02-08-21 Special City Council MinutesSPECIAL OTSEGO CITY COUNCIL MEETING
OTSEGO PRAIRIE CENTER
MONDAY, FEBRUARY 8, 2021
6:00 PM
Call to Order.
Mayor Jessica Stockamp called the meeting to order at 6:01 PM.
Roll Call: Mayor Jessica Stockamp; Councilmembers: Jeff Dahl, Brittany Moores, Tina Goede,
and Tom Darkenwald. City Staff; City Administrator/Finance Director Adam Flaherty, Streets
Operations Manager Kevin Lamson; City Planner Daniel Licht; City Engineers Ron Wagner and
Brent Larson; and City Clerk Audra Etzel.
This meeting is proceeding under MN State Statute 13D.021 allowing members to appear by
telephone or video conference due to the ongoing health pandemic and state of emergency. For
the record, the Mayor, Council members, and certain City staff were present in-person. Those
indicated with a (*) attended via video conference.
1. Pavement Management — Review and Discuss Funding Policy.
City Administrator/Finance Director Adam Flaherty stated following the last discussion, staff
researched how neighboring communities use franchise fee revenues and their assessments for
pavement management projects.
Examples of other City's assessment policies:
• Rogers/Elk River have Franchise Fees in place, no assessment to residents. New
pavement and gravel is assessed to those projects.
• St. Michael has assessments, Albertville does not. Electrical Franchise Fees used
towards street lighting, traffic signals, they have a different model.
• Monticello does assess for street projects.
• Dayton — most recently dedicating to debt services / interchange and do not assess.
Currently the City's policy for assessing is 50/50 between property taxes and special
assessments. Each property using the street is assessed equally. Over the past years the
council has been exploring using Franchise Fees to fund pavement projects.
Franchise Fees reduce property taxes. Staff estimates $700,000-$800,000 per year would be
generated from franchise fees. These fees would be set-up to a dedicated fund.
Engineer Wagner noted Franchise Fees would be paid by all property owners, including those
living on County Roads and MSA roads. This would add homes to help share the costs. These
property owners also benefit from the use of the local streets.
For the City to implement Franchise Fees, a public hearing is required. The public has an
opportunity to give their feedback.
Unless there is strong opposition from the City Council staff will work on agreements with the
Utility Companies. All council members stated they are in support of a Franchise fee.
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Council asked about establishing a set assessment amount. Engineer Wagner explained some
cities have a set assessment amount and a public hearing is still required. If assessing any
amount, the city would still need to follow Minnesota Statue 429.021 procedural requirements.
The 429 process starts with the engineering feasibility report, call for hearing, residents are
noticed, residents attend, council decides and order engineer specs, go out for bids, assessment
hearing sent to the residents, and then council decides to move forward. The cost related to the
assessment hearing process add to costs of the project.
If 100% of the development petitions for the improvements, the 429 process may be waived.
Engineer Larson prepared a spreadsheet assuming all streets were reconstructed: 7,409 lots /
total cost $4,865.22 per lot (2021 pricing). There are 96 miles of local roads and 120 of total
Roads. He added the average cost for the 10 year average CIP cost, is a little over $600,000
per year.
Mayor Stockamp added we would want costs for projects to show the benefit. Pay a little every
month vs. a lump sum assessment. Need well defined and prepared examples, showing why the
improvement is worth the benefit. Assessments costs have to show the value of the
improvement.
More urgently the City will need to address the Heritage Hills paving project. Heritage Hills
does not support the estimated assessment due to large acreage lots.
City Administrator/Finance Director Flaherty noted this is an impactful decision to move forward.
Council discussed several options: levy, special assessment, establish a flat fee per property,
average the tax value of all homes in the project to come up with an assessment formula, and
franchise fees. Also possible rebates for previous assessments, although not recommended.
Also, consider revisiting the funding policy. Staff would need to establish guidelines based on
the project. The engineer would need to do more research.
Mayor Stockamp motioned to continue the pavement management discussion to a
special meeting on Monday, February 22, 2021 at 6pm, seconded by CM
Darkenwald. Roll Call: In favor; Goede, Stockamp, Darkenwald, Moores and Dahl.
Against; none. Motion carried 5-0.
Staff will do further research and bring back to the next meeting.
CM Darkenwald motioned to continue this special meeting following the 7 PM City
Council meeting, seconded by Mayor Stockamp. Roll Call: In favor; Goede,
Stockamp, Darkenwald, Moores and Dahl. Against; none. Motion carried 5-0.
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2 Review Proposed Topics for Future Special Council Meetings.
City Administrator/Finance Director Flaherty noted the pavement management discussion will
be covered at the February 22, 2021 special meeting.
Other topics to add:
• Pavement Management
• Advisory Commission interviews are scheduled for February 11, 2021.
• Council Photos need to be scheduled based on availability.
• Human Resources/Assistant City Administrator interviews scheduled for Monday, March
29, 2021 at 5:30pm and 6:30pm, allowing one hour each for the top two candidates.
Staff will add the details to the job profile
Mayor Stockamp motioned call for a special meeting to schedule the interviews for
the HR/Assistant City Administrator for Monday, March 29, 2021 starting at 5:30
PM, seconded by CM Moores. Roll Call: In favor; Goede, Stockamp, Darkenwald,
Moores and Dahl. Against; none. Motion carried 5-0.
• Local Board of Appeal is scheduled from April 26, 2021 at 5:30 PM
• Fire Services — conversation and direction / brainstorming. Fire study is on the website.
March 22, 2021 at 5:30 PM. This will be an agenda item on the next meeting to call for
the next meeting.
• Strategic Planning on how to move forward. March 8, 2021 at 6pm. This will also be on
the next agenda to schedule.
• June 2021 the Audit Firm Presentation for 2020, usually review at 6pm meeting and
accept at the regular meeting.
• The Community survey is being discussed at the Admin Subcommittee, will come to
Council at a future meeting.
• Budget meetings in the future.
Update, staff met with Wold to discuss the agreement, this will be a consent agenda item at a
future meeting. Recommending a core planning group to streamline and keep the project
moving, Public Works Subcommittee is already meeting. Council agrees the PW Subcommittee
should be the group, they will keep Council informed.
3. Adjourn.
CM Darkenwald motioned to adjourn at 8:01 PM, seconded by CM Goede.
Roll Call: In favor; Goede, Stockamp, Darkenwald, Moores and Dahl. Against, none.
Motion carried 5-0.
Mayor Jessica Stockamp
ATTEST:
Audra Etzel, City Cle
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