City Council Workshop

Name: City Council Workshop — Oakdale, MN
Start: 2023-12-12
End: 2023-12-12
Location: Oakdale, MN

Regular Meeting

Oakdale, MN · December 12, 2023

Minutes

WORKSHOP MINUTES OAKDALE CITY COUNCIL DECEMBER 12, 2023 The City Council held a workshop on Tuesday, December 12, 2023 at Oakdale City Hall, 1584 Hadley Avenue North, Oakdale, Minnesota. The meeting began at 5:00 PM. Present: Mayor Kevin Zabel Council Members: Noah Her Jake Ingebrigtson Andy Morcomb Susan Willenbring City Staff Members: Christina Volkers, City Administrator Sara Ludwig, City Clerk Hannah Dunn, Community Development Specialist Jesse Farrell, City Engineer Andy Gitzlaff, Community Development Director Luke McClanahan, City Planner Nick Newton, Police Chief Lori Pulkrabek, Communications Manager Jim Romanik, Public Works Manager Kyle Stasica, Finance Director Julie Williams, Recreation Superintendent Kevin Wold, Fire Chief Kevin Zittel, Facilities Manager Others Present: Bailey Buschke, Architectural Designer, HCM Architects Ken Francois, Construction Project Manager, Kraus-Anderson Construction Company Matt Lysne, Principal, HCM Architects (virtual) Don Theisen, Owner’s Representative, Don Theisen Consulting ROOFTOP SOLAR PHOTOVOLTAIC SYSTEM City Administrator Chris Volkers explained that staff was provided with Council’s initial thoughts on the proposed options within the memo, however, they are prepared to discuss the options at a high-level and provide a funding source for the chosen option. The Council was in agreement to move forward with Option 2. Council Member Willenbring praised staff on the history and detail provided in the memo. In response to Mayor Zabel’s question about any proceeds from the roofing insurance claims related to hail damage that could help offset the costs associated with Option 2, Ms. Volkers noted that the insurance adjusters concluded that the solar panels did not have any hail damage, therefore, there were no proceeds related to that. She added that it is not planned to get all the roofs repaired with hail damage given some will be replaced with facility WORKSHOP MINUTES DECEMBER 12, 2023 PAGE TWO remodeling or new facilities, but she is inquiring with LMCIT about the cash value of the proceeds from those hail damage claims which could help offset the costs of those new roofs in the future. In response to Mayor Zabel’s question about the cost of removal and recycling of the solar panels, Community Development Specialist Hannah Dunn explained that the quote in the memo from iDeal Energies is a few months old, but the cost is approximately $29,000. City staff will follow up to determine whether this cost has changed, as well as seek quotes from other potential vendors. Mayor Zabel inquired about reaching out to the Washington County Environmental Center or Minnesota Pollution Control Agency for removal and recycling assistance. Regarding funding this change, Ms. Volkers indicated there is extra permit revenue that can be used to fund Option 2 in a timely manner. The Council was supportive of this funding option. In response to Mayor Zabel’s question about allocating the extra permit revenue to the Municipal Building Fund and funding Option 2 directly from that fund, Ms. Volkers stated she will discuss that option with Finance Director Kyle Stasica and the City’s auditor to ensure financial compliance. Council Member Willenbring asked about the timeline for Option 2. Ms. Volkers noted that she will be discussing the proposed repayment costs with Xcel Energy, but that likely will not affect the timeline. Facilities Manager Kevin Zittel added that the most time-consuming step will be disconnecting the inverters as the City must work with Xcel Energy to do this. Staff is hopeful to start work soon. PUBLIC WORKS FACILITY UPDATE Ms. Volkers introduced the project team and stated that it is a good time to give the Council an update on the project. Don Theisen with Don Theisen Consulting, and the Owner’s Representative for this project, continued the team introductions and noted a few other partners, including Bolton & Menk Engineering, Braun Intertec, and 3M. Mr. Theisen continued with the project overview. The current site is owned by 3M and is part of the Minnesota Pollution Control Agency (MPCA) Brownfield Program, known as the Brockman site. After the site is cleaned up, 3M will donate the land to the City. Mr. Theisen added that future groundwater problems will be mitigated due to the site clean-up which is a win-win for the community. Once the clean-up starts, there may be unanticipated site conditions. Because of this it is prudent to wait to go out for bids until this work is complete to reduce the change order risk. Mr. Theisen noted that 3M will be responsible for contaminated clean-up throughout the duration of the project. The project design was reviewed, including external and internal renderings and designs. WORKSHOP MINUTES DECEMBER 12, 2023 PAGE THREE In response to Mayor Zabel’s question about the placement of the employee parking lot, Ken Francois, Construction Project Manager with Kraus-Anderson Construction Company, stated that HCM Architects