City Council Workshop

WORKSHOP OAKDALE CITY COUNCIL November 10, 2020 ATTENDANCE The City Council held a workshop on Tuesday, November 10, 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 (arrived at 5:14 PM) 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 Kevin Wold, Fire Chief 2021-2025 CAPITAL IMPROVEMENTS PROGRAM Public Works Director/City Engineer Bachmeier provided an overview of the city’s Capital Improvement Program (CIP) for 2021 to 2025. He noted that cost estimates for future years are not inflated and changes are made, as needed, based on bid results and updated cost information. Public Works Director/City Engineer Bachmeier recommended that the city continue to improve an average of three miles of streets, as has been the practice. He added that a new 2021 project in the CIP was trail and signal improvements along County Road 14, for which Washington County received grant funding and would require cost participation from the city. Public Works Director/City Engineer Bachmeier further added that Oakdale’s share would be only $26,000 for the trail segment and no cost for the signals. He added that the city could decline participation because the cost had not been included in previous reports. In response to a question from Council Member Zabel, Public Works Director/City Engineer Bachmeier explained that bond costs relating to road improvements increased in 2021, in part, due to the inclusion of commercial and industrial roads, which have wider and thicker pavement, higher commercial assessments, and the amount of assessable frontage. In response to a question from Mayor Reinke, Public Works Director/City Engineer Bachmeier explained that the city would not bond for the trail along County Road 14 but could use MSA funds. In response to questions from Council Member Zabel, Public Works Director/City Engineer Bachmeier explained that the available surface water management funds were used toward the Highway 36 and Hadley Avenue Interchange project and, thus, would not be available for pond maintenance in 2021; however, the city could partner with one of the watersheds should an issue develop. He added that the city typically cleans one or two ponds each year. Workshop November 10, 2020 Page Two In response to a question from Mayor Reinke, Administrative Services Director Petersen explained that the city’s capital equipment expenditures are not included in the finance summary. City Administrator Volkers added that in smaller items, such as computers and printers, should not be part of the capital equipment list and were removed, resulting in a $150,000 reduction. Mayor Reinke said his preference would be that all summary sheets be the same, where possible. In response to a question from Council Member Ingebrigtson, Public Works Director/City Engineer Bachmeier explained that the higher expenditure listed for a dump truck listed is for a large diesel dump truck. Council Member Zabel commented on the unassigned $6.8 million the city has and suggested using $644,000 of the fund for capital equipment rather than selling bonds. Mayor Reinke would like to ask the city’s financial authority how not bonding might affect the city’s bond rating. Administrative Services Director Petersen noted that an ambulance purchase needs to be factored in. City Administrator Volkers provided an overview of the use of CARES Act funds in public safety and suggested that those funds be used for capital equipment. Staff was directed to look into using reserve funds for capital equipment purchases. Utilities Public Works Director/City Engineer Bachmeier reviewed the utility section: rehabilitation of two lift stations; one in partnership with the City of Lake Elmo, one in Northdale Park. Projects to take place in 2021 or in 2021 and 2022 and be financed with WAC/SAC proceeds and utility reserves. Mayor Reinke supported both lift stations being done in 2021. Public Works Director/City Engineer Bachmeier commented on his discussions with Washington County relating to the potential turning back of County Road 14 and the options for the County to reconstruct the roadway prior to turning it back or providing funds to the city to make improvements. Public Works Director/City Engineer Bachmeier noted that the city would apply for a grant from the Minnesota Pollution Control Agency to finance the temporary water treatment plant for Well 7. Parks Public Works Director/City Engineer Bachmeier reviewed the parks section: trail repaving in portions of the Oakdale Nature Preserve, reroof picnic shelters in Walton Park with metal roofing, remodel kitchen in Walton Park shelter, replace wooden Oakdale Park sign with Oakdale Nature Preserve sign, and $50,000 for park planning study for the Willowbrooke development. Workshop November 10, 2020 Page Three In response to a question from Council Member Zabel, staff indicated that Walton shelters project could not be an insurance claim as the replacement was not being necessitated due to hail damage. Council Member Swedberg noted that the annual $15,000 Parks Without Borders budget designation would conclude in 2021 and also commented on the need to allocate additional funds for park maintenance