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09-22-04 WSITEM 3.2 CITY OF OTSEGO-CITY OF ST. MICHAEL JOINT COUNCIL WORKSHOP September 22, 2004 R9.11_-Ca11: Otsego City Council: Mayor Larry Fournier, Councilmembers Jerry Struthers, Dan Scharber, Virginia Wendel, and Vern Heidner. City Staff: City Administrator Michael Robertson. St. Michael City Council: Mayor Wayne Kessler, Councilmembers Tom Hagerty, Drew Scherber, Cindy Weston, and Joe Hagerty. City Staff: City Administrator Bob Derus, Community Development Director Mark Weigle, City Engineer Steve Bot. The workshop was called to order at 7:00 p.m. HIGHWAY 101 IMPROVEMENT LOCAL FINANCING St. Michael noted their local share of the Highway 101 Improvement was estimated at $300,000. They don't want to stop the improvement but every spare dollar they can raise is going into the Highway 241 improvement and Highway 101 is a low priority for them. Otsego stated that preliminary indications were that they had more than enough right-of-way dedicated to make up their local share and if it were allowed they would be happy to use any extra right-of-way to pick up St. Michael's share. NABER INTERCHANGE FINANCING St. Michael indicated the proposed Naber Avenue Interchange is estimated to cost up to $15 million dollars. The State would not be paying any part of the cost. They feel this interchange will provide some benefit to Otsego and would be happy with any assistance they could receive. There was considerable discussion of financing options such as assessing benefited properties, bonding, MSA funds, ISTEA funds, and begging the State and Feds for money. St. Michael thought it would be somewhere between 5-10 years before the interchange could be built. Otsego agreed to work with St. Michael on planning issues related to the interchange, and to look at potential cost sharing arrangements. LAND USE PLANS IN THE NABER INTERCHANGE AREA Both cities reviewed their future land use plans for the Naber Interchange area. FUTURE SEWER SERVICE AT HIGHWAY 101 & COUNTY ROAD 36 Otsego indicated it was willing to provide sewer to St. Michael for the west side of the Highway 101 and County Road 36 intersection. There was considerable discussion of how St. Michael would pay for the sewer. Otsego will have its City Engineer estimate costs and St. Michael will provide an estimate of amount of capacity needed. RESIDENTIAL DEVELOPMENT IN THE ST. MICHAEL-ALBERTVILLE SCHOOL DISTRICT Both cities updated each other on projected residential growth. Otsego indicated that none of the initial growth on the west side of Otsego would be in the St. Michael - Albertville School District. St. Michael said they were working very closely with the St. Michael -Albertville School District to plan for the growth that was occurring. Both cities agreed that the meeting was very useful and that they should meet at least once a year in the future. With no other business, the meeting was adjourned at 8:25 p.m. Aiel i:Rertson City Administrator