reviewed many layout options and this was the best option. The sustainable initiative design checklist was discussed, and the design exceeds Minnesota Energy Code. Mr. Theisen explained that a vapor barrier will be installed below the building with pipes that will vent out any vapors through the roof. In response to Council Member Willenbring’s question about the vapor that is ventilated into the air, Mr. Theisen clarified that it is the same vapors that would come up from the ground naturally, however, due to the site clean-up there is not a concern with these vapors going into the open air. Ms. Volkers offered to set up a phone call with members of the project team and any interested council members to get any additional questions about the vapor barrier answered. Council Member Willenbring expressed her interest. Mr. Theisen then reviewed the project budget phases including the concept, schematic design, design development, and construction documents. At the concept level, the project budget was $28,400,000. He noted that there are major budget drivers that are unknown at this time – level of site work needed and requirements from the MPCA for the Response Action Plan (RAP). As part of the schematic design phase, the concept project budget increased to $28,800,000 due to the MPCA vapor barrier system, but that additional cost will be paid for by 3M. The other major budget driver – level of site work needed – is still unknown at this time. Because of this, the budget had to be balanced with available revenue which required value engineering. In response to Mayor Zabel’s question about the possibility of the level of site work being less than anticipated resulting in a lower cost, Mr. Theisen stated it is possible. Mr. Theisen explained that through the process of value engineering, the project team had to make several design changes and develop a list of bid alternates. The list of bid alternates includes the fuel island complex, 2,000 square feet of fleet storage, one additional fleet storage bay, and 3,000 square footage of the mezzanine. The design changes through value engineering reduced the budget by $2,900,000. Mr. Theisen stated that aesthetics and functional use were considered when these decisions were made. The design development project budget is $30,200,000 which is $1.4M over the schematic design budget. The two main budget drivers for this tincrease are the level of site work needed after 3M work is complete and storm water management regulations. Mr. Theisen added that balancing the design development budget is a work in progress, but there are several sources of potential revenue to explore through grants and cost sharing options with 3M. Mr. Theisen went over the next steps of the project which include negotiations with 3M on earthwork and site development costs, exploring design options to reduce site earthwork needed, and consider additional value engineering options. WORKSHOP MINUTES DECEMBER 12, 2023 PAGE FOUR Regarding the project schedule, Mr. Theisen said the City will host an open house with the community in late January to inform them of the work 3M will be doing in the coming months. This is a requirement per the MPCA. Mr. Theisen called attention to the possible early bidding date set for February 2024. This has been set to keep the project on schedule. Council Member Morcomb noted that the entire project schedule hinges on the work of 3M. Ms. Volkers stated that City staff is working with 3M to update the current real property donation agreement to ensure all parties are doing their part. Mr. Theisen confirmed that the project is being developed, reviewed, and approved in the same manner as any other development project in the City. The future City Council action items include approval of the tree preservation plan, approval of amendments to the real property donation agreement, approval of early bid packages, and approval of the guaranteed maximum price. Council Member Morcomb thanked the project team for the work that was put in especially with the value engineering. Council Member Willenbring expressed concern about the current design and its ability to meet the City’s future needs. Mr. Theisen stated that the project team had future needs in mind, but the budget ultimately dictates what can be built. Mr. Francois added that the bid alternates list was created with the future in mind. Council Member Morcomb asked if the bid alternates can be accepted after the initial bid package is accepted. Mr. Francois said the structure-related items would need to be accepted at the same time as the initial bid package. Ms. Volkers noted that Public Works staff participated in the value engineering decisions given their day-to-day expertise. In response to Council Member Her’s question about the increase of facility square footage from the current Public Works facility to the new Public Works facility, Public Works Manager Jim Romanik stated that it is about an additional 15,000 square feet. Bailey Buschke, Architectural Designer with HCM Architects, offered to send a footprint comparison to Ms. Volkers for Council dissemination of the old building