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10 21 2025 City Council Work Session MinutesCITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the City Council Work Session Tuesday, October 21, 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 4:30 p.m. Councilors Lorberbaum, Maczko (4:47 p.m.), Mazzitello (4:45 p.m.), and Paper were in attendance. Others present included: City Administrator Cheryl Jacobson, Assistant City Administrator Kelly Torkelson, Finance Director Kristen Schabacker, Public Works Director Ryan Ruzek, Parks & Recreation Director/Assistant Public Works Director Meredith Lawrence, Assistant City Engineer Lucas Ritchie, and City Clerk Nancy Bauer, Public Works Director Ruzek reported that prior to 2016, the City of Mendota Heights purchased water wholesale from St. Paul Regional Water Services (SPRWS) and owned the water system. The City imposed a 10% surcharge to fund water main replacements and other capital improvements. When the system was turned over to SPRWS in 2016, the surcharge was reduced to 5%. The current surcharge generates approximately $130,000 annually, and the Water Utility Fund balance has grown to over $1 million. As there are no known upcoming capital improvements, staff recommended reducing the surcharge unless the Council intends to fund future water projects. Director Ruzek explained that surcharge funds are used for water -related costs such as valve and hydrant adjustments, relocating water infrastructure for street and trail projects, utility billing fees to SPRWS, and maintenance such as painting hydrants and installing markers. The funds could also support new projects, including adding drinking fountains, extending water service to the dog park, or supplying water to community gardens. Reducing the surcharge would require an amendment to the agreement with SPRWS. Finance Director Schabacker noted that SPRWS would prefer any amendment take effect in January or February 2026. In discussion, Councilor Paper asked about potential unforeseen expenses. Director Ruzek noted that a water extension to the Oheyawahe site is being considered and that the City is responsible for adjusting water valves during street projects at approximately $30,000 per year, while October 21, 2025, Mendota Heights City Council Work Session Minutes Page - 1 moving a hydrant costs $10,000—$15,000. In response to a question, he confirmed the City would not be responsible for repainting the water tower. He also noted SPRWS charges $0.36 per mailed bill, totaling under $10,000 annually. Director Ruzek added that the eight -inch auto fire service lines serving public buildings are over 30 years old and nearing the end of their warranty, and repairs would be the City's responsibility if failures occur. Following the discussion, it was the consensus of the Council to reduce the water surcharge to 2.5%. RETAIN SURPLUS VEHICLES Public Works Director Ruzek stated that the Fire Department recently put into service a new brush truck. The new truck replaces a 2009 pickup truck with low miles (8,000 miles) that has been stored indoors throughout its life. Staff would like to repurpose the vehicle for mounting a proposed message board for the Street and Utility Departments. The vehicle is painted red and would be highly visible. The additional costs to retain the vehicle would include general maintenance. Due to the age of the vehicle, it is not expected to sell at a high value at auction. Another vehicle being replaced is the Fire Chiefs 2009 Tahoe. The vehicle has been maintained and and stored indoors. Staff are proposing to use this vehicle at the Par 3 golf course. The budget currently includes $1,000 for mileage reimbursement for the Par 3 staff, which would be eliminated if the vehicle is retained. This vehicle also would not be expected to return much value at auction. Councilor Lorberbaum asked about the cost of repainting a vehicle. Public Works Director Ruzek stated that an estimate was solicited a couple of years ago for a vehicle wrap, and the cost at that time was approximately $2,000. Councilor Paper asked if there was space indoors to store the vehicles. Public Works Director Ruzek stated that the vehicle proposed for the Par 3 golf course would be stored indoors at the Par 3 maintenance garage, and the other vehicle would not. Parks &Recreation Director/Assistant Public Works Director Meredith Lawrence added that retaining a vehicle for the Par 3 would create additional budget savings by eliminating mileage reimbursements. Councilor Paper asked about the cost of insuring the vehicles. Finance Director Schabacker stated that while she did not have the exact figure, the cost is minimal. Councilor Mazzitello asked whether employees use their personal vehicles for city business. Public Works Director Ruzek confirmed that they do, as the City does not have enough vehicles for all staff. Mileage reimbursements are paid when city vehicles are unavailable. October 21, 2025, Mendota Heights City Council Work Session Minutes Page - 2 Councilor Mazzitello