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010923 City Council Meeting Packet    NEW HOPE CITY COUNCIL  MEETING AGENDA  January 9, 2023  7:00 p.m.  City Hall – Council Chambers  4401 Xylon Avenue North    Mayor Kathi Hemken  Council Member John Elder  Council Member Andy Hoffe  Council Member Michael Isenberg  Council Member Jonathan London    The City Council wants and encourages citizen participation at Council Meetings. Your input and  opinions count and are valuable. You are encouraged to bring forth your comments and issues at  the appropriate point on the agenda.     A 15‐minute maximum Open Forum is held at the beginning of each Council Meeting. At this time  any person may address the Council on any subject pertaining to City business not listed on this  agenda or scheduled as a future agenda item. The Council requests that you limit your presentation  to 3 minutes. Anyone wishing to address the City Council on a particular item should raise their  hand and be recognized by the Mayor. Approach the podium and speak into the microphone by  first stating your name and address. Also, please record your name on the roster at the table near  the door so that your name will be spelled correctly in the minutes.    Individuals should not expect the Mayor or Council to respond to their comments tonight; Council  may refer the matter to staff for handling or for consideration at a future meeting. You are welcome  to contact the city clerk at 763‐531‐5117 after the council meeting.    COUNCIL MEETING BROADCASTS AND STREAMING  Government Access channel 16 programming includes live/taped meeting replays  Live on‐line meetings and past meetings on‐demand are available through www.nwsccc.org.    www.newhopemn.gov New Hope Values and Vision City Mission Strong local government that is proactive in responding to the community needs and issues by delivering quality public service to all city residents, businesses, property owners, and organizations in a prudent and e cient manner. Values Excellence and Quality in the Delivery of Services We believe that service to the public is our reason for being and strive to deliver quality services in a highly professional and cost-e ective manner. Fiscal Responsibility We believe that fi scal responsibility and the prudent stewardship of public funds and city assets is essential if residents are to have confi dence in government. Ethics, Integrity and Professionalism We believe that ethics, integrity, and professionalism are the foundation blocks of public trust and confi dence and that all meaningful relationships are built on these values. Respect for the Individual We believe in the uniqueness of every individual, and welcome, appreciate, and respect diversity and the di ering of opinions. Open, Honest, and Respectful Communication We believe that open, honest, and respectful communication is essential for an informed and involved citizenry and to foster a positive environment for those interacting with our city. Cooperation and Teamwork We believe that the public is best served when all work cooperatively. Visionary Leadership and Planning We believe that the very essence of leadership is to be responsive to current goals and needs, and visionary in planning for the future. Vision e city is a great place to grow as a family, individual, or business. All within our city are safe and secure. Essential services will be those that promote a safe and healthy environment for all residents. Essential services and programs will be enhanced and streamlined, and will be provided in an economical manner and with measurable results. e city views residents as its greatest asset and seeks their input and participation. e city will meet the communication needs of citizens, elected o cials, and city sta . Strategic Goals e city will maintain and improve its infrastructure (water distribution, storm water, sewer, roads, parks, lighting, and city facilities). e city will use frugal spending and resourceful fi nancial management to maintain its fi scal health. e city will encourage maintenance, redevelopment, and reinvestment of existing properties to improve or enhance its tax base. e city will provide core services with a professional sta who are equipped with the necessary tools and equipment and given necessary direction. e city will facilitate and improve communications to promote e ective intergovernmental cooperation between sta , citizens, and Council. Adopted by the New Hope City Council, August 2006 Reaffirmed by the New Hope City Council, February 2022 CITY COUNCIL MEETING City Hall, 4401 Xylon Avenue North Monday, January 9, 2023 7:00 p.m. 1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE – January 9, 2023 2. ROLL CALL 2.1 Oath of Office for Council Member John Elder and Council Member Jonathan London 3. APPROVAL OF MINUTES: • Work Session Meeting Minutes – November 21, 2022 • Regular Meeting Minutes – November 28, 2022 • Special Council Meeting Minutes - December 5, 2022 • Regular Meeting Minutes – December 12, 2022 • Work Session Meeting Minutes – December 19, 2022 4. OPEN FORUM 5. PRESENTATIONS 6. CONSENT BUSINESS 6.2 Approval of financial claims through January 9, 2023 6.4 Resolution appointing city attorney 6.5 Resolution appointing Dan Boyum of Stantec Consulting Services Inc. as city engineer for sewer, water, street, and storm sewer projects and general work 6.6 Resolution appointing New Hope – Golden Valley Sun Post as official newspaper for city of New Hope 6.7 Resolution designating Wells Fargo as depository for payroll account and general or special funds of the city of New Hope 6.8 Resolution designating depositories for funds of the city of New Hope relative to investments 6.9 Resolution delegating authority to the city manager to pay claims prior to city council approval and make electronic transfers for the payment of claims for 2022 6.10 Resolution appointing city manager as director to the HRG Board for a term expiring December 31, 2023 6.11 Appointment of assistant weed inspector for 2023 6.12 Approval of April 13, 2023, as date for the Local Board of Appeal and Equalization Meeting 6.13 Resolution Adopting the Revised City of New Hope Section 125 Plan 6.14 Resolution approving the State of Minnesota Agency Agreement between the Department of Transportation and the city of New Hope for acceptance of federal aid funds for transportation related project 7. PUBLIC HEARING 8. DEVELOPMENT AND PLANNING 9. PETITIONS AND REQUESTS 10. ORDINANCES AND RESOLUTIONS 10.1 Resolution appointing a council member as mayor pro tem for 2023 10.2 Ordinance No. 23-01, An ordinance amending section 8-14 of the New Hope City Code related to Residential Garbage and Refuse Collectors Licensing Regulations, Terms and Conditions 11. UNFINISHED AND ORGANIZATIONAL BUSINESS 12. OTHER BUSINESS 12.1 Exchange of communication between members of the city council 13. ADJOURNMENT Memorandum          To:  New Hope City Council  From: Tim Hoyt, Acting City Manager  Date: January 5, 2023  Subject: Agenda Items for Monday, January 9, 2023     Many of the items on this agenda are routine first‐of‐the‐year appointments.    Open Forum  There may be persons in attendance commenting about the group home rental registration revocation.    Items 6.1, 6.2, and 6.3  Item 6.1 – there are no new business license requests.   Item 6.2 ‐ involves routine financial claims.   Item 6.3 – there are no new liability claims to report.    Item 6.4  The city utilizes the consulting firm of Jensen Sondrall Persellin & Woods for legal services. This item  re‐appoints Steven Sondrall and Stacy Woods as city attorneys. There is no rate increase proposed for  2023. It should be noted that the city attorney does not charge for attending council meetings and has  been attending work sessions since 2012 when requested by the city manager at no additional charge. I  recommend re‐appointment.    Item 6.5  This item approves the re‐appointment of Dan Boyum of Stantec Consulting Services as city engineer for  2023. The proposed rate schedule for 2023 reflects an average increase of 3 percent for Stantec team member  rates. Stantec does not charge the city for the city engineer’s attendance at council meetings and charges a flat  fee of $100 for attendance work sessions (instead of an hourly fee). I support the re‐appointment.    Items 6.6, 6.7, 6.8, 6.9, 6.10 and 6.11  The first three items deal with annual appointments of the city’s local newspaper and financial  institutions. The Sun Post’s publication rate is increasing slightly for 2023. Staff and Abdo are  recommending the same financial institutions for 2023. Item 6.9 delegates authority to the city manager  to pay financial claims prior to city council approval and make electronic funds transfers. Item 6.10 is  the annual appointment of the city manager to the HRG Board. Item 6.11 appoints the city forester as the  city’s assistant weed inspector (by law, the official weed inspector is the Mayor). I recommend approval of  the appointments.   Page 2  Item 6.12  The city is asked to set its 2023 date for the local board of appeal and equalization meeting. The hearing must  be held between April 1 and May 31. Staff recommends Thursday, April 13, as the initial date and April 24  (6:30 pm prior to a regularly scheduled council meeting) as the reconvened meeting date (if one is necessary).  The law requires that at least one voting member has completed the training within the past four years.  Council Members Elder, Isenberg and London meet the criteria.     Item 6.13  The city has had a Section 125 plan in place since 1987, and it has been updated to reflect current Internal  Revenue Service regulations. The plan allows employees with tax‐advantaged benefits, including a Health  Savings Account (HSA), Flexible Spending Account (FSA), and the ability to use pre‐tax dollars for health,  dental and life insurance premiums. Council is asked to adopt the resolution approving the revised plan.  Director Johnson and I recommend approval.    Item 6.14  Approval of the resolution permits Mn/DOT to act as the city’s agent in accepting federal funds for eligible  transportation projects. Mn/DOT accepts the federal grant funds, administers the dispersal request from the  city, and distributes the funds to the city. The agreement replaces the agency’s former agreement adopted in  2018. I recommend approval.    Item 10.1   This resolution names the mayor pro tem for the year. This position is usually rotated among council  members, and it is Council Member Isenberg’s turn in 2023. The mayor has discussed the position with  Council Member Isenberg, and he is agreeable to serve. The Council should consider nominations and  pass a motion appointing a council member to the role of mayor pro tem for 2023.    Item 10.2  The ordinance amendment will limit the number of residential garbage haulers to five. During the  business license renewal process, Republic informed the city of its acquisition of Randy’s Sanitation.  Council previously agreed to reduce the number of licenses through attrition. City Clerk Leone and I  recommend approval.    Item 12.1  Mayor Hemken will review the list of upcoming events/meetings.      If you have any questions regarding items in the agenda packet, I would appreciate a call before the  meeting so that I can research any issues and be prepared to respond at the meeting.  I:\RFA\City Manager\2023\Q‐oath council.docx   Request for Action  January 9, 2023    Approved by: Tim Hoyt, Acting City Manager  Originating Department: City Manager  By: Valerie Leone, City Clerk    Agenda Title  Oath of Office for Council Member John Elder and Council Member Jonathan London  Requested Action  Prior to exercising any powers or duties, officials must take and sign an oath of office (Minnesota Statutes 358.05).  The Oath of Office will be administered by the City Clerk at the beginning of the meeting.  Background  At the election of November 8, 2022, John Elder and Jonathan London were re‐elected to the New Hope City  Council for four‐year terms expiring December 31, 2026.     Agenda Section Roll Call Item Number  2.1  City Council Work Session November 21, 2022  Page 1   City of New Hope  4401 Xylon Avenue North  New Hope, Minnesota 55428    City Council Minutes  Work Session Meeting  November 21, 2022 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:    Tim Hoyt, Acting City Manager  Jeff Alger, Community Development Specialist  Dan Boyum, City Engineer  Erin Enstad, Abdo Financial Solutions  Vicki Holthaus, Abdo Financial Solutions  Rich Johnson, Director of HR/Admin. Services  Valerie Leone, City Clerk  Shawn Markham, Forester/Contract Manager  Susan Rader, Director of Parks & Recreation  Jeff Sargent, Director of Community Development  Bernie Weber, Director of Public Works  Stacy Woods, City Attorney     Also present: Ann Ackerman, Stantec  Joel Nelson, WMFR District    WMFRD UPDATE  Item 11.1    Mayor Hemken introduced for discussion item 11.1, Update from West Metro Fire‐ Rescue District.    Mr. Joel Nelson, assistant chief of administration for WMFR District, was recognized.  He reported there were 852 calls for service for New Hope from January 1 through  September 30, 2022. Mr. Nelson reported on recent public events, training, fire  prevention activities, update on fire truck delivery, the recent firefighter recruitment  process and staff departures and retirements.     Council Member Isenberg questioned the composition of the firefighter applicants. Mr.  Nelson indicated there were about 40 applicants that were narrowed down to 15. He  stated of the 15 approximately 30% are non‐Caucasian. He noted the fire chief and fire  district staff support Diversity, Equity and Inclusion similar to the cities of New Hope  and Crystal.    Council thanked Mr. Nelson for the report.    City Council Work Session November 21, 2022  Page 2   EMERALD ASH  BORER UPDATE  Item 11.2    Mayor Hemken introduced for discussion item 11.2, Discussion of New Hope’s  Emerald Ash Borer program including an update on efforts made in 2022 and the  recommended renewal of the contract with the city’s tree care company in 2023.    Mr. Shawn Markham, forester/contract manager, stated the Minnesota Department of  Agriculture has deemed New Hope and the rest of Hennepin County as “generally  invested”. He explained this designation signifies the focus of Emerald Ash Borer  management will shift from a prevention and slowing of the Emerald Ash Borer to a  management plan with a focus on sanitation/removal and safety.    Mr. Markham stated the city allocated a total of $625,000 for trees. During the year the  city removed 393 Ash trees and 12 non‐ash trees in city right‐of‐way and 93 Ash trees  from city parks. He noted non‐ash species were removed due to a hazardous condition  or severe decline in tree health. He noted many more trees in boulevards and city parks  are scheduled to be removed yet this year.     He stated a total of 203 trees were planted in the city in 2022. He stated many trees  were purchased through a county grant, and there were 20 trees donated by Hennepin  County due to a delayed planting project initiated by the county.    Discussion ensued regarding the costs for treating Ash trees on an every other year  basis and the cost for tree removal.    Parks and Recreation Director Susan Rader and Mr. Markham spoke favorably  regarding the city’s relationship with Bratt/Heartwood Tree Surgeons (formerly Tim’s  Tree Service) and pointed out the current contract expires in March, 2023. Director  Rader stated tree services are considered a professional service and bids/quotes are not  required. She stated unless there are objections from Council, staff will present a new  contract in 2023 with Bratt/Heartwood Tree Surgeons.    Council thanked staff for the update.     2023‐2032 PAVEMENT  MANAGEMENT  PLAN  Item 11.3    Mayor Hemken introduced for discussion item 11.3, Update and Discussion regarding  the 2023‐2032 Pavement Management Plan.    Mr. Boyum, city engineer, stated the plan contains projects and associated costs for  years 2023 through 2032. 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 reviewed the pavement condition index (PCI) ratings for the streets. He  stated since 2013 approximately 36.10 miles of streets have been improved of the city’s  65 miles of local and MSA streets. He explained only 3.17 miles (or 4.9% of streets) are  rated in poor condition or worse. It was noted that seal coat and fog seal applications  have extended the life span of streets.     Council thanked staff for the presentation.    City Council Work Session November 21, 2022  Page 3   LONG‐TERM  FINANCIAL PLAN  Item 11.4    Mayor Hemken introduced for discussion item 11.4, Review updated draft long‐term  financial plan with Abdo.    Ms. Vicki Holthaus, Abdo, stated a capital improvement plan for Information  Technology was added this year after completion of the long‐term CIP in March. She  stated the assumption for franchise fees revenue in the street infrastructure fund was  increased from $440,000 to $705,000 based on the rate increase to be implemented in  2023. Ms. Holthaus stated levies of $100,000 were considered for the 2023 budget cycle  for the fire capital fund, city hall capital fund and swimming pool capital fund but  were not implemented. These will be reintroduced in the 2024 budget cycle.     Ms. Holthaus provided highlights of the long‐term financial plan taking into  consideration trends in enterprise fund revenues and expenses along with  programmatic change that have been proposed for the 2023 budget including the golf  superintendent and a water maintenance position. She stated the plan aligns with the  ten‐year pavement management plan. The tax rate is projected to increase from 57 to  60 percent over the life of the ten‐year plan. Over the duration of the plan, the total  cash position of the city is projected to increase from $47 million to $75 million, and the  total debt outstanding is projected to decrease from $46 million to $7 million. There is  no new debt issuance modeled in the plan.     Council Member London expressed concern that expenditures may be outpacing  revenue growth. He challenged directors to determine methods to fund capital without  increasing the levy.    Ms. Holthaus commented that enterprise funds may generate more revenue than  expenditures.    Council Member London inquired of scenarios if property values decrease by ten  percent.    Ms. Holthaus stated Abdo can prepare an analysis if requested by Council.    2023 BUDGET  Item 11.5    Mayor Hemken introduced for discussion item 11.5, Review public hearing  presentation for proposed 2023 budget.    Mr. Tim Hoyt, acting city manager, stated the public hearing for the 2023 budget is  scheduled for December 5. He requested feedback from Council regarding the  proposed powerpoint presentation.    Council Member London recommended adding the rating scale for the insurance  industry rating of fire services and to modify the tax rate slide. Ms. Holthaus indicated  the changes will be made by elaborating on the insurance rating and illustrating the  tax rate information for the city only.        DRAFT THC  ORDINANCE  Item 11.6    Mayor Hemken introduced for discussion item 11.6, Discussion regarding draft  tetrahydrocannabinol (THC) ordinance and setting annual license fee.    Mr. Jeff Sargent, director of community development, presented the draft ordinance to  regulate the sale of consumable THC products. He stated a new law was enacted at the  City Council Work Session November 21, 2022  Page 4   end of the 2022 legislative session that allows certain edible and beverage products  infused with tetrahydrocannabinol to be sold. He stated there can be no more than five  milligrams of THC per serving and a maximum of 50 milligrams per package. Mr.  Sargent noted the law does not specifically limit where edible cannabinoids products  can be sold, but they are prohibited from off sale liquor stores. He stated staff  recommends setting the license fee at $500.     Council supported adoption of the ordinance and implementing a cap of 20 licenses.     Mr. Sargent indicated the ordinance will be presented at a future council meeting.    PERFORMANCE  MEASUREMENT  REPORT AND  SMART GOALS   Item 11.7    Mayor Hemken introduced for discussion item 11.7, Update on Performance  Measurement Report and SMART goals.    Mr. Jeff Alger, community development specialist, reviewed the 2022 Performance  Measurement Report and SMART goals document that contains data of 2018‐2021. He  reported the SMART goals are generally on track. Mr. Alger stated information from  this year’s professional community survey will be included in next year’s report.     Council accepted the report and complimented Mr. Alger for his work. They  authorized posting the document on the city’s website.    ECONOMIC  DEVELOPMENT  REPORT UPDATE  Item 11.8    Mayor Hemken introduced for discussion item 11.8, 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.     Mr. Alger noted the report was utilized in 2017 when bonds were issued for the new  police station/city hall construction project, in 2019 when bonds were issued for the  swimming pool complex, and in 2021 for refinancing of ice arena conservation bonds.  He reviewed the updates that were made to the 2022 report.    Council Member London asked whether the city tracks vacancies of commercial  properties. Staff responded that the city has a document posted on the website that  lists vacant space and leasing information.    Council accepted the report and supported posting it on the city’s website.    MOU  CONTINUATION  Item 11.9    Mayor Hemken introduced for discussion item 11.9, Discussion regarding  continuation of Memorandum of Understanding between Tim Hoyt and the City of  New Hope for Director of Police and Acting City Manager.    Mr. Rich Johnson, director of administrative services/IT, was recognized. He stated the  memorandum of understanding with Hoyt expires December 1, 2022. He indicated the  mayor inquired of continuing the arrangement on a permanent basis. Mr. Johnson  pointed out the police pension plan is different from the coordinated plan, and Hoyt  City Council Work Session November 21, 2022  Page 5   would like to continue in the police pension plan. He stated he spoke with staff from  PERA and the League of Minnesota Cities regarding the unique position held by Hoyt.  He stated PERA indicated the city would need to adopt a resolution addressing the  dual role and that Hoyt’s police duties comprise at least 51% of the position.     Mr. Johnson stated the police department currently has a chief and two captains. He  stated a reorganization of the police department could occur by elevating one captain  to a deputy chief to handle day‐to‐day operations. He explained that Abdo confirmed  the city could realize a cost savings of approximately $150,000 with a dual city  manager/police chief, a deputy chief and one captain instead of a traditional city  manager. He stated it is imperative to consider what is best for the city.     Council Member Elder commented that many metro police departments have a deputy  chief structure.    Mr. Johnson noted there are cities with employees holding dual roles for fire and police  chief.    Discussion ensued regarding the option of seeking external candidates.     Mayor Hemken stated the city has a capable individual with a proven track record.  She recommended extending the MOU for two months to continue discussions. She  asked staff to prepare various scenarios and costs.     Council expressed support for extending the current MOU to February 1, 2023, to allow  time to explore options.    ADJOURNMENT The meeting was adjourned at 8:56 p.m. as there was no further business to come  before the Council at its work session.    Respectfully submitted,     Valerie Leone, City Clerk    New Hope City Council  November 28, 2022  Page 1   City of New Hope  4401 Xylon Avenue North  New Hope, Minnesota 55428    City Council Minutes November 28, 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    Brandon Bell, CD Coordinator/Management Analyst  Dave Johnson, Police Captain  Rich Johnson, Director of HR/Admin. Services  Valerie Leone, City Clerk  Jeff Sargent, Director of Community Development  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 work session meeting minutes of October 17, 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.  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. Jeff Sargent, community development director,  reviewed the consent items. Items 6.5 and 6.6 were removed for discussion.    FINANCIAL CLAIMS  Item 6.2    Approval of financial claims through November 28, 2022.  RESOLUTION 2022‐123  Item 6.4    Resolution designating polling places in the city of New Hope.  New Hope City Council  November 28, 2022  Page 2   MOTION  Consent Items  Motion was made by Council Member Elder, seconded by Council Member Hoffe,  to approve Consent items 6.2 and 6.4. All present voted in favor. Motion carried.    CONSENT ITEMS  REMOVED FOR  DISCUSSION  Item 6.5    Mayor Hemken introduced for discussion Item 6.5, Resolution extending the  Memorandum of Understanding between Tim Hoyt and the City of New Hope for  Director of Police and Acting City Manager until February 1, 2023.    Council London requested more information for the public’s benefit regarding the  options for the city manager position and the two‐month extension of the current  memorandum of understanding (MOU).    Council Member Elder indicated Hoyt’s MOU is effective through December 1,  2022, and an extension until February 1, 2023, will allow the City Council time to  make a decision on the city manager appointment. He agreed it is necessary to  determine whether a savings would be realized by reorganization and having  Hoyt continue serving in a dual role of police chief and city manager.    Mr. Rich Johnson, director of HR/administrative services, explained the Council  held a discussion at the November 21 work session regarding Hoyt’s service as  acting city manager. He stated Hoyt has been serving as police chief/acting city  manager since June 1 and if he is appointed to continue the dual role, the savings  is projected at $150,000 annually. He stated the options for the City Council to  consider relative to permanently filling the city manager role include:    appoint Hoyt as police chief/city manager (dual role) effective February 1,  2023   appoint a different person as city manager   pursue an external recruitment process utilizing a consultant.    Mr. Johnson acknowledged that cities typically have a separate police chief and  city manager, but the dual role may be an option at this time for New Hope.     Discussion ensued regarding transparency with the community, consideration of  public input, whether re‐organization may be needed in the police department,  considering what’s in the city’s best interest, and the potential cost savings to the  city.    RESOLUTION 2022‐124  Item 6.5  Council Member Elder introduced the following resolution and moved its  adoption: “RESOLUTION EXTENDING THE MEMORANDUM OF  UNDERSTANDING BETWEEN TIM HOYT AND THE CITY OF NEW HOPE  FOR DIRECTOR OF POLICE AND ACTING CITY MANAGER UNTIL  FEBRUARY 1, 2023.” 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; 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.    RESOLUTION 2022‐125  Item 6.6    Mayor Hemken introduced for discussion Item 6.6, Resolution declaring the dual  roles of Police Chief and Acting City Manager and eligibility of Tim Hoyt to  participate in the Public Employees Police and Fire Plan.  New Hope City Council  November 28, 2022  Page 3     Council Member London expressed concern that the agenda item was  “recommended for approval” by Hoyt and Johnson. He pointed out a potential  conflict of interest since it affects compensation package.     Mr. Rich Johnson, director of HR/administrative services, agreed to remove Hoyt’s  name from the recommendation. He stated the resolution was a template provided  by PERA and is intended solely to address the current situation of Hoyt serving as  acting city manager.     RESOLUTION 2022‐125  Item 6.5  Council Member Elder introduced the following resolution and moved its  adoption: “RESOLUTION DECLARING THE DUAL ROLES OF POLICE  CHIEF AND ACTING CITY MANAGER AND ELIGIBILITY OF TIM HOYT  TO PARTICIPATE IN THE PUBLIC EMPLOYEES POLICE AND FIRE PLAN.”  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; 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.    ENTERPRISE FLEET  MANAGEMENT  LEASE AGREEMENT  Item 10.1    Mayor Hemken introduced for discussion Item 10.1, Resolution approving  agreement with Enterprise Fleet Management for lease of vehicles.    Mr. Jeff Sargent, director of community development, explained on June 28, 2021,  the City Council approved a resolution approving an agreement with Enterprise  Fleet Management for the lease of 14 police vehicles. The rationale for leasing the  vehicles was based on the city’s ability to optimize fleet management by improving  average replacement time to keep the fleet up to date with current technology. The  lease program also provides for budget stability with more consistent cash outlay.  Last, establishing a proactive replacement plan maximizes potential equity at time  of resale which reduces operational expenses.     Mr. Sargent requested the City Council’s approval to add seven vehicles to the  leased fleet of vehicles managed by Enterprise Fleet Management. He stated at the  work session of May 16, 2022, staff reviewed the proposal and Council was  supportive of proceeding to lease seven additional vehicles. He stated the vehicles  that will be replaced include all four community development inspector vehicles  with Chevrolet Traverse SUVs and three public works vehicles with one 2022 Ford  F‐250 and two 2023 RAM 1500s. He commented on the current unavailability of  some Ford vehicles due to the current market situation. He stated staff of Abdo  Financial Solutions also support the action.    Council Member London commented that it appears the leased vehicles are larger  types than the existing vehicles (F‐150 to F‐250 and Ford Fusions to SUVs). He also  questioned the cost analysis.    Mr. Sargent explained that Enterprise uses the state’s cooperative purchasing  program and makes large volume purchases which result in a cost savings. He  stated the central garage supervisor and Abdo are tracking and evaluating the  New Hope City Council  November 28, 2022  Page 4   lease program. He noted the vehicle resale at the end of the lease is one factor that  is used in determining the type of vehicle to lease. He noted the life cycle of the  lease is about three years at which time a determination of costs can be made  (maintenance costs, lease costs, resale value).     Council Member Elder spoke of the benefits to leasing vehicles such as higher  resale value and ease of vehicle maintenance.    RESOLUTION 2022‐126  Item 10.1  Council Member Elder introduced the following resolution and moved its  adoption: “RESOLUTION APPROVING AGREEMENT WITH ENTERPRISE  FLEET MANAGEMENT FOR LEASE OF VEHICLES.” 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.    TETRAHYDRO‐ CANNABINOL  PRODUCTS  Item 10.2  Mayor Hemken introduced for discussion Item 10.2, Ordinance No 22‐08, An  ordinance amending chapter 8 of the New Hope City Code by adding Section 8‐ 41, regulating tetrahydrocannabinol products, and adoption of Summary  Ordinance for publication purposes.    Mr. Jeff Sargent, director of community development, stated a new law was  enacted at the end of 2022 legislative session that allows certain edible and  beverage products infused with tetrahydrocannabinol (THC) to be sold. He stated  the ordinance adds section 8‐41 to the city code to license the sale of  tetrahydrocannabinol products. Council reviewed the draft ordinance at its work  session of November 21 and supported adoption of the ordinance subject to a  maximum of 20 licenses. A background investigation will be required of all  applicants, and the annual business license fee will be set at $500. He stated  business license holders will be notified of the new ordinance.    Mayor Hemken asked the city attorney of any concerns.     Ms. Stacy Woods, city attorney, stated the licensing will allow oversight of who is  selling THC products.    Council Member London asked whether the city could ban THC products.    Ms. Woods indicated the city could impose restrictions such as zoning areas or  distance requirements from schools. She stated it would be difficult to outright ban  the sale of THC products, and there is no state law “opt out” provision for cities.  She indicated the license fees should be set to cover the cost of regulating only.    