2022-02-22 Council Work Session Packet CITY OF MENDOTA HEIGHTS
CITY COUNCIL
TJ WORKSESSION AGENDA
Tuesday, February 22, 2022 a 4:00 PM a Mendota Heights City Hall
1. Call to Order
2. Discussion Items
A. Dakota County Regional Roadway System Visioning Study
B. Sewer Rate Study
C. Zoning Ordinance Update Process Overview
D. Human Resources Policy Updates
a. Parental Leave Policy
b. Post-Employment Health Care Savings Plan Policy
E. Interacting with City Council
a. Public Correspondence and the Public Record
b. Coffee with Councilor similar opportunity
c. Establishment of a standing monthly work session
3. Adjourn
page 2
City Council Work Session Memo
2A.
DATE: February 22, 2022
TO: Mayor, City Council and Parks and City Administrator
FROM: Ryan Ruzek, Public Works Director
SUBJECT: Dakota County Regional Roadway System and Visioning Study (RRSVS) update
INTRODUCTION
At the February 22 work session, the City Council will receive a presentation on the Dakota
County Regional Roadway System Visioning Study.
BACKGROUND
The Regional Roadway System Visioning Study is a joint planning effort lead by the Cities of Eagan,
Inver Grove Heights, Mendota Heights and Sunfish Lake, Dakota County, and the Minnesota
Department of Transportation (Mn/DOT), with participation of the Metropolitan Council and the
Federal Highway Administration (FHWA).
The overall goal of the study is to develop a long-term roadway system vision that is supported
by all jurisdictions and balances land use and transportation improvements for the study area.
Significant growth is expected within the study area over the next 20 years and beyond, based
on current comprehensive plans. In addition, growth beyond the immediate study area will also
contribute to area roadway needs. If the transportation system remains as it is today and this
growth occurs, significant congestion and safety issues are anticipated to occur on key arterials.
In addition, cut-through traffic will likely increase on residential collector streets to avoid these
problem areas. A coordinated plan is necessary to handle future growth and development,
balance impacts and provide an overall transportation system that supports regional as well as
local transportation needs.
Attached for your information is Resolution 2010-48 which highlights the Mendota Heights
response to the original study from 2010.
REQUESTED ACTION
Dakota County consultant, Kimley-Horn will present on the update process of the revisited study.
Council will have an opportunity to ask questions and provide recommendations to the study.
page 3
CITY OF MENDOTA HEIGHTS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 10-48
A RESOLUTION DISCUSSING THE REGIONAL ROADWAY SYSTEM
VISIONING STUDY
WHEREAS, Dakota County partnered with the Minnesota Department of
Transportation, the Metropolitan Council, the Federal Highway Administration, the City
of Eagan, the City of Inver Grove Heights, the City of Mendota Heights, and the City of
Sunfish Lake to conduct a transportation study in northern Dakota County with the goal
of developing a long-term roadway system vision that is supported by all jurisdictions
and balances land use and transportation improvements for the study area based on
projected growth in Eagan and Inver Grove Heights; and
WHEREAS, the City of Mendota Heights has participated in this study process
with staff representatives, elected officials and interested residents at all stages of the
study; and
WHEREAS, the City of Mendota Heights has continually stated its objection to
an interchange at Delaware Avenue and I-494 and expressed concerns about related
issues; and
WHEREAS, the City of Mendota Heights has participated in all three public
open houses and the two neighborhood meetings held on this study; and
WHEREAS, the City of Mendota Heights formed an ad-hoc committee that
included membership from the city council, city staff, residents, Sunfish Lake and a
contract professional to track the progress of this study and ensure that the city's position
was made clear; and
WHEREAS, the City of Mendota Heights fully supports the need to undertake
planning in order to prepare for and respond to future growth.
NOW THEREFORE BE IT RESOLVED,the City of Mendota Heights offers
the following comments to Dakota County's draft recommendations on the Regional
Roadway System Visioning Study:
1. Supports the recommendation of a future interchange being placed at Alternate E,
approximately '/4 mile east of the current Delaware Avenue interchange. Any
potential future interchange at Delaware Avenue will not be supported by the City
of Mendota Heights.
2. Any future improvements to Delaware Avenue must be driven by the City of
Mendota Heights. The character of Delaware Avenue is unique and best
page 4
understood by the city and our residents. The local government unit is best suited
to determine any future changes.
3. Mendota Heights supports the right of Eagan and Inver Grove Heights to develop
their infrastructure within the Metropolitan Council's approved growth limits
while at the same time we encourage them to develop the transportation element
of this planning totally within their city limits. It has been represented to the City
of Mendota Heights by Dakota County staff that the growth projections in Eagan
and Inver Grove Heights are based on their approved 2030 comprehensive plans
and Mendota Heights is relying on these projections in its decision making
process. The study should be flexible enough to accommodate up or down the
level of infrastructure and financial investment needed as the growth occurs. The
development and investment should be based on actual growth to avoid both
overinvestment and underinvestment.
4. Priority should be given to transportation projects that take place within Eagan
and Inver Grove Heights to internalize traffic flows within the new growth areas.
BE IT FURTHER RESOLVED,that while the City of Mendota Heights
understands that this is a traffic study, the information that has not been studied
including the environmental factors and financial implications, all of the information
needs to be studied before final decisions can be made on all of the recommendations.
BE IT FURTHER RESOLVED, that the City of Mendota Heights intends to
stay fully engaged with this issue in the future to ensure that any plans changes do not
negatively impact the city and its residents. Mendota Heights has enjoyed a positive
relationship with the neighboring cities and the county and believes it is important to
be a part of the decision making process. The transparency in government decision
making that we have experienced with the county and the visioning study is important
to Mendota Heights now and in the future.
