The top takeaways from the 2021 Minnesota Legislative Session

Bart Fischer, Senior Public Administrator, WSB and Gary Carlson, Intergovernmental Relations Director at the League of Minnesota Cities (LMC) unpack the issues communities should pay attention to post-legislative session.

This year, there was an interesting confluence of state and congressional legislation that will impact cities more than any other time in history. The pandemic and recovery efforts will have a tremendous impact of congressional action on our cities and understanding and navigating these impacts can be extremely important in the coming months.

BF: It seems like it wasn’t that long ago that we were talking about the top issues to pay attention to going into this session, Gary. Thanks for taking the time to dive into the takeaways with me post-session.

GC: Anytime Bart. It was an exciting session with a lot of moving parts. I think one of the biggest takeaways was the impact to our state budget and the American Recovery Act. There are still many question marks and unknowns about the federal package, but if you go back a year ago, we were facing a $2.4 billion deficit and we’ve ended up with quite a surplus due to a recovering economy and the federal government. At the beginning of the session, cities and counties were watching closely as the pandemic impacted tax collections and how it would affect local government aid (LGA) distributions and road funding. Relief packages have bolstered our economy and made the economic recession much less impactful. We were expecting to see deep cuts in state aid, but the legislature put over $5 million into LGA to preserve funding for all cities.

In addition to increased funding for communities, we were also looking for some flexibility in the use of TIF to account for the impact of the pandemic. TIF districts that were created between January 1, 2018, and June 30, 2020, now have three more years to complete development activities.

BF: It’s great to hear some positive news after a year of so many challenges. The pandemic has certainly had significant impacts on our communities. Anything outside of the pandemic or relief packages that communities should be paying attention to?

GC: Yes – the Local Option Sales Tax. For many years, we’ve been having conversations about authorizing local sales taxes without the need for legislative approval. In recent years, the legislature has been trying to define what these sales taxes can be used for. This session, they have further defined allowable uses to be capital projects of regional significance that are generally buildings, park improvements or trails that provide benefits to both residents and non-residents. For example, civic centers, libraries, regional parks and trails, etc. This year, almost every county or city that sought approval for a Local Sales Tax option were approved at least in some part, with the notable exception of proposals for roads and water/wastewater projects. I expect that the trend towards sales tax as a local funding source will continue.

BF: That’s great news. Anything else related to taxes?

GC: We’ve been seeking streamlined sales tax exemption for local government construction projects for many years. This year, the sales tax refund process was extended to include public safety facilities when a city or county uses a construction contractor to make the initial purchase of materials. We’re really happy to see this happen. This has the potential to reduce costs by nearly 7%. Contractors will basically provide documentation of the sales tax paid on construction materials and the city can file to get a refund of that money. This is a huge benefit especially if you think about the rising cost of building materials.

BF: Speaking of public safety, I heard that communities are now able to create multi-jurisdictional fire departments. Can you speak to that?

GC: Yes, this is an issue that many communities have been fighting for years. A group of cities or towns can now form a fire protection district and use economy of scale to fund fire protection more thoroughly. This option allows many cities to be more efficient and it’s a good government reform effort as well. I think you’ll start to see a lot of cities and townships start to explore this option as many around the state are struggling to find enough volunteer fire fighters to staff their stations.

BF: Any final thoughts on this session?

GC: I think the biggest challenges cities and counties have in front of them is determining how to use the federal funds from the American Recovery Act. So far, 21 cities have received their distributions directly and there are 800+ more still waiting. Determining how to spend the funds will be a long-term project for many communities. Right now, cities can use the funds for a number of things; however, in relation to infrastructure, it is limited to water, sewer and broadband projects. There is some talk that Congress will allow the money to be used more broadly for infrastructure related projects. Communities of all sizes have different needs and adding some additional flexibility will really help with other infrastructure needs.

BF: Thank you, Gary. As always, I appreciate your expertise and valuable information.

Connect with the League of Minnesota Cities Intergovernmental Relations staff.

Bart Fischer

Bart Fischer has over two decades of experience in public administration. Throughout his tenure, he’s worked in five Minnesota communities as the city or assistant city administrator. Bart joined our firm in 2019 as a senior public administrator and focuses on lending his public service expertise to our clients.

Gary Carlson

Gary Carlson has 37 years of experience in government affairs. As the Intergovernmental Relations Director at the League of Minnesota Cities, Gary leads the League’s legislative efforts that matter to cities including aid to cities, economic development, employment and human resources, pensions and retirement, public finance, taxes, tax increment financing (TIF) and workers’ compensation.

