Loading...
11 14 22 City Council MinutesNew Hope City Council November 14, 2022 Page 1 City of New Hope 4401 Xylon Avenue North New Hope, Minnesota 55428 City Council Minutes November 14, 2022 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 Tim Hoyt, Acting City Manager Jeff Alger, Community Development Specialist Susan Rader, Director of Parks & Recreation Jeff Sargent, Director of Community Development Vicki Thompson, Administrative Specialist Bernie Weber, Director of Public Works Stacy Woods, City Attorney APPROVAL OF MINUTES Motion was made by Council Member Hoffe, seconded by Council Member Elder, to approve the regular meeting minutes of October 24, 2022. 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. PRESENTATION: 2022 MORRIS LEATHERMAN SURVEY Item 5.1 Mayor Hemken introduced for discussion Item 5.1, Presentation of 2022 city survey responses by Morris Leatherman Company. Mr. Peter Leatherman of The Morris Leatherman Company presented the 2022 city survey results of the community-wide survey that was conducted this summer involving 400 households. He stated the random samplings yield results projectable to the city’s population within five percent. He summarized the results and noted the highest percentages in the “serious issues” included growth, high taxes, rising crime, and redevelopment. Overall very positive responses were given for police, fire, building inspection, park maintenance, recreational programs, and street snowplowing. Ninety percent of the responses indicated the city is headed in the right direction. Mayor Hemken thanked Mr. Leatherman for the report. New Hope City Council November 14, 2022 Page 2 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. Tim Hoyt, acting city manager, reviewed the consent items. FINANCIAL CLAIMS Item 6.2 Approval of financial claims through November 14, 2022. RESOLUTION 2022-118 Item 6.4 Resolution approving revolving loan fund policy. MOTION Item 6.5 Motion approving appointment of Malloy, Montague, Karnowski and Radosevich (MMKR) to Perform 2022 City Audit. 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. MINNESOTA INVESTMENT FUND PROGRAM APPLICATION FOR PADAGIS US LLC Item 7.1 Mayor Hemken introduced for discussion Item 7.1, Resolution supporting city’s application as a legal sponsor for Minnesota Investment Fund Program Application for Padagis US LLC. Mr. Jeff Alger, community development specialist, indicated the public hearing is to consider a request from Padagis for the city to serve as a legal sponsor for a Minnesota Investment Fund (MIF) program loan, up to the amount of $980,000, through the Minnesota Department of Employment and Economic Development for Padagis US LLC. He explained Padagis owns and operates a manufacturing site in New Hope at 3940 Quebec Avenue North. A revolving loan fund policy was approved as part of the consent agenda. If the MIF loan were to be approved, Padagis would receive an interest free repayable loan of up to $980,000 that would be used to add approximately $5,000,000 in new manufacturing machinery and equipment and 60 new employees at the New Hope site. Currently, Padagis is New Hope’s sixth largest employer, with approximately 315 employees. Wages for the 60 new jobs would range from $27 to $96 an hour plus full benefits for all team members. The $5,000,000 of investment in new machinery and equipment would increase the long-term viability of the New Hope plant due to modernized equipment and increased capacity that positions it well to serve growing market demand. MIF financing at 0% interest is considered an important factor in the company’s decision to expand at this location. The MIF loan program is intended to provide financing to help add new workers and retain high-quality jobs on a statewide basis. The focus is on industrial, manufacturing, and technology-related industries to increase the local and state tax base and improve economic vitality statewide. All projects must meet New Hope City Council November 14, 2022 Page 3 minimum criteria for private investment, number of jobs created or retained, and wages paid. At least 50% of total project costs must be privately financed through owner equity and other lending sources. It is required that a local municipality sponsor the MIF loan via resolution of support, and the local unit of government must hold a public hearing on the request. DEED does not provide money directly to businesses. DEED and the local government unit enter into an agreement that stipulates that the funds must be used to assist the specified business. The funds are then loaned to the business by the local unit of government. The loan would be repaid over ten years. The city has the option of keeping 40% of the repayments, up to $100,000, which could be administered to other businesses if the city follows the same project selection process and expenditure requirements that DEED utilizes when administering MIF loans. Mr. Alger explained that serving as a legal sponsor for the MIF loan does not require investing any funds for the loan, as the city serves as a pass-through entity and there is minimal risk to the city as the loan funds are provided by DEED. There are other expenses involved with the request, such as establishing a revolving loan fund policy, advertising for the public hearing, and utilizing the city’s legal and financial consultants to review the company’s financial records, the