City Council

Minutes Woodbury City Council Wednesday, October 25, 2023 Pursuant to the due call and notice thereof, a regular meeting was duly held virtually and at the Woodbury City Hall, 8301 Valley Creek Road, on the 25th day of October 2023. Call to Order Mayor Anne Burt called the meeting to order at 7:00 p.m. Mayor Burt welcomed those listening and attending. She said members of the public may attend the meeting but will be required to comply with social distancing parameters as determined by the City. Members of the public may also join the meeting using a PC, Mac, iPad, iPhone or Android device. Public comments will be accepted during the meeting both in person and by using the link to the virtual meeting to join the meeting and then submit your questions via the online Q&A feature within the meeting. Questions regarding the meeting will also be taken between the hours of 8:00 a.m. to 4:30 p.m. via email council@woodburymn.gov or call 651-714-3524 and leaving a voicemail message. Pledge to Flag Audience, staff, and Council pledged allegiance to the flag of the United States of America. Roll Call Upon roll call the following were present: Mayor Anne Burt, Councilmembers: Kim Wilson, Andrea Date, Steve Morris, and Jennifer Santini. Absent: None Others Present: Kimberlee K. Blaeser, City Clerk; Kevin Sandstrom, City Attorney; Clinton Gridley, City Administrator; Jennifer Payne, Engineering Project Manager; Chris Hartzell, Engineering Director and Tony Kutzke, Assistant Engineering Director / City Engineer. Special Order of Business No items scheduled Open Forum The Open Forum is a portion of the Council meeting where a maximum of three persons will be allowed to address the Council on subjects, which are not a part of the meeting agenda. Persons wishing to speak must complete a sign-up sheet prior to the start of the meeting. Give the sign-up sheet to any staff person. Speakers are limited to two minutes each. The Council will listen attentively to comments but, in most instances, will not respond at the meeting. Typically, replies to the concerns expressed will be made via letter or phone call within a week. Consent Agenda All items listed under the consent agenda are considered to be routine by the City Council and will be enacted by one motion and an affirmative vote by roll call of a majority of the members present. There will be no separate discussion of these items unless a Councilmember or citizen so requests, in which event, the items will be removed from the consent agenda and considered a separate subject of discussion by the Council. Item A Approval of Council Minutes – September 27, 2023 Item B Approval of Council Minutes – October 11, 2023 Item C To adopt a motion authorizing transmittal of the attached draft comment letter to Washington County regarding their Draft Capital Improvement Plan 2024-2028. Item D To adopt the following resolution Resolution 23-172 Resolution of the City of Woodbury, Washington County, Minnesota accepting grant funds in the amount of $32,500 from the Minnesota Department of Commerce, approving the agreement, and the appropriate budget amendment.  City Council Meeting Minutes Wednesday, October 25, 2023 Item E Approving Special Laws 2023 Relating to Allowing City of Woodbury to Impose a Local Option Sales Tax to Fund Capital Improvements. This item was removed from the Consent Agenda and moved to the Discussion portion of the meeting. Item F 1. To adopt the following resolution Resolution 23-174 Resolution of the City of Woodbury, Washington County, Minnesota amending the City contribution toward the employee group medical insurance program. 2. To adopt the following resolution Resolution 23-175 Resolution of the City of Woodbury, Washington County, Minnesota authorizing the City to self-fund dental insurance benefits, hiring HealthPartners as the administrative service organization and maintaining the City contribution toward the Employee Group Dental Insurance Program. 3. To adopt the following resolution Resolution 23-176 Resolution of the City of Woodbury, Washington County, Minnesota authorizing the purchase of employee assistance services from Sand Creek EAP. 4. To adopt the following resolution Resolution 23-177 Resolution of the City of Woodbury, Washington County, Minnesota authorizing the purchase of life and long-term disability insurance from Symetra. 5. To adopt the following resolution Resolution 23-178 Resolution of the City of Woodbury, Washington County, Minnesota authorizing the purchase of short term disability advice-to-pay administrative services from Symetra. 