10-10-22 Special City Council Meeting MinutesSPECIAL OTSEGO CITY COUNCIL MEETING
MONDAY, OCTOBER 10, 2022
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: Brittany Moores, JefF Dahl, Tina Goede,
and Tom Darkenwald arrived at 5:32 PM. Present City Staff: City Administrator/Finance
Director Adam Flaherty, Human Resources/Assistant City Administrator Sabrina Hille, Streets
Operations Manager Kevin Lamson, Parks and Recreation Director Nick Jacobs; City Engineer
Ron Wagner; City Planner Daniel Licht; and City Clerk Audra Etzel. City Attorney Dave Kendall
arrived at 6:22 PM.
1. 2023 Budget, Tax Levy and Capital Improvement Plan Review.
City Administrator/Finance Director Flaherty reviewed the Budget Meeting #8 items included in
the packet.
Fleet Vehicles and Equipment CIP
The recommended fleet and equipment purchases for 2023 were reviewed in detail as included
in the packet materials. When 2023 vehicle purchases become available, staff has requested to
start the ordering process in 2022. The lead time is about 30 weeks and the vehicle will be paid
for in 2023. All vehicle purchases will be brought back for final City Council consideration and
approval. The City Council asked if the trucks will have two or four doors, staff noted it
depended on the proposed use of the vehicle. The current sweeper rental is about $7,500 plus
wear and tear on parts and servicing, closer to $9,000 per month. Staff noted the street
sweeper is used 5-6 weeks in the spring and daily in the summer. The zero -turn mower has a
72" cut and requires staff to make two passes on the trails. The 14on utility body truck price
estimate includes the utility body for the truck. CM Darkenwald noted these purchases were
reviewed at Public Works Subcommittee along with the early purchase requests to meet the
short purchasing window on the state bids. There was discussion on the warranty, extended
warranty and servicing.
City Administrator/Finance Director Flaherty reviewed the schedule of future year fleet and
equipment replacements and additions, noting that beyond 2023 is an educated estimate and
all recommendations are subject to change based on multiple factors. The 10-year schedule
provides a preview and is valuable in evaluating funding levels. There was discussion on the
status of Fund 206, City Administrator/Finance Director Flaherty noting that there is a more
comprehensive review of funding levels for future years in the Capital Improvement Plan.
The City Council concurred as presented.
Pavement Management CIP
City Administrator/Finance Director Flaherty stated there are four funding sources for Fund 201,
including: Property Tax Levy, State Aid (fuel taxes, Special Assessments (benefiting property
owners) and Franchise Fees, Operations Manager Lamson and City Engineer Wagner reviewed
the summary of future year maintenance project budgets. Maps of the proposed work in 2023
were reviewed in detail.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING OCTOBER 10, 2022
The 2023-2032 CIP Overall Capital Improvement Project Plan were reviewed. The streets with
the lowest PCI are set to be improved first; these are assessed according to the assessment
policy. The projects involving assessments are set every two years to attract a contractor to bid
on a bigger project and save on the notice requirements. The MSA streets and collector streets
are included in the CIP fund. Mayor Stockamp said she has spoken with surrounding cities and
they also use franchise fees for capital improvements. CM Darkenwald asked how much a
typical resident is saving with the new assessment policy vs. the old policy of 50%? City
Administrator/Finance Director said it will vary on the project scope and the total cost, so it
varies but it is over $1,000 in savings for residents who would be assessed.. The PCI rating
map, the 10-year CIP overall capital improvement project plan, and the pavement management
fund for the next 10-years were discussed.
The next steps for the 2023 projects would be a request for a feasibility study. City Engineer
Wagner will bring the request to a future City Council meeting.
The City Council concurred as presented.
The 2022 to 2023 budget increase is 8.68%.
2. Closed Session — Consider Offer for the Purchase of Real Property (MN
Statute 13D.05, Subd. 3, (C-3)0
Mayor Stockamp stated this meeting will be closed in accordance with Minnesota Statute
13D.05, Subd. 3, (&3) to consider an offer for the purchase of property at PID #118-800-
253300.
CM Darkenwald motioned to close the meeting at 6:29 PM to enter a closed session
to discuss PID 4118-800-253300 in accordance with Minnesota Statute 13D.05,
Subd. 3, (C-3) to consider an offer for purchase of property, seconded by CM Goede.
All in favor. Motion carried 5-0.
CM Darkenwald motioned to open the closed session at 6:30 PM, seconded by CM
Goede. All in favor. Motion carried 5-0.
CM Darkenwald motioned to close the closed session at 6:46 PM, seconded by CM
Goede. All in favor. Motion carried 5-0.
CM Darkenwald motioned to reopen the special meeting at 6:47 Pk1, seconded by
Goede. All in favor. Motion carried 5-0.
City Administrator/Finance Director Flaherty noted the next Special Meeting is scheduled for
October 24, 2022 5:30pm. Staff is requesting to cancel this meeting.
CM Darkenwald motioned to cancel the October 24, 2022 Special Meeting, seconded
by Moores. All in favor. Motion carried 5-0.
CM Darkenwald requested to get bond ratings for surrounding cities for the special meeting
tomorrow. City Administrator/Finance Director noted Elk River is AA+ rating. Staff will get
other surrounding cities ratings.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING OCTOBER 10, 2022
3. Adjourn.
CM Darkenwald motioned to adjourn at 6:50 PM, seconded by CM Goede. All in
favor. Motion carried 5-0.
ATTEST: p �'
Audra Etzel, City Clerk
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