City Council Workshop

SPECIAL WORKSHOP MINUTES OAKDALE CITY COUNCIL JULY 30, 2024 The City Council held a special workshop on Tuesday, July 30, 2024 at Platinum Bank, 7667 10th St N, Oakdale, Minnesota. The meeting began at 1:07 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 Brian Bachmeier, Consulting City Engineer Andy Gitzlaff, Community Development Director Melanie Lee, Human Resources Director Nick Newton, Police Chief Lori Pulkrabek, Communications Manager Kyle Stasica, Finance Director Julie Williams, Recreation Superintendent Kevin Wold, Fire Chief 2025-2029 CAPITAL IMPROVEMENT PLAN AND 2025-2034 VEHICLE AND EQUIPMENT REPLACEMENTS City Administrator Chris Volkers introduced the proposed 2025-2029 Capital Improvement Plan (CIP) with Finance Director Kyle reviewing and ultimately asking for Council intent and feedback. Mr. Stasica went over the CIP budget assumptions which include $135,000 into the Municipal Building Fund, $320,000 into the Park Capital Fund, $395,000 into the Street Improvement Fund, and $1,320,474 into the Vehicle and Equipment Replacement Fund (VERF). In response to Mayor Zabel’s question about the Capital Asset Maintenance Replacement Plan, Mr. Stasica explained that each Facility asset would have its own CIP which helps plan for future maintenance costs. Ms. Volkers added that a contractor will develop the Plan, and Facilities staff will implement it. Mr. Stasica reviewed the Municipal Building Fund noting that similar funds such as the Public Works Facility, Police Expansion, and City Hall Renovation are grouped with the Municipal Building Fund to simplify the budget summary. Mayor Zabel requested that the cash balance be included in the budget summaries. Ms. Volkers said this will get added moving forward. SPECIAL WORKSHOP MINUTES JULY 30, 2024 PAGE TWO Mr. Stasica went over the changes to the Park Capital Fund including that Willowbrooke Trails increased $250,000 from the prior CIP, Willowbrooke Open Space increased $325,000 from the prior CIP, and Willowbrooke Neighborhood Park West increased $375,000 from the prior CIP. Mayor Zabel stated that because the Willowbrooke Neighborhood Park West cost went from $1,672,000 to $2,047,000 there may need to be a discussion about the included amenities. In response to Council Member Morcomb’s question about the cost drivers, Community Development Director Andy Gitzlaff indicated that the restroom facility accounts for the largest increase. Council Member Morcomb stated that maintaining the current park restrooms has been challenging and asked if it is possible to invest in a restroom facility at a later date. Mayor Zabel added that portable toilets could be used for now. Mr. Gitzlaff explained that the next steps for the Willowbrooke Neighborhood Park West project is a Request for Proposal (RFP) for park design which will be presented to Council for final approval before going out for bids in early 2025. Mayor Zabel was not comfortable providing a 2025 proposed budget without more information on the amenities and changes to the budget. Mr. Gitzlaff offered to pull up updated numbers for Council consideration. Mr. Stasica pointed out that the Park System Plan Update will likely change the list of placeholder projects, but all volleyball court projects have been switched from sand to artificial turf. In reference to the Park Dedication – Helmo Station revenue over years 2024-2026, Mr. Gitzlaff confirmed that includes park dedication from all parcels within the Helmo Station Planned Unit Development. In response to Council Member Willenbring’s question about if the Willowbrooke Commons maintenance costs are accounted for in the budget, Mr. Stasica explained that a line item has been added in the Parks operating budget for Willowbrooke Commons maintenance. As a follow up, Council Member Willenbring asked how the need for additional personnel is determined especially as it relates to additional parks. Ms. Volkers noted that the long-term financial plan model provides a level of analysis by employee. Additionally, when the Data Analyst position is filled soon this person will merge the long-term financial plan model and analyzation of the allocation of staff time to provide a wholistic operational picture which will help inform staffing decisions. Mr. Stasica circled back to the 2025 proposed budget for the Willowbrooke Neighborhood Park West project. He went over the line items that make up the $2,047,000. SPECIAL WORKSHOP MINUTES JULY 30, 2024 PAGE THREE Mayor Zabel mentioned that the proposed lighting could have impacts on the adjacent housing and will likely need to be reviewed. Ms. Volkers stated that the Council will review the Willowbrooke Neighborhood Park West amenities and budget with the chosen consultant at a future workshop. Mr. Gitzlaff added that part of the RFP will include direction to bring the 2025 proposed budget down. It was determined that for now, the 2025 proposed budget for the Willowbrooke Neighborhood Park West project would decrease to $2,000,000 from $2,047,000 until that future workshop discussion is had. In response to Council Member Her’s question about why the $35,000 for the Eastside Park Sand Volleyball Court is not included in the Park Capital Fund budget summary, Ms. Volkers noted that the funds are being held for the future artificial turf volleyball court at the to-be- determined location. In reference to the fund balances for each year, Mayor Zabel requested that there be an allocated versus encumbered amount to reflect project fund carryover. Mr. Stasica will add this information to future budget summaries. Ms. Volkers noted that budget and CIP carryover items will be brought to the Council in the 1st Quarter each year for their feedback. In response to Council Member Her’s question about when the Park System Plan Update outcomes are reflected in the Park CIP, Mayor Zabel said that will start happening in 2026. Mr. Stasica reviewed the Special Project Fund noting an increase of $220,000 due to the newly-required public safety radio encryption. Police Chief Nick Newton