11 20 23 Work Session MinutesCity Council Work Session November 20, 2023
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City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes
Work Session Meeting
November 20, 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
Ann Ackerson, Stantec
Jeff Alger, Community Development Specialist
Dan Boyum, City Engineer
Erin Enstad, Abdo
Tim Hoyt, Director of Police
Rich Johnson, Director of HR/Admin. Services
Beth Kramer, Communications Coordinator
Valerie Leone, City Clerk
Walker MacBeath, Human Resources Coordinator
Susan Rader, Director of Parks & Recreation
Jeff Sargent, Director of Community Development
Mark Severson, Recreation Facilities Manager
Bernie Weber, Director of Public Works
2023 PERFORMANCE
MEASURES
Item 11.1
Mayor Hemken introduced for discussion item 11.1, Review 2023 performance
measures survey results.
Ms. Beth Kramer, communications coordinator, explained the city has participated in
the program since 2011 to evaluate residents’ satisfaction with city services. She noted
in 2022 a professional citywide survey was conducted by the Morris Leatherman
Company.
Ms. Kramer stated there were 561 responses for the 2023 survey, and the ratings were
similar to past years. A new question added this year was Question #17 “Did you know
about the curbside appeal reimbursement program the city offers for qualifying home
improvement projects? If yes, how did you hear about it”.
Ms. Kramer reviewed the 2023 performance measures survey results. She stated the
survey data will be incorporated in the 2024 budget presentation and will be posted on
the city’s website.
City Council Work Session November 20, 2023
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Comments from Council included the likelihood that responses may differ based on
length of residency; some residents might not realize there are county roads within the
city and the city has no control over street maintenance of county roads;
disappointment regarding the low number of response; and the importance of
continuing with the survey format for a historical basis.
Council thanked Ms. Kramer for the report.
CAPITAL
IMPROVEMENT
PLAN AND LONG‐
TERM PLAN
Item 11.2
Mayor Hemken introduced for discussion item 11.2, Review of the city’s capital
improvement program (CIP) for 2024‐2033 and the updated long‐term financial plan
with Abdo.
Ms. Erin Enstad, Abdo, reported the 2024‐2033 long‐term plan contains several
assumptions and is to be used as a planning tool. She stated three new levies are
proposed in 2024 at $100,000 each for capital funds for fire, city hall, and the swimming
pool. She stated the Park Infrastructure Capital Fund will increase the levy for capital
by 5 percent annually. It is assumed that $500,000 will be levied each year to support
the ice arena capital and debt service obligations through 2033. The ice arena levy is
shown as a transfer out from the Park Infrastructure Capital Fund. She noted an
interfund loan of $825,000 is planned in 2026 to fund the ice arena parking lot
improvements. A $100,000 interfund loan to the Golf Course Enterprise Fund is
planned in 2026 to fund cold storage replacement, and a $700,000 transfer from the
Park Infrastructure Capital Fund to the Golf Course Enterprise Fund is planned in 2026
to fund replacement of the irrigation system.
Ms. Enstad stated the Street Infrastructure Capital Fund levy will increase the levy for
capital by 5 percent annually. She stated municipal state aid revenue will be received
for applicable projects.
Ms. Enstad stated the Water Fund will receive a $2.5 million payment from the Joint
Water Commission in 2026 to offset project costs related to the repainting of the south
water tower.
She stated the Street Light Fund plans to incur costs related to the Boone Signal
Replacement, monument sign, and lighting project for $500,000 in 2023. The Street
Light Fund will utilize a $500,000 five‐year interfund loan from the Sewer Fund to fund
the project.
Ms. Enstad stated the Central Garage Fund includes the value of cash in the Public
Works Facility Fund which incorporates prior year transfers and Coronavirus Relief
Act funding from the General Fund totaling $2,033,261.
Ms. Enstad stated as of December 31, 2022, the General Fund had a 46.9 percent
unassigned fund balance. She noted the tax levy is projected to increase from $20
million to $27.5 million over the duration of the 10‐year plan, and the city’s tax rate is
expected to increase to 59 percent. The city’s total debt outstanding is projected to
decrease from $43 million to $4 million by 2033. The total cash position of the city is
projected to increase from $48 million to $72 million over the duration of the plan.
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Ms. Enstad commented on the city’s pavement management plan and the need to
ensure the plan aligns with the cash balances of the long‐term financial plan.
Council Member London noted the 5 percent assumptions in some of the funds might
be too high. He also commented that the 3.5 percent growth rate for tax capacity may
be incorrect as property valuations may decrease.
Ms. Enstad stated Abdo will continue to monitor the city’s financial plan.
Council thanked Ms. Enstad for the presentation.
2024 BUDGET
Item 11.3
Mayor Hemken introduced for discussion item 11.3, Review public hearing
presentation for proposed 2024 budget.
Ms. Erin Enstad, Abdo, requested feedback from Council regarding the proposed
powerpoint document on the 2024 budget for the November 27 budget meeting. She
stated the presentation contains information regarding utility rates, performance
measures and tax levy information.
