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05-09-22 City Council MinutesOTSEGO CITY COUNCIL MEETING MONDAY, MAY 9, 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, Brittany Moores, and Jeff Dahl. 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; AE2E Engineer Scott Schaefer 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 7:01 PM. No one from the public spoke. Mayor Stockamp closed the Open Forum at 7:01 PM. 2. Consider Agenda Approval. City Administrator/Finance Director Adam Flaherty said staff has provided and updated document for 4.1 CM Moores motioned to approve the agenda as written with the updated document for Item 4.1, seconded by CM Dahl. All in favor. Motion carried 5-0 3. Consent Agenda. 3.1 Approve Claims List. 3.2 Approve City Council Meeting Minutes, A. April 25, 2022 Meeting. B. April 25, 2022 Special Meeting. 3.3 Approve the City Council Special Compensation for April 2022. 3.4 Approve Closure of City Hall for Three Hours of May 17, 2022 for Emergency Management Training. 3.5 Approve the 2023 Budget Meeting Calendar and to Call for Special Meetings. 3.6 Adopt Resolution 2022-42 Supporting the "No Mow May" Initiative. 3.7 Approve Appointment for Interim Parks and Recreation Director. 3.8 Approve the Hire for the Administrative Intern Position. 3.9 Approve Pay Estimate #9 for the Water Tower #4 Project. 3.10 Interstate Development / Dakota Supply Group; A. Adopt Ordinance 2022-05 Amending the Zoning Map B. Approve the Preliminary/Final Plat, Interim Use Permit and Site/Building Plans. C. Adopt Resolution 2022-47 Approving a Development Contract, 3.11 Adopt Resolution 2022-48 Approving a Funding Application from the Drop Box Grant Program. 3.12 Approve Hiring of Two Seasonal Maintenance Positions. 3.13. Project 011ie: A. Approve the Final Plat B. Adopt Resolution 2022-49 Approving a Development Contract, C. Adopt Resolution 2022-50 Approving and Adopting Special Assessments. Page 1 of 6 MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING MAY 9, 2022 CM Moores motioned to approve the consent agenda as written, seconded by CM Dahl. All in favor. Motion carried 5-0. 4. Planning: 4.1 Riverbend North 2nd Addition: A. Presentation by City Attorney. B Consider Resolution 2022-43 Approving a Development Contract. C Consider Authorizing Release of Development Agreement for Phase 1. At 7:03 PM CM Darkenwald recused himself due to a family connection and stepped down from the dais. City Attorney Kendall presented the staff report. City Administrator/Finance Director Flaherty said the City's TIF Counsel, Mary Ippel with Taft Law drafted the TIF documents. CM Dahl motioned to adopt Resolution 2022-43 approving a development contract; to authorize City staff to execute release of development agreement; and adopt Resolution 2022-44 authorizing execution of an amended and restated TIF development agreement and two assignments of tax of increment notes, seconded by Mayor Stockamp. Voted in favor; Stockamp, Dahl, Goede, and Moores. Voted against; none. Abstained; CM Darkenwald. Motion carried 4-0. CM Darkenwald rejoined the meeting at 7:06 PM. 4.2 Prairie View Estates: A. Presentation by City Planner. B. Consider Ordinance 2022-06 Amending the Zoning Map. C. Consider Approval of a Preliminary Plat. City Planner Licht presented the staff report. Scott Dahlke, Project Engineer, was present on behalf of Prairie View Estates. CM Goede asked for clarification on the types of homes. City Planner Licht said there will be 28 single family, no villas. City Planner Licht noted the three property owners that spoke at the Planning Commission are to the south and had concerns regarding trees. Staff will contact the residents to have an on-site meeting before any site work will begin. City Planner Licht said the accesses to the development will be off Marlowe Avenue NE, 79th Street NE and new connection at 80th Street. CM Darkenwald asked if the new intersection will cause any issues? City Planner Licht said the intersection does meet the intersection spacing guidelines established in the zoning ordinance. One of the items discussed with ISD was routing bus traffic to and from the site and not allowing a right into the student/visitor parking lot off of 80th Street. Staff is looking at including funding in the Capital Improvement Plan for a turn lane for stacking of traffic on Maciver Avenue NE. City Planner Licht noted Marlowe Avenue NE west of Prairie Pointe will be removed. Mayor Stockamp noted there will be a change next year with the addition of the new Middle School having staggered times from the Elementary School. CM Goede asked if the City has considered a light at the four-way stop and will the turn on 80th Street NE and Marlowe Avenue NE be fixed? Planner Licht said that section Page 2 of 6 MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING MAY 9, 2022 of Marlowe Avenue NE will be taken out. City Engineer Wagner said that 80th Street NE was built wider to allow for school busses and they have asked the school district to not allow rights. Staff anticipates that with the addition of the middle school with different start times will help with the