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10 19 20 Work Session MinutesCity Council Work Session October 19, 2020 Page 1 City of New Hope 4401 Xylon Avenue North New Hope, Minnesota 55428 City Council Minutes Work Session Meeting October 19, 2020 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 (arrived at 6:45 pm) 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 Rich Johnson, Director of HR/Admin. Services Valerie Leone, City Clerk Susan Rader, Director of Parks & Recreation Mark Severson, Recreation Facilities Manager Bernie Weber, Director of Public Works 2021-2024 ASSESSMENT SERVICES AGREEMENT Item 11.1 Mayor Hemken introduced for discussion item 11.1, Discuss Four Year (2021-2024) Assessment Services Agreement with Hennepin County. Mr. Kirk McDonald, city manager, introduced Jim Atchison of Hennepin County. Mr. McDonald explained the four-year agreement with Hennepin County expired July 3, 2020, and a new agreement has been prepared by the county for another four-year period. Mr. Jim Atchison explained the 2020 agreement was for $160,000 and the 2021 agreement specifies a sum of $165,000. Mr. Atchison responded to questions from Council including the process to verify property status (homestead or non-homestead) and the annual inspection of 20 percent of properties. He explained that due to the pandemic and inability to enter many properties, the county used other means such as surveys, aerials, curbside assessments, and phone interviews to establish values. He explained the assessors work closely with the city’s building department for building permit information relating to new construction, additions and renovations. Council supported the agreement and directed staff to place the item on the October 26 agenda. HRG PROGRAMS/2021 Mayor Hemken introduced for discussion item 11.2, Discussion regarding HRG programs/2021 rates and curbside residential organics recycling. City Council Work Session October 19, 2020 Page 2 RATES/ORGANICS RECYCLING OPTIONS Item 11.2 Mr. Kirk McDonald, city manager, introduced Tim Pratt of the HRG (Hennepin Recycling Group). Mr. McDonald reported there will be no increase in recycling rates for 2021. Mr. Tim Pratt, HRG administrator and Brooklyn Park staff member, reviewed the recycling program components, participation levels, fees, a future mobile app (Recollect), and plans to ensure access to residential curbside organics collection is implemented by January 1, 2022. He stated he will continue working with city staff to address the organics recycling requirement and other language updates in the city’s ordinances. He stated the cost of the bulky waste collection contract with the HRG will likely increase in 2022. Mr. Pratt stated the program is popular but it requires rear loading trucks and the new trucks are equipped as side loading vehicles. Mr. Pratt stated the 2022 increase will likely be at least $.50 per household per month. Mayor Hemken inquired of the organics recycling costs. Mr. Pratt stated the cost is approximately $70 per year per household. He stated the HRG may split the cost for the first year to encourage participation. Council thanked Mr. Pratt for the update. 2021 COLA ADJUSTMENT/ INSURANCE CONTRIBUTIONS Item 11.3 Mayor Hemken introduced for discussion item 11.3, Discussion regarding the cost of living adjustment (COLA) for non-represented employees in 2021 and the city’s monthly contribution towards insurance coverage for 2021. Mr. Rich Johnson, director of HR/Admin. Services, was recognized. He recommended Council consider a 3% cost of living adjustment (COLA) for non-represented employees in 2021. He explained that three year agreements have been approved for 2020-2022 with public works and police labor unions for a 3% increase, and the past practice has been to provide all employees (labor unions and non-represented) with similar increases. He noted that West Metro Fire-Rescue District included a 3% COLA and CCX Media budgeted a 2% COLA in their 2021 budgets. He reviewed the budget impact that is included in the city’s proposed 2021 budget. Director Johnson updated Council regarding the health and dental premiums. He explained in 2019 and 2020, the City Council agreed to provide employees with the “typical” increase of ½ of the mid-range plan’s premium plus an additional amount which was equal to one-half of the amount the city’s contribution towards health insurance that had fallen below that of its 12 comparable cities. One-half of the shortfall was implemented each year to reduce the impact on each of the annual budgets. Although New Hope’s current city contribution towards insurance is again below its comparable cities contribution, only the “typical” increase is being requested for 2021 as staff was able to negotiate a 14.7% decrease in health insurance premiums for 2020. Staff is recommending increasing the city’s contribution amount by $18, $39, and $46 for single, employee plus one, and family health insurance coverage, respectively, effective January 1, 2021. He stated it is necessary to set the contribution City Council Work Session October 19, 2020 Page 3 amounts prior to the open enrollment period which begins in November, and the expenditure is included in the 2021 budget. Council Member Elder inquired of the actual premium cost. Director Johnson indicated he would distribute a spreadsheet containing the various plans and premiums to Council. Council supported staff’s recommendations for a 3% wage adjustment and the city’s monthly contribution toward employee insurance coverage. FEASIBILITY REPORT (IMPROVEMENT PROJECT NO. 1054) Item 11.4 Mayor Hemken introduced for discussion item 11.4, Discuss Revised Feasibility Report on 2021 Infrastructure Improvements Project (Improvement Project No. 1054). Mr. Dan Boyum, city engineer, explained the original feasibility report and cost estimate was prepared and presented at the September 28, 2020 Council Meeting. Following presentation of the report, it was noticed the formula in the Reclaim and Overlay cost estimate was not summing up all line items. The original report had a project cost of $463,117.85 for Reclaim and Overlay. The correct total is $665,532.40, a difference of $202,414.55. He reported that the time the engineering staff spent to revise the report was not charged to the