City Council Workshop

AGENDA City Council Workshop Workshop May 24, 2022 Council Chambers 5:00 PM Advisory Body Appointment – Parks and Recreation 5:10 PM Council Discussion re: Appointment 5:15 PM Comp Plan Discussion – Economic Development Chapter, Continued 5:45 PM Summerfest Update 5:55 PM CR14 Sanitary Sewer Capacity Study 6:15 PM Body Worn Cameras 6:35 PM Ideal Avenue Financing Options 6:40 PM Council Topics 6:55 PM Adjourn for Regular Meeting  COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Christina M. Volkers, City Administrator Date: May 24, 2022 Subject: Interview to Appoint – Parks and Recreation Commission BACKGROUND Per City Policy MIS-013 Section 6.0 Boards and Commissions Appointment, Reappointment, and Service: 6.0 Application Process 6.1 All persons interested in being appointed to an Oakdale advisory board or commission shall complete an application provided by the City of Oakdale. 6.4 Upon reviewing the application, the staff liaison shall determine whether the applicant meets the preliminary criteria for the respective board or commission. 6.9 Applicants selected for appointment to boards and commissions by the City Council shall be those persons who, in the judgement of the City Council, are representative of the community and are qualified by training, experience, and interest, useful for the fulfillment of the board or commission’s responsibility. At this work session, the City Council will interview an individual seeking to be appointed to the Parks and Recreation Commission. Application is being sent under separate cover. 5:00 PM Parks and Recreation Commission Glen Bearth  COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Andrew Gitzlaff, Community Development Director Date: May 24, 2022 Subject: Comprehensive Plan Economic Development Chapters, Continued Discussion BACKGROUND Through a series of Council workshops staff has been providing a chapter-by-chapter overview of the Comprehensive Plan and facilitating a discussion with Council on the following:  Are the policies identifying the appropriate course of action to achieve the goal?  Is anything missing, inaccurate or in need of further evaluation?  Are there some policies that should be prioritized? Chapters are sent out with the agenda packet for review in advance. Staff is tracking language changes that will likely need to be made as part of a future Comprehensive Plan amendment. See attached comment tracker form for reference. The Introduction and the Land Use Chapters were discussed at the February 8, 2022 and February 22, 2022 Council workshops. The Housing and Neighborhoods Chapters were discussed at the April 29, 2022 Special Council workshop. The Transportation Chapter was discussed at the April 26, 2022 meeting. At this meeting, the discussion began on the Economic Development Chapter but was tabled after discussion Goal 1 due to meeting time constraints. At the May 24, 2022 Council workshop, staff will continue the facilitated discussion with Council on the Economic Development Chapter of the Comprehensive Plan starting on Goal 2. Future Council workshops will focus on the remaining chapters of the Comprehensive Plan. (4) Water resources (5) Parks and Trails (8) Resilience (10) Implementation Attachments Comment Tracker Economic Development Chapter of the 2040 Comprehensive Plan  Comprehensive Plan City Council Comment Tracker Date Received Chapter Comment Recommended Action 2-8-22 Chapter 2 – Concerned about the preciseness of some of the Revise statement to say Workshop Land Use policy statements in the Comprehensive Plan “consider an annual including Goal 2 Policy 4 establishing an annual EDA levy along with the EDA levy to fund predevelopment and other funding rehabilitation activities. mechanisms”. 2-8-22 Chapter 2 – Council emphasized that the words that are used Noted. Workshop Land Use are important. 2-8-22 Chapter 2 – Council wanted more information on the specific Consider updated the Workshop Land Use parcels listed under Goal 1 Policy 1 and more list of sites based on clarity on the Council’s role in preparing needs / interest from redevelopment plans considering many of these landowners, add more properties are privately owned. clarity to the City’s role in preparing redevelopment plans. 2-8-22 Chapter 2 – Council expressed a concern about references to Add more clarity in Workshop Land Use public financing and how it creates a perception Comprehensive Plan to that the City will provide public financing for where, when, how and every project without additional evaluation of the why public financing merits. Staff noted that the Comprehensive Plan would and would not be is not the last word. It provides overall guidance considered. but the City Council can direct staff to conduct additional study and craft more specific policies and programs to better define and interpret the current Council’s position. 2-22-22 Chapter 2 – Our current TIF policy doesn’t separate Review the Baker Tilly Workshop Land Use residential and commercial and is outdated. TIF Summary and Council would like to see a comparison and update the City’s TIF contrast of how it is now and recommendations Policy as a separate from staff for how it could be improved. effort and reference the updated TIF Policy in the Comprehensive Plan. 3-29-22 Chapter 6 - There are a lot of other subsidies such as Consider noting other Workshop Housing Section 8 vouchers and mortgage assistance programs in the programs that are not captured as publicly Housing Chapter and subsided housing units in the existing local their contribution condition chart. towards meeting the City’s affordable housing goals. 3-29-22 Chapter 6 - The Comprehensive Plan Area Median Income Reference current AMI Workshop Housing (AMI) numbers listed in the plan are outdated. but do not include a specific number because it does not change every year. 3-29-22 Chapter 6 - Desire to take a closer look at the Neighborhood Staff will review the Workshop Housing Preservation and Enhancement Initiative’s NPEI, the process for Housing Rehabilitation Strategic Framework approval and discuss (NPEI). with Council if changes should be made to  better reflect the Comp Plan and the current Council’s thinking. 3-29-22 Chapter 6 - What does it mean to develop plans under Goal Consider adding clarity Workshop Housing 1 Policy 2? to the type of plans referenced (finance plan, management plan). 3-29-22 Chapter 6 - What happens if you do not meet the Ensure the Workshop Housing Metropolitan Council requirements? Ultimately it Comprehensive Plan could end up in legal challenges or the City may remains legally become ineligible to receive future grants under defensible, not in the Livable Communities Act. conflict with regional plan and fulfills our requirements to be eligible for funding. 