10 18 21 Work Session MinutesCity Council Work Session October 18, 2021
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City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes
Work Session Meeting
October 18, 2021
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.
Council agreed to amend the agenda by conducting item 11.2 prior to 11.1.
ROLL CALL Council present:
Kathi Hemken, Mayor
John Elder, Council Member
Andy Hoffe, Council Member
Michael Isenberg, Council Member
Jonathan London, Council Member
Staff present:
Kirk McDonald, City Manager
Jeff Alger, Community Development Specialist
Brandi Hearn, Administrative Specialist
Vicki Holthaus, AEM
Tim Hoyt, Director of Police
Rich Johnson, Director of HR/Admin. Services
Valerie Leone, City Clerk
Susan Rader, Director of Parks & Recreation
Jeff Sargent, Director of Community Development
Mark Severson, Recreation Facilities Manager
Bernie Weber, Director of Public Works
HRC DIALOGUE
Item 11.1
Mayor Hemken introduced for discussion item 11.1, Dialogue with Human Rights
Commission.
Mr. Tim Hoyt, police chief and staff liaison to the Human Rights Commission
introduced Donna Meyer, HRC chair.
Chair Meyer stated the commission is at full membership: Donna Meyer, Kendra
Curry, Trista Rehnke, Heather Fruen, Heaven Shaw, Jennifer Toavs, Allison Isenberg,
Mindy London, Danielle Saima, and Zachary Snabes. Ms. Meyer reviewed the
commission’s accomplishments during 2021 (participated in Complete Count
Committee to assist with the 2020 Census, recruited commission members, sponsored
Sunnyside Park, attended State HRC meetings, advised on Just Deeds and Restrictive
Covenants Project, partnered with the police department to provide reflective vests to
dog walkers, updated HRC informational brochure, participated in various city and
police department events). She stated the HRC has formed five subcommittees:
Community Conversations, LGBTQ Partnership, Marketing and Awareness, Colors of
the World, and Home Ownership.
City Council Work Session October 18, 2021
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Discussion ensued regarding the donated color crayons distributed to kindergarten
classes in the city and the artwork project (Colors of the World). Chair Meyer stated
the artwork will be on display at city hall on November 4 from 3‐6 pm; and she invited
the Council to attend the open house event.
Mayor Hemken suggested the HRC work with the community development staff
regarding home ownership programs.
Council commended the commission for their effective community outreach.
HRG PROGRAMS
AND 2022 RATES
Item 11.2
Mayor Hemken introduced for discussion item 11.2, Discussion regarding HRG
programs and recommended 2022 rates.
Mr. Tim Pratt, HRG Recycling Manager, reviewed the recycling program components,
participation levels and proposed changes to measure participation. He stated the
HRG has launched a mobile app (Brooklyn Park HRG Recycling) to make it easier for
residents to stay connected about recycling collection programs. He explained the load
limits that will be implemented in the 2022 bulky waste curbside clean up program.
The curbside cleanup will be held March 28 through April 7, 2022. He reported on
other recycling initiatives including the spring and fall special materials drop‐off, the
yard waste site, and the organics recycling for pumpkins drop‐off site at Central Park
in Brooklyn Park. He stated collapsible recycling containers can be checked out from
Brooklyn Park city hall for special events and bags are provided at no cost.
Mr. Pratt addressed recycling fees and stated a $.25 increase is recommended for year
2022 making the monthly fee $4.00 per residential property. He stated trash haulers are
required to offer organics collection by January 1, 2022, and as an incentive to
residential households, the HRG will reimburse residents 50% of the first year of
organics collection up to $100. He also reported that the HRG will be establishing an
organics recycling drop‐off at the Crystal Aquatics Center funded by Hennepin
County grant funds. Residents may take organic recycling to the drop‐off site free of
charge.
Mayor Hemken thanked Mr. Pratt for the update.
PERFORMANCE
MEASUREMENT
REPORT & SMART
GOALS
Item 11.3
Mayor Hemken introduced for discussion item 11.3, Update on Performance
Measurement Report and SMART goals.
Mr. Jeff Alger, community development specialist, reviewed the 2021 Performance
Measurement Report and SMART goals document that contains data of 2017‐2020. He
reported the SMART goals are generally on track. Mr. Alger requested Council’s
approval to post the document on the city website.
