11 15 21 Work Session MinutesCity Council Work Session November 15, 2021
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City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes
Work Session Meeting
November 15, 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.
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
Dan Boyum, City Engineer
Vicki Holthaus, Abdo
Rich Johnson, Director of HR/Admin Services
Valerie Leone, City Clerk
Shawn Markham, Contract Manager/Forester
Walker MacBeath, HR Coordinator
Susan Rader, Director of Parks & Recreation
Jeff Sargent, Director of Community Development
Blake Torbeck, Abdo
Bernie Weber, Director of Public Works
Also present: Sarah Larson, WMFRD Chief
Adam Wodtke, WMFRD Assistant Chief
DIALOGUE WITH
PERSONNEL BOARD
Item 11.1
Mayor Hemken introduced for discussion item 11.1, Dialogue with Personnel Board.
Mr. Rich Johnson, Director of HR/Admin Services and staff liaison of the Personnel
Board, was recognized. He noted the Personnel Board’s last dialogue with the Council
was held in January of 2020. He stated Eric Galstad currently chairs the commission
and the other two members are Anthony Brown and Wendy Brostrom.
Director Johnson stated over the past 22 months the Personnel Board has assisted the
city with 22 recruitments, has reviewed and updated various job descriptions, and was
instrumental with two position upgrades.
At Mayor Hemken’s request, members of the Personnel Board provided a brief
summary of their human resources backgrounds.
Chair Galstad explained the recruitment/hiring process of city employees.
Council asked the Personnel Board if they are aware of anything in their profession
that the city should consider changing in terms of hiring, employee retention, and
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employee recognition. The Board was also asked to address wages and the effects of
the pandemic.
Mr. Brown commented that the city has a good employee recognition program. He
emphasized the apparent high satisfaction of employees as shown by employee
retention which is a result of good working relationships, team environment, and city
council support. He noted the city was able to adapt during COVID‐19 by offering
telecommuting opportunities.
Ms. Brostrom commented on the city’s good reputation especially in the police
department. She explained wages are rapidly increasing in the market and some
businesses perform salary surveys quarterly rather than annually. She stated she
believes the city should strive to be within 3‐5% of the average salary ranges of
comparable cities to remain competitive.
Mr. Galstad indicated the supervisor/employee relationship is important. He
concurred that competitive salaries prevent employees from seeking jobs elsewhere.
Mr. Kirk McDonald, city manager, pointed out over the last 16 months the Personnel
Board has certified 35 employees for various positions. He explained the civil service
recruitment process is very thorough and entails several interviews. He indicated the
Personnel Board provides an invaluable service, and the city has a successful
recruitment track record.
Council thanked the Personnel Board for their service and the update.
EMERALD ASH
BORER UPDATE
Item 11.2
Mayor Hemken introduced for discussion item 11.2, Emerald Ash Borer update by
forester.
Mr. Shawn Markham, contract manager/forester, was recognized. He noted due to the
pandemic he did not provide an update last year.
Mr. Markham reviewed activity of the Emerald Ash Borer program. He stated the
Emerald Ash Borer was first identified in New Hope in 2019 and now all areas of the
city have been confirmed to contain the disease. He stated in 2020 there were 126 trees
removed (112 ash trees and 14 other tree species). A total of 99 trees were planted in
2020 (51 in the parks and 48 on residential boulevards).
Mr. Markham indicated in 2021 there were 162 trees removed (148 ash trees and 14
non‐ash trees). He stated a total of 42 trees were planted. He stated fall planting was
suspended mainly due to the drought and low supply of trees. He noted the trees not
planted this fall will be planted in the spring of 2022.
Mr. Markham reported on recent grant opportunities through Hennepin County and
the Department of Natural Resources. He stated the city was awarded a total of $50,000
($15,000 for tree replacement and $35,000 for tree removal). He also thanked the
Council for approving an additional $50,000 in the 2022 budget for the Emerald Ash
Borer Removal/Replacement Program.
