08-23-21 City Council MinutesCITY OF OTSEGO
OTSEGO CITY COUNCIL MEETING
MONDAY, AUGUST 23, 2021
7:00 PM
OTSEGO PRAIRIE CENTER
Call to Order.
Mayor Stockamp called the meeting to order at 7:01 PM.
Roll Call:
Mayor Jessica Stockamp; Councilmembers: Tom Darkenwald, Tina Goede, Jeff Dahl and Brittany Moores.
City Staff: City Administrator/Finance Director Adam Flaherty; Human Resources/Assistant City
Administrator Sabrina Hille; City Attorney Dave Kendall; City Engineer Ron Wagner; City Planner Daniel
Licht; and City Clerk Audra Etzel.
Pledge of Allegiance: Mayor Stockamp led in the Pledge of Allegiance.
1. Open Forum:
Mayor Stockamp opened the Open Forum at 7:04 PM.
Keith Knutson of 6630 O'Dean Avenue NE said he has lived on his 5 -acre property for 22 years. Mr.
Knutson said his neighbor has built a driveway on his north property line. Mr. Knutson is having issues
with trespassing and illegal activity on and near his property, on average of twice a week. Mr. Knutson
played an audio recording from an encounter today with someone parking in the no parking zone. CM
Darkenwald asked City Attorney Kendall if the audio is allowed. City Attorney Kendall said he did not see
an issue with listening to the audio and added the audio would not be included into the meeting
minutes. Mr. Knutson wants the turnaround taken off of his property. Mr. Knutson said he has lost 50'
of his property and has people constantly trespassing. Mayor Stockamp asked the City Engineer and
City Planner to research the property lines. City Planner Licht said Mr. Knutson cannot put a fence in the
prescriptive road easement. City Planner Licht will work with the Streets Department. Further, Mr.
Knutson wants the 15' on the south and '15 on the north back. Mayor Stockamp asked Mr. Knutson to
speak to the Wright County Sheriff's Department.
Michael Steiner of 10605 741h Lane NE said he was at the meeting tonight to discuss the trail project.
Mr. Steiner commented that at this time no dirt has been moved and the contractor will be out of
compliance with the contract within two -weeks. Mr. Steiner said he has talked to the contactor and was
promised the project would be completed before school started. Mr. Steiner knows there is a $300 a
day penalty, he is wondering how this is calculated. Mr. Steiner has been asked by fellow neighbors and
the HOA President what is the status of the project. Mr. Steiner understands the vetting took 10 days.
Mr. Steiner further asked if the contractor has been contacted to discuss the completion date and
penalty. Mayor Stockamp said she has spoken to the contractor and they are aware of the potential
penalty. The paths at Page and O'Dean are currently ripped up and are part of the school trail, whereas
the Kittridge Crossing path is new; and until the deadline has been reached there is no penalty. CM
Darkenwald has heard Mr. Steiner's concerns and staff is addressing the issue and will make sure the
contract is enforced. Engineer Wagner said the contractor is making progress on Page and O'Dean, and
plans to have pavement by August 31. Engineer Wagner said staff is on site following up on the project
and staff is following up with the contractor. Engineer Wagner said as long as the contractor is working
on the project a penalty is not calculated until the project has been completed. Engineer Wagner said
the City bid the project and went with the lowest bidder. CM Darkenwald asked the Engineer's office to
continue to update the City Council on the project status.
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Mayor Stockamp closed the Open Forum at 7:29 PM,
2. Consider Agenda Approval.
CM Darkenwald motioned to approve the agenda as amended to adding 5.2 Villas at
Kittredge Crossings, seconded by CM Goede. Roll Call: Voted in favor; Darkenwald, Goede,
Stockamp, Moores, and Dahl. Voted against; none. Motion carried 5-0.