noted that when the Fleet Replacement Program was implemented, the goal was to replace vehicles before their value declined. Public Works Director Ruzek clarified that the Fire Department operates under its own fleet policy, and these vehicles are exceptions. Councilor Maczko stated he supports this item and asked how many vehicles the city currently has. Public Works Director Ruzek stated that there are currently 13 administrative staff and five available vehicles, with two vehicles that are assigned specifically to staff based on their job duties. There are also two summer interns that may need access to a vehicle. City Administrator Jacobson stated that staff access to vehicles is needed more in the summer and that Public Works seasonal staff also need access to vehicles. Councilor Maczko asked about renting vehicles in the summer. City Administrator Jacobson stated that staff have explored the feasibility of renting vehicles, but that the idea was not cost effective. Councilor Paper stated that the vehicles were more valuable to the city than if they were sold at auction. The consensus was to retain the two vehicles for city use. SIBLEY MEMORIAL HIGHWAY TURNBACK Public Works Director Ruzek stated that the Sibley Memorial Highway turnback has been discussed since 1 "4. Staff are working with MnDOT, which proposed a budget of $3.1 million for a mill and overlay project which is expected to last for 12-15 years. Additionally, MnDOT has identified additional storm sewer improvements, acquisition of easements, and right-of-way acquisition. MnDOT also offered to provide $3.1 million to the City, with the City coordinating the street improvements. The cost of the stormwater improvements is unknown. The question for consideration is whether to allow MnDOT to complete the project, knowing that the roadway will need to be redone in 12 to 15 years and that the funds would not be recouped through future highway turnback allocations. In the future, when the roadway requires reconstruction, the City could consider converting the roadway into a cul-de-sac; however, two businesses in the area would likely be opposed to this option. Staff requested confirmation from the Council that the intent remains to keep Sibley Memorial Highway as an open roadway. The current average daily traffic on the roadway is approximately 1,800 vehicles. Assistant City Engineer Ritchie stated that if the roadway was made into a cul-de-sac, Municipal State Aid funds could not be used because the roadway would be taken off the municipal state aid system. October 21, ZO25, Mendota Heights City Council N'ork Session Minutes Page - 3 Councilor Maczko asked if the road was on the municipal state aid system. Public Works Director Ruzek stated that it is and was above the city's allocated mileage. Councilor Maczko asked if the mileage could be transferred elsewhere if the roadway were removed, or if different rules apply because it is a state highway turnback. Public Works Director Ruzek stated that while it remains a functioning through road, the City can still add it to the state aid system and draw funds for maintenance. If it were made into a cul-de-sac and maintenance funds were used, those funds might need to be repaid to MnDOT. Public Works Director Ruzek stated that approximately $1 million of bluff stabilization work would be needed in addition to the mill and overlay project. He reiterated that he would not recommend the City accept the funds and take ownership of the roadway as -is and that collecting state aid funds over a 12-to-15-year period may cover the cost of a future road project. Councilor Maczko asked if the bluff stabilization work would also be the responsibility of the City once the road was turned back. Public Works Director Ruzek stated that the bluff stabilization work would be done by MnDOT if MnDOT coordinated the mill and overlay project before it was turned back to the City. The right-of-way would also then be turned over to the City as part of the turnback. Councilor Maczko stated that if the road were to be made into a cul-de-sac, it then would be removed from the municipal state aid system, and state aid funding would stop for the road. Councilor Paper asked why the businesses would not like the road to be a cul-de-sac. Public Works Director stated because it would limit access to their businesses. Public Works Director Ruzek stated that a meeting with MnDOT was scheduled to discuss the turnback. Mayor Levine asked n he had sufficient direction for the meeting; he replied that he did. Councilor Mazzitello stated he would like to see the stormwater improvements completed, ribbon curbing installed, a mill and overlay performed, municipal state aid funding collected, and the right-of-way transferred. ADJOURNMENT Councilor Paper made a motion to adjourn the work session, seconded by Councilor Mazzitello. Motion carried. The meeting adjourned at 5:30 p.m. ATTEST: Stephame B. Levine, May6r ancy lVauer, City Clerk October 27, 2025, Mendota Heights City Council Work Session Minutes Page - 4