Adopted by the City Council of the City of Mendota Heights this Sixth day of July 2010.
ATTEST CITY COUNCIL
CITY OF MENDOTA HEIGHTS
By By
Nancy Bauer, Acting City Clerk John.-J-Jiubera,MAV or
Feb-22
A,
Regional R• . •
VISIONINGD `
CouncilKimley)))Horn City pd.
February 2022
Agenda
• Project Overview
• Traffic Analysis/Forecasting
• Schedule
Regional Roadway System
VISIONING STUDY UPDATE z
1
Feb-22
Project Overview
Study Area
Study area bounded by:
• County Road 30 (Diff ley Rd)
ional Roadway System
VISIONING STUDY UPDATE 4
Tl
Feb-22
Need for Project
• Regional Roadway System Visioning Study (RRSVS) 2010
• Development and transportation improvements
• Viking Lakes development
• TH 55/Argenta intersection
• Lone Oak Rd/701" St West construction
• 2040 Comprehensive Plans
• Less intense development
• Revisit recommendations
Regional Roadway System
VISIONING STUDY UPDATE
Study Goals and Objectives
Goal:
Updated roadway system plan that supports future growth and development
and is supported by affected jurisdictions
Objectives:
1. Support future growth and development
a. Meet existing needs
b. Provide capacity for planned land use
2. Optimize investments
a. Access to regional transportation system
b. Adequately spaced arterial roadways
c. Fiscally responsible
d. Address operations and safety needs
e. Limit impacts to fully developed communities
Regional Roadway System
ism VISIONING STUDY UPDATE e
3
Feb-22
Project Scope
• Develop 2040 traffic analysis and forecasting
• Analyze beyond 2040
• Evaluate alternatives
• 2010 study
• Current and future lane use
• Develop recommendations
• Need and type of each improvement
• Design and timing not studied
• Implementation driven by development and rate of traffic growth
im
V
ional Roadway System
VISIONING STUDY UPDATE 7
Project Process
ScenarioData and Updated
Information Modeling • » EvaluateCollection Analysis Alternatives for-
tation
Improvements
Public Input -I r- Public and 7
Regional Roadway System
VISIONING STUDY UPDATE
4
Feb-22
Traffic Analysis • Forecasting
Forecast Development
�� • More households forecast in 2040 compared to 2030
• Employment forecast in 2040 compared to 2030
• Less retail employment
• More non-retail employment
�j Households 24 234 +210
RetailEmp 839 834 -5
Non-Retail 13,804 15,746 +1,942
Emp
Households 1,783 2,309 +526
Retail Emp 1,784 442 -1,342
Non-Retail 2,204 704 -1,500
Emp
5
Feb-22
2030 and 2040 Traffic Forecasts
Roadway 2007-2030 2014-2040
Classification Growth Growth
Interstate 22% 7%
• ' Trunk Highway 38% 27%
Local 133% 38%
Tota 1 51% 21%
• Lower growth rate compared to 10 years ago
• Some anticipated growth has occurred since
2014
• Less remaining growth to meet future targets
Beyond 2040 Forecast - Households
0�� • Most residential development complete by 2040
a.
•r
eau ♦.,jr
r . I
Legend =;I�•'�•'
1 Dot=20 Households2018
j♦
2040 Growth N'.i, .• •.�. f• j•�ice•.
Ultimate Growth _ • •j •a, • •';•
TAZ Boundary'•% �:�•_
6
Feb-22
Beyond 2040 Forecast - Retail Employment
• Most retail anticipated to fill in by 2040
_ � . ' mow, • �.;. .
Legend
• - fcdae• i �....
•i
1 Dot=4 Retail Em
P
• I
2018
r .••
• 2040 Growth '= ;�I i, •••S,v,r • ,
• Ultimate Growth • :•o►•• Y .• ! •
TAZ Boundary SaSLx _fl • ,R
Beyond 2040 Forecast — Non-Retail Employment
• Trend away from multi-story office to warehouse
• - and light industrial
• �.� nti
`t,•��,I••r,• yr, ` .• • • • ` • .f .
w
Legend 'M:' r.�« •♦;'! .. +,�� -•--._....
1 Dot=20 Non-Retail Emp s .;•A ',.• • �'.r
2018 �: •. •:.•'..' ...
2040 Growth - 1,-
Ultimate Growth - ••
TAZ Boundary ti ♦ ,
Feb-22
Alternative Transportation Improvements
• 18 alternative improvements
analyzed, including.
• 1-494/Argenta interchange
• TH3 ......... a .
• TH 149
1.
Regional Roadway System 1
VISIONING STUDY UPDATE is
Schedule
Feb-22
Schedule
2021 2022
Sep Oct Nov Dec Jan Feb Mar Apr
Exisiting conditions
data collection&review
Growth&development
evaluation
Traffic modeling
&analysis
Environmental AIIIIIIIIIIIII
screening
Develop alternatives
Evaluate alternatives
-
Recommend
alternatives
Public involvement
Open Houses
Regional Roadway System
VISIONING STUDY UPDATE 17
Questions?
page 5
City Council Work Session Memo
DATE: February 22, 2022 2B.
TO: Mayor, City Council and Parks and City Administrator
FROM: Ryan Ruzek, Public Works Director
SUBJECT: Sanitary Sewer Rate Billing Structure
INTRODUCTION
At the February 22 work session, the City Council will receive a presentation on the Sanitary
Sewer Rate Study from Ehlers and Associates.
