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2015-08-24 Council Workshop SPRWSCITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Council Workshop Held Monday, August 24, 2015 Pursuant to due call and notice thereof, a workshop of the City Council, City of Mendota Heights, Minnesota was held immediately following the Special City Council Meeting at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. CALL TO ORDER Mayor Krebsbach called the meeting to order at 4:42 p.m. Councilmembers present included Duggan, Petschel, and Povolny. Councilmember Norton arrived at 5:00 p.m. Also in attendance: City Administrator McNeill, Public Works Director John Mazzitello, Finance Director Kristen Schabacker, City Clerk Lorri Smith, General Manager Steve Schneider from St. Paul Regional Water and Matt Anfang, Chairman of the Board of Commissioners for St. Paul Regional Water Service. ST. PAUL REGIONAL WATER CONTRACT DISCUSSION Public Works Director John Mazzitello provided an overview of existing contractual agreement with St. Paul Regional Water Service. The agreement expires in December 2015. Under the current agreement, the City of Mendota Heights owns the distribution system and is responsible for all routine maintenance, rehabilitation, and replacement of the system components. St. Paul Regional Water supplies the water and is responsible for all emergency repairs, inspection or completion of new or replacement projects, and conducts all billing for the utility. Because of this, St. Paul Regional Water charges Mendota Heights residents a rate 20% higher than their base rate for other municipal customers. Additionally, the City of Mendota Heights charges a 10% surcharge to all water utility customers to gain revenue for the Water Utility Fund which is used to fund maintenance activities as well as rehabilitation and replacement projects. St. Paul Regional Water presented the Council with a revised proposed contract, showing updates made based on the Council's comments from the June 29, 2015 Workshop meeting. Mayor Krebsbach asked for a proposed timeline. Mr. Schneider stated that if the Council approves the agreement to convey the system to St. Paul Regional Water, then that contract would be presented to the Board of Commissioners of St. Paul Regional Water System for their approval. If this contract is not approved by the Mendota Heights City Council, then an extension of the current contract could be discussed. The Councilmembers discussed how the city could take back the system in the future if they desire to do that, the age of the water pipes throughout the city and which ones get replaced first, the capacity of the St. Paul Regional Water System's facility, and whether the water distribution system is an asset or a liability for the City. Mayor Krebsbach requested additional information for the next meeting, including a chart of the water mains in the city and the repair cycle of the mains and the financial statements for St. Paul Regional Water System. It was noted that St. Paul Regional Water has a AAA bond rating with Standard and Poor's. FIRE STATION FEASIBILITY AND PROGRAMMING STUDY Staff in attendance: City Administrator McNeill, Assistant to the City Administrator/HR Coordinator Tamara Schutta, Finance Director Kristen Schabacker, Fire Chief John Maczko, City Clerk Lorri Smith, Randy Engel and Modris Feders, representing Buetow 2 Architects. Fire Chief Maczko presented an overview of fire station feasibility study that was completed by Buetow 2 Architects. Randy Engel then gave a presentation of their findings of need. He presented four proposed action plans. Three of the plans would retain the existing fire station building. One plan would replace the existing building. The first plan presented is the lowest in cost and includes only the minimums to be done. It would include repairs and replacements to the existing 25,500 square foot facility. This action plan does not address the essential long-term improvements to the facility such as space needs, handicapped accessibility, gender equity, training facilities, safety improvements, or security enhancements. The estimated project cost for this plan is $1,550,000. The second action plan (5A) would include an addition to the existing building which would improve the way the building operates and improve security. The expansion would include an apparatus bay addition, firefighter addition, training addition, and an ambulance suite, along with renovations to the existing space. This plan adds approximately 10,600 square feet to the existing building. The estimated project cost for this plan is $6,000,000. The third action plan (6A) would include an addition to the existing building which would improve the way the building operates and improve security. The expansion would include an apparatus bay addition, firefighter addition, training addition, and an ambulance suite, along with renovations to the existing space. This plan adds approximately 8,300 square feet onto the existing building. The estimated project cost for this plan is $5,200,000. Action plan #4 would include replacement of the existing building with a new 20,000 square foot structure. The estimated project cost for this plan is $7,200,000. It was noted that this plan would provide for operational savings and rebates from Xcel Energy, and the building would be the most efficient. There are also many `unknowns' when a remodel project is completed. The needs of the department were identified by Chief Maczko. They were training, storage, HealthEast ambulance inside storage, safety and storage for the turnout gear, air quality sensors, and mechanical - heating system. August 24, 2015 Mendota Heights Council Workshop Page 2 The Council discussed the location of the fire department, temporary space that would be needed during the duration of the project, the current trends in fire departments, and the possibility of the department merging with another adjacent department in the future. Mayor Krebsbach stated that the financing of this project will be the biggest challenge. She stated that the city hall should have a space needs analysis completed before any action is taken on this project. Councilmember Povolny suggested that the city consider moving the police department to the fire department site, and a building be completed for both departments to be located adjacent to each other. Administrator McNeill summarized that the city will look into the cost of completing a space needs analysis of the police department and the administration departments, and this item will be brought back to a Council workshop meeting in one month. CONTINUED BUDGET FY2016 DISCUSSION Staff indicated that the 2016 budget discussion will continue on the workshop agenda set for Tuesday, September 1, 2015 starting at 5:00 p.m. ADJOURN Mayor Krebsbach adjourned the meeting at 7:28 p.m. ATTEST: Lorri Smith, City Clerk Sandra Krebsbach ayor August 24, 2015 Mendota Heights Council Workshop Page 3