09 14 20 City Council MinutesNew Hope City Council September 14, 2020
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City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes September 14, 2020
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
Cedrick Frazier, Council Member
Andy Hoffe, Council Member
Jonathan London, Council Member
Kirk McDonald, City Manager
Dan Boyum, City Engineer
Vicki Holthaus, AEM
Valerie Leone, City Clerk
Bernie Weber, Director of Public Works
Stacy Woods, Assistant City Attorney
APPROVAL OF
MINUTES
Motion was made by Council Member Hoffe, seconded by Council Member Elder,
to approve the work session meeting minutes of August 17, 2020. Voted in favor
thereof: Hemken, Elder, Frazier, Hoffe, London; and the following voted against
the same: None; Abstained: None; Absent: None. Motion carried.
Motion was made by Council Member Elder, seconded by Council Member
Frazier, to approve the executive session meeting minutes of August 17, 2020.
Voted in favor thereof: Hemken, Elder, Frazier, Hoffe, 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 regular meeting minutes of August 24, 2020. Voted in favor
thereof: Hemken, Elder, Frazier, Hoffe, 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.
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
New Hope City Council September 14, 2020
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removed for discussion. Mr. Kirk McDonald, city manager, reviewed the consent
items.
FINANCIAL CLAIMS
Item 6.2
Approval of financial claims through September 14, 2020.
RESOLUTION 2020‐86
Item 6.4
Resolution providing for hearing on assessments for 2020 delinquent utility service
charges, administrative citations, and alarm and mowing charges.
MOTION
Consent Items
Motion was made by Council Member Elder, seconded by Council Member
Frazier, to approve the Consent items. All present voted in favor. Motion carried.
SEWER LINING
CHANGE ORDER
(IMPROVEMENT
PROJECT NO. 1048)
Item 8.1
Mayor Hemken introduced for discussion Item 8.1, Resolution approving Change
Order No. 1 for Visu‐Sewer Contract for the 2020 and 2021 Sewer Lining Project
(Improvement Project No. 1048).
Mr. Dan Boyum, city engineer, explained that sewer lining is performed to reduce
inflow and infiltration (I&I) into the sanitary sewer system. He stated lining the
sanitary sewers is a cost‐effective method of rebuilding the city’s existing
infrastructure. He stated the city has approximately 70 miles of sanitary sewer pipe
and about 11 miles have been lined. He stated 50% of the lining costs are credited
against demand charges, an amount the Metropolitan Council Environmental
Services (MCES) may charge a community for the cost of excess capacity. He
reviewed demand charges from past years.
Mr. Boyum stated the 2020 and 2021 CIP includes $700,000 for lining of the city’s
sanitary sewer collection system ($350,000 per year). The city awarded a contract
on April 27, 2020, with Visu‐Sewer for $321,115.10 for the 2020 and 2021 sewer
lining project. He stated the base bid was favorable and it is beneficial to add
another 3,291 feet to the project for 2020. The city attorney’s office was consulted
and advised that up to 25% of the original contract could be added as a change
order. Staff is recommending a change order of $73,699.25 be approved that would
increase the contract to $394,814.35.
Council Member London inquired of the effectiveness of sewer lining.
Mr. Boyum stated the flow is tracked at the various lift stations in the city. He
pointed out the city receives credit for 50% of the costs against the MCES
surcharge.
Mr. Bernie Weber, director of public works, stated a study was conducted in 2018
near the northwest part of the city and after the lining work is complete, the city
will be able to determine the amount of flow reduction.
Council Member London acknowledged that some I&I is from private lines
between the right‐of‐way and homes. He commented on the costly expense of
requiring a homeowner to update lines as part of the point of sale program. He
requested a cost/benefit analysis. Mr. McDonald stated the city of Golden Valley
has the program and staff can request a copy of their data.
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RESOLUTION 2020‐87
Item 8.1
Council Member Elder introduced the following resolution and moved its
adoption: “RESOLUTION APPROVING CHANGE ORDER NO. 1 FOR VISU‐
SEWER CONTRACT FOR THE 2020 AND 2021 SEWER LINING PROJECT
(IMPROVEMENT PROJECT NO. 1048).” 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.
2021 PRELIMINARY
EDA LEVY
Item 10.1
Mayor Hemken introduced for discussion Item 10.1, Resolution authorizing the
preliminary EDA levy for 2021.
