03-09-98 CCCITY OF OTSEGO
WRIGHT COUNTY, MINNESOTA
CITY COUNCIL MEETING
6:30 PM
COUNCIL CHAMBERS
OTSEGO CITY HALL
MARCH 9, 1998
1. Mayor Larry Fournier will call meeting to order:
Mayor Fournier called the meeting to order at 6:30 PM
a_ Pledge of Allegiance
Mayor Fournier led in the Pledge of Allegiance
h. Roll Call:
Mayor Larry Fournier; Councilmembers: Mark Berning, Vern Heidner, Virginia Wendel,
Suzanne Ackerman.
Staff: Mike Robertson, City Administrator; Elaine Beatty, City Clerk/Zoning
Administrator; Judy Hudson, Deputy Clerk; Andrew MacArthur, City Attorney; John
Harwood, City Engineer;
Mayor Fournier requested the following:
Add under Item 7.4. NAC Letter on Moratorium Exemption
Remove Item 9.4. and place under Item 7.5.b.
Add under Item 9.3. Sub -grant agreement for FEMA
CM Heidner motioned adoption of the March 9, 1998 City Council Agenda as
amended. Seconded by CM Ackerman. All in favor. Motion carried.
a. City Council Workshop of February 19, 1998_
CM Berning motioned adoption of February 19, 1998 City Council Workshop
Minutes. Seconded by CM Heidner. All in favor. Motion carried.
b. Regular Council Meeting of February 23, 1998_
Mayor Fournier motioned adoption of the February 23, 1998 City Council Meeting
Minutes. Seconded by CM Berning All in favor. Motion carried.
4. Open Forum:
4.1. Special presentation&
A- Leo Offerman, Key Account Executive, Wright -Hennepin
Electric Discussion of Wright -Hennepin Electric items.
The primary reason Leo Offerman attended the meeting was to explain the possible
electric deregulation. This possible deregulation will give consumers a choice of a power
suppliers. This will may happen by year 2000 or 2001. Mr. Offerman stated that Wright
Hennepin supports deregulation. But, he said consumers should use caution. He briefly
explained how deregulation might work.
SEWER COMMITTEE MEETING THURSDAY, FEB. 26,1998
DAYTON SENIOR CENTER 6:00 P.M.
PAGE 2
MPCA LETTER
Mayor Forseth opened up the discussion regarding the letter. Mike Robertson stated that
he had talked to Ted Fields of Bonestroo & Assoc., and David Sahli of the MPCA about this
letter. (This letter is attached to the end of the minutes). Mike Robertson then went through
every point in the letter as it was explained to him and understood by him.
Item Number:
1. Otsego will probably not be seeking a loan for this project. The loans would be more geared
towards the cities that are servicing existing developments. Otesgo will be primarily serving new
developments. However, Dayton will be primarily servicing an existing development. This would
mean that Dayton would be more likely to be placed higher on the priority list for the loans that
are available for sanitary sewer projects. Dayton should apply separately according to Otsego.
Anne Ziebell asked if Dayton's chances of receiving a loan will decrease because Otsego will not
be applying for the same loan being that this is a joint project between the two cities. Mike
Robertson answered that it was his understanding that it would not decrease Dayton's chances at
all. The loan would take into consideration new development vs. existing development. Dayton
will be servicing existing development, therefore Dayton has a better chance of receiving a loan
than Otsego. Mayor Forseth asked what the percentage rate on a loan like this one would be to
the residents. Mike Robertson said that it would be between '/z to 3/4 of a percent.
Councilmember Heidner stated that it would not be worth it for Otsego to apply for this loan
because of the way they would fall in the ranking classification. Councilmember Hartman stated
that if Dayton was awarded this loan, Dayton could then bond for other projects. Mayor Fournier
added that there is a 18 month interest free period on this loan.
2. & 3. These items do not really apply to Otsego anymore because they relate to the state loan
program. Mark Hanson stated that Dan Hartman of Springsted. Inc., is putting together the
financial numbers for Dayton on a worst case scenario basis.
4. It was stated that Otsego would not allow future developments to build their own package
plants to service their developments without approval of their site plans. All future development
is to be serviced by the municipal plant where applicable.
5. Otsego is in the process of updating their Comprehensive Plan. During this process, they will
be looking at the issues that are presented as a result of this sewer plant.
6. It is to be performed under a contract agreement, or a user agreement.
7. Revolving Loan Fund.
SEWER COMMITTEE MEETING THURSDAY, FEB. 26,1998
DAYTON SENIOR CENTER 6:00 P.M.
PAGE 3
8.& 9. Mike said that Ted Fields has already addressed the issues under 8 & 9. Mark Hanson
stated that he did discuss this letter with Ted Fields. Apparently a worksheet was never sent out.
Mark added that under #9, Yes the plant will be required to have those features. The costs for
these features are in the plans. Redundancy will continue in the 2nd phase.
