and utilizing persons who are 17-20
years old. Chief Fournier noted the older age may be helpful as the same person(s) can
assist with tobacco and liquor compliance checks. He stated the checks ensure the
retailers are checking identifications and not selling to minors. Chief Fournier also said
the check ensures the business is selling licensed products only.
Council Member London did not support banning tobacco in retailers that have
pharmacies. He cited the Hy-Vee situation where tobacco would be banned in the
grocery store (due to the pharmacy) but allowed next door in the liquor store and also
at the Hy-Vee gas/convenience store on the same property. He expressed a preference
to follow state or federal law.
Mr. McDonald stated the ordinance will be placed on the May 26 agenda for
consideration.
Mayor Hemken extended the city’s appreciation to Hennepin County Public Health
and Mitchell Hamline Public Health Law Center, residents, businesses, and members
of the citizen advisory commission for their input.
2020 WINNETKA
WATERMAIN
REPLACEMENT
(IMPROVEMENT
PROJECT NO. 1027)
Item 11.4
Mayor Hemken introduced for discussion item 11.4, Discuss Change Order No. 1 for
G.F. Jedlicki Inc. Contract for 2020 Winnetka Watermain Replacement Project
(Improvement Project No. 1027).
Mr. Dan Boyum, city engineer, stated the 2020 Winnetka Watermain replacement
project was awarded to G.F. Jedlicki Inc. on February 10, 2020. He stated additional
costs of approximately $15,600 were incurred for costs associated with COVID-19 and
county permitting. The additional costs included furnishing and installing a temporary
bituminous patch over portions of the center island that was removed, removal of the
island, signal and electrical work, and plumber assistance for home and business
connections. CenterPoint Energy may be reimbursing the city for permits and extra
City Council Work Session May 18, 2020
Page 4
labor and material costs associated with the contractor removing the concrete center
island as it was necessary for the future CenterPoint gas main replacement work.
Mr. Boyum also reviewed the status of quantities on the project that differed from the
original bid documents and will be addressed at the time of project close out.
He recommended approval of change order no. 1 and stated the water fund will pay
for the extra costs.
Mr. McDonald pointed out the city must pay the contractor $15,600 but will receive a
partial reimbursement from CenterPoint.
POOL/CIVIC CENTER
PARK/CITY HALL
LANDSCAPING
PROJECTS UPDATE
(IMPROVEMENT
PROJECT NOS.
995/941/995)
Item 11.5
Mayor Hemken introduced for discussion item 11.5, Update on Pool/Civic Center
Park/City Hall Landscaping projects by Stantec Engineering (Improvement Project
Nos. 995/941/994).
Mr. Dan Boyum, city engineer, and Ms. Susan Rader, director of parks and recreation,
provided a project update.
Mr. Boyum explained that Sunram, the contractor for the green contract, has installed
curb and gutter and sidewalk around the pool parking lot and the monument sign
since the last update. Paving of the pool parking lot was scheduled to take place the
week of May 11 and paving of the trails is planned for May 20, weather permitting.
Sunram’s electrical subcontractor continues to work on light poles, bollards, and
wiring throughout the park areas. They plan to finish topsoil placement and then start
blow mulch, plantings around City Hall and the park areas, various amenities, and
final irrigation work the week of May 18. Once the pool contractor backfills the vortex
pool on or around May 20, Sunram will start on final storm sewer, sidewalk, and
restoration between the City Hall parking lot and the pool.
At the 50-meter pool, and after passing the leak test, the pool contractor is working on
grout and tile work. In the bathhouse, a punchlist walkthrough was done on May 11,
so remaining work will be focused on what is identified on the punchlist. The
mechanical building is also close to being completed, and they are fine-tuning controls
prior to start-up of equipment. Paving of the parking lot by the mechanical building
should be completed by May 18. The vortex pool floor w ill be poured soon. Fencing
foundations and posts have been worked on over the last month. All slides and most
features have been installed at the recreational pool. The pool contractor is continuing
work on other concrete placement and additional exterior site improvements.