6. To adopt the following resolution Resolution 23-179 Resolution of the City of Woodbury, Washington County, Minnesota authorizing the offering of voluntary supplemental insurance from AFLAC and voluntary vision insurance from EyeMed Vision Care. Item G The abstract of bills includes payments made from the operating or project budgets for expenses of the city. The expenditures are from all funds of the city. Any purchased contracts requiring signature of the mayor and City Administrator is hereby approved. Staff recommends approval of the abstract of bills for October 6, 2023 in the amount of $2,829,953.32 and October 13, 2023 in the amount of $1,746,805.94. Councilmember Wilson noted that on page 10 of the September 27, 2023 minutes, she did not withdraw her amendment but it did not receive a second. She explained that the changes will already be made. Councilmember Santini moved, seconded by Councilmember Morris, to approve the Consent Agenda items with the exception of item 6E. Voting via voice: Kim Wilson – aye Andrea Date – aye Steve Morris – aye Jennifer Santini – aye Anne Burt – aye Public Hearings A. Bielenberg Drive and Currell Boulevard Roadway Rehabilitation Project (Guider Drive to Valley Creek Road); Approve Preliminary Report; Order Project; Authorize Preparation of Plans and Specifications; Authorize Preparation, Acquisition and, if Necessary, Condemnation of Easements Mayor Burt declared the public hearing open. Page 2 of 6  City Council Meeting Minutes Wednesday, October 25, 2023 Engineering Project Manager Jennifer Payne stated the purpose of the meeting is to hold a public improvement hearing, approve the preliminary report, order project, order plans and specifications and to authorize preparation, acquisition and if necessary, condemnation of easements. The project was identified through the City’s Capital Improvement Plan and the project development process. The rehabilitation area under consideration is located in the northwest quarter of the City north of Valley Creek Road. The roads were selected due to poor pavement condition. Ms. Payne reviewed the public process to date and noted on June 14, 2023 a letter was sent with project information, on June 26, 2023 there was a neighborhood meeting, on April 12, 2023, the Council authorized the preparation of preliminary report and on October 11, 2023 a public improvement hearing date was set. Mayor Burt asked how many people attended the meeting or reached out for one on one discussion. Ms. Payne replied that 86 letters were sent out and 5 or 6 individuals attended the open house and 1 reach out for a one on one discussion. Ms. Payne explained the average pavement conditions index (PCI) of Bielenberg Drive is 32 and Currell Boulevard is 7 and is scored out of 100. The City’s goal for PCI ratings on non-residential roadways is 75. The recommended project scope for Bielenberg Drive includes pavement mill and overlay from Guider Drive to Valley Creek Road, spot curb replacement, modifications to the signal at the Bielenberg Drive and Currell Boulevard intersection to operate with vehicle detection cameras, minor spot utility repairs, trail construction and rehabilitation, and lighting and landscaping. A new trail segment is being proposed on Bielenberg Drive between Currell Boulevard and Guider Drive. Trail rehabilitation is proposed on the west side from Valley Creek Road to Currell Boulevard and on the east side from Valley Creek Road to Tamarack Road. Ms. Payne stated the recommended project scope for Currell Boulevard includes pavement replacement, full curb replacement, minor spot utility repairs, storm water quality improvements, trail construction and conversion of the 2-lane roadway to a 3-lane roadway. Currell Boulevard is currently a 44 foot wide roadway with a center line stripe. It is recommended to construct a 3-lane road section with the center two-way left turn lane and shoulders to improve safety and to be consistent with the City’s roadway corridor design principles. The proposed project scope for Guider Drive is for trail construction on the south side of the road between Queens Drive and Bielenberg Drive. Ms. Payne reviewed the estimated project costs with Sanitary Sewer and Watermain, Storm Sewer, storm water quality, street rehabilitation and trail rehabilitation with the estimated total of $3,102,988. The project is estimated to be funded through the MSA Roadway Construction Fund, Parks and Trail Replacement Fund, 1-94 tax abatement fund, storm water utility fund, water & sewer utility fund and assessments with a total of $3,102,088.20. Ms. Payne explained that special assessments are a charge imposed on properties for benefit of a certain improvement. It is a levy the City uses to finance or partially finance a certain public improvement. An assessment hearing would be held prior to the project award. There would be a 30-day no-interest payment period otherwise payments can be made over 15 years. The first payment would be due with the first half property tax payment in 2025. The interest