10. This item is related to the loan program. It will apply in Dayton's favor because of the
environmental need. Otsego will be servicing only a small portion that would be classified as
environmental need. Mayor Forseth added that this need basis would be similar to the need basis
that was used to bring sanitary sewer to Diamond Lake in Dayton. Mark Hanson stated that it
would be an identical process to Diamond Lake. Mayor Fournier asked Mike Robertson if he
could provide some kind of documentation of his conversation with the MPCA. Mike replied that
he has already put it in writing and that a copy has been mailed to Dayton.
11. The MPCA is asking for sludge application sites.
Mayor Forseth asked if there were any other questions or comments regarding the letter
from the MPCA. Mark Hanson stated that it would be good to send a response from both cities
to the MPCA stating that they received the letter and it is being discussed.
SLABTOWN.•
Mayor Forseth began by saying that there has been a lot of recent discussion about
including Slabtown (Wright County portion of Dayton) in the sewer project. There has been a
signed petition from all of the residents in Slabtown, except one, who want sewer extended to
their neighborhood. Mayor Forseth asked if any of the Otsego residents near Slabtown would be
interested in being included in the sewer project. Otsego did not plan on servicing their residents
near and around the plant because there seemed to be no interest. Mayor Forseth stated that
Dayton would be having meetings in the near future with the Slabtown residents. Mayor Fournier
stated that providing sewer to Slabtown should probably not be a problem.
Mayor Forseth asked if a gravity feed line could be used to service Slabtown.
Councilmember Hartman asked if there were any maps to serve as visual aids for this meeting. At
this time, Mark Hanson took out a map that showed the Old Village, Slabtown, and the portion of
Otsego where the sewer plant will be built. Mark showed the map of the basic sewer plan for this
project. There were three options on this map in which Slabtown could be serviced. First was
the option to have a gravity line with one grinder pump. The second option was to have a lift
station built to serve Slabtown. The third option was to create a siphon under the Crow River
with a force main, then pump back to the plant.
Mike Robertson informed Dayton that Otsego has changed their plans regarding the way
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6:00 P.M.
that they want to have the main pipe enter the plant. They want to use an 8 inch force main
coming down along 165th Street. Mark Hanson said that Dayton may need to build two lift
stations which would pump to the same force main. He then added that Dayton may want to look
at building a telemeter system to monitor these lift stations. The lift stations could be monitored
by either the public works department or the police department.
Mark Hanson stated that some easements in Otsego for Dayton's sewer will be acquired
by Otsego. Mayor Forseth asked if the main sewer lines could follow the road. Mark Hanson
said that the plan would be to follow the road, then tie in with Otsego's line. The benefit of this
option would have to be evaluated compared to other options which may benefit other parts of
Dayton to be serviced in the future. Councilmember Heidner asked how far out is development to
the south of the Old Village. Mark Hanson said that it could be up to 10 years before
development occurred. Mayor Forseth stated that there will be a development sketch plan
presented to the Dayton Planning Commission in April regarding development south of the Old
Village. Mike Robertson said that all of their easements will be acquired by the 90 day quick tag
method. Councilmember Hartman asked what easements were being referred to in earlier
discussion. Mike Robertson said that all easements were being referred to. About 160 properties
will be affected. The Otsego City Council is willing to negotiate with all land owners that are
involved.
Mark Hanson asked if the force main in Otsego would be built in 1999. Mike Robertson
answered by saying that it would be up to the engineers on the timing. Mayor Fournier responded
that he hopes the plant is equipped and running by August of 1999. Mayor Forseth stated that it
may be the best long-term solution to provide gravity feed from the plant if development occurs.
Mark Hanson agreed with Mayor Forseth's comment, coming from the east may be the most
efficient. Mayor Fournier asked if Slabtown was to be served, would the Otsego residents have
the choice whether or not to hook up to the sewer. Mayor Forseth relied yes, that decision would
be left up to the Otsego City Council.
Councilmember Hartman asked what the pink line on the map represented. Mark Hanson
said that it was a crossing of the Crow River for future development. Mayor Forseth stated that it
would not be fair if the residents of the old Village would have to pay for future development.
The city should not subsidize future developers. Councilmember Hartman then said that Dayton
should get the best deal possible and build the best possible system at this time. Mayor Forseth
said that he didn't think that the residents of the Old Village should have to pay for the southern
development. He also noted that they have a difference in opinion. Councilmember Ziebell said
that costs would explode if the plant is built to service the future development. Councilmember
Heidner added that the additional expense would be forced onto the Otsego residents and that he
would object to this. Councilmember Hartman said that a second gravity line should be placed on
the plans. Councilmember Heidner said that Otsego would not do this because Otsego has no
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plans of developing near the site of the plant. Mayor Fournier added that the idea would cost too
much and that option had been looked at. Otsego then looked at the second alternative, this is the
one that they have been discussing. Mayor Forseth said that the current residents would be forced
to pay the expense of future development and that Otsego does not want that. Councilmember
Hartman asked why Otsego does not participate in the gravity line. Mayor Forseth stated that the
Otsego City Council does not want to be involved with that right now.
