City Council Workshop

WORKSHOP OAKDALE CITY COUNCIL November 24, 2020 The City Council held a workshop on Tuesday, November 24, 2020, at Oakdale City Hall, 1584 Hadley Avenue North, Oakdale, Minnesota. The meeting began at 5:02 PM. Present: Mayor Paul Reinke Council Members: Jake Ingebrigtson (arrived at 5:04 PM) Susan Olson Colleen Swedberg Kevin Zabel Also Present: Christina Volkers, City Administrator Jim Thomson, City Attorney Brian Bachmeier, PW Director/City Engineer (participated electronically) Susan Barry, City Clerk Alyssa MacLeod, Communications Specialist (participated electronically) Chelsea Petersen, Administrative Services Director Emily Shively, City Planner Bob Streetar, Community Development Director Bill Sullivan, Chief of Police Kevin Wold, Fire Chief (participated electronically) 2021 BUDGET City Administrator Volkers noted that the Capital Improvements Program (CIP) and the final budget would be brought back on December 8 for adoption and invited the City Council to bring forth any questions. Administrative Services Director Petersen reviewed the budget and noted that many changes were made, and continue to be made, to make it easier to decipher such as combining some funds and rolling some funds together. She noted that an in-depth discussion on special funds would likely take place in February. City Administrator Volkers noted that Oakdale’s budget has a substantial number of funds and staff was working on reducing the number by combining some, such as 4300 (Professional Services) and 4301 (Other Contractual Services) and would make notes in the budget of such changes. Council Member Zabel commented on the number of special revenue funds with no activity other than interest gains for several years and asked whether they could be combined in the upcoming budget. City Administrator Volkers explained that such funds were not uncommon. Administrative Services Director Petersen explained that more review was needed on the funds; for instance, to review how the Park Tool Escrow may be used. Mayor Reinke added that a former mayor supported using Park Tool reserves solely for parkland acquisition. Council Member Swedberg asked why the Park CIP on Page 1 showed $100,000 instead of $250,000. WORKSHOP November 24, 2020 Page Two Council Member Zabel explained that the levy page shows tax supported revenue only. Administrative Services Director Petersen concurred and noted that the Park CIP budget for 2021 totaled $250,000. City Administrator Volkers noted that in the event the city would no longer receive $262,000 in Local Government Aid (LGA), it would not critically impact the city’s budget compared t how LGA is depended upon in other cities. Administrative Services Director Petersen noted that city’s LGA had not previously been listed in the budget document would now would be. Mayor Reinke added that the city’s approach previously has been to use LGA for “one off” items and projects, but it is now merged with other revenues and expenses. Licenses and Permits In response to a question from Council Member Zabel, Administrative Services Director Petersen noted that the reduction in Rental Housing License revenue for 2021 depicts actual revenue rather than projected as had been used for budgeting purposes for a number of years. Council Member Zabel asked whether building permit revenue factored in the Willowbrooke project. Community Development Director Streetar replied that some revenue would occur in 2021 and significantly more in 2022. Administrative Services Administrative Services Director Petersen noted that all General Administration staff and programs, such as elections and central services, would now be housed in the General Administration budget instead of standalone budgets. She added that because of the number of changes made, the budget document would include an appendix explaining the modifications made. Finance Division Administrative Services Director Petersen noted a new code, 3600 – Insurance, would replace risk management. She added that the increase in the fund reflects the fund being under budgeted for a period of time as well as an increase in workers compensation insurance. Administrative Services Director Petersen also noted that Communications became a standalone budget and the increase reflected costs for producing the city newsletter and hosting the web page. Community Development Administrative Services Director Petersen noted that the budgets relating to recycling and the solar lease had been rolled into the Community Development budget. WORKSHOP November 24, 2020 Page Three In response to a question about the increase in wages, Administrative Services Director Petersen explained that some staff costs, previously coded to recycling, were rolled into the Community Development general budget. Council Member Zabel noted he had inquired about the $44,500 for professional services in the general fund for community development and learned it would be used primarily for outside consultants costs for two studies: electric vehicles and Glenbrook Small Area Plan; however, it was his understanding that the Economic Development Special Revenue Fund was increased to finance such studies. Community Development