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
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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.
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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.
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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.
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(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.
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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.
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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
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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