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Discussion ensued regarding the recently planted trees on the boulevard along
Winnetka Avenue north of 42nd Avenue. Mr. Markham stated the trees are a smaller
variety and required planting by hand due to the number of utilities in the boulevard.
He stated Hennepin County planted the trees and will maintain them.
Council reported a large limb near 42nd and Ensign avenues that needs trimming.
Council thanked Mr. Markham for the update.
WMFRD DAYTIME
SERVICE MODEL
AND STAFFING
Item 11.3
Mayor Hemken introduced for discussion item 11.3, Discussion regarding WMFRD
Daytime Service Model and Staffing.
Mr. Kirk McDonald, city manager, reported a joint New Hope/Crystal city council/fire
board work session was conducted on October 27 to discuss the fire departments
application for a Staffing for Adequate Fire and Emergency Response (SAFER) grant
for three additional full‐time firefighter employees. He stated at the conclusion of the
joint session it was decided that each council would discuss the matter further at their
work sessions in November and provide direction to the city managers.
He stated the SAFER grant would fund the wages for the first three years, but there
would be other costs. He stated the district has agreed to contribute some reserves to
offset the initial cost of the new employees and split the additional cost 50/50 between
the fire district and the cities for the first three years. He stated in the fourth year (2026)
the cities would absorb the full cost of the three additional full‐time employees. Mr.
McDonald reported many cities are applying for the grant.
Mr. McDonald noted that two council members were not in attendance at the October
27 special meeting and may have questions.
Ms. Sarah Larson, WMFRD chief, explained that the district is a paid on call fire
department with seven full‐time staff. She stated it has become challenging to get paid‐
on call firefighters to respond to daytime fires, and the full‐time staff fill the duty crew.
She stated additional staff would help make the paid‐on call model more sustainable.
Chief Larson explained the grant was created to help fire departments increase or
maintain the number of trained firefighters to meet the 1720 standards established by
NFDA in 2001. She stated in New Hope the 1720 standard requires a minimum of 15
firefighters to respond to a structure fire within nine minutes. She stated even with
mutual aid the district does not meet this minimum of 90% of calls between 6:00 a.m.
and 6:00 p.m. Chief Larson acknowledged that the district would not likely meet the
standard but would get closer to doing so by having three additional daytime
firefighters. She noted the district oftentimes meets the firefighter numbers but not the
response time.
She indicated the annual cost per household would be approximately $23.
Chief Larson noted the district is unique in that many tasks are performed in‐house
such as human resources, information technology, accounts payable, and equipment
repairs. She stated an additional three staff members would assist with logistics and
training.
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Council Members London and Hoffe requested clarification on whether the district is
operating in an unsafe manner and the reason for a large increase from seven staff to
ten staff.
Chief Larson explained the situation with decreasing firefighter response during
daytime and how the daytime staff has been assuming more fire calls.
Mr. Adam Wodtke, assistant chief of operations, stated including kitchen fires, the
district responds to 70 to 80 fires per year. He stated approximately 30 of the fires are
structure fires that require fire hose operation.
Chief Larson stated the purpose of the grant is to try to meet the 1720 standards and
the grant would likely not be awarded if the request was for only one or two people.
Council Member Isenberg spoke of the importance of public safety and noted it
appears the district has reached its tipping point with struggles to find paid‐on call
daytime response and requiring many extra hours to be worked by district staff. He
indicated the SAFER grant essentially funds nine years of salaries (by funding wages
of three new staff for three years).
Mayor Hemken pointed out the first step is to apply for the grant but the district/city
is not obligated to accept the grant. The majority of Council supported the grant
application.
Chief Larson thanked the Council for their support of the grant submission.
ADMINISTRATIVE
CITATIONS
Item 11.4
Mayor Hemken introduced for discussion item 11.4, Discuss increase in fee schedule
for Administrative Citations.
Mr. Jeff Sargent, director of community development, explained the three levels of
administrative citations and corresponding fines. He stated staff compared New
Hope’s code enforcement fine structure to other cities and is recommending changes.
He stated the recommended changes include increasing level 2 and level 3 fines,
changing some violations from a level 1 to a level 2 category, and adding other
miscellaneous code violations.