on top of the new building. Regarding the energy usage at the new facility, Mr. Theisen said a new energy bill estimate compared to the old energy bill will be provided once the electrical work has been completed. Mayor Zabel requested information about the annual debt service on bonding of $6M versus $8M. Ms. Volkers stated she will send this information to the Council. In response to Council Member Willenbring’s question about how the funding will be affected if the legislature changes the local option sales tax (LOST) parameters, Ms. Volkers said this will help the City. Mayor Zabel added that the City could also add the increased LOST to the November 2024 ballot, if desired. WORKSHOP MINUTES DECEMBER 12, 2023 PAGE FIVE MANAGEMENT DISCUSSION – COMMUNITY DEVELOPMENT DIRECTOR Community Development Director Andy Gitzlaff began with a brief rundown of the proposed discussion topics found in the memo. Mayor Zabel requested to discuss a Spring development tour in greater detail. Mr. Gitzlaff recapped the inaugural fall 2022 guided tour and asked about Council’s interest in doing another tour or comparable event. Council Member Ingebrigtson was supportive of another tour. Mayor Zabel suggested adding a public-facing component to involve residents. The Council was in agreement that the next tour could take place after Arbor Day and prior to Summerfest. Additionally, the tour could take the place of the Environmental Management Commission, Economic Development Commission, and Planning Commission monthly meeting, if the timing coincides. Mr. Gitzlaff moved on to discuss the changes for the Business Retention, Expansion, and Attraction (BREA) program for 2024, asking Council for their feedback on proposed business sectors. Additionally, Council was also asked to assist staff with direct outreach to specific businesses for 2024. Council Member Morcomb suggested adding newly-opened businesses as a category. Mayor Zabel suggested adding non-profit businesses as a category. Other suggestions for specific businesses included Spartan Promotional, Impression Signs and Graphics, Daltile, Bento Moto, and Country Hearth. Next steps include the Council sending broader category options to Ms. Volkers, as well as Mr. Gitzlaff sending a working list of categories and businesses to Ms. Volkers for Council dissemination and feedback. In response to Council Member Willenbring’s question about Council participation in these BREA visits, Mr. Gitzlaff indicated one elected official per visit is the goal as their attendance adds value to the meeting. There was a brief discussion regarding ways to make the visit conversations more free-flowing and less like a question-answer exchange. Staff will provide feedback from this conversation to Oakdale Area Chamber of Commerce Administrative Manager Kim O’Brien. Council Member Morcomb thanked staff for the quarterly community development updates that are sent to the City Council. Council Member Willenbring requested that Mr. Gitzlaff speak to Professional Services within the Community Development Department. He explained that staff’s extra capacity to work on specific projects will ebb and flow depending on the day-to-day workload. A consultant can help bridge that gap by providing additional resources to expand the number of projects that can be delivered in a given time period. Mr. Gitzlaff added that a consultant can also provide a certain expertise that is not available in-house or could not be done as efficiently. ADMINISTRATOR UPDATE Ms. Volkers reported that staff is working on the internal process change regarding the pass through of utility billing credit card processing fees to residents. WORKSHOP MINUTES DECEMBER 12, 2023 PAGE SIX Secondly, Ms. Volkers brought up the City Council assignments for 2024 including the Council Liaison and Acting Mayor designations. Typically, this item is on the last workshop agenda of the year as it is voted upon at the first regular meeting of the following year. The Council determined that the Council Liaison assignments would remain the same for 2024. Additionally, Council Member Ingebrigtson would remain as Acting Mayor for 2024. Other assignments for the Cable Commission, Gold Line Corridor Management Commission, Metro- Inet Board, Acorn Award Committee, OACC, 3M Drinking Water Settlement Committee, and Two Rivers Community Land Trust were determined to remain the same for 2024. Discussion ensued about changes to the future Acorn Award Committee. It was requested that this item be brought back to the Council in the new year for discussion. COUNCIL TOPICS In response to Council Member Willenbring’s question about which budget the collected franchise fees go into, Ms. Volkers noted that currently they go into the General Fund, but there has been discussion about designating the funds for specific expenditures in 2024 and beyond. Mayor Zabel requested to move the Open Forum portion of the agenda for tonight’s regular meeting up to immediately follow the Truth-in-Taxation presentation and public hearing. The Council was amenable to the change. Council Member Morcomb asked about the feedback loop regarding residents that bring forth issues or comments during Open Forum. Ms. Volkers offered to provide an update on these items so that Council is informed of the resolution. ADJOURNMENT The workshop was adjourned at 6:50 PM. Respectfully submitted, Sara Ludwig, City Clerk

