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2025.06.03 Work Session Packet 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: May 30, 2025 City Council Work Session Agenda Tuesday, June 3, 2025 6:30 p.m. Upper Community Room/Zoom Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the work session of the Crystal City Council was held on Tuesday, June 3, 2025, at ______ p.m. in the upper community room at city hall, 4141 Douglas Dr. N., Crystal, MN and via Zoom. If the agenda items are not completed in time for the city council meeting at 7 p.m., the work session will be continued and resumed immediately following the city council meeting. The public may attend the meeting via Zoom by connecting to it through one of the methods identified on the City Council Meeting Schedule for Tuesday, June 3, 2025. I. Attendance Council members Staff ____ Kiser ____ Bell ____ Struve ____ Onesirosan ____ Tierney ____ Sutter ____ Budziszewski ____ Therres ____ Serres ____ Cummings ____ Elholm ____ Deshler ____ Larson ____ Eidbo ____ Kunde ____ Kamish ____ Revering ____ Hubbard II. Agenda The purpose of the work session is to discuss the following agenda items: 1. West Metro Fire-Rescue District quarterly update and 2026 proposed budget. 2. Franchise fees. 3. Overnight parking ordinance. 4. Constituent issues update.* 5. New business.* 6. Announcements.* III. Adjournment The work session adjourned at ______ p.m. * Denotes no documentation included in the packet. Auxiliary aids are available upon request to individuals with disabilities by calling the city clerk at (763) 531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529. 1 West Metro Fire-Rescue District May 2025 Quarterly Update ADMINISTRATION/OPERATIONS REPORT Calls for Service Report January 1 – April 30, 2025 Total Calls for Service 642 Estimated fire loss $54,082 Crystal 278 New Hope 351 Mutual Aid 13 January 1 – December 31, 2024 Total Calls for Service 2103 with 1 severe weather Crystal 987 Estimated fire loss $1,604,084 New Hope 1060 Mutual Aid 55 January 1 – December 31, 2023 Total Calls for Service 2148 Estimated fire loss $2,174,929 Crystal 896 New Hope 1167 Mutual Aid 85 January 1 – December 31, 2022 Total Calls for Service 2128 with 2 severe weather Crystal 959 Estimated fire loss $1,501,240 New Hope 1099 Mutual Aid 68 January 1 – December 31, 2021 Total Calls for Service 2124 Estimated fire loss $1,703,242 Crystal 890 New Hope 1,169 Mutual Aid 65 Fires EMS/RescueHazardous ConditionService Call Good Intent Canceled Fire Alarm Severe Weather Total Mutual/Auto Aid 10 30%1 1 1 1%13 2% New Hope 13 39%173 58%19 49%7 39%33 57%36 49%70 58%351 55% Crystal 10 30%127 42%20 51%10 56%24 41%37 50%50 42%278 43% Total 33 5%300 47%39 6%18 3%58 9%74 12%120 19%642 100% 0 100 200 300 400 500 600 700 2025 Calls for Service Jan 1 Thru April 30 2 January 1 – December 31, 2020 Total Calls for Service 1828 Estimated fire loss $1,313,433 Crystal 781 New Hope 983 Mutual Aid 64 No response per COVID-19 Protocols 178 January 1 – December 31, 2019 Total Calls for Service 2018 Estimated fire loss $2,276,913 January 1 – December 31, 2018 Total Calls for Service 1856 Estimated fire loss $632,167 January 1 – December 31, 2017 Total Calls for Service 1922 Estimated fire loss $588,517 January 1 – December 31, 2016 Total Calls for Service 1573 Estimated fire loss $1,637,094 January 1 – December 31, 2015 Total Calls for Service 1514 Estimated fire loss $657,914 January 1 – December 31, 2014 Total Calls for Service 1663 Estimated fire loss $1,861,162 January 1 – December 31, 2013 Total Calls for Service 1448 Estimated fire loss $357,182 January 1 – December 31, 2012 Total Calls for Service 1349 Estimated fire loss $169,900 January 1 – December 31, 2011 Total Calls for Service 1638 Estimated fire loss $318,749 2024 Audit MMKR was onsite the week of March 3 to complete the field work for the 2024 audit. The following are their opinion and findings: • They issued an unmodified opinion on the District’s basic financial statements. • They reported no deficiencies involving the District’s internal control over financial reporting that they consider to be material weaknesses. • The results of their testing disclosed no instances of noncompliance required to be reported under Government Auditing Standards. • The results of their testing disclosed no instances of noncompliance with Minnesota laws and regulations. July 16, 2025 Board Meeting At the annual meeting of the WMFRD Board of Directors Josh Kunde will be sworn in as fire chief. This will be Sarah Larson’s last day as WMFRD fire chief. ADMINISTRATION/COMMUNITY OUTREACH Retirement / Resignation Our full-time Fire Inspector, Lieutenant Jon Jaeger retired on March 3, 2025; he was with West Metro for nearly 12 years, just over 10 of those years were as a full-time inspector. Staffing We are currently at 11 full-time and 51 paid, on-call Firefighters (POC), of which, 4 are on Leave of Absence (LOA). Honor Guard We had Honor Guard members help with the funeral of the Goodview MN Fire Chief Jason Gruett on March 20, 2025. 