City Council Workshop

WORKSHOP MINUTES OAKDALE CITY COUNCIL MARCH 12, 2024 The City Council held a workshop on Tuesday, March 12, 2024 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 John Stark, Special Projects Manager Kyle Stasica, Finance Director OAKDALE MARKETPLACE AND OAKDALE STATION PLANNED UNIT DEVELOPMENTS STUDY, CONTINUED City Planner Luke McClanahan provided a brief recap of the prior workshop discussion on February 27, 2024, highlighted the issues that need further Council guidance, and reviewed the two concept plans. In response to Mayor Zabel’s question about the vacant parcel along 34th St N, Mr. McClanahan clarified that it is one large single parcel at this time. Mayor Zabel followed up asking if it would be viable to do one larger multi-tenant building fronting 34th St N versus two separate buildings. Mr. McClanahan said that there is less desire in the commercial real estate market for multi-tenant buildings. Community Development Director Andy Gitzlaff added that two separate buildings give flexibility to the types of businesses or uses on that parcel. Mayor Zabel noted that he would like to keep the development options open for that parcel. Council Member Her was supportive of exploring the market demand from developers and allowing for food options within the PUD. In response to Mayor Zabel’s question about when the Council will discuss permitted uses for the PUD, Mr. Gitzlaff indicated that would be the next step, but preliminary direction on permitted uses could be given at any time. WORKSHOP MINUTES MARCH 12, 2024 PAGE TWO Council Member Morcomb was supportive of fast casual restaurant options. In reference to the parcel with the current storage unit, Council Member Morcomb would prefer to keep that site commercial as that was the original intent of the PUD from its inception. Mayor Zabel pointed out that commercial development in the southwest quadrant is unrealistic due to access issues. Mayor Zabel and Council Members Her and Ingebrigtson were supportive of Concept 2, which proposes more residential development than Concept 1. In response to Council Member Morcomb’s question about what would happen to the storage unit business if it is taken over by new owners after the PUD zoning has been changed, Mr. Gitzlaff said the use runs with the land. If the business is sold, but the same use continues, the business would be grandfathered in, despite the revised zoning. He added, if at some point in the future, the current use ceases for more than one year, and the site has been rezoned, then the use would only be eligible under the new zoning requirements. Council Member Willenbring liked the daycare proposal in Concept 1. Mayor Zabel and Council Members Her and Morcomb agreed. Mayor Zabel suggested the possibility of a boardwalk over the marsh from the southwest quadrant to the proposed commercial site on the south side of 32nd St N (Parcel ID 1702921430051). City Administrator Chris Volkers recapped that the Council was supportive of the commercial proposal on the south side of 32nd St N, multifamily units in the parcel with the current storage unit and in the southwest quadrant. In regards to the purple site proposal in Concept 2 (located on the south half of Parcel ID 1702921410011), Mr. Gitzlaff indicated this can remain mixed use or commercial. In response to Council Member Her’s question about why the neighbors to the south do not want more residential developments, Council Member Morcomb noted that these residents have been hopeful for a longtime for commercial developments that would allow them to spend more time in the PUD area. FALL CLEANUP EVENT PROPOSAL Community Development Specialist Hannah Dunn provided a brief overview of the memo and asked for Council feedback on the questions listed. The Council was supportive of staff’s recommended time of 9 AM to 1 PM. In regards to the fees the City should charge, Mayor Zabel and Council Member Morcomb liked Cottage Grove’s fees. WORKSHOP MINUTES MARCH 12, 2024 PAGE THREE Mayor Zabel noted that Metropolitan Mosquito Control District takes tires for free, but the City could charge a nominal fee. In reference to the option of including miscellaneous material by load, Mayor Zabel pointed out that will depend on what the vendor will take. Ms. Volkers suggested adding a disclaimer about the right to refuse household hazardous materials and waste. Council Member Her suggested determining fees by splitting the overall cost halfway with residents. Mayor Zabel’s suggestion