traffic. The preliminary costs to add a right turn lane is $125,000 where a stop light is over $350,000. City Engineer Wagner said the City does not own any signals, not sure if the light would alleviate the issue. CM Dahl said the school does not allow drop off until 7:50 AM and school doors open at 8:00 AM. Mayor Stockamp said the school does not have staffing to watch the children, this is why they cannot be dropped off earlier. Mayor Stockamp asked about no right turns off 80th Street. City Planner Licht said they are trying to avoid people from going through the neighborhood to drop off students. CM Moores asked when the project would start? Mr. Dahlke said they would like to start clearing the land, start the utilities, and final plat this year. CM Darkenwald motioned to adopt Ordinance 2022-06 amending the Zoning Map and approve the preliminary plat of Prairie View Estates, subject to the conditions as stated by the Findings of Fact and Decision, seconded by CM Moores. All in favor. Motion carried 5-0. 4.3 West Wastewater Treatment Facility: A. Presentation by City Planner. B Consider Approval of a Conditional Use Permit Amendment. City Planner Licht presented the staff report. CM Dahl motioned to approve a Conditional Use Permit amendment for the Otsego W-WWTF subject to the conditions as stated within the findings of fact and decision, seconded by CM Moores. CM Dahl asked what is the timeline for the project? Engineer Schaefer said about two years, they would plan to start construction this year and operational spring of 2024. All in favor. Motion carried 5-0. 5. Engineering: 5.1 Walesch Estates & O'Day Acres Street Renewal Project: A. Presentation by City Engineer. B Consider Resolution 2022-45 Accepting Bids and Awarding Contract. City Engineer Wagner presented the staff report. CM Darkenwald asked about the alternate bids. City Engineer Wagner said the alternate bid was mainly for the SW corner of the project, there is some standing water. The area does have deep ditches it does dry up enough to be maintained; staff is not recommend adding the alternate bid. Mayor Stockamp said she wanted to verify there would be no additional run-off due to the road improvements. City Engineer Wagner said the street will be at the same level and not cause any more run-off. City Engineer presented the project schedule, the contractor will have 9 weeks and the project needs to be completed by September 19th CM Goede motioned to adopt Resolution 2022-45 accepting bids and awarding contract for the 2022 Street Renewal Project, City Project No. 22-03 to OMG Midwest Inc. (dba Page 3 of 6 MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING MAY 9, 2022 Minnesota Paving & Materials) of Rogers, MN in the amount of $766,326.07, seconded by CM Darkenwald. All in favor. Motion carried 5-0. 5.2 West Wastewater Treatment Facility — Bids: A. Presentation by AE2S. B. Consider Resolution 2022-46 Accepting Bids and Awarding Contract. AE2S Engineer Schaefer presented the staff report. Engineer Schaefer noted the general contractor, electrical and mechanical will be the same as the East Biosolids Project. CM Darkenwald asked about the budgeted amount. City Administrator/Finance Director Flaherty said the budget is based around the annual debt service of the project more than it is the construction costs, but noted the CIP budgeted amount is less than what the contract came in at. The financing is tied to same process until there is a permit from the MPCA, the state revolving funds cannot be awarded to the project by the Public Facilities Authority. CM Darkenwald asked about the amendments and funding, the $2.196 million, $322,000, and the $68,200? City Administrator/Finance Director Flaherty said that is correct in addition to all cost incurred to -date as well. Engineer Schaefer said the contract amount of $2,196,000 this is estimates over the remaining course of the project. The operational completion is when additional REC added and the construction assumptions go to the end of 2024, there are other pieces of the project that will be completed after operations begin. CM Darkenwald asked if the $2,196,000 is enough money; will this get the project to the end? Engineer Schaefer said based on the information received this would be enough funds; if more funds were needed an amendment would be brought back to the City Council for approval. City Engineer Wagner said the issue in the past project was the roofing which was years after the project was completed and the Engineering firm changed hands. CM Darkenwald said he does not want the City to have similar issues with this project. Engineer Schaefer said there is a one-year warranty; hard to give answers for hypothetical situations. CM Darkenwald asked about the risk for the material costs, about $4 million. Engineer Schaefer said based on the schedule, it would be up to Rice Lake to lock in the prices with their material suppliers. Of the $4 million, about $1.6 million would on the 15 -day schedule and should be able to lock in, $2.4 million is at more risk because of the at shipping basis; getting through shop drawing review, fabrication, and on the truck. This is different than traditional pricing; contractors are frustrated with pricing when not known until loaded on a truck. If needed, changes orders would be submitted for approval. CM Darkenwald motioned to adopt Resolution 2022-46 accepting bids and awarding contract for the West Wastewater Treatment Facility Improvements Phase 1 project to Rice Lake Construction Group of Deerwood, MN in the base bid amount of $33,889,800.00 with no alternates being awarded, seconded by CM Dahl. All in favor. Motion carried 5-0. 