3 In a partnership with the Minnesota Fallen Firefighters Memorial Association, we hosted a Funeral Operations Class and Honor Guard Clinic for fire departments and other public service entities around the region at Camp Ripley the weekend of March 28-30, 2025. We had attendees from Minnesota, Iowa & South Dakota attend. Hiring Due to Chief Larson retiring and Chief Kunde’s promotion to Fire Chief, we are in the process of hiring an administrative captain of logistics and technology management. We sent out a request for letters of interest to our POC staff to see if we had enough people with the right skillset to hold an internal hiring process for this position. We received eight letters and decided that we had enough qualified candidates to proceed with an internal hiring process. The application posting closed on April 7 and we received five applications. All five candidates interviewed with an outside panel and two moved on to a second interview with an internal panel. The next phase of the process is a leadership assessment with Martin McAllister. Firefighters Fighting Hunger Our 14th annual food drive was a success! We collected $4,072.57 in cash and about 1500 pounds of food. Historically we have given all of the proceeds to The Food Group; however due to some new partnerships we have developed with CEAP and their Meals on Wheels program, we decided to add CEAP and NEAR to our beneficiaries of the food drive. We split the proceeds amongst these 3 local organizations. 4 Community Outreach Below is a list of the outreach projects Jesus Soto has done in 2025: Activity Age Group Date Amount WM Explorers teens 1/2/2025 8 HSS 1 Adult 1/3/2025 1 Meeting with State Marshal 1 Adult 1/7/2025 1 HSS 2 Seniors 1/9/2025 2 Interview with CCX-SMART911 news 1/15/2025 1 WM Explorers teens 1/16/2025 8 HSS 2 Seniors 1/24/2025 2 Pub Ed Event-MG Adults 1/30/2025 30 HSS 2 Seniors 1/31/2025 2 HSS 2 Seniors 2/5/2025 2 HSS 1 Adult 2/5/2025 1 WM Explorers teens 2/6/2025 12 Pub Ed-SEA School kids 2/11/2025 150 Car Seat Clinic Adults 2/12/2025 17 Pub Ed-Calibre Chase Seniors 2/21/2025 20 WM Explorers teens 2/20/2025 7 Meals On Wheels Adults 2/25/2025 7 Station Tour Family 3/2/2025 15 CCX Interview-Food Drive news 3/6/2025 2 HSS/Fire evac drill Group Home 3/11/2025 5 HSS 1 Adult 3/12/2025 1 HSS 1 Adult 3/12/2025 1 Beacon Academy 3rd grade 3/18/2025 45 Beacon Academy 4th grade 3/19/2025 75 Beacon Academy 5th grade 3/20/2025 75 WM Explorers teens 3/20/2025 6 HSS 2 Seniors 3/25/2025 2 Home Safety Surveys So far in 2025 we have conducted 10 surveys our goal is 30. TRAINING/EMERGENCY MANAGEMENT Department Training Chief Watson is working with MSP Airport Fire Department training staff on joint training in May. This training will involve live fire airplane props. Apprentice Firefighters Our two recent lateral transfer firefighters are starting the Apparatus Operator Program in March. This program will get these firefighters cleared as operators on all West Metro apparatus. Firefighter Family Night On June 17, 2025 West Metro will host a firefighter family night. The goal of the evening is to show our firefighter families what we do when we attend training nearly every Tuesday. We are expecting about 100 people to attend this event. 5 West Suburban Fire Academy The West Suburban Fire Academy is still in session, with all 38 recruits from the four respective departments continuing in their training. Captain Wheeler is meeting bi-weekly with the other three department leaders of the academy to plan and coordinate efforts throughout the academy. • Recruits have been training on numerous topics so far, including:  Fire Behavior  Incident Command Systems  Search & Rescue  Firefighter Survival  Hose Line Advancement  Vehicle Extrication  Firefighter Health & Safety  Training at the Braemar Training Facility in Edina, focusing on high-rise & apartment fire operations, scheduled for April 19, 2025.  Live Fire training at the ABLE Facility in Burnsville, scheduled for April 30, May 3, and May 4.  Firefighter I & Firefighter II Certification testing on April 26, 2025.  Hazardous Materials Operations began April 28, 2025, with state certification scheduled for June 7, 2025. Graduation is scheduled for Monday, June 9, 2025. Emergency Management UASI Grant Update – Captain Wheeler is continuing to work through the Minnesota HSEM Grant Portal and with HSEM Grant Administrators on requisite documentation to continue this process prior to grant disbursement. There has been no notifications of funding freezes or interruptions thus far; Captain Wheeler is monitoring the status of federal directives and will advise of any changes to the process. Plans to conduct an Emergency Operations Center (EOC) training and exercise are currently in the process of being scheduled. This training will include staff from West Metro Fire along with staff across departments from New Hope & Crystal. The focus of the training will include reviewing EOC standup procedures and exercising current plans. The training is tentatively being