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.
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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
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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
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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.
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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
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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
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