BACKGROUND
The city of Mendota Heights owns and operates a sanitary sewer collection system and bills
residents a rental fee for use of this system.
The city maintains approximately 74 miles of sewer mains and six sanitary sewer lift stations
which collect and transports sewage to the Met Council Environmental Services (MCES) Metro
treatment plant. The Mendota Heights system had 517.56 Million gallons of flow in 2020
resulting in a treatment charge of$1,387,527. The sewer utility collected $2,324,141 in utility
fees in 2020.
The Mendota Heights billing structure was established in 1981 and is complicated by having
approximately 30 subcategories within its billing structure versus a standard rate based on
actual usage. The base unit billing is also not conducive to promote water conservation as low
water users pay a similar rate as high water users. There are also concerns with establishing
deduction rates at commercial properties due to irrigation usage. The deduction is not a
consideration for residential properties as their rate is set by their winter usage amounts.
REQUESTED ACTION
Ehlers and Associates will present on the update billing structure. Council will have an
opportunity to ask questions and provide recommendations to the study which would be then
brought back to City Council at a regular meeting for adoption if the Council concurs with the
alternative billing. Certain properties are estimated to receive large increases which should also
be discussed for a potential phase in of the new fees.
2/23/2022
9*iEHLERS
PUBLIC FINANCE ADVISORS
Mendota Heights
Sewer Utility Rate Study
February 22, 2021
lg'EHLERS
Sewer Fund
• Enterprise Fund
✓ Meant to operate like a business
✓ Should have sufficient cash for
• Capital outlays
• Operations
• Replacement reserves
• Debt, if any
EEHLERS
I
2/23/2022
Sewer Fund
• Have a minimum of:
✓ 6 months of operating expenses including depreciation
✓ Following year's bond/debt payments, if any
✓ Funding for capital equipment
✓ Flexibility to accommodate unforeseen repairs
E EHLERS
Why did the City undertake a Rate Study?
• Ensure financial sustainability
✓ Adequate cash reserves
✓ Fund long-range capital plans
• Simplify Rate Structure
• Ensure equity across user classes
EEHLERS
2
2/23/2022
What is a Cost of Service Rate Study?
• Rate study uses "cost of service" methodology
• Fairly allocates cost of system to different user classes
• Fairly allocates cost of system into two rate components:
✓ Base Charge
• Pays for fixed costs that don't change with volume flow
✓ Volumetric Usage Charge
• Rate per 100 cubic feet of domestic strength flow
E EHLERS
Fixed Costs
• What are they?
✓ Staff
✓ A portion of fixed assets, including equipment/vehicles and depreciation
✓ Supplies, insurance and utilities
✓ Cost to send out the bills
• Why important?
✓ Include in Base Charges to ensure everyone is paying regardless of
usage
1 EHLERS
3
2/23/2022
Break-Down of Sewer Costs
2022 Budgeted Sewer Costs
Allocated fixed
costs equals $612,000 $429,882
$543,417 Operating (Excluding MCES)
MCES
$1,471,365 Capital and Depreciation
22g EHLERS
Current Sewer Rates and Billing
• Bill quarterly
• Minimum usage:
✓ 20 units for residential user class
✓ Varies depending on meter size for commercial
• Commercial base fee depended on meter size
• Multi-family:
✓ Some customers billed base fee by meter size
✓ Some customers billed residential base fee multiplied by units
EEHLERS
4
2/23/2022
Current Sewer Rates and Billing
• Usage charges:
✓ Residential billed actual usage based on winter quarter
✓ Commercial billed actual usage
✓ Multi-family customers billed actual usage, if charged base fee by meter
size
✓ Multi-family customers billed regardless of usage, if charged multiple
residential base fees
E EHLERS
Current Sewer Rates
R Rase Namc I TI %Nowt/MA lrnum/ C
N 1 Unl[A nun[ A
Pe Carr
1 Rea Brrev,Sewer
71 Res$ewE1' S83 M
T.,I lM[_ $4 167_
i •T,cr 2 Un1r S3.S0
___
11.--..-. Re+Well Fl:ru 583.75
l2 ��.vcr t>ur 1 M F—I D SI5.023
i r 1-Unl[ $5.023
11 r 2 lFnrr. S4.20
1 .+Vmpfumy. A _ VIM
t D 4 1 mum - }125.40......
