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SCC Council Memo 2023.08.14 City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441-4414 Fax (763) 441-9163 TO: Mayor and City Council FROM: Adam Flaherty, City Administrator & Finance Director DATE: August 14, 2023 SUBJECT: Special Meeting Discussion Topics The Special meeting on Monday includes multiple discussion topics. I have developed an outline below to provide some information on each topic to allow for efficient review and discussion. Kittredge Crossings Park Shelter Repair The City Council at the July 24, 2023, meeting, accepted quotes and authorized the repair of the shelter at Kittredge Crossings Park. The City Council then directed staff to bring back a financing option for the additional funding needed to complete the project. Staff will review the funding options that are available as outlined in the packet materials. Action: The City Council should provide direction on their preferred funding source and staff will prepare a resolution for transfer of funds that will be considered at a future meeting. Wright County Sheriff Contract The City contracts with Wright County for law enforcement services in the community. The current contract will expire on December 31, 2023. Wright County has proposed a contract for services in 2024 and beyond. Staff will review the proposed contract and will highlight changes from previous contracts. Action: This topic is being presented for discussion only. The City Council will consider approval of the contract at a future meeting. New Revenue Sources The City will receive funding from two new sources at the end of 2023 and in 2024. The 2024 Certified Local Government Aid formula allots $73,598 of funding to the City. This funding source was last received in 2020, and it is staff’s expectation that this funding source will not be ongoing based on the LGA formula. The 2023 Omnibus Tax Bill included $210 million in one-time public safety aid that will be distributed to cities at the end of 2023. The City was allotted $931,588 which was based on 2021 populations from the State Demographer. Staff will review options for the Council to incorporate these funding sources into the 2024 budgets and tax levy. City of Otsego│13400 90th Street NE, Otsego, MN 55330│Tel. (763) 441-4414 Fax (763) 441-9163 Action: The City Council should provide direction on their preferred assignment of the funding sources to be incorporated into the 2024 budgets and tax levy. Joint Powers Agreement (JPA) for Cannabis Licensing and Regulation Wright County has developed a proposed JPA which would permit the County to enforce and regulate cannabis in the City. This proposal would be consistent with the current regulation of tobacco products in the City by Wright County. Staff will review the proposed JPA. Action: The County is seeking feedback from the City in consenting to the County regulating cannabis in the City. The Council should provide direction to Staff on what feedback to provide. Ordinance Regulating Cannabis Use in Public Places Wright County has developed an ordinance that will regulate the use of cannabis in public places throughout Wright County. The ordinance is in the process of being reviewed by City Attorney Kendall, and Staff will review the ordinance with the Council. The Administrative Subcommittee has had informal discussions on the impacts of cannabis in the community, and had provided direction to prepare a City ordinance amendment prohibiting the smoking of cannabis in City parks, which is consistent with the current prohibition of smoking tobacco or similar products. Action: This topic is being presented for discussion only. If the Council were to have strong feelings about cannabis regulations in the City, that direction should be provided to Staff. Request for Financial Incentives The City has received a formal request for financial incentives from RLR Investments, LLC, which is the parent company of RL Carriers who has a proposed project in the City. Said project has received preliminary approvals from the City, but still needs to obtain approval of a final plat and development contract. The primary incentive requested is for property tax abatements; however, the applicant has included request for consideration of development security alternatives, infrastructure cost assistance, development fee cost assistance, and development escrow cost assistance. The City has an Economic Development Strategies and Priorities Policy. Staff will review how the request aligns with the Policy. Action: The Council should provide feedback on the request and provide direction to Staff on how to proceed with the request.