City Council Workshop

WORKSHOP MINUTES OAKDALE CITY COUNCIL SEPTEMBER 23, 2025 The City Council held a Workshop on Tuesday, September 23, 2025 at Oakdale City Hall, 1584 Hadley Avenue North, Oakdale, Minnesota. The meeting began at 5:00 PM. Present: Mayor Kevin Zabel Council Members: Andy Morcomb Kari Moore Gary Severson City Staff Members: Christina Volkers, City Administrator Sara Ludwig, City Clerk Brian Bachmeier, Consulting City Engineer Jake Foster, Assistant City Administrator Andy Gitzlaff, Community Development Director Melanie Lee, Human Resources Director Max Lohse, Community Development Specialist Luke McClanahan, City Planner Nick Newton, Police Chief Lori Pulkrabek, Communications Manager John Stark, Special Projects Manager Ivan Stepanov, Finance Director Cory Tietz, Public Works Director Kevin Wold, Fire Chief Others Present: Jay Demma, Senior Urban Planner, Stantec REVIEW OF HOUSING STUDY FINDINGS Community Development Director Andy Gitzlaff explained that this presentation is to walk through the findings of the Housing Study, noting that there is a menu of possible housing strategies prepared by Stantec that will be presented for future consideration. Jay Demma, Senior Urban Planner with Stantec, began by reviewing the research interview takeaways and the results from the Community Housing Survey. Mayor Zabel inquired if the City is missing key information by only looking inward versus casting a wider regional net. Mr. Gitzlaff stated that a broader range was not in the scope of this study, but is something staff could explore in the future. Mr. Demma continued with the menu of housing strategies which fall into four main categories – Production Strategies, Preservation Strategies, Site-Specific Strategies, and Capacity Building Strategies. The idea is that not all strategies are currently applicable, but may make sense for the City to implement in the future on a project-by-project basis. Specific strategies presented include Production Strategy 1: Workforce/Affordable Units, Production Strategy 2: Rent-Restricted Units, and Production Strategy 3: Senior Housing. WORKSHOP MINUTES SEPTEMBER 23, 2025 PAGE TWO In response to Council Member Severson’s question about the possibility of too much senior housing, Mr. Demma explained that most senior housing can be reverted back to non-age restricted housing so that should not be an issue with an aging population. Mayor Zabel asked about the common correlation between senior housing and multifamily when there are other examples of senior housing like townhomes and smaller single-family homes. Mr. Demma made a note of this and added bungalow-style homes as senior housing options as well. Mayor Zabel requested that these wide variety of options be denoted in the Housing Study. Moving on, Mr. Demma went over Production Strategy 5: Move-up Homes, Preservation Strategy 1: Naturally Occurring Affordable Housing, Preservation Strategy 2: Land Trust Homes, Preservation Strategy 4: Home Maintenance and Rehabilitation, Site-Specific Strategies 1: Infill Residential Sites, Capacity Building Strategies 1: Local Housing Trust Fund, and Capacity Building Strategies 2: Dedicated Housing Staff Time and Resources. Council Member Moore was appreciative of the Housing Study, making a note that having affordable housing options in the City is important. She also shared that what she gathered is that the Housing Study data is supportive of smaller lot sizes. Mayor Zabel added that this is likely driven by the market, but he was curious what that will look like in the next five years. Council Member Morcomb brought up the possibility of restricting rental licenses especially as it relates to short-term rentals. Mayor Zabel was of the opinion that a few of the strategies from the presentation are outside of the scope of day-to-day local government services. His preference would be to support professional organizations already doing the suggested work. Council Member Moore offered that it is in the City’s purview to support those residing within its borders. Regarding posting the Housing Study on the City’s website, it was determined that only the survey responses and data analysis be posted. Next steps include Council providing any additional feedback to staff in the next week as well as staff preparing the information to be posted on the City’s website. Mayor Zabel suggested that the Comprehensive Plan is the vehicle used to vet and adopt strategies and policies. MERCHANT MCINTYRE ASSOCIATES FEDERAL FUNDING SERVICES Assistant City Administrator Jake Foster briefly introduced the Merchant McIntyre Associates proposal seeking Council’s feedback and intent on securing a contract for federal funding