$3.50
21 . I--. nl............ $144.41
�3 57.30
11
53,s0
27 Sew4r 12 �1 , �„�m 5750.85
x4 Sewrer2 nn�r��r�nm s7nt73
r. $1 50
Lon[ Sisa
ti. .. - I mr 583.75
S6281.25
$6281.25
V4
r..r r+�r�l Al S150.48
1'nu $4.x0
5$42,10
54.20
+n'' 15.:wcr Wcll N4..c 5351.k8
38.--. 25e.+�r\t•'v II _... Aa+c SIll0.90
Ig", LERS 10
5
2/23/2022
Findings
• Sewer Fund has insufficient cash balance, needs increases
• Minimum fees too high
✓ Low volume users subsidizing higher volume users
• Multi-family mixed in with commercial class
• Multi-family properties billed differently within "multi-family user
class"
• Rate structure overly complicated
1 EHLERS
111111
Key Assumptions
• Utilized 3 years of usage data
• 2-3% inflation on City's operating expenses
• Rate re-structure to user charges starting Q2 2022
✓ 2% inflationary increases to rates 2023 going forward
• Future Capital Improvements for existing infrastructure
✓ Annual sewer lining and cleaning placeholders
✓ No large reconstruction costs included
• MCES fees inflated annually at 3%
✓ Historical average of 2.3% since 2018
1 EHLERS
6
2/23/2022
Summary Recommendations
1 . Eliminate minimum usage included in base fee
2. All residential and commercial metered customers would have the
same base fee, by eliminating base fee by meter size for
commercial customers
3. Create a multi-family user class. The new classification would
include a base fee multiplied by the number of residential units
serviced by the account, plus the volumetric charge
4. Residential and multi-family accounts would be billed based on
winter quarter average. Commercial accounts would continue to be
billed based on actual usage
1� ,GHLERS
Study Results: Proposed Sewer Rates
Residential Quarterly Rates Existing 2021 Proposed 2022
Fixed(Existing Meter Charge Includes Minimum Usage and Proposed Does Not
$ 83.75 $ F46
Usage-Based on Winter Quarter Average
Per 100 Cubic Feet $ 3.50 $
Quarterly
Fixed-Per Dwelling Unit $ 83.75 $ 25.6
Usage-Based on Winter Quarter Average
Per 100 Cubic Feet $ 3.50 $ 4.67
QuarterlyCommercial
Fixed(Existing Meter Charge Includes Minimum Usage and Proposed Does Not
3/4"Meter $ 125.40 $ 25.64
1"Meter 144.41 25.64
5/4"Meter 194.85 25.64
3/2"Meter 350.85 25.64
2"Meter 701.75 25.64
3"Meter 1,403.45 25.64
Usage
Per 100 Cubic Ft. $ 3.50 $ 4.67
6 EHLERS
7
2/23/2022
Summary Recommendations
5. Maintain the 2 "Yo surcharge for outside customers
6. Unmetered accounts will be charged a flat rate based on meter
size. Each charge includes the base fee, plus an average amount
of usage for that meter size (i.e. Residential unmetered customer
includes 14 volumetric units, Sewer 1 unmetered includes 70 units,
Sewer 2 includes 200 units)
7. Change the late fee from a flat fee of $4.00 to a fee based on 5% of
total bill.
8. Update the late fee policy from 21 days to 30 days
E EHLERS 15
Impact — Residential Usage Patterns
Residential Quarterly Usage 2020
250
200
44% 56%
150
100
Soil � IIll � lllll
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1718 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
EEHLERS
8
2/23/2022
Impact — Residential Annual Bills
See handout
Current Classification Description Existing 2021 Proposedr Quarter
10 RES SEWER HIGH SEWER USER
Sewer(10,000 cu ft/Annual) $ 405.00 $ 569.56
$Increase/(Decrease) 164.56 $ 41.14 $ 13.71
10 RES SEWER AVERAGE SEWER USER
Sewer(5,600 cu ft/Annual) $ 335.00 $ 364.08
$Increase/(Decrease) 29.08 7.27 2.42
10 RES SEWER LOW SEWER USER
Sewer(2,800 cu ft/Annual) $ 335.00 $ 233.32
$Increase/(Decrease) (101.68 (25.42) (8.47
Co"'W&ERS, 17
Impact — Multi-Family Annual Bills
Current Classification Units Description Existing 2021 Proposed 2022
SEWER 2 60 DAKOTA COUNTY CDA-720 LINDEN ST
Sewer(211,600 cu ft/156,000 cu ft) $ 7,406.00 $ 13,438.80
$Increase/(Decrease) 6,032.80
SEWER 3 65 DAKOTA COUNTY CDA-730 S PLAZA DR
Sewer(232,600 cu ft/197,200 cu ft) $ 8,141.00 $ 15,875.64
$Increase/(Decrease) 7,734.64
SEWER 3/2 46 WHITE PINE SENIOR LIVING-745 S PLAZA DR
Sewer(88,400 cu ft/67,600 cu ft) $ 3,094.00 $ 7,874.68
$Increase/(Decrease) 4,780.68
SEWER 3/2 12 DAKOTA ADULT'S INC 2031-VICTORIA RD S
Sewer(59,100 cu ft/48,800 cu ft) $ 2,068.50 $ 3,509.68
$Increase/(Decrease) 1,441.18
50 CONDO/TOW 139 MENDOTA PLAZA A 720 S PLAZA WAY
Sewer(308,000 cu ft) $ 46,565.00 $ 28,639.44
$Increase/(Decrease) (17,925.56)
31 Sewer 2300 75 LEXINGTON HTS
Sewer(376,400 cu ft) $ 25,125.00 $ 25,269.88
$Increase/(Decrease) 144.88
26 Kensington 8 KENSINGTON MAN
Sewer(30,800 cu ft) $ 2,680.00 $ 2,258.84
$Increase/(Decrease) (421.16)
g"'RHLERS 18
9
2/23/2022
Impact - Commercial Annual Bills
Current Classifiration Description Existing 2021 Proposed 2022
23 SEWER 3/2 APPLIED COATING TECH
Sewer(2,114,700 cu ft/Annual) $ 74.014.50 $ 98,859.05
$Increase/(Decrease) 24,844.55
25 SEWER 3 WU XI APPTEC INC
Sewer(1,541,800 cu ft/Annual) $ 53,963.00 $ 72,104.62
$Increase/(Decrease) 18,141.62
25 SEWER 3 LLOYD'S FOOD PRODUCTS
Sewer(1,541,700 cu ft/Annual) $ 53,959.50 $ 72,099.95
$1 ncrease/(Decrease) 18,140.45
24 SEWER 2 MN KNITTING MILLS
Sewer(512,200 cu ft/Annual) $ 17,927.00 $ 24,022.30
$Increase/(Decrease) 6,095.30