3-29-22 Chapter 6 - How was the 791 units of affordable housing No change since the Workshop Housing established? Staff clarified these numbers number is established came directly from Metropolitan Council based by the Metropolitan on a regional allocation formula. The Council. Metropolitan Council does not require a City to meet this number. The Metropolitan Council does require (through review of the land use plan conformity) that there is sufficient land use and allowable densities programmed within the City so that these units can feasibly be built. The Metropolitan Council also will make sure that the City has identified tools (within the housing chapter) that could be used to accomplish the goal. 3-29-22 Chapter 9 - There are multiple references to the City’s Remove references to Workshop Neighborhoods emergency home rehabilitation loan program. this particular program if discontinued by the City and references other active program partnerships 3-29-22 Chapter 9 - City Council provided direction to consider Staff will work on Workshop Neighborhoods adopting MN State Statutes 65A.50 Trust or adopting as a separate Escrow Accounts: Insured Real Estate Property effort from the Fire or Explosion Loss Proceeds into the City Comprehensive Plan Code 3-29-22 Chapter 9 - How will our progress be tracked to meeting the Additional detail is Workshop Neighborhoods adopted goals? provided in the implementation chapter which will be discussed at a future workshop. 4-26-22 Chapter 3 - Goal 2 – Some of the policies seem outside the For additional clarity, Workshop Transportation City’s ability to control such as burying suggest using words powerlines along Highway 120 such as coordinating with, advocating or supporting the work of others. 4-26-22 Chapter 3 - Goal 3 - Policy 5 states support for jurisdictional Consider removing Workshop Transportation roadway transfers, Council discussed whether entirely or adding we really wanted to support future jurisdictional additional explanation  transfers. It is unclear what the benefit would be that the transfer must to the City for taking on the additional roadway be in the financial responsibilities. interests of the City and to the benefits of residents 4-26-22 Chapter 3 - Goal 4. Consider adding a policy to support the Consider adding this Workshop Transportation addition of a pedestrian walkway adjacent to the policy to the 40th Street bridge over I-694 improving access Comprehensive Plan. from existing neighborhoods on the west side to Having this policy in the Willowbrooke neighborhood on the east side place will help support future funding requests at the state and federal level 4-26-22 Chapter 3 - Goal 5. Question about the City’s role in Policy Statement 3 Workshop Transportation collaborating with Metro Transit. Clarification could better specify was provided that Metro Transit operates the that Metro Transit is the regional system but the City can provide input on service provider where routes can go 4-26-22 Chapter 7 – Goal 2. Question about whether this should be Unless causing harm Workshop Economic two separate Goals, one focused on jobs and suggest leaving as one Development other on quality of life Goal recognizing that these Goals were the result of a public engagement process, the policies under the Goal could be better aligned. 4-26-22 Chapter 7 – Goal 1 – Concern about the term Living Wage Consider adjusting the Workshop Economic and how it might be misinterpreted as the city Goal to remove the Development supporting a mandatory minimum wage word shall and replace with encourage or use an alternative term other than living wage. 4-26-22 Chapter 7 – Policy 3 – ensuring adequate supply of land for Consider updating to Workshop Economic new and expanding commercial and industrial reflect current realities Development development may be out dated with the limited amount of land remaining in the City 4-26-22 Chapter 7 - Policy 1 – Question about if the City really want Consider updating to Workshop Economic to be spending a lot of resources attracting reflect current priorities Development specific businesses?  CHAPTER 7 Local economic development is achieved when a community’s standard of living can be preserved ECONOMIC and increased through a process of human and physical development that is based on principles DEVELOPMENT ofAll broadly shared prosperity and sustainability. Oakdale residents of any age, race, ethnicity, physical or mental ability should have the opportunity for a good quality of life and personal wellbeing. A good quality of life includes access to living-wage jobs, which are jobs that pay enough to support a basic needs budget for food, housing, child care, health care, transportation, personal necessities, retirement, and higher education needs. Furthermore, a good quality of life includes the availability, accessibility, and affordability of high quality public goods and services such as public safety, parks and recreation, education, transportation options, neighborhoods, and health and human services. Pursuing this vision of economic development requires the sustainable use and preservation of the City’s natural resources and quality of life. Economic Development 61  GOAL 1 Living wage jobs shall be maintained and increased to provide employment opportunities and a continually improving quality of life for all residents. POLICIES: 1. Administer a 2. Administer a 3. Ensure an adequate 4. In partnership with program to attract new program to retain and supply of land for public and private businesses to Oakdale. assist in the expansion new and expanding stakeholders, support of existing Oakdale commercial and those wishing to start businesses. industrial development. a new business in Oakdale. GOAL 2 The local economic environment shall provide business and labor with the supports necessary to be successful and ensure continued employment opportunities for all residents. POLICIES: 1. Support the success 2. Provide business 3. Partner with the 4. Plan for the of business and financing options MN Department development and labor by connecting to support the of Employment integration of transit them to resources at maintenance and and Economic service, affordable the MN Department upgrading of existing Development (DEED) daycare, housing of Employment commercial and and the Washington options that reflect the and Economic industrial buildings County Workforce wages paid by Oakdale Development (DEED) and increase the Center to respond businesses and other and other State, sustainability of to firm closures supports required to County, and Federal business operations. or contractions to ensure the success of agencies. assist dislocated business and labor. workers transition to new employment opportunities. 