On the performance center and picnic shelter project, the contractor has finished
stonework and is preparing final areas for sidewalk placement. Topsoil was spread the
week of May 11, and seeding, sodding, and irrigation work will be started the week of
May 18. Lighting and other miscellaneous items are expected to be completed the week
of May 25.
Council Member London shared concerns relayed to him by residents regarding
pooling of storm water near the trail.
City Council Work Session May 18, 2020
Page 5
Mr. Boyum stated the contractor and staff are aware that fill is needed north of the
cemetery for proper drainage. He stated Sunram will handle it soon.
Mayor Hemken inquired of the exposed wiring on the back side of the monument sign.
Mr. Boyum stated the contractor has ordered the proper back plat es that will be
installed on the sign.
Mr. Boyum reviewed the pool-related change orders that will be presented for
approval at the May 26 Council Meeting including power to condensers, stanchions
and rope additions, ice and snow guard (credit), fire sprinkler system (credit),
performance shelter/picnic shelter irrigation and time extension (no cost). Ms. Rader
stated the changes including the credits result in a cost of $1,685 for the change order
with Donlar Construction.
Discussion ensued regarding irrigation systems and required maintenance. Ms. Rader
noted park staff is familiar with maintaining irrigation systems. Council Member
London recommended the irrigation system have sensors for water conservation
purposes (will not activate if it is raining). Mr. Boyum stated he will confirm that the
new equipment includes sensors.
Council directed staff to place the two change orders on the May 26 Council Meeting
for approval.
Ms. Rader stated there have been extra costs for engineering construction management
services. City Engineer Boyum reviewed the letter dated April 27, 2020, outlining the
construction management services and material testing fees for the pool, theatre, and
park. He addressed the additional engineering costs that are associated with the
projects including additional costs due to project delays, restaking for the green
contractor, coordination and staking for Xcel, deck pour analysis, winter construction
analysis, delay claim, and CenterPoint permit items. He noted the coordination of the
multiple projects was critical. Mr. Boyum stated the costs of the additional construction
management services is $214,774.03. He pointed out the city will be reimbursed by
Donlar (AET testing and deck repair), by Sunram (restaking), and Shingle Creek
Watershed (for 50% of underground chamber) for a total credit of approximately
$46,000. Council was supportive of adding Addendum #3 to the May 26 Council
Meeting.
Discussion ensued regarding work that is not included on original plans. Mr. Boyum
stated a budget contingency is established for these situations and contractors request
change orders to cover the expenses. City Attorney Woods stated adjustments to
contracts are permissible. Ms. Rader stated Stantec prepared very detailed plans and
relatively few items were overlooked. She indicated the work would have been paid
for in the original plans or as a change order.
Mr. Kirk McDonald, city manager, noted the project is $19 million and the majority of
the $260,000 budget overage is due to poor soils and the amount of rainfall.
Ms. Rader then reviewed the overall cost summary of the projects. Staff currently
estimates a shortfall of approximately $260,670.37, with the recommendation of Vicki
City Council Work Session May 18, 2020
Page 6
Holthaus of AEM to authorize a one-time transfer from the Temporary Financing Fund
at the conclusion of the project.
Discussion was held regarding the 2020 pool season. Due to COVID-19, there is
currently no clear direction on when or if pools will be able to open. If they are allowed
to open, state guidelines will be in place regarding lower capacity limits, social
distancing and operation procedures. Other considerations include staffing, budget
and safety of pool users. Only 23 applications have been received to date and the Red
Cross certification courses for new lifeguards have been cancelled, so seasonal staff is
unable to be trained and certified. Two options were discussed: delay the opening until
July 6 or delay the opening until 2021. After further discussion, the Council elected to
wait until 2021 to open the facility.
Council thanked staff for the update.
2019 AUDIT AND
CAFR
Item 11.6
Mayor Hemken introduced for discussion item 11.6, Review 2019 Audit and
Comprehensive Financial Report with AEM.
Mr. Kirk McDonald, city manager, reported the total general fund expenditures were
under budget by $240,364 primarily in public safety and parks and recreation. He
noted the total general fund revenues were over budget by $72,388 due to investment
earnings, intergovernmental revenue and franchise fees for an overall positive fund
balance of $312,752 prior to the approved transfers. He commended all department
heads and employees for holding down expenses.