3. Consent Agenda.
3.1 Approve Claims List.
3.2 Approve City Council Meeting Minutes.
A. August 9, 2021 Meeting.
B. August 9 2021 Special Meeting.
3.3 Approve Closure of City Offices on September 9 2021 (8AM-1PM) for Employee Training.
3.4 Admit Resolution 2021-64 Establishing a Crosswalk Policy.
3.5 Adopt Ordinance 2021-15 Amending the Zoning Map & Approve a Conditional Use Permit -Kolles.
3.6 Accept Quotes and Award the 2021 Trail Maintenance Project to Asphalt Concrete Solutions, Inc.
3.7 Accept Quotes and Award the 2021 Contracted Patching Project to Omann.
3.8 Accept Proposal and Approve Safety Consultation Services Agreement to SafeAssure.
3.9 Adopt Resolution 2021-65 Establishing No Parking Zone on Quantrelle Avenue.
Mayor Stockamp motioned to approve the consent agenda as written, seconded by CM Dahl.
Roll Call: Voted in favor; Stockamp, Darkenwald, Goede, Moores, and Dahl. Voted against;
none. Motion carried 5-0.
4. Administration:
4.1 Series 2021 Bond Issuance:
A Presentation by City Administrator/ Finance Director Flaherty.
B Consider Approval of Municipal Advisory Service Agreements with Northland
Securities, Inc.
C Consider Resolution 2021-66 — Providing for Issuance and Sale of Series 2021A
Bond.
D Consider Resolution 2021-67 — Providing for Issuance and Sale of Series 2021B
Bond.
City Administrator/Finance Director Flaherty presented information on the bond proposals received today
and handed out for City Council consideration. Jessica Green with Northland Securities reviewed the
results of the bond summary, noting both rating came back as AA+. Ms. Green congratulated the City
on the strong rating. CM Darkenwald had a question on the credit report since approved as AA+, what
areas can be approved to earn a AAA rating? Ms. Green said there are certain areas the City can
control, such as value under the pure level, increase reserve levels or if the City continues to see the
growth. Ms. Green feels the City is on the path to achieving a AAA rating. CM Darkenwald would like to
see a historic review of the City's bond ratings. Ms. Green can provide back as far as the late 1980's.
Ms. Green reviewed the sales summary for the 2021A Bonds for the Water Revenue Bonds $4,345,000
which is to fund the new water tower #4 and pay the cost of issuance. This is a 15 -year structure with
relatively level principal and interest payments throughout. Competitive sales were this morning and
four bids were received, Robert W. Baird & Co., Inc. being the lowest bidder and a final maturity in 2037
with a call feature beginning in February 1, 2029. The bond did receive some premium so the par
amount was reduced. The cost on the interested was anticipated to be 1.44% and ended up being
1.40% for a drop of 4 basis points and the true interest rate came from 1.34% down to 1.31% for a nice
drop. Ms. Green reviewed further details.
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CM Darkenwald asked about the resolution in the packet having the final amounts? City
Administrator/Finance Director Flaherty explained the numbers in the packet were a draft, not finalized
until today and have since been updated.
Ms. Green reviewed the 2021B Bond General Obligation Water and Sewer Refunding Bonds of
$7,390,000 with proceeds to refund the current 2010C Bonds that are outstanding. Structured with
maximum savings on the outstanding balance on the bond. They had anticipated a true interest rate of
.59% and ended up with .34% which is incredibly low, for a savings of $496,333. There were five bids,
with Raymond James & Associates, Inc. being the low bidder and this is who they recommend awarding
the bonds. The debt services were compared. There is no callable feature since this is due in 2026, the
interest rate would have been higher to include a callable feature.
CM Darkenwald motioned to approve Resolution 2021-66 Providing for the Issuance and
Sale of General Obligation Water Revenue Bonds, Series 2021A, seconded by Mayor
Stockamp. Roll Call: Voted in favor; Stockamp, Darkenwald, Goede, Moores, and Dahl.
Voted against; none. Motion carried 5-0.
CM Darkenwald motioned to approve Resolution 2021-67 Providing for the Issuance and
Sale of General Obligation Water and Sewer Revenue Refunding Bond, Series 2021B,
seconded by Mayor Stockamp. Roll Call: Voted in favor; Stockamp, Darkenwald, Goede,
Moores, and Dahl. Voted against; none. Motion carried 5-0.
