City Council Workshop

WORKSHOP MINUTES OAKDALE CITY COUNCIL JUNE 25, 2024 The City Council held a workshop on Tuesday, June 25, 2024 at Oakdale City Hall, 1584 Hadley Avenue North, Oakdale, Minnesota. The meeting began at 5:01 PM. Present: Mayor Kevin Zabel Council Members: Noah Her Jake Ingebrigtson Susan Willenbring Absent: Council Member Andy Morcomb City Staff Members: Christina Volkers, City Administrator Sara Ludwig, City Clerk Hannah Dunn, Community Development Specialist Andy Gitzlaff, Community Development Director Nick Newton, Police Chief Lori Pulkrabek, Communications Manager Kyle Stasica, Finance Director Julie Williams, Recreation Superintendent Kevin Wold, Fire Chief Others Present: Justin Brendon, Environmental Management Commission Candidate Katie Lasch, Environmental Management Commission Candidate Chai Lee, Metropolitan Council Member, District 13 ENVIRONMENTAL MANAGEMENT COMMISSION INTERVIEW CANDIDATE: KATIE LASCH Mayor Zabel welcomed Environmental Management Commission (EMC) Candidate Katie Lasch and explained the interview process. Ms. Lasch provided a brief introduction about her residency, and professional and educational background. She mentioned that outgoing Commissioner Bonnie Wilson recommended she apply. Mayor Zabel spoke about projects that the EMC has worked on and will be working on in the near future. In response to Mayor Zabel’s question about ways the City can reduce solid waste, Ms. Lasch said the City could focus on items that are large such as mattresses. WORKSHOP MINUTES JUNE 25, 2024 PAGE TWO In response to Council Member Willenbring’s question about how Ms. Lasch’s educational background has influenced her passion for the environment, Ms. Lasch stated she has in- depth knowledge of the subject matter which allows her to discern what to take seriously. Council Member Her pointed out Ms. Lasch’s technical expertise and asked how she might help translate complex concepts for the public. Ms. Lasch explained that she does have the ability to read technical information and understand its meaning to provide appropriate next steps. Mayor Zabel told Ms. Lasch that Council will discuss the interview and staff will be in contact about their decision. ENVIRONMENTAL MANAGEMENT COMMISSION INTERVIEW CANDIDATE: JUSTIN BRENDON Mayor Zabel thanked EMC Candidate Justin Brendon and explained the interview process. Mr. Brendon provided a brief introduction about his residency, and professional and educational background. Mayor Zabel spoke about projects that the EMC has worked on and will be working on in the near future, and asked if there are specific projects that Mr. Brendon would be passionate about. Mr. Brendon stated he has interest in electric vehicles (EV) and solar rebates, and cleaning up the community. In response to Council Member Ingebrigtson’s question about why Mr. Brendon chose to study in Ireland, Mr. Brendon noted that there was a considerable cost savings as opposed to studying stateside. Mayor Zabel told Mr. Brendon that Council will discuss the interview and staff will be in contact about their decision. DISCUSSION RE: ENVIRONMENTAL MANAGEMENT COMMISSION INTERVIEW CANDIDATES Council was in agreement to move forward with appointing Ms. Lasch and Mr. Brendon to the Environmental Management Commission. METROPOLITAN COUNCIL MEMBER CHAI LEE DISCUSSION Mayor Zabel thanked Metropolitan Council Member Chai Lee for attending the Workshop. Council Member Lee praised the City’s Development Tour and thanked staff for the invitation. He provided a brief introduction on his political and professional background before jumping into specific updates. Council Member Lee noted that the Metropolitan Council is in the middle of the policy-making period, but the first draft of the next regional development guide, Imagine 2050 will be released in early July. Council Member Lee mentioned that the population WORKSHOP MINUTES JUNE 25, 2024 PAGE THREE forecasts included in the draft are preliminary and communities will have an opportunity to comment until early 2025. In regards to transportation, Council Member Lee noted that the Gold Line Bus Rapid Transit (BRT) project has a planned opening of March 2025. Also, the Microtransit Pilot Project is expanding into Woodbury and parts of Oakdale. Council Member Lee offered to forward along applicable grants or funding sources to City staff, and was willing to advocate on the City’s behalf whenever needed. Mayor Zabel stated that the City is appreciative of the Metropolitan Council expanding microtransit into Oakdale, but indicated that there could be additional public spaces included such as government buildings, the public library, and schools. In response to Council Member Willenbring’s question about microtransit, Council Member Lee explained that it is a public sector version of Uber or Lyft, but with predetermined destinations. Mayor Zabel added that it is similar to Newtrax. Community Development Director Andy Gitzlaff complimented the Metropolitan Council staff on explaining the initial population growth projections, and working to come up with a solution to meet regional and market needs within their scope. In response to Council Member Her’s question about an update on a State-level bipartisan group initiative to take an in-depth look at the Metropolitan Council, Council Member Lee stated that no news has been heard from the latest legislative session, however, he is open to changes within the government structure including staggering terms. Mayor Zabel requested that the Metropolitan Council look at cost efficiencies as it relates to sewer treatment to help lighten the financial load on cities and residents. In response to Mayor Zabel’s question about the role the Metropolitan Council will play in addressing housing gaps, Council Member Lee said staff works hard to utilize the housing vouchers from the Federal government. Additionally, the Metropolitan Council relies on partnerships with other public housing agencies and receptive landlords to help local residents get housing. Council Member Lee was thankful for the opportunity to speak with the City Council. He stated that he is looking forward to fostering the relationship with the City and will continue to advocate on its behalf. 