Oakdale approves $31.3M Public Works facility, largest project ever
The Oakdale City Council unanimously approved bids for the city's largest capital project—a new $31.3 million Public Works facility on Granada Avenue—and authorized placing a sales tax extension on the November ballot to cover inflation-driven cost increases.
The council's decision marks a historic milestone for the growing city. The facility, which will serve residents and visitors for decades, is expected to break ground in late September 2024 and open in November 2025. The project includes a 22-foot fleet storage addition and a fuel island, and the city acquired the Granada Avenue site with 3M retaining environmental responsibility.
To manage the project's complexity, the council unanimously granted the City Administrator authority to approve individual change orders up to $100,000 without requiring full council approval. Don Tyson, the project's owner's representative, explained that construction management projects involve numerous contracts where a single decision can trigger multiple change orders. Any change order exceeding $100,000 or affecting the total project budget will still require council approval.
The council also unanimously approved placing two ballot questions before voters in the November 2024 general election. The measures would extend the existing local option sales tax from 25 to 30 years and increase funding by $9 million total—$6 million for the Public Works facility and $3 million for a police facility. City Administrator Chris Viken noted that inflation since the initial 2020 approval necessitated the extension and increase. Importantly, if voters approve the measure, about 50% of the additional cost will be borne by non-residents shopping in Oakdale, reducing the burden on local property taxpayers.
In other business, the council welcomed Jake Foster as the new Assistant City Administrator, a position vacant since 2017. Foster brings experience from Watertown, Lake Elmo, and Chanhaska and is returning to the east Metro area. Mayor Zuel emphasized that the position addresses a significant need created by the city's recent growth.
The council also recognized two retiring commissioners: Dave Helper, who retired from the Economic Development Commission, and Bonnie Wilson, who completed six years on the Environmental Management Commission, where she contributed to the Green Step Cities program and an EV-ready Community Study.
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Votes (5)
Recognition of Outgoing Economic Development and Environmental Management Commissioners
Dissent: None
Moved by N/A · Seconded by N/A
The Mayor recognized Dave Helper for his retirement from the Economic Development Commission after many years of steady service. Bonnie Wilson was also recognized for her six years on the Environmental Management Commission, where she contributed to the Green Step Cities program, pedestrian and bicycle plan, and an EV-ready Community Study. Both commissioners expressed gratitude for the opportunity to serve and learn about city government.
Welcome of New Assistant City Administrator, Jake Foster
Dissent: None
Moved by Council Member Moram [8:38] · Seconded by Unknown [8:42]
Council Member Moram pulled this item from consensus motions to individually welcome Jake Foster as the new Assistant City Administrator. The Mayor noted the position has been vacant since 2017 and is a significant identified need due to the city's growth. Jake Foster brings experience from Watertown, Lake Elmo, and Chan Hassen, and is returning to the east Metro.
Award of Bids for New Public Works Facility Construction (City Project B224-01)
Dissent: None
Moved by Council Member Willenbring [35:00] · Seconded by Council Member Moram [35:23]
Don Tyson (owner's representative) and Ken Francis (Kuss Anderson) presented the bid results for the Public Works facility. The city has acquired the Granada Avenue site, with 3M retaining environmental responsibility. 142 bids were received, and a 'best value' process was used for key divisions. Approved alternates include a 22ft fleet storage addition and a fuel island. The project budget is balanced at $31.3 million, and groundbreaking is expected in late September 2024, with completion in November 2025. The Mayor underscored the project's historical significance as the city's largest capital endeavor, funded by local option sales tax.
Granting City Administrator Change Order Authority for Public Works Facility
Dissent: None
Moved by Council Member Willenbring [40:29] · Seconded by Council Member Moram [40:48]
Don Tyson explained the necessity of granting the City Administrator authority to approve individual change orders up to $100,000 for the Public Works facility project. This is crucial for managing the numerous contracts involved in a construction management project, ensuring timely decisions, preventing delays, and protecting the project budget. Any change order exceeding $100,000 or the total project budget will still require full Council approval.
Approval to Place Local Option Sales Tax Extension on 2024 General Election Ballot
Dissent: None
Moved by Council Member Willenbring [43:00] · Seconded by Council Member Moram [43:18]
City Administrator Chris Viken explained that due to inflation since the initial sales tax approval, the city seeks legislative authority to extend the sales tax duration from 25 to 30 years to match project terms. Additionally, they propose increasing the total funding for the police facility by $3 million and the Public Works facility by $6 million. If voters approve, about 50% of the $9 million increase would be borne by non-residents shopping in Oakdale; otherwise, it would fall on city property taxpayers. The council approved placing these questions on the 2024 general election ballot.
Notable Quotes (9)
I appreciate the opportunity that the city of Oakdale provides for residents to get involved with the community... The biggest benefit for me has been the increased visibility to the staff and seeing how the city of Oakdale is run... such a dedicated and talented group that is both personable and professional. It brings me great peace of mind knowing that our city is in very good hands.
I was really surprised when I joined the commission that it was as interesting as it was... I can't thank everyone enough for educating me in Civic government I loved it and you found your replacement for the commission.
The position became vacant and we weren't quite sure what we were doing as a city we're just starting to grow and we've had so much growth over the last few years... this was a a big identified need for our community to have some additional administrative help.
I asked I asked the experts that have been working on this have you ever worked on a project this complex and the answer 100% of the time is no but this is a great model of what can happen when people work together and come together in the private and the public sector from different agencies.
it's a lot of money though it's a lot of money for taxpayers a lot of money for the city $31 million so I don't want to understand score that it's really important to note that.
the largest capital project this city has ever had um that will serve our residents and our visitors for decades to come so this is incredibly exciting.
one CH one decision could end up with five six seven change orders for those individual uh contracts and that's what cross Anderson will manage so we we don't go crazy trying to keep that straight but the number of change orders with construction management projects is greater just because of that.
there's been a lot of inflation since that time when we first started working with these numbers in 19 in 2020 so um with that we have went back to the legislature in 23 and asked for further authority to extend the time from 25 years to 30 years for a payback.
If the voters do approve this um about 50% of that cost will be borne by other people um shopping essentially and buying things in Oakdale.
Ordinances & Resolutions (8)
Resolution to award bids for the new Public Works facility and authorize the Guaranteed Maximum Price Amendment.
Resolution calling for an election on the extension of the sales tax and issuance of bonds for city facilities.
Document filed with Washington County regarding environmental clearances for the Public Works site.
Letter from the Minnesota Pollution Control Agency confirming 3M's responsibility for future site issues at the Public Works property.
Ongoing plan update for city parks, seeking resident feedback.
Formal recommendation letter from Kuss Anderson detailing bid awards for the Public Works facility.
Amendment setting the guaranteed maximum price for the Public Works facility project.
Official project ID for the construction of the new Public Works facility.
Source document
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Other Topics from This Document
Local Option Sales Tax Extension for Facilities
City Administrative Appointments and Delegated Authority
Community Engagement and Commission Updates
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