08 17 20 Work Session MinutesCity Council Work Session August 17, 2020
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City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes
Work Session Meeting
August 17, 2020
Civic Center 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
Cedrick Frazier, Council Member
Andy Hoffe, Council Member
Jonathan London, Council Member
Staff present:
Kirk McDonald, City Manager
Dan Boyum, City Engineer
Vicki Holthaus, AEM
Valerie Leone, City Clerk
Susan Rader, Director of Parks & Recreation
Steve Sondrall, City Attorney
Stacy Woods, Assistant City Attorney
Also present: Sarah Larson, WMFRD Fire Chief
WMFRD 2021
BUDGET
Item 11.1
Mayor Hemken introduced for discussion item 11.1, Discuss West Metro Fire-Rescue
2021 Budget.
Mr. Kirk McDonald, city manager, and Sarah Larson, West Metro Fire-Rescue District
chief, reported on the 2021 budget. Mr. McDonald stated West Metro Fire-Rescue
District’s proposed budget is $2,674,050, an increase of $99,800 over the prior year.
New Hope’s percentage share of the budget increased slightly from 50.4104% in 2020
to 50.5736% for 2021. He stated the WMFRD’s board of directors approved the budget
at its July 8 board meeting, and that the joint powers agreement requires both cities to
approve West Metro’s budget by August 31. Mr. McDonald noted that the Crystal City
Council will consider the budget at their August 18 Council Meeting.
Council Member London inquired of the increase in financial services.
Chief Larson reported the district utilizes AEM and MMKR for financial services and
the budget has historically been underfunded in this area.
Discussion ensued regarding the higher calls for service in New Hope. Chief Larson
noted that New Hope has more commercial properties than Crystal and it also has
three large nursing homes. She attributed these two items to the higher number of false
alarm calls and medical calls.
City Council Work Session August 17, 2020
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Ms. Larson explained the reasoning for the duty crew during the pandemic to reduce
the risk of exposing the entire department to COVID-19. She noted the federal funding
will cover the expense.
Council thanked Chief Larson for the budget presentation.
POOL/CIVIC CENTER
PARK/CITY HALL
LANDSCAPING
UPDATE
(IMPROVEMENT
PROJECT NOS.
995/941/994)
Item 11.2
Mayor Hemken introduced for discussion item 11.2, Update on Pool/Civic Center
Park/City Hall Landscaping projects by Stantec Engineering (Improvement Project
Nos. 995/941/994).
Ms. Susan Rader, director of parks and recreation, and Mr. Dan Boyum, city engineer,
provided an update to Council regarding the status of the pool and Civic Center Park
projects. They reviewed the “extended general conditions” costs that were submitted
by Donlar Construction. Mr. Boyum stated the original request was $267,509 and
several negotiations took place. He reviewed the spreadsheet illustrating the items and
revised amounts. He stated the updated request subsequent to the August meeting has
been reduced from $49,207.89 to $22,744.05.
Ms. Rader stated staff believes this is a reasonable compromise and staff has been
pleased with the quality of workmanship on the aquatic complex. If Council supports
the negotiated amount, the item will be presented as a change order at the August 24
Council Meeting.
Council Member Elder inquired of the project deadlines and if the pandemic had an
impact.
Council was advised that June 5 was the deadline for the pool construction by Donlar
Construction and August 29 is the substantial completion deadline for the landscaping
by Sunram. It is not believed that the pandemic caused construction delays. Mr. Boyum
reported the final lift cannot be installed on the parking lot until the concrete is
replaced at the police entrance. Ms. Rader indicated that Sunram has been reminded
of the deadline and that the contract contains liquidated damages language. Mr.
McDonald requested the city attorney to send a formal letter to Sunram putting them
on notice regarding the potential for liquidated damages.
Council Member London noted the major concern is timing. He inquired of the project
status in terms of total budget and asked to be provided full information in the August
24 agenda packet. Director Rader noted the costs were shared at the May work session
(estimated shortfall of $261,000). Mr. McDonald commented that over $100,000 of the
overage was due to poor soil conditions. Ms. Rader indicated she would include the
financials in the August 24 report. She also noted she will continue to update Council
in the Friday updates. She stated the punchlist is being addressed and the pool will be
drained and winterized soon.
Mr. McDonald commended Director Rader for coordinating the required paperwork
regarding external funding for the pool.
Council directed staff to present the change order at the August 24 Council Meeting.
City Council Work Session August 17, 2020
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COMMISIONER
APPRECIATION
EVENT 2020
Item 11.3
Mayor Hemken introduced for discussion item 11.3, Discuss Commissioner
Appreciation Event for 2020.
Mr. Kirk McDonald, city manager, noted the city usually hosts a city-wide bus tour of
completed projects for commissioners and elected officials. He stated due to the
pandemic it is recommended that instead of an in-person gathering, a virtual bus tour
or self-driving tour be prepared and provided to persons typically invited to the
annual appreciation event along with a letter from Council expressing appreciation for
their service.
Council supported staff’s recommendation for a virtual or self-driving tour.
ELECTRIC AND GAS
FRANCHISE FEE
ORDINANCE
Item 11.4
Mayor Hemken introduced for discussion item 11.4, Review electric and gas franchise
fee ordinance.
