City Council Workshop

AGENDA City Council Workshop Meeting October 14, 2025 Hadley Conference Room 5:00 PM 5:00 PM Oakdale Summerfest Community Organization (OSCO) Debrief with Council about Summerfest 2025 (No attachment – verbal discussion only) 5:30 PM Metropolitan Council Population Forecasts 5:55 PM Zoning Ordinance Follow Up Amendments – B-2 Zoning District 6:10 PM Proposed Parking Time Restrictions in Helmo Station 6:25 PM City Council Vacancy Appointment Status Update 6:35 PM Recruiter for City Administrator Search 6:55 PM Recess or Adjourn Continue after Recess, if needed City Administrator Transition Administrator Update Council Topics  COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Andrew Gitzlaff, Community Development Director and Brian Bachmeier, City Engineer Date: October 14, 2025 Subject: Metropolitan Council Population Forecasts BACKGROUND On September 24, 2025, the Metropolitan Council released System Statements for the 2050 Comprehensive Plan process. System Statements explain the implications of metropolitan system plans (transportation, sewer, and parks) for each community in the region. They are intended to help communities update their Comprehensive Plan, as required by the Metropolitan Land Planning Act within three years (end of 2028) after receiving a System Statement issued in conjunction with the decennial review. Initial City Review Staff has completed an initial review of the System Statement for Oakdale. One area of concern, as shown in the chart below, is that forecasted households have been frozen between 2040 and 2050 which results in a net population decrease from the 2040 Adopted Comprehensive Plan to the 2050 System Statement of -3.89%. 2040 Adopted Comp Plan 2050 System Statement % Change in % Change in Households Population Households Population Households Population 14,900 36,000 14,900 34,600 0.00% -3.89% One other noteworthy amendment is a lower target of affordable housing units to be created (268 units in 2050; 791 in the last cycle). These areas of concern are explained further below. Metropolitan Council Coordination Based on previous correspondence with the Metropolitan Council forecasting staff, household growth was frozen due to impacts from the White Bear Lakeshed Court Decision. All of the communities within the affected area have had their total households either kept flat or decreased. The statement below was received via email from Forecasting Staff on June 18, 2024: As said in February, we can assure Oakdale the 2040 timepoint forecast for the next regional plan (Imagine 2050) will be 36,000 population and 14,900 households in 2040 – the forecast in the Comp Plan. I understand from your Feb. 13 and May 31 emails the City would like a higher forecast, beyond 36,000 population and 14,900 households, for year 2050. At this time, Met Council is not proposing increases beyond the current 2040 forecasts for local jurisdictions affected by the White Bear Lakeshed court decision. This is a policy-related, post-model decision; the forecast model process is not the issue. Met Council uses the local forecasts as a basis and benchmark for regional systems planning and deployment (MN Statutes 473.146); the local forecasts are a Met Council commitment to serve the 1  forecasted population levels with wastewater capacity, transportation plans, and transit service. This being the case, the Council is withholding its consent of additional growth in local jurisdictions affected by the White Bear Lakeshed Court decision until the Council is assured additional growth does not conflict with Court orders that cities must abide. During May and June, I have met with managers and directors here to discuss what conditions would satisfy Met Council. Regional plans remain a work-in-progress. We are recommending: If affected White Bear Lakeshed cities want a higher forecast than already authorized, then affected cities would submit a water supply plan (current or updated) that demonstrates water supply source transition and/or projected groundwater withdraws abiding by the Court-determined groundwater use requirements and abiding by current groundwater appropriations from DNR. (Or: an alternative possibility is that the Court decision is superseded or removed.) There are still implementation details to work out, re: the off-cycle review of water supply plans with forecast adjustment requests. I hope to know more by August – after which we would be ready to meet to discuss the forecast and Oakdale’s water supply plan. This is not the last word on forecasts, but reflects a hold for now as other activity is underway. The proposed local forecasts set (version 2) should be ready and published in