62 Economic Development GOAL 3 GOAL 4 The local economy and The number of Oakdale employment base shall be residents who struggle the diverse so as to ensure the most in securing employment continued employment for all that provides a minimum residents. standard of living shall be POLICIES: reduced. 1. Market the City to attract and retain POLICIES: businesses that complement and diversify the economic base. 1. Work in partnership with other public and private stakeholders to ensure 2. Promote the expansion of business-to- employment opportunities for those with the business sales in the local economy to increase greatest challenges to securing living wage job opportunities for residents. employment to include, but not limited to unemployed, disabled, and those moving toward greater self-sufficiency. 2. Continue the administration of the Oakdale First policy that requires businesses receiving City financial assistance to give priority to Oakdale residents when hiring, especially those who are unemployed, moving toward greater self-sufficiency, disabled, or those who are otherwise looking for work. Economic Development 63  COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Kathy Laur, City Clerk Date: May 24, 2022 Subject: Summerfest Update BACKGROUND At the March 22, 2022 Workshop, the council was given an update on plans for the city’s annual Summerfest event. Since that date, there have been updates to the following: Parade – The application deadline to participate in the parade is May 24. Thirty-nine units have applied so far. Staff is secure that having enough parade participants will not be a problem. Reminder: Our parade will be “competing” with two other parades that day: South St. Paul Kaposia Days and Columbia Heights Jamboree. OACC Pancake Breakfast – Will be held Saturday morning from 9–11:30 am at Guardian Angels Church. BINGO – Jeff Koesling is still working on finding an organization to run it. Beer Tent – The Lions Club applied for a liquor license so they are set. K9 Demonstration – Saturday from 2-2:30 PM. Food Vendors – Food vendor applications were mailed out and there are 11 confirmed so far. There are three non-food vendors we are waiting to hear back from. The deadline is May 24. Pony Rides –Lea Neamy, who conducted the pony rides in the past, contacted staff and asked to be added to Summerfest again. The ponies will be on Saturday afternoon and will cost $5.00 a ride. Skateboard Contest – Saturday, 11 AM registration and 12 PM start. 5k Run/Walk – People have already begun to sign up. ITS Truck – Will provide jumbo yard games, a gaming system, wearable bumper balls and more. Basketball at the Courts – The Tartan basketball team will hold a skills/drills event for kids and will hold a game between the Tartan Boys team vs Tartan alumni. More details to follow. Fireworks – The contract has been signed. Fireworks begins at 10 PM Saturday night. Music – The performance agreements have been signed for The Jolly Pops, Stuck in the Middle and the Rockin’ Hollywoods. OACC Medallion Hunt - $500 prize Emergency Action Plan – Nick is on top of that. Grand Marshal –Retired Fire Chief Jeff Anderson and his wife Kay will be our Grand Marshals this year. We are working on a vehicle for them to ride in. Additional Information – Staff will have more updates at the Council workshop as the Summerfest Committee met today. FINANCIAL CONSIDERATIONS The following expenses are what we know for sure at this time. Beginning Budget $33,000 Fireworks - 11,000 Music - 6,500 Children’s Entertainment - 1,300 Parade Units - 3,600 ITS Truck staff - 600 TOTAL AFTER EXPENSES $10,000 Projected expenses to come 5k $ 2,150 Skateboard Contest - 500 Candy - 430 TOTAL AFTER EXPENSES $ 6,890 Parade Unites that paid us to participate $ + 675 Skateboard Contest Sponsorship + 500 REMAINING FUNDS $ 8,065 The next Summerfest Committee meeting will be held on Thursday, May 26, from 2-3:30 PM.  COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Brian Bachmeier, Interim City Engineer Date: May 24, 2022 Subject: Sanitary Sewer Capacity Study BACKGROUND In early March a sewer capacity study was initiated to evaluate impacts due to several high-density developments being considered simultaneously in the Oakdale Station, Oakdale Market Place (east of I-694 and south of CSAH 14), and 4Front Development (east of I-694 & north of CSAH 14) areas. SOUTH OF CSAH 14 The study area south of CSAH 14 evaluated both pipe size and lift station capacity as the area is served by the lift station at the corner of Ideal & Stillwater Boulevard. The study concluded there is sufficient pipe size, however the additional density uses up more than half of the reserve capacity of the lift station. Since they are using up available capacity, it raises the question “should they have to pay for that capacity similar to the City of Lake Elmo”? Lake Elmo’s share of the lift station is $450,000 for 300 gal/min capacity or $1,500/gal/min capacity. The high-density developments increase the flow to the lift station by 128 gal/min which results in a $192,000 equivalent charge for 637 residential units or $300/unit Sewer Availability Charge (SAC) surcharge per residential unit. This would recover a little under ½ of the local cost increase associated with the bid award to reconstruct the lift station ($410,000). NORTH OF CSAH 14 The study area north of CSAH 14 evaluated the capacity of the sanitary sewer pipe that runs from High Pointe Boulevard to Hadley Avenue. The study concludes the capacity of the pipe matches the projected flows from the area based on the land uses identified in the current comprehensive plan. Any residential development that is not offset by an equivalent reduction in office/commercial land uses will exceed the pipe capacity that serves the area. If residential development is pursued that is not offset the 8” diameter pipe would have to be replaced with a 10” diameter pipe. The estimated cost to replace the pipe could exceed $1,000,000. A 10” sewer pipe has the capacity to serve 625 residential units. Dividing the cost to replace the pipe with the total number of residential units results in a $1,600/unit SAC surcharge. The ultimate development schedule and density in the 4Front area is still evolving. This increases the level of uncertainty for the city to recover the costs to install a larger sanitary sewer pipe through a SAC surcharge. To reduce the City’s level of risk another option would be for the developer to either install the pipe or petition the City and have the total cost assessed to their property. COUNCIL DIRECTION REQUESTED It is recommended the council advise staff if they support allowing high-density developments in either of these areas due to this information. It is recommended the council advise staff if the SAC surcharge should be established to recover sewer capacity funds used to accommodate the increased land-use density for the Oakdale Market Place and Station area south of CSAH 14. It is recommended