23 SEWER 3/2 SILESTONE C&C NORTH AMERICA
Sewer(466,000 cu ft/Annual) $ 16,310.00 $ 21,864.76
$Increase/(Decrease) 5,554.76
25 SEWER 3 COURTYARD BY MARRIOTT
Sewer(360,700 cu ft/Annual) $ 12,624.50 $ 16,947.25
$Increase/(Decrease) 4,322.75
24 SEWER 2 MENDOTA PLACE LLC
Sewer(254,200 cu ft/Annual) $ 9,427.23 $ 11,973.70
$Increase/(Decrease) 2,546.45
34 3/4 SWR OUT IND SCHOOL DIST 197(SPORT COMPLEX) (20%surcharge rate structure)
Sewer(230,400 cu ft/Annual) $ 9,827.2y $ 13,034.69
Ig-'WiLERS $1 ncrease/(Decrease) 3,207.41 19
Comparing to Other Communities
• Comparing rates doesn't tell whole story
• All communities are unique
✓ Population
✓ Changes in topography
✓ Age of existing infrastructure
✓ Development vs. Redevelopment communities
✓ Surface Water vs.Aquifer
✓ Water treatment at well-head vs. water treatment plant
✓ City policies differ
• Fund Balance
Bonding
EHLERS 20
10
2/23/2022
Community Comparison
Quarterly Residential User Comparison
$140.00
$120.00 1
$100.00 -
$80.00
$60.00
$40.00
$20.00
$0.00
Mendota Heights Mendota Heights West St,Paul Golden Valley South St,Paul Falcon Heights Inver Grove
(Current) (Proposed) Heights
■Sewer Base Fee(Or Minimum) ■Sewer Volume Charge(1,4000F)
E EHLERS 21
Community Comparison - Late Fee
Residential Late Fee Comparison $83.75 Quarterly Bill
$9.00 12.00%
$8.00
10.00%
$7.00
$6.00 8.00°1A
55 00
6.00°h
53.00 4.00°h
$2.00
2.00%
$1.00
$- 0.00°i
Mendota Heights Mendota Heights West St.Paul Golden Valley South St.Paul Falcon Heights Inver Grove
(Current) (Proposed) Heights
IIIIIIIIIIIIIIII I-ate Fee -Rate
Ig" LERS 22
II
2/23/2022
Sewer Cash Balance
Sewer Utility Projected Cash Balance
$2,000,000
51,800,000
51,600,000
S 1,400,000
$1,200,000
$1,000,000
S800,000
5600,000
$400,000
5200,0000
' ' ■ '
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Target minimum working capital ■ Actual working capital-cash balance
E EHLERS
Next Steps
Tonight - Feedback
• Discuss initial recommendations
Ehlers to incorporate feedback, revise plan if necessary
Adopt rates for 2022
Future:
• Review after year 1
• Update rate study every 2-3 years
EEHLERS
12
2/23/2022
Let's Talk!
1 EHLERS
13
page 6
City Council Work Session Memo
DATE: February 22, 2022 2C.
TO: Mayor and City Council
FROM: Cheryl Jacobson, City Administrator
Tim Benetti, Community Development Director
SUBJECT: Zoning Ordinance/Code Update Process Overview
INTRODUCTION
At the February 22 work session, staff will provide the City Council with an overview of the
process and timeline for updating the Mendota Heights Zoning Ordinance (City Code Title 12).
BACKGROUND
As part of their priority to Create a Vision for City Development and Redevelopment Areas, the
City Council has identified the following strategy and resulting action to complete in 2022:
Strategy: Create a clear and understandable Zoning Code in order to meet projected
growth and market demands.
Action: Conduct a comprehensive review and revise, as needed, Zoning Code
Ordinances to reflect changes made in the 2040 Comprehensive Plan (e.g.
MRCCA, Institutional Zoning, general text revisions).
The adoption of the 2040 Comprehensive Plan serves as a starting point for the updating of the
City's Zoning Code Ordinances. The City's 2040 Comprehensive Plan received Metropolitan
Council approval in July, 2021 and the City Council formally adopted the Mendota Heights 2040
Comprehensive Plan under Resolution 2021-64 on August 4, 2021.
Once a city adopts a comprehensive plan, it must strive to attain certain development goals
provided in the plan. The City's Zoning Code translates the land use goals of the Comprehensive
Plan into an ordinance or law which regulates the way lands may be used or developed. Updating
these ordinances is key to providing consistency with the new comprehensive plan.
City staff will be also request the Council support the hiring of Swanson-Haskamp Consultants
(SHC) of St. Paul, the same planning consultants that assisted staff in completing the 2040 Plan.
SHC will once again assist city staff in the research, analysis and preparation of ordinance
updates, and present them to the Planning Commission and City Council for official review and
approvals. Our goal is to have these updates presented by August/September, 2022.
REQUESTED ACTION
Informational item.
CITY OF MENDOTA HEIGHTS
ZONING CODE UPDATE PROCESS
1. Zoning Ordinance Update Issue ID and Kick-off (February - March)
Solicit feedback and opinions from City Council, Planning Commission and city staff with
the objective of.
Understanding and documenting tensions and concerns relating to the city
code.
Y Addressing specific known issues and to solicit general feedback regarding:
How often the responder uses the Zoning Code
• How easy or difficult is the code is to navigate and use
• Concerns/opportunities for specific zoning districts
• Development/Performance Standards
• Concerns/opportunities for specific uses
Y Understanding of Administrative processes and requirements
Questionnaire responses will be summarized and compiled. The responses will be used
to establish the priority sections, topics and areas of the Zoning Ordinance update
process.