services. WORKSHOP MINUTES SEPTEMBER 23, 2025 PAGE THREE Council Member Severson asked about the accuracy of the return on investment (ROI) provided in the proposal. Mr. Foster noted that the exact ROI can be tricky to pinpoint given the range of funding that may be secured. To follow up, Council Member Severson asked if specific projects would be identified. Mr. Foster confirmed, citing the Council’s legislative priorities and the replacement of watermains as one specific example. In response to Council Member Severson’s question about a competitive bid process, Mr. Foster said there are other grant seeking/writing strategies available, but they may not be as comprehensive as this proposal. Regarding the $6,000 monthly retainer, Council Member Morcomb inquired whether that would cover travel expenses should there be a need for City staff to travel to Washington D.C., and if there is staff capacity for this type of time commitment. Mr. Foster stated that Merchant McIntyre Associates is based in D.C. so travel would likely not be necessary. Council Member Morcomb was supportive of seeking federal funding for the replacement of watermains. Council Member Moore shared concerns about recent instances of rescinded federal funding opportunities. Mayor Zabel suggested checking with the National League of Cities for publication on how to weather federal funding changes. The Council was in agreement that there is a need for this type of service to help secure federal funding, but given Council’s feedback, City Administrator Chris Volkers offered that staff would gather additional proposals for Council consideration. ASSESSMENT DEFERRALS CITY POLICY FR-010 Finance Director Ivan Stepanov provided a brief recap of the presented information in the Workshop memorandum, and asked for Council’s intent regarding the accumulation of interest on deferred assessments. Mayor Zabel was comfortable waiving interest, but was supportive of additional measures to ensure repayment at the end of the deferment period, i.e., recording a lien against the property. Council Member Moore agreed. Mayor Zabel requested a list of active deferments as well as a communication to property owners about the City’s intent to place a lien on the property for the deferred assessment. Ms. Volkers suggested updating City Policy FR-010 to reflect this process. WORKSHOP MINUTES SEPTEMBER 23, 2025 PAGE FOUR Council Member Morcomb brought up the subjectivity language in Section 11.3. It was requested that staff consult with Legal counsel on how this language is currently written and whether any changes are needed. Council Member Morcomb was comfortable waiving interest and removing it from the policy altogether. Mayor Zabel suggested adding a definition for ‘total disability’ found in Section 11.1. The Council was in agreement to revise the language in Section 11.4 to reflect that assessments will start bearing interest ten years after the original deferral. Ms. Volkers will ask Legal counsel if this application of interest can be applied on past active deferments. Mayor Zabel inquired whether a proof of hardship should be required each year to maintain the deferral. Before making a decision about this suggestion, the Council requested a list of active deferments. Regarding the two parcels that meet the deferral requirements for City Project R2025-01, Council agreed to waive interest for ten years. Ms. Volkers offered to look into the possibility of charging an administrative fee for each approved assessment deferral. ZONING ORDINANCE FOLLOW UP AMENDMENTS Mr. Gitzlaff indicated that this item is a follow-up from a previous Workshop in which Council gave staff direction to update the R-2 Low Density Residential District to remove townhomes and courtyard cottage developments. Staff also provided a list of other recommended changes. Mr. Gitzlaff confirmed that in order to update the Zoning Code a public hearing is needed at a Planning Commission meeting prior to Council approval. Mayor Zabel questioned the need for a “Site Grading Agreement” for standalone grading work as there are seemingly tools in place in the City Code and Fee Schedule to address staff’s concerns. City Planner Luke McClanahan explained that this agreement would outline the City’s expectations and give the City leverage if an issue does arise. Mr. Gitzlaff added that it strengthens the aforementioned tools and adds an extra layer of City control. The Council was supportive of removing townhomes and courtyard cottage developments from the R-2 zoning district. In response to Mayor Zabel’s question about the logic behind adding Light Manufacturing as an accessory use in the B-2 Business Campus zoning district, Mr. McClanahan