Director Streetar replied that the Community Development general budget provides for pre-development costs such as marketing and environmental studies, and the funds expended are typically repaid to the city when a tax increment district has been established He added that the purpose of the Economic Development Special Revenue Fund is for items identified in the approved comprehensive plan and that $50,000 in the Economic Development Special Revenue Fund has now been allocated for a park planning study associated with Willowbrooke which leaves no funding for the city’s revolving funds, housing loans, housing investment program, and small area planning. Council Member Zabel reiterated that his understanding was that the Economic Development Special Revenue Fund was to cover any community development studies involving hiring outside consultants, such as Willowbrooke park planning. Mayor Reinke noted that it was not his understanding. Council Member Zabel asked for clarification on what is funded by the Community Development General Fund and what is funded by the Economic Development Special Revenue Fund. Community Development Director Streetar explained that most Economic Development Special Revenue funds are revolving or to assist with redevelopment efforts and studies are funded out the Community Development general fund. He commented on the desire for funds to be made available to the Environmental Management Commission for projects, such as an electric vehicle study. Council Member Zabel pointed out that both the Community Development general fund and the Economic Development Special Revenue fund have been identified for Environmental Management Commission projects. Community Development Director Streetar explained that the electric vehicle study would be covered by the Community Development General Fund and remaining the $25,000 would be available for projects that come up during the year, such as the neighborhood preservation and enhancement initiative. City Administrator Volkers noted that the Community Development funds have projects tied to them for a number of years. WORKSHOP November 24, 2020 Page Four Community Development Director Streetar added that the Community Development General Fund is replenished as loans are repaid and commented on the difficulty of running programs with limited funding. Council Member Zabel supported removing the electric vehicle study from the budget for 2021. In response to a question from Council Member Olson, Council Member Zabel reiterated that his understanding was that all studies would be allocated to the Economic Development Special Revenue Fund. In response to a question from City Administrator Volkers, Council Member Zabel affirmed that he was recommending moving $28,000 from the Community Development General Fund to the Economic Development Special Revenue fund. He added that that modification would help reduce the levy. Council Member Zabel also recommended discussing the electric vehicle study when the City Council holds its annual meeting with the Environmental Management Commission. Community Development Director Streetar explained that many larger cities are doing electric vehicle studies and that the study was part of the city’s comprehensive plan. In response to a question from City Administrator Volkers, Mayor Reinke explained that typically funding is identified for those projects that are implemented after the budget has been approved. In response to a question from Council Member Zabel, Administrative Services Director Petersen explained that loan repayments go back to the fund as cash flow. Community Development Director Streetar’s request that a minimum of $5,000 be available in professional services to fund loan programs was supported. Council Member Swedberg supported holding off on the electric vehicle study in 2021. She also expressed concern with the increase in the Glenbrook Small Area Study to $125,000. Community Development Director Streetar explained that the $125,000 was estimated based on past studies and added that cost savings would occur with city staff assisting with the study. Council Member Swedberg suggested narrowing the scope of the small area plan by removing Twenty Nine Pines and Par 3. Council Member Zabel noted that no decision had been made to include the two areas. City Administrator Volkers recommending reducing the Glenbrook Small Area Study to $100,000 and for staff to request additional funds, if needed. Building Inspections Administrative Services Director Petersen noted that the reduction in wages resulted from hiring two employees at lesser salaries. WORKSHOP November 24, 2020 Page Five Recreation Administrative Services Director Petersen noted that the budget reflected a correction in how wages had previously been listed. Police Administrative Services Director Petersen provided an overview of modifications. Fire Administrative Services Director Petersen noted that three full-time firefighters would be added April 2, 2021; with two positions funded out of the General Fund and one out of the Enterprise Fund. She added that grant funds would be sought for the positions. Public Works Administrative Services Director Petersen noted that all staff