Council Member London recommended that the city’s revenue sources (fees and
property taxes) be explained during the budget hearing. Council expressed support
for the presentation.
MMKR AUDIT
PROPOSAL
Item 11.4
Mayor Hemken introduced for discussion item 11.4, Discuss three‐year audit proposal
from MMKR.
Mr. Reece Bertholf, city manager, explained the city has used the services of MMKR
since 2011. He stated the 2022 audit was approximately $40,000.
Mr. Bertholf stated MMKR has provided a three‐year proposal for years ending
December 31, 2023, 2024, and 2025 for $46,500, $48,125, and $49,800, respectively. He
stated costs of audit services have increased for a variety of reasons including the
complexity of governmental audits and new reporting standards as well as the
shortage of accountants and auditors. He noted the audit market for municipalities is
very competitive.
He stated Abdo recommends continuing to utilize MMKR and if Council is supportive
an engagement letter for the 2023 audit will be presented at the December 11 Council
Meeting.
Council expressed support of the three‐year audit proposal.
2024 FEES
Item 11.5
Mayor Hemken introduced for discussion item 11.5, Discussion regarding fees for
2024.
Ms. Valerie Leone, city clerk, reviewed the proposed changes to the 2024 fee schedule
including utility rate increases, credit card transaction fee of 3 percent, park and
recreation program and user fee increases, community development rate increase for
rental property and building permits, police department fee for body worn camera
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video requests, and public works permit fee increases for water and sewer connection
and repair fees and right of way permit fees.
Mr. Reece Bertholf, city manager, explained the proposed implementation of a new fee
for credit card transactions.
Ms. Susan Rader, director of parks and recreation, explained the proposed fee increases
for recreation programs, pool admission fees, golf course green fees, ice arena user fees
and facility use rental rate increases.
Council Member Elder asked if the city provided scholarships. Ms. Rader stated the
city does have a scholarship program for most recreation classes for eligible persons
up to age 18.
Council expressed support of the proposed fees for 2024.
Ms. Leone indicated the fee schedule will be presented for adoption at the December
11 Council Meeting.
FINANCIAL
MANAGEMENT
PLAN
Item 11.6
Mayor Hemken introduced for discussion item 11.6, Review updated financial
management plan (policies) with Abdo.
Ms. Erin Enstad, Abdo, reported the Council last reviewed the plan in its entirety at its
meeting on January 18, 2022. She stated the Revolving Fund Loan policy was adopted
by Council on November 14, 2022. At this time staff is presenting an update to the
Contract Policy to align with state statutes providing the city manager the authority to
approve expenditures up to $20,000.
Mr. Reece Bertholf, city manager, pointed out all contracts (including contracts less
than $20,000 that may not be presented at a council meeting) must be signed by the
mayor and city manager.
Council approved the revisions to the Financial Management Plan.
2024‐2033 PAVEMENT
MANAGEMENT
PLAN
Item 11.7
Mayor Hemken introduced for discussion item 11.7, Update and Discussion regarding
the 2024‐2033 Pavement Management Plan.
Mr. Dan Boyum, city engineer, reviewed the pavement management philosophy and
pavement rating system. He stated a more aggressive approach has shown significant
progress in road conditions. He reported approximately 39 miles of streets have been
improved of the entire 65 miles of local and MSA streets. He stated currently the city
has only 1.74 miles or 2.6% rated as “poor condition” or worse. He stated the average
pavement ratings for local streets improved from 81.76 (2022) to 82.64 (2023). He
identified water main break history and stated a full street reconstruction is performed
on streets that have significant water main breaks and/or sewer issues. He noted the
water break trend has been declining as a result of focusing on areas with extreme
history of breaks.
Mr. Boyum stated the plan contains projects and associated costs for years 2024
through 2033. He stated the estimated costs have been reviewed with the city’s finance
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consultant and staff strives to keep the costs within the parameters of the estimated
revenue stream.
Mr. Boyum explained that an extended life span has been observed on streets due to
seal coat and fog seal measures. He stated maintenance improvements with seal coat
and fog seals would be completed at 8 years (instead of 6 years).
Discussion ensued regarding the benefits of rating streets by staff instead of utilizing
an outside agency. Mr. Boyum stated borings and ground penetrating radar (GPR)
data is collected on pavement. He stated infrastructure improvements are not solely
determined based on street ratings and conditions, as utility conditions and water
break history are also taken into consideration. He stated as utility conditions and
water break history are also taken into consideration in addition to street ratings when
determining types of street improvements.
Mr. Boyum stated the 2024 infrastructure project cost estimate is $4.1 million, and the
cost estimate for the 2024 seal coat, flog seal and crack seal project is $389,323.
Mr. Reece Bertholf, city manager, commented that he learned another city intends to
follow New Hope’s Street Infrastructure levy model to eliminate the need for special
assessments.