stated that the current site zoned as B-2 is intended for an integration of uses. Mr. Lohse added that if Light Manufacturing was a principal use in this zoning district then only a plat approval and a site WORKSHOP MINUTES SEPTEMBER 23, 2025 PAGE FIVE plan approval would be needed in order to build all Light Manufacturing buildings on this current site. A distinction was made between Light Industrial and Warehouse as they are categorized differently within the B-2 zoning district. Mr. Gitzlaff offered that a warehouse likely has more loading docks with less employees on-site whereas Light Industrial has fewer loading docks and more employees working on-site assembling products, for example. Mr. Gitzlaff brought up the possibility of working with a developer to create a master plan (planned unit development) for the current B-2 site. Next steps include bringing maps of the current B-2 zoning district and photos of building examples (Light Industrial versus Warehouse) back to Council Workshop for a continued discussion. RECRUITER FOR CITY ADMINISTRATOR SEARCH Mayor Zabel began by bringing up past search processes and asked the Council to provide feedback on the desired process to find the next City Administrator. The Council collectively determined that a candidate meet-and-greet with the public should not be part of the process. There was agreement that the chosen firm and/or lead recruiter have a tie to Minnesota. Council Member Moore pointed out that the chosen firm must spend enough time with staff to determine what they need in their next leader. She was also open to going through a mock Council meeting prep call with the chosen candidates. Regarding the primary internal staff contact who will liaise with the chosen firm during the process, a determination will be made after the firm is selected. Mayor Zabel brought up the timeline and how the holidays may extend the process to 16-18 weeks. Next steps include each Council Member bringing their top three firm selections to the October 14, 2025 Workshop. Council Member Severson noted that how each firm performs their search should be taken into consideration. WORKSHOP RECESSED FOR THE REGULAR CITY COUNCIL MEETING AT 6:48 PM WORKSHOP RECONVENED AT 7:30 PM AFTER THE REGULAR CITY COUNCIL MEETING ADMINISTRATOR UPDATE WORKSHOP MINUTES SEPTEMBER 23, 2025 PAGE SIX Ms. Volkers brought up the future of the Oak Marsh Golf Course and Event Center which is privately owned and operated on City property via a land lease. The Council requested more information about the current lease terms and any potential interested parties prior to making any decisions about the future of the golf course. Ms. Volkers inquired about the Council’s interest in a strategic planning session to update and refresh Council policy for 2026-2027. The Council was supportive of a high-level session with Ms. Volkers and the consultant, and then a deeper dive session with the consultant and the Executive Team. Ms. Volkers will send meeting options to get the high-level session scheduled in October. COUNCIL TOPICS The Council discussed the City Council vacancy and next steps in the appointment process. Council Member Moore inquired about the implications of developers calling Council Members directly. Mayor Zabel explained that past Council bodies have decided not to engage with parties who have a pending or active application that will come before the body for a decision. Council Member Severson asked to discuss workers’ compensation coverage for elected officials. Ms. Volkers noted that Legal counsel and the League of Minnesota Cities Insurance Trust are looking into which benefits elected officials may be eligible for and requested further discussion be held until the current claim is resolved. Mayor Zabel mentioned the upcoming Independent School District 622 Special Election and what/how Council Members are allowed to share on social media. Related to annually certifying delinquent utilities, Mayor Zabel posed a question about changing the current charged interest rate. The Council agreed to use the same special assessment language and apply it to the certification of delinquent utilities. Ms. Volkers offered to send additional information about compounding interest in preparation for a continued discussion at a future Workshop. Council Member Severson suggested a communication from the City letting the affected residents know of the interest change, if applicable. Mayor Zabel shared that he has received positive resident feedback about the City Hall remodel design that was featured in the most recent edition of the Oakdale Update. ADJOURNMENT The Workshop was adjourned at 8:10 PM. Respectfully submitted, Sara Ludwig, City Clerk