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09 03 2025 City Council Work Session MinutesCITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the City Council Work Session Tuesday, September 3, 2025 Pursuant to due call and notice thereof, a work session of the Mendota Heights City Council was held at Mendota Heights City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota, CALL TO ORDER Mayor Levine called the work session to order at 4:00 p.m. Councilors Lorberbaum, Maczko, Mazzitello and Paper were in attendance. Others present included: City Administrator Cheryl Jacobson, Assistant City Administrator Kelly Torkelson (arrived at 5:10 pm), Finance Director Kristen Schabacker, Public Works Director Ryan Ruzek, Parks and Recreation Director/Assistant Public Works Director Meredith Lawrence, Police Chief Kelly McCarthy (left at 4:44 pm) and City Clerk Nancy Bauer. CITY HALL/POLICE DEPARTMENT BUILDING Also in attendance from ICS were Project Development Director Chris Ziemer, Project Development Director Kristen Duerr, and Project Development Specialist Karen Klein. C. Ziemer reviewed the deficiencies of the current Mendota Heights City Hall and Police Department. He further stated a recent meeting was held with staff to review the wants versus the needs for the space. His presentation showed areas and pricing that could be eliminated. A revised design eliminated 7,500 square feet for the Police Department. A major cut was to 10 secured vehicle bays. City Hall requires minimal amount of additional space. The Police Department does need more space as there is no patrol room. Mayor Levine asked if some of the spaces could be shared by City Hall employees and the Police Department. C. Ziemer stated the workout facilities could be shared as they are now. Police Chief McCarthy stated that because of privacy laws police areas would need to be secure and separate from City Hall. Councilor Maczko asked if conference rooms could be shared if they were separated by locked doors. C. Ziemer said that it could be possible. A potential new conference room was discussed to be used as a classroom and for absentee voting. C. Ziemer showed three facility options: 1. Renovating the existing building with additions ($19,741,305), 2. Building a new police department building and renovating city hall ($23,220,335), or 3. Construction of new facility that includes both police department and city all ($26,211,085). Septeznber 3, 2025, Mendota Heights City Council ii'ork Session Minutes Page - 1 Mayor Levine asked for clarification regarding the limitations for renovating compared to building a new building. C. Ziemer stated that a renovation would be limited by the existing structure constraints. A new building could be designed for the needs that are needed on day one. Mayor Levine stated that the costs look to be less to renovate. C. Ziemer stated that what is not captured in the numbers are some things that need to be eliminated because of the fixed walls that are already existing. The renovations would need to be worked into the existing footprint plus adding any additional space. Councilor Lorberbaum stated that some of the existing systems that would not change would cost more later. C. Ziemer stated that the roof would not be replaced if there was a remodel, but the roof would need to be replaced at a future time. The mechanical systems would be replaced with a remodel. Councilor Maczko stated there would be efficiencies if the City Hall and Police Department were built one on top of the other. C. Ziemer stated that was correct and it would have a smaller site impact. There would still be inefficiencies that exist today such as who would have access to what areas in the building. C. Ziemer stated that these discussions follow a five -phase process. The first two processes of a space needs study and facility assessment have been completed. The next steps are community engagement, optional election, and project implementation. There is a role of a Project Oversight Committee (POC) from planning through construction to help monitor scope (staff) and help with the process that flows up to the City Council. C. Ziemer continued that there are three important components to a project: the need (scope), political and financial components that need to be considered before moving forward. The City Council and administration make the decisions in the best interests for the community, ensure that the taxpayers are receiving good value for the investment in the facilities, and the city is listening to community feedback. In terms of community engagement, a thought exchange could be done with citizens. It would be a non -scientific study meant to be a quick high-level way to get to know the desire of the community. This has been effective when done in other communities. Based on that survey, a scientific survey could then be conducted. This survey would be data driven. Step three would be opening the building for tours and showing the challenges of the current building. This would also communicate a need to the community. Mayor Levine asked about a task force. C. Ziemer stated that there would be a task force down the road with city staff and one or two councilors. Councilor Maczko asked if community members would be on the task force. C. Ziemer stated that it could be a possibility. September 3, 2025, N/endota fleiglats CrqCauivcil !i'ork Session Minutes Page - 2 Mayor Levine asked where the task force fits into this. C. Ziemer stated that it could be fit in a couple of different places. The difference between the Project Oversight Committee and Task Force were discussed. Councilor Mazzitello stated that community feedback is valuable for the information received as someone else may see something that we do not. Councilor Lorberbaum agreed with the statement. Councilor Maczko stated that he agreed that community feedback is valuable and work would need to be done to convince community members to be engaged. C. Ziemer stated that the proposed