City Council Workshop

WORKSHOP OAKDALE CITY COUNCIL September 8, 2020 ATTENDANCE The City Council held a workshop on Tuesday, September 8, 2020, at Oakdale City Hall, 1584 Hadley Avenue North, Oakdale, Minnesota. The meeting began at 5 PM. Present: Mayor Paul Reinke Council Members: Jake Ingebrigtson Susan Olson Colleen Swedberg Kevin Zabel Also Present: Christina Volkers, City Administrator Jim Thomson, City Attorney Brian Bachmeier, Public Works Director/City Engineer Susan Barry, City Clerk Alyssa MacLeod, Communications Specialist Chelsea Petersen, Administrative Services Director Bob Streetar, Community Development Director Bill Sullivan, Chief of Police Julie Williams, Recreation Superintendent Kevin Wold, Fire Chief UTILITY RATE STUDY Patty Kettles, BakerTilly, presented the water, sewer, surface water, and street light rate study prepared for the city. She recommended a 2.5 percent annual increase in water, sewer, and street light rates; and increases in surface water rates as noted: 2021: 40 percent, 2022-23: 10 percent, and 2024-25: five percent, as well as making a $200,000 transfer into the Surface Water Fund from the Street Light Fund in 2020 and 2021. Ms. Kettles provided sample average monthly and quarterly bills for residential users and sample average monthly bills for both small commercial users and large commercial users showing the effect of the proposed increases. In response to a question from Mayor Reinke, Ms. Kettles noted that the average base usage for other communities is 18,000 gallons; whereas, Oakdale’s is 35,000. Mayor Reinke noted that a lower base would result in higher utility bills for Oakdale’s customers. Public Works Director/City Engineer Bachmeier added that the sewer base is set on water consumption during winter, when usage is lower. Surface Water In response to a question from Council Member Zabel, Public Works Director/City Engineer Bachmeier explained that the difference in surface water rates for single-family and multiple dwellings is based on the amount of impervious surfaces. Street Lights WORKSHOP September 8, 2020 Page Two Public Works Director/City Engineer Bachmeier explained that maintenance costs had been moved under the General Fund but could be returned to the Street Light fund. He added that the city spends $75-100,000 on annual street light maintenance and replacement. Ms. Kettles reviewed Oakdale’s current and proposed rates with those of the surrounding communities. Public Works Director/City Engineer Bachmeier noted that in some communities, the street lights are owned by Xcel Energy; whereas, in Oakdale, only a portion of the lights are owned by Xcel Energy. City Administrator Volkers shared that Xcel Energy had expressed an interest in purchasing city-owned street lights but the most cities wish to retain ownership. Utility Rates Council Member Zabel asked that consideration be given to developing a tiered rate system as a way of increasing water conservation efforts and to get the per person usage closer the desired levels set by the Metropolitan Council. In response to a request from Council Member Zabel, Administrative Services Director Petersen indicated that she would bring back usage data to the next work session. Referencing tiered rates, Public Works Director/City Engineer Bachmeier noted that lower tiers could adversely affect utility accounts that have more household members. He also noted that irrigation systems are not as prevalent in Oakdale as in some other communities and only represent 20 percent of the city’s annual water consumption. In response to a question from Council Member Olson, Ms. Nettles explained that the city’s commercial accounts are billed monthly, whereas, residential accounts are billed quarterly. Mayor Reinke supported rewarding water conservation but was hesitant to increase fees to do so. Council Member Zabel noted that the rate study was per that requested by the City Council and now offers the opportunity to review related policies. He asked to revisit the policy that identifies which fund should house street light maintenance. Mayor Reinke was surprised to learn that 27 percent of the city’s households were at poverty level. Council Member Ingebrigtson supporting raising rates for water conservation reasons but not solely to increase revenue. The City Council gave general support for implementing incremental increases to the city’s utility rates and to give more consideration to establishing a tiered rate systems for water usage. LONG TERM FINANCIAL PLAN – 2020-2030 FINANCIAL FORECAST WORKSHOP September 8, 2020 Page Three Ms. Kettles presented the city’s financial forecast and updated from the forecast reviewed by the City Council in April. City Administrator Volkers noted that the updated forecast includes modified dates for the police department expansion and public works construction as the result of delays in legislative action needed to implement a local sales tax to finance the projects. In response to a question from Council Member Ingebrigtson, City Administrator Volkers explained how additional development would create the need for additional staff in certain departments, such as Building Inspection, Police, and Public Works. Community Development Director Streetar commented on the likely effect on the economy due to the pandemic and taxable sales over the next 20 years. Council Member Ingebrigtson spoke about the need to be prepared for a possible economic downturn. City Administrator Volkers commented on reallocating the sales tax revenue following completion of the building projects. In response to a request from Mayor Reinke, Public Works Director/City Engineer Bachmeier provided an update on the site being considered for the Public Works facility: soil borings being taken and a footprint being developed to determine location of building. He added that 3M has indicated they would donate the parcel, valued at $2.3 million, to the city. MOBILE FOOD TRUCK LICENSES: BACKGROUND INVESTIGATIONS Police Chief Sullivan recommended that background investigations no longer be required for mobile food truck licenses as they have limited value. He responded to a concern expressed by Council Member Olson about sex offenders and that he would come back to the City Council in the future should his recommendation change. The City Council supported Chief Sullivan’s recommendation to bring back action to remove the background investigation requirement for mobile food truck vendor licenses from the city code. PROPOSED ORDINANCE: SPECIAL EVENTS AND BLOCK PARTIES City Administrator