the council advise staff if the developer should be required to install a larger sewer pipe or if the SAC surcharge or special assessments should be used to recover the city’s funds to accommodate the increased land-use density for the 4Front area north of CSAH 14. Attachment SEH Memorandum - CR 14 Area Sanitary Sewer System Capacity Study  MEMORANDUM TO: Christina Volkers, Oakdale City Administrator Andrew Gitzlaff, Oakdale Community Development Director Brian Bachmeier, Oakdale City Engineer FROM: Todd M. Blank, PE, Principal DATE: May 2, 2022 RE: CR 14 Area Sanitary Sewer System Capacity Study SEH No. OAKDA 166968 14.00 In response to proposed development requests, the City of Oakdale requested a review and capacity analysis of the sanitary sewer system adjacent to County Road 14 (34th Street North) and east of I- 694. This includes the 4Front, Oakdale Station and Oakdale Marketplace developments. Requests have been made for high density residential housing development which will significantly increase sanitary sewer flows beyond what was planned for in the Sewer Plan within the City’s 2040 Comprehensive Plan. This memorandum addresses the impacts to the City’s downstream sanitary sewer system, including lift station 6, from requested increased flows from this proposed change in development. The area south of 34th Street North includes the Oakdale Station and Oakdale Marketplace existing and proposed development and is identified as City Sewer District 8. This area is shown on the attached Figure 1. The area north of 34th Street North includes the 4Front proposed development and is identified as City Sewer District 10. This area is shown on the attached Figure 2. The Flow Path Diagram from the Oakdale 2040 Sanitary Service Comprehensive Plan is shown on the attached Figure 3, and the City sanitary sewer system map is shown on the attached Figure 4. The City’s existing and proposed sanitary flows from the City’s 2040 Sanitary Service Comprehensive Plan were reviewed, and then projected flows were calculated based on the proposed development information and on recent City water use records. The existing downstream sanitary sewer system was then reviewed to determine if there is adequate capacity for these proposed land use changes. CONCLUSIONS AND RECOMMENDATIONS CONCLUSIONS • The undeveloped parcels in Sewer Districts 8 and 10 are currently planned for non-residential use. • Changing the proposed use to residential development significantly affects the sewage flow as there would be more water use and the peak sewer flow would be greater. Engineers | Architects | Planners | Scientists Short Elliott Hendrickson Inc., 3535 Vadnais Center Drive, St. Paul, MN 55110-3507 SEH is 100% employee-owned | sehinc.com | 651.490.2000 | 800.325.2055 | 888.908.8166 fax Memorandum Sanitary Sewer System Capacity Study Page 2 • There is adequate capacity in Sewer District 8 south of 34th Street N to serve the potential changes to residential use. • There is not adequate capacity in Sewer District 10 north of 34th Street N to serve any of the potential changes to residential use. To provide adequate capacity, the existing 8-inch diameter sewer pipe must be replaced with a 10-inch diameter pipe all the way west to Hadley Avenue including the portion under I-694. • If Sewer District 8 (south of 34th Street N) develops with four parcels changed to residential use with 637 units, then the projected sewer flows will be 128 GPM more than planned. This is a 67% increase. • The existing sewer system in District 8 will handle this flow. The proposed improved lift station 6 will also handle this flow, although it will use up 64% of the station’s 200 GPM reserve capacity. • Lift Station 6 currently has a peak flow capacity reserve of 200 Gallons per Minute (GPM). • If Sewer District 10 (north of 34th Street N) develops with four parcels changed to residential use with 625 units, then the projected sewer flows will be 204 GPM more than planned. This is a 74% increase. • The existing sewer system in District 10 will be significantly over the full pipe flow capacity. It is possible to operate the sewer with some peak flows at a point slightly over the top of this 8-inch diameter sewer pipe, but to handle the projected increased residential flow, the peak flow would be several feet above the top of pipe and would reach ground surface. • Replacing this 8-inch sewer line with a 10-inch line will provide adequate capacity for the potential increased residential use. This pipe replacement would likely cost approximately $1,000,000. • This pipe replacement cost could vary significantly and this should be reviewed further with MnDOT prior to any replacement plan preparation. Record plans show the pipe is within a steel casing pipe under I-694, a horizontal alignment problem occurred, two additional larger diameter casings and a small 12-inch casing encased in concrete were used, and it is not clear if a new 10- inch pipe can be installed. A new casing pipe may need to be installed. • The proposed additional flows show that the furthest downstream gravity sewer areas at the south end of the City (District 15 and 17) may be at or would be slightly over capacity. The original flow peaking factors appears they may be overly conservative. Using different peaking factors based on standard flow diagrams, and peaking only residential flow, does not show significant flow concerns. RECOMMENDATIONS • The City of Oakdale staff should review this memo, the proposed land use changes, and the effect on the existing sanitary sewer system to determine which land use changes are acceptable. • Potential cost recovery procedures should be reviewed if lift station 6 reserve capacity is allocated to Sewer District 8. • Further review should be done on potentially replacing the existing 8-inch diameter sewer pipe serving District 10 with a 10-inch diameter pipe. This should be done by the Developer and include a detailed cost estimate and potential cost recovery procedures for consideration by the City. SEWER DISTRICT 8 FLOWS & CAPACITY Background Sewer District 8 is located south of 34th Street North, and is partially developed and includes undeveloped Oakdale Station and Oakdale Marketplace parcels that were planned for commercial/office use. The developers have requested that some of these parcels be developed with high density residential development. Currently this has been requested for two parcels, but for this analysis four parcels were considered high density residential to determine the impact to the worst-case impact to the existing sewer system. Memorandum Sanitary Sewer System Capacity Study Page 3 This area flows southerly through a 10-inch diameter pipe to lift station 6 located at Helmo Avenue and Stillwater Boulevard. This pumping station is currently proposed for reconstruction this year to