mid-August; opportunity for comments will follow. Later, the city may request forecast adjustments as part of the local comprehensive planning process which is scheduled to commence at the end of 2025 with the Council’s issuance of System Statements. We will include additional information at that time around how to request changes in forecasts as part of the comprehensive planning process. We also expect to know more about potential water supply limitations and solutions as the White Bear Lake Area Comprehensive Plan Work Group completes its work over the coming years. City Concerns with Forecasts The withholding of consent (as noted above) is based on flawed data. The White Bear Lakeshed Court Decision limits Oakdale’s water use to the existing DNR Appropriation permit which is for 1,210 million gallons/year. The April 2025 Oakdale Water System Study, commissioned by the City and completed by Bolton & Menk, confirmed that there is adequate capacity within the existing appropriation permit to support up to a 39,000 population based on current per capita consumption rates. At a population of 40,000, annual consumption is projected to be 1,241 million gallons/year. The results of the Water System Study were presented to Council at the May 13, 2025 Council workshop. Community Development staff shared these results with Metropolitan Council after the workshop. These findings reflect an overall trend in decreased water use per person, and as the City develops at higher densities, water use per person is projected to continue to go down. Given the current development to date, available land in Oakdale for development and redevelopment, staff knowledge of the local housing market, and housing need and demand as documented in the recently completed housing study, staff has significant concerns that the Metropolitan Council is under- forecasting growth in Oakdale. Staff has prepared its own estimate that shows completed, under construction, and proposed development projected likely to occur between 2020 and 2035, as well as additional project sites identified in Comprehensive Plans and possible infill opportunity likely to be completed in the longer term (2035-2050). A more detailed version of the chart below will be sent out under separate cover. 2  City versus Metropolitan Council projections (2050) Households Expected Units (City), 4,962 Units 2020-2050: (Adjusted for Occupancy) Projected Number of 16,209 Households Households in 2050 (City): Projected Number of 14,900 Households Households in 2050 (Metropolitan Council): Difference: 1309 Households Percent Change: -8.08% Population Population Total Population 37,812 in 2050 (City): Projected Total Population 34,600 in 2050 (Metropolitan Council): Difference: 3,212 Residents Percent Change: -8.49% Importance of Accurate Forecasts It is critical for the City to have accurate forecasts. Under-projecting could lead to infrastructure such as regional wastewater and City water supply being inadequate to meet growth needs, resulting in expensive retrofits in the future which may become cost-prohibitive and stifle economic growth. If there is less forecasted growth, it will make the City less competitive for grants for regional projects such as roadways, transit, trails, and parks. Future regulatory challenges may also arise. If the City’s growth exceeds what is in the Plan, it could result in the need for future Comprehensive Plan amendments or other approvals needed from Met Council in order to proceed, which adds uncertainty and loss of local control to the development and redevelopment process. Additionally, artificially constrained growth in the seven impacted cities results in much of the East Metro’s growth being allocated elsewhere in the metro, creating disparities in regional public infrastructure investments as well as reducing private investment and economic development. Drinking Water Settlement Grant Program Implications City staff intend to submit a grant request to the Co-Trustees for the design of the water treatment facility for a maximum daily water demand of 7.65 million gallons per day, capable of supporting a population up to 40,000, consistent with the April 2025 Water System Study. Serving 40,000 is the next incremental step in treatment plant sizing from serving 36,000 people, which is accomplished by adding one more well and two additional filters. The current position of the Co-Trustees is to finance treatment improvements consistent with 2040 water demand and population projections reflected in the current Comprehensive Plan. Any population and water demand projections beyond 2040 used for treatment plant capacity design will likely require local funding. The City’s current Comprehensive