planned for early October of 2025. Captain Wheeler continues to meet with the North Suburban Emergency Management Planning Group (NSEMPG) every other month. LOGISTICS Facilities Staff is in the process of a capital needs assessment for all three stations. Research and Development We are collaborating with Hennepin County Emergency Management, Hennepin County Fire Chiefs Association, and eight Hennepin County fire departments on the future of the radiological emergency program, Life Safety Unit (LSU) participation, and firefighter rehabilitation initiatives. Training and Departmental Operations Captain Grimes and Lieutenant Nichols attended Pierce apparatus technical training in May. This was a week- long course on chassis electrical systems and multiplexing. 6 Vehicle and Fleet Management Staff is designing and quoting replacement light rescue trucks, board approval will be sought later this year. IT and Communications ImageTrend inspection software and hardware has been implemented, including mobile tablets. Initial feedback from the inspectors is positive, citing ease of use and time savings. We achieved the next goal with Echo Analytics, updating the internal dashboard to allow POC firefighters to log in and track their quarterly training requirements. PREVENTION Fire Permits Issued in February and March Crystal 16 New Hope 12 Personnel Changes and Training Updates On March 3, 2025, Jon Jaeger, our Full-Time Lieutenant/Inspector, retired. Ian Watson joined our team a week prior as the new full-time Lieutenant/Inspector. Before his retirement, Jon provided Ian with valuable training on the inspection process. Ian has been doing an excellent job and is picking things up very quickly, which is incredibly helpful. He's already handling some basic fire inspections, which is a huge assist. Our goal is to fast-track Ian’s training and certifications as much as possible. While some of this will take time, as there is a lot to cover, experience will be the key. Over the next year or two, I’ll be working closely with him to ensure he becomes fully equipped with all the knowledge a fire inspector needs. Fire Investigations: 1/30/2025 - 53XX Kentucky Avenue North (Small dishwasher fire) 2/2/2025 – 55XX Douglas Drive (Arson vehicle fire in underground parking garage with fire sprinkler system activation) 2/9/2025 - 72XX 36th Avenue North (Small oven fire) 2/9/2025 - 55XX Boone Avenue North (Small stove fire) 2/12/2025 - 73XX 42nd Avenue North (Vehicle fire) 2/19/2025 - 47XX Oregon Avenue North (Basement fire due to candle) 2/19/2025 - 76XX 59th Avenue North (Small Garage Fire due to heater) 3/2/2025 – 32XX Douglas Drive (Vehicle fire) 3/5/2025 – 55XX Douglas Drive (Arson vehicle fire in underground parking garage with fire sprinkler system activation) 3/9/2025 – 27XX Hillsboro Avenue North (Small oven fire) 3/10/2025 – 34XX Lee Avenue North (notebook set on fire in bedroom) West Metro Fire PROPOSED 2026 BUDGET West Metro Fire Proposed 2026 Budget 2026 Preliminary Budget Summary 2026 Change 2025 Total Proposed 2026 Budget (Capital & Operating)4,014,508 +297,909 This is a total capital and operating combine increase 8.02% over 2025 Crystal Contribution 1,946,323 +145,972 Calculated from the cost share formula including capital this is 8.11%over 2025 This increase is .63% of the Crystal adopted 2025 General Fund Budget of $23,149,836 New Hope Contribution 2,068,185 +151,936 Calculated from the cost share formula including capital this is 7.93% over 2025 This increase is .78% of the New Hope adopted 2025 General Fund Budget of $19,586,213 (not including debt) West Metro Fire Proposed 2026 Budget 2026 Preliminary Budget Summary 2026 Change 2025 Proposed General Operating 2026 Budget 3,258,583 +182,909 6.41 percent increase from 2025 Proposed Fire District Capital 755,925 +115,000 1.61 percent increase from 2025 West Metro Fire Proposed 2026 Budget 2026 Preliminary Budget Summary 2026 2025 General Operating Budget $ 3,038,583 $ 2,855,674 Special Revenue Pension Fund Contribution $ 180,000 $ 200,000 Special Revenue Compensated Absences Fund Contribution $ 20,000 $ 10,000 Special Revenue Insurance Fund Contribution $ 20,000 $ 10,000 Total $ 3,258,583 Total $ 3,075,674 Capital Fund Contribution $ 400,000 $ 325,000 Tower Lease $ 103,600 $ 103,600 Engine Lease $ 252,325 $ 212,325 Total $ 755,925 Total $ 640,925 West Metro Fire Proposed 2026 Budget The cities’ preliminary 2026 total contribution is $4,014,508 which is $1,946,323.34 for Crystal and $2,068,184.66 for New Hope. This is an increase of $145,972.33 or 8.11% for Crystal and an increase of $151,936.67 or 7.93% for New Hope. This is an increase of $297,909 over the 2025 contributions or 8.02%. The general operating budget increase is $182,909 or 6.41%. The driving force of this increase is salaries, incentive pay for POC firefighters, health insurance, financial services and communications. There is a $20,000 decrease to the pension fund contribution. There is a $75,000 increase to the capital plan contribution. There is a $10,000 increase to the