ORDINANCE 22‐08  Item 10.2    Council Member Hemken introduced the following ordinance and moved its  adoption: “ORDINANCE NO 22‐08, AN ORDINANCE AMENDING CHAPTER  8 OF THE NEW HOPE CITY CODE BY ADDING SECTION 8‐41,  REGULATING TETRAHYDROCANNABINOL PRODUCTS, AND  ADOPTION OF SUMMARY ORDINANCE FOR PUBLICATION PURPOSES.”  The motion for the adoption of the foregoing ordinance was seconded by Council  New Hope City Council  November 28, 2022  Page 5   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 ordinance was  declared duly passed and adopted, signed by the mayor which was attested to by  the city clerk.    FRANCHISE FEES  Item 10.3  Mayor Hemken introduced for discussion Item 10.3, Ordinance No. 22‐12, An  ordinance amending electric and gas franchise fees in the New Hope City Code  and Fee Schedule.    Mr. Brandon Bell, community development coordinator/management analyst,  explained the ordinance amendment increases the gas and electric franchise fees  effective March, 2023. He stated the item was discussed at the October work  session and Council was in general agreement that the fees should be aligned  closer to the average of the fees charged by other area cities. He stated holding a  public hearing was optional and staff felt it was beneficial to allow for public  comment. A notice was published in the Sun Post.     Mayor Hemken opened the floor for public comment. There was no one present  desirous of addressing the Council for the public hearing.    Council Member London noted his opposition to franchise fees as they can be  perceived as a hidden tax. He pointed out public works does not have detailed  records of the infrastructure repairs in right‐of‐way to justify the franchise fees  charged by utility companies for public and private use in the right‐of‐way.     Council Member Elder recommended the communications coordinator post an  article on the city’s website regarding the purpose of franchise fees.     Council Member Isenberg noted the residential rate increases are modest.      CLOSE HEARING  Item 10.3    Motion was made by Council Member Elder, seconded by Council Member  Isenberg, to close the public hearing. All present voted in favor. Motion carried.  ORDINANCE 22‐12  Item 10.3  Council Member Hemken introduced the following ordinance and moved its  adoption: “ORDINANCE NO. 22‐12, AN ORDINANCE AMENDING  ELECTRIC AND GAS FRANCHISE FEES IN THE NEW HOPE CITY CODE  AND FEE SCHEDULE.” The motion for the adoption of the foregoing ordinance  was seconded by Council Member Hoffe, 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 ordinance 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.    New Hope City Council  November 28, 2022  Page 6   Motion was made by Council Member Elder, seconded by Council Member Hoffe  to appoint Matthew London to Human Rights Commission as student member.  Voting in favor: Hemken, Elder, Hoffe, Isenberg; Abstained: London. Motion  carried.    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 7:54 p.m.  Respectfully submitted,    Valerie Leone, City Clerk    New Hope City Council  December 5, 2022  Page 1   City of New Hope  4401 Xylon Avenue North  New Hope, Minnesota 55428    City Council Minutes December 5, 2022  Special 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.    ROLL CALL Council present:          Council absent:    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  Erin Enstad, Abdo Financial Solutions  Vicki Holthaus, Abdo Financial Solutions  Valerie Leone, City Clerk    2023 PROPOSED  BUDGET  Item 11.1    Mayor Hemken introduced for discussion Item 11.1, Public hearing to take  comments on 2023 city budget.    Mayor Hemken reported the purpose of this public hearing is to take public  comments on the city’s proposed budget and tax levy for 2023. She stated the City  Council adopted the preliminary budget at the September 12 Council Meeting and  has been reviewing all the budget details with the city manager and department  heads for the last several months. The final budget and tax levy will be adopted at  the December 12 Council Meeting.     Mayor Hemken stated the city manager and financial consultant will be making  the presentation on the budget and then the public hearing will be opened for the  council to take public comments on the budget. She advised the Board of Appeal  and Equalization Meeting, held in April, is the forum to contest market values.    Mr. Tim Hoyt, acting city manager, prefaced the presentation by informing the  public that city staff takes input throughout the year from council and citizen  contacts as it relates to the city’s budget. He noted the budget is shaped through  input and guidance by Council and residents, a professional survey conducted by  the Morris Leatherman Company, and planning by the staff management team.  He reviewed the results of the survey showing positive results. He reported that  the preliminary budget had been approved by the city council on September 12  and that general fund budgets were reviewed at the council work session on  September 19, and utility and enterprise funds would be reviewed at the October  17 work session, along with the HRG budget and utility rate recommendations. He  stated information from the county assessor was reviewed at the work session on  November 21 along with the city services survey results and the budget public  New Hope City Council  December 5, 2022  Page 2   hearing presentation. He stated the budget hearing at this time is for public input,  and the Council will consider the final budget at its meeting on December 12, 2022.     Mr. Hoyt reviewed the 2023 budget initiatives for redevelopment, central garage  equipment, personnel costs for a 3% cost of living increase, additional staff  (Evidence Technician in the police department and Golf Superintendent at the golf  course), fire district, redevelopment, park and recreation initiatives, Emerald Ash  Borer program, contractual arrangements for finance and information technology,  and continuation in the GreenSteps program.    Ms. Erin Enstad, Abdo Financial Solutions, reported the general fund tax levy is  $12,076,955, or a 6% increase over the 2022 budget. She reported that the total tax  levy included the general fund, street and park infrastructure fund, EDA levy,  HRA levy and prior debt levies, and noted that it had amounted to an overall  increase of $822,305, or 4.51% over 2022.    Ms. Enstad reviewed increases to the tax levy including 5% for street  infrastructure, 2.24% for park infrastructure, 5% for EDA redevelopment projects,  and 5% for HRA for scattered site housing program. She also discussed prior debt  levies and noted that two of the bond levies would be decreasing by a total of  $2,993, while four of the bond levies would increase by a total of $12,063.    Ms. Enstad reported that the median home value in 2023 is $325,000 which is an  18% increase from 2022. She stated the estimated impact on residential homes  based on the 4.51% increase in city tax levy is 8%. Homes valued between $150,000  and $400,000 will realize a tax increase between $61 to $192 for the city’s share of  taxes. Ms. Enstad explained the city’s tax rate and noted it decreased from 62.826%  in 2022 to 57.225% in 2023. She pointed out that this decrease would not necessarily  equate to a property tax decrease, as it was based on the change in residential  property values, which had increased at a faster pace than commercial property  values.    Ms. Enstad reported on property tax relief programs.     Ms. Enstad reviewed the general fund budget of $17,235,207 which is an increase  of $1,056,014 over last year or 6.5%. She illustrated the 2023 tax supported budget  with a 4.51% tax levy increase:     General Fund   Street Infrastructure Fund  Park Infrastructure Fund  Economic Development Authority  Housing and Redevelopment Authority*  Debt service (2015 GO TIF Bonds – City Center)  Debt service (2015 GO Imp Bonds – Northwood So.)  Debt service (2016 GO Imp Bonds – Northwood No.)  Debt service (2017 GO Bonds – Police/City Hall)  Debt service (2018 GO Tax Abatement Bonds – Pool and Park)  Debt service (2019 GO Tax Abatement Bonds – Pool and Park)   Total tax‐supported budgets  $12,076,955  1,698,622  925,185  160,650  437,850  237,853  208,745  263,709  1,705,515  867,464  470,768  $19,053,316  New Hope City Council  December 5, 2022  Page 3     *proposed to be administered as a separate taxing district levy     She stated the major increases include:    $643,628 increase to fund 3% increase in wages/benefits, which includes  evidence technician position, new union contract rates, adjustments to  health insurance contributions, and council salary increase.   $145,000 increase for the replacement of half of the portable radios in the  police department.   $133,595 increase in West Metro Fire‐Rescue District joint powers  agreement, which included the aerial lease and two new truck leases.   $62,158 increase in IT charges.   $62,661 decrease in central garage charges.   $38,000 decrease in elections budget for election judge costs.    Ms. Enstad stated the city is scheduled to receive $867,286 in local government aid  (LGA), and the full LGA amount will be used to offset central garage equipment  and building replacement charges, not general operations.    She explained the city’s street and park infrastructure funds and pointed out that  New Hope does not assess taxable properties for street improvements, as street  and park infrastructure improvements are paid through the general property tax  levy. She indicated a 5% increase is proposed for both the street infrastructure and  the park infrastructure funds and noted the tax rate in New Hope may be higher  than comparable sized cities since New Hope includes infrastructure  improvements in the general property tax levy rather than imposing assessments  to benefitting property owners. She stated the street levy is approximately 13% of  the local tax bill. Ms. Enstad reviewed the central garage fund and utility rate  increases that equate to approximately $4.86 per month for a residential user. Ms.  Enstad reported the City Council will act on the city’s final budget at its meeting  of December 12, 2022.    Mayor Hemken opened the floor for comments from the audience. Mr. and Mrs.  Dewane Pagel, 3525 Decatur Court North, were recognized. Ms. Pagel questioned  their property tax increase and property value.     Staff explained that the statement regarding the city’s portion of property tax  increasing between $61 to $192 for homes valued between $150,000 and $400,000  is based on a scenario of no change in market value. It was also noted that the  market value exclusion decreases for homes valued greater than $400,000.    Council thanked the Pagels for their questions and thanked staff for the budget  presentation.    MOTION Motion was made by Council Member Elder, seconded by Council Member  Isenberg, to close the public hearing. All present voted in favor. Motion carried.    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  New Hope City Council  December 5, 2022  Page 4   the Council. All present voted in favor. Motion carried. The New Hope City  Council adjourned at 7:30 p.m.  Respectfully submitted,    Valerie Leone, City Clerk    New Hope City Council  December 12, 2022  Page 1   City of New Hope  4401 Xylon Avenue North  New Hope, Minnesota 55428    City Council Minutes December 12, 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 (arrived at 7:27 p.m.)  Andy Hoffe, Council Member  Michael Isenberg, Council Member  Jonathan London, Council Member    Tim Hoyt, Acting City Manager  Brandon Bell, CD Coordinator/Management Analyst  Dan Boyum, City Engineer  Rich Johnson, Director of HR/Admin. Services  Valerie Leone, City Clerk  Susan Rader, Director of Parks & Recreation  Pete Stanley, Police Sergeant  Bernie Weber, Director of Public Works  Stacy Woods, City Attorney    APPROVAL OF  MINUTES  Motion was made by Council Member London, seconded by Council Member  Isenberg, to approve the canvass board meeting minutes of November 14, 2022.  Voted in favor thereof: Hemken, Hoffe, Isenberg, London; and the following  voted against the same: None; Abstained: None; Absent: Elder. Motion carried.    Motion was made by Council Member Isenberg, seconded by Council Member  Hoffe, to approve the regular meeting minutes of November 14, 2022. Voted in  favor thereof: Hemken, Hoffe, Isenberg, London; and the following voted against  the same: None; Abstained: None; Absent: Elder. Motion carried.    OPEN FORUM    There was no one present desirous of addressing the council.  PRESENTATION:  FOURTH JUDICIAL  DISTRICT UPDATE  Item 5.1    Mayor Hemken introduced for discussion Item 5.1, Update by Chief Judge  Barnette of the Fourth Judicial District of Minnesota which serves Hennepin  County.    Chief Judge Barnette of the Fourth Judicial District, explained the community  outreach to cities is intended to provide the city council and citizens an overview  of the courts and an opportunity for questions. He stated the fourth judicial  district has 63 judges, 12 referees, and 564 staff (full‐time equivalent). The  New Hope City Council  December 12, 2022  Page 2   divisions include civil, criminal, family, juvenile, probate/mental health. Judge  Barnette commented on the courts’ activities and the increase in remote hearings  since the pandemic. He noted remote hearings have benefited many participants  and are safer for family court.    Mayor Hemken thanked Judge Barnette for the update.    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.    Item 6.1 was removed for discussion.    FINANCIAL CLAIMS  Item 6.2    Approval of financial claims through December 12, 2022.  RESOLUTION 2022‐127  Item 6.4    Resolution approving re‐appointments to Citizen Advisory Commission, Human  Rights Commission, Personnel Board, Planning Commission and West Metro  Fire‐Rescue Board of Directors.    RESOLUTION 2022‐128  Item 6.5    Resolution approving final payment to Allied Blacktop Company for $41,964.20  for the 2022 Crack Repair and Seal Coat project (Improvement Project No. 1084).  MOTION  Item 6.6    Motion accepting donations from the Minneapolis Regional Chamber for the New  Hope Crime Prevention Fund and the 2023 Safety Camp.  MOTION  Item 6.7    Motion accepting additional Parks and Recreation donations for the Movie at the  Golf Course, Trick or Trot event, and Movie at the Ice Arena.  RESOLUTION 2022‐129  Item 6.8    Resolution acknowledging notification of the New Hope Police Department’s  participation and potential future request for controlled property through the  Law Enforcement Support Program (LESO).    MOTION  Consent Items  Motion was made by Council Member Hoffe, seconded by Council Member  London, to approve Consent items 6.2 through 6.8. All present voted in favor.  Motion carried.    CONSENT ITEM   REMOVED FOR   DISCUSSION  Business Licenses  Item 6.1    Mayor Hemken introduced for discussion Item 6.1, Approval of business licenses.    Council Member London noted Council is asked to approve various licenses for  78 businesses. He questioned whether the city should consider complaints or  other performance criteria when considering renewals. He noted that many waste  haulers had difficulty complying with trash and yard waste collection this year.     New Hope City Council  December 12, 2022  Page 3   City Clerk Leone commented that waste hauling is a contractual arrangement  between residents and the garbage hauler, and the city does not typically  intervene with missed collections unless it involves the recycling program.  Council Member London stated the city could implement organized hauling  which would allow city oversight.    Ms. Leone stated complaints made through the website are tracked. She also  mentioned staff can only enforce what is outlined in city code.     Council agreed to discuss the business license renewal process at a future work  session.     Council Member Elder joined the council meeting at 7:27 p.m.    MOTION  Consent Items  Motion was made by Council Member London, seconded by Council Member  Isenberg, to approve Consent Item 6.1, Approval of business licenses. All  present voted in favor. Motion carried.    TOBACCO/LIQUOR  VIOLATIONS  Item 7.1    Mayor Hemken introduced for discussion Item 7.1, Appearances by licensees  regarding consequences for failing tobacco or liquor compliance checks.    Mr. Tim Hoyt, police chief/acting city manager, stated 33 tobacco and liquor  compliance checks were conducted on October 17, 2022, by the Police Department,  and seven businesses failed the checks. All of the alleged violations are considered  first violations relative to the fine schedule. He explained in accordance with city  code, the businesses that failed have been invited to the Council Meeting regarding  the alleged violation. The licensee must admit or deny the allegation. He noted the  penalty, as outlined in the code, for a first‐time tobacco violation within a 36– month period is a $300 fine and either a suspension of tobacco sales for 3 days or  training of all employees by the police department. The fine for a liquor  compliance check failure within 24 months is $250 fine and either a suspension of  liquor sales for 3 days or training of all employees by the police department.     Mr. Hoyt stated Sergeant Stanley is in attendance to address any questions  regarding the failures. He recommended that Council call upon each business to  address the Council. He indicated after tonight’s hearing the city clerk will mail  the businesses a notice containing instructions on payment of the fine and  identification training or license suspension period.    Mr. Hoyt stated after conducting the hearing, two motions should be passed; one  to close the hearing and the second to impose the fines.    Mayor Hemken called upon representatives of the following businesses:    Business Address Violation  Speedway 9400 36th Ave N Tobacco – first  Family Dollar 8001 Bass Lake Road Tobacco ‐ first  LaPicante Market 7914 Bass lake Road Tobacco – first  Holiday 7201 Bass Lake Road Tobacco – first  Cinema Grill 2749 Winnetka Ave N Liquor ‐ first  New Hope City Council  December 12, 2022  Page 4   New Hope Liquor 8001 Bass Lake Road,  Suite B  Tobacco – first; and  Liquor – first  Winnetka Liquor 3544 Winnetka Ave N Tobacco – first; and  Liquor – first    Representatives of Speedway, LaPicante Market, Holiday, Cinema Grill, New Hope  Liquor and Winnetka Liquor admitted to the alleged violations. There was no one  present from Family Dollar, and failure to appear is admittance of the alleged  violation.    Council Member Elder commented regarding the seriousness of failing compliance  checks and stated the city expects licensees to check buyers’ identifications.     Sergeant Pete Stanley was recognized. He commented that all businesses were  cooperative during the compliance checks and were open to suggestions and  identification training. He stated a tobacco compliance check was conducted  earlier this year and no fines were issued as it was an educational effort through  the state.    Mr. Hoyt stated the police department’s goal is to conduct two compliance checks  per year.     There was no one else in the audience desirous of addressing the Council for the  public hearing.    Mayor Hemken thanked the businesses for attending the meeting and asked the  businesses to be more diligent to prevent sales to minors.     CLOSE HEARING  Item 7.1  Motion was made by Council Member Elder, seconded by Council Member  Isenberg, to close the public hearing. All present voted in favor. Motion carried.    MOTION  Item 7.1  Motion was made by Elder, seconded by Council Member Isenberg, to impose  fines as outlined in city code 8‐7 and 10‐23 for Speedway, Family Dollar,  LaPicante Market, Holiday, Cinema Grill, New Hope Liquor and Winnetka  Liquor. All present voted in favor. Motion carried.    2023 LIQUOR LICENSE  RENEWALS  Item 7.2    Mayor Hemken introduced for discussion Item 7.2, Consideration of liquor  license renewals for year 2023.    Mr. Tim Hoyt, police chief/acting city manager, stated staff recommends the  Council consider liquor license renewals for establishments with on‐sale, off‐sale,  and malt liquor licenses.     Mr. Hoyt indicated the license holders have furnished the necessary renewal  applications for the 2023 license period to the city clerk. He reviewed the  summary of incidents over the past year.     Council Member London questioned the police calls for Los Sanchez Taqueria.  He noted it is important for the city to continue to have a good reputation in liquor  establishments.   New Hope City Council  December 12, 2022  Page 5     Mr. Hoyt stated the calls average three per month which is not significant. He  noted that Community Engagement Officer Brad Kallio has a meeting in place  with the owner next week to assist the business with safety and security  measures. Council Member Isenberg expressed his gratitude to Officer Kallio for  the proactive approach.    Mr. Hoyt reviewed the various licenses and liquor establishments requesting  renewal:     On‐Sale Restaurant (fee $6,200)  Applebee’s, 4203 Winnetka Avenue North  Hy‐Vee Market Grille, 8200 42nd Avenue North   Los Sanchez Taqueria LLC, 7112 Bass Lake Road  New Hope Golf Course, 8130 Bass Lake Road  Palm Entertainment (Pub 42), 7600 42nd Avenue North  Winnetka Pizza (Frankie’s), 3566 Winnetka Avenue North  Cinema Grill & Outtakes, 2749 Winnetka Avenue North    On‐Sale Bowling Center (fee $6,200)  New Hope Bowl, 7107 42nd Avenue North    Microdistillery (fee $800)  Pocket Square Cocktail Lounge, 7530 42nd Avenue North    Off‐Sale (fee $380)  Hy‐Vee Wine & Spirits, 8202 42nd Avenue North  New Hope Liquor, 8001 Bass Lake Road  Viking Liquor, 7141 42nd Avenue North  Winnetka Liquors, 3544 Winnetka Avenue North    Off‐Sale Malt Liquor (fee $100)  Hy‐Vee Food Store, 8200 42nd Avenue North  Speedway, 6144 West Broadway    Mr. Hoyt recommended the Council accept any comments, close the hearing, and  take action on the license renewals.     Mayor Hemken opened the public hearing. There was no one present to address  Council for the public hearing.    CLOSE HEARING  Item 7.2  Motion was made by Council Member Isenberg, seconded by Council Member  Elder, to close the public hearing. All present voted in favor. Motion carried.    MOTION  Item 7.2    Motion was made by Elder, seconded by Council Member London, to renew  licenses. All present voted in favor. Motion carried.    LIBERTY PARK  (IMPROVEMENT  PROJECT NO. 1094)  Mayor Hemken introduced for discussion Item 8.1, Resolution authorizing the  appropriation of funds in the amount of $190,554.67 for playground equipment,  installation and site work at Liberty Park (Improvement Project No. 1094).  New Hope City Council  December 12, 2022  Page 6   Item 8.1    Ms. Susan Rader, director of parks and recreation, explained the project for  refurbishment of some playground components, the purchase and installation of  additional playground equipment, geotextile fabric, playground mats, poured in  place material, engineered wood fiber and minor concrete work at Liberty Park,  9015 60th Avenue North. She stated the equipment purchase of $95,837.68 is  through Landscape Structures and the remaining items would be through  Flagship Recreation for $94,716.99. Both vendors are on the state’s cooperative  purchasing agreement.    Ms. Rader reported that the neighborhood was involved in the planning and  design. She stated the 2023 CIP contains $200,000 for the playground project and  the project incorporates the playground equipment refurbish component with  approximately $91,000 worth of equipment being re‐used. The older equipment  will be repainted by June 1 to obtain 2022 pricing and before summer city‐ sponsored playground programs.    RESOLUTION 2022‐130  Item 8.1  Council Member Isenberg introduced the following resolution and moved its  adoption: “RESOLUTION AUTHORIZING THE APPROPRIATION OF  FUNDS IN THE AMOUNT OF $190,554.67 FOR PLAYGROUND  EQUIPMENT, INSTALLATION AND SITE WORK AT LIBERTY PARK  (IMPROVEMENT PROJECT NO. 1094).” 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.    LIGHTED BASEBALL  FIELD AND MEADOW  LAKE PICKLEBALL  COURTS  (IMPROVEMENT  PROJECT NOS. 1095 &  1096)  Item 8.2    Mayor Hemken introduced for discussion Item 8.2, Resolution authorizing the  appropriation of funds in the amount of $302,570 to install LED lights at Lighted  Baseball Field (Improvement Project No. 1095) and the Meadow Lake pickleball  courts (Improvement Project No. 1096).    Ms. Susan Rader, director of parks and recreation, stated many of the existing  park lighting fixtures have aged and are inefficient. The proposed lighting project  involves utilizing existing poles and retrofitting the lights with LED fixtures and  installing one new pole at Lighted Baseball Field near the Osprey nesting pole.     Ms. Rader also explained the future plans to convert three courts at Meadow Lake  Park to eight pickleball courts and the proposed lighting upgrade to reuse the  existing light poles and retrofitting the lights with LED fixtures.     Ms. Rader reviewed funding from the 2022 and 2023 CIP budget. She also  reported that staff has submitted applications for two grants for the Lighted  Baseball Field project.      RESOLUTION 2022‐131  Item 8.2  Council Member London introduced the following resolution and moved its  adoption: “RESOLUTION AUTHORIZING THE APPROPRIATION OF  FUNDS IN THE AMOUNT OF $302,570 TO INSTALL LED LIGHTS AT  LIGHTED BASEBALL FIELD (IMPROVEMENT PROJECT NO. 1095) AND  THE MEADOW LAKE PICKLEBALL COURTS (IMPROVEMENT PROJECT  New Hope City Council  December 12, 2022  Page 7   NO. 1096).” 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.    2023 HRA LEVY  Item 10.1    Mayor Hemken introduced for discussion Item 10.1, Resolution approving the  2023 Final HRA Levy.    Mr. Tim Hoyt, acting city manager, stated adoption of the resolution affirms the  Council’s support for the HRA levy in the amount of $437,850.  It is necessary to  adopt the HRA levy separate from the city’s base levy. The EDA must also  approve the levy. The levy was presented during the December 5 budget hearing.    RESOLUTION 2022‐132  Item 10.1  Council Member Isenberg introduced the following resolution and moved its  adoption: “RESOLUTION APPROVING THE 2023 FINAL HRA LEVY.” 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.    2023 TAX LEVY  Item 10.2    Mayor Hemken introduced for discussion Item 10.2, Resolution adopting general,  special revenue, debt service, enterprise, and internal service fund budgets for the  city of New Hope for the year 2023 and establishing a tax levy for the year payable  2023.    Mr. Tim Hoyt, acting city manager, stated Council is requested to approve the  2023 budget and tax levy. The budget public hearing was held December 5, and  only two residents attended the hearing to observe the presentation. The Council  is asked to approve the 2023 tax‐supported budgets of $28,742,201, non‐tax  supported budgets of $20,039,409, and city tax levy of $19,053,316 (which includes  the HRA tax levy). The tax levy is a 4.51% increase over last year.     Mr. Hoyt reported staff will certify the tax levy to Hennepin County, and the  budget will be posted on the city’s website.    RESOLUTION 2022‐133  Item 10.2  Council Member Elder introduced the following resolution and moved its  adoption: “RESOLUTION ADOPTING GENERAL, SPECIAL REVENUE,  DEBT SERVICE, ENTERPRISE, AND INTERNAL SERVICE FUND BUDGETS  FOR THE CITY OF NEW HOPE FOR THE YEAR 2023 AND ESTABLISHING  A TAX LEVY FOR THE YEAR PAYABLE 2023.” 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.    New Hope City Council  December 12, 2022  Page 8   2023 COLA  Item 10.3    Mayor Hemken introduced for discussion Item 10.3, Resolution authorizing the  city manager to implement 2023 Cost of Living (COLA) wage adjustments for  non‐union employees, pursuant to Council approval.    Mr. Rich Johnson, director of HR/administrative services, indicated a 3% cost of  living (COLA) wage adjustment is recommended for non‐union employees. He  stated the item was reviewed with Council at the September 19 work session.    Council Member London recommended a dollar figure be stated (in addition to  the percentage) to enable residents to know the actual budgetary impact. He also  questioned the other benefit increases (step increases, merit increases, workers’  compensation insurance, life insurance). Council Member London also noted he  does not believe COLA is an accurate description.    Mr. Johnson stated the 2023 budget includes an increase of $643,628 for wage and  benefit increases including the 3% cost of living adjustment, an increase in the  city’s share of health insurance coverage, and two additional positions. He noted  the figure also includes Council salary increases for 2023. Mr. Johnson noted the  retirement contributions are set by PERA and the state legislature. He noted  workers’ compensation insurance rates are set by League of Minnesota Cities  Insurance Trust based on position type and wages. He stated step increases are  part of the city’s compensation plan. He indicated a compensation study is  included in the 2023 budget to determine if the city’s compensation plan requires  adjustments.    Mr. Johnson pointed out the collective bargaining agreements with public works  and police that were settled earlier this year include a market adjustment in  addition to the COLA.     Mr. Johnson stated at the September 19 work session information was presented  to Council that showed the Consumer Price Index (CPI) increased from 8.3% from  August 2021 to August 2022. He also noted social security recipients will receive  an 8.7% increase in 2023.    RESOLUTION 2022‐134  Item 10.3    Council Member Hoffe introduced the following resolution and moved its  adoption: “RESOLUTION AUTHORIZING THE CITY MANAGER TO  IMPLEMENT 2023 COST OF LIVING (COLA) WAGE ADJUSTMENTS FOR  NON‐UNION EMPLOYEES, PURSUANT TO COUNCIL APPROVAL.” 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.    2023 FEE SCHEDULE  Item 10.4    Mayor Hemken introduced for discussion Item 10.4, Resolution adopting an  updated Fee Schedule.    Mr. Tim Hoyt, acting city manager, stated the 2023 Fee Schedule includes  increases to utilities, park and recreation program user fees, franchise fees, and  New Hope City Council  December 12, 2022  Page 9   business license fees. It includes an increase to the pawn shop license and the fee  for THC products as a result of ordinance 22‐08 that was adopted on November  28, 2022. The new rates will be implemented in January.    Council Member London indicated he does not support the franchise fee increase  but will vote in favor of the updated Fee Schedule.    RESOLUTION 2022‐135  Item 10.4    Council Member Elder introduced the following resolution and moved its  adoption: “RESOLUTION ADOPTING AN UPDATED FEE SCHEDULE.” 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.    GAS FRANCHISE  Item 10.5    Mayor Hemken introduced for discussion Item 10.5, Ordinance No. 22‐13, An  ordinance amending gas franchise ordinance in the New Hope City Code and  Summary Ordinance for publication purposes.    Mr. Tim Hoyt, acting city manager, stated staff recommends adoption of  ordinance 22‐13 amending the gas franchise ordinance by renewing the  agreement with CenterPoint Energy. The proposed ordinance amendment would  renew the franchise agreement for 20 years. The agreement grants CenterPoint  Energy a nonexclusive franchise to construct, operate, repair and maintain  facilities and equipment for the transportation, distribution, manufacture and sale  of gas energy for public and private use and to use the public ways and grounds  in the city. CenterPoint Energy has worked in the right‐of‐way over 120 times in  the past two years.    ORDINANCE NO. 22‐13  Item 10.5    Council Member Hoffe introduced the following ordinance and moved its  adoption: “ORDINANCE NO. 22‐13, AN ORDINANCE AMENDING GAS  FRANCHISE ORDINANCE IN THE NEW HOPE CITY CODE AND  SUMMARY ORDINANCE FOR PUBLICATION PURPOSES.” The motion for  the adoption of the foregoing ordinance was seconded by Council Member  London, 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 ordinance was  declared duly passed and adopted, signed by the mayor which was attested to by  the city clerk.    DE&I STATEMENT  Item 11.1    Mayor Hemken introduced for discussion Item 11.1, Ordinance No. 22‐13, Update  regarding the creation of a statement to publicly share the city’s commitment to a  diverse, equitable, and inclusive environment.    Mr. Rich Johnson, director of HR/administrative services, asked Council to adopt  the public facing Equity Statement to show the city’s commitment to a diverse,  equitable, and inclusive environment. He explained that input was sought from  the Human Rights Commission and the statement can be revised as necessary.     