He pointed out that corrective action notices do not include a fine. He stated he
occasionally waives fines based on unique circumstances and the program contains an
appeal process.
Council Member London stated higher citations may prevent recurring offenses.
Council expressed support for the recommended changes.
Mr. Sargent indicated the fines will be presented for consideration at the December 13
Council Meeting as part of the 2022 Fee Schedule.
2021 PERFORMANCE
MEASURES
Item 11.5
Mayor Hemken introduced for discussion item 11.2, Review 2020 performance
measures survey results.
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Mr. Kirk McDonald, city manager, relayed that the data was compiled by Brandon Bell,
community development assistant. He stated there were 663 responses, and the ratings
were similar to past years. He noted the ratings for the condition of county roads and
city roads both increased significantly (likely due to improvements at railroad
crossings). He stated 82% of respondents rated the new Civic Center Park, including
the new Aquatic Park, as either excellent or good.
Mr. McDonald stated the survey data will be incorporated in the 2022 budget
presentation and will be posted on the city’s website. He also noted a professional
survey is proposed for 2022.
PUBLIC WORKS SOIL
STORAGE BUILDING
(IMPROVEMENT
PROJECT NO. 1039)
Item 11.6
Mayor Hemken introduced for discussion item 11.6, Discuss next steps related to the
soil storage building at the Public Works Facility (Improvement Project No. 1039).
Mr. Bernie Weber, director of public works, stated the city engineer will provide the
latest recommendation for construction of the soil storage building at public works.
Mr. Dan Boyum, city engineer, explained that due to poor soils at the site, two options
for the soil storage building were discussed including the construction of oversized
slab footings or helical anchors, but both options were costly. He stated a different
approach is to construct a wood‐framed building versus a masonry block structure and
include an asphalt floor similar to the salt storage building. He stated the interior walls
would be precast versus poured in place concrete and the exterior would contain
engineered wood lap siding. He illustrated the proposed structure and stated the cost
of this type of building should be less expensive than the original plan for a masonry
building.
Mr. Weber stated staff will update Council on pricing after information is obtained
from the contractor.
2022‐2031 PAVEMENT
MANAGEMENT
PLAN
Item 11.7
Mayor Hemken introduced for discussion item 11.7, Update and discussion regarding
the 2022‐2031 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 34.7 miles of streets have been
improved of the entire 65 miles of local and MSA streets. He stated currently the city
has 3.76 miles or 5.8% rated as “poor condition” or worse. He stated the average
pavement ratings for local streets improved from 80.06 (2020) to 81.43 (2021). 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 16 years the water break trend has been declining as a result of focusing on
areas with extreme history of breaks. Mr. Boyum stated the plan contains projects and
associated costs for years 2022 through 2031. 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 schedule
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for local/lower traffic MSA streets. He stated maintenance improvements with seal coat
and fog seals would be completed at 5 and 8 years (no more than twice between
structural improvements). Mill and overlay and reclamation would be shifted 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.
Council Member London commented on the benefits of a 10‐year pavement
management plan. He noted it also provides a tool for residents.
Mr. McDonald stated the plan will be posted on the city’s website.
Council thanked staff for the presentation.
LONG‐TERM
FINANCIAL PLAN
Item 11.8
Mayor Hemken introduced for discussion item 11.8, Review updated draft long‐term
financial plan with Abdo.
Ms. Vicki Holthaus, Abdo, commented on the positive collaboration between the
pavement management plan and the long‐term financial plan.
Ms. Holthaus reported the 2021‐2031 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 $100,000 levy in 2023 to build reserves
for future capital outlay needs. A comprehensive CIP for this fund will be
proposed in March 2022.
City Hall Capital Fund 9202 may implement a $100,000 levy in 2023 to build
reserves for future building and major capital expenditure needs. A projected
$400,000 in unspent bond proceeds from the 2017A GO Bonds may be transferred
to the Public Works Facility Project.
Swimming Pool Capital Fund 9204 may implement a $100,000 levy in 2023 to build
reserves for future capital outlay 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 2031.