increase capacity and replace equipment at the end of its useful life. This then flows westerly to the same larger pipe system on Hadley Avenue. Projected Flows The sewer study assumes 310 residential units on parcel A and150 units on parcel B.. For analysis purposes, additional residential development of 27 units on parcel C and 150 units on parcel D were also considered for a total of 637 residential units. The City’s 2040 Comprehensive Sewer Plan flows were also used as a basis, existing recent water use records were used for the developed parcels E-N, and the project flows were calculated. The total Comprehensive Plan peak projected flow from this area north of the railroad tracks is 146 GPM. The existing 10-inch sewer pipe serving this area has a capacity flowing full of 450 GPM so there is adequate pipe capacity if developed in accordance with the Comprehensive Plan. The increased flow from this potential residential development over the current proposed commercial/office use planned is significant due to the increased water use and the higher peak flows for residential use. If all four parcels were developed as indicated above, with 637 residential units, the total peak projected flow is 319 GPM which is 70% of the full pipe capacity. This is 173 GPM over the projected Comprehensive Sewer Plan flows. Recent water use records for the developed parcels show that there is 45 GPM less peak flow than the Comprehensive Plan flow. If this flow is subtracted then the projected peak flow is 128 GPM over the Comprehensive Plan projected peak flow from this area. Lift Station 6 serving Sewer District 8 currently has a capacity of 898 GPM according to the City’s 2040 Sanitary Service Comprehensive Plan. It is planned to be reconstructed this year to an increased capacity of 1200 GPM. The existing planned flow to this lift station is 688 GPM plus 300 GPM allocated to the City of Lake Elmo for a total planned flow of 988 GPM. After reconstruction, there will be approximately 200 GPM of reserve capacity. The potential increased residential flow would use up to 64% of lift station 6’s reserve capacity. SEWER DISTRICT 10 FLOWS & CAPACITY Background Sewer District 10 is located north of 34th Avenue North and includes the partially developed 4Front office complex and undeveloped parcels that were planned for Business Campus use (commercial/office). The developer has requested that some of these parcels be developed with high density residential development. Currently this has been requested for one parcel and the owner has indicated that future parcels may also include residential. For this analysis up to four parcels were considered high density residential to determine the impact to the existing sewer system. This area flows westerly under I-694 through an 8-inch diameter pipe to a larger 12-inch sewer system on Hadley Avenue. Potentially diverting this flow to the north would create the need for it to be pumped through an additional lift station and is not recommended for operational purposes. The existing sewer plans are shown on the attached Figures 5-7. Projected Flows The 4Front developer has requested 175 residential units in addition to commercial development on parcel C. A potential request for 150 residential units on parcel D may also be made. For analysis purposes, additional residential development of 150 units on parcel B and 150 units on parcel G were also considered for a total of 625 residential units. Memorandum Sanitary Sewer System Capacity Study Page 4 The City’s 2040 Comprehensive Sewer Plan flows were used as a basis, existing recent water use records were used for the developed parcels H, I and J, and the project flows were calculated. The total Comprehensive Plan peak projected flow from this area is 287 Gallons per Minute (GPM). The existing 8- inch sewer pipe serving this area has a capacity flowing full of 282 GPM so the area would be at full pipe capacity if developed in accordance with the Comprehensive Plan. Additional flows will cause the pipe to back up and sewage levels to rise in the system manholes. The increased flow of this residential development over the current proposed commercial/office use planned is significant due to the increased water use and the higher peak flows for residential use. There is not adequate capacity to handle even one parcel of this proposed residential flow. If all four parcels were developed as indicated above, with 625 residential units, the total peak projected flow is 479 GPM, or 170% of the full pipe capacity. This is 192 GPM over the projected Comprehensive Sewer Plan flows. Recent water use records for the developed parcels show that there is 15 GPM more peak flow. If this flow is added then the projected peak flow is 207 GPM over the projected peak flow from this area. Sewer Pipe Replacement The existing 8-inch diameter sewer pipe serving District 10 is at full capacity with existing projected flows. It is possible to operate the sewer with some peak flows at a point slightly over the top of this 8-inch diameter sewer pipe, but to handle the projected increased residential flow, the peak flow would be several feet above the top of pipe and would reach ground surface which is not acceptable. If the existing 8-inch pipe is replaced with a 10-inch pipe, then there would be capacity to support the additional residential flows in this area. By just replacing the portion from I-694 to Hadley, there is not enough capacity to prevent the pipe from surcharging to ground surface. Hydraulic modeling was performed for this sewer line with various flows. Summary results of this are shown in the attached Figures 11-14. The 8-inch sewer pipe from Hadley Avenue to the proposed 4Front sewer connection is approximately 2700 lineal feet. Using general costs per foot for typical sanitary sewer improvements, it would likely cost about $1,000,000 to replace this with a 10-inch sewer. There is significant risk in replacing this pipe due to unknow conditions under I-694. The record plans show that under the west edge of the bridge there are two additional larger pipe casings installed at angles and encased in concrete. It is not clear why this was done, or if it is even possible to reuse the existing casing pipes. DOWNSTREAM SEWER CAPACITY As shown in Figure 1, Sewer Districts 8 and 10 flow downstream to Districts 11, 7, 12, 15 and 17 where flows leave the City and enter the Met Council sewer system. Districts 8 and 12 are pumped downstream through lift stations and the rest of the downstream system flows by gravity. Without any proposed residential flow from Districts 8 and 10, and using the City’s 2040 Sanitary Service Comprehensive Plan peak flows, the sewer system will be slightly over capacity in District 15 (by 4%) and at capacity in district 17. With proposed residential flow from Districts 8 and 10, the sewer system