was to determine fees based on 25% of the City’s cost. In regards to how people can pay to drop off items, Public Works Manager Jim Romanik suggested an online prepay option through OpenGov. It was requested that the City figure out a way to use a mobile payment device to take payments at people’s cars on the day of the event. The Council was supportive of keeping the event open only to Oakdale residents and requiring proper ID verification. Ms. Dunn reported that the Ramsey/Washington Recycling and Energy Center has a mattress recycling program in collaboration with Second Chance Recycling that will help offset City costs related to mattress collection. She continued by listing staff’s recommendation for accepted and non-accepted items. In regards to the collection of household hazardous waste at the City’s event, Ms. Dunn stated that due to the commitments Washington County already has with other nearby cities, they may not have the capacity to partner for the City’s event. Mr. Romanik added that Fire Chief Kevin Wold should weigh in on whether the City accepts household hazardous waste due to past items that have been dropped off at this type of event. Additionally, in reference to the collection of electronics at the City’s event, Ms. Dunn shared that the County suggested directing residents to the Washington County Environmental Center or one of the six Washington County-sponsored events to drop off unwanted electronics. However, if the County is able to partner with the City then residents could bring electronics to the City’s event. Due to the transportation and storage requirements related to a prescription drug drop-off event, the City would not offer this as part of the event. Ms. Dunn noted that there is approximately $7,000 in 2023 budget carryforward dedicated for this event, but additional funding sources are needed to cover the overall cost of $15,000- $20,000. Ms. Volkers suggested increasing the carryforward amount to $15,000. Council was in agreeance. WORKSHOP MINUTES MARCH 12, 2024 PAGE FOUR As a follow up, besides other items noted above, Ms. Dunn will reach out to Metropolitan Mosquito Control District about the cost of tire pick up from the City’s event. NEW WILLOWBROOKE PARK NAMING CONTEST, CONTINUED The Council agreed to name the new Willowbrooke park ‘Willowbrooke Commons’. Mr. Gitzlaff offered to work with Communications Manager Lori Pulkrabek to determine a date for the groundbreaking event. Mayor Zabel suggested May 7, 2024 in coordination with the Council/Commission development tour already scheduled. Staff will look into if this is feasible. 2024 DEBT SUMMARY Finance Director Kyle Stasica provided a brief explanation as to as to what General Obligation (GO) means and why the City typically issues GO Improvement Bonds to finance annual street reconstruction projects as identified in the City’s current Capital Improvement Plan (CIP). Mr. Stasica reviewed the current 2024 Street Reconstruction project funding. Due to the fact the City’s 2024 Street Reconstruction project is not expected to meet the minimum of 20% assessments as needed to issue GO Improvement Bonds for the entire project cost amount, the City will need to consider alternate financing methods. In reference to updating the City’s policy that provides guidance on the City’s calculations of special assessments and process for assessing property owners and issuing bonds (FR-010), Ms. Volkers noted that City staff is working on this. In response to Council Member Willenbring’s question about the current state of the Enterprise Fund cash reserves, Mr. Stasica said there is roughly $2 million in this fund, but there are several large infrastructure projects within the CIP that will cause fluctuation for this fund. He noted that in 2025, the fund will go negative by $2.8 million, even with the increase in utility billing rates implemented in 2024, with the current CIP scheduled projects. The Council was in agreement to separate the project costs, and finance it using GO Improvement Bonds and Enterprise Fund cash reserves. Mr. Stasica moved on to discuss the Public Works Building project funding, noting the $22,000,000 sales tax supported portion would be authorized under Minnesota Statute 475 as Sales Tax Revenue Bonds, and the remaining $6,000,000 could be supported by Capital Improvement Bonds. He stated that there are several required steps prior to the issuance of Capital Improvement Bonds. Alternatively, the City could use Lease Bonds which would be issued