USER AGREEMENT:
Mayor Forseth opened the discussion on the user agreement issue. Councilmember
Heidner said that the mayors of both cities, administrators of both cities, and attorneys from both
cites should develop a user agreement. Councilmember Ziebell agreed with that statement. All
others were also in agreement. Councilmember Ziebell asked about future easements, and where
they get put into the user agreement. Councilmember Heidner said that Dayton would have to
pay for the easements at the time of future development. Otsego could get whatever easements
Dayton needed in the future but Dayton would have to pay for them. There could be some
restrictions, such as timing between the cities.
OTHER:
Mike Robertson said that Dayton's hook-up charges seem low. He wanted to make sure
that Dayton was figuring the numbers correctly. Dayton is aware of all the costs, water will not
be included in this price. Mayor Forseth said that there will be a $2,300 charge for plant
connection and a $7,500 charge for other assessments including trunk/lateral sanitary sewer and
street costs. Councilmember Heidner broke down the costs in Otsego; $2,766 sewer fee, $2,858
water fee, and $2,105 sewer main trunk charge. The developer would the be responsible for the
cost of hooking up and running the lines from the sewer stub.
Mayor Forseth stated that the numbers are not favorable in Dayton to provide water. The
costs could potentially double. Councilmember Heidner stated that the costs in Otsego are low,
because the pipes will be in the ground before the roads are built. Road improvements are not
included in their costs, unlike the case in Dayton. Mayor Fournier thought that it would be a
good idea for the two city administrators to set up a date for the user agreement committee to
meet. Mike Robertson said that Otsego will bill Dayton for sanitary service, then Dayton could
bill their residents. Mark Hanson asked how big the water tanks were going to be. Mike
Robertson said that the first tower would be 400,000 gallons, when a second tower is built, it
could potentially be 500,000 gallons.
PUBLIC COMMENTS:
Mayor Forseth opened the meeting for public comments. The first question was; If
Slabtown is to be served, would the costs in the Old Village go up? Mark Hanson stated that the
numbers may need to be re-examined. The next question was; Why is Slabtown even being
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considered in this project? Mayor Forseth replied that it is a part of Dayton that is interested in
being serviced and is part of the city's jurisdiction. The next question was; We thought that this
sewer project was to be a done deal, why is development south of the Old Village being talked
about? Mayor Forseth stated that development would probably only occur during the next phases
of the plant expansion. Councilmember Hartman asked when development will be planned?
Mayor Forseth stated during the next expansion. Councilmember Hartman stated that
development should be planned for now and possibly even implemented during this first phase.
Councilmember Heidner added that Dayton will not be able to obtain anymore capacity during
phase one. He also added that some of the Otsego City Council did not think that Dayton should
not even get that much capacity because of the length of time that Dayton has taken to made a
decision about sewer.
Councilmember Heidner asked what size lots are in Slabtown. Mark Hanson said that the
lots are shaped just like the ones in the Old Village. Most of them are 40'x 100', some people
own 2 or 3 lots, some even own a whole block. He also said that it would be hard to find a
buildable lot without having sanitary sewer available.
Another question was asked. Are the numbers for the Old village still on a worst case
scenario basis? Mark Hanson said that it is still a fair number. It would include sewer and street
patching. Another question was asked. When would this project begin? Mark Hanson said that
the residents of the Old Village and Slabtown would need to have another meeting or two to go
over the project plans. After that, a feasibility study would be requested within 2-3 months.
Building could begin in May of 1999 and the sewer plant could be operational by August 1999.
Mayor Fournier asked how soon would Dayton need to know the intentions of the Otsego
residents near Slabtown. Mike Robertson said that Otsego would need to have a meeting with all
residents that would be affected. The plant plans would then need to reviewed and possibly
modified, but a decision to include Slabtown must first be made. Mayor Forseth said that Dayton
will need to facilitate a meeting with the residents of Slabtown. Mike Robertson suggested that
the Otsego representatives and residents could also attend that meeting.
Councilmember Hartman asked if the costs for the right -of- way have been factored into
the cost of the project for Dayton. Mark Hanson said that they have not. Each resident could
expect to pay another $50.00 to cover those costs. Councilmember Hartman asked why Otsego
is not willing to move the plant closer to Wright County Road 36. Councilmember Heidner stated
that that location would not help serve the needs of the Otsego residents. Otsego would prefer to
move the plant closer to State Highway 101 but they are helping Dayton's needs.
Mayor Forseth asked if there were anymore questions or comments. Seeing none, Mayor
Forseth closed the meeting. The meeting was then adjourned.