New Hope City Council  December 12, 2022  Page 10   Council expressed support of the statement.    MOTION  Item 11.1    Motion was made by Isenberg, seconded by Council Member Elder, to approve  the Equity Statement regarding the city’s diverse, equitable, and inclusive  environment. All present voted in favor. Motion carried.    EXCHANGE OF   COMMUNICATION  Item 12.1  Mayor Hemken introduced for discussion Item 12.1, Exchange of communication  between members of the City Council.    Council Member Isenberg thanked everyone involved in successful Tri‐City Santa  Parade held December 10, 2022.     Council Member Hoffe thanked the Parks and Recreation department for hosting  the employee recognition event on December 8, 2022.     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 8:40 p.m.  Respectfully submitted,    Valerie Leone, City Clerk    City Council Work Session December 19, 2022  Page 1   City of New Hope  4401 Xylon Avenue North  New Hope, Minnesota 55428    City Council Minutes  Work Session Meeting  December 19, 2022 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:    Tim Hoyt, Acting City Manager  Rich Johnson, Director of HR/Admin. Services  Valerie Leone, City Clerk  Walker MacBeath, Human Resources Coordinator/IT Coord.    CITY MANAGER  VACANCY   Item 11.1    Mayor Hemken introduced for discussion item 11.1, Discussion regarding options for  the City Council to consider in filling the city manager vacancy.    Mr. Rich Johnson, Director of HR/Admin. Services, provided history of Council’s  actions since March 7, 2022. He stated the Memorandum of Understanding with Tim  Hoyt serving as acting city manager was originally set to expire December 1, 2022, and  was extended until February 1, 2023. At this time Council is asked to consider options  such as:    Retain a firm to conduct an external recruitment process to fill the city manager  vacancy (forecasted to take 4‐5 months)   Fill the city manager vacancy internally   Fill the role internally by creating a director of police/city manager position   Other    Mr. Johnson explained the contributions to the police and fire pension plan compared  to the coordinated PERA plan. He noted the city does not pay the 6.2% social security  to employees who are enrolled in the police/fire pension PERA. He stated the PERA  board is reviewing the eligibility of the dual role. Mr. Johnson stated the management  team supports Hoyt’s appointment to the dual role. He commented that the  management team has strong directors and support staff. He stated whenever a  vacancy occurs in the city, staff evaluates whether the position should be filled in its  current capacity modified in some way, or not filled at all. He pointed out the labor  agreements are in place until December 31, 2025, and good union relationships are in  place.     Mr. Johnson reviewed costs for Council’s consideration regarding the city manager  vacancy including compensation of city managers in New Hope’s comparable cities  group and the projected savings of a blended city manager/police chief role.   City Council Work Session December 19, 2022  Page 2   He asked Council to review the job descriptions of city manager and director of police  for discussion purposes and encouraged Council to conduct a respectful, meaningful  dialogue.      Discussion ensued regarding the feasibility of a dual role (police chief/city manager)  and reasons it may work in New Hope, cost savings, Hoyt’s management style  including delegation, succession planning, the city’s ability to have separate traditional  city manager and police chief positions.    Hoyt explained future goals such as strengthening the city’s relationship with the  school district and conducting critical incident planning with the district, pursuing  innovative ideas for community involvement, continuing important communications  such as the Friday memo, working with community development department on the  rental registration program to strengthen sense of community, and conducting RFPs  for consulting firms.    Council Member Hoffe noted Hoyt has performed well over the past six months and  has the support and trust of directors.    Council discussed the city’s vulnerability of filling two important positions in the  future if Hoyt was appointed to serve in the dual role and later resigned or retired.  Council Member Elder commented regarding the succession planning in the police  department and the likelihood of an internal promotion for a future police chief.    Mayor Hemken inquired of a contract and severance package for a city manager  position. Mr. Johnson stated the appointee and Council would have to agree on a  salary/benefits package and the contract language. He noted per state law the  maximum severance package allowed for a public employee is six months’ wages.    Council Member London commented on the perception of a conflict of interest with a  dual role. He emphasized the importance of weighing all the pros and cons. He  indicated he would like to hear from other city managers as to why they don’t hold a  dual role. He noted a police chief is usually held accountable by a city manager.    Mayor Hemken stated additional discussion could occur at the January work session  and a formal vote could take place at the January 23 Council Meeting.    Discussion ensued regarding seeking public input from the community. Council  members shared communication received to date on the dual role issue.    Council agreed to hold an open forum for public input at the January 9 Council  Meeting and directed staff to advertise through various communication resources.     ADJOURNMENT The meeting was adjourned at 8:28 p.m. as there was no further business to come  before the Council at its work session.  Respectfully submitted,     Valerie Leone, City Clerk    G:\City Manager\AGENDA\6.2 R‐Approval of Claims Merge Doc.docx   Request for Action  January 9, 2023    Approved by: Tim W. Hoyt, Acting City Manager  Originating Department: City Manager  By: Tim W. Hoyt, Acting City Manager    Agenda Title  Approval of claims through January 9, 2023  Requested Action  Claims for services and commodities purchased through this period are listed on the Check Disbursement  Report  Attachments   Check Disbursement Report  Agenda Section Consent Item Number  6.2  I:\RFA\City Manager\2023\city attorney appt\6.4 Q‐apt attorney.docx   Request for Action  January 9, 2023    Approved by: Tim Hoyt, Acting City Manager  Originating Department: City Manager  By: Valerie Leone, City Clerk    Agenda Title  Resolution appointing city attorney  Requested Action  Staff recommends the re‐appointment of Steven A. Sondrall and Stacy A. Woods as City Attorneys for the year  2023. The resolution also appoints Melanie P. Persellin as Assistant City Attorney and Prosecuting Attorney.  Policy/Past Practice  The city annually appoints a legal consultant to advise the Council, staff and police on legal and criminal  prosecution matters.  Background  The city has utilized the legal services of Jensen Sondrall Persellin & Woods, P.A. for many years. Steve Sondrall  has served as New Hope’s City Attorney since 1989 and Stacy Woods has served New Hope since 2014. Legal  support services will be provided by the law firm of Jensen Sondrall Persellin & Woods, P.A. Historically, the  city attorney’s office has increased fees on a two or three‐year cycle and maintained those fees over that period.  The last time fees were increased were in 2022.         2022 Hourly  Rates    2023  Hourly Rates    Year of last  increase   Civil attorney time $130 No change 2022   Police attorney time (prosecution) $130 No change 2022   Paralegal time $80 No change 2022   Revenue bond issues (fees are  paid by applicant, not the city)  $200 No change 2014    The city attorney does not charge the city for attending regularly scheduled council meetings and work sessions.  Funding  The budget includes funding for legal services.  Attachments   Resolution   Letter with fee schedule    Agenda Section Consent Item Number  6.4  1 RESOLUTION NO. 23 - ____ RESOLUTION APPOINTING CITY ATTORNEY BE IT RESOLVED by the City Council of the City of New Hope as follows: WHEREAS, it is in the best interest of the City of New Hope to appoint a legal consultant to advise the City Council, City staff and police on City civil legal and criminal prosecution matters, and WHEREAS, the Acting City Manager has recommended to this Council that attorney Steven A. Sondrall and Stacy A. Woods be appointed as the New Hope City Attorneys and Melanie P. Persellin be appointed as Assistant City Attorney and Prosecuting Attorney respectively pursuant to Minn. Stat. §412.651(3) during the year 2023, and they shall be collectively known as the City Attorney. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of New Hope as follows: 1. That Steven A. Sondrall, Attorney at Law, (license no. 103391) is hereby appointed to serve as City Attorney and Prosecuting Attorney for the City of New Hope, Minnesota, during the year 2023. 2. That Stacy A. Woods, Attorney at Law, (license no. 261658) is hereby appointed to serve as City Attorney for the City of New Hope, Minnesota, during the year 2023. 3. That Melanie P. Persellin, Attorney at Law, (license no. 031786x) is hereby appointed to serve as Prosecuting Attorney and Assistant City Attorney for the City of New Hope, Minnesota during the year 2023. 4. That the City Attorney may use the personnel and all other services of Jensen Sondrall Persellin & Woods, Professional Association, or other qualified attorneys and legal professionals to assist them in providing legal services to the City of New Hope during the 2023 year, subject to the approval of the City Manager and this City Council. Dated the 9th day of January, 2023. ____________________________________ Kathi Hemken, Mayor Attest: __________________________ Valerie Leone, City Clerk P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-10000 City Mgr\CNH - Resolution Appointing City Attorney( 2023).docx Writer’s Direct Dial No.: (763) 201-0265 e-mail saw@jspwlaw.com December 30, 2022 Tim Hoyt, Acting City Manager City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 Via E-mail only Re: 2023 City Attorney Fee Schedule and Appointment Resolution Dear Tim: I am pleased to enclose for consideration at the January 9, 2023 Council meeting a proposed Resolution Appointing City Attorney for 2023. Thank you for your continued recommendation of our appointment as the City’s legal consultants for 2023. We do not intend to increase our current rates for civil or police attorney time, paralegal time or bond work in 2023. The rates will continue to be as follows: 1. $130.00 per hour for civil attorney time; 2. $130.00 per hour for police attorney time; 3. $80.00 per hour for all paralegal time; 4. $200.00 per hour on Revenue Bond issues – (fees are paid by applicant not the City); 5. Expenses will be billed at their actual cost. We will also continue our practice of attending the two regularly scheduled monthly Council meetings at no charge to the City and we will attend the City Council work sessions when requested by you at no charge to the City as well. I hope you and the City Council will consider this proposal reasonable and acceptable. Your recommendation for our appointment as City Attorney for 2023 is greatly appreciated and we look forward to working with you, the Council and city staff in representing the City of New Hope in 2023. Sincerely, /s/ Stacy A. Woods cc: Valerie Leone P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-10000 City Mgr\Letter to Tim Hoyt appointing City Attorney - 2023.docx I:\RFA\City Manager\2023\city eng appt\6.5 Q‐apt engineer.docx   Request for Action  January 9, 2023    Approved by: Tim Hoyt, Acting City Manager  Originating Department: City Manager  By: Valerie Leone, City Clerk‐Treas.    Agenda Title  Resolution appointing Dan Boyum of Stantec Consulting Services Inc. as city engineer for sewer, water,  street, and storm sewer projects and general work   Requested Action  Staff recommends the Council pass a resolution appointing Dan Boyum of Stantec Consulting Services  Incorporated as city engineer for 2023.    Policy/Past Practice  The city annually appoints an engineering consultant to assist Council and staff with planning and managing  improvements to parks, sewers, streets, water and storm sewer facilities within the city.  Background  The city utilized the services of Bonestroo, Rosene, Anderlik & Associations (BRAA) since 1957. In 2007, they  merged with DSU Planning and Urban Design and became “Bonestroo.” On September 2, 2011, Bonestroo  was acquired by Stantec Consulting Services Incorporated. The proposed resolution re‐appoints Dan Boyum  as city engineer.    Stantec Consulting Services Inc.’s proposed rate schedule for 2023 reflects a 3% increase for Stantec team  member rates. Since 2018 Stantec has not charged for attendance at council meetings and charged a fixed fee  of $100 (not hourly) for attendance at work sessions. Engineering rates were unchanged between years 2009‐ 2012, in years 2013‐2017 the rates increased by 3%, 3.5% in 2018, and 3% in years 2019‐2022. Stantec  Consulting Services Inc. is aware of the city’s limited resources and strives to find ways to increase value and  reduce overall costs while providing quality services. As in the past, the city engineer and his support staff  continue to be very instrumental in the city’s success in managing the city’s state aid funds, and in obtaining  grant funding and competitive quotes for various projects.   Funding  The 2023 general budget includes a total of $40,000 for engineering services within the Community  Development and Public Works department budgets. Engineering services utilized for specific construction and  improvement projects are charged to the respective project; such as street infrastructure project improvements  and park projects. Engineering services utilized for planning/development applications are generally billed to the  applicant.    Attachments   Resolution   Letter from city engineer   Rate schedule  Agenda Section Consent Item Number  6.5  City of New Hope     Resolution No. 2023 ‐      Resolution appointing Dan Boyum  of Stantec Consulting Services Incorporated  as city engineer for sewer, water, street,  and storm sewer projects and general work      WHEREAS, the city of New Hope contracts for engineering services; and,    WHEREAS, the city of New Hope constructs and maintains city parks, sewer, street, water and  storm sewer facilities in the city; and,    WHEREAS, it is in the best interest of the city to appoint a consulting engineering firm to assist  the City Council and staff in planning and managing improvements, and approve  the assignment of the engineering services contract to Stantec Consulting Services  Incorporated.    NOW, THEREFORE, BE IT RESOLVED that the firm of Stantec Consulting Services Inc. is hereby  designated to serve as the city engineer for parks, sanitary sewer, municipal water,  streets, storm sewers and other general work for the city of New Hope, Minnesota,  during the year 2023; and,    NOW, THEREFORE, BE IT FURTHER RESOLVED that payment for services shall be as set forth  in the contract dated January 1, 1998, and the rate (fee schedule) as negotiated with  the city manager.      Adopted by the City Council of the city of New Hope, Hennepin County, Minnesota, this 9th day  of January, 2023.       _________________________    Mayor    Attest: _______________________   City Clerk  Stantec Consulting Services Inc. 733 Marquette Avenue Suite 100 Minneapolis, Minnesota 55402-2309 Tel: (612) 712-2000 December 30, 2022 File: 193805500 Attention: Tim Hoyt City of New Hope 4401 Xylon Avenue North New Hope, MN 55428-4843 Reference: 2023 Rate Schedule Dear Tim, We have thoroughly enjoyed helping the City of New Hope plan and implement your projects over the past year. We are looking forward to continuing our service with the exciting projects and challenges next year! Enclosed is our 2023 hourly rate schedule for municipal services. Stantec is committed to employing great people while keeping our technical capabilities innovative and efficient to serve you best. Understanding the tough restraints placed on municipal governments, we are proposing the following: ·Hold your Stantec team’s rates to an average increase of 3% ·Council Meetings: no charge ·Council Work Session Meetings: $100/meeting Please be assured that we will continue to strive internally to minimize cost increases. We look for cost saving measures in our day-to-day operations with staff to help reduce your engineering costs and provide the greatest value for your engineering investment. We are grateful for our relationship with New Hope. Your Stantec team is dedicated to providing the city with high quality service while working within budget constraints. We look forward to continuing to partner with you in 2023! If you have any questions or require further information, please call me at (612) 712-2021. Regards, Stantec Consulting Services Inc. Dan D. Boyum, PE Senior Associate Attachments: Rate Schedule - 2023 c. Valerie Leone – New Hope; Tyler Johnson, Aimee Gies – Stantec Classification 2023 Senior Principal 174.00$ - 218.00$ Principal 167.00$ - 206.00$ Specialist*152.00$ - 311.00$ Project Manager 164.00$ - 211.00$ Senior Engineer| Scientist | Architects |Landscape Architect | Planner 152.00$ - 199.00$ Architect | Landscape Architect 138.00$ - 167.00$ Land Surveyor 123.00$ - 201.00$ Engineer | Planner | Scientist | Geologist | Hygienist 117.00$ - 167.00$ Designer | GIS | Landscape Designer |Graphics | Senior Technician 117.00$ - 169.00$ Engineering Technician 93.00$ - 136.00$ Project Technician 64.00$ - 95.00$ Field Supervisor 126.00$ - 199.00$ Inspector 95.00$ - 130.00$ 1-Person Survey Crew 165.00$ 2-Person Survey Crew 240.00$ * Specialist: Experts in highly technical disciplines including Principal Planners, Market Analysts and Certified Industrial Hygienist. These rates are adjusted annually in accordance with the normal review procedures of Stantec. 2023 RATE SCHEDULE (Municipal) I:\RFA\City Manager\2023\newspaper appt\6.6 Q&R‐apt newspaper 01.09.23.docx   Request for Action  January 9, 2023    Approved by: Tim Hoyt, Acting City Manager  Originating Department: City Manager  By: Valerie Leone, City Clerk‐Treas.    Agenda Title  Resolution appointing New Hope – Golden Valley Sun Post as the official newspaper for city of New Hope  Requested Action  Staff recommends the re‐appointment of the Sun Post as the official newspaper for 2023.  Policy/Past Practice  The City must designate an “official” newspaper on an annual basis.  Background  The only newspapers meeting the circulation criteria are the Sun Post and the Star Tribune. The City has  utilized the services of the Sun Post for many years, and publication rates are reasonable. As an added  service, the Sun Post also posts legal notices on its website (www.mnsun.com).    There is a slight increase in rates for 2023 (the last rate increase was year 2021).     2022 Rate Structure 2023 Rate Structure  $11.90 per inch for first insertion (rate drops  to $7.00 per inch for subsequent insertions).   Based on 9 lines per inch    $12.20 per inch for first insertion (rate drops  to $7.20 per inch for subsequent insertions).   Based on 9 lines per inch      Funding  The budget includes funding for publication costs. Annual publication costs are typically between $8,000‐$9,000  for all departments.  Attachments   Resolution   Letter from Sun Post     Agenda Section Consent Item Number  6.6  City of New Hope    Resolution No. 2023‐    Resolution appointing New Hope ‐ Golden Valley Sun Post  as the official newspaper for city of New Hope          WHEREAS, the City of New Hope is required by State law to designate a newspaper for  official and legal publication, and    WHEREAS, State Statute 331.02 established requirements that must be met by newspapers to  be designated for official and legal publication, and    WHEREAS, the New Hope ‐ Golden Valley Sun Post meets those requirements.    NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of New Hope,   Minnesota, as follows:    The New Hope ‐ Golden Valley Sun Post is hereby designated as the official   newspaper for the City of New Hope for the year 2023.      Adopted by the City Council of the City of New Hope, Hennepin County, Minnesota, this 9th  day of January, 2023.              ____________________________          Mayor      Attest:________________________     City Clerk  i:\rfa\city manager\2023\6.7 q&r‐apt depositories payroll.docx   Request for Action  January 9, 2023    Approved by: Tim Hoyt, Acting City Manager  Originating Department: City Manager  By: Valerie Leone, City Clerk‐Treas.    Agenda Title  Resolution designating Wells Fargo as depository for payroll account and general or special funds of the City  of New Hope  Requested Action  Staff recommends the continuation of Wells Fargo as the city’s official depository for the payroll and general  accounts of the city.  Policy/Past Practice  The City must designate its official depository on an annual basis.  Background  The City previously utilized the services of Marquette Bank N.A. until July of 2002 when they ceased operations.  Since that time, the City has used Wells Fargo for the official depository for the payroll account and general  account.    The Mayor, Mayor Pro tem, City Manager and City Clerk are listed as the official signatories.   Attachment   Resolution     Agenda Section Consent Item Number  6.7      City of New Hope    Resolution No. 2023‐    Resolution designating Wells Fargo as depository for  payroll account and general or special funds of the city of New Hope       BE IT RESOLVED, that Wells Fargo (New Hope Office) is hereby designated as the depository for    the city Payroll and General Fund Accounts for the year 2023.   BE IT FURTHER RESOLVED, that any of the below listed officers of this municipal corporation   are authorized in the name and on behalf of the City of New Hope, to open or cause to  be opened or to continue or cause to be continued an account or accounts with said bank  and to execute and deliver to said bank, signature card or cards supplied by said bank  containing said bank’s usual customer agreement applicable to such account or accounts  and the signatures of the officers or other persons hereinafter named and that any officer  of this municipal corporation or any other persons hereinafter named in hereby  authorized, for and on behalf of this corporation or otherwise, to endorse or cause to be  endorsed, to negotiate or cause to be negotiated, or to deposit or cause to be deposited in  such account or accounts any money, checks, drafts, orders, notes or other instruments  payable to or held by this corporation.    BE IT RESOLVED, that checks, drafts, or other withdrawal orders on funds deposited in such  account or accounts may be signed by any three of the following:  Kathi Hemken,  Mayor, or Michael Isenberg, Mayor Pro tem; plus Tim Hoyt, Acting City Manager;  Valerie Leone, City Clerk/Treasurer; and said bank is hereby fully authorized to pay and  charge to such account or accounts, any checks, drafts, or other withdrawal orders  signed, whether or not payable to the individual order of any of the foregoing officers or  persons or deposited or otherwise applied to his individual account or signatures of the  aforementioned officers or persons shall be as follows:     ___________________________________ Mayor, or   Kathi Hemken    ___________________________________ Mayor Pro tem, plus    Michael Isenberg    ___________________________________ Acting City Manager, or    Tim Hoyt    ___________________________________ City Clerk/Treasurer    Valerie Leone              Adopted by the City Council of the City of New Hope, Hennepin County, Minnesota, this 9th  day of January, 2023.              ____________________________          Mayor      Attest:________________________     City Clerk  I:\RFA\City Manager\2023\6.8 Q&R apt depositories investments 01.09.23.docx   Request for Action  January 9, 2023    Approved by: Tim Hoyt, Acting City Manager  Originating Department: City Manager  By: Valerie Leone, City Clerk‐Treas.    Agenda Title  Resolution designating depositories for funds of the City of New Hope relative to investments  Requested Action  Staff recommends naming the following financial institutions as official depositories for purposes of investing  City funds as authorized by state statutes:  Wells Fargo Investment Services  PMA Financial Network/Securities, Inc. 4M  Policy/Past Practice  In accordance with state statutes, the city must designate its official depositories on an annual basis.  Background  The city’s investment policy is part of the Financial Management Plan (last revised Nov. 14, 2022). Both the short‐ term and long‐term portions of the portfolio are being managed by the city’s financial consultant, Abdo, and  these depositories were confirmed with Abdo.  Attachment   Resolution     Agenda Section Consent Item Number  6.8      City of New Hope    Resolution No. 2023‐    Resolution designating depositories for funds  of the City of New Hope relative to investments    BE IT RESOLVED, the following named financial institutions are hereby designated as official   depositories for purposes of investing City funds as authorized by State Statutes:       Wells Fargo Investment Services  PMA Financial Network/Securities, Inc. 4M    BE IT FURTHER RESOLVED, that  1. Prior to City deposits being made in any of the above named depositories, collateral in  at least 110% of the amount of deposit shall be pledged to the City of New Hope.   Mortgage notes must be pledged at 140% of deposit.  2. The hereinafter designated officers are authorized to invest the city funds from time to  time with above named financial institutions and that said associations are hereby  authorized to act without further inquiry in accordance with writings bearing the  signatures of three such officers and of further authorization for other individuals to so  sign, together with a specimen of the signature of each such individual.  3. The designated officers and specimen signatures are as follows:       ________________________________Mayor, or     Kathi Hemken       ________________________________Mayor Pro tem, plus     Michael Isenberg       ________________________________Acting City Manager, or     Tim Hoyt       ________________________________City Clerk‐Treasurer     Valerie Leone      Adopted by the City Council of the City of New Hope, Hennepin County, Minnesota, this 9th  day of January, 2023.            ____________________________          Mayor    Attest:________________________     City Clerk  I:\RFA\City Manager\2023\6.9 Q&R ‐ EFT payments 01.09.23.docx    Request for Action  January 9, 2023    Approved by: Tim Hoyt, Acting City Manager  Originating Department: City Manager  By: Valerie Leone, City Clerk‐Treas.    Agenda Title  Resolution delegating authority to the city manager to pay claims prior to city council approval and  make electronic funds transfers for the payment of claims for 2023  Requested Action  Staff recommends that the Council adopt the resolution regarding the payment of financial claims.   Background  At each council meeting, as item 6.2, the City Council approves financial claims covering checks and electronic  payments made since the previous council meeting. In accordance with state statutes 412.271 and 471.38 Council  must adopt a resolution authorizing the payment of claims prior to Council approval and delegate authority to  make electronic funds transfers.    It is necessary to adopt a resolution on an annual basis regarding financial claims.  Attachment   Resolution     Agenda Section Consent Item Number  6.9      City of New Hope    Resolution No. 2023 ‐    Resolution delegating authority to the city manager to  pay claims prior to city council approval and make  electronic funds transfers  for the payment of claims for 2023        WHEREAS,  Minnesota Statute 412.271 Subd. 8. requires the City Council delegate    authority to pay claims prior to City Council approval; and    WHEREAS, Minnesota Statute 471.38 Subd. 3a. requires the City Council annually delegate  authority to make electronic funds transfers; and     WHEREAS, the City uses electronic funds transfers whenever possible as they are much  more efficient and eliminates the risk of lost or mishandled check payments; and     WHEREAS, all electronic funds transfers are subject to:  1. Annual City Council designation of authority to the City Manager and his  designee;  2. The cityʹs internal control procedures;   3. A list of all electronic transactions to be submitted for approval to City Council  at its next regular meeting.    NOW, THEREFORE, BE IT RESOLVED that authority to make electronic funds transfers and pay  claims prior to City Council approval shall be delegated to City Manager and   his designee.      Adopted by the City Council of the City of New Hope, Hennepin County, Minnesota, this 9th day of  January, 2023.                 ______________________________           Mayor    Attest: ________________________            City Clerk  I:/RFA/City Manager/2023/6.10 Q&R‐Apt HRG Board 01.09.23   Request for Action  January 9, 2023    Approved by: Tim Hoyt, Acting City Manager  Originating Department: City Manager  By: Valerie Leone, City Clerk‐Treas.    Agenda Title  Resolution appointing Tim Hoyt as director to the HRG Board  Requested Action  Staff recommends that the Council re‐appoint Acting City Manager Tim Hoyt as Director to the HRG Board.  Background  As a requirement of the HRG Joint Powers Agreement, each City Council of the Hennepin Recycling Group must  appoint their City Manager as HRG Director on an annual basis.    Acting City Manager Tim Hoyt has been serving on the Board since Kirk McDonald’s retirement of June 1,  2022. The resolution appoints Tim Hoyt as the city’s HRG director until December 31, 2023, or until the City  Manager position is appointed by the City Council.   Attachment   Resolution     Agenda Section Consent Item Number  6.10      City of New Hope    Resolution No. 2023 ‐    Resolution appointing Tim Hoyt  as director to the HRG Board      WHEREAS,  as a requirement of the HRG Joint Powers Agreement, each City Council of the Hennepin  Recycling Group must appoint a HRG Director on an annual basis; and    WHEREAS, as Acting City Manager, it is appropriate to appoint Tim Hoyt to serve as New Hopeʹs HRG  Director.    NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of New Hope hereby appoints   Mr. Tim Hoyt, Acting City Manager, as Director to the HRG Board for a term expiring  December 31, 2023, or until the City Manager position is appointed by the City Council.    Adopted by the City Council of the City of New Hope, Hennepin County, Minnesota, this 9th day of  January, 2023.                 ______________________________           Mayor    Attest: ________________________            City Clerk  I:\RFA\City Manager\2023\6.11 Q‐Apt Weed Inspector 01.09.23.Docx   Request for Action  January 9, 2023    Approved by: Tim Hoyt, Acting City Manager  Originating Department: City Manager  By: Valerie Leone, City Clerk‐Treas.    Agenda Title  Appointment of assistant weed inspector for 2023  Requested Action  Staff recommends the appointment of Shawn Markham, Contract Manager/City Forester, as the City’s Assistant  Weed Inspector.  Background  State Statute 18.80, subd. 3 requires cities to appoint an Assistant Weed Inspector on an annual basis. By law, the  official Weed Inspector is the Mayor.    Agenda Section Consent Item Number  6.11  I:\RFA\CITY MANAGER\2023\BD OF APPEAL ‐ SET MTG\6.12 Q ‐ BD OF APPEAL DATE.DOCX    Request for Action  January 9, 2023    Approved by: Tim Hoyt, Acting City Manager  Originating Department: City Manager  By: Valerie Leone, City Clerk‐Treas.    Agenda Title  Approval of April 13, 2023, as date for the Local Board of Appeal and Equalization Meeting  Requested Action  Staff recommends the City hold the Local Board of Appeal and Equalization on Thursday, April 13, at 7:00 p.m.  Policy/Past Practice  The City Council serves as the Board of Appeal and Equalization in New Hope. The hearing provides an  opportunity for property owners to question their property valuations. Appeals may be made in person or in  writing. The Board must meet between April 1 and May 31.  Background  The County requests that the City schedule its Local Board of Appeal and Equalization Meeting dates as soon as  possible. After the initial meeting, the Board must reconvene within twenty calendar days. Staff recommends April  13, at 7:00 p.m. as the initial date and April 24, at 6:30 p.m. (prior to the Council Meeting) as the reconvened meeting  date.    