special revenue insurance fund contribution. There is a $10,000 increase to the compensated absences fund contribution. These contributions include a $103,600 lease payment for the tower. These contributions include a $252,325 lease payment for the new engines. This is a $40,000 increase over 2025. West Metro Fire Proposed 2026 Budget 2026 Preliminary Budget Contribution Increase from 2025 ($3,716,599) to 2026 ($4,014,508) General Operating Increase $182,909 4.92% Pension Decrease(POC)$(20,000)(.54)% Capital Plan Increase $75,000 2.02% Insurance Increase $10,000 .27% Compensated Absences Increase $10,000 .27% Engine Lease Increase $40,000 1.07% Total $297,909 8.02% West Metro Fire Proposed 2026 Budget 2027 Projected Budget Contribution Increase from 2026 ($4,014,508) to 2027 ($4,567,425) General Operating Increase $652,917 16.26% Capital Plan Decrease $(100,000)(2.49)% Total $552,917 13.77% West Metro Fire Proposed 2026 Budget 2028 Projected Budget Contribution Increase from 2027 ($4,567,425) to 2028 ($4,891,425) is projected at $324,000 or 7.09% West Metro Fire Proposed 2026 Budget The engine lease contributions stabilize in 2028 at $287,326 annually. West Metro Fire Proposed 2026 Budget Changes from 2025 $1,171,640 61500 -Regular Salaries $45,640 increase. This includes consideration of a 3% COLA, comp payout, OT for non-exempt employees, and lieutenant gap in pay for SAFER employees due to updated comp plan. $700,000 62000 -Part -Time Salaries $50,000 increase. This includes all POC positions and consideration of a 3% COLA. $206,925 62200 -PERA $6,343 increase based on full-time salaries. These full-time employees do not earn relief association pension. $71,431 62800 -Social Security & Medicare $4,863 increase based on salaries. West Metro Fire Proposed 2026 Budget Changes from 2025 $6,000 63500 -Health Savings Account (HSA)$500 increase. This line is part of the health insurance benefit provided by the District. $157,298 63800 -Health Insurance $33,456 increase based on the SAFER grant covering 100% of the health insurance costs for the 3 lieutenants and a projected increase to the premium. $5,095 63900 -Long Term Disability $1,407 decrease based on projected premium. $1,194 64000 -Life Insurance $12 increase based on projected premium. $120,000 64500 -Workers Comp Insurance $21,000 decrease based on historical data and reimbursement from the SAFER grant. West Metro Fire Proposed 2026 Budget Changes from 2025 $3,000 70500 -Office Supplies $700 increase due to the staffing of two stations with full- time staff. $3,000 72500 -Cleaning $800 increase due to the staffing of two stations with full- time staff. $31,000 76000 -Motor Fuels $3,000 increase based on historical data and continued rising costs. $18,000 77000 -Turn -Out Gear $3,000 increase based on historical data and increased needs. $2,000 79000 -Fire Prevention $1,000 increase based on increased needs. West Metro Fire Proposed 2026 Budget Changes from 2025 $7,000 80600 -Legal Fees $1,000 increase based on historical data. $180,000 81800 -Communications $20,000 increase based historical data relating to expenditures for LOGIS, Hennepin County Radio, Analytic Software and Community Notification Platform hosted for both cities’. $25,000 83200 -Electric $4,000 increase based on increased use from staffing an additional station. $10,000 83400 -Water/Sewer $2,000 increase based on increased use from staffing an additional station. $35,000 83600 –Natural Gas $5,000 increase based on historical data and increased use from staffing an additional station. West Metro Fire Proposed 2026 Budget Changes from 2025 $18,000 84000 -Building Maintenance $2,000 increase based on projected increase & Cleaning service to the cost of the of the service. $13,000 84200 -Building Repairs $3,000 increase based on historical data. $27,000 84400 -Equipment Repairs $3,000 increase based on historical data. $33,000 84600 -Vehicle Repairs $2,000 increase based on historical data. West Metro Fire Proposed 2026 Budget Changes from 2025 $4,000 86200 -Dues & Subscriptions $1,000 increase due to increased staffing. $5,000 86900 -Licenses & Permits $5,000 increase due to a reoccurring cost every three year for firefighter licenses. $85,000 87700 -Financial Services $8,000 increase based on increased costs due to updated contract. West Metro Fire Proposed 2026 Budget 2026 -2030 CAPITAL PLAN 2026 –Cities’ Contributions 400,000 Beginning Fund 2,086,221 Committed (849,962) Expenditures (927,921) Ending Non-Committed Fund Balance 308,338 Fund Balance 1,158,300 2027 –Cities’ Contributions 300,000 Beginning Fund 1,814,225 Committed (1,103,562) Expenditures (459,825) Ending Non-Committed Fund Balance 250,838 Fund Balance 1,354,400 West Metro Fire Proposed 2026 Budget 2026 -2030 CAPITAL PLAN 2028 –Cities’ Contributions 300,000 Beginning Fund 2,044,925 Committed (1,307,162) Expenditures (537,325) Ending Non-Committed Fund Balance 200,438 Fund Balance 1,507,600 2029 –Cities’ Contributions 300,000 Beginning Fund 2,198,525 Committed (1,580,762) Expenditures (477,325) Ending