Mr. Kirk McDonald, city manager, stated city code requires the electric and gas
franchise fee ordinances to be reviewed every two years. He stated the fees were last
increased in 2017.
Council Member London stated the city collects nearly $1 million through this revenue
stream which is essentially another tax. He stated he is pleased to see there is a plan
for the use of the funds ($440,000 is directed to the street infrastructure fund to help
support the pavement management plan).
Mr. Steve Sondrall, city attorney, was recognized. He stated it is not necessary for the
Council to take any action unless it desires to modify the fees. He stated franchise fees
are authorized by state statute.
Council reviewed the ordinances and directed staff to make no changes.
THREE-YEAR
CONTRACT
RENEWAL WITH
AEM
Item 11.5
Mayor Hemken introduced for discussion item 11.5, Discuss Three-Year Contract
Renewal with AEM for Professional Financial Management Services for Years 2021-
2023.
Mr. Kirk McDonald, city manager, stated the city has utilized the financial
management services of AEM since December 2008 and has been pleased with their
broad range of services.
He stated AEM has prepared a three-year contract renewal for Council’s consideration.
He stated the average annual increase is slightly over 3%. He indicated the CAFR
preparation responsibility has been transferred to MMKR so the 2021 contract price of
$129,150 is slightly lower than 2020’s contract.
Mr. McDonald noted that West Metro Fire-Rescue District and the city of Crystal also
contract with AEM for financial management services.
Council unanimously supported the contract renewal proposal and directed the city
manager to place the item on the August 24 agenda for formal approval. Council
Member London thanked Vicki Holthaus for illustrating the outsourcing costs within
the budget document.
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MMKR LETTER OF
ENGAGEMENT 2020
AUDIT/CAFR
Item 11.6
Mayor Hemken introduced for discussion item 11.6, Review Letter of Engagement
from MMKR to Perform 2020 Audit/CAFR.
Mr. Kirk McDonald, city manager, stated the city has utilized the services of MMKR
for several years for completion of the city’s annual audit. He stated a three-year
proposal was approved at the October 28, 2019, Council Meeting. He stated Council is
asked to consider the letter of engagement from MMKR to perform the 2020 audit and
CAFR.
Mr. McDonald stated the proposal includes a quote for preparation of the
Comprehensive Annual Financial Report (CAFR) that was previously handled by
AEM but is recommended to be performed by MMKR to improve the audit and
financial reporting timeline. He stated the cost for the 2020 audit and CAFR is $38,730
plus a separate single audit of federal awards for the CARES/FEMA funding at a cost
of $5,000 for a total cost of $43,730.
Ms. Holthaus indicated CARES funding will cover the cost of the single audit.
Council supported the letter of engagement and directed staff to place the item on the
August 24 Council Meeting for approval.
2021 PRELIMINARY
GENERAL FUND
BUDGET AND TAX
LEVY
Item 11.7
Mayor Hemken introduced for discussion item 11.7, Discussion regarding 2021
preliminary general fund budget and tax levy.
Mr. Kirk McDonald, city manager, stated the Council will be asked to set its maximum
2021 tax levy at the September 14 Council Meeting. The general fund budget will be
reviewed and refined this fall and the final budget and tax levy will be adopted in
December.
Mr. McDonald stated the proposed preliminary maximum total tax levy of 3.4% is
lower than the initial estimated levy of 6.7%. He stated the proposed general fund
budget is $15,936,977, and the proposed general fund tax levy is $10,879,465 which is
a 3.5% increase over last year. He explained $156,000 is budgeted for phase 1 of police
department body and squad camera purchases and is recommended to be funded by
a transfer in from the IT reserve fund in order to keep the general fund tax levy to a
minimum. He reviewed other major changes including an increase in the budget for
the fire district, a decrease in the elections budget, an increase in LGA, and an increase
in wages. He stated all directors will be present at the September work session to
review the proposed budgets in detail.
Mr. McDonald stated the estimated overall impact of the city tax levy on residential
properties will not be available from Hennepin County for a few weeks.
Ms. Vicki Holthaus, AEM, explained the tax rate is preliminary and the actual tax
impact on residential homes could vary from the preliminary budget document.
Council agreed upon the recommended maximum tax levy and conducting the budget
hearing on December 7.
City Council Work Session August 17, 2020
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RESOLUTION
CALLING FOR
CLOSED MEETING
Item 11.8
Mayor Hemken introduced for discussion item 11.8, Resolution calling for a closed
meeting of the New Hope City Council authorized by Minn. Stat §13D.05, Subd. 3 to
discuss and consider threatened litigation.
RESOLUTION 2020-82
Item 11.8
Council Member Elder introduced the following resolution and moved its adoption:
“RESOLUTION CALLING FOR A CLOSED MEETING OF THE NEW HOPE CITY
COUNCIL AUTHORIZED BY MINN. STAT §13D.05, SUBD. 3 TO DISCUSS AND
CONSIDER THREATENED LITIGATION.” The motion for the adoption of the
foregoing resolution was seconded by Council Member Frazier, and upon vote being
taken thereon, the following voted in favor thereof: Hemken, Elder, Frazier, Hoffe,
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.
ADJOURNMENT The meeting was adjourned at 7:26 p.m. as there was no further business to come
before the Council at its work session.
Respectfully submitted,
Valerie Leone, City Clerk