The county assessors are willing to meet with the Council at a work session prior to the actual meeting if so desired  by the Council. In this past this has served as an opportunity to familiarize the Council with property valuations,  sales information, and the Council’s role as Board of Equalization.    Residents will be notified of the Board of Appeal and Equalization meeting in their tax statements and city  publications (newsletter article). The law requires attendance at the local board meeting by at least one voting  member who has, within the last four years, attended the training course, and New Hope meets the  requirements (Elder and London’s certifications are effective until 7/1/24 and Isenberg’s certification is  effective until 7/1/25). On‐line training is available until February 1 at  https://www.revenue.state.mn.us/board‐appeal‐and‐equalization‐training.  Attachment   Hennepin County memorandum of proposed date    Agenda Section Consent Item Number  6.12  To: From: Date: Re: City Clerk/City Administrator of New Hope Laura Majewski 1RYHPEHU 2023 Local Board of Appeal and Equalization Meeting Thursday, April 13, 2023 7:00 PM Date Time Minnesota Statute 274.01, Subdivision 1, requires that the County Assessor set the date and time for your local board of appeal and equalization meeting. We are proposing the date and time referenced above. Please confirm the above date and time or if you wish to change the date, send me an alternative by January 11, 2023. We will try to accommodate the new date, but our staffing needs may not allow it. Also,SOHDVHSULQWRUW\SH the name of the local board of appeal and equalization board members and FKHFNWKHER[IRUWKHGHVLUHG meeting format. If you have any questions, please contact me at Laura.Majewski@hennepin.us. Please return this form to AO.Programs@hennepin.us . CONFIRMATION City:Board Member: Date: Board Member: Time:Board Member: Location:Board Member: Board Member: Board Member: Meeting Format: In Person Board Member: Hybrid Remote City Clerk/Administrator Signature I:\RFA\HR & Admin Svcs\Human Resources\2023\Council Meetings\Q&R - Section 125 Plan.docx Request for Action January 9, 2023 Approved by: Tim Hoyt, Acting City Manager Originating Department: HR & Admin Services By: Rich Johnson, Director of HR & Admin. Services Agenda Title Resolution Adopting the Revised City of New Hope Section 125 Plan Requested Action Staff recommends the revised City of New Hope Section 125 Plan be adopted Policy/Past Practice The city has had a Section 125 in place since 1987 and plan changes have been implemented over the years. The Section 125 plan provides employees with tax-advantaged benefits, including a Health Savings Account (HSA), Flexible Spending Account (FSA), and the ability to use pre-tax dollars for health, dental and life insurance premiums. Background The attached City of New Hope Section 125 Plan has been updated to reflect current Internal Revenue Service regulations and in particular the verbiage in Section 6.2(c) which addresses how reimbursement to an employee’s limited flexible spending account (FSA) is handled. The attached 125 plan was updated by Alerus, the city’s 3rd party provider for FSA accounts. Attachments • Resolution • City of New Hope Section 125 Plan Agenda Section Consent Item Number 6.13 City of New Hope Resolution No. 2023 – Resolution adopting the revised City of New Hope Section 125 Plan WHEREAS, the employer desires to provide its employees with certain tax-advantaged benefits and to allow its employees to select from the benefits offered; and WHEREAS, the employer hereby adopts the revised Section 125 plan; and WHEREAS, the New Hope City Council authorizes city officials to execute necessary documents. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the city of New Hope, Minnesota, hereby adopts the revised Section 125 plan. Adopted by the New Hope City Council, Hennepin County, Minnesota, this 9th day of January, 2023. Mayor Attest:__________________________________________ City Clerk CITY OF NEW HOPE SECTION 125 PLAN AND ALL SUPPORTING FORMS HAVE BEEN PRODUCED FOR ALERUS RETIREMENT AND BENEFITS Copyright 2015 SunGard All Rights Reserved CITY OF NEW HOPE SECTION 125 PLAN TABLE OF CONTENTS ARTICLE I DEFINITIONS ARTICLE II PARTICIPATION 2.1 ELIGIBILITY .......................................................................................................................................................................... 2 2.2 EFFECTIVE DATE OF PARTICIPATION .............................................................................................................................. 2 2.3 APPLICATION TO PARTICIPATE ......................................................................................................................................... 2 2.4 TERMINATION OF PARTICIPATION .................................................................................................................................... 3 2.5 CHANGE OF EMPLOYMENT STATUS ................................................................................................................................ 3 2.6 TERMINATION OF EMPLOYMENT ...................................................................................................................................... 3 2.7 DEATH .................................................................................................................................................................................. 3 ARTICLE III CONTRIBUTIONS TO THE PLAN 3.1 SALARY REDIRECTION ....................................................................................................................................................... 4 3.2 APPLICATION OF CONTRIBUTIONS .................................................................................................................................. 4 3.3 PERIODIC CONTRIBUTIONS ............................................................................................................................................... 4 ARTICLE IV BENEFITS 4.1 BENEFIT OPTIONS .............................................................................................................................................................. 4 4.2 HEALTH FLEXIBLE SPENDING ACCOUNT BENEFIT ......................................................................................................... 4 4.3 DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT BENEFIT ...................................................................................... 4 4.4 HEALTH INSURANCE BENEFIT .......................................................................................................................................... 5 4.5 DENTAL INSURANCE BENEFIT .......................................................................................................................................... 5 4.6 GROUP-TERM LIFE INSURANCE BENEFIT ........................................................................................................................ 5 4.7 DISABILITY INSURANCE BENEFIT ..................................................................................................................................... 5 4.8 ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE BENEFIT ............................................................................ 5 4.9 HEALTH SAVINGS ACCOUNT BENEFIT ............................................................................................................................. 5 4.10 NONDISCRIMINATION REQUIREMENTS ........................................................................................................................... 6 ARTICLE V PARTICIPANT ELECTIONS 5.1 INITIAL ELECTIONS ............................................................................................................................................................. 6 5.2 SUBSEQUENT ANNUAL ELECTIONS ................................................................................................................................. 6 5.3 FAILURE TO ELECT ............................................................................................................................................................. 6 5.4 CHANGE IN STATUS ........................................................................................................................................................... 6 ARTICLE VI HEALTH FLEXIBLE SPENDING ACCOUNT 6.1 ESTABLISHMENT OF PLAN ................................................................................................................................................ 8 6.2 DEFINITIONS ........................................................................................................................................................................ 8 6.3 FORFEITURES ..................................................................................................................................................................... 9 6.4 LIMITATION ON ALLOCATIONS .......................................................................................................................................... 9 6.5 NONDISCRIMINATION REQUIREMENTS ........................................................................................................................... 10 6.6 COORDINATION WITH CAFETERIA PLAN ......................................................................................................................... 10 6.7 HEALTH FLEXIBLE SPENDING ACCOUNT CLAIMS .......................................................................................................... 10 6.8 DEBIT AND CREDIT CARDS ................................................................................................................................................ 10 ARTICLE VII DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT 7.1 ESTABLISHMENT OF ACCOUNT ........................................................................................................................................ 11 7.2 DEFINITIONS ........................................................................................................................................................................ 11 7.3 DEPENDENT CARE FLEXIBLE SPENDING ACCOUNTS .................................................................................................... 12 7.4 INCREASES IN DEPENDENT CARE FLEXIBLE SPENDING ACCOUNTS .......................................................................... 12 7.5 DECREASES IN DEPENDENT CARE FLEXIBLE SPENDING ACCOUNTS ........................................................................ 12 7.6 ALLOWABLE DEPENDENT CARE REIMBURSEMENT ....................................................................................................... 12 7.7 ANNUAL STATEMENT OF BENEFITS ................................................................................................................................. 12 7.8 FORFEITURES ..................................................................................................................................................................... 13 7.9 LIMITATION ON PAYMENTS ............................................................................................................................................... 13 7.10 NONDISCRIMINATION REQUIREMENTS ........................................................................................................................... 13 7.11 COORDINATION WITH CAFETERIA PLAN ......................................................................................................................... 13 7.12 DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT CLAIMS ........................................................................................ 13 7.13 DEBIT AND CREDIT CARDS ................................................................................................................................................ 14 ARTICLE VIII BENEFITS AND RIGHTS 8.1 CLAIM FOR BENEFITS ........................................................................................................................................................ 15 8.2 APPLICATION OF BENEFIT PLAN SURPLUS ..................................................................................................................... 15 ARTICLE IX ADMINISTRATION 9.1 PLAN ADMINISTRATION...................................................................................................................................................... 15 9.2 EXAMINATION OF RECORDS ............................................................................................................................................. 16 9.3 PAYMENT OF EXPENSES ................................................................................................................................................... 16 9.4 INSURANCE CONTROL CLAUSE ........................................................................................................................................ 16 9.5 INDEMNIFICATION OF ADMINISTRATOR .......................................................................................................................... 17 ARTICLE X AMENDMENT OR TERMINATION OF PLAN 10.1 AMENDMENT ....................................................................................................................................................................... 17 10.2 TERMINATION ...................................................................................................................................................................... 17 ARTICLE XI MISCELLANEOUS 11.1 PLAN INTERPRETATI ON ..................................................................................................................................................... 17 11.2 GENDER AND NUMBER ...................................................................................................................................................... 17 11.3 WRITTEN DOCUMENT ........................................................................................................................................................ 17 11.4 EXCLUSIVE BENEFIT .......................................................................................................................................................... 17 11.5 PARTICIPANT'S RIGHTS ..................................................................................................................................................... 17 11.6 ACTION BY THE EMPLOYER .............................................................................................................................................. 17 11.7 EMPLOYER'S PROTECTIVE CLAUSES .............................................................................................................................. 18 11.8 NO GUARANTEE OF TAX CONSEQUENCES ..................................................................................................................... 18 11.9 INDEMNIFICATION OF EMPLOYER BY PARTICIPANTS .................................................................................................... 18 11.10 FUNDING .............................................................................................................................................................................. 18 11.11 GOVERNING LAW ................................................................................................................................................................ 18 11.12 SEVERABILITY ..................................................................................................................................................................... 18 11.13 CAPTIONS ............................................................................................................................................................................ 18 11.14 CONTINUATION OF CO VERAGE (COBRA) ........................................................................................................................ 18 11.15 HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA) .................................................................... 18 11.16 UNIFORMED SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT (USERRA) ............................................ 18 11.17 COMPLIANCE WITH HIPAA PRIVACY STANDARDS .......................................................................................................... 19 11.18 COMPLIANCE WITH HIPAA ELECTRONIC SECURITY STANDARDS ................................................................................ 20 11.19 MENTAL HEALTH PARITY AND ADDICTION EQUITY ACT ................................................................................................ 20 11.20 GENETIC INFORMATION NONDISCRIMINATION ACT (GINA) .......................................................................................... 20 11.21 WOMEN'S HEALTH AND CANCER RIGHTS ACT ............................................................................................................... 20 11.22 NEWBORNS' AND MOTHERS' HEALTH PROTECTION ACT ............................................................................................. 20 1 CITY OF NEW HOPE SECTION 125 PLAN INTRODUCTION The Employer has amended this Plan effective January 1, 2022, to recognize the contribution made to the Employer by its Employees. Its purpose is to reward them by providing benefits for those Employees who shall qualify hereunder and their Dependents and beneficiaries. The concept of this Plan is to allow Employees to choose among different types of benefits base d on their own particular goals, desires and needs. This Plan is a restatement of a Plan which was ori ginally effective on July 1, 2015. The Plan shall be known as City of New Hope Section 125 Plan (the "Plan"). The intention of the Employer is that the Plan qualify as a "Cafeteria Plan" within the meaning of Section 125 of the Internal Revenue Code of 19 86, as amended, and that the benefits which an Employee elects to receive under the Plan be excludable from the Employee's income under Section 125(a) and other applicable sections of the Internal Revenue Co de of 1986, as amended. ARTICLE I DEFINITIONS 1.1 "Administrator" means the Employer unless another person or entity has been designated by the Employer pursuant to Section 9.1 to administer the Plan on behalf of the Employer. If the Employer is the Administrator, the Employer may appoint any person, including, but not limited to, the Employees of the Employer, to perform the duties of the Administrator. Any person so appointed shall signify acceptance by filing written acceptance with the Employer. Upon the resignation or removal of any individual performing the duties of the Administrator, the Employer may designate a successor. 1.2 "Affiliated Employer" means the Employer and any corp oration which is a member of a controlled group o f corporations (as defined in Code Section 414(b)) which includes the Employer; any trade or business (whether or not incorpora ted) which is under common control (as defined in Code Section 414(c)) with the Employer; any organization (whether or not incorp orated) which is a member of an affiliated service group (as defined in Code Section 414(m)) which includes the Employer; and any oth er entity required to be aggregated with the Employer pursuant to Treasury regulations under Code Section 414(o). 1.3 "Benefit" or "Benefit Options" means any of the optional benefit choices available to a Participant as outlined i n Section 4.1. 1.4 "Cafeteria Plan Benefit Dollars" means the amount available to Participants to purchase Benefit Options as provided under Section 4.1. Each dollar contributed to this Plan shall be converted i nto one Cafeteria Plan Benefit Dollar. 1.5 "Code" means the Internal Revenue Code of 1986, as amended or replaced from time to time. 1.6 "Compensation" means the amounts received by the Participant from the Employer during a Plan Year. 1.7 "Dependent" means any individual who qualifies as a dependent under an Insurance Contract for purposes of coverage under that Contract only or under Code Section 152 (as modified by Code Section 105(b)). "Dependent" shall include any Child of a Participant who is cov ered under an Insurance Contract, as defined in the Contract, or under the Health Flexible Spending Account or as allowed by reason of the Affordable Care Act. For purposes of the Health Flexible Spending Account, a Participant's "Child" includes his/her natural child, stepchild, foster child, adopted c hild, or a child placed with the Participant for adoption. A Participant's Child will be an eligible Dependent until reaching the limiting age of 26, without regard to student status, marital status, financi al dependency or residency status with the Employee or any other person. When the child reaches the applicable limiting age, coverage will end at the end of the calendar year. The phrase "placed for adoption" refers to a child whom the Participant intends to adopt, whether or not the adoption has become final, who has not attained the age of 18 as of the date of such placement for adoption. The term "placed" means the assumpti on and retention by such Employee of a legal obligation for total or partial supp ort of the child in anticipation of adoption of t he child. The child must be available for adoption and the legal process must have commenced. 1.8 "Effective Date" means July 1, 2015. 1.9 "Election Period" means the period immediately preceding the begin ning of each Plan Year established by the Administrator, such period to be applied on a uniform and nondiscriminatory basis for all Employees and Participants. However, an Employee's initial Election Period shall be determined pursuant to Section 5.1. 1.10 "Eligible Employee" means any Employee who has satisfied the provisions of Section 2.1. An individual shall not be an "Eligible Employee" if such individual is not reported on the payroll records of the Employer as a common law employee. In particular, it is expressly intended that individuals not treated as common law employees by the Employer on its payroll records are not "Eligible Employees" and are excluded from Plan participation even if a court or administrative agency determines that such individuals are common law employees and not independent contractors. 2 Also, any Employee or former Employee shall not be eligible to participate in this Plan unless he is eligible to receive medical benefits pursuant t o a group medical plan sponsored by the Employer. 1.11 "Employee" means any person who is employed by the Employer. The term Employee shall include leased employees within the meaning of Code Section 414(n)(2). 1.12 "Employer" means City of New Hope and any successor which shall maintain this Plan; and any predecessor which has maintained this Plan. In addition, where appropriate, the term Employer shall include any Participating, Affiliated or Adopting Employer. 1.13 "Insurance Contract" means any contract issued by an Insurer underwriting a Benefit. 1.14 "Insurance Premium Payment Plan" means the plan of benefits contained in Section 4.1 of this Plan, which provides for the payment of Premium Expenses. 1.15 "Insurer" means any insurance company that underwrites a Benefit under this Plan. 1.16 "Key Employee" means an Employee described in Code Section 416(i)(1) and the Treasury regulations thereunder. 1.17 "Participant" means any Eligible Employee who elects to become a Participant pursuant to Section 2.3 and has not for any reason become ineligible to participate further in the Plan. 1.18 "Plan" means this instrument, including all amendments thereto. 1.19 "Plan Year" means the 12-month period beginning January 1 and ending December 31. The Plan Year shall be the coverage period for the Benefits provided for under this Plan. In the event a Participant commences participation during a Plan Year, then the initial coverage period shall be that portion of the P lan Year commencing on such Participant's date of entry and ending on the last day of such Plan Year. 1.20 "Premium Expenses" or "Premiums" mean the Participant's cost for the Benefits described in Section 4.1. 1.21 "Premium Expense Reimbursement Account" means the account established for a Participant pursuant to this Plan to which part of his Cafeteria Plan Benefit Dollars may be allocated and from which Premiums of the Participant shall be paid or reimbursed. If more than one type of insured Benefit is elected, sub -accounts shall be established for each type of insured Benefit. 1.22 "Salary Redirection" means the contributions made by the Employer on behalf of Participants pursuant to Section 3.1. These contributions shall be converted to Cafeteria Plan Benefit Dollars and allocated to the funds or accounts established under the Plan pursuant to the Participants' elections made under Article V. 1.23 "Salary Redirection Agreement" means an agreement between th e Participant and the Employer under which the Participant agrees to reduce his Compensation or to forego all or part of the increases in such Compensation and to have such amounts contributed by the Employer to the Plan on the Participant's behalf. The Sa lary Redirection Agreement shall apply only to Compensation that has not been actually or constructively received by the Participant as of the date of the agreement (after ta king this Plan and Code Section 125 into account) and, subsequently does not becom e currently available to the Participant. 1.24 "Spouse" means spouse as determined under Federal law. ARTICLE II PARTICIPATION 2.1 ELIGIBILITY Any Eligible Employee shall be eligible to participate hereunder as of the date he satisfies the eligibility conditions for t he Employer's group medical plan, the provisions of which are spec ifically incorporated herein by reference. However, any Eligible Employee who was a Participant in the Plan on the effective date of this amendment shall continue to be eligible to participa te in the Plan. 2.2 EFFECTIVE DATE OF PARTICIPATION An Eligible Employee shall become a Participant effective as of the date on which he satisfies the requirements of Section 2.1. 2.3 APPLICATION TO PARTICIPATE An Employee who is eligible to participate in this Plan sh all, during the applicable Election Period, compl ete an application to participate in a manner set forth by the Administrator. The election shall be irrevocable until the end of the applicable Pla n Year unless the Participant is entitled to change his Bene fit elections pursuant to Section 5.4 hereof. 3 An Eligible Employee shall also be required to complete a Salary Redirection Agreement during the Election Period for the Plan Year during which he wishes to participate in this Plan. Any such Salary Redirection Agreement shall be effective for the first pay period beginning on or after the Employee's effective date of participation pursuant to Section 2.2. Notwithstanding the foregoing, an Employee who is eligible t o participate in this Plan and who is covered by the Employer's insured Benefits under this Plan shall automatically become a Participant to the extent of the Premiums for such insurance un less the Employee elects, during the Election Period, not to partic ipate in the Plan. 2.4 TERMINATION OF PARTICIPATION A Participant shall no longer participate in this Plan upon the occurrence of any of the following events: (a) Termination of employment. The Participant's termination of employment, subject to the provisions of Section 2.6; (b) Change in employment status. The end of the Plan Year during which the Participant became a limited Participant because of a change in employment status pursuan t to Section 2.5; (c) Death. The Participant's death, subject to the provisions of Section 2.7; or (d) Termination of the plan. The termination of this Plan, subject to the provisions of Section 10.2. 2.5 CHANGE OF EMPLOYMENT STATUS If a Participant ceases to be eligible to participate because of a change in employment status or classification (ot her than through termination of employment), the Participant shall become a limited Participant in this Plan for the remainder of the Plan Year in which such change of employment status occurs. As a limited Participant, no further Salary Redirection may be made on behalf of the Participant, and, except as otherwise provided herein, all further Benefit elections shall cease , subject to the limited Participant's right to continue coverage under any Insurance Co ntracts. However, any balances in the limited Par ticipant's Dependent Care Flexible Spending Account may be used during such Plan Year to reimburse the limited Participant for any allowable Employment - Related Dependent Care incurred during the Plan Year. Subject to the provisions of Section 2.6, if the limited Participant later becomes an Eligible Employee, then the limited Participant may again become a full Participant in this Plan, provided he othe rwise satisfies the participation r equirements set forth in this Article II as if he were a new Employee and made an election in accordance with Section 5.1. 2.6 TERMINATION OF EMPLOYMENT If a Participant's employment with the Employer is terminated for any reason other than death, his participation in the Benef it Options provided under Section 4.1 shall be governed in accordance with the following: (a) Insurance Benefit. With regard to Benefits which are insured, the Participant's participation in the Plan shall cease, subject to the Participant's right to continue coverage under any Insurance Contract for wh ich premiums have already been paid. (b) Dependent Care FSA. With regard to the Dependent Care Flexible Spending Account, the Participant's participation in the Plan shall cease and no further Salary Redirection contributions shall be made . However, such Participant may submit claims for employment rela ted Dependent Care Expense reimbursements for claims incurred through the remainder of the Plan Year in which such termination occurs and submitted within 90 days after the end of the Plan Year, based on the level of the Participant's Dependent Care Flexib le Spending Account as of the date of termination. (c) COBRA applicability. With regard to the Health Flexible Spending Account, the Participant may submit claims for expenses that were incurred during the portion of the Plan Year before the end of the pe riod for which payments to the Health Flexible Spending Account have already been made. Thereafter, the health benefits under this Plan including the Health Flexible Spending Account shall be applied and administered consistent with such further rights a Participant and his Dependents may be entitled to pursuant to Code Section 4980B and Section 11.14 of the Plan. 2.7 DEATH If a Participant dies, his participation in the Plan shall cease. However, such Participant's spouse or Dependents may submit claims for expenses or benefits for the remainder of the Plan Year or unti l the Cafeteria Plan Benefit Dollars allocated to each specific benefit are exhausted. In no event may reimbursements be paid to someone who is not a spouse or Dependent. If the Plan is subject to the provisions of Code Section 4980B, then those provisions and related regulations shall apply for purposes of the Health Flexible Spending Account. ARTICLE III CONTRIBUTIONS TO THE PLAN 4 3.1 SALARY REDIRECTION Benefits under the Plan shall be financed by Salary Redirections sufficient to support Benefits that a Participant has electe d hereunder and to pay the Participant's Premium Expenses. The salary administration program of the Employer shall be revised to allow each Participant to agree to reduce his pay during a Plan Year by an amount determined necessary to purchase the electe d Benefit Options. The amount of such Sa lary Redirection shall be specified in the Salary Redirection Agreement and shall be applicable for a Plan Year. Notwithstanding the above, for new Participants, the Salary Redirection Agreement shall only be applicable from the first day of the pay period following the Employee's entry date up to and in cluding the last day of the Plan Year. These contributions shall be converted to Cafeteria Plan Benefit Dollars and allocated to the funds or accounts established u nder the Plan pursuant to the Participants' elections made under Article IV. Any Salary Redirection shall be determined prior to the beginning of a Plan Year (subject to initial elections pursuant to Section 5.1) and prior to the end of the Election Period and shall be irrevo cable for such Plan Year. However, a Participant may revoke a Benefit election or a Salary Redirection Agreement after the Plan Year has commenced and make a new election with respect to the remainder of the Plan Year, if both the revocation and the new el ection are on account of and consistent with a ch ange in status and such other permitted events as determined under Article V of the Plan and consistent with the rules and regulat ions of the Department of the Treasury. Salary Redirection amounts shall be c ontributed on a pro rata basis for each pay period during the Plan Year. All individual Salary Redirection Agreements are deemed to be part of this Plan and incorporated by reference here under. 