2024.10.28 Special City Council MeetingSPECIAL OTSEGO CITY COUNCIL MEETING
MONDAY, OCTOBER 28, 2024
5:30 PM
OTSEGO PRAIRIE CENTER
Call to Order:
Mayor Stockamp called the meeting to order at 5:30 PM.
Roll Call:
Mayor Jessica Stockamp and Councilmembers: Brittany Moores, Jeff Dahl, and Ryan Dunlap.
City Staff: City Administrator/Finance Director Adam Flaherty, Utility Manager Kurt
Neidermeier, City Engineer Ron Wagner, and City Clerk Audra Etzel. Absent: Councilmember
Tina Goede.
1. 2025 Budget, Tax Levy and Capital Improvement Plan Review.
City Administrator/Finance Director Flaherty outlined the Budget Meeting #7 items that were
included in the packet.
Utility Operations Overview
Utility Operation Manager Neidermeier reviewed the 2025 Utility Budget Narrative and
presented a power point as included in the packet materials.
CM Dunlap asked about the difference between the levels of water licensure and how they
correlate to the treatment improvements. Neidermeier explained the differences.
CM Dunlap asked about the current capacity for biosolids. Neidermeier said they process about
once a week at 35 tons, about 1/3 of the capacity; the building is able to handle the needs and
has room to expand. CM Dunlap asked to confirm if the processing will continue at the east
plant. Neidermeier confirmed the product from the west facility will be transported to the east
facility for processing. CM Dunlap asked about the process if overcapacity. Neidermeier
explained and said going to agricultural is the best if over the limits.
The City Council concurred as presented.
Water Utility Fund
Flaherty and Neidermeier reviewed the packet materials. The utility rate study proposes a 7%
increase to the rates. CM Dunlap asked if the 7% includes the catch-up. Flaherty said the
referenced catch-up is for WAC, not for user rates.
Mayor Stockamp asked who would be doing the modeling budgeted in the engineering line
item. Neidermeier said AE2S would provide the modeling services.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING OCTOBER 28, 2024
CM Moores asked when digging, now deep before a safety trench box is required?
Neidermeier said that most work conducted by staff is shallow, up to eight feet and that the
trench box will improve safety. The cost benefit of purchasing the trench box compared to
contracting out similar work is a benefit to the City.
Mayor Stocl<amp asked who would be monitoring the security cameras. Neidermeier said staff
is working on monitoring; staff will have access to cameras and be notified of alarms. CM
Moores asked about the notification process. Neidermeier said the on -call staff is notified and
makes the appropriate calls if needed. Neidermeier noted updating systems for the water
facilities will be the priority for 2025, with wastewater in future years.
Flaherty reviewed the Water Access Charge (WAC) revenues, noting this was acatch-up based
on the 2023 rate study; 20% increase is proposed for 2025.
CM Dunlap asked if the WAC or SAC were at the amount the City could charge. Flaherty said
the study calculated a maximum justifiable charge and that WAC warranted increases, but that
SAC was at the justifiable amount and therefore no increase for SAC in 2025.
Flaherty reviewed the CIP projects for 2025. Mayor Stocl<amp asked about the total for 2026
for the Central Water Facility — Phase 1. Flaherty said the amount should be $9,750,000; the
project total is correct, and that formatting will be corrected for future documents.
The City Council concurred as presented.
Sanitary Sewer Utility Fund
City Administrator/Finance Director Flaherty reviewed the packet materials. The utility rate
study proposes a 2% increase to the rates, based on the 10-year rate study. Fund also includes
the addition of Utility Operator to staff and then the change in chemicals for a full year.
Flaherty noted an increase for additional staffing. Neidermeier reviewed the increase for
biosolid costs with maxing out the farmer using the product causing the product to go to the
landfill; staff is looking into other farms to take finished project. Flaherty said the cost could be
used to pay a farmer verses cost for dumping fees at a landfill.
Flaherty reviewed the Sewer Access Charge (WAC) revenues and the CIP projected projects for
2025.
The City Council concurred as presented.
Storm Water Utility Fund
Flaherty reviewed the packet materials. Flaherty noted that storm water rates previously have
not increased since 2018 and in 2024 staff was directed to include a 2% rate increase. This year
staff is looking for direction on the 2025 rate increase. After discussion the City Council agreed
that additional analysis should be provided at a future Public Works Subcommittee meeting.
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MINUTES OF THE CITY OF OTSEGO SPECIAL CITY COUNCIL MEETING OCTOBER 28, 2024
The City Council concurred as presented.
Utility Rates
Flaherty reviewed the packet materials noting that the rate increases were discussed with each
respective fund earlier in the meeting.
Next Meetings
The Truth -in -Taxation meeting is scheduled for November 28, 2024, at 6:00pm.
2. Adjourn.
CM Dahl motioned to adjourn at 6:52 PM, seconded by CM Moores. All in favor. Motion
carried 4-0.
Minutes prepared by City Clerk, Audra Etzel.
City of Otsego:
ATTEST:
Audra Etzel, City
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