--- ## author: Sara Ludwig date: D:20260619082700-05'00' --- ## WORKSHOP MINUTES ## OAKDALE CITY COUNCIL ## JUNE 9, 2026 The City Council held a Workshop on Tuesday, June 9, 2026 at Oakdale Discovery Center, 4444 Hadley Avenue North, Oakdale, Minnesota. The meeting began at 5:15 PM. ## Present: Mayor Kevin Zabel ## Council Members: Kari Moore ## Andy Morcomb ## Gary Severson ## Katie Wrich ## City Staff Members: Chris Volkers, City Administrator ## Sara Ludwig, City Clerk ## Jake Foster, Assistant City Administrator ## Mikaela Huot, Finance Director ## Melanie Lee, Human Resources Director ## Judie Maas, Accountant ## Luke McClanahan, Planning Manager ## Nick Newton, Police Chief ## Lori Pulkrabek, Communications Manager ## Mark Statz, City Engineer ## Ryan Stuart, Police Captain ## Cory Tietz, Public Works Director ## Miranda Williams, Accountant ## Kevin Wold, Fire Chief ## Others Present: Mike Healy, Project Architect, BKV Group ## Jackie Huegel, Principal with LB|Carlson ## Joe McCormick, Project Manager, Kraus-Anderson ## REVIEW OF 2025 FINANCIAL AUDIT Finance Director Mikaela Huot introduced Jackie Huegel, Principal with LB|Carlson, and noted that this item is informational only, with the City Council acknowledging receipt of the 2025 Annual Comprehensive Financial Report at their regular meeting later tonight. Ms. Huegel briefly went over the three reports provided to Council, the auditor’s role, and audit results for the year ended December 31, 2025. The City received an unmodified or “clean” opinion which is the desired audit result. No findings to report for internal control and compliance – financial audit and Minnesota legal compliance. Ms. Huegel presented the changes in the governmental fund balances by classification. Mayor Zabel asked what makes up the Restricted funds for the Public Works Facility. Ms. Huegel stated both bond proceeds and local option sales tax revenue. ## WORKSHOP MINUTES ## JU NE 9, 2026 ## PAGE TWO In response to Mayor Zabel’s question about the true bottom line of the total governmental funds without one-time outliers, Ms. Huegel noted approximately $40 million. Moving on, Ms. Huegel went over the General Fund year-end fund balance, noting compliance with the City’s fund balance policy for the last three years. In response to Mayor Zabel’s question about the dollar amount represented by an estimated reduction in current fund balance while remaining within the City's fund balance policy that incorporates maintaining a balance of 5.5 months of the subsequent years’ budgeted expenditures for working capital (percentage of 45.83%), Ms. Huot stated an estimated $3-4 million. Regarding the City’s fund balance policy, Mayor Zabel inquired whether the policy applies to the Enterprise Funds. City Administrator Chris Volkers recalled it does not. City staff will look into proposed changes in this regard. Mayor Zabel suggested that staff look into utilizing revenue from the Surface Water Fund, for example, for related stormwater infrastructure improvements on capital buildings. General Fund revenues and General Fund expenditures were reviewed. In response to Mayor Zabel’s question about why taxes were under budgeted, Ms. Huegel stated that the City budgets close to the actual levy amount which does not factor in abatements and delinquent taxes collected in future years. Regarding why Debt Service is included in the General Fund Expenditures, Ms. Huegel explained that the Governmental Accounting Standards Board (GASB) came out with a new requirement that cities classify ongoing or long-term technology subscriptions in this way. Ms. Huegel briefly touched on the summary of changes in net position for the Enterprise Funds. Lastly, Ms. Huegel provided Enterprise Funds highlights and the government-w ide statements. ## POLICE/CITY HALL BUDGET AND VALUE ENGINEERING Ms. Volkers stated that the conversation tonight revolves around value engineering decisions needed to cut project costs, but a larger conversation around revenue sources will take place at the June 25, 2026 Special Workshop. She asked that the Council send any information requests ahead of time so staff can pull together necessary information. Mayor Zabel expressed concern about the order of decision-making in terms of determining revenue sources and weighing in on value engineering items and scope modifications. ## WORKSHOP MINUTES ## JU NE 9, 2026 ## PAGE THREE The bonding amount for the excess project cost above the $18 million local option sales tax revenue was briefly discussed, but ultimately Council will make final decisions at the June 25, 2026 Special Workshop. Joe McCormick, Project Manager with Kraus-Anderson, presented an example of Norman brick versus Roman Maximus brick. Additionally, he noted that the re-design of the underground stormwater system is an allowance item within Bid Package #1. Mike Healy, Project Architect with BKV Group, went over the placement of the site lighting bollards and offered to provide a landscape design identifying the reduced number of plantings. The Council agreed on the following for the value engineering items: • Move forward with all line items marked “pursue”. • Request for additional photos of the acid etched finish on the exterior Police Department garage panels. • Use Norman brick instead of Roman Maximus brick. • Remove interior brick from north elevation of lobby. • Explore cost of solid surface counter tops instead of quartz