Plan reflects a population of 36,000 and a maximum daily water demand of 6.89 million gallons per day. The April 2025 Water System Study evaluated a 2045 population of 40,000 with a maximum daily water demand of 7.65 million gallons per day, or 11% more 3 than the current 2040 Comprehensive Plan population and water demand. The Water System Study estimated the cost of the plant at $35,000,000. If the Co-Trustees cap their contribution at the 2040 Comprehensive Plan projections, then $31,500,000 would be covered by the Drinking Water Settlement fund, and the gap would be approximately $3,500,000. Staff will update Council once feedback is received from the Co-Trustees on the grant application. NEXT STEPS In the System Statement, the Metropolitan Council has laid out a Dispute Process that includes reaching out to the City’s sector Representative to review and discuss potential issues and concerns. Staff has taken this step and requested a meeting. Under State Statute, the City may also request a hearing if it is unable to resolve disagreements over the content of a System Statement; the unit or district may, by resolution, request that a hearing be conducted by the Metropolitan Council’s Land Use Advisory Committee or by the State Office of Administrative Hearings to consider amendments to the System Statement. According to Minnesota Statutes Section 473.857, the request shall be made by the local governmental unit by resolution within 60 days after receiving the System Statement. If the Metropolitan Council does not receive a hearing request within 60 days, the statement becomes final. COUNCIL DIRECTION REQUESTED It is requested that the City Council provide support to City staff to move forward with the dispute process and prepare a resolution for Council consideration to request an Administrative Hearing to challenge the System Statement population and household forecasts. Furthermore, staff is seeking additional guidance from Council on the sizing of the water treatment plant if the Co-Trustees do not approve funding for the upsizing. 4  COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Luke McClanahan, City Planner Max Lohse, Community Development Specialist Date: October 14, 2025 Subject: Zoning Ordinance Follow Up Amendments – B-2 Zoning District BACKGROUND At the September 23, 2025 City Council workshop, City staff and the City Council discussed potential updates to the City’s Zoning Ordinance. Based on feedback received from Council at the workshop, staff will prepare an ordinance amendment to cover the following items. • Remove townhomes and courtyard cottages from the R-2 Low Density Residential District. • Add language back in that did not get migrated over in the recent Code update, including requiring Conditional Use Permits for electronic signage in non-residential zoning districts and listing out specific review criteria for oversized accessory structures/second garages. • Specify accessory structure setback requirements. • Correct a reference to the application review procedures. At the workshop, City staff also sought additional guidance from the City Council on the appropriateness of amending the Zoning Ordinance to allow for light manufacturing as an accessory use in the B-2 Business Campus zoning district. Due to time constraints, the City Council requested the conversation be continued at a future workshop and requested example images be provided of light manufacturing and warehousing – the latter is an allowed accessory use in the B-2 district. Examples are included as an attachment to this memo. Light manufacturing tends to employ more people on site due to the nature of its operations (i.e., product assembly) in comparison to warehousing. Given the high visibility of the City’s three B-2 zoned properties, and the limited availability of developable real estate in Oakdale, staff’s recommendation is to consider adding light manufacturing as an accessory use, but not as a principle use, in the B-2 zoning district. COUNCIL DIRECTION REQUESTED It is requested that the City Council provide feedback on whether or not to amend the Zoning Ordinance to allow light manufacturing as an accessory use in the B-2 zoning district, prior to City staff and the City Attorney’s Office preparing an ordinance text amendment. Attachments Example Images of Light Manufacturing and Warehousing Gateway Concept Plan Map of B-2 Zoned Properties Atlas Manufacturing, 2950 Weeks Ave SE, Minneapolis (Manufacturing) 1 Tech Logic, 835 Hale Ave N, Oakdale (Manufacturing) 2 Park Tool, 5115 Hadley Ave N, Oakdale (Manufacturing) 3 Amazon Delivery Station, 3130 Lexington Ave S, Eagan (Warehouse) 4 UPS Warehouse Facility, 555 Opperman Dr, Eagan (Warehouse) 5 Murphy Logistics, 807 Hampden Ave W, St Paul (Warehouse) 6 CONCEPT C Potential Future Infill BRT Station Stormwater Office Light Light Industrial* Industrial* Office Open Residential Space Light Residential Industrial* Stormwater Existing Stormwater Wetland Boardwalk Opportunity Stormwater Office Existing Apostolic Bible Institute Office OAKDALE GATEWAY SITE CONCEPT DESIGN ALTERNATIVES PAGE 4 *Permitted principle light industrial uses in the B-2 zoning district currently include brewery, winery, distillery, meadery, microbrewery and microdistillery. Warehousing and laboratory are allowed as accessory uses, provided they are incidental to a permitted principle use.  COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Max Lohse, Community Development Specialist Date: October 14, 2025 Subject: Proposed Parking Time Restrictions in Helmo Station BACKGROUND In 2024, Norhart Apartments Oakdale and its associated mixed-use commercial tenant, Ember and Bean, opened in the Helmo Station Planned Unit Development (PUD). As building occupancy has increased, street parking in the Helmo Station area has become increasingly constrained. Norhart charges residents a fee for both underground and surface parking, which has led to many residents utilizing on-street parking to avoid these costs. As a result, the City has received numerous complaints from both residents and business owners regarding a lack of available street parking for customers. While Norhart provides underground parking for customers, wayfinding signage is limited, and the building now charges for stays that exceed one hour. With Mana Brewing opening in the near future, the street parking will likely become more constrained. To increase available street parking, staff is proposing that parking on Helmo Avenue between 2nd St N and 3rd St N be limited to two hours. A minor ordinance amendment to Chapter 12 – Motor Vehicles and Traffic (attached), is required to implement this restriction. While this amendment only proposes restrictions on Helmo Ave N, additional restrictions may be necessary as occupancy increases, Enclave is developed, and the new City park opens. Staff will continue to monitor parking utilization at Helmo Station. There are currently no public streets in Oakdale with limited-time parking restrictions. The closest equivalent is time restrictions near school zones. To ensure that parking time restrictions do not create an administrative burden, Community Development staff met with the Police Department regarding enforcement. Police staff indicated they are comfortable with parking time restrictions so long as enforcement is conducted on a complaint basis. Staff has received written feedback from Norhart, Ember and Bean, and Mana Brewing in support of parking restrictions in the Helmo Station area. Opinions differed on the appropriate length of time to be permitted, with some parties preferring a shorter duration (e.g., 15 or 30-minute parking). Staff finds that a two-hour parking limit would best balance flexibility for commercial uses while discouraging long-term resident parking. COUNCIL DIRECTION REQUESTED It is requested that the City Council provide direction on the suitability of establishing parking time restrictions along Helmo Ave N. Additionally, it is requested that the City Council provide feedback on the proposed amendment to the City of Oakdale Code of Ordinances, Chapter 12, Article 3, Sec. 12-19. Attachment Proposed Amendment to the City of Oakdale Code of Ordinances, Chapter 12, Article 3, Sec. 12-19  CITY OF OAKDALE ORDINANCE NO. XXX AMENDING THE CODE OF ORDINANCES FOR THE CITY OF OAKDALE, CHAPTER 12, ARTICLE 3 “ON STREET AND WINTER PARKING” RELATING TO REGULATION OF TEMPORARY PARKING The City Council of the City of Oakdale ordains: Section 1. The City of Oakdale Code of Ordinances, Chapter 12, Article 3, Section 12- 19, is amended to read as follows: Sec. 12-19 PARKING RESTRICTIONS. (a) No Parking. No vehicles shall be allowed to park along the designated portions of the city streets described herein: 6 th Street from Grafton Avenue to Granada Avenue, both sides - During School Hours 7 th Street from Grafton Avenue to Guthrie Avenue, south side - During School Hours 7 th Street from Highway 120 to Hadley Avenue, north side 7 th Street from Guthrie Avenue to Hadley Avenue 8 Street from Greenway Avenue to Guthrie Avenue, both sides - During School Hours th 8 th Street Lane, both sides - During School Hours 10 th Street from TH 120 to I-694, both sides 10 Street from I-694 to eastern city limits, north side th 12 th Street from Gentry Avenue to Goodview Avenue, both sides 12 th Street from TH 120 to Gershwin Avenue, south side 12 Street, from