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12 02 2025 City Council Work Session MinutesCITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the City Council Work Session Tuesday, December 2, 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, and Paper were in attendance. Councilor Mazzitello was absent. 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, Community Development Manager Sarah Madden, Police Chief Kelly McCarthy, Police Sergeant Wayne Wegener, and City Clerk Nancy Bauer. Also in attendance from ICS were President Andy Faulkner, Business Development Specialist Kristin Duerr, and Project Development Specialist Karen Klein. CITY HALL/POLICE DEPARTMENT BUILDING PROJECT Attendees introduced themselves. City Administrator Jacobson explained that the work session aimed to review past progress and discuss the current status, noting that the Council should determine whether they would be ready for a presentation at the December 16 City Council meeting. City Administrator Jacobson provided a timeline for previous meetings. March 4, 2025, the Council unanimously identified addressing the Police Department and City Hall needs as a top priority at a strategic work session. March 18, 2025, Council approved a professional services contract with ICS. August 6, 2025, ICS presented their preliminary findings of the Facility Condition Assessment and Space Utilization Study. The space needs findings indicated that: 1. The current facility is undersized for current needs 2. The cost of renovating the facility to meet current needs exceeds industry standards when compared with the cost to build new 3. The current facility has safety and security concerns for the public and staff 4. The current facility is negatively impacting service levels to the community as well as staff efficiencies December 2, 2025, City Council Work Session Minutes Page - 1 August 6, 2025, Council directed staff to analyze the feasibility of all available options to address the facility's concerns. September 3, 2025, Council directed staff to develop fiscally responsible options for Council consideration. October 7, 2025, Council directed staff to engage the public on Lite facility needs. October 28, 20255 staff hosted a Municipal Campus Project Open House. Options that have been discussed: Contracting Out Police Services: Pros discussed included reduced costs and less space would be needed. Cons included reduced service levels, loss of local control, slower response times, and diminished community connection. Council direction: Maintain the Police Department and ensure it has the necessary infrastructure and operational support to provide services. Facility Relocation: Sites evaluated included the fire station, public works site, Bourne property, and vacant office buildings in the city. None of the options were deemed feasible for relocation. Council direction: The municipal campus should be centrally located to ensure effective emergency response, and the City Hall and the police station should be co -located to maintain public safety and efficient municipal operations. Renovation: Renovation costs to meet current needs exceed industry standards, and maintaining operations during renovation would negatively impact services and increase costs. Council direction: The municipal campus project must be a long-term investment that provides lasting value to residents. New Construction: Preliminary estimates indicate an approximate $33 per month tax increase for the average homeowner. A bonding request was submitted to the State Legislature which may help offset costs. Phased construction could reduce initial expenses but may incur additional costs for future construction and potential duplication of work. Council direction: Develop proposals for a long- term scope using a "dig once" approach, building to meet both current and future needs. November 5, 2025, Council directed staff to develop proposals fora "dig once" approach to refine scope. City Administrator Jacobson noted that NDC4 had produced a video summarizing project options and addressing frequently asked questions. The video was shown, and she expressed appreciation to NDC4 for their assistance in creating it. December 2, 2025, City Council Work Session Minutes Page - 2 City Administrator Jacobson stated that Council direction is to propose a municipal campus project scope that: (1) is fiscally responsible with a clear and transparent scope and cost structure; (2) provides long-term value to residents; (3) supports efficient and effective public safety and municipal services; and (4) includes a co -located City Hall and Police Department to maximize efficiency, safety, and security. Business Development Specialist Kristin Duerr presented a timeline of future tasks that would follow if the City Council approved the project at the December 16 meeting. She outlined two options: 1. Build for Immediate Need: The estimated cost increased from $26 million to $29 million due to required soil corrections and if needed, enhanced footing systems. The proposed square footage is 15,845 sq. ft. for City Hall and 27,222 sq. ft. for the Police Department. 