2. Prioritization and Workplan Development (March)
Using the questionnaire responses, a priority list of zoning sections and topics to be
addressed will be prepared and a project work plan will be developed which will include
the roles and responsibilities needed to complete the identified priorities.
3. Engagement (March - June)
Four "Speed Sessions" will be set up with the Planning Commission and/or City Council.
The Speed Sessions will be organized by Ordinance section. The ordinances/topics to be
considered within each session will be based on the feedback obtained in step 1 and the
priorities established in step 2. The preliminary Ordinance Section "buckets" are:
• Zoning Districts (e.g. dimensional standards, areas, may include overlays such
as PUD)
• Building and Performance Standards (e.g. design standards in Mixed-Use
areas, residential or commercial, etc.)
Allowed Uses (e.g. what uses need specific use standards, table of uses
refinement, etc.)
1
+ Administration and Process (e.g. update process for variances or CUPS for
clarity and consistency with state statutes.)
4. Drafting (March - July)
Based on feedback obtained during the speed sessions a full draft of ordinance updates
will be prepared. Objectives of this step include:
• Prepare comprehensive ordinance updates that are consistent with the 2040
Comprehensive Plan
• Prepare a comprehensive draft to present to the Planning Commission
• To respond to information obtained through the Issue Identification
Questionnaire and make sure commission and council feel heard in the
process.
+ To clearly demonstrate to the Planning Commission and City Council the
changes and how they will be implemented.
5. Engagement and Adoption (July - September)
A full draft will be presented to the Planning Commission and City Council (2 times for
each body). One round of comprehensive, substantive edits by each body is planned,
The City Council will review first draft after the Planning Commission's recommendations
and edits. This final stage will also include a public hearing, optional open house or
other online engagement and then final adoption by the City Council
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page 7
City Council Work Session Memo
2D.
DATE: February 22, 2022
TO: Mayor and City Council, City Administrator
FROM: Kelly Dumais, Assistant City Administrator
SUBJECT: Human Resources Policy Update
INTRODUCTION
Staff is presenting two policy changes, aimed to support the city's employee recruitment and
retention efforts, to the City Council for feedback and direction. The first is an amendment to
the city personnel code, Section 20 regarding Parenting Leave, and is an update to reflect
federal requirements for parental leave as well as to propose the addition of a 3-week paid
parental leave policy for city employees.
The second policy amendment would be regarding the city's Post Employment Health Care
Savings Plan policy. This amendment would take any extended disability leave that an
employee had that exceeded the cap and transfer it into a contribution to that employee's post
employment health care savings account.
BACKGROUND
Parental Leave
Federal Law requires that employers provide a minimum of 12 weeks of unpaid job protected
leave for new parents. The benefits of providing this leave are numerous, both to the individual
as well as to the organization. However unpaid leave also creates many challenges for new
parents who are managing additional new costs of parenthood, potential medical expenses,
etc.
In addition to employees losing out on the opportunity to spend time with, bond, and care for a
new child, returning to work before 12 weeks can create additional challenges for the
organization. New parents are not functioning at their peak performance due the physical,
emotional, hormonal, and mental stress of new parenthood. Employees trying to work in those
conditions are at a higher risk for making mistakes or errors which could have a range of
consequences for the city.
The proposed policy amendment increases the unpaid leave from 6 to 9 weeks and adds 3
weeks of paid leave which would then equal the mandatory total of 12 weeks of leave. The
proposed paid parental leave could be taken intermittently by the employee within their 12
week leave.
page 8
Figure 1.
Paid parental leave is not a new benefit, Agency leave paid
it has been added to many local
Federal workers 12 weeks
government benefit packages in recent
years. This shift has come mostly after Metropolitan Council 6 weeks
many private businesses, the state and City of St Paul 4 weeks
federal government, and other agencies City of Minnetonka 4 weeks
have also adopted paid parental leave City of Minneapolis 3 weeks
policies. In a competitive job market, Dakota County 3 weeks
employers are competing not only with
other public agencies but also with Hennepin County 3 weeks
private industry as well. Ramsey County 3 weeks
Washington County 3 weeks
Staff surveyed surrounding communities City of St. Louis Park 3 weeks
and compiled an incomplete list of
City of Eden Prairie 2 weeks
Minnesota Cities and Counties with paid
parental leave policies and the duration City of Richfield 2 weeks
of those leaves (Figure 1). City of Clearwater 2 weeks
City of Edina 2 weeks
Post Employment Health Care Savings City of Hopkins 2 weeks
Plan Policy Scott County 1 week
The City has a cap of 640 hours of
extended disability (sick) leave that an employee can accumulate. The city provides full time
employees with 4 hours of extended disability leave a month so employees who have
accumulated the max are long term employees of the city. If a full-time employee did not use
sick leave for 13.3 years then they would hit the cap.
Currently, extended disability leave has no cash value upon termination or retirement,
employees are not compensated for any unused extended disability leave upon separation from
employment, and any hours in excess of the 640 maximum while employed are forfeited by the
employee.
Employees who have served with the city for a long time provide an incalculable benefit in
experience, history, and knowledge of the community. The proposed policy amendment
provides for the City, on behalf of an employee, to make an annual contribution of extended
disability leave hours over the maximum accrual allowed to the employee's existing Post
Employment Health Care Savings Plan account.