Mr. Kirk McDonald, city manager, recommended setting the preliminary EDA
levy at $365,000, which is an increase of $17,000 from last year. He stated an EDA
levy must be adopted separate from the city’s base levy. He stated the EDA levy
helps fund redevelopment projects.
Mr. McDonald explained that subsequent to the August work session staff learned
the EDA levy could be set at $381,000, instead of $365,000, based on the total
estimated market value. He noted Council’s objective to keep the total tax levy
increase to a minimum.
Council briefly discussed the proposed EDA levy and agreed to set it at $365,000.
Council Member London commented that a large portion of the EDA budget is to
cover salaries. He noted the initial objective of the EDA levy was to acquire
properties for rehabilitation. He suggested the city increase the number of homes
acquired for redevelopment. City Manager McDonald stated the EDA budget will
be reviewed at the September work session.
RESOLUTION 2020‐88
Item 10.1
Council Member Frazier introduced the following resolution and moved its
adoption: “RESOLUTION AUTHORIZING THE PRELIMINARY EDA LEVY
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, 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.
2021 PRELIMINARY
BUDGET
Item 10.2
Mayor Hemken introduced for discussion Item 10.2, Resolution approving 2021
proposed general fund budget and preliminary property tax levy, and setting
public hearing date for the 2021 budget and preliminary property tax levy.
Mr. Kirk McDonald, city manager, introduced Vicki Holthaus, a representative of
AEM Financial Solutions, LLC (the city’s financial consultant), to assist with the
budget presentation. He stated the City Council is asked to adopt the resolution
for the preliminary 2021 budget and to approve the maximum preliminary
property tax levy. He outlined the budget process and timeline for submission of
a preliminary and final tax levy to the county auditor. He stated a public comment
meeting is proposed for December 7, 2020.
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Mr. McDonald reviewed past levies, local government aid and the impact on
equipment replacement funding for years 2018 to 2021. He also reviewed 2021
budget initiatives.
Mr. McDonald stated the proposed 2021 general fund budget is $15,936,977, which
is an increase of $526,427, or 3.4% over the 2020 budget. He noted the major
increases include:
$243,524 to fund 3% increase in wages/benefits including Council salaries
$156,000 increase for phase 1 of police department body and squad camera
purchases (funded by IT reserve)
$85,288 increase in West Metro Fire‐Rescue District JPA
$57,427 increase in central garage charges based on equipment replacement
$49,000 increase in city hall budget due to $24,000 replacement cost for new
generator, increase in utility costs ($22,000) and liability insurance ($17,000) for
larger building
$60,000 decrease in elections budget (2021 is not an election year)
Mr. McDonald stated the 2021 budget includes a 5% increase for street
infrastructure levy and a 5% increase for park infrastructure levy plus an
additional $100,000 (for a total of $500,000) to assist with ice arena debt service and
capital improvements. He pointed out the tax rate in New Hope may be higher
than comparable sized cities but New Hope does not assess taxable properties for
street improvements, as street and park infrastructure improvements are paid
through the general property tax levy.
Mr. McDonald reviewed the 2021 budget initiatives:
Continue to provide existing services/programs with current resources.
Utilize $865,307 of LGA in the general fund to help fund equipment
replacement savings at 100% level (not utilized for general operations).
Public safety is a high priority; implement phase 1 purchase of body worn
camera systems and replacement of squad camera systems/software.
Support/coordinate with West Metro Fire‐Rescue District partnership with
Crystal; including emergency preparedness training and support of long‐term
capital plan based on major apparatus report.
Redevelopment of city center and other areas is a high priority as well as
completion of Windsor Ridge single‐family home development.
Property maintenance and inspections continue as top priority; continue
aggressive scattered site housing program to remove or renovate deteriorated
homes and increase property values with new construction or rehabilitation.
Continue infrastructure/environmental improvements; complete final wear
course on 2020 reconstruction project, 2021 street infrastructure improvements
in Lions Park neighborhood and Erickson Drive, annual seal coat/crack
repair/fog seal improvements and sewer lining, coordinate on Meadow Lake
drawdown and golf course pond improvements. Continue to review public
works facility improvements, continue coordination with Joint Water
Commission and maintain partnerships with Northwood Lake and Meadow
Lake Watershed Associations.
