11-22-2021 Special City Council MinutesSPECIAL OTSEGO CITY COUNCIL MEETING
MONDAY, NOVEMBER 22, 2021
5:30 PM
OTSEGO PRAIRIE CENTER
Call to Order.
Mayor Jessica Stockamp called the meeting to order at 5:30 PM.
Roll Call: Mayor Jessica Stockamp; Councilmembers: Tom Darkenwald, Jeff Dahl and Brittany
Moores. Present City Staff: City Administrator/Finance Director Adam Flaherty, Human
Resources/Assistant City Administrator Sabrina Hille; Utility Operations Manager Kurt
Neidermeier; AE2S Engineer Scott Schaefer; and City Clerk Audra Etzel. Councilmember Tom
Darkenwald arrived at 5:36 PM. Absent: Councilmember Tina Goede
1. West WWTF — 60% Design Progress Report.
Engineer Schaefer said the original design/construction was in 2003/2004. The REC Capacity
(flow based): current 3,428, post -project 8,057, with ultimate buildout at 24,000. The West
WWTF existing layout and project schedule were reviewed, with a potential final completion of
December 2023. The project updates including: odor mitigation, noise mitigation, funding
overview (State and Federal), regulatory/permitting (NPDES Permit), site layout, and rendering.
The project site includes: existing pretreatment building addition, fine screen building
expansion, secondary biological treatment, blower building, membrane treatment building upper
and lower levels and administration building. The administrative building will look similar to the
East WWTF design. The cost and phasing were reviewed. This building will not have solar
array panels, as the cost would take too long to recoup with the electrical provider. There was
some discussion about grants for using solar arrays, but in the end the savings do not justify
cost.
Mayor Stockamp asked why the Solids Storage Tank is being kept? Engineer Schaefer said
there is a cost to demolish; and could be used for other purposes in future phases.
CM Moores asked how often the blower fans are running at the plant? Engineer Schaefer said
they run at all hours and need to meet building code classifications to run during those hours.
CM Darkenwald said the noise was discussed at the last Public Works Subcommittee.
CM Darkenwald asked about the funding. Engineer Schaefer said it is possible to get eligible
SRF funding for the project; it will depend on how the MPCA views the project. CM Darkenwald
asked who applies for the funding? Engineer Schaefer said their office would apply for the
funding on behalf of the City. City Administrator/Finance Director Flaherty said the schedule
was planned for 30 years, but the term of the loan will be less, projecting 1.67 percentage over
the length of the bond. City Administrator/Finance Director Flaherty added Wright County said
has earmarked a percentage of their ARPA funds for water/wastewater project, about
$700,000-$800,000. Plus, the City can use ARPA funds received. Utility Operation Manager
Neidermeier added the funds would need to be spent by 2024.
CM Darkenwald asked about the Environmental Assessment Worksheet (EAW) process.
Engineer Schaefer said the process has recently changed and they are still working through.
Mayor Stockamp asked if the anti -degradation was the item on the agenda tonight. Engineer
Schaefer said yes, this is on the agenda for City Council to approve.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING NOVEMBER 22, 2021
Mayor Stockamp asked about the distance of the closest buildings to the residential homes.
Engineer Schaefer will put together the dimensions. CM Darkenwald asked about the
landscaping, he would like to see some pine trees. Engineer Schaefer said they are getting to
the point to start looking at landscaping. The 100 -year flood plain is part of the consideration
for the landscaping.
CM Darkenwald asked about the fine screening process. Engineer Schaefer said there are
three, usually only use one or two; but need back up for redundancy.
CM Darkenwald asked about the cost savings from 30% completion to 60%. Engineer Schaefer
reviewed the savings. CM Darkenwald asked about the two vs. three trains. Engineer Schaefer
said the project would not meet the requirements with two trains, also the cost would increase
in the future.
There was some question and discussion about odor. Utility Operation Manager Neidermeier
said there will be a changeover during construction. The odor has been minimized with no use
of the storage tank. CM Darkenwald asked if the odor will increase during construction. Utility
Operation Manager Neidermeier feels the current process will continue and not create more
odor. CM Darkenwald said odor and noise have been an issue in the past. Utility Operation
Manager Neidermeier added that construction can be a challenge. Engineer Schaefer said they
are moving forward with what is successful at this site.
Engineer Schaefer will bring an update back to City Council in the spring of 2022.
2 2022 Budget, Tax Levy and Capital Improvement Plan Review.
City Administrator/Finance Director Flaherty said the Budget Meeting #11 items were included
in the packet. Utility Operation Manager Neidermeier reviewed the 2021 Utility Budget Narrative
and presented a power point.