3.2 APPLICATION OF CONTRIBUTIONS As soon as reasonably practical after each payroll period, the Employer shall apply the Salary Redirection to provide the Benefits elected by the affected Participants. Any contribution made or withheld for the Health Flexible Spending Acc ount or Dependent Care Flexible Spending Account shall be credited to such fund or account. Amounts designated for the Participant's Premium Expense Reimbursement Account shall likewise be credited to such account for the purpose of paying Premium Expenses . 3.3 PERIODIC CONTRIBUTIONS Notwithstanding the requirement provided above and in other Articles of this Plan that Salary Redirections be contributed to the Plan by the Employer on behalf of an Employee on a level a nd pro rata basis for each payroll period, the Employer and Administrator may implement a procedure in which Salary Redirections are contributed throughout the Plan Year on a periodic b asis that is not pro rata for each payroll period. However, with regard to the Health Flexible Spending Account, the pay ment schedule for the required contributions may not be based on the rate or amount of reimbursements during the Plan Year. ARTICLE IV BENEFITS 4.1 BENEFIT OPTIONS Each Participant may elect any one or more of the following optional Benefits: (1) Health Flexible Spending Account (2) Dependent Care Flexible Spending Account (3) Health Savings Account Benefit In addition, except for the Health Savings Account Benefit, each Participant shall have a sufficient portion of his Salary Redirections applied to the following Benefits unless the Participant elects not to receive such Benefits: (4) Health Insurance Benefit (5) Dental Insurance Benefit (6) Group-Term Life Insurance Benefit (7) Disability Insurance Benefit (8) Accidental Death and Dismemberment Insurance Benefit 4.2 HEALTH FLEXIBLE SPENDING ACCOUNT BENEFIT Each Participant may elect to participate in the Health Flexible Spending Account option, in which case Article VI shall appl y. 4.3 DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT BENEFIT Each Participant may elect to participate in the Dependent Care Flexible Spending Account option, in which case Article VII shall apply. 5 4.4 HEALTH INSURANCE BENEFIT (a) Coverage for Participant and Dependents. Each Participant may elect to be covered under a health Insurance Contract for the Participant, his or her Spouse, and his or her Dependents. (b) Employer selects contracts. The Employer may select suitable health Insurance Contracts for use in providing this health insurance benefit, which policies will provide uniform benefits for all Participants electing this Bene fit. (c) Contract incorporated by reference. The rights and conditions with respect to the benefits payable from such health Insurance Contract shall be determined therefrom, and such Insurance Contract shall be incorporated herein by reference. 4.5 DENTAL INSURANCE BENEFIT (a) Coverage for Participant and/or Dependents. Each Participant may elect to be covered under the Employer's dental Insurance Contract. In addition, the Participant may elect either individual or family coverage under such Insurance Contract. (b) Employer selects contracts. The Employer may select suitable dental Insurance Contracts for use in providing this dental insurance benefit, which policies will provide uniform benefits for all Participants electing this Bene fit. (c) Contract incorporated by reference. The rights and conditions with respect to the benefits payable from such dental Insurance Contract shall be determined therefrom, and such dental Insurance Contract shall be incorporated herein by reference. 4.6 GROUP-TERM LIFE INSURANCE BENEFIT (a) Coverage for Participant only. Each Participant may elect to be covered under the Employer's group-term life Insurance Contract. (b) Employer selects contracts. The Employer may select suitable group -term life Insurance Contracts for use in providing this group-term life insurance benefit, which policies will provide benefits for all Participants electing this Benefit on a uniform basis. (c) Contract incorporated by reference. The rights and conditions with respect to the benefits payable from such group-term life Insurance Contract shall be determined therefrom, and such group -term life Insurance Contract shall be incorporated herein by reference. 4.7 DISABILITY INSURANCE BENEFIT (a) Coverage for Participant and/or Dependents. Each Participant may elect to be covered under the Employer's disability Insurance Contract. (b) Long term and/or short term coverage selected by Employer. The Employer may select suitable disability Insurance Contracts for use in prov iding this disability Benefit. The disability Insurance Contracts may provide for long-term or short-term coverage. (c) Contract incorporated by reference. The rights and conditions with respect to the Bene fits payable from such disability Insurance Contr act shall be determined therefrom, and such disability Insurance Contract shall be incorporated herein by reference. 4.8 ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE BENEFIT (a) Coverage for Participant and/or Dependents. Each Participant may elect to be covered under the Employer's accidental death and dismemberment Insurance Contract. (b) Employer selects contracts. The Employer may select suitable accidental death and dismemberment policies for use in providing this accidental death and dismemberment insurance benefit, which policies will provide uniform benefits for all Participants electing this Benefit. (c) Contract incorporated by reference. The rights and conditions with respect to the benefits payable from such accidental death and dismemberment Insurance Contract shall be determined therefrom, and such accidental death and dismemberment Insurance Contract shall be incorporated her ein by reference. 4.9 HEALTH SAVINGS ACCOUNT BEN EFIT Each Participant may elect to have a portion of his Salary Redirections contributed to a Health Savings Account, as defined in Code Section 223. The amounts contributed shall be subject to the terms of the Health Savings Account as established. 6 4.10 NONDISCRIMINATION REQUIREMENTS (a) Intent to be nondiscriminatory. It is the intent of this Plan to provide benefits to a classification of employees which the Secretary of the Treasury finds not to be discriminatory in favor of the group in whose favor discrimination may not occur under Code Section 125. (b) 25% concentration test. It is the intent of this Plan not to provide qualified benefits as defined under Code Section 125 to Key Employees in amounts that exceed 2 5% of the aggregate of such Benefits provided for all Eligible Employees under the Plan. For purposes of the preceding sentence, qualified benefits shall not include benefits which (without regard to this pa ragraph) are includible in gross income. (c) Adjustment to avoid test failure. If the Administrator deems it necessary to avoid discrimination or possible taxation to Key Employees or a group of employees in whose favor discrimination may not occur in vio lation of Code Section 125, it may, but shall not be required to, reduce contributions or non-taxable Benefits in order to assure compliance with the Code and regulations. Any act taken by the Administrator shall be carried out in a uniform and nondiscriminatory manner. With respect to any affected Participant who has had Benefits reduced pursuant to this Section, the reduction shall be made proportionately among Health Flexible Spending Account Benefits and Dependent Care Flexible Spending Account Benefits , and once all these Benefits are expended, propo rtionately among insured Benefits. Contributions which are not utilized to provide Benefits to any Participant by virtue of any administrative act under this paragraph shall be forfeited and deposited into t he benefit plan surplus. ARTICLE V PARTICIPANT ELECTIONS 5.1 INITIAL ELECTIONS An Employee who meets the eligibility requirements of Section 2.1 on the first day of, or during, a Plan Year may elect to participate in this Plan for all or the remainder of such Plan Year, provided he elects to do so o n or before his effective date of participation pursuant to Section 2.2. Notwithstanding the foregoing, an Employee who is eligible to participate in this Plan and who is covered by the Employer's insured benefits under this Plan sha ll automatically become a Participant to the exte nt of the Premiums for such insurance unless the Employee elects, during the Election Period, not to participate in the Plan. 5.2 SUBSEQUENT ANNUAL ELECTIONS During the Election Period prior to each subsequent Plan Year, each Participant shall be given the opportunity to elect, on an election of benefits form to be prov ided by the Administrator, which spending account Benefit options he wishes to select. Any such election shall be effective for any Benefit expenses incurred during the Plan Year which follows the end of the Election Period. With regard to subsequent annua l elections, the following options shall apply: (a) A Participant or Employee who failed to initially elect to participate may elect different or new Benefits under the Plan during the Election Period; (b) A Participant may terminate his participation in the Plan by notifying the Administrator in writ ing during the Election Period that he does not want to participate in the Plan for the next Plan Year; (c) An Employee who elects not to participate for the Plan Year following the Election Period will hav e to wait until the next Election Period before a gain electing to participate in the Plan, except as provided for in Section 5.4. 5.3 FAILURE TO ELECT With regard to Benefits available under the Plan for which no Premium Expenses apply, any Particip ant who fails to complete a new benefit election form pursuant to Section 5.2 by the end of the applicable Election Period shall be deemed to have elected not to participate in the Plan for the upcoming Plan Year. No further Salary Redirections shall therefore be authorized or made for the subsequent Plan Year for such Benefits. With regard to Benefits available under the Plan for which Premium Expenses apply, any Participant who fails to complete a new benefit election form pursuant to Section 5.2 by the end of the applicable Election Period shall be deemed to have made the same Benefit elections as are then in effect for the current Plan Year. The Participant shall also be deemed to have elected Salary Redirection in an amount necessary to purchase such Benefit options. 5.4 CHANGE IN STATUS (a) Change in status defined. Any Participant may change a Benefit election after the Plan Year (to which such election relates) has commenced and make new elections with respect to the remainder of such Plan Year if, under the facts and circumstances, the changes are necessitated by and are consistent with a change in status which is acceptable under rules and regulations adopted by the Department of the Treasury, the provisions of which are incorporated by reference. Notwithstanding anything herein to the contrary, if the rules and regulations conflict, then such rules and regulations shall control. 7 In general, a change in election is not consistent if the change in status is the Participant's divorce, annulment or legal separation from a Spouse, the death of a Spouse or Dependent, or a Dependent ceasing to satisfy the eligibility requirements for coverage, and the Participant's election under the Plan is to cancel accident or health insurance coverage for any individual other than the one involved in such event. In addition, if the Participant, Spouse or Dependent gains or loses eligibility for coverage, then a Participant's election under the Plan to cease or decrease coverage for that individual under the Plan corresponds with that change in status only if coverage for that individual becomes applicable or is increased under the family member plan. Regardless of the consistency requirement, if the individual, the individual's Spouse, or Dependent becomes eligible for continuation coverage under the Employer's group health plan as provided in Code Section 4980B or any similar state law, then the individual may elect to increase payments under this Plan in order to pay for the continuation coverage. However, th is does not apply for COBRA eligibility due to divorce, annulment or legal separation. Any new election shall be effective at such time as the Administrator shall prescribe, but not earlier than the first pay period beginning after the election form is completed and returned to the Administrator. For the purposes of this subsection, a change in status shall only include the following events or other events permitted by Treasury regulations: (1) Legal Marital Status: events that change a Participant's legal marital status, including marriage, div orce, death of a Spouse, legal separation or annulment; (2) Number of Dependents: Events that change a Participant's number of Dependents, including birth, adoption, placement for adoption, or death of a Dependent; (3) Employment Status: Any of the following events that change the employment status of the Participant, Spouse, or Dependent: termination or commencement of employment, a strike or lockout, commencement or return from an unpaid leave of absence, or a change in worksite. In addition, if the eli gibility conditions of this Plan or other employee benefit plan of the Employer of the Participant, Spouse, or Dependent depend on the employment status of that individual and there is a change in that individual's employment status with the consequence that the individual becomes (or ceases to be) eligible under the plan, then that change constitutes a change in employment under this subsection; (4) Dependent satisfies or ceases to satisfy the eligibility requirements: An event that causes the Participant's Dependent to satisfy or cease to satisfy the requirements for coverage due to attainment of age, student status, or any similar circumstance; and (5) Residency: A change in the place of residence of the Participant, Spouse or Dependent, that would lead to a change in status (such as a loss of HMO coverage). For the Dependent Care Flexible Spending Account, a Dependent becoming or ceasing to be a "Qualifying Dependent" as defined under Code Section 21(b) shall also qualify as a change in status. Notwithstanding anything in this Section to the contrary, the gain of eligibility or change in eligibility of a child, as allowed under Code Sections 105(b) and 106, and guidance thereunder, shall qualify as a change in status. (b) Special enrollment rights. Notwithstanding subsection (a), the Participants ma y change an election for group health coverage during a Plan Year and make a new election that corresponds with the special enrollment rights provided in Code Section 9801(f), including those authorized unde r the provisions of the Children's Health Insurance Program Reauthorization Act of 2009 (SCHIP); provided that such Participant meets the sixty (60) day notice requirement imposed by Code Section 9801(f) (or such longer period as may be permitted by the Pl an and communicated to Participants). Such change shall take place on a prospective basis, unless otherwise required by Code Section 9801(f) to be retroactive. (c) Qualified Medical Support Order. Notwithstanding subsection (a), in the event of a judgment , decree, or order (including approval of a prope rty settlement) ("order") resulting from a divorce, legal separation, annulment, or change in legal custody which requires accident or health coverage for a Participant's child (including a foster child who is a Dependent of the Participant): (1) The Plan may change an election to provide coverage for the child if the order requires coverage under the Participant's plan; or (2) The Participant shall be permitted to change an election to cancel coverage for the child if the order requires the former Spouse to provide coverage for such child, under that individual's plan and such coverage is actually provided. (d) Medicare or Medicaid. Notwithstanding subsection (a), a Participant may change elections to cancel or reduce accident or health coverage for the Participant or the Participant's Spouse or Dependent if the Participant or the Participant's Spouse or Dependent is enrolled in the accident or health coverage of the Employer and becomes entitled to coverage (i.e., enrolled) under Part A or Part B of the Title XVIII of the Social Security Act (Medicare) or Title XIX of the Social Security Act (Medicaid), other than coverage consisting solely of benefits under Section 1928 of the Social Security Act (the program for distribution of pediatric vaccines). If the Participant or the Participant's Spouse or Dependent who has been entitled to Medicaid or Medicare coverage loses eligibility, that individual may prospectively elect coverage under the Plan if a bene fit package option under the Plan provides similar coverage. 8 (e) Cost increase or decrease. If the cost of a Benefit provided under the Plan increases or decreases during a Plan Year, then the Plan shall automatically increase or decrease, as the case may be , the Salary Redirections of all affected Participants for such Benefit. Alternatively, if the cost of a benefit package option increases significantly, the Administrator shall permit the affected Participants to either make corresponding changes in their payments or revoke their elections and, in lieu thereof, receive on a prospective basis coverage under another benefit package option with similar coverage, or drop coverage prospectively if there is no benefit package option with similar coverage. A cost increase or decrease refers to an increase or de crease in the amount of elective contributions under the Plan, whether resulting from an action taken by the Participants or an action taken by the Employer. (f) Loss of coverage. If the coverage under a Benefit is significantly curtailed or ceases during a Plan Year, affected Participants may revoke their elections of such Benefit and, in lieu thereof, elect to receive on a prospective basi s coverage under another plan with similar coverage, or drop coverag e prospectively if no similar coverage is offered . (g) Addition of a new benefit. If, during the period of coverage, a new benefit package option or other coverage option is added, an existing benefit package option is significantly improved, or an existi ng benefit package option or other coverage optio n is eliminated, then the affected Participants may elect the newly -added option, or elect another option if an option has been eliminated prospectively and make corresponding election changes with respect t o other benefit package options providing similar coverage. In addition, those Eligible Employees who are not participating in the Plan may opt to become Participants and elect the new or newly improved benefit package option. (h) Loss of coverage under certain other plans. A Participant may make a prospective election change to add group health coverage for the Participant, the Participant's Spouse or Dependent if such individual loses group health coverage sponsored by a governmental or educational insti tution, including a state children's health insur ance program under the Social Security Act, the Indian Health Service or a health program offered by an Indian tribal government, a state health benefits risk pool, or a foreign government group health plan. (i) Change of coverage due to change under cert ain other plans. A Participant may make a prospective election change that is on account of and corresponds with a change made under the plan of a Spouse's, former Spouse's or Dependent's employer if (1) the cafeteria plan or other benefits plan of the Spo use's, former Spouse's or Dependent's employer permits its participants to make a change; or (2) the cafeteria plan permits participants to make an election for a period of coverage that is different from th e period of coverage under the cafeteria plan of a Spouse's, former Spouse's or Dependent's employer. (j) Change in dependent care provider. A Participant may make a prospective election change that is on account of and corresponds with a change by the Pa rticipant in the dependent care provider. The ava ilability of dependent care services from a new childcare provider is similar to a new benefit package option becoming available. A cost change is allowable in the Dependent Care Flexible Spending Account only if the cost change is imposed by a dependent c are provider who is not related to the Participant, as defined in Code Section 152(a)(1) through (8). (k) Health FSA cannot change due to insurance change. A Participant shall not be permitted to change an election to the Health Flexible Spending Account as a result of a cost or coverage change under any health insurance benefits. (l) Health Savings Account changes. With regard to the Health Savings Account Benefit specified in Section 4.9, a Participant who has elected to make elect ive contributions under such arrangement may modify or revoke the election prospectively, provided such change is consistent with Code Section 223 and the Treasury regulations thereunder. (m) Restrictions on Changes to Health Flexible Spending Account Elections. Notwithstanding anything herein to the contrary, an election change allowed hereunder with respect to the Health Flexible Spending Account will not be effective to the extent that the electi on change would reduce future contributions to the Health Flexible Spending Account to a point where the total contributions to such Benefit for the Plan Yea r are less than the amount of reimbursements provided for the Plan Year under such plan as of the d ate on which the election change is effective. ARTICLE VI HEALTH FLEXIBLE SPENDING ACCOUNT 6.1 ESTABLISHMENT OF PLAN This Health Flexible Spending Account is intended to qualify as a medical reimbursement plan under Code Section 105 and shall be interpreted in a manner consistent with such Code Section and the Treasury regulations thereunder. Participants who elect to participate in this Health Flexible Spending Account may submit claims for the reimbursement of Medical Expenses. All amounts reimbursed shall be periodically paid from amounts allocated to the Health Flexible Spending Account. Periodic payments reimbursing Participants from the Health Flexible Spending Account shall in no event occur less frequently than monthly. There is an additional "limited FSA" designed to coordinate with a Health Savings Account and high deductible health plan. 6.2 DEFINITIONS For the purposes of this Article and the Cafeteria Plan, the terms below have the following meaning: 9 (a) "Health Flexible Spending Account" means the account established for Participants pursuant to this Plan to which part of their Cafeteria Plan Benefit Dollars may be allocated and from which all allowable Medical Expenses incurred by a Participant, his or her Spouse and his or her Dependents may be reimbursed. (b) "Highly Compensated Participant" means, for the purposes of this Article and determining discrimination under Code Section 105(h), a participant who is: (1) one of the 5 highest paid officers; (2) a shareholder who owns (or is considered to own applying the rules of Code Section 318) more than 10 percent in value of the stock of the Employer; or (3) among the highest paid 25 percent of all Employees (other than exclusions permitted by Code Section 105(h)(3)(B) for those individuals who are not Participants). (c) "Medical Expenses" means any expense for medical care within the meaning of the term "m edical care" as defined in Code Section 213(d) and the rulings and Treasury regulations thereunder, and not otherwi se used by the Participant as a deduction in determining his tax liability under the Code. "Medical Expenses" can be incurred by the Participant, his or her Spouse and his or her Dependents . "Incurred" means, with regard to Medical Expenses, when the Participant is provided with the medical care that gives rise to the Medical Expense and not when the Participant is formally billed or charged fo r, or pays for, the medical care. A Participant who elects to contribute to a Health Savings Account may only be r eimbursed for medical expenses that are considered to be for dental or vision expenses as allowed under Code Section 223; however, once such Participant has satisfied the minimum annual deductible under Code Section 223, all medical expenses may be reimbur sed. A Participant may not be reimbursed for the cost of any medicine or drug that is not "prescribed" within the meaning of Code Section 10 6(f) or is not insulin. A Participant may not be reimbursed for the cost of other health coverage such as premiums paid under plans maintained by the employer of the Participant's Spouse or individual policies maintained by the Participant or his Spouse o r Dependent. A Participant may not be reimbursed for "qualified long-term care services" as defined in Code Section 7702B(c). (d) The definitions of Article I are hereby incorporated by reference to the extent necessary to interpret and apply the provisions of this Health Flexible Spending Account. 6.3 FORFEITURES The amount in the Health Flexible Spending Account as of the end of any Plan Year (and after the processing of all claims for such Plan Year pursuant to Section 6.7 hereof, excluding any carryover) shall be forfeited and credited to the benefit plan surplus. In such event, the Participant shall have no further claim to such amount for any reason, subject to Section 8.2. 6.4 LIMITATION ON ALLOCATIONS (a) Notwithstanding any provision contained in this Health Flexible Spending Account to the contrary, the maximum amount of salary reductions that may be allocated to the Health Flexible Spending Account by a Participant in or on account of any Pla n Year is $3,050, as adjusted for increases in the cost of living in accordance with Code Section 125(i)(2). The cost of living adjustment in effect for a calendar year applies to any Plan Year beginning with or within such calendar year. The dollar increa se in effect on January 1 of any calendar year shall be effective for the Plan Year beginning with or within such calendar year. For any short Plan Year, the limit shall be an amount equal to the limit for the calendar year in which the Plan Year begins mu ltiplied by the ratio obtained by dividing the number of full months in the short Plan Year by twelve (12). (b) The minimum amount that may be allocated to the Health Flexible Spending Account by a Participant in or on account of any Plan Year is $100. (c) Participation in Other Plans. All employers that are treated as a single employer under Code Sections 414(b), (c), or (m), relating to controlled groups and affiliated service groups, are treated as a single employer for purposes of the statutory limit. If a Participant participates in multiple cafeteria plans offering health flexible spending accounts maintained by members of a controlled group or affiliated service group, the Participant's total Health Flexible Spending Account contributions under all of the cafeteria plans are limited to the statutory limit (as adjusted). However, a Participant employed by two or more employers that are not members of the same controlled group may elect up to the statutory limit (as adjusted) under each Employer's Hea lth Flexible Spending Account. (d) Carryover. A Participant in the Health Flexible Spending Account may roll over up to $570 of unused amounts in the Health Flexible Spending Account remaining at the end of one Plan Year to the immediately following Plan Year. These amounts can be used during the following Plan Year for expenses incurred in that Plan Year. Amounts carried over do not affect the maximum amount of salary redirection contributions for the Plan Year to which they are carried over. Unused amounts are those remaining after expenses have been reimbursed during the runout period. These amounts may 10 not be cashed out or converted to any othe r taxable or nontaxable benefit. Amounts in excess of $570 will be forfeited. The Plan is allowed, but not requ ired, to treat claims as being paid first from the current year amounts, then from the carryover amounts. After 2022, the dollar limit may increa se for cost-of-living adjustments. 6.5 NONDISCRIMINATION REQUIREMENTS (a) Intent to be nondiscriminatory. It is the intent of this Health Flexible Spendi ng Account not to discriminate in violation of the Code and the Tre asury regulations thereunder. (b) Adjustment to avoid test failure. If the Administrator deems it necessary to avoid discrimination under this Health Flexible Spending Account, it may, but shall not be required to, reject any elections or reduce contribut ions or Benefits in order to assure compliance with this Section. Any act taken by the Administrator under this Section shall be carried out in a uniform and nondiscriminatory manner. If th e Administrator decides to reject any elections or reduce contributions or Benefits, it shall be done in the following manner. First, the Benefits designated for the Health Flexible Spending Account by the member of the group in whose favor discrimination may not occur pursuant to Code Section 105 that elected to contribu te the highest amount to the fund for the Plan Year shall be reduced until the nondiscrimination tests set forth in this Section or the Code are satisfied, or until the amount designated fo r the fund equals the amount designated for the fund by the next me mber of the group in whose favor discrimination may not occur pursuant to Code Section 105 who has elected the second highest contribution to the Health Flexible Spending Account for the Pl an Year. This process shall continue until the nondiscrimination te sts set forth in this Section or the Code are satisfied. Contributions which are not utilized to provide Benefits to any Participant by virtue of any administrative act under this paragraph shall be forfeited and credited to the benefit plan surplus. 6.6 COORDINATION WITH CAFETERIA PLAN All Participants under the Cafeteria Plan are eligible to receive Benefits under this Health Flexible Spend ing Account. The enrollment under the Cafeteria Plan shall constitute enrollment under this Health Flexible Spending Account. In addition, other matters concerning contributions, elections and the like shall be governed by the general provisions of the Caf eteria Plan. 6.7 HEALTH FLEXIBLE SPENDING ACCOUNT CLAIMS (a) Expenses must be incurred during Plan Year. All Medical Expenses incurred by a Participant, his or her Spouse and his or her Dependents during the Plan Year shall be reimbursed during the Plan Year subject to Section 2.6, even though the submission of such a claim occurs after his participation hereunder ceases; but provided that the Medical Expenses were incurred during the applicable Plan Year. Medical Expenses are treated as having been incurred when the Participant is provided with the medical care that gives rise to th e medical expenses, not when the Participant is formally billed or charged for, or pays for the medical care. (b) Reimbursement available throughout Plan Year. The Administrator shall direct the reimbursement to each eligible Participant for all allowable Medical Expenses, up to a maximum of the amount designated by the Participant for the Health Flexible Spending Account for the Plan Year. Reimbursements shall be made available to the Participant throughout the year without regard to the level of Cafeteria Plan Benefit Dollars which have been allocated to the fund at any given point in time. Furthermore, a Participant shall be entitled to reimbursements only for amounts in excess of any payments or other reimbursements under any health care plan covering t he Participant and/or his Spouse or Dependents. (c) Payments. Reimbursement payments under this Plan shall be made directly to the Participant. However, in the Administrator's discretion, payments may be made directly to the service provider. The applicat ion for payment or reimbursement shall be made to the Administrator on an acceptable form within a reasonable time of incurring the debt or paying for the service. The application shall include a written statement from an independent third party stating th at the Medical Expense has been incurred and the amount of such exp ense. Furthermore, the Participant shall provide a written statement that the Medical Expense has not been reimbursed or is not reimbursable under any other health plan coverage and, if reimbursed from the Health Flexible Spending Account, such amount will not be claimed as a tax deduction. The Administrator shall retain a file of all such applications. (d) Claims for reimbursement. Claims for the reimbursement of Medical Expenses incurred in any Plan Year shall be paid as soon after a claim has been filed as is administratively practicable; provided however, that if a Participant fails to submit a claim within 90 days after the end of the Plan Year , those Medical Expense claims shall not be considered for reimbursement by the Administrator. 