Agenda

AGENDA City Council Workshop Workshop December 12, 2023 HADLEY CONFERENCE ROOM 5:00 PM 5:00 PM Rooftop Solar Photovoltaic System 5:30 PM Public Works Facility Update 6:10 PM Management Discussion – Community Development Director 6:30 PM Administrator Update 6:35 PM Council Topics 6:50 PM Adjourn for Regular Meeting COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Hannah Dunn, Community Development Specialist Date: December 12, 2023 Subject: Rooftop Solar Photovoltaic System The purpose of this memorandum is to provide a recommendation regarding the repair, replacement, or removal of the solar photovoltaic (PV) system on the rooftops of Oakdale City Hall and the Police Department. BACKGROUND On November 30, 2011, the City of Oakdale entered into a Sales and Leaseback Agreement (“Agreement”) with Energy Alternatives Solar, LLC for a 39.96 kilowatt (kW) roof-mounted solar PV system. The system was installed shortly thereafter and became operational in May 2012. The equipment manufacturer was tenKsolar. The expected functional life of the system is 25 years; as of November 2023, the system is over 11 years old. The total price of the system at installation was $321,600. The Agreement contracted the City to make monthly “lease” payments to purchase power produced through the system for 72 months (with a buyout payment of $12,720 at the end of the lease term) and specified Energy Alternatives as the physical owner of the system. This structure allowed the City to benefit from a reduced system price due to tax rebates and credits, including Xcel Energy’s Solar*Rewards rebate, Xcel Energy’s Made in Minnesota rebate, and a federal income tax credit. As part of a Bill of Sale, Termination and Release Agreement executed at the end of the lease term in 2018, the buyout sum was negotiated from $12,720 to $2,720. The utilized rebates and buyout payment negotiations reduced the City’s share of the system cost to $40,880. The City now owns the solar PV system outright. In May 2017, tenKsolar announced that the company would be going out of business. Two years prior to their business closure, a 2015 Star Tribune article shared that tenKsolar had experienced micro-invertor failures that reduced the outputs of their solar panels 1. Another company, Global RAIS, acquired tenKsolar’s inventory soon after its liquidation and eventually the intellectual properties in June 2019. SYSTEM PERFORMANCE The performance of the system has decreased over its 11-year lifespan. While the steady decline can be attributed in part to natural system aging and degradation, visible damage to the panels has also impacted productivity. A May 9, 2022 hailstorm likely contributed to the damage and further decreased production. City staff inspected the panels in June 2023 and discovered that 128 of the 222 panels are cracked. Panels with cracks need to be entirely replaced as the replacement of only the glass layer is not a sensible solution due to the cost and difficulty of such a repair. In addition to the inspection by City staff, iDeal Energies (a commercial solar company) assessed the panels in April 2023. Their inspection revealed that many of the panels were below industry standard and not performing efficiently. While the system has been underperforming for years, it has produced nearly enough savings to cover the City’s share of the cost. According to eGauge, a real-time production and savings monitoring system, the City has saved approximately $39,570 and is therefore ~$1,310 from breaking even. 1 XCEL CONTRACTS In order to take advantage of certain rebates, in 2011, the City entered into a Solar*Rewards Contract with Xcel Energy for a term of 20 years where the City agreed to convey all of the Renewable Energy Credits (RECs) produced by the system. Per the Contract, “if during the term of this Contract the PV System or any of the individual components of the system should be damaged or destroyed, Customer shall promptly repair or replace the equipment to its original specifications, tilt and orientation.” The City Attorney reviewed the Contract and found that all obligations are still valid. Per the advice of the City Attorney, City staff contacted Xcel regarding the damaged panels and underperformance of the system to better understand the City’s options and Xcel’s recommendations. Xcel provided three options for dealing with an underperforming system: 1. Replace the faulty panels with similar sized panels to model the existing system. 