09-10-97 WSCITY OF OTSEGO
WRIGHT COUNTY, MINNESOTA
CITY COUNCIL WORKSHOP
SEWERIWATER PROJECT
6:30 PM
OTSEGO CITY HALL
SEPTEMBER 10, 1997
1. Call to order/ Roll Call
Mayor Fournier called the meeting to order at 6:30 PM.
Roll Call: Mayor Larry Fournier; Councilmembers: Mark Berning, Virginia Wendel,
Vern Heidner, Suzanne Ackerman.
Staff: David Licht, Bob Kirmis, Planners; Andrew MacArthur, Attorney; Kevin Kielb,
John Harwood, Engineers; Ted Field, Tom Roushar, Bonestroo; Elaine Beatty, City
Clerk/Zoning Administrator; Judy Hudson, Deputy Clerk.
Mr. MacArthur referred to his memo he provided at the September 8, 1997 City Council
Meeting regarding choice of Entity for Sewer Treatment Plant. He talked to George Hoff,
Attorney for Dayton. Mr. Hoff informed him that Dayton went over this issue at their
meeting held last night. He stated their preference is a fifty-fifty ownership. The Dayton
Council also would prefer the two attorneys get together and put together a outline
of a Joint Powers Agreement and present to both councils. The attorneys plan on getting
together Friday (9-12-97) 10:30 AM. Dayton indicted their fifty-fifty would be in the
investment and the liability. Dayton wants an equal share in any decision making process.
It was also Mr. MacArthur's understanding that Otsego's capacity would not change.
The council discussed this and they all agreed there needs to be a lot of clarification and
supported Mr. MacArthur and Mr. Hoff s meeting.
Mayor Fournier reported the landowner who had previously been considering to sell the
city land for the plant has now changed his mind.
B. Darkenwald Pro}terty Policy (B. Kirmis)
Mr. Kirmis asked the Council to review II. I under Sanitary Sewer Planning: Policies
Memo of September 8, 1997. Is this acceptable to the council and is it specific enough.
After Council and staff discussion it was decided that Kevin Kielb and David Licht would
revise the wording under this section. The following is the revision:
Expansion of the service area or treatment plant capacity of the Darkenwald package
treatment plant shall be subject to City approval. No City services (sanitary sewer and
Water) shall be extended to properties presently under the ownership of the Darkenwald
family until the potential service capacity and area of the private package treatment plant is
defined.
City Council Workshop of September 10, 1997, cont'd. Page 2.
3. New and/or undated information
A. Process Outlines
a_ Trunk (John Harwood)
Mr. Harwood went over the attached draft outlining the proposed schedule for Sewer and
Water Facilities.
b. Treatment Plant ( onestroo�
Ted Field went over overheads on the following:
Schematic of process with cost estimates (showing minor alterations)
Site Plan (showing a 6.7 acre parcel)
Breakdown of capital costs of $3,200,000
Breakdown of Operation and Maintenance costs of $110,000 when receiving the
full 300,000 gpd, therefore, less cost at start up.
CM Berning asked if the O&M costs are labor/usage related and if sludge costs include
disposal.
Mr. Field responded that the same number of units are on line no matter what the usage is.
These figures presented do include sludge disposal.
After further discussion on labor needs, Mr. Field will do an update for Monday's meeting
on what the O&M will be for start up.
There was further discussion on construction deadlines.
B. Area Building Permit Activity Bob Kirmis)
Mr. Kirmis went over the attached chart showing single family residential building permit
summary of surrounding communities.
Mayor Fournier asked if there was any specific reason why Otsego's building has gone
down. Mr. Kirmis noted the lack of large parcels of land in the Immediate Service Area.
Mayor Fournier also questioned what would happen if the City did not get the 80 RECS a
year that have been projected.
Mr. Kielb stated he discussed this with Gary Groen and together they prepared the
attached September 10, 1998 letter of a general overview of the financial burden the City
tax -payers could face if this issue occurred.