S. Planning:
5.1 The Meadows of Otsego (previously Hansen Heights):
A. Presentation by City Planner Licht.
B. Consider Approval of Preliminary Plat and PUD -CUP.
C. Consider Approval of a Final Plat.
D. Consider Resolution 2021-68 Approving a Development Contract.
City Planner Licht presented the staff report.
The developer Henry Hansen was present to answer questions. Mr. Hansen said they added some lots
to satisfy their builder. Mayor Stockamp asked about the closure of 75th for utilities. Mr. Hansen said
the closure would take about 10 days, depending on the weather. Engineer Wagner said there is also a
watermain that will take a couple days to complete. CM Darkenwald asked how is it working with the
City staff? Mr. Hansen said there is a lot of work going to the development, the staff is very
knowledgeable.
CM Goede motioned to approve a preliminary plat/PUD-CUP and final plat for the Meadows
of Otsego (previously Hansen Heights) subject to the conditions stated by the Findings of
Fact and Decision and adopt Resolution 2021-68 approving a Development Contract,
seconded by CM Dahl.
Roll Call: Voted in favor; Stockamp, Darkenwald, Goede, Moores, and Dahl. Voted against;
none. Motion carried 5-0.
5.2 Villas at Kittredge Crossings
A. Presentation by City Planner Licht.
B Consider Extension to Record the Final Plat of Villas at Kittredge to September
30, 2021.
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City Planner Licht presented the staff report. The final plat was approved on March 31, 2021 and
extended 100 days to August 30, 2021. The developer, Otsego's Finest Homes, LLC, requested a 30 -day
extension to September 30, 2021. Once they close on their finances, they can submit their final plat.
CM Darkenwald motioned to approve an extension to record the final plat of Villas of
Kittredge Crossings to the 30th of September, 2021, seconded by CM Goede. Roll Call: Voted
in favor; Stockamp, Darkenwald, Goede, Moores, and Dahl. Voted against; none. Motion
carried 5-0.
6. City Council Reports and Updates.
Mayor Stockamp said City Council is waiting on updates regarding the trails project from staff.
CM Darkenwald asked about the Quaday closure for M/I homes, and how long the road was closed?
Engineer Wagner said it was closed for about 10 days for their project, most of the time is for the
dewatering and waiting for the drawdown of the water.
6.1 Commission Liaison Updates:
A. Heritage Preservation Commission - Liaison CM Moores had no updates.
B. Parks and Recreation Commission - Liaison Mayor Stockamp said the commission
reviewed the Park's Master Plan updates.
C. Planning Commission - Liaison CM Darkenwald said the Commission reviewed and
approved the Kolles application and the Bancor Group, Inc. application was denied. Planner Licht said
Bancor Group, Inc. withdrew their application following the Planning Commission voting 7-0. Mayor
Stockamp asked if the applicant can come back after they withdraw? Planner Licht said with
comprehensive plan amendments there are no limitations as they are governed by state statue.
D. Public Safety Commission - Liaison CM Goede said the Commission discussed the Prairie
Festival on September 18tH and clean-up prior to their next meeting scheduled for September 14tH
7. Staff Reports and Updates.
Engineer Wagner said the Heritage Hills project is progressing well with the curb in and working on class
5. Mayor Stockamp commented that the Heritage Hills residents have said they have had great
communication regarding the project.
Sergeant Oltmans said Rockwood's had their concert last night with no major incidents. The only issue
with the concert was the additional traffic. The Wright County Sheriff's Department is working on a
major case involving three properties between Monticello and Otsego regarding property damage; 2 of
the 3 properties had no one home at the time of the incident. Mayor Stockamp asked if there were any
updates on speeding on Packard Avenue? Sergeant Oltmans said they have not stopped anyone for
speeding and the residents are staying in contact.
7. Adjournment.
CM Darkenwald motioned to adjourn at 8:10 PM, seconded by CM Goede. Roll Call: Voted in
favor; Stockamp, Darkenwald, Goede, Moores and Dahl. Voted against; none.
ATTEST: (TILA�
Audra Etzel, City Clerk
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340i -ca Stockamp, Mayor