2. Decommission the system, and pay back Xcel Energy the outstanding balance of incentive payments. The City received a total of $149,434 from Xcel in incentive payments through the Solar*Rewards rebate ($89,640) and the Made in Minnesota rebate ($59,794). The Solar*Rewards Contract that set forth the terms between Xcel and the City is in effect from May 8, 2012 to May 8, 2032. If the $149,434 received was parsed out to the individual years of the 20-year Contract, the City received $7,471.70 per year (or $622.64 per month) in incentive payments. The solar PV system has been operational for 11 years and 7 months. If the City was to decommission the system effective December 2023, there would be 8 years and 5 months left in the Contract term. Therefore, Xcel Energy would require the City to pay back $62,886.80 for the remaining length of the Contract. 3. Cancel the existing Solar*Rewards Contract and replace the current solar PV system with a new system that utilizes a new 20-year Solar*Rewards Contract. The time remaining on the canceled Contract (8 years and 5 months) would be added to the new Contract resulting in a term of nearly 29 years. STAFF RECOMMENDATION City staff recommends moving forward with Option 2 to decommission the system and pay Xcel Energy the remaining amount owing. The system is currently on two different roofs (Police Department and City Hall), both of which were installed in 2008. The Police Department roof is leaking and is in need of immediate replacement. In order to do so, the solar panels and equipment on this roof must be removed. A multitude of factors make the reinstallation of the removed panels and equipment impractical. Many panels on the Police Department roof are visibly damaged which negatively affects their performance. The glass of the cracked panels cannot be replaced and therefore the entire panel must be replaced. Other panels are performing under industry standard. Additionally, the City Hall roof will need to be replaced (possibly now due to May 2022 hail damage or possibly with the new police department expansion) which will require removal of those solar panels and equipment anyway. If the City was to remove the system from both roofs and not reinstall after roof replacement, the panels could be recycled for an additional cost described below or staff can research the possibility of a buyer purchasing the good panels and equipment. In addition to the Xcel payback, removal and recycling of the PV system is another associated cost with Option 2. According to a July 2023 estimate from iDeal Energies, removal and recycling is estimated to cost ~$29,584. Because the estimate is four months old, City staff will follow up to determine whether costs have changed, as well as seek quotes from other potential vendors. All of the PV system equipment is attached to the roof via foam blocks and patching will not be required after system removal. City staff also needs to confirm whether Xcel is the party required to disconnect the system. Because the rooftop 2 solar array provides electricity directly to the buildings, it may be possible that another contractor can disconnect the system. Regardless, disconnection may be an additional cost to consider. With the information currently available, the expected cost to decommission the system in December 2023 is at minimum $92,470.80 (~$62,886.80 for Xcel payback and ~$29,584 for removal). Option 2 is preferable over the other two options for reasons described below: Option 1 from Xcel Energy states that the faulty panels could be replaced with similar sized panels. The original manufacturer of the system, tenKsolar, is no longer in business. Therefore, the City would need to find and purchase roughly 128 panels from a different manufacturer that are similarly sized and there is a significant cost associated with that. The remaining tenKsolar panels that are not visibly damaged and are still performing above industry standard will continue to age and degrade over the next nine years. Additionally, the Police Department panels / equipment still needs to be removed for roof replacement either now due to the May 2022 hail damage or with the police expansion. The City would need to pay for this removal and the installation of the existing good panels and new replacement panels. Option 3 from Xcel Energy suggests replacement of the entire PV system with a new system that utilizes another 20-year Solar*Rewards contract. The nearly nine years remaining on the existing Solar*Rewards contract would be added to the new 20-year contract. Therefore, the City would be in a contract with Xcel for 29 more years, which will likely exceed the functional life of a new solar PV system. Additionally, there is no guarantee that the new roof will last the contract length. The existing Duro-Last roof is 14 years old and is leaking. Even if the City could negotiate with Xcel for a contract length of only 20 years, the lifespans of both a new PV system and new roof are not guaranteed to last until the end of a new contract and the City would be in the same predicament. COUNCIL ACTION REQUESTED Staff is requesting Council discussion and intent on the City’s options for the rooftop solar PV system. REFERENCES 1. Shaffer, D. (2915, October 28). TenKsolar to replace failed equipment on solar power arrays. Star Tribune. https://www.startribune.com/tenksolar-to-replace-failed-equipment-on-solar-power-arrays/338155601/ 3 COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Don Theisen, Owners Representative, Oakdale Public Works