11 16 20 Work Session MinutesCity Council Work Session November 16, 2020
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City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes
Work Session Meeting
November 16, 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
Jonathan London, Council Member
Council absent: Andy Hoffe, Council Member
Staff present:
Kirk McDonald, City Manager
Dan Boyum, City Engineer
Brandon Bell, Community Development Assistant
Vicki Holthaus, AEM
Susan Rader, Director of Parks & Recreation
Bernie Weber, Director of Public Works
LICENSE AND
PERMIT FEES
Item 11.1
Mayor Hemken introduced for discussion item 11.1, Discuss city license and permit
fees.
Mr. Kirk McDonald, city manager, stated this item has six components that will be
reviewed by Brandon Bell., community development assistant.
Mr. Bell stated a license fee analysis of license fees was conducted approximately five
years ago and the city’s fees are in line with area cities. He stated staff does not
recommend any changes at this time.
Council Member London noted that the goal of business licenses is to cover the city’s
operational costs. He suggested updating the analysis. Mr. McDonald stated staff can
review the last analysis which was undertaken by Jeff Alger.
Mr. Bell stated staff was asked to report on the possibility of pro‐rating liquor license
fees for on‐sale restaurants that were closed due to the pandemic. Mr. Bell reviewed
the amounts refunded by Brooklyn Park, Crystal, Plymouth, Robbinsdale. He
recommended the city pro‐rate fees for 10 weeks or $1,192 per business (total cost to
the city is $8,344). Council expressed support for the rebate. Mr. McDonald stated a
resolution could be presented at the November 23 Council Meeting.
Mr. Bell stated other business license types that may have been impacted by the
COVID‐19 shutdown include bowling, therapeutic massage, tattoo, and second hand
dealers. He stated he is not aware of any surrounding cities that offered refunds to
these business types.
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Council Member London recommended applying the rules fairly to all impacted
businesses. He suggested the city be proactive in issuing refunds. Mr. Bell advised that
he would report at a later date on the number of businesses and license fees.
Regarding tobacco licenses, Mr. Bell stated that he consulted Hennepin County Public
Health and Mitchell Hamline Public Health Law Center about the possibility of having
two different types of tobacco licenses and fees (one for stores that can sell flavored
products and one for stores that are limited by flavor restrictions). He indicated it is
very rare that cities establish different license types for tobacco and staff and the city
attorney do not recommend altering the license fees.
Mr. Bell reported on right‐of‐way permit fees. He stated the fees have not changed in
15 years and it is recommended to increase the fees. Mr. Bernie Weber, director of
public works, explained the amount of staff time involved with the right‐of‐way permit
fees to issue the permit and to finalize it once the project is complete. He stated
Hennepin County charges $330 per permit. He recommended the city set its fee at $350.
It was noted that some cities have lower base fees and then charge per linear foot of
the project but it requires measurements which would be labor‐intensive.
Council Member London suggested establishing a fixed and variable rate permit fee
depending on the size of the project. Mr. McDonald stated the 2021 fee schedule will
be presented at the December 14 Council Meeting.
Lastly, Mr. Bell stated staff was asked to review establishment of a city license for tow
trucks to operate in the city. He stated New Hope City Code does not address the
towing of vehicles on private property, and state statute allows the towing of vehicles
when properly posted. He stated cities also have the ability to cap a maximum towing
fee.
Council Member Frazier commented that some towing companies are charging
excessive rates at apartment complexes and preying upon a population that cannot
afford the rates.
Council discussed whether the city should be imposing regulations for actions at
private property. Staff was directed to research whether other cities have such
ordinances and to obtain the police chief’s opinion on the matter.
2020 PERFORMANCE
MEASURES SURVEY
RESULTS
Item 11.2
Mayor Hemken introduced for discussion item 11.2, Review 2020 performance
measures survey results.
Mr. Kirk McDonald, city manager, relayed that the data was compiled by Brandon Bell,
community development assistant. He stated the survey results are similar to last
year’s data and will be included in the 2021 budget presentation.
Mr. Bell stated there were 839 responses or about 200 more responses this year
compared to past years. He stated the ratings were similar to past years. He reviewed
some of the survey questions. He stated many residents requested to be contacted to
report a wide variety of code enforcement issues ranging from exterior storage to
unscreened trash cans to noxious weeds and overgrown grass. He stated the most
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common concern was the poor condition of the railroad crossing Winnetka Avenue.
