09 18 23 Work Session MinutesCity Council Work Session September 18, 2023
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City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes
Work Session Meeting
September 18, 2023
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:
Reece Bertholf, City Manager
Erin Enstad, Abdo
Tim Hoyt, Director of Police
Rich Johnson, Director of HR/Admin. Services
Valerie Leone, City Clerk
Walker MacBeath, HR Specialist/IT Coordinator
Susan Rader, Director of Parks & Recreation
Jeff Sargent, Director of Community Development
Mark Severson, Recreation Facilities Manager
Bernie Weber, Director of Public Works
Stacy Woods, City Attorney
DIALOGUE WITH
CAC
Item 11.1
Mayor Hemken introduced for discussion item 11.1, Dialogue between City Council
and Citizen Advisory Commission.
Chair Scott Kulzer reported on the commission’s 2022 activities. He noted the CAC
has adopted the Liberty Park through the city’s adopt‐a‐park program and held two
clean‐up events.
Discussion ensued regarding commissioners’ community involvement. Council
encouraged the commissioner to relay comments from the community, provide
advice and share ideas with the Council. Chair Kulzer stated the commission has
been asked to be review the rain garden alliance proposal by Meadow Lake
Watershed and Friends of Northwood Lake associations at the commission’s meeting
in December.
Mayor Hemken thanked the CAC for being receptive to new endeavors. She
suggested the CAC consider sponsoring a car show in the city. Council Member
Elder offered to serve as the liaison.
Council thanked the commission for planting flowers in the 13 planters along 42nd
Avenue to beautify the city, conducting park inspections/reports, adopting Liberty
Park, and for their community outreach.
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Director Rader explained the adopt‐a‐park program and the CAC’s involvement with
park reports and evaluations.
Council Member London reported that a resident requested the trail be cleared at
Dorothy Mary Park. Director Rader indicated maintenance along the path recently
took place. She reminded Council that other than trail maintenance, Dorothy Mary
Park is to be left in its natural state. She stated staff is considering installing “Did You
Know” signage at the park’s three entrances to educate the public regarding the park.
Council Member Isenberg stated he was impressed with the ability to obtain park
information by accessing a QR code on a park sign.
Commissioner Kaufman expressed her interest in engaging youth in the community.
She commended Officer Kallio and Chief Hoyt for outreach efforts to students at
Robbinsdale Spanish Immersion School.
Council thanked the CAC for their report.
2024 GENERAL FUND
BUDGETS
Item 11.2
Mayor Hemken introduced for discussion item 11.2, Discussion of 2024 general fund
budgets with city manager, Abdo and department heads.
Mr. Reece Bertholf, city manager, stated the directors have been invited to the
meeting to review their respective budgets. The city manager and department
directors reviewed major projects or changes planned for 2024 as outlined in the
budget narratives:
Mr. Bertholf reported on the proposed budgets for Mayor and Council, City
Manager, Assessing, City Hall, Elections, and Fire Services.
Mr. Rich Johnson, director of human resources, reported on the proposed
budgets for Human Resources, Finance, Communications, and IT.
Mr. Tim Hoyt reported on the proposed budgets for Police and Animal
Control.
Mr. Jeff Sargent, director of community development, reported on the
proposed budgets for Planning, Inspections, Legal Services, and EDA.
Mr. Bernie Weber, director of public works, reported on the proposed
budgets for Streets, Engineering, Street Infrastructure Fund, and Central
Garage.
Ms. Susan Rader, director of parks and recreation, reported on the proposed
budgets for Recreation, Parks, Swimming Pool, and Park Infrastructure
Fund.
Mr. Bertholf stated Council adopted the preliminary budget and set the maximum
tax levy at its September 11 meeting. He expressed his appreciation to directors for
their work with the budget process. It was noted the enterprise and utility fund
budgets will be presented at the October 16 work session.
Mr. Bertholf stated staff is researching whether to add surcharge or convenience fees
with credit card transactions. He stated new fees would need to be added to the city’s
Fee Schedule that is adopted in December.