in future budgets. She stated that the majority of the 2021 projects relate to necessary maintenance. Council Member Zabel expressed concern with past overspending in parks and noted that the fund experienced a revenue deficit in 2020 and would again in 2022. As such, he asked that the $15,000 Oakdale Nature Preserve sign replacement be postponed until revenue projections are known. Council Member Swedberg supported the park sign displaying the correct name, which was changed ten years ago, and suggested instead removing Parks Without Borders. Council Member Zabel provided details from recreation staff that the Walton park shelters are typically rented 20 to 25 times per year. Staff was directed to reallocate the $15,000 Parks Without Borders. Council Member Zabel suggested that the Willowbrooke park planning study be allocated to a different fund as the Parks Capital Improvement Program should relate to tangible projects. Council Member Swedberg agreed. City Administrator Volkers suggested that the City Council talk to the Community Development Director Streetar about allocating $25,000 from the $125,000 allocated for the Glenbrook Area Small Area Planning budget toward the Willowbrooke development park planning study. Council Member Zabel commented that park projects should be paid for with park reserve funds, not general obligation bonds. He also commented on how transfers can be made from the antenna fund. Building City Administrator Volkers reviewed the building section: future police expansion and public works construction and the city’s request to be made to the Legislature for local option sales tax. Council Member Ingebrigtson offered to reach out to Senator Housley to seek support of sales tax. City Administrator Volkers distributed budget information for the building fund. She added that Chief Sullivan would come before the City Council to discuss financing options for the police department furnishings relating to the expansion. Workshop November 10, 2020 Page Four Redevelopment Community Development Director Streetar presented the details of the Willowbrooke development as was provided to the City Council in April. He reviewed the phases, to be constructed over eight to 10 years, the components of the master development agreement, and associated costs to the city and to the developers. Community Development Director Streetar noted that in 2021, the city would construct 40th Street and assess 58 percent to the developer to be repaid, with interest, in eight years. He further noted that Washington County would upgrade Ideal Avenue in 2022 and cover 75 percent of the costs; the city and the developers would cover the remainder, of which the city would seek repayment from the developers of the city’s share over eight years. In response to a question from Council Member Ingebrigtson, Community Development Director Streetar noted that sales of all the parcels had not yet closed. City Administrator Volkers indicated that all the details would be part of the master development agreement. Council Member Zabel asked for clarification on amount to be assessed to the developers for 40th Street and noted that the $1.6 million would be 40 percent, not 58 percent as had been noted as the amount the developers would pay. Community Development Director Streetar explained that as part of the development of a large city park, to be called “The Commons, the city would be assessed for a portion of the adjacent two streets and in lieu of the city constructing the streets, the city’s share would be per a reduction in the developers assessments for the 40th Street project. In response to questions from Council Member Zabel, Community Development Director Streetar explained that it is common for cities to pay for half roads in new developments that are adjacent to a central park. He further explained that in lieu of paying for a portion of the streets, the developer could request park dedication, which would reduce the amount of open space in the development as more homes could be built. Community Development Director Streetar cited several other communities that pay for a portion of the streets. City Attorney Thomson explained that such matters are typically negotiated and is has been deemed fair that not all costs fall on the developer for streets that serve city parks. Community Development Director Streetar stated that the project would have 90 acres of park and open space and that the developers will give 48 acres as well as $349,000 to the city as park dedication. He added that the city would build and maintain trails as each phase develops. In response to a question from Council Member Ingebrigtson, Community Development Director Streetar explained that street names are assigned following the Washington County street naming system and park names will need to be determined. Workshop November 10, 2020 Page Five Community Development Director Streetar indicated that the landscape framework would be a low maintenance prairie design soon after site grading and he suggested assigning the park dedication money toward planting, care, and maintenance of these areas. He added that the developers are agreeable to providing