will be over capacity in District 15 (by 13%) and over capacity in District 17 (by 8%). In District 15, the peaking factor used in the Comprehensive Plan calculations is 3.0 which is a conservative figure. The Ten States Standards peaking factor based on this district is 2.6. Using a 2.6 peaking factor, the peak flow for this district with the proposed residential flow is then under capacity. In District 17, the peaking factor appears correct based on flows, but was applied conservatively to all flows upstream. The flows to this location represent most of the City which includes 0.48MGD of non- residential flow that had a peaking factor applied. It is common to not apply a peaking factor for non- Memorandum Sanitary Sewer System Capacity Study Page 5 residential flows as there is not a morning and evening peak flow time due to domestic activities. If conservatively half of the non-residential flow is assumed to be in this district, and no peaking factor is applied to it, then the total flow is slightly over capacity (by 4%) with the proposed residential flow which is not significant. tmb Attachments: Figure 1 – City Sewer Flow Diagram Figure 2 – Sewer District 8 Map Figure 3 – Sewer District 10 Map Figure 4 – City of Oakdale Sanitary Sewer System Map Figures 5-7 – Existing District 10 sewer plans. Figures 8-10 – Projected Sewage Flow Calculations Figures 11-14 – Hydraulic Modeling Results x:\ko\o\oakda\166968\4-prelim-dsgn-rpts\memo\oakdale sanitary sewer capacity study 5-11-22.doc Oakdale Sanitary Service District flow path diagram Figure 1 WASTEWATER Water Resources Wastewater 1 3 18 2 4 19 5 6 Sanitary Sewer Flow 11 10 Sanitary Sewer Districts City & Private Sanitary Sewer Force Main MCES Interceptor Sewer Lift Station Lake Elmo Service Area 7 North St. Paul Service Area New Growth Connection Points NOTES 8 1. Sanitary districts are numbered 1 through 20. 9 2. A number of existing sanitary sewers outflow into neighboring communities. These areas are labeled with 20 a letter designating the community that receives the outflow. The letter designations are as follows: 12 (M) Maplewood (LE) Lake Elmo 3. The city’s sanitary sewer system also receives inflow from neighboring communities. These areas are designated with an on the map. The letter designations (M) 20 detailed above have been used to identify areas that are generating the inflow. 14 15 (M) 13 17 16 (LE) (M) Water CITY OF OAKDALE FIGURE 4 41  FIGURE 5 PROPOSED 4FRONT SAN. SEWER FIGURE 6 FIGURE 7  Sewer Flow Calculations‐Comp Plan with Water Use Records Available Available Available Available Comp Plan Comp Plan Water Water Use Water Use Proposed Comp Plan Proposed Avg. Peak Records Avg. Peak Plat Current/Comp Comm/Ind/O Proposed Avg. Flow Avg. Flow Capacity Capacity Avg. Flow Capacity Capacity Property ID PIN No. Property Address Property Owner GIS Area (Ac.) Area(Ac.) Plan Land Use ff Acres Res units (Gal/Day) (Gal/Day) (Gal/Day) (Gal/Min) (Gal/Day) (Gal/Day) (Gal/Min) District 8 A 1702921340040 0 DPS‐OAKDALE LLC 16.02 Commercial 16.02 20826 20826 0 43.4 20826 43.4 B 1702921420013 0 OAKDALE MARKETPLACE OVA LLC 4.39 Commercial 4.39 5707 5707 0 11.9 5707 11.9 C 1702921430051 0 OAKDALE MARKETPLACE OVA LLC 1.46 Commercial 1.46 1898 1898 0 4.0 1898 4.0 D 1702921410011 0 OAKDALE MARKETPLACE OVA LLC 7.54 Commercial 7.54 9802 9802 0 0.0 9802 0.0 E 1702921310011 7360 33rd St. N 55128 Oakdale, MN COLE LA OAKDALE MN LLC 4.59 Commercial 5967 5967 0 0 4550 1417 3.0 F 1702921310012 7400 33rd St. N. 55128 Oakdale, MN MSP/OAKDALE STATION LLC 1.64 Commercial 2132 2132 0 0 55 2077 4.3 G 1702921420008 7520 32nd St. N 55128 Oakdale, MN SCF RC FUNDING IV LLC 4.49 Commercial 5837 5837 0 0 1365 4472 9.3 H 1702921420012 7560 33rd St. N 55128 Oakdale, MN AUTOZONE PARTS INC 2.26 Commercial 2938 2938 0 0 50 2888 6.0 I 1702921420010 7560 33rd St. N 55128 Oakdale, MN LCN NTI MULTI (MN) LLC 1.65 Commercial 2145 2145 0 0 11320 ‐9175 ‐19.1 J 1702921410010 7830 33rd St. N 55128 Oakdale, MN MCDONALD'S USA LLC 1.03 Commercial 1339 1339 0 0 1055 284 0.6 K 1702921410009 7860 33rd St N 55128 Oakdale, MN TRUSTONE FINANCIAL FED CREDIT UNION 1.22 Commercial 1586 1586 0 0 1586 0 0.0 L 1702921410007 7900 32nd St. N. 55128 Oakdale, MN TARGET CORPORATION 14.84 Commercial 19292 19292 0 0 6140 13152 27.4 3.8 Ac outlots undeveloped M 1702921440046 3240 Ideal Ave N 55128 Oakdale, MN IDEAL LOCATIONS LLC 4.38 Res/Commercial 5694 5694 0 0 5694 0 0 N 1702921430053 7511 32nd St. N 55128 Oakdale, MN RALEIGH PATRICK A & MICHELLE 4.93 Industrial 6409 6409 0 0 50 6359 13.2 70.4 0 91572 91572 0 59 59707 104 Proposed peak flow based on water use & proposed development (Gal/Min) = 146 Existing 10" Sanitary Sewer at 0.22% = 450 Gal/Min capacity Lift Station 6 peak capacity =1200 Gal/Min‐688 comp plan‐300 Lake Elmo = 200 Gal/Min reserve capacity (Flows based on Comp Plan peak factor of 3.0 for non‐res and 4.0 for res) District 10 A 1702921240011 0 LARSON FAMILY REAL ESTATE LLLP 25.82 23.6 Comm/Ind 25.82 33566 33566 0 0.0 0.0 Prop flow from sewer permit B 1702921310007 0 LARSON FAMILY REAL ESTATE LLLP 9.2 8.3 Comm/Ind 9.2 11960 11960 0 0.0 0.0 C 1702921420003 0 LARSON FAMILY REAL ESTATE LLLP 8.61 8.4 Comm/Ind 8.61 11193 11193 0 0.0 0.0 D 1702921130006 0 LARSON FAMILY REAL ESTATE LLLP 9.89 9.8 Comm/Ind 9.89 12857 12857 0 0.0 0.0 E 1702921310008 0 LARSON FAMILY REAL ESTATE LLLP 0.56 Comm/Ind 0.56 728 728 0 0.0 0.0 F 1702921410004 0 LARSON FAMILY REAL ESTATE LLLP 10.93 Comm/Ind 10.93 14209 14209 0 0.0 0.0 G 1702921140004 0 LARSON FAMILY REAL ESTATE LLLP 6.7 Comm/Ind 6.7 8710 8710 0 0.0 0.0 H 1702921130004 3503 Highpoint Dr. N 55128 Oakdale, MN LARSON FAMILY REAL ESTATE LLLP 18.87 Office 24531 24531 0 0.0 27119 ‐2588 ‐5.4 Jan 21‐Feb 22 records I 1702921130005 3503 Highpoint Dr. N 55128 Oakdale, MN LARSON FAMILY REAL ESTATE LLLP 8.26 Office 10738 10738 0 0.0 11871 ‐1133 ‐2.4 Jan 21‐Feb 22 records J 1702921140005 3510 Hopkins PL. N 55128 Oakdale, MN LARSON FAMILY REAL ESTATE LLLP 22.81 Office 29653 29653 0 0.0 32781 ‐3128 ‐6.5 Jan 21‐Feb 22 records 121.7 50.1 0 158145 158145 0 0.0 ‐6848 ‐14 Proposed peak flow based on water use & proposed development (Gal/Min) = 286.4 Existing 8" Sanitary Sewer at 0.27% = 282 Gal/Min capacity (Flows based on Comp Plan peak factor of 2.5 for non‐res and 4.0 for res) FIGURE 8  Sewer Flow Calculations‐with Full Residential Development Available Available Available Available Comp Plan Comp Plan Water Water Use Water Use Proposed Comp Plan Proposed Avg. Peak Records Avg. Peak Plat Current/Comp Comm/Ind/O Proposed Avg. Flow Avg. Flow Capacity Capacity Avg. Flow Capacity Capacity Property ID PIN No. Property Address Property Owner GIS Area (Ac.) Area(Ac.) Plan Land Use ff Acres Res units (Gal/Day) (Gal/Day) (Gal/Day) (Gal/Min) (Gal/Day) (Gal/Day) (Gal/Min) District 8 A 1702921340040 0 DPS‐OAKDALE LLC 16.02 Commercial 310 20826 43013 ‐22187 ‐76.1 20826 ‐76.1 B 1702921420013 0 OAKDALE MARKETPLACE OVA LLC 4.39 Commercial 150 5707 20813 ‐15106 ‐45.9 5707 ‐45.9 C 1702921430051 0 OAKDALE MARKETPLACE OVA LLC 1.46 Commercial 27 1898 3746 ‐1848 ‐6.5 1898 ‐6.5 D 1702921410011 0 OAKDALE MARKETPLACE OVA LLC 7.54 Commercial 2.5 150 9802 24063 ‐14261 ‐44.2 9802 ‐44.2 E 1702921310011 7360 33rd St. N 55128 Oakdale, MN COLE LA OAKDALE MN LLC 4.59 Commercial 5967 5967 0 0 4550 1417 3.0 F 1702921310012 7400 33rd St. N. 55128 Oakdale, MN MSP/OAKDALE STATION LLC 1.64 Commercial 2132 2132 0 0 55 2077 4.3 G 1702921420008 7520 32nd St. N 55128 Oakdale, MN SCF RC FUNDING IV LLC 4.49 Commercial 5837 5837 0 0 1365 4472 9.3 H 1702921420012 7560 33rd St. N 55128 Oakdale, MN AUTOZONE PARTS INC 2.26 Commercial 2938 2938 0 0 50 2888 6.0 I 1702921420010 7560 33rd St. N 55128 Oakdale, MN LCN NTI MULTI (MN) LLC 1.65 Commercial 2145 2145 0 0 11320 ‐9175 ‐19.1 J 1702921410010 7830 33rd St. N 55128 Oakdale, MN MCDONALD'S USA LLC 1.03 Commercial 1339 1339 0 0 1055 284 0.6 K 1702921410009 7860 33rd St N 55128 Oakdale, MN TRUSTONE FINANCIAL FED CREDIT UNION 1.22 Commercial 1586 1586 0 0 1586 0 0.0 L 1702921410007 7900 32nd St. N. 55128 Oakdale, MN TARGET CORPORATION 14.84 Commercial 19292 19292 0 0 6140 13152 27.4 3.8 Ac outlots undeveloped M 1702921440046 3240 Ideal Ave N 55128 Oakdale, MN IDEAL LOCATIONS LLC 4.38 Res/Commercial 5694 5694 0 0 5694 0 0 N 1702921430053 7511 32nd St. N 55128 Oakdale, MN RALEIGH PATRICK A & MICHELLE 4.93 Industrial 6409 6409 0 0 50 6359 13.2 70.4 637 91572 144973 ‐53401 ‐173 59707 ‐128 Proposed peak flow based on water use & proposed development (Gal/Min) = 319 Existing 10" Sanitary Sewer at 0.22% = 450 Gal/Min capacity Lift Station 6 peak capacity =1200 Gal/Min‐688 comp plan‐300 Lake Elmo = 200 Gal/Min reserve capacity (Flows based on Comp Plan peak factor of 3.0 for non‐res and 4.0 for res) District 10 A 1702921240011 0 LARSON FAMILY REAL ESTATE LLLP 25.82 23.6 Comm/Ind 23.6 33566 30680 2886 5.0 5.0 Prop flow from sewer permit B 1702921310007 0 LARSON FAMILY REAL ESTATE LLLP 9.2 8.3 Comm/Ind 4 150 11960 26013 ‐14053 ‐46.1 ‐46.1 C 1702921420003 0 LARSON FAMILY REAL ESTATE LLLP 8.61 8.4 Comm/Ind 8.4 175 11193 35201 ‐24008 ‐67.0 ‐67.0 D 1702921130006 0 LARSON FAMILY REAL ESTATE LLLP 9.89 9.8 Comm/Ind 150 12857 20813 ‐7956 ‐35.5 ‐35.5 E 1702921310008 0 LARSON FAMILY REAL ESTATE LLLP 0.56 Comm/Ind 0.56 728 728 0 0.0 0.0 F 1702921410004 0 LARSON FAMILY REAL ESTATE LLLP 10.93 Comm/Ind 10.93 14209 14209 0 0.0 0.0 G 1702921140004 0 LARSON FAMILY REAL ESTATE LLLP 6.7 Comm/Ind 2.7 150 8710 24323 ‐15613 ‐48.8 ‐48.8 H 1702921130004 3503 Highpoint Dr. N 55128 Oakdale, MN LARSON FAMILY REAL ESTATE LLLP 18.87 Office 24531 24531 0 0.0 27119 ‐2588 ‐5.4 Jan 21‐Feb 22 records I 1702921130005 3503 Highpoint Dr. N 55128 Oakdale, MN LARSON FAMILY REAL ESTATE LLLP 8.26 Office 10738 10738 0 0.0 11871 ‐1133 ‐2.4 Jan 21‐Feb 22 records J 1702921140005 3510 Hopkins PL. N 55128 Oakdale, MN LARSON FAMILY REAL ESTATE LLLP 22.81 Office 29653 29653 0 0.0 32781 ‐3128 ‐6.5 Jan 21‐Feb 22 records 121.7 50.1 625 158145 216888 ‐58743 ‐192.3 ‐6848 ‐207 Proposed peak flow based on water use & proposed development (Gal/Min) = 478.8 Existing 8" Sanitary Sewer at 0.27% = 282 Gal/Min capacity (Flows based on Comp Plan peak factor of 2.5 for non‐res and 4.0 for res) FIGURE 9 Comprehensive Sewer Plan Flows with Proposed Residential in 8 & 10 Exist. Peak LS or Pipe Existing + Prop Res Proposed Proposed Ultimate 2040 Sewer Ultimate Cumulative Ultimate Cumulative Peaking Flow Capacity Capacity Peak Flow Peak Flow Capacity Sewer District** Flows (MGD) Flow Thru District (MGD) Flow Thur District (CFS) Factor CFS CFS CFS CFS CFS CFS Notes Sewer District 7 0.060 2.074 3.209 2.5 8.72 13.20 4.48 9.15 4.05 Sewer District 8 0.330 0.330 0.511 3.0 2.23 2.64 0.41 0.281 2.514 0.13 300 GPM from Lake Elmo included, res peak = 4 Sewer District 9 0.141 0.472 0.730 3.0 3.17 3.78 0.61 3.451 0.33 Sewer District 10 0.084 0.084 0.130 2.5 1.06 0.62 -0.44 0.455 1.514 -0.89 Res peak = 4 Sewer District 11 0.161 0.717 1.109 3.0 4.03 4.08 0.05 4.54 -0.46 18"@0.15%=4.1cfs, about 11% over cap. OK if slight surcharge. Sewer District 12 0.188 2.263 3.501 3.0 11.20 13.2 2.00 11.72 1.48 Sewer District 15 0.596 3.136 4.852 3.0 15.26 14.00 -1.26 15.77 -1.77 About 13% over cap. Ok if slight surcharge 30"@0.11%=14.0 cfs 15 with diff. PF 2.6 13.32 14.00 0.68 13.76 0.24 OK with 10-States Peaking Factor Sewer District 17 0.244 3.612 5.588 2.5 14.67 14.00 -0.67 15.10 -1.10 About 8% over cap. OK if slight surcharge 17 with diff. PF 2.4 14.09 14.00 -0.09 14.50 -0.50 About 4% over cap if non res flow not peaked FIGURE 10  HGL Profile for Scenario 1 (Existing Projected Flows) Assumptions: Fixed outlet - 1 foot above downstream invert Manning's N: 0.013 Approximate width of 694 highway and Flow: 286 gpm (0.412 MGD) road ramps Existing Development Flow Existing 8" alignment FIGURE 11  HGL Profile for Scenario 2 (+175 Res Unit Projected Flows) Assumptions: Fixed outlet - 1 foot above downstream invert Manning's N: 0.013 Approximate width of 694 highway and Flow: 353 gpm (0.508 MGD) road ramps Existing Development Flow + 1 Residential parcel Existing 8" Alignment FIGURE 12  HGL Profile for Scenario 3 (+625 Res Unit Project Flows-10" West End Only) Assumptions: Fixed outlet - 1 foot above downstream invert Manning's N: 0.013 Approximate width of 694 highway and Flow: 480 gpm (0.691 MGD) road ramps Full Development Existing 8" Alignment Upsize to 10" FIGURE 13  HGL Profile for Scenario 4 (+625 Res Unit Project Flows-10" Entire Run) Assumptions: Fixed outlet - 1 foot above downstream invert Manning's N: 0.013 Approximate width of 694 highway and Flow: 480 gpm (0.691 MGD) road ramps Full Development Upsize entire alignment to 10" FIGURE 14  COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Christina M. Volkers, City Administrator Date: May 24, 2022 Subject: Body Worn Camera Update BACKGROUND The Police Department recently completed field-testing of four different body worn camera systems. The testing process included a committee of several officers who deployed the four different body worn camera systems in the field. The committee narrowed down the selection to two different vendors that could provide the body worn camera system that would meet the needs and expectations of our community and police department. Sergeant Ryan Stuart headed the body worn camera committee and he will be providing a short presentation on the findings. Chief Nick Newton will discuss the next steps for the body worn camera process, to include: legal steps, policy development, and funding options. FINANCIAL CONSIDERATIONS The Axon body worn camera system would cost approximately $89,000 annually, or $445,000 for the five-year agreement. The WatchGuard system would cost approximately $56,000 annually, or $280,000 for