City Council Work Session September 18, 2023
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Council Member London requested that PMA management fees and vehicle leasing
costs be included with the list of consulting costs when preparing the 2025 budget.
Council Member London inquired regarding the clearance rate listed under
Performance Measures for the police department and ways to improve the
percentage. Chief Hoyt indicated the outcome is based on complexity of cases and
staffing levels in the investigations division.
Council Member London requested that the pavement management index be added
as a performance measure for the Street Infrastructure Fund when preparing the 2025
budget.
Discussion ensued regarding recent legislation regarding school resource officers and
necessary changes to provide law enforcement support at schools, the need for
significant repairs at the PUPS facility in Maple Grove for animals, leaving the
management analyst position vacant in community development, Emerald Ash tree
removals on public and private property, pool operation costs, seasonal staff costs
and increasing user fees, and phase 2 of the public works facility expansion project.
Council thanked the directors for their budget presentations.
AGENDA ORDER Council agreed to amend the agenda order to discuss Item 11.6 prior to Item 11.3.
CENTRAL GARAGE
SUPERVISOR
POSITION
Item 11.6
Mayor Hemken introduced for discussion item 11.6, Discussion regarding abolishing
the central garage supervisor position in the public works department.
Mr. Reece Bertholf, city manager, stated the city’s labor attorney is present and staff
would like to share information with the Council and discuss a separation
agreement.
Mr. Rich Johnson, director of human resources and administrative services, explained
that layoffs from city employment are not common nor taken lightly and are
implemented only after very careful, in‐depth consideration. The most recent layoff
from the City was in 2015 when the City abolished the information technology
coordinator position and began contracting with an outside vendor to provide the
City’s IT needs.
Mr. Johnson stated on September 13, the city manager, public works director, director
of human resources and administrative services and the city’s labor attorney met
with the central garage supervisor to inform the central garage supervisor of the
city’s intention to abolish this position. He explained in 2021, the police department
began the transition to leasing vehicles. In 2023, the community development
vehicles were replaced with leased vehicles as well. The majority of preventive
maintenance on leased vehicles is performed by outside vendors, resulting in less
work to be done internally. According to Public Works Director Bernie Weber, the
workload for central garage is projected to continue to decline as all police squads
will be leased by 2026. Work performed on the City’s larger public works vehicles
will continue to transition to outside vendors. He relayed that per Director Weber
some duties currently performed by the central garage supervisor will be distributed
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to other public works staff.
Director Johnson requested Council’s approval for staff to work towards reaching a
reasonable and fair separation agreement between the City and a long‐term
employee who has made significant contributions to the city. If Council is supportive,
staff will work towards crafting a separation agreement which would be brought
back to the City Council for formal approval.
He introduced Ms. Maggie Penland, Madden Galanter Hansen, PLLC.
City Manager Bertholf explained the position elimination is a business decision.
Ms. Penland stated the separation would also include a release of claims. Mr. Johnson
noted the city will provide payout for unused personal leave hours.
Council Member Hoffe asked whether there was another job available for the long‐
term employee.
Mr. Johnson stated there is no current opening, but the individual wouldn’t be
precluded from applying for a different position with the city in the future.
Mayor Hemken pointed out the budgetary impact. Council Member Elder
acknowledged abolishing the position is a business decision, and Council must be
good stewards of taxpayer dollars.
Council expressed support for a separation agreement.
COST OF LIVING
ADJUSTMENT AND
INSURANCE
CONTRIBUTION
Item 11.3
Mayor Hemken introduced for discussion item 11.3, Discussion regarding the cost‐of‐
living adjustment (COLA) for non‐represented employees in 2024 and the city’s
monthly contribution towards insurance coverage for 2024.