application, legal documents, and contract. City staff would also be responsible for completing a portion of the application, completing annual reports, and coordinating the request. Staff believes the expenses are a worthwhile investment as the city’s Comprehensive Plan supports the in-place expansion of existing businesses and bringing additional jobs to the area. Mr. Alger stated should the business not meet the conditions of the loan, the city would be responsible for attempting to recuperate any funds owed. If the business were to close or the city were unable to recuperate the funds, the city would not be required to pay DEED for any portion of the loan. Mr. Alger noted the City Council discussed the request from Padagis for the city to serve as a legal sponsor for a Minnesota Investment Fund (MIF) program loan, up to the amount of $980,000, through the Minnesota Department of Employment and Economic Development (DEED) at the October 17, 2022, work session and expressed support. Staff recommends that the City Council conduct the public hearing and approve a resolution supporting the city’s application as a legal sponsor for a MIF program loan, up to the amount of $980,000, through DEED for Padagis US LLC. He indicated representatives from Padagis and DEED are in attendance if Council has any questions. Ms. Deborah Sullivan, Vice President of Operations for Padagis US LLC, was recognized. She indicated the loan will provide reinvestment in the company to upgrade equipment and increase the number of jobs. New Hope City Council November 14, 2022 Page 4 Council Member London commented that Padagis focuses on generic prescriptions. He inquired whether the company will be exploring biosimilar prescriptions. Ms. Sullivan indicated the company intends to continue with the generic business and the growth will bring in opportunities available in-house. She stated the company does not plan to generate new research and development opportunities. There was no one present in the audience desirous of addressing the public hearing. Mayor Hemken thanked Padagis for remaining and investing in New Hope. CLOSE HEARING Item 7.1 Motion was made by Council Member Isenberg, seconded by Council Member Hoffe, to close the public hearing. All present voted in favor. Motion carried. RESOLUTION 2022-119 Item 7.1 Council Member Isenberg introduced the following resolution and moved its adoption: “RESOLUTION SUPPORTING CITY’S APPLICATION AS A LEGAL SPONSOR FOR MINNESOTA INVESTMENT FUND PROGRAM APPLICATION FOR PADAGIS US LLC.” The motion for the adoption of the foregoing resolution was seconded by Council Member Elder, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Isenberg, London; and the following voted against the same: None; 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. NEW HOPE ICE ARENA SOUTH RINK (IMPROVEMENT PROJECT NO. 1092) Item 8.1 Mayor Hemken introduced for discussion Item 8.1, Resolution authorizing the appropriation of funds in the amount of $1,065,001 to replace the floor, dasher boards and glass in the south rink at the New Hope Ice Arena (Improvement Project No. 1092). Ms. Susan Rader, director of parks and recreation, stated the Ice Arena is located at 4949 Louisiana Avenue North. The south rink was built in 1996 and the existing boards and glass were reset in 2016 due to failing anchors. The normal life expectancy of a hockey rink floor is 20-25 years, and a board/glass system is 20 years. The replacement project was initially identified several years ago. Ms. Rader described the need for replacement of the floor, dasher boards and glass in the south rink at the ice arena. She illustrated the existing conditions. She stated the base project will include replacement of the 86’x201’ concrete floor system including replacement of the piping, insulation, vapor barrier, and concrete. It will also include replacement of the existing dasher boards and glass, including the player, penalty, and timekeeper boxes. The new board system will be similar to the board system that currently exists, with 6-foot-tall glass around the entire rink. Ms. Rader explained several alternate bids were identified, and staff is recommending most of the alternates be included in the project. The alternates include painting of the concrete floor with white rink sealer and markings, removal of the existing dasher system and a trade-in value, the addition of a backer panel New Hope City Council November 14, 2022 Page 5 along the west side of the rink that is adjacent to the walkway, installation of a FlexPost shielding system, a powder coat on the support faceplates and the installation of 25 advertising panels. She stated All-American Arena Products is able to provide this replacement of the floor, dasher boards/glass and alternates through the Sourcewell Cooperative Purchasing Program (Contract #120320) for $1,065,001. All-American Arena Products and their sub-contractors have an excellent reputation and are well- known in the field of ice arena products. Staff have worked with the sub- contractors on numerous occasions with good results. She stated the project would start in mid-March and is expected to take approximately three months. Ms. Rader indicated the proposed project is included in the 2023 CIP for the Ice Arena Fund, and the project budget of $1,200,000 was shared with the Council during 2022 CIP planning and 2023 budget meetings. The funding source will