additional funds toward landscaping as it would negate their costs associated grading stabilization. Attorney Thomson stated that negotiations with the developers’ attorneys have been going quite well. Community Development Director commented on estimated park development costs and that the city would need to determine park amenities. In addition, he talked about a platting correction that was needed to address property in Lake Elmo. Council Member Zabel asked whether Lake Elmo City Council might reconsider their decision to not support a roundabout at the 40th and Inwood intersection. Council Member Swedberg stated her disappointment that a roundabout was not going in that location. Council Member Ingebrigtson commented on the controversy involving roundabouts. He offered to talk to an acquaintance on the Lake Elmo City Council. City Administrator Volkers indicated that the city’s financial consultant, BakerTilly, was developing scenarios relating to assessments for the Willowbrooke project to be reviewed at a future time. She would like to propose bonding for 20 to 25 years to spread the costs out and then refinance if it makes good financial sense at the time. Community Development Director Streetar noted that once assessments are in place, the developer must pay them each year regardless of the stage of development. In reference to the roundabout, he explained that the roundabout would increase costs for the developers and affect earlier negotiations and also increase costs for the city. Police Chief Sullivan recommended that the developers have a plan for addressing security on the site. City Administrator Volkers noted that the city would receive $1,000 per home for the Water Availability Charge (WAC) and Sewer Availability Charge (SAC). In response to a question from Council Member Zabel, City Administrator Volkers and Administrative Services Director Petersen explained the annual impact on debt service for the Willowbrooke project. Council Member Zabel asked about any opportunities for grants or third party participation in the prairie landscaping and suggesting connecting with the chair of the Legacy Fund, Representative Lillie. Workshop November 10, 2020 Page Six REVISED NON-TRADITIONAL EXPENDITURES/EMPLOYEE RECOGNITION PROGRAM City Administrator Volkers reviewed proposed modifications to the city’s policy on employee recognition and employee and volunteer recognition events. She explained that the proposed policy offered two options for increasing the values of employee recognition awards and also offered alternatives to in- person employee and volunteer recognition events when such events cannot be held due to circumstances such as pandemics. The City Council supported Option B for the award values and modified the language relating to recognition events. PROCEEDS FROM THE SALE OF FORMER TITAN PARK PARCEL The City Council supported a request from the Parks and Recreation Commission for the proceeds from the sale of the former Titan Park parcel be assigned to the Park Capital Reserve Fund. REVIEW OF OAKDALE CUSTOMER’S WATER USAGE Administrative Services Director Petersen provided an overview of water usage, current rates, and proposed rates as well as usage tiers from neighboring communities. The meeting recessed at 6:50 PM. The meeting reconvened at 7:18 PM. After further discussion, the City Council supported setting the following tiers: Base Charge Per Gallons $12.30 0 to 25,000 Gallons $ 2.02 25,000 to 50,000 Gallons $ 2.25 Over 50,000 Gallons $ 2.40 CARES ACT EXPENDITURE REPORT Administrative Services Director Petersen reviewed the most recent CARES Act expenditures report. COUNCIL TOPICS Oakdale Nature Preserve Council Member Swedberg indicated that the forest gardens in the Oakdale Nature Preserve and the landscape memorial in Eberle Park had become unkempt and asked that a policy be development regarding maintenance of memorials. Estimates versus Actual Workshop November 10, 2020 Page Seven Council Member Swedberg provided a few examples where the estimated cost of a project is notably less than the amount presented to the City Council for contractual approval or payment. She asked that staff try and include language on budgeted amounts versus actual. City Code Council Member Ingebrigtson indicated that he would like each chapter of the city code updated and offered to serve as council liaison. Council Member Zabel commented on the need to update city policies as well. Charitable Gambling Proceeds The City Council discussed how charitable gambling proceeds may be used by the city. Administrative Services Director Petersen explained that proceeds may only be paid directly out of the charitable gambling fund and commented on reporting requirements. Canvass of Votes In response to a question from Council Member Olson, City Attorney Thomson indicated that he would provide the City Council with information on their vote canvassing duties. Indoor Market The City Council discussed the most recent executive order from Governor Walz pertaining to COVID-19. Restrictions and how it affect the city’s indoor market. ADJOURNMENT The workshop adjourned at 8:04 PM. Respectfully submitted, Susan Barry, City Clerk