2. "Dig Once" and Build for Future Needs: The estimated cost decreased from $33 million to $31 million after reducing the garage space and removing the ON space. However, if state bonding is awarded, the project would need to meet B3 energy standards and include the required ON space, increasing the total cost to $35 million. Councilor Paper asked about the site plan for a new building. Business Development Specialist Duerr noted that it was a preliminary sketch to be used as a visual. Councilor Paper asked when it would be known if the bonding bill was successful. City Administrator Jacobson stated it would be about May 2026, Mayor Levine stated that a successful bonding bill could help supplement the cost of constructing a new building, though it could also increase costs. She asked what the taxpayer impact would be if a ON space were included in the new facility. Councilor Maczko asked for more information about CJN. Chief McCarthy explained that it stands for Criminal Justice Network, a nonprofit consortium that supports efficient police operations through records management and information sharing. She noted that Mendota Heights has participated in CJN for years and that 26 Minnesota agencies currently use it, with efforts underway to expand participation. She added that if ON were to have space in the new facility, they would pay rent. Councilor Maczko asked for information about the sites that were not considered feasible. Business Development Specialist Duerr replied they were discussed at the November 5 work session. December 2, 2025, City Council Work Session Minutes Page - 3 ICS President Andy Faulkner noted that to add a ON space it would cost approximately $1 million. Mayor Levine asked how much rent would be charged. Chief McCarthy stated that it was not known at the time. Councilor Maczko noted that he was not sure if the community is aware of the Council current position in the process and emphasized the importance of ensuring there is public support for the project. Mayor Levine summarized the outreach efforts taken so far to inform the community. She noted that an open house was held for community engagement and asked what information had been shared with the public and how far it had reached. Assistant City Administrator Torkelson reported that, as of November 5, the municipal campus project webpage had received 593 visits. Additionally, 84 people viewed the open house news flash, and 46 clicked on the calendar invitation. Social media metrics were not available. She added that the video shown at the meeting would also be made accessible to the public. Councilor Maczko stated that the community recognizes the need to address the building, and that the next step is determining exactly what should be done. He noted that the City is not anticipated to experience further growth, so he questioned why the building is being considered for future needs. The City saw a lot of growth in the 80's and then again in the 90's. Mayor Levine asked for an explanation of what future growth for the building means. Business Development Specialist Duerr explained that building for the future incorporates some flexibility in the design to allow for operational changes that come as new practices are integrated into operations. The goal is to identify spaces that allow staff to do their jobs efficiently, noting that the building is currently undersized. She added that there are security issues with the existing facility, and those concerns have been exposed to the public, so the decision is more time sensitive than it has been. Councilor Maczko noted that right now the existing space consists of 11,500 sq. ft. for City Hall and 8,500 sq1 ft. for the police. To build for immediate needs the recommendation is to add 4,500 sq. ft. for City Hall and 18,000 sq. ft. for the police (which includes garage space), and to build for the future an additional 2,400 sq. ft. for City Hall and 10,000 sq. ft. for the police. Why is the additional space needed if current staffing is adequate. Business Development Specialist Duerr responded that it was addressed in the second work session that was held which discussed the needs vs the wants. The wants were removed, the needs were identified, and ICS worked based on Council direction. City Administrator Jacobson also noted that additional positions — such as a code enforcement officer or a sustainability position —may be needed in the future. December 2, 2025, City Council Work Session Minutes Page - 4 Mayor Levine commented on recently built facilities in Rosemount and Eagan. The difference between the two is that one was built for immediate needs and has issues now, and the other has flexibility to adapt as operations change. The Council should learn from the lessons of our neighbors. An audience member commented that the project skipped over the public consultation process. He learned about the project through his son. His neighbors have no knowledge of the project. The money is significant. Chief McCarthy stated that the specifics are not known yet to present to the public. The challenge of public engagement this early in the process is that we do not have more specifics to provide as the council is so early on in the process that direction has not been provided yet. An audience member stated that he had the impression that the contracts were going to be signed soon. Another audience member stated that she was distressed by the tone of the discussion surrounding the project. She said the Council is approaching the project exactly as it should. She noted that she served on the Council when the fire station was built and remains proud of the planning that went into that facility. She emphasized that additional space is needed for the municipal campus and that investing further in the existing building would not be prudent, noting that extensive maintenance has already been done to sustain what she described as a "sick building." She added that the current facility was not built