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 has planned average annual capital expenses of $654,526 over
the life of the long‐term plan.
Water Fund 9301 will receive a $1,500,000 payment from the Joint Water
Commission in 2023 to offset project costs related to the repainting of the south
water tower.
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.
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Street Light Fund 9305 plans to incur costs related to the Boone Signal Replacement
for $400,000.
Central Garage 9402 assumes transfers in of unspent bond proceeds from the
2017A GO Bonds, CARES funds and ARPA funds totaling $4,253,980 from 2021‐
2023.
Park and Pool Improvement Fund 9234 is assumed to transfer remaining funds out
of the fund on 12/31/21.
General Fund 9001 reflects the transfer out of $1,641,664 of Coronavirus Relief
Fund intergovernmental revenue in 2021 to the Central Garage Fund 9402.
No new debt issuance has been modeled in the long‐term plan.
Ms. Holthaus also reviewed the property tax projections, the city’s debt position (from
$51 million in 2020 to $10 million in 2031), and cash flow for street infrastructure
projects. She also illustrated cash flows for Central Garage Fund 9402 including fund
transfers.
Ms. Holthaus reviewed utility fund cash positions. She also reviewed enterprise fund
cash position.
Ms. Susan Rader, director of parks and recreation explained that a 2022 CIP item for
the ice arena is replacement of dasherboards and glass at the north rink. She stated the
item was budgeted at $210,000 which will be insufficient. She emphasized the
importance of getting materials ordered as soon as possible and stated her intention of
placing the item on the December 13 Council Meeting agenda.
Lastly, Ms. Holthaus illustrated the city’s tax capacity rates and debt per capita.
Council thanked Ms. Holthaus for the report.
CHANGE ORDER
ABDO FINANCIAL
SOLUTIONS
Item 11.9
Mayor Hemken introduced for discussion item 11.9, Discuss change order proposal
with Abdo Financial Solutions for consultation of FEMA and ARPA funding.
Mr. Kirk McDonald, city manager, explained that the city received CARES funding last
year and a change order was approved with Abdo in September of 2020.
He stated over the next two years the city will be receiving $2,195,235 in American
Rescue Plan Act (ARPA) funds and possibly additional FEMA funds. He explained the
city has a three‐year contract in place with Abdo Financial Solutions for years 2021‐23
for financial consultation of routine city operations. Abdo has presented a change order
of $25,000 to cover the additional consultation work through December 31, 2024 that is
required for consultation of the city’s FEMA and ARPA funding. The change order can
be paid for with ARPA funds.
Council expressed support for the change order. Mr. McDonald indicated it would be
placed on the November 22 agenda for consideration.
2022 BUDGETS
Item 11.10
Mayor Hemken introduced for discussion item 11.10, Continue discussion on 2022
budgets.
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Mr. Kirk McDonald, city manager, requested feedback from Council regarding the
proposed powerpoint document on the 2022 budget for the December 6 budget
meeting. He stated the presentation contains information regarding utility rates,
performance measures and tax levy information. He stated information from the
county assessor was recently received and has been distributed tonight.
Council expressed support for the presentation.
2022 COUNCIL AND
COMMISSION
APPOINTMENTS
Item 11.11
Mayor Hemken introduced for discussion item 11.11, Discuss council and commission
appointments for 2022.
Ms. Valerie Leone, City Clerk, stated there are several persons on city commissions
with terms expiring December 31 who may be interested in being considered for re‐
appointment. She indicated a resolution will be prepared for adoption at the December
13 council meeting, and vacancies will be advertised.
Mr. McDonald noted based on rotation, it is Council Member Hoffe’s turn to serve as
mayor pro tem in 2022.
Mayor Hemken commented on the large number of vacant seats on the planning
commission and encouraged Council to direct any interested persons to the city clerk
for an application.
ADJOURNMENT The meeting was adjourned at 8:34 p.m. as there was no further business to come
before the Council at its work session.
Respectfully submitted,
Valerie Leone, City Clerk