Non-Committed Fund Balance 140,438 Fund Balance 1,721,200 West Metro Fire Proposed 2026 Budget 2026 -2030 CAPITAL PLAN 2030 –Cities’ Contributions 300,000 Beginning Fund 2,412,125 Committed (1,834,362) Expenditures (477,325) Ending Non-Committed Fund Balance 100,438 Fund Balance 1,934,800 ((a/A) + (p/P) + (v/V) / 3) x 100 = Percentage of total budget due from specified municipality Crystal New Hope District a = municipality's avg. calls over 5 years 903 1,096 p = municipality's population (2020 census)23,330 21,986 v = municipality's taxable market value in millions 2,664 2,796 A = district's avg. calls over 5 years no mutual aid 1,999 P = district's population (2020 census)45,316 V = district's taxable market value in millions 5,460 Percentage a/A 45.1726%54.8274% Percentage p/P 51.4829%48.5171% Percentage v/V 48.7912%51.2088% 48.4822%51.5178%100.00% 100.0000% Required contributions from cities $1,946,323.34 $2,068,184.66 $4,014,508.00 Monthly contribution $162,193.61 $172,348.72 (1) Average calls based on calls for the years 2020 through 2024 without mutual aid. (2) 2025 Taxable market values from Hennepin County report dated 2/13/2025 Contributions from Cities Set to Equal: 2025 General Fund Operating Budget $3,038,583 2025 Capital Plan Budget $400,000 2025 Pension Special Revenue Fund $180,000 2025 Insurance Special Revenue Fund $20,000 2025 Compensated Absences Special Revenue Fund $20,000 2025 Aerial Lease $103,600 2025 Engine Lease $252,325 2025 Total Amount to be Contributed from Cities $4,014,508 WEST METRO-FIRE RESCUE DISTRICT Cost Sharing Formula Calculation in 2025 for use in the 2026 Budget ((a/A) + (p/P) + (v/V) / 3) x 100 = Percentage of total budget due from specified municipality Crystal New Hope District a = municipality's avg. calls over 5 years 873 1,103 p = municipality's population (2020 census)23,330 21,986 v = municipality's taxable market value in millions 2,853 2,861 A = district's avg. calls over 5 years no mutual aid 1,976 P = district's population (2020 census)45,316 V = district's taxable market value in millions 5,714 Percentage a/A 44.1802%55.8198% Percentage p/P 51.4829%48.5171% Percentage v/V 49.9300%50.0700% 48.5310%51.4690%100.00% 100.0000% Required contributions from cities $1,815,836.39 $1,925,762.61 $3,741,599.00 Monthly contribution $151,319.70 $160,480.22 (1) Average calls based on calls for the years 2019 through 2023 without mutual aid. (2) 2024 Taxable market values from Hennepin County report dated 12/20/2023 Contributions from Cities Set to Equal: 2025 General Fund Operating Budget $2,855,674 2025 Capital Plan Budget $350,000 2025 Pension Special Revenue Fund $200,000 2025 Insurance Special Revenue Fund $10,000 2025 Compensated Absences Special Revenue Fund $10,000 2025 Aerial Lease $103,600 2025 Engine Lease $212,325 2025 Total Amount to be Contributed from Cities $3,741,599 WEST METRO-FIRE RESCUE DISTRICT Cost Sharing Formula Calculation in 2024 for use in the 2025 Budget COUNCIL STAFF REPORT DATE: 6/03/2025 FROM: Jesse Struve, Director of Public Works / City Engineer TO: Mayor and City Council City Manager Adam R. Bell RE: Franchise Fee Discussion Background The City of Crystal (city) has approximately 87.89 miles with 70.32 miles of local roads and 17.57 miles of Municipal State Aid (MSA) roads. Between 1995-2017, the city had an aggressive approach to reconstructing the roadways to address pavement issues throughout the community. Over those 22 years, the city reconstructed all the residential areas in the community (see attached phase map). These projects were funded for the most part through special assessments and enterprise funds. The approach with the phased projects was to address the road condition, but it did not address the underground utilities. All the projects upgraded the storm sewer to meet minimal design standards for the time, but very little of the sanitary sewer or watermain was addressed with the reconstruction projects. The majority of the watermain and sanitary sewers were installed over a 10-year period from 1958-1968. The city council has adopted an approach of not imposing special assessments for recent utility projects and relies on funding from the tax levy and enterprise funds to cover these costs. In 2025, the city allocated the following for street projects: Description Amount ($) Property Taxes $608,404 Special Assessments $366,500 Interest on Investments $46,786 Intergovernmental Revenue (MSA) $292,250* Total = $1,313,940 *Can only be used on MSA roads One of the major goals of any community is to provide reliable services and to maintain the infrastructure. Most of the city’s watermain is cast iron pipe that has an average age of 61 years. The typical life expectancy of this type of pipe 60-80 years. Most of our sanitary sewer is vitrified clay pipe also is approximately 61 years old and have a typical life expectancy of 50-75 years. Our infrastructure is heading toward the end of life expected, and staff feel strongly there needs to be a plan to address this issue. The current funding strategy