6.8 DEBIT AND CREDIT CARDS Participants may, subject to a procedure established by the Administrator and applied in a uniform nondiscriminatory manner, use debit and/or credit (stored value) cards ("cards") provided by the Administrator and the Plan for payment of Medical Expenses, subject to the following terms: (a) Card only for medical expenses. Each Participant issued a card shall certify that such card shall on ly be used for Medical Expenses. The Participant shall also certify that any Medical Expense paid with the card has not already been reimbursed by any other plan covering health benefits and that the Participant will not seek reimbursement from any other plan covering health benefits. (b) Card issuance. Such card shall be issued upon the Participant's Effective Date of Participation and reissued for each Plan Year the Participant remains a Participant in the Health Flexible Spending Account. Such card shal l 11 be automatically cancelled upon the Participant's death or termin ation of employment, or if such Participant has a change in status that results in the Participant's withdrawal from the Health Flexible Spending Account. (c) Maximum dollar amount available. The dollar amount of coverage available on the card shall be th e amount elected by the Participant for the Plan Year. The maximum dollar amount of coverage available shall be the maximum amount for the Plan Year as set forth in Section 6.4. (d) Only available for use with certain service provide rs. The cards shall only be accepted by such merchants and service providers as have been approved by the Administrator following IRS guidelines. (e) Card use. The cards shall only be used for Medical Expense purchases at these providers, including, but not limited to, the following: (1) Co-payments for doctor and other medical care; (2) Purchase of drugs prescribed by a health care provider, including, if permitted by the Administrator, over- the-counter medications as allowed under IRS regulations; (3) Purchase of medical items such as eyeglasses, syringes, crutches, etc. (f) Substantiation. Such purchases by the cards shall be subject to substantiation by the Administrator, usually by submission of a receipt from a service provider describing the serv ice, the date and the amount. The Administrator shall also follow the requirements set forth in Revenue Ruling 2003 -43 and Notice 2006-69. All charges shall be conditional pending confirmat ion and substantiation. (g) Correction methods. If such purchase is later determined by the Administrator to not qualify as a Medical Expense, the Administrator, in its discretion, shall use one of the following correction methods to make the Plan whole. Until the amount is repaid, the Administrator shall take further ac tion to ensure that further violations of the terms of the card do not occur, up to and including denial of access to the card. (1) Repayment of the improper amount by the Participant; (2) Withholding the improper payment from the Participant's wages or other compensation to the extent consistent with applicable federal or state law; (3) Claims substitution or offset of future claims until the amount is repaid; and (4) if subsections (1) through (3) fail to recover the amount, consistent with the Employ er's business practices, the Employer may treat the amount as any other business indebtedness. ARTICLE VII DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT 7.1 ESTABLISHMENT OF ACCOUNT This Dependent Care Flexible Spending Account is intended to qualify as a program under Code Section 129 and shall be interpreted in a manner cons istent with such Code Section. Participants who elect to participate in this program may submit claims for the reimbursement of Employment-Related Dependent Care Expenses. All amounts reimbursed shall be paid from amounts allocated to the Participant's Dep endent Care Flexible Spending Account. 7.2 DEFINITIONS For the purposes of this Article and the Cafeteria Plan the terms below shall have the following meaning: (a) "Dependent Care Flexible Spending Account" means the account established for a Participant pursuant to this Article to which pa rt of his Cafeteria Plan Benefit Dollars may be allocated and from which Employment-Related Dependent Care Expenses of the Participant may be reimbursed for the care of the Qualifying Dependents of Participants. (b) "Earned Income" means earned income as defined under Code Section 32(c)(2), but excluding such amounts paid or incurred by the Employer for dependent care assistance to the Participant. 12 (c) "Employment-Related Dependent Care Expenses" means the amounts paid for expenses of a Participant for those services which if paid by the Participant would be considered employment related expenses under Code Section 21(b)(2). Generally, they shall include expenses for household services and for the care of a Qualifying Dependent, to the extent that such exp enses are incurred to enable the Participant to be gainfully employed for any period for which there are one or more Qualifying Dependents with respect to such Participant. Employment -Related Dependent Care Expenses are treated as having been incurred when the Participant's Qualifying Dependents are provided with the dependent care that gives rise to the Employment -Related Dependent Care Expenses, not when the Participant is formally billed or charged for, or pays for the dependent care. The determination o f whether an amount qualifies as an Employment-Related Dependent Care Expense shall be made subject to the following rules: (1) If such amounts are paid for expenses incurred outside the P articipant's household, they shall constitute Employment-Related Dependent Care Expenses only if incurred for a Qualifying Dependent as defined in Section 7.2(d)(1) (or deemed to be, as described in Section 7.2(d)(1) pursuant to Section 7.2(d)(3)), or for a Qualifying Dependent as defined in Section 7.2(d)(2) (or deemed to be, as described in Section 7.2(d)(2) pursuant to Section 7.2(d)(3)) who regularly spends at least 8 hours per day in the Participant's household; (2) If the expense is incurred outside the Participant's home at a facility that provides care for a fee, payment, or grant for more than 6 individuals who do not regularly reside at the facility, the facility must comply with all applicable state and local laws and regulations, including licensing requirements, if any; and (3) Employment-Related Dependent Care Expenses of a Participant shall not include amounts pa id or incurred to a child of such Participant who is under the age of 19 or to an individual who is a Dependent of such Participant or such Participant's Spouse. (d) "Qualifying Dependent" means, for Dependent Care Flexible Spending Account purposes, (1) a Participant's Dependent (as defined in Code Section 152(a)(1)) who has not attained age 13; (2) a Dependent or the Spouse of a Participant who is physically or mentally incapable of caring for h imself or herself and has the same principal place of abode as the Participant for more than one -half of such taxable year; or (3) a child that is deemed to be a Qualifying Dependent described in paragraph (1) or (2) above, whichever is appropriate, pursuant to Code Section 21(e)(5). (e) The definitions of Article I are hereby incorporated by reference to the extent necessary to interpret and apply the provisions of this Dependent Care Flexible Spe nding Account. 7.3 DEPENDENT CARE FLEXIBLE SPENDING ACCOUNTS The Administrator shall establish a Dependent Care Flexible Spending Account for each Participant who elects to apply Cafeteria Plan Benefit Dollars to Dependent Care Flexible Spending Account benefits. 7.4 INCREASES IN DEPENDENT CARE FLEXIBLE SPENDING ACCOUNTS A Participant's Dependent Care Flexible Spending Account s hall be increased each pay period by the portion of Cafeteria Plan Benefit Dollars that he has elected to apply toward his Dependent Care Flexible Spending Account pursuant to elections made under Article V hereof. 7.5 DECREASES IN DEPENDENT CARE FLEXIBLE SPENDING ACCOUNTS A Participant's Dependent Care Flexible Spending Account shall be reduced by the amount of any Employment -Related Dependent Care Expense reimbursements paid or incurred on behalf of a Participant pursuant to Section 7.12 hereof. 7.6 ALLOWABLE DEPENDENT CARE REIMBURSEMENT Subject to limitations contained in Sec tion 7.9 of this Program, and to the extent of the amount contained in the Participant's Dependent Care Flexible Spending Account, a Participant who incurs Employment -Related Dependent Care Expenses shall be entitled to receive from the Employer full reimbursement for the entire amount of such expenses incurred during the Plan Year or portion thereof during which he is a Participant. 7.7 ANNUAL STATEMENT OF BENEFITS On or before January 31st of each calendar year, the Employer shall furnish to each Employee who was a Participant and received benefits under Section 7.6 during the prior calendar year, a statement of all such benefits paid to or on behalf of such Participant during the prior calendar year. This statement is set forth on the Participant's Form W -2. 13 7.8 FORFEITURES The amount in a Participant's Dependent Care Flexible Spending Account as of the end of any Plan Year (and after the processing of all claims for such Plan Year pursuant to Section 7.12 hereof) shall be forfeited and credited to the benefit plan surplu s. In such event, the Participant shall have no further claim to such amount for any reason. 7.9 LIMITATION ON PAYMENTS (a) Plan limits. Notwithstanding any provision contained in this Dependent Care Flexible Spending Account to the contrary, the following limits apply in addition to the Code limits. The minimum amount that may be allocated to the Dependent Care Flexible Spending Account by a Participant in or on account of any Plan Year is $100. (b) Code limits. Notwithstanding any provision contained in this Article to the contrary, amounts paid from a Participant's Dependent Care Flexible Spending Account in or on acc ount of any taxable year of the Participant shall not exceed the lesser of the Earned Income limitation described in Code Section 129(b) or $5,000 ($2,500 if a separate tax return is filed by a Participant who is married as determined under the rules of pa ragraphs (3) and (4) of Code Section 21(e)). 7.10 NONDISCRIMINATION REQUIREMENTS (a) Intent to be nondiscriminatory. It is the intent of this Dependent Care Flexible Spending Account that contributions or benefits not discriminate in favor of the group of employees in whose favor discriminati on may not occur under Code Section 129(d). (b) 25% test for shareholders. It is the intent of this Dependent Care Flexible Spending Account that not more than 25 percent of the amounts paid by the Employer for dependent care assistance during the Plan Ye ar will be provided for the class of individuals who are shareholde rs or owners (or their Spouses or Dependents), each of whom (on any day of the Plan Year) owns more than 5 percent of the stock or of the capital or profits interest in the Employer. (c) Adjustment to avoid test failure. If the Administrator deems it necessary to avoid discrimination or possible taxation to a group of employees in whose favor discrimination may not occur in violation of Code Section 129 it may, but shall not be required to, reject any elections or reduce contributions or non -taxable benefits in order to assure compliance with this Section. Any act taken by the Administrator under this Section shall be carried out in a uniform and nondiscriminatory manner. If the Administrato r decides to reject any elections or reduce contributions or Benefits, it shall be done in the following manner. First, the Benefits designated for the Dependent Care Flexible Spending Account by the affected Participant that elected to contribute the high est amount to such account for the Plan Year shall be reduced until the nondiscrimination tests set forth in this Section are satisfied, or until the amount designated for the account equals the amount designated for the account of the affected Participant who has elected the second highest contribution to the Dependent Care Flexible Spending Account for the Plan Year. This process shall continue until the nondiscrimination tests set forth in this Section are satisfied. Contributions which are not utilized to provide Benefits to any Participant by virtue of any administrative act under this paragraph shall be forfeited. 7.11 COORDINATION WITH CAFETERIA PLAN All Participants under the Cafeteria Plan are eligi ble to receive Benefits under this Dependent Care Flexible Spending Account. The enrollment and termination of participation under the Cafeteria Plan shall constitute enrollment and termination of participation under this Dependent Care Flexible Spending A ccount. In addition, other matters concerning contributions, elections and the like shall be governed by the general provisions of the Cafeteria Plan. 7.12 DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT CLAIMS The Administrator shall direct the payment of all such Dependent Care claims to the Participant upon the presentation to the Administrator of documentation of such expenses in a form satisfactory to the Adm inistrator. However, in the Administrator's discretion, payments may be made directly to the service provider. In its discretion in administering the Plan, the Administr ator may utilize forms and require documentation of costs as may be necessary to verify the claims submitted. At a minimum, the form shall include a statement from an independent third party as proof that the expense has been incurred during the Plan Year and the amount of such expense. In addition, the Administrator may require that each Pa rticipant who desires to receive reimbursement under this Program for Employment-Related Dependent Care Expenses submit a statement which may contain some or all of the following information: (a) The Dependent or Dependents for whom the services were per formed; (b) The nature of the services performed for the Participant, the cost of which he wishes reimbursement; (c) The relationship, if any, of the person performing the services to the Participant; (d) If the services are being performed by a child o f the Participant, the age of the child; (e) A statement as to where the services were performed; (f) If any of the services were performed outside the home, a statement as to whether the Dependent for whom such services were performed spends at least 8 hours a day in the Participant's household; 14 (g) If the services were being performed in a day care center, a statement: (1) that the day care center complies with all applicable laws and regulations of the state of residence, (2) that the day care center provides care for more than 6 individuals (other than individuals residing at the center), and (3) of the amount of fee paid to the provider. (h) If the Participant is married, a state ment containing the following: (1) the Spouse's salary or wages if he or she is employed, or (2) if the Participant's Spouse is not employed, that (i) he or she is incapacitated, or (ii) he or she is a full-time student attending an educational institution and the months during the year which he or she attended such institution. (i) Claims for reimbursement. If a Participant fails to submit a claim within 90 days after the end of the Plan Year, those claims shall not be considered for reimbursement by the Administrator. 7.13 DEBIT AND CREDIT CARDS Participants may, subject to a procedure established by the Administrator and applied in a uniform nondiscriminatory manner, use debit and/or credit (stored value) cards ("cards") provided by the Administrator and the Plan for payment of Employment- Related Dependent Care Expenses, subject to the following terms: (a) Card only for dependent care expenses. Each Participant issued a card shall certify that such card shall only be used for Employment-Related Dependent Care Expenses. The Participant shall also certify that any Employment-Related Dependent Care Expense paid with the card has not already been reimbursed by any other plan covering dependent care benefits and t hat the Participant will not seek reimbursement from any other plan covering dependent care benefits. (b) Card issuance. Such card shall be issued upon the Participant's Effective Date of Participation and reissued for each Plan Year the Participant remains a Participant in the Dependent Care Flexible Spending Account. S uch card shall be automatically cancelled upon the Participant's death or termination of employment, or if such Participant has a change in status that results in the Participant's withdraw al from the Dependent Care Flexible Spending Account. (c) Only available for use with certain service providers. The cards shall only be accepted by such service providers as have been approved by the Administrator. The cards shall only be used for Employ ment-Related Dependent Care Expenses from these providers. (d) Substantiation. Such purchases by the cards shall be subject to substantiation by the Administrator, usually by submission of a receipt from a service provider describing the service, the date and the amount. The Administrator shall also follow the requiremen ts set forth in Revenue Ruling 2003 -43 and Notice 2006-69. All charges shall be conditional pending confirmation and substantiation. (e) Correction methods. If such purchase is later determined by the Administrator to not qualify as an Employment-Related Dependent Care Expense, the Administrator, in its discretion, shall use one of the following correction methods to make the Plan whole. Until the amount is repaid, the Administrator shall t ake further action to ensure that further violations of the terms o f the card do not occur, up to and including denial of access to the card. (1) Repayment of the improper amount by the Participant; (2) Withholding the improper payment from the Particip ant's wages or other compensation to the extent consistent with applicable federal or state law; (3) Claims substitution or offset of future claims until the amount is repaid; and (4) if subsections (1) through (3) fail to recover the amount, consistent with the Employer's business practices, the Employer may treat the amount as any other business indebtedness. 15 ARTICLE VIII BENEFITS AND RIGHTS 8.1 CLAIM FOR BENEFITS (a) Insurance claims. Any claim for Benefits underwritten by Insurance Contract(s) shall be made to the Insurer. If the Insurer denies any claim, the Participant or beneficiary shall follow the Insurer's claims review procedure. (b) Dependent Care Flexible Spending Account or Health Flexible Spending Account claims. Any claim for Dependent Care Flexible Spending Account or Health Flexible Spending Account Benefits shall be made to the Administrator. For the Health Flexible Spending Account, if a Part icipant fails to submit a claim within 90 days after the end of the Plan Year, those claims shall not be considered for reimbursement by the Administrator. For the Dependent Care Flexible Spending Account, if a Participant fails to submit a claim within 90 days after the end of the Plan Year, those claims shall not be considered for reimbursement by the Administrator. If the Administrator denies a claim, the Administrator may provide notice to the Participant or beneficiary, in writing, within 90 days after the claim is filed unless special circumstances require an extension of time for processing the claim. The notice of a denial of a claim shall be written in a manner calculated to be understood by the claimant and shall set forth: (1) specific references to the pertinent Plan provisions on which the denial is based; (2) a description of any additional material or information necessary for the claimant to perfect the claim and an explanation as to why such information is necessary; and (3) an explanation of the Plan's claim procedure. (c) Appeal. Within 60 days after receipt of the above material, the claimant shall have a reasonable opportunity to appeal the claim denial to the Administrator for a full and fair review. The claimant or his duly authoriz ed representative may: (1) request a review upon written notice to the Administrator; (2) review pertinent documents; and (3) submit issues and comments in writing. (d) Review of appeal. A decision on the review by the Administrator will be made not l ater than 60 days after receipt of a request for review, unless spe cial circumstances require an extension of time for processing (such as the need to hold a hearing), in which event a decision should be rendered as soon as possible, but in no event later than 120 days after such receipt. The decision of the Administrator shall be written and shall include specific reasons for the decision, written in a manner calculated to be understood by the claimant, with specific references to the pertinent Plan provis ions on which the decision is based. (e) Forfeitures. Any balance remaining in the Participant's Health Flexible Spending Account (excluding any carryover) or Dependent Care Flexible Spending Account as of the end of the time for claims reimbursement for each Plan Year shall be forfeited and deposited in the benefit pla n surplus of the Employer pursuant to Section 6.3 or Section 7.8, whichever is applicable , unless the Participant had made a claim for such Plan Year, in writing, which has been denied or is pending; in which event the amount of the claim shall be held in his account until the claim appeal procedures set forth above have been satisfied or the claim is paid. If any such claim is denied on appeal, th e amount held beyond the end of the Plan Year shall be forfeited an d credited to the benefit plan surplus. 8.2 APPLICATION OF BENEFIT PLAN SURPLUS Any forfeited amounts credited to the benefit plan surplus by virtue of the failure of a Participant to incur a qualified expense or seek reimbursement in a timely manner may, but need not be, separately accounted for after the close of the Plan Year (or after such further time specified herein for the filing of claims) in which such forfeitures arose. In no event shall such amounts be carried over to reimburse a Participant for expenses incurred during a subsequen t Plan Year for the same or any other Benefit available under the Plan (excepting any carryover); nor shall amounts forfeited by a particular Participant be made available to such Participant in any other form or manner, except as permitted by Treasury regulations. Amounts in the benefit plan surplus shall be used to defr ay any administrative costs and experience losses or used to provide additional benefits under the Plan. No amounts attributable to the Health Savings Account shall be subject to the benefit plan surplus. ARTICLE IX ADMINISTRATION 9.1 PLAN ADMINISTRATION The Employer shall be the Administrator, unless the Employer elects otherwise. The Employer may appoint any person, including, but not limited to, the Employees of the Employer, to perform the duties of the Administrator. Any person so appoi nted shall signify acceptance by filing acceptance in writing (or such other form a s acceptable to both parties) with the Employer. Upon the resignation or removal of any individual performing the duties of the Administrator, the Employer may designate a successor. 16 If the Employer elects, the Employer shall appoint one or more Administr ators. Any person, including, but not limited to, the Employees of the Employer, shall be eligible to serve as an Administrator. Any person so appointed shall signify acceptance b y filing acceptance in writing (or such other form as acceptable to both part ies) with the Employer. An Administrator may resign by delivering a resignation in writing (or such other form as acceptable to both parties) to the Employer or be removed by the Employer b y delivery of notice of removal (in writing or such other form as a cceptable to both parties), to take effect at a date specified therein, or upon delivery to the Administrator if no date is specified. The Employer shall be empowered to appoint and remove the Administrator from time to time as it deems necessary for the p roper administration of the Plan to ensure that the Plan is being operated for the exclusive benefit of the Employees entitled to participate in the Plan in accordance with the terms of the Plan and the Code. The operation of the Plan shall be under the supervision of the Administrator. It shall be a principal duty of the Administrator to see that the Plan is carried out in accordance with its terms, and for the exclusive benefit of Employe es entitled to participate in the Plan. The Administrator shall have full power and discretion to administer the Plan in all of its details and determine all questions arising in connection with the administration, interpretation, and application of the Pl an. The Administrator may establish procedures, correct any defect, supply any information, or reconciles any inconsistency in such manner and to such extent as shall be deemed necessary or advisable to carry out the purpose of the Plan. The Administrator shall have all powers necessary or appropriate to accomplish the Administrator's duties under the Plan. The Administrator shall be charged with the duties of the general administration of the Plan as set forth under the Plan, including, but not limited to, in addition to all other powers provided by this Plan: (a) To make and enforce such procedures, rules and regulations as the Administrator deems necessary or proper for the efficient administration of the Plan; (b) To interpret the provisions of the Pl an, the Administrator's interpretations thereof in good faith to be final and conclusive on all persons claiming benefits by operation of the Plan; (c) To decide all questions concerning the Plan and the eligibility of any person to participate in the Pla n and to receive benefits provided by operation of the Plan; (d) To reject elections or to limit contributions or Benefits for certain highly compensated participants if it deems such to be desirable in order to avoid discrimination under the Plan in viol ation of applicable provisions of the Code; (e) To provide Employees with a reasonable notification of their benefits available by operation of the Plan and to assist any Participant regarding the Participant's rights, benefits or elections under the Plan ; (f) To keep and maintain the Plan documents and all other record s pertaining to and necessary for the administration of the Plan; (g) To review and settle all claims against the Plan, to approve reimbursement requests, and to authorize the payment of benefits if the Administrator determines such shall be paid if the A dministrator decides in its discretion that the applicant is entitled to them. This authority specifically permits the Administrator to settle disputed claims for benefits a nd any other disputed claims made against the Plan; (h) To appoint such agents, counsel, accountants, consultants, and other persons or entities as may be required to assist in administering the Plan. Any procedure, discretionary act, interpretation or construction take n by the Administrator shall be done in a nondiscriminatory manner based upon uniform principles consistently applied and shall be consistent with the intent that the Plan shall continue to comply with the terms of Code Section 125 and the Treasury regulat ions thereunder. 9.2 EXAMINATION OF RECORDS The Administrator shall make available to each Participant, Eligible Employee and any other Employee of the Employer such records as pertain to their interest under the Pla n for examination at reasonable times during normal business hours. 9.3 PAYMENT OF EXPENSES Any reasonable administrative expenses shall be paid by the Employer unless the Employer determines that administrative costs shall be borne by the Participants under the Plan or by any Trust Fu nd which may be established hereunder. The Administrator may impose reasonable conditions for payments, provided that such conditions shall not discriminate in favor of highly compen sated employees. 9.4 INSURANCE CONTROL CLAUSE In the event of a conflict between the terms of this Plan and the terms of an Insurance Contract of an independent third part y Insurer whose product is then being used in conj unction with this Plan, the terms of the Insurance Contract shall c ontrol as to those Participants receiving coverage under such Insurance Contract. For this purpose, the Insurance Contract shall control in defi ning the persons eligible for insurance, the dates of their eligibility, the conditions which must be satisfied to become insured, if any, the benefits Participants are entitled to and the circumstances under which insurance terminates. 17 9.5 INDEMNIFICATION OF ADMINISTRATOR The Employer agrees to indemnify and to defe nd to the fullest extent permitted by law any Employee serving as the Administrator or as a member of a committee designated as Administrator (including any Employee or former Employee who previously served as Administrator or as a member of such committee ) against all liabilities, damages, costs and expenses (including attorney's fees and amounts paid in settlement of any claims approved by the Employer) occasioned by any act or omission to act in connection with the Plan, if such act or omission is in goo d faith. ARTICLE X AMENDMENT OR TERMINATION OF PLAN 10.1 AMENDMENT The Employer, at any time or from time to time, may amend any or all of the provisions of th e Plan without the consent of any Employee or Participant. No amendment shall have the effect of modifying any benefit election of any Participant in effec t at the time of such amendment, u nless such amendment is made to comply with Federal, state or local laws, statutes or regulations. 10.2 TERMINATION The Employer reserves the right to terminate this Plan, in whole or in par t, at any time. In the event the Plan is terminated, no further contributions shall be made. Benefits under any Insurance Contract shall be paid in accordance with the terms of the Insurance Contract. No further additions shall be made to the Health Flexible Spending Account or Dependent Care Flexible Spending Account, but all payments from such fund shall continue to be made according to the elections in effect until 90 days after the term ination date of the Plan. Any amounts remaining in any such fund or account as of the end of such period shall be forfeited and deposited in the benefit plan surplus after the expiration of the filing period. ARTICLE XI MISCELLANEOUS 11.1 PLAN INTERPRETATION All provisions of this Plan shall be interpreted and applied in a uniform, nondiscriminatory manner. This Plan shall be read in its entirety and not severed except as provided in Section 11.12. 11.2 GENDER AND NUMBER Wherever any words are used herein in the masculine, feminine or neuter gender, they shall be construed as though they were also used in another gender in all cases where they would so apply, and whenever any wor ds are used herein in the singular or plural form, they shall be construed as though they were also used in the other form in all cases where they would so apply. 11.3 WRITTEN DOCUMENT This Plan, in conjunction with any s eparate written document which may be required by law, is intended to satisfy the written Plan requirement of Code Section 125 and any Treasury regulations thereunder relating to cafeteria plans. 11.4 EXCLUSIVE BENEFIT This Plan shall be maintained for the exclusive benefit of the Employees who participate in the Plan. 11.5 PARTICIPANT'S RIGHTS This Plan shall not be deemed to constitute an employment contract between the Employer an d any Participant or to be a consideration or an inducement for the employment of any Participant or Employee. Nothing contained in this Plan shall be dee med to give any Participant or Employee the right to be retained in the service of the Employer or to interfere with the right of the Employer to discharge any Participant or Employee at any time regardless of the effect which such discharge shall have upon him as a Part icipant of this Plan. 11.6 ACTION BY THE EMPLOYER Whenever the Employer under the terms of the Plan is permitted or required to do or perform any act or matter or thing, it shall be done and performed by a person duly authorized by its legally constituted authority. 