10-25-05 WSCITY OF OTSEGO
CITY COUNCIL WORKSHOP
October 25, 2005
Roll Call: Otsego City Council: Mayor Larry Fournier,
Councilmembers Mark Thorsted, Jessica Stockamp, and Vern
Heidner.
Absent: Councilmember Scharber.
City Staff: City Administrator Michael Robertson, City Clerk
Judy Hudson and City Accountant Gary Groen.
Mayor Fournier called the workshop to order at 4:00 p.m.
Review of People Service, Inc. Contract - Council reviewed
the proposed People Service contract for operation of the
sewer and water systems. Paul Christenson and Kurt
Niedermeyer were present from People Service. Paul noted
that volume had grown over 500% in the sewer system and over
400% in the water system since the first contract. Council
discussed how the numbers were generated. Paul noted that
the contract did not have an hourly charge, the charge was to
get the job done regardless of the amount of hours it took to
do so. Council discussed having a contract length of two
years rather than five years. Council directed staff to
place this item on the November 14"' meeting agenda.
Review of Water & Sewer Rates - Mike Robertson and Gary Groen
reviewed the water and sewer rates and the fund balances.
They noted both funds were making money before depreciation
but not once depreciation was included. Council agreed that
the costs of hauling sewage from the West sewer plant to the
East sewer plant before the West plant started up were
capital costs which should be included in the Debt Service
fund. Council directed staff to provide a variety of options
to increase rates to generate another $30-40,000 a year. A
workshop to review these options was set for Wednesday,
November 2nd at 5:30 p.m.
Review of Fire Assessments - Judy Hudson and Gary Groen
reviewed the balances in each fund and the proposed
assessments. Staff was directed to see if commercial and
industrial properties could be assessed for higher amounts
than currently. Council directed staff to place this item on
the November 14" meeting agenda.
With no other business, Mayor Fournier adjourned the meeting
at 6:45 p.m.
Michael obertson