03-14-22 City Council Meeting MinutesOTSEGO CITY COUNCIL MEETING
MONDAY, MARCH 14, 2022
7:00 PM
OTSEGO PRAIRIE CENTER
Call to Order.
Mayor Stockamp called the meeting to order at 7:00 PM.
Roll Call:
Mayor Jessica Stockamp; Councilmembers: Tom Darkenwald, Tina Goede, and Jeff Dahl. Absent:
Councilmember Brittany Moores. City Staff: City Administrator/Finance Director Adam Flaherty; Human
Resources/Assistant City Administrator Sabrina Hille; Utility Manager Kurt Neidermeier, 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:
Special Presentation — Elk River Fire Department.
Fire Chief Mark Dickinson reviewed the 2021 Elk River Fire Department Annual Report.
CM Darkenwald asked about the response time with Station 3 coming on line? Fire Chief Dickinson said
due to the strategic locations, this will not affect the response time to the City of Otsego. CM
Darkenwald asked if the same equipment will be shared with the third station? Chief Dickinson said
some of the equipment. The department has added a brand-new engine and tender, additionally they
added a grass rig to the fleet. Chief Dickinson said they have enough equipment to respond to calls.
Mayor Stockamp asked about the third station response times with the expansion of Hwy 169? Chief
Dickinson said they will have additional equipment to bring to the scene if needed.
Mayor Stockamp and City Council thanked Fire Chief Dickinson and the Elk River Fire Department for
their service.
Mayor Stockamp opened the Open Forum at 7:14 PM.
Kathleen Woodford, 14106 82nd Street NE, believes the road she lives on is going to be repaired. Mayor
Stockamp asked her to hold her comments until the public hearing for Item 4.1.
Mayor Stockamp closed the Open Forum at 7:15 PM.
2. Consider Agenda Approval.
City Administrator/Finance Director Flaherty asked to add item 8.1 Housing and Local Decision -Making
Authority to the agenda. Supporting documentation for 8.1 was handed out prior to the meeting.
CM Darkenwald motioned to approve the agenda as amended, seconded by CM Goede. All
in favor. Motion carried 4-0
3. Consent Agenda.
3.1 Approve Claims List.
3.2 Approve City Council Meeting Minutes.
A. February 28, 2022 Meeting.
B. February 28, 2022 Special Meeting.
3.3 Approve City Council Special Compensation for February 2022.
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MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING MARCH 14, 2022
3.4 Approve Hiring of the Utility Billing Position.
3.5 Adopt Resolution 2022-22 Approving a Transfer of Funds.
3.6 Adopt Resolution 2022-23 Approving Findings of Fact, Conclusions and Responses — Project 011ie.
3.7 Adopt Resolution 2022-24 Accepting Bids and Awarding Contract — Street Maintenance.
3.8 Adopt Resolution 2022-25 Accepting Bids and Awarding Contract — Street Micro -Surfacing.
3.9 Approve Hiring of the Recreation Leader Position.
3.10 Approve Seasonal Maintenance Job Description.
3.11 Approve Staff Advancement to Street Maintenance II Position.
CM Darkenwald motioned to approve the consent agenda as written, seconded by CM Dahl.
All in favor. Motion carried 4-0.
4. Engineering;
4.1 Walesch Estates & O'Day Acres Street Renewal Project.
A. Presentation by City Engineer Wagner.
B. Public Hearing on Proposed Improvement.
C. Consider Adoption of Resolution 2022-18 Receiving Feasibility Report and Calling Hearing_
City Engineer Wagner presented the staff report.
Mayor Stockamp opened the Public Hearing at 7:26 PM.
Kathleen Woodford, 14106 82nd Street NE said the project is bad timing due to the economy and war.
Mrs. Woodford and her husband are on a limited budget and they can't afford to pay or have added to
their property taxes. Mrs. Woodford would like to know why the project can't be put on hold and why
the City is doing the project now? Engineer Wagner said the streets are evaluated annually and given a
Pavement Condition Index score, unfortunately this area is due for repair due to the condition.
Mayor Stockamp closed the Public Hearing at 7:29 PM.
CM Darkenwald noted the estimated project cost is $991,711 and of that amount $877,051 will be paid
by the City and the benefiting property owners would pay $114,660 or $1,092 per lot. He asked what
would have been the amount with the old formula? Engineer Wagner said the old formula would have
been 50% of total project costs, or $4,445 per lot and added the $1,092 amount will not increase even if
the project cost exceeds the estimates. City Administrator/Finance Director Flaherty said the amount is
usually amortized over 10 years at an interest rate of 1.5% over the bonded rate. CM Darkenwald said
he appreciates residents on a fixed income, at the same time the road is falling apart and needs to be
repaired. CM Darkenwald added the City has gone to extreme lengths to reduce the amount paid by the
residents.
