06 26 23 City Council MinutesNew Hope City Council June 26, 2023
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City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes June 26, 2023
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:
Also present:
Kathi Hemken, Mayor
John Elder, Council Member
Andy Hoffe, Council Member
Michael Isenberg, Council Member
Jonathan London, Council Member
Reece Bertholf, City Manager
Jeff Alger, Community Development Specialist
Dan Boyum, City Engineer
Rich Johnson, Director of HR/Admin. Services
Valerie Leone, City Clerk
Susan Rader, Director of Parks & Recreation
Jeff Sargent, Director of Community Development
Bernie Weber, Director of Public Works
Stacy Woods, City Attorney
Ann Ackerman, Stantec
APPROVAL OF
MINUTES
Motion was made by Council Member Elder, seconded by Council Member
London, to approve the regular meeting minutes of June 12, 2023. Voted in favor
thereof: Hemken, Elder, Hoffe, Isenberg, London; and the following voted against
the same: None; Abstained: None; Absent: None. Motion carried.
OPEN FORUM
There was no one present desirous of addressing the council.
PRESENTATION:
2022 ANNUAL
FINANCIAL REPORT
Item 5.1
Mayor Hemken introduced for discussion Item 5.1, Motion to accept the 2022
annual comprehensive financial report (ACFR).
Mr. Reece Bertholf, city manager, stated the report was reviewed with Council at
the June 20 work session by staff from Abdo Financial Solutions. He introduced
Bill Lauer of the audit firm Malloy, Montague, Karnowski, Radosevich & Co.
(MMKR) to summarize the audit. He recommended that the Council accept the
2022 audit to enable the city to submit the audit to the state auditor in a timely
manner.
New Hope City Council June 26, 2023
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Mr. Bill Lauer summarized the 2022 audit. He reviewed the auditor’s role and
stated the city received a “clean opinion,” which is the highest reporting available.
He stated the city implemented Governmental Accounting Standards Board
(GASB) Statement No. 87, Leases, in fiscal 2022. He reported the standard changed
the way lease transactions are reported by the city. Implementation resulted in the
reporting of new lease receivables and related deferred inflows of financial
resources for certain agreements where the city is the lessor, and new “right‐to‐
use” leased assets and related lease liabilities for certain agreements where the city
is the lessee. He stated the implementation did not result in the reinstatement of
beginning net position or fund balances. He stated there were no findings this year
for internal control and compliance report. He mentioned comments in the
management report regarding a deposit sweep account and credit card usage.
Council Member London asked whether the vehicle leases that were referred to as
“right to use” reflected higher debt. Mr. Lauer explained the leases are reflected as
both assets and liabilities.
Mr. Lauer stated the governmental fund balance as of December 31, 2022, was
$31,403,877, an increase of $1,349,091 from the prior year. He stated resources
accumulated for the second phase of the city’s public works facility addition in the
public works facility CIP fund contributed to the increase in assigned fund
balances.
Mr. Lauer reviewed the financial position of the General Fund revenue and
expenditures as well as the enterprise funds financial position (sewer utility, water
utility, golf utility, golf course, ice arena, storm water and street lighting). He stated
total net position of the city’s enterprise funds was $31,949,744 (an increase of
$2,389,438). The city’s total net position as of December 31, 2022, was $100,927,731
(an increase of $4,854,216).
Council Member London noted the city’s desire to achieve a higher bond rating.
He asked the auditor whether the city’s net position could improve the city’s bond
rating. Mr. Lauer indicated the city has a strong net position, and fiscal
responsibility is reflected on the budget expenditures and revenues.
Council thanked Mr. Lauer for his presentation.
MOTION
Item 5.1
Motion was made by Elder, seconded by Council Member Isenberg, to accept the
2022 annual comprehensive financial report (ACFR). Voted in favor thereof:
Hemken, Elder, Hoffe, Isenberg, London; and the following voted against the
same: None; Abstained: None; Absent: None. Motion carried.
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. Reece Bertholf, city manager, reviewed the consent
items.
New Hope City Council June 26, 2023
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FINANCIAL CLAIMS
Item 6.2
Approval of financial claims through June 26, 2023.
RESOLUTION 2023‐83
Item 6.4
Resolution approving City Manager Reece Bertholf Opting Out of the Minnesota
Public Employees Retirement Association.
MOTION
Item 6.5
Motion accepting certificate of achievement for excellence in financial reporting.
RESOLUTION 2023‐84
Item 6.6
Resolution approving the Sandburg Middle School Facility Use Agreement.
RESOLUTION 2023‐85
Item 6.7
Resolution approving a contract with DK Concrete LLC for New Hope’s sidewalk
replacement services (improvement project no. 1098).
