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06-07-10 SCCCITY OF OTSEGO SPECIAL CITY COUNCIL MEETING MINUTES June 7, 2010 Roll Call: Otsego City Council: Mayor Jessica Stockamp, Councilmembers Dan Scharber, Tom Darkenwald and Vern Heidner. City Staff: City Administrator Michael Robertson, Finance Director Gary Groen, Public Works Supervisor Brad Belair, City Engineer Ron Wagner and City Planner Dan Licht. 1. Mayor Jessica Stockamp will call the meeting to order. Mayor Stockamp called the meeting to order at 5:30 p.m. 2. Review of 2009 Audit Andy Berg of Abdo & Eick reviewed the 2009 audit, focusing primarily on the management letter. He said that it was a clean audit and that there were no issues other than a concern about limited segregation of duties due to only a few employees in the Finance department. The Council discussed the possibility of a quarterly review of City finances by an outside consultant as a way of addressing this. Mr. Berg then reviewed the General Fund, Special Revenue Funds, Capital Project Funds, Debt Service Funds, Enterprise Funds and Ratio Analysis with the Council. He noted that Otsego's property taxes per capita are much lower than similar sized cities. Councilmember Darkenwald moved, seconded by Councilmember Scharber, to accept the udit. Motion carried 4-0. 3. Review of Great River Center Streets City Engineer Wagner stated that the two and a half inch base asphalt street was constructed in fall, 2006 and it is heavily cracked. In his opinion it is not worth putting the second lift of asphalt upon this as the cracks would come through in a year or two. He reviewed three options for fixing the base course before putting the second lift down and recommended Option #1. He noted that the City has a $125,000 escrow for the street and that this is backed by a $300,000 Letter of Credit. The Council discussed this with Bill Christian who was representing Apello, the owner of Great River Center. Mr. Christian said that they did not have any other options for fixing the street and he did not think his partners would be willing to put additional funds into the development. Council discussed various options for fixing the street and completing the project. They directed City Engineer Wagner to come to the next Council meeting with estimated prices for fixing each segment of the street in Great River Center. Councilmember Darkenwald moved, seconded by Councilmember Heidner, to accept the City Engineer's recommendation of Option #1, for Apello to let the City Council know of any other alternative by June 14, 2010, and to instruct the City Attorney to prepare the necessary paperwork to pull Apello's Letter of Credit. Motion carried 4-0. 4. Frankfort Park Update Public Works Supervisor Brad Belair updated Council on the construction of Frankfort Park. Doug Schroeder was present and apologized for the delay in the concrete work. He said he would do his best to get people in to finish the work this week. The Council was in consensus that if the work was not finished this week that Brad Belair could hire a contractor to finish it. 5. 2011 Budget Review Finance Director Groen reviewed general projections for the 2011 budget and reviewed projections for future budgets and debt service. Council directed staff to reduce the Building department allocation based on reduced usage, to check on any limitations in refinancing some of the current bonds and to get the projections for 2011 under $4,000,000. They also agreed to begin detailed budget discussions at the first Council meeting in July. 6. Other Business Given the amount of material that will need to be reviewed about Great River Center, Mayor Stockamp asked Council and staff to meet at 6:30 p.m. on Monday, June 14 before the regular City Council meeting. City Engineer Wagner noted that Assistant City Engineer Joe MacPherson was leaving to take another job and that his last day would be June 17tn. Council asked Administrator Robertson to contact the people north of City Hall to ask their response to the offer to swap land.with them. 7. AdIournment Councilmember Scharber moved, seconded by Councilmember Darkenwald, to adjourn at 8:37 p.m. Motion carried 4-0.