Residents also stated concerns about property tax increases, snow plowing, tree
trimming, tree removal and traffic enforcement. He stated excerpts will be included in
the December 7 budget hearing presentation. He also noted a professional survey is
proposed for 2021.
2021 BUDGET
Item 11.3
Mayor Hemken introduced for discussion item 11.3, Continue discussion on 2021
budgets.
Mr. Kirk McDonald, city manager, requested feedback from Council regarding the
proposed powerpoint document on the 2021 budget. He stated the presentation
contains information regarding wages, utility rates, performance measures,
information from the county assessor, and tax levy information.
Council expressed support for the presentation.
YEAR‐END
TRANSFERS
Item 11.4
Mayor Hemken introduced for discussion item 11.4, Discussion regarding year‐end
transfers, Interfund Loan Payoffs and Fund Closures.
Ms. Vick Holthaus, AEM, stated she proposes Council consider one resolution to
handle several accounting transactions to be recorded prior to year‐end. She stated the
debt service fund associated with the 2010 (fire) equipment certificates has a residual
cash balance after the final bond payment was made in 2020. It is recommended that
the residual cash be transferred to the fire capital fund to assist with future payments
on the aerial lease. The action also includes repayment of an interfund loan made by
the temporary financing fund to the sewer fund for $892,500; the repayment of an
interfund loan made by the temporary financing fund to the water fund for $582,686;
and a one‐time transfer from street infrastructure fund to street improvement project
2016 (fund 9250) for $10,588.40 and the closure of fund 9250.
Ms. Holthaus commented that the temporary financing fund has been very effective as
it allows internal financing without the need for conventional bonding.
Council Member London inquired of the balance. Ms. Holthaus stated the fund has
$1.3 million in resources and will be increasing by another million after the formal
transfers take place.
Council Member London commented that the city has made improvements regarding
planning for infrastructure needs and budgeting for replacement/maintenance needs.
Mr. McDonald stated part of the reason for the city’s sound financial position is due to
AEM’s ability to make good investments on behalf of the city.
DRAFT LONG TERM
FINANCIAL PLAN
Item 11.5
Mayor Hemken introduced for discussion item 11.5, Review updated draft long‐term
financial plan with AEM.
Mr. Kirk McDonald, city manager, explained in 2017 the long‐term financial plan was
expanded to include 10‐year projections for the street infrastructure fund; and in 2018
the plan was expanded to include 10‐year projections on all funds.
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Ms. Vicki Holthaus, AEM, reported the 2020‐2030 long‐term plan contains several
assumptions and is to be used as a planning tool. She reviewed assumptions with
future action:
Fire Capital Fund 9010 may implement a $150,000 levy in 2022 to build reserves
for future capital outlay needs.
City Hall Capital Fund 9202 may implement a $150,000 levy in 2022 to build
reserves for future building and major capital expenditure needs.
Park Infrastructure Capital Fund 9233 will increase the levy for capital by 5%
annually. In addition it is assumed that $500,000 will be levied each year to support
Ice Arena capital and debt service obligations through 2030.
Ice Arena Fund 9303 will continue to receive an annual transfer of levy dollars
from the Park Infrastructure Capital Fund.
Golf Course Enterprise Fund 9302 capital outlay needs will be monitored and
adjusted based on operating performance of the facility and available cash
reserves.
Street Infrastructure Capital Fund 9203 will increase the levy for capital by 5%
annually.
Sewer Fund 9300 available cash balance allows for payoff of the interfund loan
provided by the temporary financing fund in the amount of $892,500.
Water Fund 9301 available cash balance allows for payoff of the interfund loan
provided by the temporary financing fund in the amount of $582,686.
Storm Water Fund 9304 will receive a repayment from the Shingle Creek
Watershed related to the Meadow Lake Draw Down project which is contemplated
in 2021.
Street Light Fund 9305 will utilize $200,000 of municipal state aid funding in 2023
to offset costs related to the Boone Signal Replacement.
Central Garage 9402 may utilize reserves to finance the reduced scope public
works facility improvements in 2021 and 2024. Annual building replacement
charges will be utilized to replenish the use of fund balance for the improvements.