Make Your Zoning Ordinance Resident Friendly

By Kim Lindquist, Director of Community Planning & Economic Development, WSB

Cities have spent the last few years working feverishly to get their comprehensive plans completed and approved. Many communities are now breathing a sigh of relief, recognizing the heavy lifting is complete. Unfortunately, for some the work has just begun as cities and townships enter the implementation phase of the updating process.

Most communities are good at keeping up with zoning issues that often arise, such as short-term rentals or solar farms. Zoning text amendments come up due to necessity as land use and issues dealing with structures change over time. Communities are often confronted with something unforeseen when drafting their ordinance and therefore need to amend to stay current.

Unfortunately, ordinance amendments modifying regulations may occur frequently, but there seems to be less time for critically evaluating the ordinance in its entirety. While it is common for regulations to be added to an ordinance, obsolete or confusing items are rarely removed. As residents are increasingly looking to city websites for information, cities should consider if their ordinances have been reviewed for readability and clarity for the “non-planner” public.

WSB’s Community Planning and Economic Development Group has recently been working with communities to review their ordinances. In addition to reviewing them for regulations and legal consistency, we are evaluating their presentation and readability. We are helping these communities to improve the way that the information is presented to ensure that clients, staff and the public can quickly find the answers they are looking for regarding planning and zoning with minimal frustration.

For example, residents may need to look in multiple locations within an ordinance to find the information necessary for completing a simple accessory structure building permit. Setbacks, size, exterior materials, and location standards are often placed within different sections of the zoning code, making it difficult for residents to locate. This building permit “maze” often leads to frustrated residents and calls to the community staff, many of which can be avoided through more concise and clear ordinances.

Additionally, as new staff come on board, the knowledge regarding the original intent of the ordinance may be lost. Improving clarity of the ordinance benefits both residents and practitioners, resulting in more efficient use of community resources.

Kim is a planning professional with over 30 years of experience overseeing a variety of complex planning projects. Kim worked in high growth communities working with developers and the public on entitlements for residential development and business attraction to the city.

[email protected] | 763.287.8303

Building Resiliency into Public Works

By Amy Fredregill, Sr Director of Sustainability, WSB

Reliable resources are necessary for every municipality, and consequently, sustainability in public works programs has grown into a long-term goal for municipalities. Prioritizing sustainability and resiliency in a municipality’s infrastructure ensures that programs are reliable, so that when a user turns on their faucet or light switch, water or electricity is delivered.

Resiliency is an important part of sustainability planning. Resiliency is achieved by having a maximum number of options to be able to pivot and adapt to a disruption in an infrastructure system. For example, a main road in a user’s neighborhood could be under construction, or a resident may not have a vehicle. If the municipality has walkways or bikeways through the neighborhood, the user has the option to walk or bike to their job, store, or pharmacy. The ever-expanding choices can lead to healthier communities, encourage tourism, commerce and more.

Cultivating resiliency is not as complicated as it may sound; creating a walkway or bikeway trail system in a neighborhood is only one example. A municipality can invest in water reuse, renewable energy, energy efficiency, stormwater and flood management systems, too. The programs can be built into a large sustainability plan. Moreover, due to evolving technology, increased adoption rates and system investments, energy choices such as renewable energy and conservation can reduce costs and risks. Communities can take advantage of tax credits for renewables, rebates for conservation, and hedge financial risk through emissions reductions.

The systems we rely on – power and gas grids, water and wastewater systems – are complex and critical to daily life. With the significant progress in energy choices at our disposal, cities can offer more services to residents such as electric vehicle charging, helping them to reduce their monthly bills through energy audits and weatherization, increasing outreach and awareness on clean energy programs, and more.

Winter storms underscore the value of having a range of options at our disposal. By having a diverse menu of power generation options and increasingly energy-efficient operations, communities can be more resilient and adapt to changing circumstances. These are things that cities and communities are thinking about for their own sustainability plans. Prioritizing sustainability and resiliency in municipal systems can help prevent, adapt to and mitigate disruptions in the future.

Amy has nearly 25 years of experience across many industries, particularly energy and agriculture, in the public, private and nonprofit sectors. This experience has provided Amy with a broad background that enables her to meet community and business needs based on the business case for sustainability. By working across intersecting systems to simultaneously advance environmental, economic and social goals, she is able to uncover creative solutions.

[email protected] | 612.965.1489

United States Postal Remediation Efforts

In the wake of the civil unrest following the death of George Floyd, the United States Postal Service (USPS) experienced significant damage to two post offices in south Minneapolis.