can reconstruct approximately 0.50 miles (0.71% of local roads) of road and utilities and mill and overlay approximately 1.5 miles (2.1% of local roads). If the current strategy is followed, it will take over 100 years to replace the infrastructure and will put the community at risk of utility failure of the systems in the future. Also, there are basic street maintenance items like street markings (crosswalks, center line stripes, etc.), parking lot striping, crack filling, and replacement of sidewalks and trails not being funded at the recommended levels. The existing street maintenance budget that applies to maintenance includes the following items, but this also includes the purchase of salt, which accounts for approximately $70000 a year: Description Amount ($) 0032.6305 Contractual Services $10,000 0032.6471 Painting Signals and Striping $16,000 0032.6550 Street Maintenance Materials $105,000* Total = $131,000 *Includes winter salt purchase, which is roughly $70,000 of the budget, so approximately $61,000 is left after salt purchase. Staff recommends the council consider undertaking a 30-year replacement schedule for the streets and utilities, and a 20-year mill and overlay program. If this approach is followed, all our utilities will be replaced before they reach 95 years old. I also recommend that the city maintain street markings (4-year cycle), there are funds for parking lot striping, crack filling of the roads (7-year cycle), and there are funds dedicated to the replacement of sidewalks and trails (50-year cycle). What does this mean from a cost perspective?: Description Amount ($) Comment Street Reconstruction (street costs only) $3,000,000 This is for the street portion of road project costs only and does not include utility replacement costs. Those will be funded by utility enterprise funds Mill and Overlay Projects $636,000 Based on a 20-year program Street Marking / Striping $42,000 Will redo crosswalks and centerline markings on a 4-year cycle Parking Lot Striping $5,000 Accounts for some markings on a yearly basis Preventative Street Maintenance $70,000 This is to fill cracks on roads every 7 years. Sidewalk, Trail, and Ped Ramp replacement $210,000 This accounts for the replacement of sidewalks on a 50-year replacement cycle and approximately 10 pedestrian ramps a year. Total = $3,963,000* *In 2026 dollars – will need to be increased to account for inflation moving forward. These funds would result in the filling of roughly 66,000 LF of cracks, the painting of 4,400 LF of striping and 168 crosswalk blocks (4-10 intersections depending on location), 10 pedestrian ramps, and the replacement of 3,400 LF of sidewalk and trails yearly. Currently, we do roughly 9,000 LF of crack filling, one intersection for crosswalk blocks, address trip hazards in sidewalks (cutting down high points), a block or two of road striping and pothole patching, and street salt. While these numbers seem daunting, the council can take steps to work toward addressing the current $2,600,000 shortfall. If the council wants to continue without special assessments, there are two main strategies that can be used, including implementing franchise fees or increasing the tax levy. Staff would recommend the council consider utilizing franchise fees to help address the issue. Franchise fees are a fee the city charges the private utility companies to use the city's right-of-way. These costs are passed on to the residents and should be considered a tax. While state law allows for this mechanism for communities to charge private utility companies, all these costs are passed on to the residents and businesses in Crystal. For every $2 franchise fees ($1 on gas and $1 on electric bills), it generates roughly $250,000. Franchise fees can be looked at as a user tax. It charges all users (including schools and churches) for use of the roads. If a resident lives in the community for 10 years, they are paying for the use of the roads for those 10 years. These funds will help address infrastructure improvements that will benefit all users, even if the initial projects are not in front of their house. Eventually, all residents will drive on roads that have been maintained or replaced with the use of franchise fees. They will use crosswalks, trails, and sidewalks along roads that have been maintained with the use of these funds. There is also potential to reduce the general fund contribution if franchise fees are set to bring in $1,800,000- $2,000,000. In 2025, the property taxes will contribute just over $600,000 toward the street fund. Unless we go high with franchise fees, I don’t see how we can fully eliminate the general fund contribution. With that said, I do think it is reasonable to reduce the general fund contribution by $300,000. Staff are seeking direction from the council on whether there is support in moving forward with franchise fees. While staff are not asking for specific dollar amounts currently, we do need to know if the council is thinking of above or below $10 in total franchise fees, and the timing for when the franchise fees would go into effect. The earliest implementation of franchise fees would be July/August of 2026. Once staff get feedback from the council, we will develop a community outreach plan, a staff recommendation for the amount, and a schedule moving forward. Proposed Schedule 1. 