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10 07 2025 City Council Work Session MinutesCITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the City Council Work Session Tuesday, October 7, 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 (arrived at 4:07 p.m.), Mazzitello, and Paper (arrived at 4:14 p.m.) were in attendance. Others present included: City Administrator Cheryl Jacobson, Assistant City Administrator Kelly Torkelson, Finance Director Kristen Schabacker, Parks & Recreation Director/Assistant Public Works Director Meredith Lawrence, Community Development Manager Sarah Madden, Police Chief Kelly McCarthy, and City Clerk Nancy Bauer. Also in attendance from ICS were Project Development Director Chris Ziemer, Business Development Specialist Kristen Duerr, and Ehlers Senior Municipal Advisor Stacy Kvilvang. CITY HALL/POLICE DEPARTMENT BUILDING PROJECT Police Chief McCarthy reviewed the project goals, noting that the proposed improvements address safety, security, accessibility, and environmental concerns with the existing City Hall and Police Department campus. She outlined current facility deficiencies, including exposure and privacy issues, limited firearm and evidence storage, inadequate interview and victim spaces, and outdated security measures. S. Kvilvang, Ehlers, presented tax impact estimates for various building proposals based on the city's median home value of $551,000 and 20- and 25-year bond terms. She noted that a $35 million project would not affect the City's AAA bond rating. She advised against using fund balance for project costs, as maintaining the fund balance supports the City's credit rating. Estimated impacts for a $25 million project were $333.07 per year for a 20-year bond and $299.20 per year for a 25-year bond. Mayor Levine asked about the strategy of paying off some of the cost with the city's accrued fund balance. S. Kvilvang recommended against that as the fund balance and the fund balance policy are a part of what the rating agencies use to determine their rating, and it would be a better strategy to bond for the additional cost rather than buy it down with the fund balance. Mayor Levine asked if the bond rating will depend on the city's rating at the time of issuance. She asked if the bond rating went down a grade how that would affect the cost. October7, 2025, Mendota Heights City Council Work Session Minutes Page - 1 S. Kvilvang answered that there was not a significant difference between an AA+ and a AAA bond rating. Mayor Levine stated the importance of Council alignment when communicating with the public about the project. Councilor Maczko noted the need to discuss options before setting a budget, while Councilor Mazzitello emphasized understanding project value to effectively communicate it to residents. C. Ziemer commented that delays in decision -making will increase costs. Councilor Paper stated that remodeling the existing building would not be an efficient use of funds and that a new building is likely the best option. Councilor Lorberbaum agreed that a new facility is needed and asked whether relocation costs for staff during construction are included in project estimates. Mayor Levine stated that if a new building is built, staff will stay in the existing building until the new building is complete and temporary relocation of staff would not be needed. She added that relocating City Hall during a remodel was considered, and that would be expensive. Councilor Mazzitello outlined four options under consideration: constructing a new building and determining future use of the existing City Hall; building an addition and renovating the current facility (noting identified gaps with this option); constructing only a new Police Department; or taking no action. Mayor Levine noted that four of the five Council members are leaning toward new construction. Councilor Maczko stated he needs additional information on the structural condition of the existing building, potential for rehabilitation, and community support for the project. Mayor Levine responded that those questions had been previously reviewed and emphasized the Council's role in leading the community and communicating the need for the project. Mayor Levine thanked S. Kvilvang for her insight and comments. S. Kvilvang left the meeting. Councilor Mazzitello asked when a bond sale may happen. C. Ziemer stated if a decision were made in December, bidding could happen in September or October of 2026 with construction in spring 2027. Police Chief McCarthy reiterated that a new building is needed to address safety, security, accessibility, and capacity concerns with the current City Hall and Police Department. She noted significant wayfinding and security issues due to the building's split-level configuration, as well as limited office space, storage, and community gathering areas. Deferred maintenance and aging infrastructure were also cited as concerns. Police Chief McCarthy reviewed the facility's history, noting that City Hall was built in 1989, mold was discovered in 2016, and space constraints became evident with staff additions following the 2020 Police Department McGrath Study. CNH Architect proposals were reviewed in 2023, and ICS was retained in 2024 to assist with an update to the space needs assessment, which identified a $7 million cost increase between 2020 and 2025. October7, 2025, Mendota Heights City Council Work Session Minutes Page - 2 She detailed that several alternatives were evaluated, including contracting for city police services, remodeling or expanding the existing facility, relocating some administrative functions, building at the Public Works site or Bourne Lane property, and leasing existing business park space. It was determined that constructing a new facility on the current site is the preferred option. Three approaches were