rate would be determined prior to the assessment hearing and is based on a number of factors, including the City’s bond rating. She reviewed the estimated assessments with a total of $434,720 based on the lower amount of the benefit appraisal reports. The US postal service is exempt from special assessments. Mayor Burt asked how The Shoppes of Woodbury Villa was assessed. Ms. Payne replied that the assessor did not believe there was much value in such a small parcel. Mayor Burt asked if the parcel was a part of the parking lot. Ms. Payne replied that the property is adjacent to a commercial building. It could be a location for a monument. Ms. Payne stated the proposed tentative schedule would be to approve the preliminary report, hold the public improvement hearing, and order the project tonight, October 25, 2023, open the bids in February 2024, hold a neighborhood meeting regarding assessment in February/March 2024, hold an assessment hearing and award the contract in March 2024, and hold a neighborhood meeting regarding construction in April 2024. Construction would tentatively begin in summer 2024. If the public has any questions, please reach out to the engineering department and sign up for InTouch email notifications at woodburymn.gov/intouch. Dave Hoelzel, 10846 Birch Lane, stated the Planning Commission approved a grocery store at one of the parcels and asked if it was put into consideration when it comes to the three-lane striping and the assessment. He also asked if the person building the store was advised. Ms. Payne replied that the Wells Fargo redevelopment project is on hold currently and city staff have been communicating with Wells Fargo throughout the project. Mayor Burt moved, seconded by Councilmember Morris, to close the public hearing. Voting in Favor: Wilson, Date, Morris, Santini, Burt Absent: None Mayor Burt opened opportunity for discussion and questions from the Council. Page 3 of 6  City Council Meeting Minutes Wednesday, October 25, 2023 Councilmember Wilson noted that businesses on the west side of Bielenberg Drive do not have access to Bielenberg Drive and explained that it would go against the road rehabilitation policy to include them in a road assessment. Ms. Payne replied that the policy is commercial properties are assessed for frontage and it does not need to have driveway access. Councilmember Wilson asked when that policy was enacted. Engineering Director Chris Hartzell replied 2017 was the most recent significant update of the policy. City Engineer, Tony Kutzke indicated the policy related to the question of assessments to commercial properties had not changed with updates to the policy. Councilmember Morris asked if commercial and residential frontage were treated differently. Mayor Burt agreed. Councilmember Wilson asked if the trail would go all the way down to Tamarack Road for the project. Ms. Payne replied that it would be a part of the road rehabilitation project. She added that rehabilitated trails are not assessed but new trails are. Councilmember Morris asked how the new trail would be funded. Ms. Payne replied it would come from a mix of the MSA Roadway Construction fund, the I-94 tax abatement fund and partial assessments. Councilmember Wilson noted there was special funding from the Gold Line and asked if grants have been received relating to that. Ms. Payne replied that it was not being funded by grants. Mr. Hartzell added that the City applied during the last regional solicitation for trails connecting to the Gold Line but was not successful. Councilmember Wilson asked if the trail was currently 10 feet wide. Ms. Payne replied that it is close to 10 feet. Councilmember Wilson asked if a sidewalk would be placed on the west side of Bielenberg Drive. Ms. Payne replied that the Gold Line would be constructing a trail from Tamarack Road to Stephens Way and would not be constructing a trail from Stephens Way to Guider Drive. Councilmember Morris asked why it would be a trail and not a sidewalk. Ms. Payne replied that it is determined by the Comprehensive Plan. Councilmember Morris asked if this would qualify under the new roadway rehabilitation design principles. City Engineer Tony Kutzke replied that Currell Boulevard is considered a commercial roadway and would like people to be able to access those areas by foot or bike. A trail would better serve the community. Councilmember Morris asked if it was consistent with the roadway design principle. Mr. Kutzke replied that it was consistent. Councilmember Wilson asked if there was a trail on both sides. Mr. Kutzke replied that for this type of roadway, a second side could be considered but staff are recommending just one side. A part of the roadway is a pond or City owned property and would not need access to it. Councilmember Wilson asked if the trail