Volkers reviewed a proposed ordinance to regulate special events held on both public and private property and to amend the existing code to update language relating to block parties. The City Council asked for two modifications: Sec. 14.01 Purpose. Change the “and” in the third sentence to “or”. Sec. 14.05 Special Event Permit Application. Applications to be filed 30 days, rather than 45 days, before the event. WORKSHOP September 8, 2020 Page Four In response to a comment from Council Member Zabel, City Clerk Barry explained that staff recommended that there be no general application fee; however, certain other fees would be applied based on needs of the applicant. The City Council generally supported no fee for special event applications. COMMUNITY DEVELOPMENT UPDATE Community Development Director Streetar provided the following updates: Tanners Lake Redevelopment Site: Letter of Interest from Wyndham Hotels, includes a restaurant component; hotel could be three to four stories in height. Bike and Pedestrian Plan: Plan development temporarily halted until public meetings can resume and public input compiled; new Community Development staff person will oversee project; original timeline was for plan to be completed in summer of 2020. Council Member Zabel expressed frustration with project delays and lack of updates to the City Council. Community Development Director Streetar stated that he had talked to the interim city administrator about providing updates. Council Member Olson suggested scheduling public engagement meetings in the spring of 2021, if possible. Council Member Ingebrigtson asked that the City Council be provided with the responses gathered at the public engagement meetings. The City Council generally supported holding public engagement meetings on the bike and pedestrian plan in the spring. MnDOT I-694/I-94/I-494 EAST METRO INTERCHANGE STUDY Ryan Coddington, MnDOT East Metro District Engineer, reviewed the study for the I-694/I-94/I-494 interchange. The City Council supported Mayor Reinke sending a letter of support to the Minnesota Department of Transportation for a federal grant application for proposed improvements to the I-694/I-94/I-494 interchange and capacity expansion to the eastbound I-94 travel lanes from the interchange to Woodbury Drive. The meeting recessed at 6:48 PM. The meeting reconvened at 7:50 PM. WORKSHOP September 8, 2020 Page Five COUNCIL TOPICS Mayor Reinke announced that a special work session would be held on Monday, September 14 to discuss the bridge over 4th Street and the proposed bridge over I-94, bridge ownership and maintenance. BUDGET 2021 City Administrator Volkers reviewed additional details to the proposed 2021 budget that were requested by the City Council at the August 25 work session. She asked the City Council to support a four percent levy increase. In response to a question from Council Member Zabel on the city’s Metro Cities membership, Community Development Director Streetar commented on the important role the organization plays in policy development for municipalities. In response to a question from Council Member Ingebrigtson, Police Chief Sullivan stated that he was comfortable with the training budget for his department for 2021. City Administrator Volkers shared that the city would continue to move toward a career department by hiring three firefighters to start April 1. Council Member Zabel recalled start dates of July 1. City Administrator Volkers recommended April 1 and commented on the potential of federal grants being made available for hiring firefighters. Fire Chief Wold commented on the need for additional staff as the complement of the south station was down to nine volunteer firefighters. In response to a question from Council Member Ingebrigtson, Chief Wold stated he was comfortable with the training and resources budgets for his department. Council Member Zabel reiterated his support of July 1 start dates and also stated that he would not support any increase to the levy. Council Member Olson supported increasing the levy for the purpose of hiring additional firefighters. She also supported start dates of April 1 for the firefighters. Mayor Reinke and Council Members Ingebrigtson and Swedberg supported start dates of April 1. City Administrator Volkers reviewed portions of the proposed budget where increases were noted, several of which related to moving funds from one department or division to another. Council Member Zabel noted that the city’s Local Government Aid was anticipated to increase in 2021. WORKSHOP September 8, 2020 Page Six In discussing reducing overtime costs, Police Chief Sullivan commented on the department’s needs to continue to pay overtime for court time, holiday pay, etc. He also commented that discussion at the last council – department head retreat included the council supporting what is needed to properly serve the community. Council Member Ingebrigtson asked if hiring another police officer would help offset overtime costs. Police Chief Sullivan explained that it would not. City Administrator Volkers indicated that Oakdale operates under a very lean budget and staff. Public Works Director/City Engineer Bachmeier noted that Minnesota State Aid funds available to cities would likely decrease in 2021. Mayor Reinke stated that a four percent levy increase would equate to a three dollar tax increase for a home valued at $250,000 and would cover the city’s basic business operations, hiring three firefighters, and building up funds for the police department expansion and public works facility. Council Member Zabel replied that an increase could result in complaints from the community due to being in a recession and dependent on other taxing jurisdictions. He agreed with setting the preliminary levy at four percent and stated that for 2019 it was set too low and boxed in the council. In response to a question from Council Member Zabel about the use of CARES Act funds for overtime, City Administrator Volkers explained that CARES Act funds may only be used for one-time expenses. In response to a suggestion from Council Member Zabel to code printing costs for the city newsletter to a special revenue fund, City Administrator Volkers asked that the City Council contact her with similar ideas. Council Member Olson commented on the importance of all staff. Council Member Ingebrigtson concurred. The City Council supported a preliminary levy increase of four percent at this point in time. ADJOURNMENT The workshop adjourned at 8:46 PM. Respectfully submitted, Susan Barry, City Clerk