5.3 West Wastewater Treatment Facility — AE2S Contract: A. Presentation by AE2S. B Consider Approval of Amendments 2 and 3 to the Professional Services Agreement. AE2S Engineer Schaefer presented the staff report. Engineer Schaefer said when staff originally went into the air modeling for the project, they followed the MPCA guidelines, since than they have required a refined air model. Staff is frustrated with the process and the additional cost required and possible delays for the project. Page 4 of 6 MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING MAY 9, 2022 Mayor Stockamp asked if this is normal, or has it happened to any other cities? Engineer Schaefer said this happened in Owatonna on their project. He doesn't see anything about the nature of this project that would warrant the requirement for refined air modeling; where Owatonna showed there was some amount of air pollution from their project. This project adds an emergency generator and does not need an air permit, but still need to complete the refined air modeling. The cumulative air impacts adding on the potential to emit activities from the project compared to the air modeling. The MPCA is using the process of those creating real pollution activities, because that is what they have available; either you have zero air pollution or you go to the refined air model. This project is one click more than zero. Engineer Schaefer has started the conversation with MPCA for future projects; something is broken with the process. CM Darkenwald asked if the process can change along the way? Engineer Schaefer said he does not see the process changing for this project. Based on what was already submitted, they rejected the guidance. Owatonna went to the State Legislature to plead their case for funds. Engineer Schaefer said he doesn't know what State Legislature can do to change. CM Darkenwald said the State Legislature does have funding authority over the MPCA and recommends the City draft a letter to the State Legislature letting them know the burden the MPCA is putting on the cities. CM Moores feels the City is being backed against the wall, is there any recourse? Engineer Schaefer said if feels like the MPCA has put the project under duress. The State Statue is tied to completing the EAW before moving forward with the project. The MPCA guidance to air modeling is changed often from what he understands. The City ultimately needs to prove the project is not causing a significant environmental impact. Mayor Stockamp noted this project is going to improve the quality with moving the process inside. Engineer Schaefer said with doing the refined air modeling they will clearly demonstrate what the situation is going to look like. This modeling is robust and incorporates all the data. If there were an issue at the fence line, the existing generator would be stackable; the model is not projecting the need. City Attorney Kendall has reviewed the language in the amendments. CM Dahl motioned to approve Exhibit K — Amendment 2 in the amount of $2,518,00 and Exhibit K — Amendment 3 in the amount of $68,200 to the Professional Services Agreement with AE2S, seconded by CM Moores. All in favor. Motion carried 5-0. 6. City Council Reports and Updates: Mayor Stockamp noted she was glad there was discussion on the Maciver Avenue and 80th Street turn lane. The 2021 trail project grass is not coming in. City Engineer Wagner said this would be a City project to fix, staff can discuss at the meeting tomorrow. CM Dahl asked about the census population data being updated on City entrance signage. City Engineer Wagner said the County has some hold-ups before preparing the signs. 7. Staff Reports and Updates. Human Resources/Assistant City Administrator Hille said the Street Maintenance I recruitment will close May 20th and Joey Hinzman the intern will starting at the end of May. City Clerk Etzel said Deputy Clerk Benting will be attending the May 23rd meeting in her absence. City Engineer Wagner said road restrictions were lifted last week. There are many development projects taking off. CM Darkenwald asked about the no parking signs being installed on Queens Avenue. City Page 5 of 6 MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING MAY 9, 2022 Engineer Wagner said he will check on the status of installing the signs. Mayor Stockamp said there is construction to the north of the City, causing a bottle neck on Parrish Avenue at the round abouts going north. 8. Adjournment. CM Darkenwald motioned to adjourn at 8:31 PM, seconded by CM Goede. All in favor. Motion carried 5-0. ATTEST: G;�� Audra Etzel, City Clerk Page 6 of 6