18 11.7 EMPLOYER'S PROTECTIVE CLAUSES (a) Insurance purchase. Upon the failure of either the Participant or the Employer to obtain the insurance contemplated by this Plan (whether as a result of negligence, gross neglect or otherwise), the Partic ipant's Benefits shall be limited to the insurance premium(s), if any, that remained unpaid for the period in question and the actual insurance proceeds, if any, received by the Employer or the Participant as a result of the Participant's claim. (b) Validity of insurance contract. The Employer shall not be responsible for the validity of any Insurance Contract issued hereunder or for the failure on the part of the Insurer to make payments p rovided for under any Insurance Contract. Once insurance is applied for or obtained, the Employer shall not be liable for any loss which may result from the failure to pay Premiums to the extent Premium notices are not received by the Employer. 11.8 NO GUARANTEE OF TAX CONSEQUENCES Neither the Administrator nor the Employer makes any commitment or guarantee that any amounts paid to or for the benefit of a Participant under the Plan will be excludable from t he Participant's gross income for federal or state income tax purpo ses, or that any other federal or state tax treatment will apply to or be available to any Participant. It shall be the obligation of each Participant to determine whether each payment unde r the Plan is excludable from the Participant's gross income for fe deral and state income tax purposes, and to notify the Employer if the Participant has reason to believe that any such payment is not so excludable. Notwithstanding the foregoing, the right s of Participants under this Plan shall be legally enforceable. 11.9 INDEMNIFICATION OF EMPLOYER BY PARTICIPANTS If any Participant receives one or more payments or reimbursements under the Plan that are not for a permitted Benefit, such Participant shall indemnify and reimburse the Employer for any liability it may incur for failure to withhold federal or state income tax or Social Security tax from such payments or reimbursements. However, such indemnification and reimbursement shall not exceed the amount of a dditional federal and state income tax (plus any penalties) that the Participant would have owed if the payments or reimbursements had been made to the Participant as regular cash compensat ion, plus the Participant's share of any Social Security tax that would have been paid on such compensation, less any such additional income and Social Security tax actually paid by the Participant. 11.10 FUNDING Unless otherwise required by law, contributions to the Plan need not be placed in t rust or dedicated to a specific Benefit, but may instead be considered general assets of the Employer. Furthermore, and unless otherwise required by law, nothing herein s hall be construed to require the Employer or the Administrator to maintain any fund or segregate any amount for the benefit of any Participant, and no Participant or other person shall have any claim against, right to, or security or other interest in, any fund, account or asset of the Employer from which any payment under the Plan may be m ade. 11.11 GOVERNING LAW This Plan is governed by the Code and the Treasury regulations issued thereunder (as they might be amended from time to time). In no event shall the Employer guarantee the favorable tax treatment so ught by this Plan. To the extent not preempted by Federal law, the provisions of this Plan shall be construed, enforced and administered according to the laws of the State of Minnesota. 11.12 SEVERABILITY If any provision of the Plan is held invalid or unenforceable, its invalidity or unenforceability sha ll not affect any other provisions of the Plan, and the Plan shall be construed and enforced as if such provision had not been included herein. 11.13 CAPTIONS The captions contained herein are inserted only as a matter of conven ience and for reference, and in no way define, limit, enlarge or describe the scope or intent of the Plan, nor in any way shall affect the Plan or the construction of any provision thereof. 11.14 CONTINUATION OF COVERAGE (COBRA) Notwithstanding anything in the Plan to the contrary, in the event any benefit under this Plan subject to the continuation coverage requirement of Code Section 4980B becomes unavailable, each Participant will be entitled to continuation coverage as prescribed in Code Section 4980B, and related regulations. This Section shall only apply if the Employer employs at least twenty (2 0) employees on more than 50% of its typical business days in the p revious calendar year. 11.15 HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA) Notwithstanding anything in this Plan to the contrary, this Plan shall be operated in accordance with HIPAA and regulations thereunder. 11.16 UNIFORMED SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT (USERRA) Notwithstanding any provision of this Plan to the contrary, contributions, benefits and service credit with respect to qualified military service shall be provided in accordance with the Uniform Services Employment And Reemployment Rights Act (USERRA) and the regulations thereunder. 19 11.17 COMPLIANCE WITH HIPAA PRIVACY STANDARDS (a) Application. If any benefits under this Cafeteria Plan are subject to the Standards for Privacy of Individually Identifiable Health Information (45 CFR Part 164, the "Privacy Standards"), then this Section shall apply. (b) Disclosure of PHI. The Plan shall not disclose Protected Health Information to any member o f the Employer's workforce unless each of the conditions set out in this Section are met. "Protected Health Information" shall have the same definition as set forth in the Privacy Standards but generally shall mean individually identifiable information abo ut the past, present or future physical or mental health or condition of an individual, including genetic information and information about treatment or payment for treatment. (c) PHI disclosed for administrative purposes. Protected Health Information disclosed to members of the Employer's workforce shall be used or disclosed by them only for purposes of Plan administrative functions. The Plan's administrative functions shall include all Pl an payment functions and health care operations. The terms "payment " and "health care operations" shall have the same definitions as set out in the Privacy Standards, but the term "payment" generally shall mean activities taken to determine or fulfill Plan responsibilities with respect to eligibility, coverage, provision of benefits, or reimbursement for health care. Protected Health Information that consists of genetic information will not be used or disclosed for underwriting purposes. (d) PHI disclosed to certain workforce members. The Plan shall disclose Protected Health Information only to members of the Employer's workforce who are designated and authorized to receive such Protected Health Information, and only to the extent and in the minimum amount necessary for that person to perform his or her duties with respect to the Plan. "Members of the Employer's workforce" shall refer to all employees and other persons under the control of the Employer. The Employer shall keep an updated list of those author ized to receive Protected Health Information. (1) An authorized member of the Employer's workforce who receives Protected Health Information shall use or disclose the Protected Health Information only to the extent necessary to perform his or her duties with respect to the Plan. (2) In the event that any member of the Employer's workforce uses or discloses Protected Health Information other than as permitted by this Section and the Privacy Standards, the incident shall be reported to the Plan's privacy official. The privacy official shall take appropriate action, includ ing: (i) investigation of the incident to determine whether the breach occurred inadvertently, through negligence or deliberately; whether there is a pattern of breaches; and the degree o f harm caused by the breach; (ii) appropriate sanctions against th e persons causing the breach which, depending upon the nature of the breach, may include oral or written reprimand, additional training, or termination of employment; (iii) mitigation of any harm caused by the breach, to the extent practicable; and (iv) documentation of the incident and all actions taken to resolve the issue and mitigate any damages. (e) Certification. The Employer must provide certification to the Plan that it agrees to: (1) Not use or further disclose the information other than as pe rmitted or required by the Plan documents or as required by law; (2) Ensure that any agent or subcontractor, to whom it provides Protected Health Information received from the Plan, agrees to the same restrictions and conditions that apply to the Employer with respect to such information; (3) Not use or disclose Protected Health Information for employment-related actions and decisions or in connection with any other benefit or employee ben efit plan of the Employer; (4) Report to the Plan any use or disclosure of the Protected Health Information of which it becomes aware that is inconsistent with the uses or disclosures permitted by this Section, or required by law; (5) Make available Protected Health Information to individual Plan members in accordance w ith Section 164.524 of the Privacy Standards; (6) Make available Protected Health Information for amendment by individual Plan members and incorporate any amendments to Protected Health In formation in accordance with Section 164.526 of the Privacy Standards; (7) Make available the Protected Health Information required to provide an accounting of disclosures to individual Plan members in accordance with Section 164.528 of the Privacy Standards; 20 (8) Make its internal practices, books and records relating t o the use and disclosure of Protected Health Information received from the Plan available to the Department of Health and Human Services for purposes of determining compliance by the Plan with the Privacy Standards; (9) If feasible, return or destroy all Protected Health Information received from the Plan that the Employer still maintains in any form, and retain no copies of such information when no longer needed for the purpose for which disclosure was made, except that, if such return or destruction is n ot feasible, limit further uses and disclosures to those purposes that make the return or destruction of the information infeasible; and (10) Ensure the adequate separation between the Pla n and members of the Employer's workforce, as required by Section 164.504(f)(2)(iii) of the Privacy Standards and set out in (d) above. 11.18 COMPLIANCE WITH HIPAA ELECTRONIC SECURITY STANDARDS Under the Security Standards for the Protection of Electro nic Protected Health Information (45 CFR Part 164.300 et. seq., the "Security Standards"): (a) Implementation. The Employer agrees to implement reasonable and appropriate administrative, physical and technical safeguards to protect the confidentiality, in tegrity and availability of Electronic Protected Health Information that the Employer creates, maintains or transmits on behalf of the Plan. "Electronic Protected Health Information" shall have the same definition as set out in the Security Standards, but generally shall mean Protected Health Information that is transmitted by or maintained in electronic media. (b) Agents or subcontractors shall meet security standards. The Employer shall ensure that any agent or subcontractor to whom it provides Electroni c Protected Health Information shall agree, in writing, to implement reasonable and appropriate security measures to protect the Electronic Protected Health Information. (c) Employer shall ensure security standards. The Employer shall ensure that reasonab le and appropriate security measures are implemented to comply with the conditions and requirements set forth in Section 11.17. 11.19 MENTAL HEALTH PARITY AND ADDICTION EQUITY ACT Notwithstanding anything in the Plan to the contrary, the Plan will comply with the Mental Health Parity and Addiction Equity Act. 11.20 GENETIC INFORMATION NONDISCRIMINATION ACT (GINA) Notwithstanding anything in the Plan to the contrary, the Plan will comply with the Genetic Information Nondiscrimination Act . 11.21 WOMEN'S HEALTH AND CANCER RIGHTS ACT Notwithstanding anything in the Plan to the contrary, the Plan will comply with the Women's Health and Cancer Rights Act of 1998. 11.22 NEWBORNS' AND MOTHERS' HEALTH PROTECTION ACT Notwithstanding anything in the Plan to the contrary, the Plan will comply with the Newborns' and Mothers' Health Protection Act. 21 IN WITNESS WHEREOF, this Plan document is hereby executed this day of . City of New Hope By EMPLOYER I:\RFA\City Manager\2023\6.14 Q&R‐MnDOT agreement 01.09.23.docx   Request for Action  January 9, 2023    Approved by: Tim Hoyt, Acting City Manager  Originating Department: City Manager  By: Valerie Leone, City Clerk‐Treas.    Agenda Title  Resolution approving the State of Minnesota Agency Agreement between the Department of Transportation  and the city of New Hope for acceptance of federal aid funds for transportation related projects  Requested Action  Staff recommends adopting the resolution to allow MnDOT to act as the city’s agent in accepting federal funds for  federal aid construction projects.  Policy/Past Practice  The city applies for grants in aid in funding various projects to benefit the community.  Background  The proposed agreement no. 1052241 supersedes agreement 1029982 between MnDOT and the city that was  approved by Council in January of 2018. The agreement will cover all projects for which the city is awarded federal  funds. Once the city is awarded a federal grant for an eligible project, MnDOT accepts the federal grant funds,  administers the dispersal request from the city, and distributes the funds to the city. Previous city projects  completed with federal funding included Safe Routes to School projects.  Attachment   Resolution   Agreement     Agenda Section Consent Item Number  6.14    City of New Hope    Resolution No. 2023‐    Resolution approving the State of Minnesota Agency Agreement  between the Department of Transportation  and the city of New Hope   for acceptance of federal aid funds for transportation related projects      BE IT RESOLVED that pursuant to Minnesota Stat. Sec. 161.36, the Commissioner of Transportation  be appointed as Agent of the city of New Hope to accept as its agent, federal aid funds  which may be made available for eligible transportation related projects.     BE IT FURTHER RESOLVED the Mayor and City Manager are hereby authorized and directed for  and on behalf of the city of New Hope to execute and enter into an agreement with the  Commissioner of Transportation prescribing the terms and conditions of said federal  aid participation as set forth and contained in “Minnesota Department of  Transportation Agency Agreement No. 1052241”, a copy of which said agreement was  before the City Council and which is made a part hereof by reference.       Adopted by the City Council of the City of New Hope, Hennepin County, Minnesota, this 9th day of  January, 2023.             Mayor        Attest:      City Clerk          MnDOT Contract No. 1052241    Updated November 7, 2022 1  STATE OF MINNESOTA  AGENCY AGREEMENT  for  FEDERAL PARTICIPATION IN CONSTRUCTION  This Agreement is entered into by and between City of New Hope (“Local Government”) and the State of Minnesota  acting through its Commissioner of Transportation (“MnDOT”).  RECITALS   1. Pursuant to Minnesota Statutes Section 161.36, the Local Government desires MnDOT to act as the Local  Government’s agent in accepting federal funds on the Local Government’s behalf for the construction,  improvement, or enhancement of transportation financed either in whole or in part by Federal Highway  Administration (“FHWA”) federal funds, hereinafter referred to as the “Project(s)”; and  2. This Agreement is intended to cover all federal aid projects initiated by the Local Government and therefore has  no specific State Project number associated with it, and  2.1. The Assistance Listing Number (ALN) is 20.205, 20.224, 20.933 or another Department of Transportation  ALN as listed on SAM.gov and  2.2. This project is for construction, not research and development.  2.3. MnDOT requires that the terms and conditions of this agency be set forth in an agreement.  AGREEMENT TERMS   1. Term of Agreement; Prior Agreement  1.1. Effective Date.  This Agreement will be effective on the date that MnDOT obtains all required signatures  under Minn. Stat. §16C.05, Subd. 2.  This Agreement will remain effective until it is superseded or  terminated pursuant to section 14.    1.2. Prior Agreement.  This Agreement supersedes the prior agreement between the parties, MnDOT Contract  Number 1029982.  2. Local Government’s Duties  2.1. Designation.  The Local Government designates MnDOT to act as its agent in accepting federal funds on its  behalf made available for the Project(s).  Details on the required processes and procedures are available on  the State Aid Website.  2.2. Staffing.    2.2.1. The Local Government will furnish and assign a publicly employed and licensed engineer, (“Project  Engineer"), to be in responsible charge of the Project(s) and to supervise and direct the work to be  performed under any construction contract let for the Project(s). In the alternative, where the Local  Government elects to use a private consultant for construction engineering services, the Local  Government will provide a qualified, full‐time public employee of the Local Government to be in  responsible charge of the Project(s). The services of the Local Government to be performed hereunder  may not be assigned, sublet, or transferred unless the Local Government is notified in writing by  MnDOT that such action is permitted under 23 CFR 1.33 and 23 CFR 635.105 and state law.  This   MnDOT Contract No. 1052241       2  written consent will in no way relieve the Local Government from its primary responsibility for  performance of the work.  2.2.2. During the progress of the work on the Project(s), the Local Government authorizes its Project  Engineer to request in writing specific engineering and/or technical services from MnDOT, pursuant to  Minnesota Statutes Section 161.39.  Such services may be covered by other technical service  agreements. If MnDOT furnishes the services requested, and if MnDOT requests reimbursement, then  the Local Government will promptly pay MnDOT to reimburse the state trunk highway fund for the full  cost and expense of furnishing such services.  The costs and expenses will include the current MnDOT  labor additives and overhead rates, subject to adjustment based on actual direct costs that have been  verified by audit. Provision of such services will not be deemed to make MnDOT a principal or co‐ principal with respect to the Project(s).  2.3. Pre‐letting.  The Local Government will prepare construction contracts in accordance with Minnesota law  and applicable Federal laws and regulations.  2.3.1. The Local Government will solicit bids after obtaining written notification from MnDOT that the FHWA  has authorized the Project(s).  Any Project(s) advertised prior to authorization without permission will  not be eligible for federal reimbursement.  2.3.2. The Local Government will prepare the Proposal for Highway Construction for the construction  contract, which will include all federal‐aid provisions supplied by MnDOT.   2.3.3. The Local Government will prepare and publish the bid solicitation for the Project(s) as required by  state and federal laws. The Local Government will include in the solicitation the required language for  federal‐aid construction contracts as supplied by MnDOT. The solicitation will state where the  proposals, plans, and specifications are available for the inspection of prospective bidders and where  the Local Government will receive the sealed bids.   2.3.4. The Local Government may not include other work in the construction contract for the authorized  Project(s) without obtaining prior notification from MnDOT that such work is allowed by FHWA.  Failure to obtain such notification may result in the loss of some or all of the federal funds for the  Project(s). All work included in a federal contract is subject to the same federal requirements as the  federal project.  2.3.5. The Local Government will prepare and sell the plan and proposal packages and prepare and  distribute any addenda, if needed.  2.3.6. The Local Government will receive and open bids.  2.3.7. After the bids are opened, the Local Government will consider the bids and will award the bid to the  lowest responsible bidder or reject all bids. If the construction contract contains a goal for  Disadvantaged Business Enterprises (DBEs), the Local Government will not award the bid until it has  received certification of the Disadvantaged Business Enterprise participation from the MnDOT Office  of Civil Rights.   2.3.8. The Local Government must disclose in writing any potential conflict of interest to the Federal  awarding agency or MnDOT in accordance with applicable FHWA policy.  2.4. Contract Administration.  2.4.1. The Local Government will prepare and execute a construction contract with the lowest responsible  bidder, hereinafter referred to as the “Contractor,” in accordance with the special provisions and the  latest edition of MnDOT’s Standard Specifications for Construction when the contract is awarded and  all amendments thereto. All contracts between the Local Government and third parties or  subcontractors must contain all applicable provisions of this Agreement, including the applicable   MnDOT Contract No. 1052241       3  federal contract clauses, which are identified in Appendix II of 2 CFR 200, Uniform Administrative  Requirements, Cost Principles and Audit Requirements for Federal Awards, and as identified in Section  18 of this Agreement.  2.4.2. The Project(s) will be constructed in accordance with the plans, special provisions, and standard  specifications of each Project.  The standard specifications will be the latest edition of MnDOT  Standard Specifications for Highway Construction and all amendments thereto.  The plans, special  provisions, and standard specifications will be on file at the Local Government Engineer’s Office. The  plans, special provisions, and specifications are incorporated into this Agreement by reference as  though fully set forth herein.  2.4.3. The Local Government will furnish the personnel, services, supplies, and equipment necessary to  properly supervise, inspect, and document the work for the Project(s). The services of the Local  Government to be performed hereunder may not be assigned, sublet, or transferred unless the Local  Government is notified in writing by MnDOT that such action is permitted under 23 CFR 1.33 and 23  CFR 635.105 and state law.  This written consent will in no way relieve the Local Government from its  primary responsibility for performance of the work.  2.4.4. The Local Government will document quantities in accordance with the guidelines set forth in the  Construction Section of the Electronic State Aid Manual that are in effect at the time the work was  performed.   2.4.5. The Local Government will test materials in accordance with the Schedule of Materials Control in  effect at the time each Project was let. The Local Government will notify MnDOT when work is in  progress on the Project(s) that requires observation by the Independent Assurance Inspector, as  required by the Independent Assurance Schedule.  2.4.6. The Local Government may make changes in the plans or the character of the work, as may be  necessary to complete the Project(s), and may enter into Change Order(s) with the Contractor. The  Local Government will not be reimbursed for any costs of any work performed under a change order  unless MnDOT has notified the Local Government that the subject work is eligible for federal funds  and sufficient federal funds are available.  2.4.7. The Local Government will request approval from MnDOT for all costs in excess of the amount of  federal funds previously approved for the Project(s) prior to incurring such costs. Failure to obtain  such approval may result in such costs being disallowed for reimbursement.  2.4.8. The Local Government will prepare reports, keep records, and perform work so as to meet federal  requirements and to enable MnDOT to collect the federal aid sought by the Local Government.   Required reports are listed in the MnDOT State Aid Manual, Delegated Contract Process Checklist,  available from MnDOT’s authorized representative. The Local Government will retain all records and  reports and allow MnDOT or the FHWA access to such records and reports for six years.  2.4.9. Upon completion of the Project(s), the Project Engineer will determine whether the work will be  accepted.   2.5. Limitations.    2.5.1. The Local Government will comply with all applicable Federal, State, and local laws, ordinances, and  regulations.  2.5.2. Nondiscrimination.  It is the policy of the Federal Highway Administration and the State of Minnesota  that no person in the United States will, on the grounds of race, color, or national origin, be excluded  from participation in, be denied the benefits of, or be subjected to discrimination under any program  or activity receiving Federal financial assistance (42 U.S.C. 2000d).  Through expansion of the mandate   MnDOT Contract No. 1052241       4  for nondiscrimination in Title VI and through parallel legislation, the proscribed bases of discrimination  include race, color, sex, national origin, age, and disability.  In addition, the Title VI program has been  extended to cover all programs, activities and services of an entity receiving Federal financial  assistance, whether such programs and activities are Federally assisted or not. Even in the absence of  prior discriminatory practice or usage, a recipient in administering a program or activity to which this  part applies is expected to take affirmative action to assure that no person is excluded from  participation in, or is denied the benefits of, the program or activity on the grounds of race, color,  national origin, sex, age, or disability. It is the responsibility of the Local Government to carry out the  above requirements.  2.5.3. Utilities.  The Local Government will treat all public, private or cooperatively owned utility facilities  which directly or indirectly serve the public and which occupy highway rights of way in conformance  with 23 CFR 645 “Utilities”, which is incorporated herein by reference.  2.6. Maintenance.  The Local Government assumes full responsibility for the operation and maintenance of any  facility constructed or improved under this Agreement.  3. MnDOT’s Duties  3.1. Acceptance. MnDOT accepts designation as Agent of the Local Government for the receipt and disbursement  of federal funds and will act in accordance herewith.  3.2. Project Activities.   3.2.1. MnDOT will make the necessary requests to the FHWA for authorization to use federal funds for the  Project(s) and for reimbursement of eligible costs pursuant to the terms of this Agreement.  3.2.2. MnDOT will provide to the Local Government copies of the required Federal‐aid clauses to be included  in the bid solicitation and will provide the required Federal‐aid provisions to be included in the Proposal  for Highway Construction.  3.2.3. MnDOT will review and certify the DBE participation and notify the Local Government when certification  is complete.  If certification of DBE participation (or good faith efforts to achieve such participation)  cannot be obtained, then Local Government must decide whether to proceed with awarding the  contract.  Failure to obtain such certification will result in the Project becoming ineligible for federal  assistance, and the Local Government must make up any shortfall.  3.2.4. MnDOT will provide the required labor postings.  3.3. Authority. MnDOT may withhold federal funds, where MnDOT or the FHWA determines that the Project(s)  was not completed in compliance with federal requirements.   3.4. Inspection. MnDOT, the FHWA, or duly authorized representatives of the state and federal government will  have the right to audit, evaluate and monitor the work performed under this Agreement. The Local  Government will make all books, records, and documents pertaining to the work hereunder available for a  minimum of six years following the closing of the construction contract.  4. Time  4.1. The Local Government must comply with all time requirements described in this Agreement.  In the  performance of this Agreement, time is of the essence.  4.2. The period of performance is defined as beginning on the date of federal authorization and ending on the  date defined in the federal financial system or federal agreement (“end date”).  No work completed after  the end date will be eligible for federal funding.  Local Government must submit all contract close out  paperwork to MnDOT at least twenty‐four months prior to the end date.     MnDOT Contract No. 1052241       5  5. Payment  5.1. Cost.  The entire cost of the Project(s) is to be paid from federal funds made available by the FHWA and by  other funds provided by the Local Government.  The Local Government will pay any part of the cost or  expense of the Project(s) that is not paid by federal funds. MnDOT will receive the federal funds to be paid  by the FHWA for the Project(s), pursuant to Minnesota Statutes § 161.36, Subdivision 2. MnDOT will  reimburse the Local Government, from said federal funds made available to each Project, for each partial  payment request, subject to the availability and limits of those funds.  5.2. Indirect Cost Rate Proposal/Cost Allocation Plan. If the Local Government seeks reimbursement for indirect  costs and has submitted to MnDOT an indirect cost rate proposal or a cost allocation plan, the rate proposed  will be used on a provisional basis. At any time during the period of performance or the final audit of a  Project, MnDOT may audit and adjust the indirect cost rate according to the cost principles in 2 CFR Part  200. MnDOT may adjust associated reimbursements accordingly.  5.3. Reimbursement.  The Local Government will prepare partial estimates in accordance with the terms of the  construction contract for the Project(s).  The Project Engineer will certify each partial estimate. Following  certification of the partial estimate, the Local Government will make partial payments to the Contractor in  accordance with the terms of the construction contract for the Project(s).  5.3.1. Following certification of the partial estimate, the Local Government may request reimbursement for  costs eligible for federal funds. The Local Government’s request will be made to MnDOT and will  include a copy of the certified partial estimate.   5.3.2. Upon completion of the Project(s), the Local Government will prepare a final estimate in accordance  with the terms of the construction contract for the Project(s).  The Project Engineer will certify the  final estimate. Following certification of the final estimate, the Local Government will make the final  payment to the Contractor in accordance with the terms of the construction contract for the  Project(s).  5.3.3. Following certification of the final estimate, the Local Government may request reimbursement for  costs eligible for federal funds.  The Local Government’s request will be made to MnDOT and will  include a copy of the certified final estimate along with the required records.  5.3.4. Upon completion of the Project(s), MnDOT will perform a final inspection and verify the federal and  state eligibility of all payment requests. If the Project is found to have been completed in accordance  with the plans and specifications, MnDOT will promptly release any remaining federal funds due the  Local Government for the Project(s). If MnDOT finds that the Local Government has been overpaid,  the Local Government must promptly return any excess funds.  5.3.5. In the event MnDOT does not obtain funding from the Minnesota Legislature or other funding source,  or funding cannot be continued at a sufficient level to allow for the processing of the federal aid  reimbursement requests, the Local Government may continue the work with local funds only, until  such time as MnDOT is able to process the federal aid reimbursement requests.  5.4. Matching Funds.  Any cost sharing or matching funds required of the Local Government in this Agreement  must comply with 2 CFR 200.306.  