by the Economic Development Authority and leased to the City; however, these bonds would not be General Obligation. WORKSHOP MINUTES MARCH 12, 2024 PAGE FIVE Mr. Stasica said Capital Improvement Bonds are a funding option for the Police Expansion and City Hall Renovation as well. The City’s bond counsel may be comfortable doing one public hearing and one Capital Improvement Plan for all three building improvement projects. Next, for the Willowbrooke projects, Mr. Stasica stated that the City is authorized to issue tax abatement bonds to finance the park improvements. In response to Mayor Zabel’s question about the benefit of using tax abatement bonds, Mr. Stasica explained that it is the main authority used for park improvements. The Council was supportive of deferring to staff to determine the funding source(s) of the Willowbrooke projects. In reference to the City’s two of the significant building improvements, the Police Expansion in 2025 and City Hall Renovation in 2026, Mr. Stasica reported that the Police Expansion will be financed through the Local Option Sales Tax and Capital Improvement Bonds, and the City Hall Renovation will be financed exclusively through Capital Improvement Bonds. Mayor Zabel asked about the architecture process for the Police Expansion and City Hall Renovation. Ms. Volkers stated that the City needs to go out for bid for the Police Expansion very soon. The architectural plans will include both the Police Expansion and City Hall Renovation as this is the most efficient method. Ms. Volkers added that several add alternates will be included in the Police Expansion request for proposal to include aspects of the City Hall Renovation. Council Member Willenbring suggested getting an air quality test within City Hall due to the water damage that has occurred recently. Ms. Volkers recommended doing one public hearing and one Capital Improvement Plan for all three building improvement projects. Lastly, Mr. Stasica said it is most beneficial to issue the 2024 bonds for the Public Works Building project, Willowbrooke projects, and Street Reconstruction project together. EXCESS GENERAL FUND BALANCE, CLOSURE OF CITY FUNDS, AND 2023 BUDGET CARRYFORWARDS Mr. Stasica explained that as part of the annual year-end process, staff evaluates all City funds and budget to actuals to determine if they are still required, if they have necessary funding to satisfy outstanding obligations, and if there are any opportunities to carry forward unspent funds. Mr. Stasica reviewed the estimated excess General Fund balance for year ending 2023. WORKSHOP MINUTES MARCH 12, 2024 PAGE SIX Mayor Zabel expressed hesitation about making decisions regarding the excess General Fund balance without going through a strategic planning process first. He would like to match resources to City goals. Ms. Volkers noted that a strategic planning process should happen sooner rather than later as it will inform 2025 budget decisions. Council Member Morcomb requested examples of the desired strategic planning as it is a broad term. Council Member Willenbring asked if there is a downside to waiting on the allocation of the excess General Fund balance, Ms. Volkers said there is not a downside as the City does not need to sweep the account. Council Member Morcomb was supportive of using the excess funds to drive down costs for taxpayers. Council Member Willenbring agreed. She was also supportive of the need for strategic planning. Mayor Zabel agreed that the Council should review ways to reduce the bonding, specifically for the Willowbrooke projects. It was requested that staff bring options to the Council as a specific bond amount cannot be determined yet. Mr. Stasica indicated that the City can prepare initial bond amounts and make reductions prior to the issuing of the bonds. Ms. Volkers confirmed that is how it will be done again this year. Mayor Zabel pointed out that the Council should be aware of upcoming park projects when looking at allocating the park dedication fund assets. In reference to the closure and transfer of City Funds #693, 695, and 697, Mr. Stasica stated that unspent bond proceeds are very restricted. He noted that bond counsel has advised on other ways to spend these remaining funds. For example, funds from the Utility System Replacement Fund (USRF) that were transferred into the 2022 Street Improvements fund can be transferred back into the USRF and replaced with remaining unspent bond proceeds. In response to Mayor Zabel’s question about applying