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06-06-96 WSCITY OF OTSEGO WRIGHT COUNTY, MINNESOTA CITY COUNCIL WORKSHOP 6:30 PM OTSEGO CITY HALL JUNE 6, 1996 1 Larry Fournier. Vice Mayor will call the meeting to order in Mayor Freske's absence. Larry Fournier, Vice Mayor, called the Workshop Meeting to order at 6:37 PM. Rol all: Councilmembers: Vern Heidner, Ron Black, Larry Fournier, Suzanne Ackerman Absent: Mayor Norman F. Freske, Staff. Bob Kirmis, Assistant City Planner; Larry Koshak, City Engineer; Andrew MacArthur, City Attorney; Elaine Beatty, City Clerk/Zoning Administrator; Judy Hudson, Deputy Clerk. 2. Presentation by John Domke/Rick O'Gara, SKB. (Since Mr. O'Gara and John Domke arrived late, this Item was taken after Item 3.) Rick O'Gara, President of SKB. Mr. O'Gara gave a brief presentation on the type of landfill they run and maintain, a demolition landfill. They currently own and operate one in Inver Grove Heights. They are very interested in locating one in Otsego. Mr. O'Gara went over the benefits to the City i.e. financial gains host fees, residents receiving inexpensive or free disposal of wastes. In 1995, Inver Grove Heights Landfill took in over 750,000 cubic yards of waste. SKB is looking at around 300,000 cubic yards of waste disposal for Otsego in the first year. They would like to have a landfill in Otsego in an isolated corner of the City and said it will not hurt the environment. VM Fournier asked what dollar amount could the City expect to gain and how they will monitor what goes into a landfill. Mr. O'Gara said there are many ways to set up a host fee - guaranteed fixed amount plus so much per yard or just per yard. He thought the minimum would be $300,000.00 the first year. Every person working is a certified landfiller trained by the MPGA. All loads go through a checker, several people are checking it all along the different steps. The biggest safeguard is the liner that is put in. The lechee meets drinking water standards, it is just brown and dirty, it has iron but will not pollute. CM Ackerman asked how big of an area they are looking at. Mr. O'Gara said approximately 100 to 200 acres. Mr. Domke said they go beyond for berming and covering material. What is above the ground they try to blend in with the terrain. Trees aren't allowed on top of it but can put plants with shorter root systems. They pointed out there are many end uses for this i.e. parks, golf courses. Elaine Beatty inquired about the hill, asking if when one part is used is it covered up. Mr. O'Gara replied yes and the one in Inver Grove Heights has four phrases to it. He pointed out the negative sign to the landfill is that there is blowing paper but they have people picking up each day until it is done. City Council Workshop of June 6, 1996, cont'd. Page 2. CM Heidner asked how far below the grade do they dig down. Mr. O'Gara said it depends on the water table and grade. They have talked to a few residents and it sounds like their water tables are 70 to 80 feet down. They can go down to 5 feet above the water table. They thought maybe they would go down 50 feet and 30 feet up. CM Heidner asked about the rate of compaction and how many years of operation. Mr. O'Gara said it is compressed about one-half and they are looking at between 3 and 6 million yards. The Inver Grove Heights is for 6 million cubic yards, opened in Oct. 1989 and they are two-thirds full now. CM Black asked about what sort of dust and noise is associated and where is Otsego are they looking. Mr. O'Gara said by law they have to maintain dust, they put in all-weather roads, have a water truck, a lot of blacktop and use crushed asphalt instead of gravel for out in the site. Regarding the noise, there is on site equipment, and trucks going in and out. They rarely operate beyond 4:30 PM. They are looking in the Southwest area of the City. Larry Koshak talked about enforcement and asked if the City would be involved in this. Mr. O'Gara said enforcement is usually done by the County than the MCPA. Elaine asked how many employees. Mr. O'Gara replied four are on site at all times. John Domke said they want to be good neighbors and they get along well with Inver Grove Heights. This City has a Clean Up Day and SKB takes in their junk. They have also started scholarship funds, etc. VM Fournier asked what assurances would Otsego have that SKB completes the project to the finish. Mr. O'Gara was not positive if Wright County has the ability to acquire the financial issues. If they don't, the City could and he further discussed this. CM Black asked how the landfill is classified under a tax structure. Mr. O'Gara replied - heavy industrial. Mr. O'Gara and Mr. Domke offered tours for anyone. There was more discussion on the end use. SKB said houses can't be built on it but mentioned the golf course and park. There isn't much settlement of soils with this type of land fill as with sanitary landfills. It could also be used for agricultural. Mr. Koshak noted SKB did a good job on the Bodendrier land. Mr. O'Gara and Mr. Domke said they are looking at sites in Hennepin and Sherburne Counties but they like the Otsego area with the 94 access. They would like some type of commitment from the City. CM Black said he personally wouldn't like to take this on now because of all the other issues the City is dealing with at this point. VM Fournier said he is not prepared to indicate anything as this point but asked for 45 days to think over. The Council asked the City Clerk to put this on the June 17, 1996 City Council Agenda. City Council Workshop of June 6, 1996, cont'd. Page 3. 