Park and Pool Improvement Fund 9234 assumes full utilization of the 2018A and
2019A GO Tax Abatement Bonds issued for the construction of the Civic Center
Park and swimming pool improvements.
Street Improvement Project 2016 Fund 9250 created for the Northwood North
street project has a residual cash balance of negative $10,588 due to final entries to
close out the project.
General Fund 9001 reflects the recognition of $1,641,664 of Coronavirus Relief
Fund intergovernmental revenue in 2020.
Mr. Kirk McDonald, city manager, noted that a resolution approving plans and
specifications for a new roof at the south side of the ice arena will be presented at the
November 23 Council Meeting.
Mr. Holthaus stated the total taxes levied are $17 million to $25 million over the life of
this plan. On average the projected tax rate growth is 64% to 68% which is fairly
conservative.
Council thanked Ms. Holthaus for the report.
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2021‐2030 PAVEMENT
MANAGEMENT
PLAN
Item 11.6
Mayor Hemken introduced for discussion item 11.6, Update and Discussion regarding
the 2021‐2030 Pavement Management Plan/Strategy.
Mr. Dan Boyum, city engineer, reviewed the pavement management philosophy and
pavement rating system. He stated a more aggressive approach has shown significant
progress in road conditions. He reported approximately 31.6 miles of streets have been
improved of the entire 65 miles of local and MSA streets. He stated currently the city
has 4.96 miles or 7.6% rated as “poor condition” or worse. He stated the average
pavement ratings for local streets improved from 75.91 (2019) to 80.06 (2020). He
identified water main break history and stated a full street reconstruction is performed
on streets that have significant water main breaks and/or sewer issues. He noted over
the past 15 years the water break trend has been declining as a result of the street
reconstruction work. Mr. Boyum stated the plan contains projects and associated costs
for years 2021 through 2030. He stated improvements are planned for all streets within
the 10‐year pavement management plan. Mr. Boyum stated all the estimated costs have
been reviewed with the city’s finance consultant and staff strives to keep the costs
within the parameters of the estimated revenue stream.
Mr. Boyum explained that the city is seeing a longer life with seal coats and fog
seals. Public works and engineering staff are evaluating an adjustment to the General
Pavement Management Schedule that would extend the second seal coat/fog seal from
6 to 8 years and extend significant structural improvements from 18 to 20 years. These
adjustments would result in full reconstruction being shifted from every 72 to 80
years. Adjustments are also being considered to eliminate seal coats/fog seals on
higher traffic Municipal State Aid (MSA) streets due to stripping of seal
coats. Pavement conditions will be reviewed again in 2021 before a final adjustment is
made in the schedule.
Mayor Hemken inquired whether the city’s street infrastructure levy will eventually
be reduced. Mr. McDonald stated AEM could be consulted on that issue but the long
term financial plan is based on 5% annual increases of the street infrastructure levy.
Council Member London inquired of the plan for curb replacement. Mr. Boyum stated
a B6 curb is usually installed whenever there is a total street reconstruction. It was
noted that the city has a three‐year plan for crackfilling of streets.
Mr. McDonald stated the plan will be posted on the city’s website.
Council thanked staff for the presentation.
COUNCIL AND
COMMISSION
APPOINTMENTS
FOR 2021
Item 11.7
Mayor Hemken introduced for discussion item 11.7, Discussion regarding council and
commission appointments for 2021.
Mr. McDonald stated there are several persons on the four city commissions with terms
expiring December 31 who may be interested in being considered for re‐appointment.
He indicated a resolution will be prepared for adoption at the December 14 council
meeting, and vacancies will be advertised.
Mr. McDonald also reviewed the boards and commissions served by council member
representatives. He noted based on rotation, it is Council Member London’s turn to
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serve as mayor pro tem in 2021, and Council Member Elder and “at large”
representative Gary Laurant both desire reappointment to the West Metro Fire‐Rescue
Board of Directors. He indicated a resolution for Council’s appointments will be
presented at the council meeting of January 11, 2021.
ADJOURNMENT The meeting was adjourned at 8:10 p.m. as there was no further business to come
before the Council at its work session.
Respectfully submitted,
Valerie Leone, City Clerk