WSB’s Environmental Remediation and Structures team assisted USPS with their emergency response and environmental and structural needs. Our team worked to identify and analyze any potentially harmful materials that may have been released into the environment that could pose an immediate risk to emergency responders, the public or postal workers.

Riots and protests in the area brought many U.S. Marshalls, Secret Service agents and FBI investigators to the scene. Determining the structural and environmental safety of the buildings was paramount to USPS’s emergency response. The structures were deemed a total loss and the team identified many hazardous materials caused by the fire and destruction of the buildings. USPS is currently in the process of rebuilding one of their facilities and performing environmental clean-up at both sites. Our team will continue to partner with USPS on several other environmental clean-up projects throughout the Midwest.

COVID-19 Testing & Vaccination Assistance

By Andi Moffatt, Vice President of Environmental Services, WSB

As the COVID-19 pandemic began to spread through the country, WSB was called on by the Minnesota State Emergency Operations Center (SEOC) to assist in COVID-19 testing logistics. As project managers in the AEC industry, our team is used to working under pressure – and this task was no exception. We welcomed the chance to assist the state in testing Minnesotans and to do our part in preventing the spread of COVID-19.

A LARGE EFFORT THAT SPANNED ACROSS THE STATE.

The size and scale of this project was enormous. Representatives from the state, cities, counties, local public health organizations and staff at the vaccination and testing venues came together as a coalition to get this project off the ground and operational. To support these efforts, several WSB team members from across the company stepped in to assist on the emergency contract to set-up and manage the logistics of the state’s no barrier COVID-19 testing sites. We provided project management, IT, site mapping and drone photography, visual documentation and information gathering, and general logistics on behalf of the state.

GETTING MINNESOTANS VACCINATED.

As vaccines became available throughout the state, the SEOC asked WSB to manage the logistics associated with COVID-19 vaccine sites. We continue to work behind the scenes to help Minnesotans get vaccinated.

TACKLING CHALLENGES HEAD ON.

This project has been rewarding for many of us at WSB. It reinforces our commitment to supporting our communities and the challenges they face, no matter what they may be. Internally, we’ve also reminded ourselves that nothing is too big for us to tackle together and that we will work across departments, teams and offices to deliver for our clients.

“We are honored to have been able to play a role in such a dedicated, committed and passionate network across the state,” said Andi Moffatt, vice president of environmental services. “Public health is a priority, and we will continue to work with the state and our local communities to help deliver this critical support.”

Andi is a Vice President with more than 23 years of experience leading people and projects that include planning, environmental, energy, highway, natural resources, construction and development. She oversees our Environmental services and approaches her work with passion and positivity.

[email protected] | 763.287.7196

Starting a sustainable cycle

A virtual webinar on launching sustainable initiatives.

Organizations of all types and sizes are taking a more proactive stance on sustainability issues to meet evolving customer needs and making sustainably minded changes that can increase their revenue, reduce costs and build new markets and service. But for many one question complicates their efforts; how to get started?

In partnership with Finance & Commerce, WSB recently hosted a virtual webinar that provided examples of sustainable processes and how they came to be.

Panelists included:

Bryan Baer, City Administrator, City of Hugo, MN
Steve Compton, CFO and EVP at Sevana Bioenergy
Bruce Loney, Board Manager, Prior Lake-Spring Lake Watershed District
Moderated by: Amy Fredregill, Director of Sustainability, WSB

During the webinar, our panelists led us through their proactive approaches to sustainability initiatives including:

How the city of Hugo is using less water and reducing costs despite its growing population
How a dairy farm is increasing their revenue by making and selling biogas
How mitigating invasive carp is leading to improved water quality in a Watershed District

Watch the webinar

Download the presentation

For more information on sustainability, contact Amy Fredregill.

How pavement management is like owning and caring for a backyard deck

A Q&A with Bart Fischer, Senior Public Administrator and Mike Rief, Sr. Vice President of Construction Services.

With summer fast approaching it’s comforting to know that we’re free of icy road conditions for the next several months. As I drove over a recent pothole and began noticing the sand and salt being swept off the roads in my community, I wanted to learn more about pavement management and its impact on city budgets and plans. I sat down with Mike Rief, WSB’s Sr. Vice President of Construction Services to better understand the importance of pavement management in our communities.

BF: Why is pavement management so important for communities?