Council Member London noted he was hopeful that the data in the report would not
only drive behavior and accountability but also generate questions when comparing
data to other cities. He encouraged staff to continually strive to improve city programs.
Council accepted the report and complimented Mr. Alger for his work. They
authorized posting the document on the city’s website.
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ECONOMIC
DEVELOPMENT
REPORT
Item 11.4
Mayor Hemken introduced for discussion item 11.4, Update on Economic
Development Report.
Mr. Jeff Alger, community development specialist, stated the report was developed in
2016 and is updated annually. He stated the economic development report highlights
redevelopment projects throughout the city from the previous year and the tools that
are in place to promote development activity. He stated the city’s EDA promotes and
facilitates business development and housing redevelopment activities. He noted the
report was most recently utilized for refinancing of ice arena conservation bonds in
2021. He noted the larger new businesses that opened in 2020 include ORIJIN Stone,
Southview Design, Day & Ross, Fiat Chrysler Automobiles, Los Sanchez Restaurant,
and Drive Appeal. He reported on property value increases and noted one of the
contributors was the Windsor Ridge subdivision which added an estimated $10 million
to the tax base.
Council discussed the effectiveness of the scattered site housing program and
commended staff on the success of the Windsor Ridge housing project.
Council accepted the report and supported posting it on the city’s website.
COMMUNITY
DEVELOPMENT
UPDATE
Item 11.5
Mayor Hemken introduced for discussion item 11.5, Community Development
Department update.
Mr. Jeff Sargent, director of community development, reported on the city’s scattered
site housing program and the rising cost to acquire distressed properties. Mr. Sargent
noted it is unlikely that the city can acquire distressed homes for under $200,000 in the
future. He stated the lot sales price to developers could be increased to recoup part of
the expense; and the city could explore other housing programs and/or grants.
Mr. Kirk McDonald, city manager, questioned whether the Council would support
paying more than $200,000 for a property intended for demolition. Mayor Hemken
recommended continued use of the matrix that staff developed for housing projects.
She noted even if the initial purchase price is higher, the end product might be higher
which adds to the tax base. Council agreed to consider each project on a case‐by‐case
basis.
Director Sargent reviewed potential redevelopment opportunities for Lincoln Manor
and Winnetka Mall. He also commented on the project initiated by St. Therese Nursing
Home that will be undertaken in three phases to renovate the campus.
Mr. Sargent explained the Local Housing Incentives Account (LHIA) that helps expand
and preserve affordable ownership and rental housing for metro communities. He
stated the program is offered through Hennepin County and requires a matching fund.
Director Sargent updated Council regarding the rental license programs and
inspections, code enforcement efforts, and the Center for Energy and Environment
(CEE) contract that offers housing loans and grants to New Hope residents.
Council thanked the community development staff for the update.
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2022 ENTERPRISE
AND UTILITY FUND
BUDGETS AND
UTILITY RATES
Item 11.6
Mayor Hemken introduced for discussion item 11.6, Discussion regarding 2022
enterprise and utility fund budgets/discuss 2022 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 2022 budget cycle.
Ms. Holthaus reviewed cash balances and recommended the following rate increases:
4% water, 4% storm water drainage, 4% 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.
Ms. Susan Rader, director of parks and recreation, and Mark Severson, recreation
facilities manager, reported on revenue and expenditures for 2022 for the golf course
and ice arena. Ms. Rader stated staff recommends minimal increases for golf course
greens fees and a $5/hour increase in the prime ice rental rate effective fall of 2022. 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 for adoption at the December 13 Council
Meeting.
Council thanked staff for the budget review.
SWIM MEET RENTAL
RATES
Item 11.7
Mayor Hemken introduced for discussion item 11.7, Discuss swim meet rental rates.
Ms. Susan Rader, director of parks and recreation, stated during the review of the 2022
Aquatic Park budget staff briefly discussed the swim team rental fees for 2022. She
stated Council requested information regarding fees charged by other pool owners for
swim meets. She reviewed the fee information and the uniqueness of the New Hope
pool/aquatic park.