would meet up with the other side. Mr. Hartzell replied that they would not meet up on the other side. Councilmember Santini asked if there was consideration in doing a crosswalk on the northeast side of Currell Boulevard across the post office. Mr. Hartzell replied that typically an enhanced pedestrian crosswalk when there is a chance of having about 20 pedestrians per hour. Anything less than that, they become overused and ineffective. Councilmember Wilson asked if the trail on Guider Drive is a part of the Gold Line project. Ms. Payne replied that the Gold Line would be installing the trail on the north side of Guider Drive and will be rehabilitating a portion of the trail on the south side. Councilmember Wilson noted that there are many missed trail segments. Mr. Kutzke explained that Staff were heavily involved in the Gold Line project and looked to make all of the trail connections. He noted there were sections where they were not successful due to an environmental document that was created for the Gold Line project where no additional work outside of the environmental document was able to be added. Mr. Hartzell added that if the project goes outside of the scope, it changes the federal funding formulas. Councilmember Wilson asked if it was the environmental document that prevented obtaining the trail connections. Mr. Kutzke replied that it was outside the area that the Gold Line had evaluated for environmental impacts and therefore could not add to the project once they completed their environmental process. Councilmember Morris moved, seconded by Councilmember Date, To adopt the following resolution Resolution 23-180 Resolution of the City of Woodbury, Washington County, Minnesota approving the preliminary report, ordering the project, authorizing preparation of plans and specifications and authorizing preparation, acquisition and, if necessary, condemnation of easements for the Bielenberg Drive and Currell Boulevard Roadway Rehabilitation Project (Guider Drive to Valley Creek Road). Councilmember Wilson explained that the resolution is all or nothing. She added that she does not agree with the assessment policy and that the Council has been told for years that it would be looked at and still has not been. She mentioned that she does not feel that any sort of commercial real estate that does not have access to the road should be assessed since it is not done that way with golf courses, schools, semi-public buildings or residents. Page 4 of 6  City Council Meeting Minutes Wednesday, October 25, 2023 Voting via voice: Kim Wilson – aye Andrea Date – aye Steve Morris – aye Jennifer Santini – aye Anne Burt – aye Discussion Consent Agenda Item E. Approving Special Laws 2023 Relating to Allowing City of Woodbury to Impose a Local Option Sales Tax to Fund Capital Improvements Mayor Burt explained that this item was recently discussed at the most recent Council workshop and that pulling the item was discussion is a good opportunity to share with the public what it is all about. City Administrator Clinton Gridley explained the public process. On January 25, 2023 the Council had a meeting which included authorization from the State Legislature to hold a sales tax referendum. In May 2023, the Minnesota Legislature approved the Woodbury referendum for local option sales tax. On June 21, 2023 the Council held a workshop to discuss the local option sales tax primer. On October 18, 2023 the Council held a workshop received general information regarding the local sales tax. Mr. Gridley explained that the original public safety building was built in 1975 as a municipal building and fire station. The base structure will be 50 years old at the time of the next remodel. It was remodeled in 1990 when it became a sole public safety building. It was again remodeled in 2000 and 2010 as the City grew. The next remodel is expected in 2025-2026. He noted that a large portion of the project is to move the fire section to the south side due to growing traffic on Radio Drive and Valley Creek Road. The County service building is closing down and will be shifted over to the Gold Line. The property will continue to be owned by the City and are in the process of negotiations with the County to assume the whole property and use it for the purposes of the project. Mr. Gridley reviewed the two funding sources of the regional revenue option through the local option sales tax and local funding option through City property taxes. Both of the options involve a general option debt. The project is expected to cost $50 million excluding the issuance cost. $2.5 million will be collected each year by a 0.5% sales tax. It would end either when the debt is retired or after 20 years. A study was conducted through the University of Minnesota extension and they found that for every dollar spent