Helmo Avenue to 360 feet to the east on the north side and 60 feet th to the east on the south side 15 Street from TH 120 to eastern city limits, north side th 15 th Street from T.H. 120 to east city limits, south side within 600 feet, east and west of Hadley Avenue 15 th Street, 200 feet west of Gershwin Avenue, south side 22 nd Street from Hadley Avenue to 1,000 feet to the west, north side 40 th Street from Gresham Avenue to Hadley Avenue, south side 40 th Street from Gresham Avenue to Ideal Avenue, south side 40 Street, 450 feet east of TH 120 to 630 feet east of TH 120 and from 860 feet th east of TH 120 to 1,040 feet east of TH 120, north side 45 th Street from TH 120 to Glenbrook Avenue, north side 48 Street from T.H. 120 to Gershwin Avenue, north and south sides th 50 th Street from Georgia Boulevard to 700' east of Granada Avenue, north side 50 th Street, from Hadley Avenue to the I-694 bridge, south side 55 Street from Hadley Avenue to 450 feet to the east, north, and south sides th Georgia Boulevard from TH 120 to 50 th Street, north side Grafton Avenue from 6 th Street to 7 th Street, both sides - During School Hours Granada Avenue from 5 th Street to 7 th Street, both sides - During School Hours Granada Avenue from Stillwater Boulevard to TH No. 5, west side 1  Granada Avenue from TH 5 to 50 th Street, west side Grange Avenue from 5 th Street to 7 th Street, both sides - During School Hours Granite Avenue from 5 th Street to 7 th Street, both sides - During School Hours Greene Avenue from Greenway Avenue to 7 th Street, both sides - During School Hours Greenway Avenue from Hudson Boulevard to 7 th Street, west side Greenway Avenue from Upper 5 th Street to 7 th Street, east side - During School Hours Greenway Avenue from 7 th Street to 10 th Street, both sides Grenadier Way from Grenadier Avenue to the east, south side Gresham Avenue from Gresham Court to 40 th Street, east side Grospoint Avenue between 15 th Street and Greystone Avenue, east side Grospoint Avenue from Hadley Avenue to 400 feet south of 24 th Street, north/east sides Guthrie Avenue from 7 th Street to 8 th Street, both sides - During School Hours Hadley Avenue from Hudson Boulevard to 4 th Street, both sides Hadley Avenue from 4 th Street to 10 th Street, both sides Hadley Avenue from TH 120 to TH 36 Hudson Boulevard from 10 th Street to 11 th Street, both sides Hadley Avenue from 11 th Street to 700 feet north of 15 th Street, both sides Hadley Avenue from the Railroad Tracks to Upper 35 th Street, both sides Hadley Avenue from Upper 35 th Street to Upper 36 th Street, east side Hadley Avenue, 1,110 feet south of Trunk Highway 36 to Trunk Highway 36, both sides Helmo Avenue from 2 nd Street to 3 rd Street – 2 hour parking only Helmo Avenue from 4 th Street to 10 th Street, both sides Helmo Avenue from 10 th Street to 12 th Street, both sides Helmo Avenue from 12 th Street to 15 th Street, both sides Helmo Avenue from 15 th Street to Stillwater Boulevard, east side Helmo Avenue to 400 feet south of Stillwater Boulevard, west side Heron Avenue from 10 th Street to 100' south of 10 th Street, both sides Hudson Boulevard, westerly city limits to Hadley Avenue, both sides Ideal Avenue from TH No. 5 to 36 th Street, west side Ideal Avenue from Hidden Bay Trail in Lake Elmo to 44 th Street, west side Ideal Avenue from Stillwater Boulevard to TH No. 5, west side Olson Lake Trail from 44 th Street to 50 th Street, west side Stillwater Boulevard from Hadley Avenue to I-694, north side Upper 33 rd Street, east of Hadley Avenue, both sides Upper 35 th Street from Grenadier Avenue to Grovner Avenue, north side (b) Postal Delivery Boxes. No person shall stop, stand, or park a vehicle, except when necessary to avoid conflicts with other traffic or in compliance with the directions of a police officer or traffic-control device, within ten (10) feet of any type of postal delivery box. This section shall be in effect Monday through Saturday between the hours of 8:00 AM and 6:00 PM. The exception to the identified day and time restrictions shall be those days when the normal delivery of mail is suspended (Federal holidays, etc.). The intent of this section is to allow for the unobstructed delivery of mail by the U.S. Postal Service. 