be the Ice Arena Fund, however staff and Abdo recommend an interfund loan from the Temporary Financing Fund, which will be paid back over 15 years. She stated a resolution will be brought forward to the City Council at the conclusion of the project (in June or July of 2023). Ms. Rader stated she and Recreation Facilities Manager Mark Severson are available to answer any questions. Council Member London inquired of the terms of the interfund loan. Ms. Rader stated it will be a 15-year loan at zero percent interest similar to other recent inter- fund loans. RESOLUTION 2022-120 Item 8.1 Council Member Elder introduced the following resolution and moved its adoption: “RESOLUTION AUTHORIZING THE APPROPRIATION OF FUNDS IN THE AMOUNT OF $1,065,001 TO REPLACE THE FLOOR, DASHER BOARDS AND GLASS IN THE SOUTH RINK AT THE NEW HOPE ICE ARENA (IMPROVEMENT PROJECT NO. 1092).” 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, London; and the following voted against the same: None; 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. REVOCATION OF RENTAL PROPERTY REGISTRATION PERMIT 3840 BOONE AVE N Item 10.1 Mayor Hemken introduced for discussion Item 10.1, Resolution establishing findings of fact and conclusions of law relating to revocation of rental property registration permit for Ashton Homes LLC and Sekou AM Dukuly for having a third instance of disorderly behavior at the property located at 3840 Boone Avenue North. Mr. Jeff Sargent, director of community development, explained a public hearing to consider revocation of the rental property registration was conducted on October 24, 2022. He stated following testimony it was determined that the property owner had violated section 3-31(i) of the city code by allowing tenants of the property to engage in three or more acts of disorderly behavior at the property within a 12-month period. Following the public hearing of October 24, 2022, staff New Hope City Council November 14, 2022 Page 6 was directed to prepare a resolution revoking the rental registration permit for Ashton Homes, LLC, as the owner of the property at 3840 Boone Avenue North and prohibiting the owner from re-applying for another rental registration permit for 3840 Boone Avenue North or any other property in the city for a period of three years. RESOLUTION 2022-121 Item 10.1 Council Member Elder introduced the following resolution and moved its adoption: “RESOLUTION ESTABLISHING FINDINGS OF FACT AND CONCLUSIONS OF LAW RELATING TO REVOCATION OF RENTAL PROPERTY REGISTRATION PERMIT FOR ASHTON HOMES LLC AND SEKOU AM DUKULY FOR HAVING A THIRD INSTANCE OF DISORDERLY BEHAVIOR AT THE PROPERTY LOCATED AT 3840 BOONE AVENUE NORTH.” 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, London; and the following voted against the same: None; 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. PURCHASE OF EQUIPMENT Item 10.2 Mayor Hemken introduced for discussion Item 10.2, Resolution authorizing the purchase of equipment and appropriation of funds in the amount of $322,097.58 for the purchase of a 2023 Mack cab and chassis, dump body and snow removal equipment. Mr. Bernie Weber, director of public works, stated staff is recommending purchase of a 2023 Mack cab and chassis, dump body and snow removal equipment as proposed in the 2022 Capital Improvement Program (CIP). He stated the 2023 Mack dump truck would replace a 2013 International dump truck (vehicle #7) currently used by street department staff. This vehicle is used for primarily for snow/ice removal. Rather than selling the 2013 International dump truck, it is recommended the 2013 International be utilized by the New Hope Public Works and a 2006 Sterling dump truck (#20) Public Works currently uses be sent to auction. Mr. Weber stated the purchase would be made through the state’s cooperative purchasing venture (CPV). The total for purchase of the Mack cab and chassis is $135,732.00 plus sales tax of $8,822.58 for a total of $144,554.58. The dump body, ancillary equipment, set-up and installation costs are estimated at $177,543.00, bringing the total cost for the dump truck to $322,097.58. The current vehicle replacement fund has $311,178 dedicated for this vehicle replacement, leaving a shortfall of $10,919.58 which could be supplemented by the equipment replacement fund. Council Member Elder inquired of potential delays in delivery. Mr. Weber indicated the vehicle is scheduled to be delivered before the end of 2023. Council Member London inquired of the value of the trade-in. Mr. Weber stated recent auction prices have been high, and it is anticipated the 2006 vehicle will be sold in excess of $10,000. New Hope City Council November 14, 2022 Page 7 Mayor Hemken complimented the public works crew for efficiently handling street snowplowing after the recent snowfall. RESOLUTION 2022-122 Item 10.2 Council Member Elder introduced the following resolution and moved its adoption: “RESOLUTION AUTHORIZING THE PURCHASE OF EQUIPMENT AND APPROPRIATION OF FUNDS IN THE AMOUNT OF $322,097.58 FOR THE PURCHASE OF A 2023 MACK CAB AND CHASSIS, DUMP BODY AND SNOW REMOVAL EQUIPMENT.” The motion for the adoption of the foregoing resolution was seconded by Council Member Hoffe, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Isenberg, London; and the following voted against the same: None; 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 7:45 p.m. Respectfully submitted, Valerie Leone, City Clerk