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Open new aquatic facility for 2021 season, replace playground equipment at
Corner Park, replace basketball court at Little Acre Park and make parking lot
repairs at Hidden Valley and Lions Park.
Facility improvements at the ice arena and golf course.
Continue dance, gymnastics, and Movies in Park program.
Continue Emerald Ash Borer removal/replacement program.
Continue contractual arrangement with Solution Builders for IT services.
Continue financial services contract with AEM, update ten‐year financial plan,
pavement management plan, and long‐term capital improvements plan.
Conduct professional city‐wide survey with Morris Leatherman to solicit
resident feedback on city services/programs/issues, encourage public
participation on city projects and promote inclusiveness.
Continue MN GreenStep Cities program.
Implement cost of living increase (3%) and shared increase for insurance
contributions included for employees; council salary adjustments.
Orient any new residents elected to serve on City Council to city departments,
programs and operations.
Ms. Vicki Holthaus, AEM, reviewed the proposed tax levy. She stated the
preliminary tax levy for the general fund is $10,879,465, which is a $368,034 or 3.5%
increase over the 2020 general fund levy. She stated the overall proposed tax levy
is $17,417,601, which is a 3.4% increase.
She explained the estimated overall impact of the city tax levy on residential
properties ranges from $14 to $43 per year for market values between $150,000 to
$400,000.
Ms. Holthaus reported on 2020 legislative session impacts:
• No levy limits
• 2021 LGA allotment increased from $807,579 to $865,307
• No change in PERA employer retirement contributions for 2021
• Potential grant funding from MN Secretary of State for Election expenses,
including health and safety of officials and voters, public outreach related to
social distancing, facilitation of absentee voting, etc.
Ms. Holthaus illustrated the city’s LGA and city tax rate over the past ten years.
She reported the city’s tax rate is slated to decrease from 64.721% to 62.471%. She
explained how the local tax rate is applied to the tax capacity.
Next Ms. Holthaus reviewed the general fund revenues and expenditures for 2019,
2020 and 2021. She stated if the preliminary 2021 budget is adopted, the city will
maintain a fund balance of 50% of expenditures. She explained a fund balance is
necessary for city operations for the first half of the year, as the city does not receive
any property tax revenue until mid‐year. She stated the overall levy increase is
3.4% compared to last year’s increase of 10.8%. Ms. Holthaus noted LGA will be
used for equipment replacement savings (not to offset general operations).
Ms. Holthaus stated Council and staff will continue to review budgets and
programs to finalize the budget document. She stated the budget meeting for
public comment is December 7, and the Council will consider adoption of the 2021
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budget at its meeting of December 14, 2020. She also noted the preliminary budget
and the presentation will be posted on the city’s website.
Council Member London commented on the favorable 62.471% tax rate. He stated
the comprehensive annual financial report (CAFR) and long‐term plan used a rate
of 75%. He questioned whether the lower rate was attributable to increases in
property values. He commented that he believes New Hope’s property values are
20‐40% undervalued, however he noted properties on the west and south areas of
the city are reaching the fair values.
Ms. Holthaus stated the projections are intentionally conservative in terms of
growth.
Mr. McDonald reported he is pleased with the preliminary 2021 budget that
contains an overall levy increase of 3.4%. He reported it is lower than Golden
Valley’s 5.35% tax levy and Crystal’s 6.23% tax levy.
Council thanked staff for the work on the preliminary budget.
RESOLUTION 2020‐89
Item 10.2
Council Member Elder introduced the following resolution and moved its
adoption: “RESOLUTION APPROVING 2021 PROPOSED GENERAL FUND
BUDGET AND PRELIMINARY PROPERTY TAX LEVY, AND SETTING
PUBLIC HEARING DATE FOR THE 2021 BUDGET AND PRELIMINARY
PROPERTY TAX LEVY.” 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.
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. She also reported the Council
recently interviewed commission candidates.
Motion was made by Council Member Elder, seconded by Council Member
Frazier, to appoint Ose Sesay, Zachary Snabes, and Jennifer Toavs to the Human
Rights Commission and to appoint Marc Berris to the Fire Board. All present
voted in favor. Motion carried.
ADJOURNMENT
Motion was made by Council Member Elder, seconded by Council Member
Frazier, 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 7:54 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
New Hope City Council September 14, 2020
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