CM Darkenwald motioned to approve Resolution 2022-26 Ordering Preparation of Plans and
Specifications for the 2022 Street Renewal Improvement of Streets within Walesch Estates
and O'Day Acres, seconded by CM Dahl. All in favor. Motion carried 4-0.
5. Planning:
5.1 Room & Board:
A. Presentation by City Planner Licht.
B. Conduct Public Hearing.
C. Consider Adoption of Resolution 2022-27 Approving Vacation of Existing Drainage and
Utility Easement.
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MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING MARCH 14, 2022
D. Consider Adoption of Resolution 2022-28 Approving a Site Improvement Performance
Agreement.
City Planner Licht presented the staff report.
The representative from Room & Board, was present and had no additional comment.
Mayor Stockamp opened the Public Hearing at 7:38 PM.
No one from the public spoke. Mayor Stockamp closed the Public Hearing at 7:38 PM.
CM Dahl motioned to approve the relocation of the existing City trunk utilities and related
easement dedication; adopt Resolution 2022-27 vacating existing drainage and utility
easements; and adopt Resolution 2022-28 approving a SIPA for Lot 1, Block 1, Gateway
North 4t" Addition; seconded by CM Goede.
CM Darkenwald asked when this was originally approved? City Planner Licht said 2004.
All in favor. Motion carried 4-0.
CM Darkenwald asked when will the project start? City Planner Licht said April of 2022.
5.2 VIP Autoplex:
A. Presentation by City Planner Licht.
B. Consider PUD Concept Plan.
City Planner Licht presented the staff report.
Mr. Ben Krsnak, VIP Autoplex LLC, agrees with the City Planner's report. This is a concept plan and he
would like feedback before they move forward with investing into drawings.
CM Dahl asked if Mr. Krsnak is involved with other communities with this type of concept? Mr. Krsnak
said this is their first project of this type and some of the partners are involved in other car condos; they
are advising on design, layout and construction items. CM Dahl asked if there will there be car shows?
Mr. Krsnak said this would be up to the association, as the developer they will build and turn it over to
the group. Mr. Krsnak said most of the car condos do display their cars. CM Goede asked why he was
drawn to Otsego? Mr. Krsnak said he has property in the area and he likes this site location off of I94
and nearby amenities.
CM Darkenwald asked about other uses on this property. City Planner Licht said professional office,
manufacturing, less emphasis on warehouse, and no outdoor storage on this site. City Planner Licht
noted given the changes to the south, from entertainment to industrial, this area has changed from what
was originally guided as a retail use; with the Comp Plan coming up this area likely will be straight
industrial.
CM Darkenwald said he attended the PC meeting and he likes the concept and feels his concerns will be
addressed with the design, security and parking for events as the project moves forward. Mayor
Stockamp also likes the concept and has concerns regarding noise, alcohol, driving up and down 70th
Street and will wait to hear how the HOA will address the concerns.
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MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING MARCH 14, 2022
CM Dahl motioned to support a PUD Concept Plan subject to the comments as presented in
the Planning Report dated 3rd of March, 2022 prepared by the City Planner, seconded by CM
Darkenwald. All in favor. Motion carried 4-0.
6. Utilities
6.1 West Wastewater Treatment Facility — Bidding:
A. Presentation by AE2S.
B. Consider Authorization for Preparation and Solicitation of Construction Bids.
AE2S Engineer Scott Schaefer presented a Power Point update on the West WWTF and is requesting the
City Council approve the solicitation of bids.
The West WWTF project updates include an upgraded preliminary treatment building, a new fine
screening building, upgraded secondary biological treatment process, membrane biological treatment,
UV disinfection, cascade aeration, administration building, civil/site improvements, associated electrical,
controls mechanical improvements, and miscellaneous upgrades. The expanded capacity of the facility is
projected to accommodate 20 plus year of community growth.
Project funding is anticipated to be primarily from a low interest loan from the State Revolving Fund,
with additional project grant opportunities including the Green Project Reserve, ARPA Funds, and a Grant
through Wright County.
The project Schedule: City Council authorize bid advertisement, open house, advertisement for bids, pre-
bid meeting with prospective contractors, bid opening, bid presentation to City Council for project award,
sign contract, operation completion and final completion by June 2024.