costs were now budgeted to their respective divisions rather than to individual programs. Council Member Zabel inquired whether Public Works staff could perform lawn care at the two fire stations in lieu of hiring a contractor. Public Works Director/City Engineer Bachmeier replied that he would discuss the matter with the staff. He added that contractor rates for lawn care are very competitive. City Administrator Volkers noted that staff would come back with a recommendation. Fire Chief Wold noted that lawn care costs could potentially be absorbed into the fire service contract. Special Revenue Funds Surface Water Management Administrative Services Director Petersen noted that the surface water fees were updated per the recently completed rate study and, per the study, street light revenue was added to the fund. In response to a question from Council Member Zabel, Public Works Director/City Engineer Bachmeier explained that sediment cleaning was eliminated, not catch basin maintenance. Communications and Broadcasting Administrative Services Director Petersen reviewed the fund. Council Member Zabel commented on revenue declining as cable subscribers become fewer. WORKSHOP November 24, 2020 Page Six Recreation Administrative Services Director Petersen reviewed the fund. Forfeit Proceeds and Restitution Services Administrative Services Director Petersen reviewed the fund. Charitable Gambling Administrative Services Director Petersen reviewed the fund and noted that, by law, proceeds can be used for only certain things. Neighborhood and Strategic Initiatives Administrative Services Director Petersen reviewed the fund. Council Member Zabel inquired about the difference between neighborhood improvements and home improvements. Council Member Zabel asked that the $25,000 for the electric vehicle study be removed from the 2021 budget and brought back to the City Council for discussion. Council Member Olson did not support an electric vehicle study based on the number of electric vehicles in the city per shared by Council Member Swedberg. Council Member Swedberg agreed. City Administrator Volkers noted that the Small Area Planning item would be reduced from $125,000 to $100,000. Veterans Memorial Fund Administrative Services Director Petersen reviewed the fund. Capital Funds and Enterprise Funds Administrative Services Director Petersen provided an overview of the various funds. The meeting recessed at 6:44 PM. The meeting reconvened at 7:10 PM. CODE BOOK: CHAPTER 5 – BUILDING REGULATIONS – SWIMMING CODE DEMOLITION WORKSHOP November 24, 2020 Page Seven The City Council supported bringing back the proposed code amendment that would add requirements relating to the demolition of in-ground swimming pools for adoption on December 8. CODE BOOK: CHAPTER 21 – SUBDIVISIONS Community Development Director Streetar reviewed a recommendation to amend Chapter 21, Subdivisions, of the city code to facilitate the implementation of approved small area plans. He explained that when a property owner brings forth a parcel for development, the property owner would also need to provide a rendering showing how contiguous parcels would be platted, even when development would occur in phases. City Attorney Thomson added that the ordinance would also apply where property owners own several contiguous parcels. He further added that the City Council would retain the ability to make modifications as subsequent parcels are brought forth. City Attorney Thomson affirmed that the proposed code could be modified to address only small area plans. In response to a question from Council Member Zabel, Community Development Director Streetar explained that the proposed language had not been considered when the city approved small area plans; however, the language was formulated based on recent inquiries from developers. Council Member Zabel asked that the proposed ordinance be brought back for consideration on January 12 to allow additional time for review city-wide implications. Council Member Olson supported moving forward with the version addressing small area plans only and to bring back a community-wide version at some point. Council Member Swedberg agreed. Mayor Reinke agreed. Council Member Ingebrigtson did not support any version of the proposed ordinance as they would limit options for property owners, but did support bringing the proposed ordinance back on January 12. CARES Act Expenditures Update Administrative Services Director Petersen reviewed the final CARES Act expenditure report. PROPOSED POLICY: PARK DONATIONS AND MEMORIALS Council Member Swedberg asked that staff bring the policy back with more clearly defined maintenance responsibilities. BOARD/COMMISSION APPOINTMENT OF COUNCIL LIAISONS Discussion to come back to the City Council December 8 work session. WORKSHOP November 24, 2020 Page Eight COUNCIL TOPICS The City Council briefly discussed virtual meeting options for the December 8 Truth in Taxation presentation. The City Council decided to make the 2020 Outstanding Volunteer of the Year presentation at the December 3 Oakdale Area Chamber of Commerce virtual meeting. ADJOURNMENT The work session adjourned at 8:20 PM. Respectfully submitted, Susan Barry, City Clerk