Mr. McDonald noted per accounting standards the two transfers made fro m the 2018
fund balance during the 2019 budget year ($150,000 for the fire capital projects fund
and $204,000 for the city hall CIP fund) must be deducted from the fund balance of the
2019 budget which results in -$41,248.
Mr. McDonald stated the auditor’s report did not identify any deficiencies in internal
controls that they consider to be material weaknesses, they reported no findings, and
they encountered no significant difficulties in dealing with management in performi ng
and completing the audit. He indicated staff will be coordinating with AEM to submit
an application for the 2019 excellence in achievement for financial reporting certificate
similar to recent years.
He thanked AEM for their efforts in preparing the report and congratulated
department heads for maintaining budgets.
Mr. McDonald stated Bill Lauer from MMKR will be present at the May 2 6 Council
Meeting to address the Council regarding the 2019 audit.
Mr. McDonald introduced Vicki Holthaus of AEM.
Ms. Vicki Holthaus, Abdo, Eick & Meyers, LLP (AEM), reviewed financial highlights
of 2019:
The assets of the city exceeded its liabilities by $7 7,197,731 at the close of the
year, of which $19,880,871 (unrestricted net position) may be used to meet the
city’s ongoing obligations to citizens and creditors.
City Council Work Session May 18, 2020
Page 7
Combined ending fund balances were $29,250,988, a decrease of $8,463,242
compared to prior year. Approximately 15.9 percent of this total amount is
available for spending at the city’s discretion.
Unassigned fund balance of the General Fund was $7,116,723 or 49.6 percent
of total General Fund 2019 expenditures and transfers out. The city’s policy is
to maintain a 42 percent reserve.
The city’s total bonded debt decreased by $4,026,557 (7.6 percent) during the
current fiscal year. The key factor of the decrease was the scheduled principal
and interest payments.
Ms. Holthaus noted personnel costs varied in departments and some fund balances
were due to position vacancies. She also noted staff pursued grant oppor tunities which
positively impacted the budget. She reviewed fund balances of several general funds
and explained fund balances and cash balances of enterprise funds and internal service
funds. She noted the city has a solid financial position, and staff has managed budgets
well.
Council Member London stated he had some questions on the CAFR and would
contact Ms. Holthaus directly for clarification.
Mayor Hemken thanked Ms. Holthaus for the report.
TRANSFER FROM
PARK
INFRASTRUCTURE
TO ICE ARENA
OPERATING FUND
Item 11.7
Mayor Hemken introduced for discussion item 11.7, Discuss transfer from Park
Infrastructure Fund to Ice Arena Operating Fund.
Mr. Kirk McDonald, city manager, stated staff and AEM recommend a transfer of
$400,000 from the park infrastructure fund to the ice arena fund for ice debt service
and capital improvements. The long-term financial plan that was reviewed with
Council in November 2019 included annual transfers to fund outstanding debt at the
facility.
Council supported the transfer and directed staff to prepare a resolution for
consideration at the council meeting of May 26, 2020.
PARKS &
RECREATION AND
PUBLIC WORKS 2020-
2029 CIP
Item 11.8
Mayor Hemken introduced for discussion item 11.8, Discussion regarding the city’s
capital improvement program (CIP) for parks and recreation and public works
departments for 2020-2029.
Mr. Kirk McDonald, city manager, stated Ms. Vicki Holthaus, AEM, prepared a
summary memo providing an overview of each fund over the ten-year period. He
recommended staff review two years of CIP items in detail with Council.
Ms. Susan Rader, director of parks and recreation, reviewed CIP expenditures for 2020
and 2021 for the community gyms, golf course, ice arena, parks, and pool. Mr. Bernie
Weber, director of parks and recreation, reviewed planned CIP expenditures for 2020
and 2021 including central garage, street infrastructure, sewer, storm water, and water
funds. Directors Rader and Weber also highlighted projects planned for years 2022
through 2029.
City Council Work Session May 18, 2020
Page 8
ADJOURNMENT The meeting was adjourned at 9:18 p.m. as there was no further business to come
before the Council at its work session.
Respectfully submitted,
Valerie Leone, City Clerk