RESOLUTION 2023‐86
Item 6.8
Resolution ratifying leases of vehicles and purchase of equipment in accordance
with the city’s capital improvement program for 2023 and 2024.
MOTION
Consent Items
Motion was made by Council Member Elder, seconded by Council Member Hoffe,
to approve the Consent items. All present voted in favor. Motion carried.
2023 CRACK REPAIR
AND SEAL COAT
PROJECT
(IMPROVEMENT
PROJECT NO. 1099)
Item 8.1
Mayor Hemken introduced for discussion Item 8.1, Resolution awarding contract
to Allied Blacktop Company for the 2023 crack repair and seal coat project
(improvement project no. 1099).
Mr. Dan Boyum, city engineer, stated crack repair and seal coating is performed
annually to extend the life of pavement. He illustrated the 12 miles of streets
proposed for crack repair and seal coat (Liberty Park neighborhood, Dorothy Mary
Park neighborhood, the West Broadway West neighborhood, the Begin Park
neighborhood, areas west of Holiday Park, the Northwood South area, the Quebec
Avenue area between 49th and Winnetka Avenue North, the Winpark Drive area,
Nevada Avenue from 36th Avenue North to the city limits, and 49th Avenue North
from Boone to Winnetka Avenue North, respectively).
Mr. Boyum stated four companies requested bid plans, but only one company
submitted a bid. He explained staff is considering soliciting bids earlier next year
to encourage more bidders.
He recommended awarding the contract to Allied Blacktop Company for
$481,346.35. The base bid was $412,452.60; Alternate 1 for 55th Avenue was
$38,403.85; and Alternate 2 for Quebec Avenue area was $30,489.90. The estimated
total including indirect costs and contingencies is $606,496 which is below the CIP
budgeted amount of $622,277.
Discussion ensued regarding companies who perform crack repair and seal coat
work. Mr. Boyum stated Allied Blacktop and Pearson Brothers are the two
companies who perform the majority of the work in the metro area. He noted the
city could bid the crack repair separate from the seal coat work, but doing so could
create scheduling conflicts between the two general contractors.
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Council Member London inquired of the city engineer’s indirect costs. Mr. Boyum
stated the standard 20% rate was used for budget purposes, although engineer
indirect costs for this type of project is typically much less (approximately 10‐12%).
Mayor Hemken thanked Stantec staff for their volunteer work in the city on June
20, 2023. Director Rader explained that 25 Stantec volunteers helped with various
projects at Northwood Park, Fred Sims Park, and the New Hope Golf Course. She
stated they also provided a BBQ lunch for city staff. Ms. Rader noted Stantec has
been performing “Community Day” in the city for several years, and it is much
appreciated.
RESOLUTION 2023‐87
Item 8.1
Council Member Isenberg introduced the following resolution and moved its
adoption: “RESOLUTION AWARDING CONTRACT TO ALLIED BLACKTOP
COMPANY FOR THE 2023 CRACK REPAIR AND SEAL COAT PROJECT
(IMPROVEMENT PROJECT NO. 1099).” 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.
INTERFUND LOAN
(IMPROVEMENT
PROJECT NO. 1092)
Item 10.1
Mayor Hemken introduced for discussion Item 10.1, Resolution approving
interfund loan in the amount of $1,073,601 from the temporary financing fund to
the Ice Arena Fund for South Rink Floor Improvements (Improvement Project No.
1092).
Ms. Susan Rader, director of parks and recreation, stated last November Council
approved the replacement of the floor, dasher boards and glass in the south rink
for $1,065,001. She stated the project started in mid‐March and was completed in
early June. Some minor additional items were required bringing the final project
cost to $1,073,601. She stated as recommended by Abdo and as outlined in the long‐
term plan, the interfund loan will be an interest free loan to be repaid over 15 years.
RESOLUTION 2023‐88
Item 10.1
Council Member Elder introduced the following resolution and moved its
adoption: “RESOLUTION APPROVING INTERFUND LOAN IN THE
AMOUNT OF $1,073,601 FROM THE TEMPORARY FINANCING FUND TO
THE ICE ARENA FUND FOR SOUTH RINK FLOOR IMPROVEMENTS
(IMPROVEMENT PROJECT NO. 1092).” The motion for the adoption of the
foregoing resolution was seconded by Council Member Isenberg, and upon vote
being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe,
Isenberg, London; and the following voted against the same: None; Abstained:
None; Absent: None; whereupon the resolution was declared duly passed and
adopted, signed by the mayor which was attested to by the city clerk.
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 June 26, 2023
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ADJOURNMENT
Motion was made by Council Member Isenberg, seconded by Council Member
Hoffe, 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 7:43 p.m.
Respectfully submitted,
Valerie Leone, City Clerk