Mr. Rich Johnson, director of human resources and administrative services, stated
staff is proposing a 3% cost of living adjustment for non‐represented employees in
2024. He stated the adjustment would affect all non‐union employees including the
city manager. He noted an ordinance amendment adopted last fall approved a 3%
increase to Council’s salaries in 2024 as well. Mr. Johnson stated if Council is
supportive, the item will be placed on the December 11 Council Meeting agenda for
approval following the budget adoption.
Mr. Johnson pointed out the increases for personnel costs are listed on page 12 of the
2024 proposed budget. Discussion ensued regarding employees’ total compensation
package, step increases for new employees, performance pay, and employee
retention. City Manager Bertholf noted a competitive workplace requires a cost of
living adjustment.
Council supported the 3% increase and placing the item on the December 11 Council
Meeting agenda.
Director Johnson reported the city’s health insurance offerings are changing slightly
(the current $1,500/$3,000 high deductible plan to $1,600/$3,200 and the current
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$3,000/$6,000 plan to a $3,200/$6,400 plan). He stated he is pleased to report the
overall premium increase for 2024 is 2.21%. He explained it has been past practice for
the city to split any premium increase 50/50 between the city and employee. He
recommended the city’s monthly contribution be increased by $6, $12, and $15 for
single, employee plus one and family coverage, respectively. He stated it is necessary
to set contribution levels as open enrollment for insurance will take place in October.
Council supported placing the item on the September 25 Council Meeting agenda.
TOBACCO
DISCUSSION
Item 11.4
Mayor Hemken introduced for discussion item 11.4, Discussion regarding city code
section 8‐7, Tobacco and related products.
Ms. Valerie Leone, City Clerk, explained in August of 2020 the city made significant
changes to city code regarding the sale of tobacco including the regulation of flavored
products, increasing the penalties for compliance check failures, and setting a limit on
the number of licenses issued by the city. At that time the license cap was set at 21
based on the number of licenses that were issued in 2020. Prior to 2020 there was no
limit.
Ms. Leone stated all 21 licenses have been issued and tobacco licenses are in high
demand. She stated although the code has a “wait list” process, it is not used as it has
proven to be challenging to administer. She noted customers who have a tobacco
license are reluctant to relinquish the license even when it’s not in use (such as during
a lengthy remodel process) knowing the license may be unavailable at a later date.
She stated an existing business would like to obtain a tobacco license. She
recommended removing the restriction or increasing the cap.
Mayor Hemken stated the police chief indicated it would not be problematic to
administer compliance checks to additional licensees.
Mr. Jeff Sargent, director of community development, noted some new retail
businesses such as convenience stores will not locate in New Hope if they are unable
to obtain a tobacco license.
Council discussed the city’s small geographic area and agreed that 21 tobacco
licenses should adequately serve the community.
Mr. Bertholf thanked Council for considering the change and noted the cap will
remain in place.
COMPENSATION
STUDY
Item 11.5
Mayor Hemken introduced for discussion item 11.5, Request to Conduct a 2023
Compensation Study.
Mr. Rich Johnson, director of human resources and administrative services, stated a
compensation study by an outside consulting firm is included in the 2023 budget. He
indicated the city distributed a Request for Proposal in July and received proposals
from three firms: Abdo, Flaherty & Hood, and Gallagher. Mr. Johnson stated Flaherty
& Hood had the lowest cost proposal at a not‐to‐exceed price of $28,000.
Mayor Hemken inquired when the city last conducted a compensation study.
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Director Johnson stated the City’s current compensation plan was developed by
Springsted, Inc. (now Baker Tilly) in 2011 and was updated in 2017. He
recommended entering into an agreement with Flaherty & Hood. He indicated upon
completion of the study, the results and implementation of changes would be
reviewed with Council at a work session.
Council supported staff’s recommendation and directed staff to present a formal
agreement with Flaherty & Hood at the September 25, 2023, Council Meeting.
ADJOURNMENT The meeting was adjourned at 8:45 p.m. as there was no further business to come
before the Council at its work session.
Respectfully submitted,
Valerie Leone, City Clerk