considered: taking no action, which would not resolve safety, service, or space deficiencies and would still require $1.5—$5.9 million in maintenance; constructing a new facility to meet current needs at an estimated $25 million; or constructing a facility to meet future needs at an estimated $33 million. Police Chief McCarthy noted that the primary difference between the second and third options is the inclusion or removal of specific spaces such as conference rooms, community areas, and certain Police Department functions. On the city side, the community classroom, council conference room, and an administrative conference room were removed. Police Chief McCarthy stated that the next steps include having ICS prepare two mockups: one for the minimum option addressing current needs, and one for the full option designed to accommodate future needs and regional considerations. Staff can then share these mockups with the public to gather feedback on elements such as community space and other design features. Councilor Maczko asked if it would be possible to construct a new police station and have city staff expand throughout the existing City Hall. Police Chief McCarthy reviewed that, given the current condition of the building, remodeling it would require a significant investment, and staff would then need to be relocated during the construction, adding additional costs. C. Ziemer stated that the current building could be repurposed, but that renovations would be extensive, as it was built in an era when security was not a concern. He added that updates such as replacing the residential windows throughout the building would be a significant expense. Councilor Mazzitello stated the building was built when the population was 7,000, and the city now has a population of nearly 12,000, and that we have simply outgrown it. Mayor Levine stated she prefers that the Police Department and City Hall are connected. Police Chief McCarthy noted ongoing issues with the current City Hall and stated that, at the Council's direction, staff presented the option of renovating the building to a group of residents in 2023. The group concluded that renovation was not financially responsible and recommended constructing a new facility. Councilor Mazzitello stated the best value is to build new with planning for future expansion. Police Chief McCarthy stated the next step would be to engage with the public with information regarding the options. Councilor Maczko reviewed the strategy when the current building was in the planning phase in the mid-1980s. Chief McCarthy commented that the options being discussed align with the original vision for the campus in building expansion towards the west. Councilor Lorberbaum asked when talking to the public, do we discuss safety concerns. Police Chief McCarthy stated yes, that is public information. Octeber7, 2025, Mendota Heights CiryCounci! WorkSessien Minutes Page - 3 C. Ziemer presented two layout options prepared by ICS: Option 1, designed to meet current needs, with an estimated cost of $26,210,998; and Option 2, designed for future growth to the west, with an estimated cost of $33,557,732. Councilor Mazzitello asked if the two options would have one way in and one way out. C. Ziemer answered yes. Councilor Maczko asked if the two options would be a one-story building. C. Ziemer answered in the affirmative. He stated a two-story garage may be considered for parking. City Administrator Jacobson stated that a new building could be constructed on Civic Center/Mertensotto Field, with the field relocated to Mendakota Park or another city park, or possibly on the current City Hall site. C. Ziemer stated that the Summit Fire office building was looked at as a possible building for a new campus, but it was determined to be too small to meet the city's needs. Mayor Levine stated that some Councilors have not participated in all prior discussions regarding a new City Hall/Police campus and emphasized the need for Council alignment. She expressed concern about spending public funds inefficiently and noted her appreciation for the interior of the current building, questioning whether a new facility could be designed to be similarly warm and appealing. Councilor Maczko agreed that something needs to be done. He agreed that more space is needed. Mayor Levine emphasized that the community needs to understand the necessity of a new building and stated the dual goals of the project are to engage the community in the decision and to complete the project. She praised the leadership and staff and recapped that four of the five Council members are prepared to proceed with new construction at an estimated cost of $25 to $35 million, including demolition of the current City Hall. Councilor Paper inquired about producing a video for the community access channel and asked whether federal funding was available. City Administrator Jacobson stated that federal funding isn't available and noted that a State bonding request had been submitted, but it is unlikely to move forward. C. Ziemer stated that there are many regulations to follow with federal and state funding, which would add more costs and add more time to build a new building. Business Development Specialist Kristen Duerr stated that community engagement efforts will include social media outreach, a newsletter, and holding an open house to focus on the project's need and purpose. City Administrator Jacobson stated that the goal is to have a decision by the end of the year ADJOURNMENT Councilor Paper made a motion to adjourn the work session, seconded by Councilor Lorberbaum. Motion carried. The meeting adjourned at 5:38 p.m. Octo6ei7, 2025, Mendota Heights CityCounci! WorkSessinn Minutes Page - 4 ATTEST: d"e- '4aAcy Bau r, City Clerk Stephanie B. Levine, MayKr October7, 2025, Mendota Heights CityCounci! Work Session Minutes Page - 5