Ms. Rader stated the 2021 swim meet rate was $230 for 36 hours or $8,280 revenue less
staff costs for a total of $5,127.60. She stated the gate revenue based on weekend
averages (less staff costs) was $9,744.39 so the city had a loss of $4,616.80. She noted to
be cost neutral the hourly rate would need to be $358 which would be a significant
increase. Ms. Rader proposed increasing the rate incrementally.
Discussion ensued regarding the pool construction funding sources, the support of the
swim community from the state legislature and expectations of Minnesota Swimming
regarding usage of the Aquatic Park.
Council Member London pointed out the city may want to account for capital expense
when establishing rental rates. He recommended increasing the rate to $360/hour
commencing next year.
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Ms. Rader proposed a rate of $265 per hour for the 2022 swim meet pool rental rate
and that another increase be considered for 2023. She stated although the agreement
states the city must allow the swim team to rent the pool for four regional swim meets,
the agreement does not specify rental rates.
The majority of Council supported setting the swim meet pool rental rate at $265/hour
for the 2022 swim season.
COST OF LIVING
ADJUSTMENT AND
INSURANCE
CONTRIBUTION
Item 11.8
Mayor Hemken introduced for discussion item 11.8, Discussion regarding the Cost of
Living Adjustment (COLA) for non‐represented employees in 2022 and the city’s
monthly contribution towards insurance coverage for 2022.
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 2022. He explained that the three year agreements in place for 2020‐2022
with public works and police labor unions include a 3% increase, and the past practice
has been to provide all employees (labor unions and non‐represented) with similar
increases. He stated the average of the increases budgeted by New Hope’s 12
comparable cities range from 2% to 3.5%, and the average is 2.81%. He noted that both
West Metro Fire‐Rescue District and CCX Media have budgeted for a 3% COLA in
their 2022 budgets.
Council Member London called attention to the increases in personnel costs and noted
it will not be sustainable long‐term.
Director Johnson updated Council regarding the city’s contribution towards insurance.
He reviewed the comparable cities’ contributions towards health insurance and noted
New Hope has fallen behind its 12 comparable cities. He recommended increases to
the city’s contribution of $95/month for single coverage; $155/month for employee plus
one coverage, and $176/month for family coverage.
Mr. Kirk McDonald, city manager, emphasized the importance of remaining
competitive in wages and benefits. He stated insurance contributions must be set at
this time as open enrollment begins the end of October.
Council discussed the cost of on‐boarding new employees.
Council supported staff’s recommendations for a 3% wage adjustment and increasing
the city’s monthly contribution toward employee insurance coverage.
UPGRADING
POSITIONS
Item 11.9
Mayor Hemken introduced for discussion item 11.9, Discussion regarding modifying
the structure of the Community Development department and the HR/Administration
department by upgrading two positions.
Mr. Rich Johnson, director of HR/Admin. Services, explained staff recommends
upgrading the community development assistant position to a community
development coordinator/management analyst position due to assistance being
provided to the city manager’s department by re‐implementing the community
development coordinator/management analyst position. The community
development assistant position is an exempt position in grade 12 of the compensation
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plan. The community development coordinator/management analyst position would
be an exempt position in grade 14. He stated this was verified by Ann Antonsen of
Baker TiIly (formerly Springsted, Inc.) when this position was initially created in 2019.
This position would be filled by elevating the existing community development
assistant into this role.
Mr. Johnson stated staff is also proposing to upgrade the human resource coordinator
position to a human resource/information technology coordinator position due to
increased IT responsibilities The human resource coordinator position is a non‐exempt
position in grade 13 of the compensation plan. He stated the position was evaluated
by Ann Antonsen of Baker TiIly and it was classified as an exempt position in grade
15. This new position would be filled by elevating the existing human resource
coordinator who continues to assume additional duties in both human resources and
technology areas.
Director Johnson stated if the City Council is supportive, these items will be brought
to the City Council in December as part of the 2022 compensation plan. Both of these
position changes would go into effect January 3, 2022. He stated both of the changes
are included in the proposed 2022 budget.
Council expressed support for the changes.
ADJOURNMENT The meeting was adjourned at 9:06 p.m. as there was no further business to come
before the Council at its work session.
Respectfully submitted,
Valerie Leone, City Clerk