unspent bond proceeds toward the levy, Mr. Stasica confirmed that is an option to lower the debt service levy for the 2022As. He also said, the unspent 2022 Street Improvement bonds can be applied to the 2024 Street Reconstruction project. Council Member Ingebrigtson asked about the interest savings over the next 10 years comparing the 2022 interest rates to the 2024 interest rates. Mr. Stasica said he would need to calculate this amount. The Council was supportive of transferring a portion of the unspent bond proceeds back into the USRF and using a portion of it to pay down the 2024 bond issuance. In regards to the 2023 budget carryforwards, the Council was comfortable with the list as presented. Mayor Zabel reminded staff to work towards expending these funds in the year in which they were budgeted. WORKSHOP MINUTES MARCH 12, 2024 PAGE SEVEN 2024 ENVIRONMENTAL MANAGEMENT COMMISSION WORK PLAN & FUTURE ACTIVITIES OF ENVIRONMENTAL MANAGEMENT COMMISSION Mayor Zabel noted that the Environmental Management Commission (EMC) is a passionate and engaged group. He voiced concern about several items on the work plan being action items for staff versus the Commission. It was suggested that the ‘Environmental Fair’ be put on hold until at least 2025. Council Member Morcomb was supportive of the EMC researching grant opportunities for the City. 2024 ECONOMIC DEVELOPMENT COMMISSION WORK PLAN & FUTURE ACTIVITIES OF ECONOMIC DEVELOPMENT COMMISSION Council Member Her reported that the Economic Development Commission (EDC) spoke about the Business Retention, Expansion, and Attraction (BREA) visits, their 2024 work plan, and their role as a Commission at their appreciation dinner. He noted a challenge in determining the group’s direction and purpose. Mayor Zabel echoed Council Member Her’s sentiment regarding the EDC delivering purpose. Council Member Her suggested opening up 2-3 seats on the Economic Development Authority for appointed EDC members. Ms. Volkers stated that she has not seen success if the appointed members are in the majority. Mayor Zabel and Council Member Ingebrigtson were opposed to Council Member Her’s suggestion. In reference to sunsetting the EDC, Council Member Morcomb noted that it would be an easier transition for some EDC members if there was another commission to join. He was supportive of the City starting an Arts and Culture Commission. Mayor Zabel offered that the advisory body term limit could be reinstated. In reference to using the EDC as a way to obtain information about development in the City, Council Member Her noted that there is an entire page on the City’s website dedicated to development updates. The Council was supportive of laying groundwork now for advisory body changes in 2025. RECESS FOR REGULAR MEETING AT 6:51 PM WORKSHOP RECONVENED AT 8:42 PM after the Regular City Council Meeting ADMINISTRATOR UPDATE Ms. Volkers had nothing to report. WORKSHOP MINUTES MARCH 12, 2024 PAGE EIGHT COUNCIL TOPICS Council Member Willenbring brought up how the City of Red Wing posts a meme on their Facebook page a day before their Council meeting highlighting a few agenda items. She said she could send an example to Ms. Volkers so that the City might consider doing something similar. Council Member Morcomb suggested updating the City’s fee schedule and/or City Code to allow for volleyball playing in City parks, specially the staking of personal nets. Ms. Volkers stated that in the meantime, and by the end of the month, staff will identify where residents can play volleyball. Mayor Zabel brought up an earlier email from Ms. Volkers about a possible joint statement from the City Council regarding an incident involving the Police Department that took place the night before. Discussion ensued about whether to move forward with this joint statement. Assistant City Attorney Rachel Tierney weighed in saying that most city councils do not issue joint statements, but there are unique situations where it does happen. Ultimately, the Council decided against it. Mayor Zabel reported on the most recent Regional Council of Mayors’ meeting and will send the slides to Ms. Volkers for dissemination. Ms. Volkers noted that she is pursing leads for a City grant writer. This position may come through in the 2025 proposed budget. Mayor Zabel asked that the City Council and City staff make an effort to attend the monthly Oakdale Area Chamber of Commerce meetings. ADJOURNMENT The workshop was adjourned at 9:08 PM. Respectfully submitted, Sara Ludwig, City Clerk