timeline is for September to conduct the community thought exchange, and then in October that feedback would be discussed at work session. After that discussion the scientific survey would be conducted, with a decision to proceed with design by the end of December. Councilor Mazzitello asked how the thought exchange survey would be conducted. C. Ziemer stated with a QR code on the website, flyers, and use of an email list. Other ways to promote the survey were discussed. Councilor Maczko asked about the surveys being too open ended. C. Ziemer stated that the surveys will be conducted to gather the information that is needed. Councilor Paper asked when a project would be ready to build or renovate. C. Ziemer stated if a decision was made in December, that bidding would be next year midfall and construction the following spring. Councilor Lorberbaum asked if there was a referendum when would it be held. C. Ziemer stated that it would be at the November election next year. Finance Director Schabacker asked if any funds needed to be added to the 2026 budget. She stated that right now there is about $425,000 in the budget. C. Ziemer stated he would get back to her on an amount. Councilor Maczko stated that a process that makes it clear and understandable for the community is the right and wisest thing to do. FY2026 PROPOSED BUDGET REVIEW City Administrator Jacobson stated that the preliminary budget approval needs to be at the September 16, 2025, City Council meeting. She recapped previous budget meetings that had been held and listed the budget item requests that had been declined. Staff had been directed to run numbers that were discussed at previous meetings. The consensus was to raise the level of 5% but no more than 5,25% and to maintain the 75% in the General Fund Balance per the Fund Balance Policy, September 3, 2025, Mendota Heights City Council hl�ork Sessiorr Minutes Page - 3 Finance Director Schabacker handed out spreadsheets with four budget scenarios and supporting documentation. She recapped the four scenarios, what was included in the budget request, and how the items would be paid for. Councilor Paper asked about the proposed used water tanker truck replacement for the Fire Department and what it was used for. City Administrator Jacobson stated that at a previous budget work session it had been requested to purchase a new tanker truck. It was then the consensus to purchase a used water tanker truck. Councilor Paper asked why it was being requested to be replaced. City Administrator Jacobson replied that it is a 2013 water tanker truck. Public Works Director Ruzek replied that it is hard to find new parts for the existing water tanker truck. Mayor Levine asked about the payment received from Sunfish Lake for fire services. Finance Director Schabacker explained how their payment for fire services was calculated. Councilor Mazzitello asked for the rate increase for the levy increase for the proposed scenarios. Finance Director Schabacker explained the scenarios showed a 4.94% increase in the levy. To get to 5.25% it could be increased about $42,000. Councilor Mazzitello proposed adding $25,000 to the building fund for the Police Department and City Hall. Franchise fees were discussed, and it was the consensus to have a future discussion regarding franchise fees before the 2027 budget discussions. City Administrator Jacobson discussed potential funding sources such as charitable gambling. Councilor Lorberbaum also said that sponsorships should be discussed. Councilor Maczko stated he was uncertain of the additional hours for recycling, the Joint Powers Agreement, and asked why West St. Paul was no longer applying for the grant funds from Dakota County. Parks and Recreation Director/Assistant Public Works Director Lawrence responded that Mendota Heights is taking on funding an additional eight hours for the position to help with Mendota Heights' sustainability efforts. All other hours are funded through the grant. Every city in Dakota County is required to comply with the ordinances Dakota County has in place. Councilor Maczko stated that he thought that the Par 3 generator was unnecessary even though it is funded through the Par 3 funds. Parks and Recreation Director/Assistant Public Works Director Lawrence stated she believed that the generator was necessary, and the funds would come out of the Par 3 fund. Councilor Maczko asked about the Fund Balance Policy. City Administrator Jacobson gave background information on the policy and how it affects the city bond rating and city's cash flow. The Fund Balance Policy states that the General Fund should be 75%. Councilor Paper stated he thought that the Fund Balance Policy was going to be discussed at a work session. City Administrator Jacobson stated that it could be a topic for a work session. Septenvber 3, 2025, Mendota Heights City Council iVork Session Minutes Page - 4 The various budget scenarios that were presented were discussed. The Fire Department parking lot cost was discussed and whether it could be added to an Engineering project. It was the consensus to use scenario two for the preliminary budget and add the fire station parking lot at $80,000 and reduce the fire water tanker truck replacement amount to $250,000 which would leave an additional $30,000 cushion beyond the fund balance requirement. Finance Director Schabacker summarized the results of the budget discussion and stated the levy will be at 4.94%. The net property tax impact will be about a $111 increase for a $550,000 home. Two things that have changed since the budget sheets were first handed out were the Police Department prosecutions costs increased by $11,500 and one debt payment was reduced by $38,500. IUa[IIII i�IL111�11 Councilor Mazzitello made a motion to adjourn the work session, and the motion was seconded by Councilor Paper. Motion carried. The meeting adjourned at 6:57 p.m. %SLII "ANN ns ATTEST: N ncy auer, City Clerk September 3, 2025, Mendota Heights City Council Work Session Minutes Page - 5