explained that the radio encryption requirement is a Statewide project and is required because the City uses Washington County’s cellular radio towers. Mayor Zabel requested that the few remaining Capital outlay line items be deleted since they are part of the Vehicle Equipment Replacement Fund (VERF) now. Mr. Stasica agreed. In reference to the Police Department tech upgrades, Ms. Volkers noted those will likely carryover from 2025 to 2026. Ms. Volkers stated that the City-wide Asset Management Plan is important to better document and account for the infrastructure within the City. This Plan will integrate with the geographic information system (GIS) of the City. Ms. Volkers will send the summary and past proposal to Council. For now, this Plan is on hold until Council can give informed feedback. Regarding depreciation, Mr. Stasica explained that all infrastructure related to a street project is depreciated as a lump sum. Council Member Willenbring expressed concern about this method. Mr. Stasica clarified that this method is not used City-wide, only for Street Projects; and these street projects are split by the type of asset (street, water, sewer, street light). This is industry practice and reviewed each audit. SPECIAL WORKSHOP MINUTES JULY 30, 2024 PAGE FOUR Moving on to the Street Improvement Fund, Mr. Stasica stated that the City can advance up to $4 million total through the Municipal State Aid (MSA) advance for specific roads identified by Consulting City Engineer Brian Bachmeier. In response to Mayor Zabel’s question about when the City should stop borrowing from future years, Mr. Stasica pointed out that the City did not borrow ahead in 2024. Ms. Volkers added that the MSA Advance is interest-free and allows the City to bond less. Mayor Zabel cautioned that a costly project may be on the horizon and the City may need the MSA advance then. Council Member Morcomb was supportive of using the MSA advance now especially for the upcoming infrastructure replacements. In response to Mayor Zabel’s question about where special assessment revenue is recorded, Mr. Stasica explained that the prepayments are revenue in the Street Improvement Fund and everything else not prepaid is in the Debt Service Fund and used to pay off the bonds. Mr. Bachmeier stated that when a city uses the MSA advance, the needs and the allocation are increased due to its use. Mr. Stasica reviewed the Utility System Replacement Fund noting that it transfers money in from the Enterprise Funds and transfers it out to the Street Improvement Fund and Other Street Improvements. Ms. Volkers stated that the Painting of Water Tower 3 will be carried over to 2025. The Council would like to revisit a possible design for this water tower. In response to Mayor Zabel’s question about the status of the Water Meter Transmitter Replacement Program, Ms. Volkers reported that Utilities staff is reviewing all the options related to this project. The current $350,000 budgeted for 2024 will be carried over to 2025. Mayor Zabel asked about staff capacity as it relates to how many replacements can get done in one year. Ms. Volkers said staff will look into this. As for the current $350,000 budgeted in 2025, it was suggested to move it back into the fund balance until staff can determine a more accurate budget amount. Mr. Stasica went over the two signal improvement projects – County Road 14 and Marketplace Drive, and Stillwater Blvd and Helmo Ave N. In response to Council Member Morcomb’s question about whether the budgeted signal improvements account for a possible higher project cost due to a roundabout, Mr. Bachmeier noted that the cost will not differ much between a roundabout or a signal. SPECIAL WORKSHOP MINUTES JULY 30, 2024 PAGE FIVE Mr. Stasica briefly reviewed the Water Availability Reserve Fund and Sewer Availability Reserve Fund. Mayor Zabel clarified that the utility rates will be discussed at a future workshop meeting. In reference to the VERF, Mayor Zabel asked if there is anything from 2024 that has not been ordered, received, or paid for, and if so, how does that lag affect the budget. Ms. Volkers confirmed that there is a 12-24-month lag on many of these vehicles. Fire Chief Kevin Wold stated that if approved, the City would order a new fire engine in late 2024, pay for the chassis in late 2025, and make final payment in late 2026 when the fire engine is received. Mr. Stasica listed the items that make up the $840,000 CIP proposed for Fire and EMS. Chief Wold noted that the lag between ordering and receiving an ambulance is two-to-three years, but payment is not due until delivery. Mr. Stasica pointed out that it is often difficult to predict when a vehicle will be delivered. Based on the information shared by Chief Wold about the ambulance, Mayor Zabel suggested budgeting for the vehicle in the year that the payment is due. Council Members Willenbring, Morcomb, Her, and Ingebrigtson were more comfortable budgeting for the cost over multiple years. Mr. Stasica offered to account for the funds by indicating the year in which they will be encumbered. Ms. Volkers noted that the department head will need to seek Council approval when purchasing the vehicle. The Finance Director will review this request and report back accordingly. In reference to the proposed 2025 vehicle replacements, Mr. Stasica stated that there are four Police Department vehicles. Chief Newton asked if the Council would like to explore an electric vehicle for the Community Service Officer. Mayor Zabel pointed out that there are federal grants available for this option. Mr. Stasica noted that charitable gambling funds will be used to offset two of the Police Department vehicles. He continued with proposed 2025 vehicle replacements, noting that there are two Fire Department vehicles, and five Public Works vehicles. Staff will review if the Public Works pickup trucks have additional useful life. The next workshop will include a review of the General Fund. ADJOURNMENT The workshop was adjourned at 2:40 PM. Respectfully submitted, Sara Ludwig, City Clerk