MEDICINE LAKE
ROAD PEDESTRIAN
PROJECT
Item 11.8
Mayor Hemken introduced for discussion item 11.8, Consider Letter of Support for
County State Aid Highway 70 (Medicine Lake Road) Pedestrian Project.
Mr. Dan Boyum, city engineer, explained a proposed project involving ADA upgrades
along the Medicine Lake Road corridor, pedestrian crossing improvements, and traffic
signal upgrades. He stated the county is seeking a letter of support from New Hope
for their application for federal funding.
Mr. Boyum stated if the project moves forward, the city would likely be required to
share in costs (approximately $127,000). Mr. Boyum noted the project would be part of
the capital improvement program and could be funded by MSA funds.
Council directed staff to prepare the letter of support.
STREETLIGHT
BANNER
Item 11.9
Mayor Hemken introduced for discussion item 11.9, Select streetlight banner design
for 42nd and Xylon avenues.
Mr. Jeff Alger, community development specialist, stated at the May 15 work session
Council directed staff to reach out to graphic design students at Hennepin Technical
College for streetlight banner designs.
Mr. Alger stated the students provided 16 design concepts, and staff narrowed the
choices to four. He illustrated the designs to Council.
Council directed staff to proceed with Design number 1 subject to minor design
changes and colors.
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Mr. Alger stated the cost to purchase banners for 53 streetlights and five extra sets is
estimated at $9,300. He stated funding is available in the EDA budget.
EMPLOYEE SICK
AND SAFE TIME
(ESST)
Item 11.10
Mayor Hemken introduced for discussion item 11.10, Discussion regarding new state
law entitled Employee Sick and Safe Time (ESST) which becomes effective January 1,
2024.
Mr. Rich Johnson, director of HR/administrative services, reported on the new state
law titled “Employee Sick and Safe Time” (ESST) which becomes effective January 1,
2024. He stated the new law effects all employees who work at least 80 hours per year
and is not an independent contractor (includes part‐time and seasonal workers). He
explained an employer’s existing leave policy, such as paid time off (PTO), may
already fully or partially meet Minnesota’s earned sick and safe time requirements.
Mr. Johnson explained employers must provide each employee at least one hour of
ESST for every 30 hours worked up to 48 hours of accrued ESST a year. He stated ESST
can be used for the employee’s or a family member’s mental or physical illness
treatment or preventive care, absence due to domestic abuse, sexual assault or stalking
of the employee or a family member; closure of the employee’s workplace due to
weather or public emergency or closure of a family member’s school or care facility
due to weather or public emergency; and when determined by a health authority or
health care professional that the employee or family member is at risk of infecting
others with a communicable disease.
Mr. Johnson stated the city must provide employees with a notice by January 1, 2024,
or at the start of employment for new hires. There will be recordkeeping requirements,
and the total number of earned sick and safe time hours and the balance must be shown
on pay advices.
Mr. Johnson stated the city has two leave plans for its full‐time staff: 1) vacation/sick
leave (only sworn law enforcement are eligible for this plan); and 2) personal leave (a
paid time off plan that was implemented in the 1990s). He described staff’s
recommendations on implementation of ESST:
Make no change to the vacation leave plan.
Integrate ESST into the existing sick leave plan (will need to allow the first 48 hours
of sick leave to be used for any of the eligible uses of ESST).
Make no changes to the personal leave plan. However, provide ESST in addition
to personal leave.
Mr. Johnson stated staff believes this is the best way to proceed as it will provide a
viable method to track an employee’s ESST balance, accrual and usage on the pay
advices of employees on personal leave, and it will continue to highlight the city of
New Hope as an employer of choice in a very competitive environment of recruiting
and retaining quality staff.
Council commented on the complexity of the new law and recordkeeping
requirements.
Council supported staff’s recommendation for implementation of ESST.
City Council Work Session November 20, 2023
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2024 COUNCIL AND
COMMISSION
APPOINTMENTS
Item 11.11
Mayor Hemken introduced for discussion item 11.11, Discuss council and commission
appointments for 2024.
Ms. Valerie Leone, City Clerk, stated there are several persons on city commissions
with terms expiring December 31 who have expressed interest in being considered for
re‐appointment. She indicated a resolution will be prepared for adoption at the
December 11 Council Meeting, and vacancies will be advertised.
Ms. Leone stated based on rotation, it is Council Member Elder’s turn to serve as mayor
pro tem in 2024, and a resolution will be prepared for adoption at the January 8, 2024,
Council Meeting.
OTHER BUSINESS Council Member London stated he has been contacted by residents who noticed a paint
marking on some trees. He stated the residents are concerned as they have been
treating their Emerald Ash trees to prevent Emerald Ash Borer infestation. He asked
whether the city is marking trees for removal this fall.
Ms. Susan Rader indicated when the city marks a tree for removal, a letter of
explanation is sent to the property owner. She asked Council Member London to
provide the addresses so that she can consult the city forester on the matter.
ADJOURNMENT The meeting was adjourned at 8:41 p.m. as there was no further business to come
before the Council at its work session.
Respectfully submitted,
Valerie Leone, City Clerk