BUDGET IMPACT
Parental Leave Policy
This item does not require any additional funding as the salaries for employees are a budgeted
expense. An employee utilizing paid parental leave would not need to use accrued time for
those three weeks; this savings to the employee represents the cost to the city.
Post-Employment Health Care Savings Contribution Policy
Extended Disability Leave is a budgeted expense within the City's annual budget. The number
of employees who reach the cap for extended disability is minimal. There are 3-4 employees
who may be eligible in the next five years depending on how much leave they take for other
page 9
purposes. For employees that would reach this cap, the excess leave balance would be
converted into an additional contribution.
ACTION REQUESTED
Staff seek guidance on the proposed policies including guidance regarding the length of time
proposed for the paid parental leave.
page 10
DRAFT
City of Mendota Heights
Post Employment Health Care Plan Policy
for Non-Union Employees
Purpose
The City of Mendota Heights permanent non-union employees are eligible to participate in the
Minnesota Post Employment Health Care Savings Plan (HCSP) established under Minnesota
Statutes, Section 352.98 and as outlined in the Minnesota State Retirement System's Trust and
Plan Documents. The purpose of this program is to allow employees to save money on a tax-
free basis to pay for health-related expenses after separation from public employment. The
provisions of this Policy are intended to be in compliance and consistent with applicable state
and federal law. Such law controls if there is any conflict with a provision of this Policy.
Definitions
Health Care Savings Plan: The Health Care Savings Plan (HCSP) is an employer sponsored
program that allows employees to save money, tax-free, to use upon termination of public
employment to pay for eligible health care expenses for themselves, their spouse and legal tax
dependents, and their children up to their 26th birthday regardless of their marital status,
status as a full-time student, or place of residence.
PERA Service Retirement: An employee will receive an unreduced benefit from PERA when
they reach full retirement age. An employee may retire prior to that date, but their pension will
be permanently reduced by doing so. The eligibility requirements for full and reduced benefits
through PERA are as follows:
Full Retirement (Unreduced Benefits):
Full retirement age for individuals first hired into a position covered by PERA or another
Minnesota public retirement plan prior to July 1, 1989, is 65. For those hired after that date, full
retirement age matches full retirement age under Social Security, but no later than age 66.
Individuals hired prior to July 1, 1989, also qualify for a full, unreduced pension when their age
plus years of public service total at least 90 (Rule of 90), regardless of age.
A minimum of one year of public service is required to qualify for a retirement benefit for active
members at or over their full retirement age.
Early Retirement (Reduced Benefits):
• Employees who are at least age 55 and have three or more years of service (five years if
hired after June 30, 2010); or
• An employee who has 30 or more years of service, regardless of age, if first hired prior
to July 1, 1989.
page 11
DRAFT
For additional information on PERA retirement can be found on PERA's website at
www.mnpera.org.
Permanent Non-union Employees: Permanent full-time employees are employees of the City
who have passed the initial probationary period and, at the time of separation from
employment, are working full-time in the service of the City, as defined and determined by the
City.
Permanent part-time employees are employees who have passed the initial probationary
period and, at the time of separation from employment, are working less than full-time and a
minimum of twenty (20) hours per work week in a position established by the City Council.
"Permanent" employees are those whose positions are not temporary (including substitutes) or
seasonal in nature, as defined and determined by the City.
Total Gross Pay: Gross pay includes regular pay, overtime pay, and other taxable earnings.
Policy
All permanent full time and part time employees will participate in a Minnesota Post
Employment Health Care Savings Plan (HCSP). The terms for participation are as follows:
Participation: All permanent non-union employees are required to participate in the HCSP
program.
Employee Contribution:
a. Gross Pay Contribution: Employees in their first year of employment with the City of
Mendota Heights are not eligible to contribute. Thereafter, permanent non-union
employees will contribute 1% of their total gross pay each pay period.
b. Extended Disability Contribution: Employees who reach the cumulative maximum of
640 hours of extended disability leave will have any excess leave balance converted
annually into a contribution that is equal to their rate of pay for the hours of leave.
Severance:
a. Leaving city employment for another employer: Employee contributes the value of 50%
of the employee's accrued and unused hours of Vacation, Personal Leave and
compensation time.
b. PERA Service Retirement from City: Employee contributes the value of 100% of the
employee's accrued and unused hours of Vacation, Personal Leave, and compensation
time up to the maximum established for each leave bank type.
Waiving participation:
An employee may opt out of the plan if they:
• Are eligible for TRICARE retiree benefits or V.A. medical benefits due to a service-
page 12
DRAFT
connected disability.
• Are a foreign national who plans to return to their country of origin upon
termination of employment.
• Have comprehensive health care insurance through another documented source.
The insurance coverage must be provided by a source other than a current employer who is
sponsoring the HCSP. The insurance must be provided until death and 70 percent of the cost is
covered by the employer.
To opt out of the plan, the employee must complete a waiver form and provide supporting
documentation. MSRS will review the request to determine if the employee is eligible to waive
participation. An employee's election to waive participation is irrevocable.
Approved: 05-21-2013
Revised: XXXX
page 13
DRAFT
SECTION 20. Parenting Leave
20.1 Purpose
In recognition of the importance of family and work life integration, it is the policy
of the City of Mendota Heights to provide paid and unpaid parental leave benefits
to eligible employees for the birth of an employee's child or the placement of an
adopted child within an employee's home.
20.2 Policy
Eligible employees may receive up to 12 weeks of job protected parenting leave
following the birth or adoption of a child consisting of 3 weeks of paid parental
leave and 9 weeks of unpaid parental leave.