to municipal standards. She expressed strong support for the municipal campus project and said she would publicly share that support. She also commented that the bonding bill may not pass but suggested that the City could seek exemption from sales tax on the project, as was done for the Fire Station. Finally, she noted that the ballfield should be relocated and that there are options available for relocating the ballfield. Councilor Lorberbaum asked why co -locating City Hall with the Police Department is considered a safety issue. Chief McCarthy responded that the two primary reasons are managerial control and overall safety. Mayor Levine referenced the New Hope incident, noting that co -location can also help ensure that people visiting City Hall feel safe. City Administrator Jacobson added that a municipal campus would also create operational efficiencies, such as shared conference space. Assistant City Administrator Torkelson noted an additional benefit: improved staff integration by having employees work together in one building. Business Development Specialist Duerr suggested touring other city halls. Councilor Lorberbaum said she would be interested in touring other city halls. Councilor Paper noted that when considering future needs, it is important to remember that 15 years ago the City did not have natural resources staff, a volunteer coordinator, or recycling staff. December 2, 2025, City Council Work Session Minutes Page - 5 He added that some departments hire interns, and having adequate space to support them would provide additional benefits to the community. Councilor Paper also stated that, while he is appalled by the project cost, he supports addressing the City's needs. He noted that costs are largely uncontrollable and that discussions about this project have been ongoing since he joined the Council in 2017. He emphasized the importance of moving forward, as costs will only rise the longer the project is delayed. He explained that the project is largely driven by the Police Department and that not all requests are being funded. Relying on state or federal funding is not feasible. Councilor Paper indicated support for the "future -ready" option and expressed interest in including ON in the building if it can generate revenue. He added that the ballfield should be relocated if it cannot fit on the site, given its special status, and he would like the old City Hall to be demolished. Councilor Lorberbaum agreed with Councilor Paper. City Administrator Jacobson stated that Councilor Mazzitello was in favor of building a new facility. Councilor Maczko stated that people move to Mendota Heights because it is avalue-driven community, where the services provided are exceptional for the taxes paid. He emphasized that public funds should be spent on what is truly needed. Any new construction should be appropriately sized and done correctly, and the details can be worked out. He indicated he could support new construction if it is the right decision and would support including ON in the building, if they pay rent. Mayor Levine stated that she agrees with the rest of the Council. Regarding CJN, she noted that its inclusion would depend on now much bonding could be secured and the associated costs to the City. She emphasized that other funding options for the project need to be thoroughly discussed. Potential sources include funds in the City's fund balance, proceeds from selling city - owned property, and revenue could be generated from charitable gambling or franchise fees. City Administrator Jacobson stated that the estimated projected costs are available for the "dig once" option. Mayor Levine stated there needs to be a proactive approach to engaging with the public. The residents will want to know what is going to happen and how much it is going to cost. Councilor Lorberbaum noted that a right sized building for the future was estimated to be $33 a month for a median valued home value, they may want to know the yearly cost, and the other costs on their tax bill. December 2, 2025, City Council Work Session Minutes Page - 6 Councilor Maczko stated that he agrees that a new facility is needed but he wants more information about what the difference between the immediate needs option and the "dig once" option noting that he wants to be fiscally responsible. Mayor Levine stated that all council members are fiscally responsible. Mayor Levine asked what decision would be made at the December 16 Council meeting and whether the cost would be included in the presentation. Business Development Specialist Duerr responded that, based on the discussion and direction from tonight's meeting, ICS would present the "dig once" option, including ON, along with an estimated budget. ICS President Faulkner stated that the preliminary project schedule includes multiple design phases. If a decision is made on December 16 to pursue the "dig once" future -ready option, with ON, an estimated budget will be provided, and the design can then be developed within the set budget. Chief McCarthy added that this would be the stage when the community could provide input into the design process. Councilor Maczko stated he would like to see in the December 16 presentation the process for community involvement. I_\�7II�I l: ►1i7� �I�I�YII Councilor Lorberbaum made a motion to adjourn the work session, and the motion was seconded by Councilor Paper. Motion carried. The meeting adjourned at 6:47 p.m. 04 Ste anie . Levine, Mayor ATTEST: � N cy BOper, City Clerk December 2, 2025, City Council Work Session Minutes Page - 7