in non-public areas, for staff tables, on the dais, etc. • Request for illumination study related to reducing the site lighting bollards. • Request for additional information on total cost of Veteran’s Memorial. • Explore alternate funding sources for the Veteran’s Memorial. • Request for additional information on total cost of plantings. ## WETLAND OUTLOTS AND CITY OWNERSHIP Planning Manager Luke McClanahan recapped additional information sent to Council earlier in the day regarding supplemental wetland definitions, research on peer cities, wetland banking, and current City wetland ownership. In response to Mayor Zabel’s question about whether the City needs language in its ordinance to ensure wetland preservation, City Engineer Mark Statz stated that the Wetland Conservation Act process along with staff relaying Council’s intent would be sufficient. In terms of the City’s ability to waive provisions in the Subdivision Code, Mr. McClanahan confirmed that the City Council is allowed to do so per the City Attorney. Ms. Volkers inquired about how Council’s intent becomes a part of the Development Review Committee (DRC) process. Mr. McClanahan suggested outlining specific criteria within the ordinance to allow staff to relay Council’s intent. Council Member Morcomb added that staff could include wetland information in the Development Checklist that accompanies each development application. Mayor Zabel raised concerns about the timing and process given that not all development applications seek Council input until final approvals. ## WORKSHOP MINUTES ## JU NE 9, 2026 ## PAGE FOUR The Council agreed that in most instances the City will maintain control of wetlands in some form whether through an easement or an outlot, and ensure the City has access to the wetland whether owned or not. Council Member Severson was supportive of keeping the process flexible to make the ownership decision on a case-by-case basis. City staff preferred a Council-approved framework that will apply to most developments, with the remaining few being left to Council’s discretion. Council Members Moore and Wrich were strongly supportive of protecting the wetlands in the City. Mr. Statz assured the group that wetlands are extremely well-protected by a collaborative effort among multiple government agencies. Mr. Statz noted that an easement allows the City to protect the wetlands without the ownership aspect. Public Works Director Cory Tietz confirmed that the City can compel maintenance of the wetland with assistance from the Minnesota Department of Natural Resources. City staff will brainstorm a revised DRC process and wetland ownership framework to bring back to Council for review and input at a future Workshop. Mr. McClanahan brought up two upcoming development applications – Golfview Townhomes and Oakdale Gateway – both of which contain wetland areas. Council’s intent is to seek an easement for the former and seek an outlot for the latter. Ms. Volkers suggested that City staff request Council input if there are questions or concerns regarding these wetlands or any future wetlands. ## ADMINISTRATOR UPDATE Ms. Volkers brought up City Policy CC-002, Section 10.0 – Attendance, as the City Council was provided an advisory body member attendance report for July 1, 2025 through June 30, 2026. Given how this timeframe overlaps with reappointment and term dates, the City Council agreed to waive the attendance requirement and revisit this section, and Section 3.0 – Terms, at a future Workshop. Council Member Moore suggested using attendance at City events as a metric along with attendance at meetings. Ms. Volkers invited City Attorney Jim Thomson to give an update on the Oakdale Marketplace LLC mediation, noting that incoming City Administrator Kelli Bourgeois and Community Development Director Andy Gitzlaff will represent the City at mediation. Attorney Thomson indicated that one Council Member may also be in attendance. The City Council agreed that Mayor Zabel will attend/be on call/remote for the mediation on July 20, 2026. ## WORKSHOP MINUTES ## JU NE 9, 2026 ## PAGE FIVE ## COUNCIL TOPICS Council Member Moore thanked City staff for making the Eberle Park monument look beautiful. Council Member Morcomb requested information for the City Time Capsule. Ms. Volkers will send an email to the City Council and gather all the items that will be sealed within, including a proclamation signed by the entire City Council. Council Member Wrich shared that she will be on leave later this Fall, but will provide details closer to this medical leave date. She also expressed appreciation for all City staff during the various moves over the last month into their temporary workspaces. Mayor Zabel brought up the Climate Action Plan scope and budget and suggested bringing this topic back along with the 2050 Comprehensive Plan at a future Workshop. Mayor Zabel stated that the Regional Council of Mayors’ meeting included a discussion on AI and the opportunity to apply for a pre-release pilot program through Government Analytica. Mayor Zabel shared resident comments about how the City should celebrate the United States’ 250 th anniversary. The Council agreed that social media acknowledgement is sufficient due to timing and budget constraints. Mayor Zabel encouraged all Council Members to attend Summerfest events. ## ADJOURNMENT The Workshop was adjourned at 6:56 PM. Respectfully submitted, ## Sara Ludwig, City Clerk