Facility Christina M. Volkers, City Administrator Date: December 12, 2023 Subject: Public Works Facility Update BACKGROUND In 2018, the City began the process of siting and development of a new Public Works Facility. In 2020, the 3M-owned 9.2-acre site located at 3200 Granada Avenue North was identified as the location for the new facility. A Land Donation agreement with 3M was executed in April 2023. The agreement terms include 3M completing environmental remediation of the site before the land is transferred to City ownership. The environmental remediation is being completed under a Response Action Plan (RAP) that has been reviewed and approved by the Minnesota Pollution Control Agency (MPCA). This work is expected to begin in February 2024 and be completed by April 2024. The City has employed Hagen, Christensen, McIlwain Architects (HCM) and Kraus-Anderson Construction Company (KA) to design and deliver this project. The project design has progressed to the Design Development (DD) level, providing plans that allow detailed budget analysis. Staff will review the attached PowerPoint with more details provided in the discussion, with a project update on the RAP work, project design, pending project issues, project schedule, project budget, and future City Council Actions anticipated. FINANCIAL CONSIDERATIONS The primary funding sources for the project include the voter-approved Local Options Sales Tax ($22M) and use of City Bonding ($6M). An update on the budget is included in the presentation. COUNCIL DIRECTION REQUESTED Discussion on the project update and pending issues to provide guidance to the project team. Attachment PowerPoint Presentation-Oakdale Public Works Facility Project Update Oakdale Public Works Facility Project Update Oakdale City Council Workshop December 12, 2023 Workshop Agenda • Team Introductions • Project Overview • Project Design • Project Budget • Project Schedule • City Approvals • Future City Council Actions • Discussion Team Introductions Architect – Hagen, Christensen, Construction Manager – Kraus- Owners Representative – Don Project Partner - 3M and McIlwain Architects Anderson Construction Theisen Corporation Company Civil Engineering – Bolton-Menk Engineering Environmental Engineering – Braun Intertec Project Overview Overview • 3200 Granada Avenue N • 9.2-acre site • Currently owned by 3M • Site is in Minnesota Pollution Control Agency Brownfield Program • Known as Brockman site • 3M to donate land after site clean-up Anticipated Site Conditions – after 3M Work Project Design • 75,000 Square Foot facility Public Entrance off Granada Avenue N 32nd Street View View of Operations and Fleet Storage Sustainable Initiative • Design exceeds Minnesota Energy Code • Building envelope exceeds all R and U values of the Minnesota Energy Code and Minnesota Building Code • 95% efficient water heater • Hot water vav boxes • Hot water radiant floor • Energy recovery unit • 95% efficient boiler Sustainable Initiative • Includes daylight harvesting, and LED dimming controls • Electric Vehicle charging for city vehicles and future needs • Rooftop unit • Design elements including window screening, kalwall, efficient fixtures, etc. Project Budget Phases • Concept • Based on gross square footages from programming, average costs • Schematic Design (SD) • Design has dimensions (blocks of space), preliminary site work, mechanical system sizing, exterior finishes • Design Development (DD) • Building spaces detailed, site work plan complete, interior finishes selected • Typically, this budget represents expected bid prices for the project • Construction Documents (CD) • Final budget check before bidding Project Budget – Concept • Concept Project Budget - $28,400,000 • Major Budget drivers unknown at the time • Level of site work needed (grading, storm water management) • Requirements from MPCA for Response Action Plan (RAP) Project Budget – Schematic Design • Concept Project Budget - $28,800,000 • Increase is MPCA Vapor Barrier System work (paid for by 3M) • Major Budget drivers (still) unknown at the time • Level of site work needed (grading, storm water management • Balancing the budget with available revenue required Value Engineering • Design changes and Bid Alternates developed Project Budget – Schematic Design • Design Changes thru Value Engineering to be bid as Alternates • Fuel Island complex – tanks, pumps, canopy • Restore Fleet Storage square footage - 2,000 sf • Add one additional Fleet Storage bay – 2,000 sf • Restore Mezzanine square footage – 3,000 sf Project Budget – Schematic Design • Design Changes thru Value Engineering - $2,900,000 • Change yard pavement from concrete to asphalt • Use load bearing precast walls versus steel framing • Revise precast panel design for more competitive bidding • Reduction in building parapet heights where feasible • Reduce exterior metal panels on shop and fleet storage spaces • Reduce Kalwall (glass) in fleet storage area • Eliminate 3,000 square feet of shop mezzanine • Eliminate 2,000 square feet of fleet storage Project Budget - Design Development • Design Development Project Budget - $30,200,000 • $1,400,000 over