Mayor Stockamp at 6:51 PM motioned to continue this special meeting following the
7 PM City Council meeting, seconded by CM Darkenwald. All in favor. Motion
carried 4-0.
Mayor Stockamp motioned to reopen this special meeting at 8:33 PM, seconded by
CM Moores. All in favor. Motion carried 4-0.
Engineer Schaefer did not return.
Utility Operation Manager Neidermeier said the budget highlight include: 550 water meter
replacements, lift station #2 — Riverpointe and 2022 staffing.
Mayor Stockamp asked about the meter replacement. City Administrator/Finance Director
Flaherty said ordinance provides that replacement meters are provided by the City. CM
Darkenwald asked how long the new meters are expected to last. Utility Operation Manager
Neidermeier said the new meters are expected to last 20 years; the battery life is expected to
coordinate with the meter life. City Administrator/Finance Director Flaherty said this is expected
to come back for City Council at the next meeting. Mayor Stockamp asked if the meter
replacement is being offered outside of office hours. Utility Operation Manager Neidermeier
said they will offer some evenings and Saturdays to install the new meters.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING NOVEMBER 22, 2021
CM Darkenwald asked when the Riverpointe Lift Station was expected to be replaced? City
Administrator/Finance Director Flaherty said the Lift Station is budgeted for 2022.
Mayor Stockamp asked about the additional staffing, pay grade and licensing for the foreperson
position. City Administrator/Finance Director Flaherty said the pay grade is Grade 9, a
difference of one grade from an Operator with B licensure. CM Dahl asked if the seasonal will
still be a hire? Utility Operation Manager Neidermeier, said yes, this is a great recruitment tool.
Utility Operation Manager Neidermeier is proposing to start advertising for the positions now if
City Council agrees. Human Resources/Assistant City Administrator Hille said there does not
have to be a certain time to keep positions open. The City Council discussed starting the hiring
process.
CM Darkenwald motioned to directed staff to begin the recruitment process for the
Utility Foreperson and Utility Operator, seconded Moores. All in favor. Motion
carried 4-0.
Water Utility Fund
City Administrator/Finance Director Flaherty said the utility rate study proposes a
6% increase to the rates. Fund also includes the proposed staff increase and water meters
(new and replacements) are included in this budget.
Utility Operation Manager Neidermeier reviewed the Water CIP: Well Field Study, Well 10 at
Well House 4, Well 2 Improvements (emergency well), and the East/West Water Connection
Initiation.
The City Council concurred as presented.
Sanitary Sewer Utility Fund
City Administrator/Finance Director Flaherty reviewed the fund. The sewer rate increase is
10%. Fund also includes the staffing and chemicals for a full year for the East WWTF. Utility
Operation Manager Neidermeier said they are seeing an increase in chemicals.
Utility Operation Manager Neidermeier reviewed the Wastewater CIP: West WWTF, West WWTF
Access Road, Lift Station 2 Improvements, and Biosolids Building project wrap-up.
Mayor Stockamp asked about the road for the West WW -FF. City Administrator/Finance Director
Flaherty said the owner and staff are waiting for the wetland report to see how much of the
property can be developed.
The City Council concurred as presented.
Storm Water Utility Fund
City Administrator/Finance Director Flaherty does not recommend any rate increases. There is
one piece of equipment that is proposed for cleaning up storm water drains.
The City Council concurred as presented.
Utility Rates
City Administrator/Finance Director Flaherty were reviewed: Water 6% and Wastewater 10%.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING NOVEMBER 22, 2021
The City Council concurred as presented.
Penalties on Delinquent Account Balances
City Administrator/Finance Director Flaherty said the 5% carried thru the end of 2021. Staff is
looking for direction on when to revisit the interest rate.
CM Darkenwald motioned to continue the interest rate at 50/o through June 2022,
seconded by CM Moores. All in favor. Motion carried 4-0.
General Fund
City Administrator/Finance Director Flaherty said the proposed changes since the Preliminary
Budget have been included. The bottom line listed is the amount that should be brought
forward for City Council approval at the next meeting.
Property Tax Levy
City Administrator/Finance Director Flaherty stated the City Council approved a preliminary
property tax levy of $8,585,005 in September. There have been no changes to the property tax
levy since that preliminary approval.
Next Meetings
City Administrator/Finance Director Flaherty noted the Truth -in -Taxation presentation is
scheduled for December 13, 2021 at 7:00pm.
3. Adjourn.
CM Darkenwald motioned to adjourn at 9:51 PM, seconded by CM Moores. All in
favor. Motion carried 4-0.
ATTEST: L L
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Audra Etzel, City Clerk
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