MR: It all comes down to planning and budgeting. The predictability that a pavement management plan brings a community is the biggest benefit. If a pavement management plan exists, minor improvements and maintenance can potentially double the lifespan of a roadway. Without any maintenance or improvements, a typical road will last about 20 years. Instead, with a pavement management plan, a community could extend that lifespan to about 40 years, maximizing their investment.

BF: That’s interesting. What exactly does a pavement management plan entail?

MR: I’ve found that comparing pavement to caring for a backyard deck has a lot of impact. We start by building a deck – similar to how we start building a road. We form the foundation, wood for the deck and pavement for the road.

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BF: We love our outdoor spaces in Minnesota! This is a great comparison. So, there is a preventative maintenance component after the foundation is formed?

MR: Exactly. Once the foundation is formed, we perform preventative maintenance. In the case of a deck, we stain and seal it. For pavement, we seal the pavement cracks and perform surface treatments.

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BF: What happens if a board rots out? How would you compare that in the pavement scenario?

MR: I like to call this the preservation stage of the pavement management plan. The best comparison to replacing a rotting board would be performing a mill and overlay on the road. A mill and overlay is a type of street maintenance that requires the removal of the top 2” of a street and the addition of a new layer of bituminous pavement in it’s place.

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BF: When does it make sense to do a full road reconstruction?

MR: Yes, the reconstruction phase of the process is inevitable, but can be extended through preventative maintenance and preservation. Eventually, we’ve repaired the deck so many times and it makes sense to stop investing more dollars into it. At some point, reconstruction is necessary, but through pavement management, it’s decades out and has been budgeted for.

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BF: It really makes a lot of sense when you explain it in that way. Any other benefits of pavement management?

MR: I mentioned it above, but predictability is invaluable. There are huge capital investment benefits to implementing a pavement management plan. It helps with budgeting, planning for development and growth and also can increase property values. I recommend any community, regardless of size, consider pavement management in the future.

[email protected] | 651.485.1839

Mike Rief leads WSB’s Construction Services team. He has nearly 30 years of experience in civil engineering, with an emphasis on pavement and materials, pavement management, quality management, project management, design, risk assessment, project controls, contract administration, construction, and preventative maintenance. Throughout his tenure, he’s managed several complex, high-profile projects across Minnesota.

[email protected] | 612.518.8329

Partnering with the city of Hugo to create a sustainable water reuse strategy

By Mark Erichson, Pete Willenbring, Kendra Fallon and Ray Theiler, WSB

About 10 years ago, the City of Hugo was looking for feasible options to reduce the amount of potable water used to irrigate green spaces within the city. At that time, approximately one-half of the water the city pumped from its municipal wells was used for irrigation. The city was also facing the need to add wells, water towers, and treatment to provide enough capacity for this use. Studies indicated the cost for these facilities was going to increase water bills significantly, and the MDNR was reluctant to grant additional groundwater appropriation permits in the area.

To address this issue, the city and WSB staff developed a list of potential options, and the city commissioned WSB to focus on completing a series of studies to determine if it would be technically, financially, and politically feasible to collect, store, and re-use stormwater runoff instead of city well water for this purpose. Furthermore, the study was focused on potentially utilizing existing stormwater retention and treatment ponds that are currently in-place throughout the city for this purpose. As part of these studies, initial evaluations focused on the ability to implement this type of program for the city’s largest irrigation users. These evaluations found that providing stormwater for re-use to these users was indeed feasible, and furthermore, when properly set-up, residents were enthusiastic supporters of the practice and program. Following these initial successes, our team began to coordinate with city staff and local partners to fund, design, and construct other reuse systems.

Reducing, reusing, and replenishing water resources is now a city prioritized conservation practice. All new development projects are required to collect and treat stormwater, and install stormwater reuse systems for irrigation when feasible and practical. This reuse also significantly reduces the volume of stormwater and the pollutant load that is discharged downstream of the sites, further benefiting downstream natural resources such as wetlands, lakes, and rivers.

We continue to offer guidance about sites that may be a good fit for reuse systems. When these are identified, we work with city staff and the local watershed district to identify and secure grant funding for new projects and encourage developers to implement water conservation practices such as stormwater reuse. Several private developments have been able to take advantage of this partnership, including the Oneka Ridge Golf Course and the Water’s Edge Homeowners Association, a 1,000 unit housing development. Grants have funded between 25 and 85 percent of reuse projects. Where projects utilize water reuse which exceeds what is required for stormwater management, volume reduction credits are banked. These credits are tracked by the City and can be purchased by developers for future projects where site constraints make onsite stormwater treatment difficult.