the five-year agreement. The police department will seek a state grant to assist with funding for the first year, and potentially the second year. However, if the state grant is not secured, the police department intends to use forfeiture funds to cover the first two years of the agreement. In either scenario, the police department would have the remaining agreement years adopted into our operations budget starting in 2025. STAFF RECOMMENDATION Continue to next steps of following legal guidelines and identifying the funding source prior to seeking council approval. COUNCIL DIRECTION REQUESTED Staff would like to solicit feedback from the council to help guide the direction of the remaining steps in the process. The Police Department’s desired body worn camera implementation date is the first quarter of 2023. Attachment Presentation - Overview of Body Worn Cameras Body Worn Cameras May 2022 Body Worn Camera • Presentation by Sergeant Ryan Stuart • Overview of four body worn camera (BWC) systems tested by staff. • Selection of two BWC for consideration. Legal Steps Implementation of BWC (MN 626.8473 Subd. 2) 1. Public comment • Local law enforcement agency must provide opportunity for public comment before it purchases or implements portable recording system. • At minimum, agency must accept public comments submitted electronically or by mail and governing body with jurisdiction over budget of agency must provide opportunity for public comment at regularly scheduled meeting. Legal Steps 2. Written & Procedure Mandated • Chief officer of every state and local law enforcement agency that uses or proposes to use portable recording system must establish and enforce written policy governing use. • In developing and adopting policy agency must provide for public comment and input as provided in statute. • Use of portable recording system without adoption of written policy meeting requirements of this section is prohibited. • written policy must be posted on agency’s (City) Web site.  Funding Considerations Funding Plan WatchGuard BWC Year Amount Source 2023 $56,000 State grant funding, or forfeiture 2024 $56,000 State grant funding, or forfeiture 2025 $56,000 Adopt into police department operation budget 2026 $56,000 Operations budget 2027 $56,000 Operations budget Considerations • After selecting vendor, need to work out details of the five-year agreement, final on price, and have legal review. • Policy development to follow LMC recommendations, implementing vendor specific protocol, and formal review. • Goal is to complete necessary steps and be back to council for formal approval by September, 2022.  COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Jason Zimmerman, Finance Director Date: May 24, 2022 Subject: Ideal Avenue Financing BACKGROUND At the December 14, 2022 City Council Meeting, several road construction projects were approved in the 2022-2026 Capital Improvement Plan (CIP). As part of the planning process, three street projects were identified as requiring the use of debt to facilitate the reconstruction as outlined in the CIP.  R2022-01; 2022 Street Reconstruction and Overlay Project  R2022-02; 40th Street Reconstruction Project  R2022-03; Ideal Avenue Reconstruction Project Each reconstruction project has at least a portion of the cost assessed to the benefiting property owners, which, per city policy, will be charged an interest rate 2 percent (rounded to the nearest 1/4 percent) above the city’s interest rate established at the time of the bond sale. The proposed bond duration for the three project areas are as follows:  2022 Street Reconstruction and Overlay Project – Ten years per City Policy  40th Street Reconstruction Project – Eight years per Willowbrooke development agreement  Ideal Avenue Reconstruction Project – Eight years per Willowbrooke development agreement The primary risk with any bond that has an assessment tied to it is that it may be prepaid by the property owner to the City at any time, while the City has a fixed term that it is required to make principal and interest payments. Hence, if a parcel that is to be assessed with a repayment term of eight years pays off the principal obligation in three years, the City would need to find external resources to fulfill the interest obligation associated with the debt for the remaining five years. This typically hasn’t been an issue for projects assessed as part of the city’s regular road reconstruction program, but given these assessments are for residential development projects, they pose an accelerated interest risk Council should be aware of. The most significant exposure the City faces in regards to interest expense obligations under a traditional bonding structure is on Ideal Avenue, which is proposed to be financed 100 percent by assessments. It’s important to keep in mind that although there is elevated risk under this financing scenario, the developer does have the option to wait to make payments throughout the entire duration of the bond term. With this in mind, staff would like to provide Council with an alternative to finance the Ideal Avenue project internally, with the use of funds from the Special Project Fund. If Council would like to proceed internally, the following would be proposed:  Appropriate resources needed to cover the construction costs would be transferred from the Special Project Fund to a new Capital Project Fund (“Ideal Avenue/CSAH 13 Reconstruction). o This new fund would be used to accumulate expenses and collect assessment payments. o Assessments would be at a rate of 2 percent (rounded to the nearest 1/4 percent) above the city’s interest rate established at the time of the bond sale, as noted above.   As assessments are repaid, Council direction would be required to use the funds for other purposes (these resources can’t be transferred without formal Council action). In addition to minimizing interest expense risk by internally financing, the interest generated on the assessments would be fully realized by the City. The primary downside of this option is committing current city cash resources for a period up to eight years. COUNCIL DIRECTION REQUESTED It is requested that Council determine if they are comfortable with the interest expense risk associated with a traditional bond issuance to facilitate the financing of Ideal Avenue, or if they would like staff to pursue financing internally. If Council would prefer to finance the Ideal Avenue Reconstruction Project internally and continue the debt issuance process for the 2022 Street Reconstruction and Overlay Project and the 40th Street Reconstruction project, no modifications need to be made to the parameter’s resolution related to the G.O. Bonds Series 2022A which is on the consensus motion for this evening, as the parameters resolution sets the cap for the par amount the bonds can be issued.