2025 OPERATING BUDGETS AND PROPERTY TAX LEVY PLANNING CONTINUED City Administrator Chris Volkers stated that staff took feedback from the previous Workshop and is working on incorporating it within the General Fund. This discussion focuses on the Enterprise Funds and Special Revenue Funds. Mr. Stasica stated that staff will work on the WORKSHOP MINUTES JUNE 25, 2024 PAGE FOUR utility rate percentages once the Capital Improvement Plan (CIP) is completed. Council was reminded that they did not want to do a utility rate study, so anything staff proposes will be without a study/data validation. Mr. Stasica went over the 2025 Water Fund projected expenses. In response to Mayor Zabel’s question about the increase related to the Supervisory Control and Data Acquisition (SCADA) contract, Ms. Volkers asked Mr. Stasica and/or Public Works Utility Superintendent Mike Kothe to send a follow up email with detailed information. Mr. Stasica then went over the 2025 Sewer Fund, Street Light Fund, and Surface Water Fund projected expenses. In response to Mayor Zabel’s question about the advantage of billing certain portions of full- time employees (FTEs) to certain funds, Mr. Stasica explained how the various enterprise funds are their own units. To follow up, Mayor Zabel asked why all personnel is not lumped together in the General Fund to get a better picture of overall cost to run the City. Mr. Stasica stated that assigning the FTEs to their respective funds is a best practice and true representation of the expense. In regards to a total FTE summary page within OpenGov, Mr. Stasica noted that page will be created soon and can include the total number of individuals and total costs. Ms. Volkers said that several Council Members have asked if there is another way to fund future infrastructure aside from increasing utility rates for current residents. Mr. Stasica mentioned special assessments, but cautioned that there has to be a direct correlation between the updated infrastructure and increased property value which is not always easily identifiable. Ms. Volkers also suggested utility general obligation bonds that could be spread over the life of the infrastructure, i.e., 50 years. Council Member Her clarified that by bonding for the CIP projects, the Council is trying to reduce the rate increases year-over-year. In response to Mayor Zabel’s question about what other cities do in reference to funding large infrastructure projects, Ms. Volkers stated that there are other resources to look into like low- interest State loans, infrastructure grants, and Federal funding besides property taxes and debt financing. Council Member Willenbring expressed concern about continuing to increase utility rates year- over-year as there needs to be a legitimate reason for the rate increase. WORKSHOP MINUTES JUNE 25, 2024 PAGE FIVE In response to Council Member Ingebrigtson’s question about the downside to having too much money in savings, Ms. Volkers noted that the auditors suggest, and best practice is having only 45-50% of the subsequent years’ budgeted expenditures for working capital as cash on hand. Mayor Zabel pointed out that it is difficult to determine the utility rates without having the CIP projects identified. Council Member Her asked if the long-term financial plan model could be used to help determine future utility rates. Mr. Stasica stated that it is a possibility, but a utility rate study would be more accurate and look at all the facets of the utility rates. In regards to water and sewer usage, Mayor Zabel suggested re-evaluating the tiers and thresholds related to utility billing. Council Member Willenbring was supportive of utility rates that are fair and only cover the costs of the infrastructure. Council Member Ingebrigtson cautioned that there has to be a margin of error to avoid a deficit in any given year. Council Member Her was comfortable with utility rate increases that will be used to cover future CIP projects. Mr. Stasica pulled up a chart with 2019-2025 revenues and expenses to review the 2024 Water Fund budget. In response to Council Member Her’s question about the unusually high increase in the 2023 actual Water Fund revenues, Mr. Stasica noted that a large portion of that was interest income. Mr. Stasica explained the 2025 Water Fund projected expense increase which includes a drastic transfer out to the Street Capital Fund. Mayor Zabel suggested charging a service fee upon hook up to cover the cost of having the infrastructure versus using the usage rate to cover that cost. In response to Council Member Willenbring’s question about having a single line item fee on the residents’ water bills, Mr. Stasica noted that some fees are passed through from other agencies so they have to be itemized. Mayor Zabel asked that a line item within the Enterprise Funds be created to identify excess funds that will be used for future expenses as it increases transparency. WORKSHOP MINUTES JUNE 25, 2024 PAGE SIX Mr. Stasica pointed out that the Water and Sewer Funds have stable projects every year, however, the Street Light and Surface Water Funds are more sporadic. Mayor Zabel said the next step includes staff presenting the revised 2025 CIP which will help Council decide the utility rates. Mr. Stasica stated that at the July 9, 2024 Workshop, he will present scenarios of the 2025- 2029 debt levy. ADMINISTRATOR UPDATE Ms. Volkers had nothing to report. COUNCIL TOPICS Council Member Her mentioned speaking to a resident about the lack of garbage cans along Hadley Ave N. Mayor Zabel suggested bringing this up as part of the larger environmental conversation during the Strategic Planning meetings later this year. Council Member Her brought up utilizing advisory body members who have technical knowledge to help advise the City on different matters especially as it relates to water. Mayor Zabel added that the City can look for ways to empower the EMC to work with the various watersheds regarding specific projects or grants. Mayor Zabel went over the Summerfest events for the week. He thanked the Oakdale Summerfest Community Organization and the Parks and Recreation staff for their hard work on the event. ADJOURNMENT The workshop was adjourned at 6:44 PM. Respectfully submitted, Sara Ludwig, City Clerk