06-14-21 Special City Council MinutesCITY OF OTSEGO
SPECIAL CITY COUNCIL MEETING
MONDAY, )UNE 14, 2021
5:30 PM
OTSEGO PRAIRIE CENTER
Call to Order.
Mayor Jessica Stockamp called the Special Meeting to order at 5:30 PM.
Mayor Jessica Stockamp; Councilmembers: Tom Darkenwald and Brittany Moores. City Staff:
City Administrator/Finance Director Adam Flaherty; Human Resources/Assistant City
Administrator Sabrina Hille; Kevin Lamson, Streets Operations Manager; Ross Demant, Parks &
Recreation Director; City Planner Daniel Licht; and City Clerk Audra Etzel. CM Tina Goede
arrived at 5:37 PM and CM Jeff Dahl (*) joined the meeting at 5:55 PM.
This meeting is preceding 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.
Those indicated with a (*) attended via video conference.
1. BerganKDV — Presentation of 2020 Audit
Nancy Schulzetenberg, BerganKDV (*) presented the audit findings that included the review of
the Communications Letter. The auditors expressed an unmodified opinion on the City's
financial statements. Ms. Schulztenberg further noted the PFA funding and CARES funds were
tested due to being over $750,000.
CM Darkenwald noted the General fund balance grew by $1.6 million, noting historically the City
is retaining 45% for expenditures and the City had 90% balance at the end of the year. City
Administrator/Finance Director Flaherty stated staff will present fund balance transfers as part
of the 2022 budget process for Council consideration.
CM Darkenwald also asked about the negative operating income in the stormwater fund after
depreciation. City Administrator/Finance Director Flaherty stated that although the City has a
property tax levy in this fund to account for operational costs, that line item is required to be
reported as non-operating in the financial statements, causing the operating loss with
depreciation. He further noted that the deprecation expense is increasing rapidly due to
developer contributed assets; staff will need to figure into future budgets.
CM Darkenwald further pointed out the tax capacity continues to fall and this is good. Ms.
Schulzentenberg stated, yes, the falling tax capacity is good. The city is capitalizing on
development and this is something to keep an eye on as she doesn't know how long this will
continue.
The Comprehensive Annual Financial Report is on the regular City Council meeting consent
agenda for adoption this evening.
2. Progress Report: Public Works & City Hall Facility Study.
City Administrator/Finance Director Flaherty introduced Jonathan and Jacob from Wold. Jake
recapped the guiding principles and space standards used in the Study.
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Jonathan discussed the facility tours highlighting the takeaways: 1) campus setting (integrating
facilities and maintain a reasonable separation), 2) security (staff and equipment), 3) customer
service accessibility (to better serve the public), 4) staff spaces (collaboration and daylighting
techniques), 5) formal council chambers (public participation & viewing and security for council
members & staff), 6) vehicle & equipment storage spaces (to allow for efficiency), and 7)
adequate working space (accommodate current and future fleet equipment).
Jonathan reviewed and discussed the recommended solutions and phasing as outlined in the
packet materials.
CM Darkenwald asked if the committee had an option if the buildings should be combined or
separate. Jonathan recommends prioritizing and doing in phases. City Hall should be
separated from Public Works. Propose starting with a new City Hall, next renovation and
addition to Public Works and finally renovate Parks & Recreation. This flow allows for continued
use of the space to seamlessly move forward.
Mayor Stockamp asked about the second level of the current City Hall/Public Works Building. If
there were a new City Hall, how would Public Works use the second level. Jonathan said the
second floor could be used for storage and allow for additional support space. Streets
Operations Manager Lamson added Public Works needs to account for future needs for storage.
CM Goede asked if there would be enough space to do maintenance on future fleet equipment
that requires higher ceilings. Streets Operations Manager Lamson said there are challenges
with this the current equipment regarding space.
Mayor Stockamp asked if there were any other cities the group would like to have toured to
continue getting ideas now that the proposal is to start with a City Hall? Jonathan said he feels
they did look at a variety of City Halls to get ideas, and further noted that if the City decided to
move forward with a project in the future, that additional tours should happen at that time with
the full City Council and staff.
Mayor Stockamp asked about a timeframe if the City were to consider moving forward with a
project. Johnathan said once approved it would be about 8 months to design and roughly 12-
24 months for construction. Jonathan further added it would also depend on how the Council
would finance the projects, there are a lot of factors that come into play.
Mayor Stockamp would like more time to process the recommendation.
CM Darkenwald said the project started as something different and this recommendation is a
new concept.
CM Goede said it makes sense to have City Hall separate from Public Works. The City is
growing and this may be the best option.
CM Moores would like the Council Chambers to be more formal and secure. Wants to make
sure the needs of Otsego are being met.
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CM Dahl asked to break down the cost per proposed project with all the options. Jonathan will
have the core planning group vet before bringing forward.
The City Council concurred that Wold and the Core Planning Group should continue exploring all
solutions and recommendations.
Mayor Stockamp at 7:04 PM motioned to continue this special meeting following the
7 PM City Council meeting, seconded by CM Darkenwald. Voice Roll Call: In favor;
Goede, Stockamp, Darkenwald, Moores and Dahl. Against: none. Motion carried 5-0.
Mayor Stockamp motioned to reopen this special meeting at 7:49 PM, seconded by
CM Darkenwald. Voice Roll Call: In favor; Goede, Stockamp, Darkenwald, Moores
and Dahl. Against: none. Motion carried 5-0.
3 2022 Budget, Tax Leyy and Capital Improvement Plan Review.
City Administrator/Finance Director Flaherty reviewed the following budget information in detail
as outlined in the packet; Special Revenue Funds, reviewing the seven funds, with only three
tax increment district funds having adopted budgets; Debt Service Funds, stating that there are
four debt service funds with only two having adopted budgets and the other two will have been
paid in full by the end of 2021; Property Tax Levy information was also reviewed; at this time
much of the information being used is estimates with the 2022 tax levy increasing
approximately 6.36%.
The Council discussed future capital improvement projects.
City Administrator/Finance Director Flaherty noted the next budget meeting is June 28th. Staff
will review the Capital Improvement Fund Levy's. Also looking at Franchise fees, Ehlers has
done some financial analysis. After adoption the franchise fees could go into effect in starting
in 2022.
4. Adjourn.
CM Darkenwald motioned to adjourn the meeting at 8:06 PM, seconded by CM
Goede. Roll Call: In favor; Dahl, Darkenwaid, Goede, Stockamp and Moores.
Against: none. Motion carried 5-0.
ATTEST: !Z�L
Audra Etzel, City Clerk
M or Jessica Stockamp
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