city. He stated the street costs are still under the CIP Street Budget. He stated both Alternate 1 and Alternate 2 are included as part of the bidding process. Council Member Elder commended City Engineer Boyum for making the Council aware of the mathematical error. COMMUNITY DEVELOPMENT DEPARTMENT UPDATE Item 11.5 Mayor Hemken introduced for discussion item 11.5, Community Development Department Update. Mr. Jeff Alger, community development specialist, reported the city’s scattered site housing program continues to thrive since it was reinstituted in 2014. He stated the acquisition of distressed single-family homes and vacant lots has resulted in the construction or rehabilitation of 22 homes. He indicated homes sold in the last year have had higher sales prices than anticipated. He stated staff worked with AEM to develop a new template for evaluating scattered site housing projects. He updated Council on the sales of the Windsor Ridge project. Mr. Jeff Sargent, director of community development, reported on other redevelopment efforts in the city. Discussion ensued regarding the Habitat for Humanity project at 8270 47th Avenue North. Council Member Elder recommended the city donate a work day by city employees. Council Member London inquired if a two-stall garage is part of the project. Mr. Alger stated due to the existing garage’s location, it is not possible to add another stall. Mr. Sargent reported on a new effort to increase coordination on code violations in certain areas of the city between the police department, West Metro Fire-Rescue District and the community development department. Council Member London suggested staff look at 3109 Independence as a possible scattered site project. Mr. Alger stated he would research the property. City Council Work Session October 19, 2020 Page 4 Council Member London thanked the inspectors for addressing lighting issues at commercial and industrial properties. He stated he requested a report from the former police chief on areas of concern and a list of police calls in ascending order. He indicated he would still like to see such a report. Council asked staff regarding the status of the rental housing inspections. Director Sargent indicated the inspections are a bit behind due to the pandemic but they will get back on course shortly. Mr. Sargent advised Council of the Livable Communities Act administered by Metropolitan Council and stated the city has utilized the programs in the past. Mr. Sargent reported that the city must re-enroll in the program by November 15 in order to be eligible for grants during the 2021-2030 period. Council directed staff to place the matter on a future agenda for approval. Council thanked the community development staff for the update. 2021 ENTERPRISE AND UTILITY FUND BUDGETS/UTILITY RATES Item 11.6 Mayor Hemken introduced for discussion item 11.6, Discussion regarding 2021 enterprise and utility fund budgets/discuss 2021 utility rates. Mr. Bernie Weber, public works director, and Ms. Vicki Holthaus of AEM, reviewed the utility budgets. Mr. Weber highlighted expenditures planned for each fund during the 2021 budget cycle. Ms. Holthaus reviewed cash balances and recommended the following rate increases: 5% water, 5% storm water drainage, 5% sewer, and 5% street lighting. Ms. Holthaus explained the need for the increases. 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. Mr. Kirk McDonald pointed out that staff will present the ten-year plan (costs/revenues) at the November work session. Ms. Susan Rader, director of parks and recreation, and Mark Severson, recreation facilities manager, reported on revenue and expenditures for 2021 for the golf course and ice arena. Ms. Rader stated staff recommends no change in golf course greens fees but a minimal increase in adult and senior passes is recommended. She stated staff recommends the prime ice rental rate increase from $215 to $220 per hour effective September of 2021. Staff shared the capital improvement plans for the city’s recreation facilities. Ms. Vicki Holthaus, AEM, reported on cash balances of the funds. Mr. Kirk McDonald, city manager, indicated utility rate fee changes will be presented to Council on the updated Fee Schedule at the November work session and formal action requested at the December 14 council meeting. Council thanked staff for the budget review. City Council Work Session October 19, 2020 Page 5 AGENDA ADDITIONS Mr. Kirk McDonald requested the addition of two minor items to the work session for Council’s review. Mayor Hemken stated she received an inquiry from someone interested in opening a tobacco shop in New Hope. She stated the recently adopted tobacco ordinance caps the number of tobacco licenses at 21. She asked Council if there was interest in raising the cap. Council unanimously declined increasing the number of allowed tobacco license holders. Mayor Hemken stated she would inform the party of Council’s decision. City Manager McDonald explained that after the city clerk mailed the annual liquor license renewals, one of the businesses (Pub 42) asked if the city was going to pro-rate the 2021 fee in light of the Governor’s order on the closure of restaurants due to the pandemic. He stated the annual license fee is $6,200 and the city’s loss of revenue would be approximately $8,000. He stated although the CARES funds cannot be utilized for lost revenue, the city will have a large fund balance in 2021. He asked Council if there was an interest in refunding part of the business license fees to on-sale liquor license holders. Council acknowledged the hardships endured by restaurants. It was noted that all businesses have been impacted by the pandemic. Council Member London pointed out the city charges the same fee for tobacco licenses even though the 21+ shops can sell additional products than other tobacco license holders. No decision was made regarding pro-rating liquor license fees for 2021. Mr. McDonald stated staff is reviewing fees of neighboring cities and the analysis will be presented to Council in the near future. He stated the liquor license issue can be reviewed at the same meeting. ADJOURNMENT The meeting was adjourned at 8:55 p.m. as there was no further business to come before the Council at its work session. Respectfully submitted, Valerie Leone, City Clerk