2 Section 2. Incorporation. City staff is authorized and directed to update the table of contents, reformat this ordinance, and to make such other non-substantive changes as are necessary to incorporate the amendments adopted by this ordinance into the Oakdale city code. Section 3. Effective Date. This ordinance shall take effect and be in full force from and after its adoption and publication, as provided by law. Voting For: Mayor Zabel, Council Members Moore, Morcomb, and Severson; Voting Against: None. Adopted this ___ day of ________, 2025 by the Oakdale City Council. _____________________________________ Kevin Zabel, Mayor Attest: ______________________________________ Sara Ludwig City Clerk Posted: Published: 3  COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Christina M. Volkers, City Administrator Date: October 14, 2025 Subject: City Council Vacancy Appointment Status Update BACKGROUND On May 16, 2025, Council Member Willenbring submitted her resignation from the Council effective on June 6, 2025. The current term for Council Member Willenbring’s seat expires on January 4, 2027. The League of Minnesota Cities and State law provide guidelines for handling resignations from the City Council. The Council is required to accept the resignation by resolution and it is suggested where the elected official chooses to resign, that the Council declare that a vacancy exists in the remainder of Council Member Willenbring’s term. When less than two years is remaining in the term, the City Council must appoint an eligible person to fill the vacancy for the balance of the term. The City Council may use various methods to fill a vacancy, but the appointment process can only start after a vacancy has been declared by action of the Council. At the May 27, 2025 regular City Council meeting, the Council accepted the resignation of Council Member Willenbring and declared a vacancy on the City Council to be filled by appointment. The individual appointed to fill the vacancy would take office immediately upon approval by the City Council and serve the remainder of Council Member Willenbring’s current term. The application period was open mid-June, and remained open for over two weeks. Thirteen applications were received and all applicants were interviewed at the July 29, 2025 Special Workshop. From those interviews, four applicants were selected to be interviewed a second time at the August 13, 2025 Special Workshop. At the August 26, 2025, September 9, 2025, and September 23, 2025 Workshops, the Council continued to discuss the next steps in the City Council vacancy appointment process. COUNCIL DIRECTION REQUESTED Staff is seeking direction on the next step in the City Council vacancy appointment process.  COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Christina M. Volkers, City Administrator Date: October 14, 2025 Subject: Recruiter for City Administrator Search BACKGROUND In March 2025, City Administrator Chris Volkers shared with the Council her intent to retire sometime in the first quarter, 2026. In June 2025, Ms. Volkers proposed an interview with one executive recruiter after receiving two proposals for executive recruitment services. The City Council asked Ms. Volkers to cast a wider net and seek proposals from a large number of recruiters for Council’s future consideration. Ms. Volkers subsequently solicited interest from 24 municipal recruiting firms. Several firms have recently either gone out of business or stopped doing executive recruitment. Many firms replied that they were at capacity with recruitments and thus were unable to possibly take on a search for the next City Administrator. Ten firms replied and submitted thorough proposals to include biographies of proposed recruiters, recent similar city or county administrator recruitments, recent executive recruitments in Minnesota or surrounding states, proposed steps and timeline for Oakdale’s recruitment process, and the firms proposed fee for executive recruitment services in Oakdale. The packet of all responses and rating sheets were sent to Council for review on September 16, 2025. At the September 23, 2025 Workshop, the Council agreed to review all ten proposals and bring back their top three firm selections to the October 14, 2025 Workshop. COUNCIL DIRECTION REQUESTED Council should discuss and collectively decide which firms they would like to interview as a next step, or agree on an alternative next step(s) in the recruitment process for Oakdale’s next City Administrator.  COUNCIL MEMORANDUM To: Honorable Mayor and City Council From: Christina M. Volkers, City Administrator Date: October 14, 2025 Subject: City Administrator Transition BACKGROUND In March 2025, City Administrator Chris Volkers shared with the Council her intent to retire sometime in the first quarter, 2026. The City Administrator and City Council will need to work together on a plan for this transition in the City Administrator position. More information will be coming from the City’s labor attorney. COUNCIL DIRECTION REQUESTED It is requested that the Council discuss plans for a smooth transition in the City Administrator position.