20.3 Eligibility
Employees who work an average of twenty (20) hours or more per week and have
been employed more than one year are entitled to take a leave of absence in
connection with the birth or adoption of a child. Employees may use this leave once
per rolling 12-month period. Parental Leave is not meant to be a replacement for
any other leave for which an employee is eligible and will run concurrently with any
FMLA balance the employee has.
20.4 Benefit
a. Paid Parental Leave: The paid parental leave benefit provides 100% of the
employee's regular base rate of pay for regularly scheduled work hours, for up to
15 working days (or 120 hours) for full-time employees. Multiple births or
adoptions (e.g. twins, etc.) medical conditions, and/or other circumstances will not
increase the length of paid parental leave granted. Part Time eligible employees
are qualified for paid parental leave on a pro-rated basis in accordance with their
budgeted FTE status. Paid Parental leave may be taken intermittently, but it must
be taken within 12 weeks of a qualifying event. It cannot be taken prior to a
qualifying event. Any unused paid parental leave will be forfeited.
For eligible part time employees, paid parental leave will be calculated based on a
pro-rated basis. A weekly average of the hours worked over the 12 months prior
to the beginning of the leave should be used for calculating the employee's normal
work week.
b. Unpaid Parental Leave: In addition to the 3 weeks of paid leave following the birth
of a child, an employee is also entitled to 9 weeks of unpaid parental leave.
Employees are not required to use sick leave during Parenting Leave but may use
accrued leave including, vacation time, compensatory time, extended disability, or
personal leave at their option for any period of this leave. Unpaid parental leave
may be taken intermittently, but it must be taken within 12 weeks of a qualifying
event. It cannot be taken prior to a qualifying event. Any unused unpaid parental
leave will be forfeited.
page 14
DRAFT
An employee granted leave under this policy will continue to be covered under the
City's group health and dental insurance plan under the same conditions and at
the same level of City contribution as would have been provided had they been
continuously employed during the leave period. If there are changes in the City's
contribution levels while the employee is on leave, those changes will take place
as if the employee were still on the job.
The employee will be required to continue payment of the employee portion of all
group insurance coverage's (Short Term Disability, Long Term Disability and any
life insurance policies) other than the City's group health and dental insurance
plan.
Arrangements for payment of the employee's portion of premiums must be made
by the employee with the City. If an employee's contribution is more than thirty
(30) days late, the City may terminate the employee's insurance coverage (subject
to COBRA requirements).
20.5 Exceptions
This policy does not apply to foster parents, surrogate mothers or sperm donors.
20.6 Coordination of Benefits
Paid parental leave will run concurrently with any unpaid leave taken under the
Federal Family and Medical Leave Act and/or Minnesota's pregnancy and
parenting leave law. Employees who receive paid parental leave and who do not
return for work will be subject to reimburse the City for the leave.
An employee granted leave will continue to be covered under the City of Mendota
Heights' benefit plan under the same conditions and at the same level of City
contribution as would have been provided if they had been continuously employed
during the leave period. Employee contributions to any benefit premiums will be
required either through payroll deduction or by direct payment to the City. Benefits
will continue to accrue for the employee similarly to other city paid leaves, i.e.
vacation, extended disability, personal leave.
20.7 Notice
Eligible employees anticipating paid or unpaid leave must submit notice to their
supervisor at least 30 days before the anticipated birth or adoption of the child
whenever possible. An eligible employee will be required to furnish appropriate
medical documentation for the birth of a child. If applicable, the medical certification
requirements for FMLA leave will govern. The medical documentation must be
completed and signed by the individual's health care provider. In cases of
adoption, the employee will be required to furnish appropriate adoption
documentation, such as a letter from an adoption agency, or an adoption certificate
from the attorney.
page 15
City Council Work Session Memo
DATE: February 22, 2022 2E.
TO: Mayor and City Council
FROM: Cheryl Jacobson, City Administrator
SUBJECT: Interacting with the City Council
INTRODUCTION
Staff will provide an introduction to and seek Council input on:
• The development of guidelines for community members to interact with the City Council
via written/electric correspondence and the inclusion of such correspondence in the
official record.
• Council interest in establishing a regular schedule of Coffee with Council events or other
ideas to provide opportunities for drop-in conversations with residents.
• Establishing a standing monthly work session meeting.
BACKGROUND
Council/Community Correspondence: Most correspondence (e.g. letters, email) between the
City Council, city staff and/or community members is in relation to a specific item that is being
proposed or discussed at an advisory commission level or by the City Council.
The open meeting law requires that for open meetings, at least one copy of any printed
material prepared by the public body and distributed or available to all members of the public
body also be available in the meeting room for inspection by the public. This requirement does
not apply to materials that are classified as other than public under the Government Data
Practices Act. (Link to source: https://www.house.leg.state.mn.us/hrd/pubslopenmtg.pdf)
The receipt of correspondence, the timing of advisory commission or city council meetings, and
the inclusion of correspondence in a packet can be challenging. Using the Open Meeting Law
and Data Practices statutes as a basis, staff is recommending the establishment of
guidelines/directions/timelines for the public to submit correspondence for the public record.
Coffee with Council: Similar to previous sessions of Coffee with a Cop, Coffee with Council or
similar event has been suggested as a means to provide opportunities for drop-in conversations
with residents. Council will be asked to provide input on establishing this type of opportunity.
Standing Monthly Work Session: The scheduling of city council work sessions can be
challenging given Councilor calendars and space availability. Staff is recommending the Council
consider establishing a standing monthly work session meeting (e.g. one hour before the
second city council meeting of the month).