on sales tax, 46.6% of that comes from Woodbury residents and 53.4% come from non-residents. Mayor Burt added that there are many non-residents that come to Woodbury to shop and work. Mr. Gridley explained that through the sales tax, the average household would pay about $80 per year whereas funding through property tax would cost the median value home about $150 per year. He noted that the City will begin by educating the public on the “why” of the project. Then, Staff will connect with interested parties and community groups. Public Safety Staff will be public facing during the project. Councilmember Morris encouraged community members to look at the workshop packet to review the University of Minnesota extension study. Mr. Gridley added that the study shows that Woodbury is regional and is the east side business hub of different services. Councilmember Wilson noted she would like the numbers to be dialed in better. She wondered if the $150 per household for property tax was correct since it would be more than enough to cover the $2.5 million that the City was hoping to collect. She added that she would like to see the local sales tax go to the residents for the Central Park as opposed to something the community needs since Central Park is an amenity. She mentioned that the City is growing and that the project will take place whether or not the sales tax option is voted for. She added that it needs to be paid either way, but voters can decide how it is going to be paid. She asked that the numbers get dialed in more so that residents have a clear idea on what they are voting for. Councilmember Santini asked what would happen if more money was collected from sales tax in a year. Mr. Gridley explained that the debt would be paid off when the sales tax has covered the costs or after 20 years. The sales tax is only for the project and when the project ends then the tax ends as well. Mayor Burt asked what would happen if the project cost changed. Mr. Gridley replied that if the project cost was less than anticipated than the 20 year term would be lessen, and if the project cost was more than estimated than the City would have to make up the difference. Councilmember Wilson asked how the $50 million for the project was determined. Mr. Gridley replied that the City worked with the financial advisor and an internal team to determine. An architect has begun doing the evaluation of the public safety building. Page 5 of 6  City Council Meeting Minutes Wednesday, October 25, 2023 Councilmember Wilson asked to clarify that the City was only authorized to collect $50 million in sales tax. Mr. Gridley replied that the goal is to not exceed the $50 million. Councilmember Wilson asked if the project costs went over it would be a levy. Mr. Gridley explained that it would probably be using the property tax. Councilmember Morris moved, seconded by Councilmember Santini, To adopt the following resolution Resolution 23-173 Resolution of the City of Woodbury, Washington County, Minnesota approving Special Laws 2023, Regular Session, House File No. 1938, Sec. 50. relating to allowing the City of Woodbury to impose a local option sales tax of one-half of one percent, if approved by voters at the November 5, 2024 General Election, to pay for the capital costs of land and facility acquisition, construction demolition, rehabilitation and the associated interest and financing costs associated with the construction of a public safety campus. Mayor Burt noted that there is a large community engagement plan associated with the project. Councilmember Morris added that during the Council workshop, there was discussion about additional training for Council on what they can and cannot do regarding educating the public. Voting via voice: Kim Wilson – aye Andrea Date – aye Steve Morris – aye Jennifer Santini – aye Anne Burt – aye Transportation Report (2nd meeting of the month, May-October) No items scheduled City Administrator’s Report Mr. Gridley gave a verbal update of upcoming City meetings.  October 26, 2023 – Washington County Central Service Center, 6 p.m., Council Chambers  November 4, 2023 – Council Advisory Commission Annual Interview process and workshop, 9 a.m.-3 p.m., Ash North and South Conference Room and Birch Conference Room  November 6, 2023 – Planning Commission Meeting  November 8, 2023 – Public Hearing Mayor Burt mentioned that the New Resident Welcome meeting will be at M Health Fairview Sports Center on November 9, 2023 from 5-7:30 p.m. Adjournment Mayor Burt moved, seconded by Councilmember Morris, to adjourn the meeting at 8 p.m. Voting in Favor: Wilson, Date, Morris, Santini, Burt Absent: None Respectfully submitted, _________________________________________ Kimberlee K. Blaeser, City Clerk Approved by the Woodbury City Council on November 8, 2023. Page 6 of 6