2025 and first quarter of 2026 – Public Outreach 2. April / May 2026 – Staff bring recommendation and public comments back to council. 3. June 2026 – Council provides feedback for implementation of franchise fees 4. August 2026 – Council makes final determination for franchise fees 5. January 1, 2027 – Franchise Fees begin to be applied. Requested City Council Decisions 1. Does the Council support staff doing further research on Franchise Fees, intending to pursue implementation? a. If the city moves forward with franchise fees, is the Council in favor of the fees being dedicated to street improvements? b. Is the council interested in a potential fee above or below $10? Alternatively, what total annual target amount is the Council interested in proposing (this will determine the fee amount)? c. What is the implementation schedule the council would like to pursue? Attachments 1. Historical Street Reconstruction Map 2. Road Maintenance Handout Road Maintenance Information Life Cycle of a road: • Typically, 30-40 years for low volume residential roads. o Impacted by initial construction, underlying soils, and the use of preventative maintenance. Typical Life Cycle of a road and when should maintenance occur: Preservation Maintenance includes: • Crack Filling – seal cracks with asphalt-based material. o Prevents water from entering the base material. Freeze thaw cycles with moisture under the road is likely the biggest cause of premature failure of a road. o The easiest way to extend the life of a road is to prevent water / salt from entering the subgrade. • Fog seal o Very light application of an asphalt emulsion to help seal small cracks, prevents water from seeping into the pavement, and helps to bind aggregate that has been exposed by wear. I haven’t used this much in my career, but I do know some agencies really like doing this. I’ll explore more and may consider doing this in the future. • Chip seal o Some agencies will use a chip seal, but I do not believe they have a purpose for road maintenance. They use a heavier emulsion with rocks applied on top. It does help seal small cracks, but there has been some testing recently which provided a connection between these and early pavement failure. Resurface: This is when you do a mill and overlay for the road. It typically occurs around the 15-year mark of a road. This helps to reestablish the top 2” of asphalt, reestablishes the crow (high point in the middle) to help drainage, and removes the weathered and worn top layer of asphalt. This extends the life of the road. You can do this a second time if the base of the road is holding up well and you don’t see a lot of significant cracks. This can extend the life of the roads much longer. The next chart shows how these rehabilitations help to extend the life of the road (in red). Please note that, just because we are doing the appropriate rehab, it does not mean the road gets brought back up to the starting point. The road will continue to deteriorate, but it does bring the condition curve back up. How rehabilitation impacts the life of the road: If the roads look ok, should we delay? No, we shouldn’t if they are in the 15+ age range to help prevent premature deterioration. The city has roughly 88 miles of roadways of which about 71 miles are local roads (17 miles of MSA). This year the mill and overlay project are about 2 miles. At this rate it would take us 35-44 years to complete the city. Unfortunately, our road reconstruction program was done over an 18-year period so the city already is not keeping up with levels we should be doing. The city is redoing our street ratings this year, but it won’t be completed until later this year. The previous ratings were completed in 2018/19, so they are pretty much outdated. These ratings will be used to help lead decisions moving forward for where we need to focus on the projects (mill and overlay and Recon). Typically, the mill and overlay project will follow the order of the street reconstruction projects. Best methods for maximizing the life of a road: • Build the road correctly in the first place. While there may be higher initial costs, it will provide a much longer life span. • Fill the cracks regularly. Single handed is the best way to help increase road life. • Continue with a mill and overlay project and will likely need to increase funding for so we can keep up with the need. COUNCIL STAFF REPORT DATE: June 3, 2025 TO: Mayor and City Council FROM: City Manager Adam R. Bell Chief of Police Stephanie Revering RE: Overnight Parking Permit Regulations Background At its March 13 work session, the council discussed making changes to the overnight parking restrictions and related temporary parking permits. Currently, there is no parking on city