Mayor Stockamp asked where are the delays with the MPCA? Engineer Schaefer said the chloride
variance is a big component for the delay with the MPCA. There are requirements to notice before the
project can move forward. Mayor Stockamp asked if a certain number is required to comply. Engineer
Schaefer said eventually there are numbers that will need to be met. EPA has been more of an issue vs.
MPCA. CM Darkenwald asked about the application process. Engineer Schaefer said there are two
separate pieces: limits (discharge permit being renewed) and funding and permit.
CM Darkenwald asked if there are any supply issues? Engineer Schaefer said the challenges are: lead
times; electrical gear (control centers), pre -casts concrete (will vary with the construction season), and
labor is also an issue (contractors that bid are usually unions and have a more stable work force).
CM Dahl motioned to authorize preparation of solicitation for bids for the Otsego West
Wastewater Treatment Facility Phase 1 Improvements Project, seconded by CM Goede. All
in favor. Motion carried 4-0.
6.2 West Wastewater Treatment Facility — Bidding_
A. Presentation by City Administrator/Finance Director.
B. Consider Authorization for Preparation and Solicitation of Construction Bids.
City Administrator/Finance Director Flaherty said to pay for the West WWTF project the City will need to
borrow funds. Staff has prepared a resolution, upon adoption by the City Council, would authorize City
staff to submit the loan application to PFA.
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MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING MARCH 14, 2022
CM Darkenwald noted the City's bond rating has increased and currently is at AA+. City
Administrator/Finance Director Flaherty agreed with CM Darkenwald. The anticipated interest rate for
this project is about 1.25%. Currently PFA defaults to a 20 -year amortization schedule, staff will see if
they will push the term limits out further.
CM Goede motioned to adopt Resolution 2022-29 authorizing a Clean Water Revolving Fund
loan application to the Minnesota Public Facilities Authority., seconded by CM Darkenwald.
All in favor. Motion carried 4-0.
7. City Council Reports and Updates:
No reports.
8. Staff Reports and Updates.
8.1. Housing and Local
City Planner Licht said MN home builders, through Housing First Minnesota are seeking through
proposed legislation to restrict a city's ability to define and regulate residential development through
zoning ordinances (related to: exterior finishes, garage size, lot area, lot width, etc.). The League of
Minnesota Cities is requesting cities adopt a resolution to support the efforts of the LMC to advocate
during the current legislative session for maintaining local control for decisions regarding housing policy
and regulation of construction. Staff has drafted a resolution that has been reviewed by the City
Attorney and City Planner. The resolution and letters would be forwarded to the City's elected
representatives. Mayor Stockamp is in favor of supporting the resolution. CM Darkenwald asked about
the MN home builders being successful in the past. City Planner Licht said yes, most recently regarding
transportation funding and park dedication fees. City Attorney Kendall said the LMC's on their website
has a list of other cities opposing the bill.
CM Darkenwald motioned to adopt Resolution 2022-30 regarding housing and local decision
making, seconded by CM Goede. All in favor. Motion carried 4-0.
Human Resources/Assistant City Administrator Hille said the utility billing recruitment process is
completed and the hire was approved tonight, seasonal hiring will be starting, and planning for the
administrative intern recruitment.
City Administrator/Finance Director Flaherty requested City Council schedule a special meeting at 6 PM.
Mayor Stockamp motioned to call for a special meeting on March 28, 2022 at 6 PM,
seconded CM Dahl. All in favor. Motion carried 4-0.
City Administrator/Finance Director Flaherty stated road restrictions go into effect this week.
Wright County Sheriff's Department Sergeant Oltmanns said he agrees with the Elk River Fire
Department's report regarding vehicle accidents being up 20%. Wright County Sheriff's Office has
established a drive -off policy for drivers not paying for their fuel at gas stations; noting he has concerns
with the high price of gas. CM Dahl asked if the flashing yellow lights have decreased accidents?
Sergeant Oltmanns said they are seeing less accidents/injuries at the intersections that have the yellow
flashing lights and round abouts have also decreased accidents and less injuries.
City Engineer Wagner said the open house for the street improvement project went will with 15 property
owners in attendance. Residents attending the open house asked about water and sewer access, he
explained they would need to petition the City.
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MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING MARCH 14, 2022
9. Adjournment.
CM Darkenwald motioned to adjourn at 8:38 PM, seconded by CM Goede. All in favor.
Motion carried 4-0.
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Audra Etzel, City Clerk
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Jes ' a Stockamp, Mayor