11 21 22 Work Session MinutesCity Council Work Session November 21, 2022
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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
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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
infested”. 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.
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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
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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
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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