5.5. Federal Funds. Payments under this Agreement will be made from federal funds. The Local Government is  responsible for compliance with all federal requirements imposed on these funds and accepts full financial  responsibility for failure to comply with any federal requirements including, but not limited to, 2 CFR Part  200.  If, for any reason, the federal government fails to pay part of the cost or expense incurred by the Local  Government, or in the event the total amount of federal funds is not available, the Local Government will be  responsible for any and all costs or expenses incurred under this Agreement. The Local Government further   MnDOT Contract No. 1052241       6  agrees to pay any and all lawful claims arising out of or incidental to the performance of the work covered  by this Agreement in the event the federal government does not pay the same.  5.6. Closeout.  The Local Government must liquidate all obligations incurred under this Agreement for each  Project and submit all financial, performance, and other reports as required by the terms of this Agreement  and the Federal award at least twenty‐four months prior to the end date of the period of performance for  each Project.  MnDOT will determine, at its sole discretion, whether a closeout audit is required prior to final  payment approval.  If a closeout audit is required, final payment will be held until the audit has been  completed.  Monitoring of any capital assets acquired with funds will continue following project closeout.  6. Conditions of Payment. All services provided by Local Government under this Agreement must be performed to  MnDOT’s satisfaction, as determined at the sole discretion of MnDOT’s Authorized Representative, and in  accordance with all applicable federal, state, and local laws, ordinances, rules, and regulations.  The Local  Government will not receive payment for work found by MnDOT to be unsatisfactory or performed in violation of  federal, state, or local law.  7. Authorized Representatives  7.1. MnDOT's Authorized Representative is:  Name:  Kristine Elwood, or her successor.    Title:  State Aid Engineer  Phone:  651‐366‐4831  Email:  Kristine.elwood@state.mn.us  MnDOT’s Authorized Representative has the responsibility to monitor Local Government’s performance and  the authority to accept the services provided under this Agreement.  If the services are satisfactory,  MnDOT's Authorized Representative will certify acceptance on each invoice submitted for payment.   7.2. The Local Government’s Authorized Representative is:  Name: Tim Hoyt or their successor.    Title: New Hope City Manager  Phone: 763‐398‐1203  Email: thoyt@newhopemn.gov  If the Local Government’s Authorized Representative changes at any time during this Agreement, the Local  Government will immediately notify MnDOT.   8. Assignment Amendments, Waiver, and Agreement Complete  8.1. Assignment.  The Local Government may neither assign nor transfer any rights or obligations under this  Agreement without the prior written consent of MnDOT and a fully executed Assignment Agreement,  executed and approved by the same parties who executed and approved this Agreement, or their successors  in office.  8.2. Amendments.  Any amendment to this Agreement must be in writing and will not be effective until it has  been executed and approved by the same parties who executed and approved the original agreement, or  their successors in office.  8.3. Waiver.  If MnDOT fails to enforce any provision of this Agreement, that failure does not waive the provision  or MnDOT’s right to subsequently enforce it.  8.4. Agreement Complete.  This Agreement contains all negotiations and agreements between MnDOT and the   MnDOT Contract No. 1052241       7  Local Government. No other understanding regarding this Agreement, whether written or oral, may be used  to bind either party.  8.5. Severability. If any provision of this Agreement, or the application thereof, is found to be invalid or  unenforceable to any extent, the remainder of the Agreement, including all material provisions and the  application of such provisions, will not be affected and will be enforceable to the greatest extent permitted  by the law.  8.6. Electronic Records and Signatures.  The parties agree to contract by electronic means.  This includes using  electronic signatures and converting original documents to electronic records.  8.7. Certification.  By signing this Agreement, the Local Government certifies that it is not suspended or  debarred from receiving federal or state awards.  9. Liability and Claims  9.1. Tort Liability. Each party is responsible for its own acts and omissions and the results thereof to the extent  authorized by law and will not be responsible for the acts and omissions of any others and the results  thereof.  The Minnesota Tort Claims Act, Minnesota Statutes Section 3.736, governs MnDOT liability.  9.2. Claims.  The Local Government acknowledges that MnDOT is acting only as the Local Government’s agent  for acceptance and disbursement of federal funds, and not as a principal or co‐principal with respect to the  Project.  The Local Government will pay any and all lawful claims arising out of or incidental to the Project  including, without limitation, claims related to contractor selection (including the solicitation, evaluation,  and acceptance or rejection of bids or proposals), acts or omissions in performing the Project work, and any  ultra vires acts.    To the extent permitted by law, the Local Government will indemnify, defend (to the  extent permitted by the Minnesota Attorney General), and hold MnDOT harmless from any claims or costs  arising out of or incidental to the Project(s), including reasonable attorney fees incurred by MnDOT.  The  Local Government’s indemnification obligation extends to any actions related to the certification of DBE  participation, even if such actions are recommended by MnDOT.  10. Audits  10.1. Under Minn. Stat. § 16C.05, Subd.5, the books, records, documents, and accounting procedures and  practices of the Local Government, or any other party relevant to this Agreement or transaction, are subject  to examination by MnDOT and/or the State Auditor or Legislative Auditor, as appropriate, for a minimum of  six years from the end of this Agreement, receipt and approval of all final reports, or the required period of  time to satisfy all state and program retention requirements, whichever is later.  The Local Government will  take timely and appropriate action on all deficiencies identified by an audit.  10.2. All requests for reimbursement are subject to audit, at MnDOT’s discretion.  The cost principles outlined in 2  CFR 200.400‐.476 will be used to determine whether costs are eligible for reimbursement under this  Agreement.  10.3. If Local Government expends $750,000 or more in Federal Funds during the Local Government’s fiscal year,  the Local Government must have a single audit or program specific audit conducted in accordance with 2  CFR Part 200.  11. Government Data Practices. The Local Government and MnDOT must comply with the Minnesota Government  Data Practices Act, Minn. Stat. Ch. 13, as it applies to all data provided by MnDOT under this Agreement, and as it  applies to all data created, collected, received, stored, used, maintained, or disseminated by the Local  Government under this Agreement. The civil remedies of Minn. Stat. §13.08 apply to the release of the data  referred to in this clause by either the Local Government or MnDOT.    12. Workers Compensation. The Local Government certifies that it is in compliance with Minn. Stat. §176.181, Subd.  2, pertaining to workers’ compensation insurance coverage.  The Local Government’s employees and agents will   MnDOT Contract No. 1052241       8  not be considered MnDOT employees.  Any claims that may arise under the Minnesota Workers’ Compensation  Act on behalf of these employees and any claims made by any third party as a consequence of any act or omission  on the part of these employees are in no way MnDOT’s obligation or responsibility.  13. Governing Law, Jurisdiction, and Venue. Minnesota law, without regard to its choice‐of‐law provisions, governs  this Agreement.  Venue for all legal proceedings out of this Agreement, or its breach, must be in the appropriate  state or federal court with competent jurisdiction in Ramsey County, Minnesota.  14. Termination; Suspension  14.1. Termination by MnDOT. MnDOT may terminate this Agreement with or without cause, upon 30 days  written notice to the Local Government.  Upon termination, the Local Government will be entitled to  payment, determined on a pro rata basis, for services satisfactorily performed.  14.2. Termination for Cause.  MnDOT may immediately terminate this Agreement if MnDOT finds that there has  been a failure to comply with the provisions of this Agreement, that reasonable progress has not been  made, that fraudulent or wasteful activity has occurred, that the Local Government has been convicted of a  criminal offense relating to a state agreement, or that the purposes for which the funds were granted have  not been or will not be fulfilled. MnDOT may take action to protect the interests of MnDOT of Minnesota,  including the refusal to disburse additional funds and/or requiring the return of all or part of the funds  already disbursed.  14.3. Termination for Insufficient Funding.  MnDOT may immediately terminate this Agreement if:  14.3.1. It does not obtain funding from the Minnesota Legislature; or  14.3.2. If funding cannot be continued at a level sufficient to allow for the payment of the services covered  here. Termination must be by written or fax notice to the Local Government. MnDOT is not  obligated to pay for any services that are provided after notice and effective date of termination.  However, the Local Government will be entitled to payment, determined on a pro rata basis, for  services satisfactorily performed to the extent that funds are available. MnDOT will not be assessed  any penalty if the Agreement is terminated because of the decision of the Minnesota Legislature, or  other funding source, not to appropriate funds. MnDOT will provide the Local Government notice of  the lack of funding within a reasonable time of MnDOT’s receiving that notice.  14.4. Suspension.  MnDOT may immediately suspend this Agreement in the event of a total or partial government  shutdown due to the failure to have an approved budget by the legal deadline.  Work performed by the  Local Government during a period of suspension will be deemed unauthorized and undertaken at risk of  non‐payment.  15. Data Disclosure. Under Minn. Stat. § 270C.65, Subd. 3, and other applicable law, the Local Government consents  to disclosure of its social security number, federal employer tax identification number, and/or Minnesota tax  identification number, already provided to MnDOT, to federal and state tax agencies and state personnel involved  in the payment of state obligations.  These identification numbers may be used in the enforcement of federal and  state tax laws which could result in action requiring the Local Government to file state tax returns and pay  delinquent state tax liabilities, if any.  16. Fund Use Prohibited. The Local Government will not utilize any funds received pursuant to this Agreement to  compensate, either directly or indirectly, any contractor, corporation, partnership, or business, however  organized, which is disqualified or debarred from entering into or receiving a State contract.  This restriction  applies regardless of whether the disqualified or debarred party acts in the capacity of a general contractor, a  subcontractor, or as an equipment or material supplier.  This restriction does not prevent the Local Government  from utilizing these funds to pay any party who might be disqualified or debarred after the Local Government’s  contract award on this Project.   MnDOT Contract No. 1052241       9  17. Discrimination Prohibited by Minnesota Statutes §181.59. The Local Government will comply with the provisions  of Minnesota Statutes §181.59 which requires that every contract for or on behalf of the State of Minnesota, or  any county, city, town, township, school, school district or any other district in the state, for materials, supplies or  construction will contain provisions by which Contractor agrees: 1) That, in the hiring of common or skilled labor  for the performance of any work under any contract, or any subcontract, no Contractor, material supplier or  vendor, will, by reason of race, creed or color, discriminate against the person or persons who are citizens of the  United States or resident aliens who are qualified and available to perform the work to which the employment  relates; 2) That no Contractor, material supplier, or vendor, will, in any manner, discriminate against, or  intimidate, or prevent the employment of any person or persons identified in clause 1 of this section, or on being  hired, prevent or conspire to prevent, the person or persons from the performance of work under any contract on  account of race, creed or color; 3) That a violation of this section is a misdemeanor; and 4) That this contract may  be canceled or terminated by the state of Minnesota, or any county, city, town, township, school, school district or  any other person authorized to contracts for employment, and all money due, or to become due under the  contract, may be forfeited for a second or any subsequent violation of the terms or conditions of this Agreement.  18. Federal Contract Clauses  18.1. Appendix II 2 CFR Part 200. The Local Government agrees to comply with the following federal  requirements as identified in 2 CFR 200, Uniform Administrative Requirements, Cost Principles and Audit  Requirements for Federal Awards, and agrees to pass through these requirements to its subcontractors and  third‐party contractors, as applicable. In addition, the Local Government shall have the same meaning as  “Contractor” in the federal requirements listed below.  18.1.1. Contracts for more than the simplified acquisition threshold, which is the inflation adjusted amount  determined by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations  Council (Councils) as authorized by 41 U.S.C. 1908, must address administrative, contractual, or legal  remedies in instances where contractors violate or breach contract terms, and provide for such  sanctions and penalties as appropriate.  18.1.2. All contracts in excess of $10,000 must address termination for cause and for convenience by the  non‐Federal entity including the manner by which it will be effected and the basis for settlement.  18.1.3. Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all contracts  that meet the definition of “federally assisted construction contract” in 41 CFR Part 60‐1.3 must  include the equal opportunity clause provided under 41 CFR 60‐1.4(b), in accordance with Executive  Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 CFR Part, 1964‐1965 Comp.,  p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal  Employment Opportunity,” and implementing regulations at 41 CFR part 60, “Office of Federal  Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.”  18.1.4. Davis‐Bacon Act, as amended (40 U.S.C. 3141‐3148). When required by Federal program legislation,  all prime construction contracts in excess of $2,000 awarded by non‐Federal entities must include a  provision for compliance with the Davis‐Bacon Act (40 U.S.C. 3141‐3144, and 3146‐3148) as  supplemented by Department of Labor regulations (29 CFR Part 5, “Labor Standards Provisions  Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with  the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less  than the prevailing wages specified in a wage determination made by the Secretary of Labor. In  addition, contractors must be required to pay wages not less than once a week. The non‐Federal  entity must place a copy of the current prevailing wage determination issued by the Department of  Labor in each solicitation. The decision to award a contract or subcontract must be conditioned  upon the acceptance of the wage determination. The non‐Federal entity must report all suspected  or reported violations to the Federal awarding agency. The contracts must also include a provision   MnDOT Contract No. 1052241       10  for compliance with the Copeland “Anti‐Kickback” Act (40 U.S.C. 3145), as supplemented  by Department of Labor regulations (29 CFR Part 3, “Contractors and Subcontractors on Public  Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”).  The Act provides that each contractor or subrecipient must be prohibited from inducing, by any  means, any person employed in the construction, completion, or repair of public work, to give up  any part of the compensation to which he or she is otherwise entitled. The non‐Federal entity must  report all suspected or reported violations to the Federal awarding agency.  18.1.5. Contract Work Hours and Safety Standards Act (40 U.S.C. 3701‐3708). Where applicable, all  contracts awarded by the non‐Federal entity in excess of $100,000 that involve the employment of  mechanics or laborers must include a provision for compliance with 40 U.S.C. 3702 and 3704, as  supplemented by Department of Labor regulations (29 CFR Part 5). Under 40 U.S.C. 3702 of the Act,  each contractor must be required to compute the wages of every mechanic and laborer on the basis  of a standard work week of 40 hours. Work in excess of the standard work week is permissible  provided that the worker is compensated at a rate of not less than one and a half times the basic  rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40  U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be  required to work in surroundings or under working conditions which are unsanitary, hazardous or  dangerous. These requirements do not apply to the purchases of supplies or materials or articles  ordinarily available on the open market, or contracts for transportation or transmission of  intelligence.  18.1.6. Rights to Inventions Made Under a Contract or Agreement. If the Federal award meets the definition  of “funding agreement” under 37 CFR § 401.2 (a) and the recipient or subrecipient wishes to enter  into a contract with a small business firm or nonprofit organization regarding the substitution of  parties, assignment or performance of experimental, developmental, or research work under that  “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 CFR  Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under  Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations  issued by the awarding agency.  18.1.7. Clean Air Act (42 U.S.C. 7401‐7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251‐ 1387), as amended ‐ Contracts and subgrants of amounts in excess of $150,000 must contain a  provision that requires the non‐Federal award to agree to comply with all applicable standards,  orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401‐7671q) and the Federal  Water Pollution Control Act as amended (33 U.S.C. 1251‐1387). Violations must be reported to the  Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).  18.1.8. Debarment and Suspension (Executive Orders 12549 and 12689) ‐ A contract award (see 2 CFR  180.220) must not be made to parties listed on the governmentwide exclusions in the System for  Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement  Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR part 1989 Comp., p. 235),  “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended,  or otherwise excluded by agencies, as well as parties declared ineligible under statutory or  regulatory authority other than Executive Order 12549.  18.1.9. Byrd Anti‐Lobbying Amendment (31 U.S.C. 1352) ‐ Contractors that apply or bid for an award  exceeding $100,000 must file the required certification. Each tier certifies to the tier above that it  will not and has not used Federal appropriated funds to pay any person or organization for  influencing or attempting to influence an officer or employee of any agency, a member of Congress,  officer or employee of Congress, or an employee of a member of Congress in connection with  obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must   MnDOT Contract No. 1052241       11  also disclose any lobbying with non‐Federal funds that takes place in connection with obtaining any  Federal award. Such disclosures are forwarded from tier to tier up to the non‐Federal award.  18.1.10. Local Government will comply with 2 CFR § 200.323.  18.1.11. Local Government will comply with 2 CFR § 200.216.  18.1.12. Local Government will comply with 2 CFR § 200.322.  18.2. Drug‐Free Workplace.  The Local Government will comply with the Drug‐Free Workplace requirements  under subpart B of 49 C.F.R. Part 32.  18.3. Title VI/Non‐discrimination Assurances.  The Local Government hereby agrees that, as a condition of  receiving any Federal financial assistance under this Agreement, it will comply with Title VI of the Civil  Rights Act of 1964 (78 Stat. 252, 42 U.S.C. § 2000d), related nondiscrimination statutes (i.e., 23 U.S.C. § 324,  Section 504 of the Rehabilitation Act of 1973 as amended, and the Age Discrimination Act of 1975), and  applicable regulatory requirements to the end that no person in the United States shall, on the grounds of  race, color, national origin, sex, disability, or age be excluded from participation in, be denied the benefits  of, or otherwise be subjected to discrimination under any program or activity for which the Local  Government receives Federal financial assistance.   The Local Government hereby agrees to comply with all applicable US DOT Standard Title VI/Non‐ Discrimination Assurances contained in DOT Order No. 1050.2A, and in particular Appendices A and E,  which can be found at: https://edocs‐ public.dot.state.mn.us/edocs_public/DMResultSet/download?docId=11149035.  If federal funds are  included in any contract, the Local Government will ensure the appendices and solicitation language within  the assurances are inserted into contracts as required. State may conduct a review of the Local  Government’s compliance with this provision. The Local Government must cooperate with State  throughout the review process by supplying all requested information and documentation to State, making  Local Government staff and officials available for meetings as requested, and correcting any areas of non‐ compliance as determined by State.   18.4. Buy America.  The Local Government must comply with the Buy America domestic preferences contained  in the Build America, Buy America Act (Sections 70901‐52 of the Infrastructure Investment and Jobs  Act, Public Law 117‐58) and as implemented by US DOT operating agencies.  18.5. Federal Funding Accountability and Transparency Act (FFATA)  18.5.1. This Agreement requires the Local Government to provide supplies and/or services that are funded  in whole or in part by federal funds that are subject to FFATA. The Local Government is responsible  for ensuring that all applicable requirements, including but not limited to those set forth herein, of  FFATA are met and that the Local Government provides information to the MnDOT as required.   a. Reporting of Total Compensation of the Local Government’s Executives.   b. The Local Government shall report the names and total compensation of each of its five most  highly compensated executives for the Local Government’s preceding completed fiscal year, if  in the Local Government’s preceding fiscal year it received:  i. 80 percent or more of the Local Government’s annual gross revenues from Federal  procurement contracts and Federal financial assistance subject to the Transparency Act,  as defined at 2 CFR 170.320 (and subawards); and   ii. $25,000,000 or more in annual gross revenues from Federal procurement contracts (and  subcontracts), and Federal financial assistance subject to the Transparency Act (and  subawards); and   MnDOT Contract No. 1052241       12  iii. The public does not have access to information about the compensation of the  executives through periodic reports filed under section 13(a) or 15(d) of the Securities  Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue  Code of 1986. (To determine if the public has access to the compensation information,  see the U.S. Security and Exchange Commission total compensation filings at  https://www.sec.gov/answers/execomp.htm).  Executive means officers, managing partners, or any other employees in management  positions.  c. Total compensation means the cash and noncash dollar value earned by the executive during  the Local Government’s preceding fiscal year and includes the following (for more information  see 17 CFR 229.402(c)(2)):   i. Salary and bonus.   ii. Awards of stock, stock options, and stock appreciation rights. Use the dollar amount  recognized for financial statement reporting purposes with respect to the fiscal year in  accordance with the Statement of Financial Accounting Standards No. 123 (Revised  2004) (FAS 123R), Shared Based Payments.   iii. Earnings for services under non‐equity incentive plans. This does not include group life,  health, hospitalization or medical reimbursement plans that do not discriminate in favor  of executives, and are available generally to all salaried employees.   iv. Change in pension value. This is the change in present value of defined benefit and  actuarial pension plans.   v. Above‐market earnings on deferred compensation which is not tax qualified.   18.5.2. Other compensation, if the aggregate value of all such other compensation (e.g. severance,  termination payments, value of life insurance paid on behalf of the employee, perquisites or  property) for the executive exceeds $10,000.  18.5.3. The Local Government must report executive total compensation described above to the MnDOT  by the end of the month during which this Agreement is awarded.  18.5.4. The Local Government will obtain a Unique Entity Identifier number and maintain this number for  the term of this Agreement.  This number shall be provided to MnDOT on the plan review checklist  submitted with the plans for each Project.    18.5.5. The Local Government’s failure to comply with the above requirements is a material breach of this  Agreement for which the MnDOT may terminate this Agreement for cause.  The MnDOT will not be  obligated to pay any outstanding invoice received from the Local Government unless and until the  Local Government is in full compliance with the above requirements.    [THE REMAINDER OF THIS PAGE HAS INTENTIONALLY BEEN LEFT BLANK.] MnDOT Contract No. 1052241     13      City of New Hope  Local Government certifies that the appropriate  person(s) have executed the contract on behalf of the  Local Government as required by applicable articles,  bylaws, resolutions or ordinances.  By:   Title:   Date:       By:   Title:   Date:                                                   DEPARTMENT OF TRANSPORTATION      By:   Title:   Date:     COMMISSIONER OF ADMINISTRATION  By:   Date:  I:\RFA\City Manager\2023\10.1 ‐ Q&R‐apt acting mayor 01.09.23.docx   Request for Action  January 9, 2023    Approved by: Tim Hoyt, Acting City Manager  Originating Department: City Manager  By: Valerie Leone, City Clerk‐Treas.    Agenda Title  Resolution appointing a council member as mayor pro tem for 2023  Requested Action  Staff recommends adopting the resolution to appoint a council member as mayor pro tem.  Policy/Past Practice  The mayor pro tem performs the duties of mayor during the disability or absence of the mayor from the city or, in  case of vacancy in the office of mayor, until a successor has been appointed and qualifies.  Background  This position is rotated among Council Members.    Year Council Member  2011 Elder  2012 Lammle  2013 Hoffe  2014 Stauner  2015 Elder  2016 Lammle  2017 London  2018 Hoffe  2019 Elder   2020 Frazier   2021 London  2022 Hoffe  2023 Isenberg    It is recommended that Council Member Isenberg be appointed to the position for 2023. The Council should  make a nomination for mayor pro tem for 2023. If the final decision changes, the resolution will be amended  accordingly.  Attachment   Resolution     Agenda Section Ordinances &  Resolutions Item Number  10.1    City of New Hope    Resolution No. 2023‐    Resolution appointing Council Member Michael Isenberg  as Mayor Pro Tem for 2023      WHEREAS, according to M.S. 412.121 the city council must annually choose a Mayor Pro  Tem from its council members; and    WHEREAS, the Mayor Pro Tem shall perform the duties of mayor during the disability or  absence of the mayor from the city or, in case of vacancy of office of mayor,  until a successor has been appointed and qualifies.     NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of New Hope that:   Council Member Michael Isenberg is appointed Mayor Pro Tem for 2023.       Adopted by the City Council of the City of New Hope, Hennepin County, Minnesota, this 9th day  of January, 2023.             Mayor        Attest:      City Clerk     I:\RFA\City Manager\2023\Ordinances\Ord 23‐01\10.2 Q ‐ Ord 23‐01.docx   Request for Action  January 9, 2023    Approved by: Tim Hoyt, Acting City Manager  Originating Department: City Manager  By: Valerie Leone, City Clerk‐Treas.     Agenda Title  Ordinance No. 23‐01, An ordinance amending section 8‐14 of the New Hope City Code related to Residential  Garbage and Refuse Collectors Licensing Regulations, Terms and Conditions  Requested Action  Staff requests that the City Council consider an ordinance amending Section 8‐14 of the New Hope City Code  related to garbage and refuse collectors licensing regulations, terms and conditions, capping the maximum  number of residential hauler licenses allowed within the city at five.  Policy/Past Practice  The maximum number of allowed business licenses is reviewed periodically and amended as deemed  appropriate.  Background  In an effort to reduce the number of heavy trucks on city streets, Council has supported reducing the number  of licenses through attrition. Randy’s Sanitation did not renew their 2023 license as they were acquired by  Republic. Staff recommends the City Council to adopt the ordinance amendment to cap the maximum number  of residential garbage and refuse licenses allowed within the city at five.    Date Council Action  April 2017 Discussed open and organized trash collection systems at w/s  August 2017 Held listening session   May 2017 Implemented cap of seven licenses  November 2017 Reduced to six licenses (Waste Management acquired GarbageMan)  January 2023 Reduced to five licenses (Republic acquired Randy’s Sanitation)    The city attorney’s office drafted the ordinance amendment. A summary ordinance is not necessary since the  text is not extensive and publication costs will be minimal in the Sun Post.   Attachment   Ordinance 23‐01    Agenda Section Ordinances &  Resolutions Item Number  10.2    Page 1    ORDINANCE NO. 23-01 AN ORDINANCE AMENDING SECTION 8-14 OF THE NEW HOPE CITY CODE RELATED TO RESIDENTIAL GARBAGE AND REFUSE COLLECTORS LICENSING REGULATIONS, TERMS AND CONDITIONS THE CITY COUNCIL OF THE CITY OF NEW HOPE ORDAINS: Section 1. Section 8-14(b), Garbage and refuse collectors. – Licensing regulations, terms and conditions, is hereby amended to delete the stricken text and add the following underlined text: (13) Maximum number of licenses available. To control the number of heavy trucks that travel on city streets for purposes of reducing the wear and tear on city streets, reducing air and noise pollution in the city, and reducing traffic hazards in residential neighborhoods, the city shall not issue more than sixfive licenses for residential garbage and refuse collectors. Section 2. Effective Date. This ordinance shall be effective upon passage and publication. APPROVED by the New Hope City Council this 9th day of January 2023. Kathi Hemken, Mayor ATTEST: Valerie Leone, City Clerk P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-82301 Residential Garbage Collectors Licensing\Ordinance 23-01.docx   S:\January 9, 2023 Council Meeting\12.1 Q ‐ Upcoming Events.docx   Request for Action  January 9, 2023    Approved by: Tim W. Hoyt, Acting City Manager  Originating Department: City Manager  By: Tim W. Hoyt, Acting City Manager    Agenda Title  Exchange of communication between members of the city council  Upcoming meetings and events:  Jan. 10  7 p.m. – Citizen Advisory Commission Meeting    Jan. 12  12:30 p.m. – Shingle Creek Watershed Management Commission Meeting    Jan. 16   Martin Luther King Jr. Day, City Offices Closed    Jan. 17   7:30 a.m. – District 281 Partnership Meeting    6/6:30 p.m. – City Council Work Session    Jan. 18  5:30 p.m. – North Metro Mayors Board of Directors Meeting      Jan. 19  8:30 a.m. – Bassett Creek Watershed Management Commission Meeting    1:30 p.m. – Blue Line Extension Meeting    Jan. 23  7 p.m. – City Council Meeting         Agenda Section Other Business Item Number  12.1