11 08 21 City Council MinutesNew Hope City Council November 8, 2021
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City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes November 8, 2021
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
Andy Hoffe, Council Member
Michael Isenberg, Council Member
Jonathan London, Council Member
Kirk McDonald, City Manager
Valerie Leone, City Clerk
Stacy Woods, Assistant City Attorney
APPROVAL OF
MINUTES
Motion was made by Council Member Hoffe, seconded by Council Member
Isenberg, to approve the work session meeting minutes of October 18, 2021.
Voted in favor thereof: Hemken, Elder, Hoffe, Isenberg, London; and the following
voted against the same: None; Abstained: None; Absent: None. Motion carried.
Motion was made by Council Member Isenberg, seconded by Council Member
Elder, to approve the regular meeting minutes of October 25, 2021. Voted in favor
thereof: Hemken, Elder, Hoffe, Isenberg, 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
removed for discussion. Mr. Kirk McDonald, city manager, reviewed the consent
items.
FINANCIAL CLAIMS
Item 6.2
Approval of financial claims through November 8, 2021.
RESOLUTION 2021‐102
Item 6.4
Resolution approving 2022 maintenance agreement with Embedded Systems, Inc.
for tornado/civil defense siren maintenance in the amount of $1,660.32.
New Hope City Council November 8, 2021
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MOTION
Consent Items
Motion was made by Council Member Elder, seconded by Council Member
Isenberg, to approve the Consent items. All present voted in favor. Motion
carried.
PUBLIC HEARING
USE OF BOND
PROCEEDS
SERIES 2017A
Item 7.1
Mayor Hemken introduced for discussion Item 7.1, Supplemental resolution
authorizing use of proceeds of $18,435,000 general obligation capital improvement
plan bonds, Series 2017A.
Mr. Kirk McDonald, city manager, stated in 2017 the City Council approved a
capital improvement plan for the construction of a new police station/city hall
facility. Preliminary approval was given for the issuance of general obligation
capital improvement plan bonds at the September 25, 2017, Council Meeting. A
five‐year plan was prepared by Ehlers & Associates, Inc. with expenditures in 2017
and 2018. In December of 2017 the city issued $18,435,000 in general obligation
capital improvement bonds. He explained on the day of the bond sale, the city
accepted a premium on the bonds which provided additional funds for the project.
Also, at the time the project commenced, the city had saved $600,000 in the city
hall capital fund.
Mr. McDonald stated as of September 30, 2021, the remaining amount of the 2017
bond proceeds is approximately $1,250,000. He indicated the funds will be drawn
down to reimburse city hall CIP for $600,000; to fund remaining security measures
$67,000; to fund technical improvements in meeting rooms $77,000, and for final
payments to contractors $106,000, which brings the remaining bond proceeds to
$400,000. He stated action by the City Council is necessary to redistribute the
$400,000. He explained that the city’s bond counsel was consulted and reallocating
the remaining funds is allowed by law. Staff and AEM is recommending the excess
proceeds be applied to the public works facility improvements.
He stated on May 24, 2021, phase 1 of the public works facility improvement
project was awarded in the amount of $2,314,000. The project will be funded
internally and phase 2 will occur in a couple of years. He stated since the original
CIP plan did not list the public works facility improvements, it is necessary to
conduct a new public hearing and adopt a resolution approving the updated plan
and authorize use of the excess funds.
Mr. McDonald noted the remaining funds could also be utilized to “pay down”
the debt service on the original city hall bonds. He explained if the funds were used
for this purpose, the debt service levy would need to be increased in subsequent
years to bring it back up to the original level before “pay down”. Mr. McDonald
stated both options were discussed with the City Council at the August 16, 2021
work session and the Council was in agreement with the recommendation from
AEM and staff to utilize the funds for the public works facility. At the October 11
Council Meeting, a resolution was adopted scheduling the public hearing for
November 8, 2021.
Mr. McDonald stated after conducting the public hearing, Council is asked to
adopt the resolution which approves the updated Capital Improvement Plan to
include the public works facility improvements for 2021 and authorizes the use of
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excess funds for the additional projects. Mr. McDonald stated Council will be
asked to adopt a subsequent resolution (agenda Item 8.1) to formally transfer the
$400,000 remaining bond proceeds from the city hall construction fund to the
public works facility fund.
Mayor Hemken opened the floor for comments for the public hearing. There was
no one present desirous of addressing the Council on the issue.
CLOSE HEARING
Item 7.1
Motion was made by Council Member Elder, seconded by Council Member Hoffe,
to close the public hearing. All present voted in favor. Motion carried.
Council Member London commented that he does not believe paying down the
debt service on the original city hall bonds would result in higher taxes or a higher
debt service levy. He expressed his opinion that the $400,000 could be saved
elsewhere in the budget, and stated he is not in favor of reappropriating the funds.
RESOLUTION 2021‐103
Item 7.1
Council Member Elder introduced the following resolution and moved its
adoption: “SUPPLEMENTAL RESOLUTION AUTHORIZING USE OF
PROCEEDS OF $18,435,000 GENERAL OBLIGATION CAPITAL
IMPROVEMENT PLAN BONDS, SERIES 2017A.” The motion for the adoption
of the foregoing resolution was seconded by Council Member Isenberg, and upon
vote being taken thereon, the following voted in favor thereof: Hemken, Elder,
Hoffe, Isenberg; and the following voted against the same: London; 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.
BOND PROCEEDS
TRANSFER
Item 8.1
Mayor Hemken introduced for discussion Item 8.1, Resolution approving the
transfer of unspent bond proceeds from the City Hall Construction Fund to the
Public Works Facility Fund (Project No. 1039).
RESOLUTION 2021‐104
Item 8.1
Council Member Elder introduced the following resolution and moved its
adoption: “RESOLUTION APPROVING THE TRANSFER OF UNSPENT
BOND PROCEEDS FROM THE CITY HALL CONSTRUCTION FUND TO THE
PUBLIC WORKS FACILITY FUND (PROJECT NO. 1039).” The motion for the
adoption of the foregoing resolution was seconded by Council Member Isenberg,
and upon vote being taken thereon, the following voted in favor thereof: Hemken,
Elder, Hoffe, Isenberg; and the following voted against the same: London;
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.
ADJOURNMENT
Motion was made by Council Member Isenberg, seconded by Council Member
Elder, 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 7:12 p.m.
Respectfully submitted,
New Hope City Council November 8, 2021
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Valerie Leone, City Clerk