Shifting the public perception of water reuse is important to a project’s success. We partnered with city officials to facilitate neighborhood meetings to educate residents on water reuse and its benefits. Public living in proximity to these reuse projects will benefit greatly by improved water quality in adjacent downstream water bodies, while also reducing reliance on our stressed groundwater resources.

Stormwater reuse offers a number of financial and environmental benefits to the city of Hugo and its residents. By identifying and utilizing alternate water resources to reduce potable water demands, the city is able to reduce the stress placed on its water system, possibly postponing or eliminating the need for additional water infrastructure improvements such as wells, towers and size of trunk watermain facilities.

As groundwater demands increase, Hugo and WSB will continue to work together to change local water use practices and attitudes towards water reuse and water conservation.

Please contact us to learn more about how to incorporate more water reuse strategies in your community.

How the DNR’s flood risk review could affect Minnesota communities

By Earth Evans, Director of Water Resources, WSB

The Minnesota Department of Natural Resources (DNR), in coordination with local watershed districts, has developed updated draft Federal Emergency Management Agency (FEMA) flood risk maps and hydrologic and hydraulic analysis. The affected area includes the floodplains in the hydrologic unit code 8 (HUC8) subbasin. HUC8 includes portions of Ramsey, Washington, Anoka, and Hennepin Counties.

The updated hydrologic and hydraulic analysis is based on National Oceanic and Atmospheric Administration (NOAA) Atlas 14 precipitation events across the United States. The draft flood hazard maps may expand existing FEMA regulated floodplains within the Twin Cities metro due to the higher precipitation depth and frequency. The FEMA map updates will likely take effect in 2023. This is the first step in the process to develop updated FEMA Flood Insurance Rate Maps.

It is important that city officials pay close attention to these updates. The draft FEMA floodplain boundaries may increase with this analysis, which may reduce developable area in a municipality, increase the number of properties that are required to purchase flood insurance, and require property owners to change the type of flood insurance they possess. Additionally, the DNR is requiring that each community update their ordinance to require mitigation for fill in the modeled storage areas upstream of FEMA floodplains.

Currently, the maps are for city officials only. City staff should cultivate a strong understanding of the implications now, before the maps become open for public comment. During the next month, there will be opportunities for city staff to connect with the DNR staff, review floodplain limits, and understand the implications on developable area and properties that will require flood insurance within the community.

WSB can help navigate this process and facilitate meetings with DNR Floodplain Staff. City officials are encouraged to reach out to Earth Evans, WSB’s Director of Water Resources with questions.

Earth has 20 years of experience as a project engineer and project manager on technically diverse projects in water resources. She is a technical resource in hydrologic and hydraulic modeling, flood damage reduction and floodplain modeling, water quality modeling and evaluation of best management practices, permitting, and hydraulic design. She has has worked extensively with MnDOT and state aid requirements and coordinated with local, regional, and state permitting agencies.

[email protected] | 763.231.4877

5 ways Strategic Planning can improve your organization

By Bart Fischer, Sr. Public Administrator, WSB

As organizations evolve and change over time, it is important for leadership to reflect on the past, evaluate the present, and prepare for the future. This can be done through a regular strategic planning process. The following are five important reasons to conduct a routine strategic planning process.

Set a Clear Direction & Priorities

As organizations change over time, it is essential that leadership, stakeholders, and new staff joining the organization understand where the organization is headed and how it is getting there. This direction and priorities will serve as a road map for future success.

Build Trust & Relationships

For the prolonged success of any organization, there needs to be trusting relationships. Bringing leadership and stakeholders together regularly to truly listen and understand one another, helps lead an organization to consensus on their vision, mission, and priorities for the future. Consensus does not always mean 100% agreement; however, it means a spirit of understanding and collaboration around the culture and direction of the organization. This process allows for teams to be on the same page and drives alignment.

Set Agendas & Simplify Decision-Making

Refocusing on the long-term view can be beneficial as short-term gains often slow long-term growth. Having a strategic plan means that despite hardships, the focus is on the end goal and not changing course to avoid short-term hurdles.

Focus & Budget Limited Resources

A strategic plan helps focus limited resources such as staff, time, and money. It prioritizes where the organization can be most effective in creating a sustainable community for the future.

Communicate the Message

With a strategic plan, each leader has a consistent message and is better able to communicate that message across stakeholder groups. Everyone is “singing the same tune.” Those in charge of individual parts of an organization, know roughly the direction other departments are heading without needing to know the details of how they are accomplishing it.

[email protected] | 651.286.8484