streets from 2:00 a.m. to 5:00 a.m. except with a temporary permit, which can only be issued by the police from April 1 through November 30. Following that meeting, staff have developed proposed draft ordinance language to amend the code based on the direction from Council. The draft language is attached. The proposed language includes the following: • Clarification of long-term and short-term permits. o A long-term permit would allow overnight parking from April 1 through November 30. o A short-term permit would allow overnight parking year-round for two weeks at a time. A maximum of three short-term permits would be issued per year. • Fees. *These are referenced in the ordinance as Appendix IV, but the amounts are not included in the text. o All long-term permits would now have to be purchased. The proposed fee is $100. o The first short-term permit is free. Additional permits would cost $25 each. • Miscellaneous terms o All permits must be justified at the discretion of the Police Chief. There is no expectation that they can be issued simply because someone wants to park on the street. o All permits are subject to suspension or revocation o All permits are subject to snow removal suspension o All parking is limited to a maximum of 24 consecutive hours Requested City Council Action No formal action is requested, but staff requests that Council provide feedback on the proposed language and direct staff to make any changes as desired. 1310.07. Parking times. Subd. 1. General rule. No vehicle may be parked upon a public street, alley, or within a city-owned parking lot between the hours of 2:00 a.m. and 5:00 a.m. on any day. This prohibition shall not apply to government-owned vehicles. Subd. 2. Truck parking. No truck may be parked upon any public street, alley, or other public way for a continuous period of more than two hours unless such vehicle is actively engaged in loading or unloading activities carried out in the normal course of business. For purposes of this subdivision, a “truck” shall be any vehicle having a capacity of 1½ tons or more, or any tractor-trailer combination. Subd. 3. Parking; temporary permits. During the period from April 1 to November 30, and on legal holidays and the days preceding and following legal holidays, the police chief is authorized to issue temporary permits for the parking of a vehicle on a street between the hours of 2:00 a.m. to 5:00 a.m. when in the police chief’s judgment special circumstances exist justifying the issuance of the temporary permit and the purposes of this subsection will not be impaired thereby. The permit is to be issued for a specific motor vehicle at a specific residential dwelling unit and must be prominently displayed in the interior of the vehicle. A temporary permit issued under this subsection is not transferable to another vehicle. One temporary permit may be issued under this subsection without a fee. The fee for the issuance of additional temporary permits under this subsection is set by Crystal city code, appendix IV. For purposes of this subdivision, the term “legal holiday” means: New Year’s Day; Martin Luther King Day; Presidents’ Day; Memorial Day; Independence Day; Columbus Day; Veterans’ Day; Thanksgiving Day; and Christmas Day. Parking permits may be issued allowing overnight parking on public streets between the hours of 2:00 a.m. and 5:00 a.m. in certain situations when, in the police chief or designee’s judgment, special circumstances exist justifying the issuance of the permit. Examples include, but are not limited to, construction work on the home or driveway, when additional time is necessary to transfer items from a garage to vehicles, or to accommodate temporary guests. The parking permit is to be issued for a specific motor vehicle at a specified residential dwelling unit. The permit must be prominently displayed in the interior of the vehicle and is not transferable to another vehicle. If a snow emergency is declared, all vehicles must be removed from the street immediately, or they will be subject to citation and towing. Permit requests must include the license plate number, address, reason for the permit request, applicant name, and phone number. Permits are subject to revocation or suspension at any time. All parking is limited to no more than 24 consecutive hours. Two types of parking permits may be issued: long-term parking permits and short-term parking permits. Long-Term Parking Permit: may be issued from April 1 through November 30. There is a limit of three (3) long-term permits per household per calendar year. The fee for the issuance of long-term permits under this subsection is set by Crystal city code, appendix IV. Short-Term Parking Permit: may be issued for up to two weeks from January 1 through December 31. Residents may request up to three (3) short-term parking permits per calendar year. One short-term permit may be issued under this subsection at no cost. The fee for the issuance of additional short-term permits under this subsection is set by Crystal city code, appendix IV.