SD budget • Building cost estimate is in line with SD budget • Major Budget drivers for increase • Level of site work needed after 3M Work and cost responsibilities. • This will be unknown risk until 3M work is complete. • Storm water management rule changes from Department of Labor and Industry (DoLI) Project Budget - Design Development • Balancing the Design Development Budget • Potential Revenue • MN Department of Public Safety Homeland Security and Emergency Management Grant for facility back-up generator - $300,000 • Final earthwork and cost sharing with 3M on earthwork $0 - $700,000 • Tree Preservation Plan compensation from 3M Project Budget – Next Steps • Negotiation with 3M on earthwork and site development costs • Explore design options to reduce site earthwork needed • Consider Value Engineering items • Change decorative fence along 32nd Street to Black vinyl - $100,000 • Eliminate stainless steel screening at outdoor breakroom - $90,000 Project Schedule ITEM Schedule 3M Response Action Plan (RAP) work February to March 2024 Possible City Early Bidding February 2024 MPCA Approval of 3M RAP work April 2024 Project Bidding March – April 2024 Land Closing per Donation Agreement May 2024 City Council Approval of Guaranteed May 2024 Maximum Price (GMP) for project Public Works Project Start June 2024 – July 2024 Facility Construction August 2024 – June 2025 Project Completion July 2025 City Approvals • Project is being developed, reviewed, and approved in same manner as any development project. • City Staff approvals include: • Site Plan Review • Building Permit • Right of Way Permit for 3M RAP work • Grading Permit for 3M RAP work and Project work Future City Council Actions • Approve Tree Preservation Plan for 3M work and City project • Joint Plan to be submitted • Approval of amendments to Real Property Donation Agreement • Minor language clarifications needed • Cost sharing items not addressed in agreement • Approval of Early Bid Packages – if needed • Approval of Guaranteed Maximum Price (GMP) • Will be submitted by Kraus-Anderson after bidding Discussion Don Theisen Oakdale Owners Representative dontconsult@gmail.com Overall Level 1 Area B Overall Level 2 Area A Furniture Plan Area C Furniture Plan COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Andrew Gitzlaff, Community Development Director Date: December 12, 2023 Subject: Management Discussion – Community Development Director Discussion will be held with Community Development Director Andrew Gitzlaff to discuss items of interest and current happenings with an opportunity for Council to ask questions regarding the Community Development Department. Below are some items for discussion as time allows: 1. Development Pipeline - What is in the pipeline for 2024 and beyond and how could future growth be influenced by market conditions? What safeguards does the City have in place for approved projects that are not started or completed? 2. Spring Development Tour – In the fall of 2022, City staff organized a guided tour of recent and in progress development projects in Oakdale. The tour included a dinner beforehand, renting a bus and a tour packet for attendees. Attendees included City Council, Planning Commission, Economic Development Commission, Environmental Management Commission, and City staff. The event was well received. Given the recent development progress and the addition of new council members since the last tour, staff would like to gauge Council’s interest in doing another tour or comparable type event. 3. Business Retention, Expansion and Attraction (BREA) Program – Staff is working with the Oakdale Area Chamber of Commerce and the St. Paul Area Chamber staff to launch the 2024 BREA program, which will include 12 business visits. A business visit training is scheduled with Council for December 19, 2023 for both in person and virtual . Staff is looking for feedback from Council on business sectors or specific businesses to target in 2024. If a Council Member has a specific relationship with a business and would be willing to make direct outreach, that would help the City get our foot in the door. 4. Professional Services – When is it beneficial and financially responsible to bring on a consultant to help with a planning project? Extra capacity of staff to work on specific projects will ebb and flow depending on the day-to-day workload. A consultant can help bridge that gap by providing additional resources to expand the number of projects that can be delivered in a given time period. A consultant can also provide a certain expertise that is not available in-house or could not be done as efficiently. 5. Community Engagement – What strategies have worked well and what have not? How do we reach traditionally underrepresented populations? 6. 2024 Look Ahead - Upcoming planning studies and initiatives led by Community Development in early 2024 include the Oakdale Marketplace/Station PUD Amendment Study, 10th Street N and Geneva Ave N Redevelopment Plan, Zoning and Subdivision Code Update Project, and Parks System Master Plan to include Tanners park.

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