4. Review the Otsego Creek Project. Larry Koshak, City Engineer, went over the total estimated project cost of the Otsego Creek Project for $69,562.50. He also went through the ten and five year levy amounts. Mr. Koshak presented the possible options for the levy as directed by the City Council. 1. Not levy Engineering Cost associated wit the Otsego Creek Authority; $14,442.00; reducing the project by 17%. 2. Not levy for 1 and remove the $6,000 for obstruction removal; reducing project cost by 24.3%. 3. City could finance the replacement of 83rd Street Culvert pipe under Public Work Budget. Reasoning for this replacement is that this culvert is under a City street and is part of the City Street System. Otsego Creek Authority bylaws state that all road culverts are individual City responsibility. It is difficult to rationalize this option when the culvert size and location do also serve the watershed. Included in this option is not to levy items 1 and 2 above; reducing project cost by 54%. 4. Abandon the proposed levy and institute a utility fee for the district landowners to pay for the repairs. Replacement of the culverts would be an improvement project and would not be Operating and Maintenance funding which is the primary use for utility fees. Mr. Koshak said if the City is interested in reducing the cost of the levy, he would recommend Option 2. If the Council decision is no levy, then the culverts should be placed in the 5 Year Capital Improvement Budget. VM Fournier asked the City Engineer when he says no levy would then this be paid out of the General Fund. Mr. Koshak said he is basically saying to abandon the project. The culverts would have to be placed in the budget for the future. Mr. Koshak stated all costs put in the project are legitimate costs. A Resident questioned if there was a problem with the culvert as it appears to be working. Mr. Koshak pointed out that this year, there is no problem, but with spring flows like last year, then it is being undermined around the perimeter of the culvert and the road starts to sink. The culvert will need to be sized to take care of the flow in the Spring and try to eliminate the future damage. Floyd Goenner questioned if the DNR would allow the bigger culvert. Mr. Koshak replied the DNR approved the plans and they approved the flow capacity. Mr. Alvin Beaudry said if the culvert wasn't place right, the City should be responsible. Mark Berning said the engineer working with that placement should be responsible. Mr. Koshak said the Township did it with no involvement of an Engineer. City Council Workshop of June 6, 1996, cont'd. Page 4. Stormwater Drainage Utility Fees. Mr. Koshak reviewed that he and the Finance Director, Phyllis Cokley, met some time ago to formulate rationales for a proposed fee and recommend a fee amount. Phyllis Cokley, Business/Finance Director went over different billing procedures. She pointed out this not unusual kind of service and that many communities do this. Mr. Koshak pointed out the fee amount could be different between rural and urban areas Storm Sewer Districts. CM Black asked if this was done by district, would that be accountable for each districts. Ms. Cokley replied yes there would be a fund for each district. Mr. MacArthur said the districts were formed for differentiating the projects. There was Council discussion on using separate funds for separate districts. Some feeling that some districts require higher maintenance and they should have to pay. Mr. MacArthur said they are trying to get away from the assessments and maintenance should be City wide in his opinion since it is a overall benefit to the City. Because it is based on impervious surface area and this applies city wide. District are more for projects or for trunk fees that go into developers agreements. A Andy MacArthur - Discussion of Impact Fees Mr. MacArthur's understanding was that the Resolution he drafted, be changed to reflect that there would be no deferment and this is what the minutes stated. CM Black said on the developments just approved he doesn't have a problem deferring but anything in the future - no deferment. CM Heidner and VM Fournier agreed. 6_ Adjourn_ CM Black motioned to adjourn. CM Ackerman seconded. All in favor. Motion carried. Wor p a t� l at 8:57 PM. lWre *a• 'I.A. Mayor Norman F. Freske Atte t: Elaine Beatty, City Clerk/Zoni� g Adm. Recorded by: Judy Hudson, Deputy Clerk City Seal