CM Berning stated concern if the levy freeze is extended. Mr. Kielb explained that applies
to the City's operating expenses and not to the debt retirement. Bonding also includes the
operating expenses.
There was also discussion on other potential projects in the city.
Mr. Licht cautioned the Council on allowing development all over the City. These types
of issues will be addressed in the Comprehensive Plan. He also reminded the Council one
of the reasons for the plant on the east side is the potential major groundwater pollution
which is a public responsibility.
CM Wendel conclusion was if there are not enough hookups, there would be a need to
borrow from the General Fund and to make sure this information is given to the public.
City Council Workshop of September 10, 1997, cont'd. Page 3.
CM Beming was concerned with the policy regarding the existing developments
petitioning for hookups. He was concerned with the City being able to show benefit and if
residents would be able to appeal the assessment. This would also create leapfrog
hookups.
Mr. Harwood reminded everyone the entire study area will ultimately be served one day
but the City intentions now is to serve as needed.
After further Council discussion, CM Heidner suggested to include in the language 'if
feasible.' Mr. Licht also noted the definitions for the Immediate Service Area etc., will
change in the Comprehensive Plan update.
C. Treatment Plant Flood I)Iain / Shoreland Issues
(Not applicable based on current site selection) (Bob Kirmis)
D. Financial Assurances (i.e. tax ca= acit , ete., (Ted Fieldl
Ted Field went over the Revolving Low Interest Loan Program, which would be most
likely the funding source. Eligible costs can include almost everything except easements
and land acquisitions. He also explained the monthly scheduled payments.
Mayor Fournier asked if current commercial will be enough for the needs list.
Mr. Field said every evaluation is done case by case and should put everything into it.
He noted Dayton will have a easier approval, but over-all cost sharing and a regional
system is a benefit.
CM Berning had concerns with Otsego's Financial Advisor and if they have ever been
involved in this type of application. After further discussion on this issue, Mr. Licht and
Elaine Beatty will have Tom Truszinski from Juran and Moody contact CM Berning.
Also, Elaine is to find out who is Dayton's Financial Advisor.
E. Urhan/Rural Taxing District Implications / Special District -Sewer
(Andrew MacArthur)
Mr. MacArthur explained how this has already been established. There is a possibility
this could change with the availability of services. The original lines can be changed but a
Public Hearing would be needed.
There was discussion on different options if the City doesn't meet the 80 RECS. Area.
assessment was also discussed. CM Berning felt the reasoning behind an area assessment
was if landowners receive benefit of sewer availability they should have some initial costs
towards their land since the valuation of their land will greatly increase.
There was staff and Council discussion on this issue with questions of when the benefit
factor comes in, also the impact to residential lots in an area assessment and everyone felt
these are financing questions.
John Harwood said he will be presenting the options.
Mayor Fournier will remind the public that the 80 RECS is a conservative number.
City Council Workshop of September 10, 1997, cont'd. Page 4.
4. Public Information Meeting;
A. Moderator (David Licht)
Mayor Fournier will moderate the meeting, give introductions, the ground rules, and
handle the direction of questions.
B. Format / Time (David Licht)
David Licht suggested no more than one hour for the presentation and no questions during
the presentation. Council agreed with this.
Council and staff went over the proposed agenda.
C. Presentation Outline
1. Background Issues and Need (David Licht)
2. Study/Work to Date (David Licht)
3. Decision-making Process / Time Schedule (D Licht)
4. System Policies (Licht/Harwood)
5. Sewer Treatment System Plan (Harwood)
6. Trunk System (Harwood)
7. Water System (Kielb)
8. System Finance (Harwood/Groen)
9. Public Comment
D. Facility and Set U(Licho
Council and staff discussed facility set up.
The agenda will have a map of the sewer service area on the back.
The agenda will also have the Public Comment Procedures printed on it.
The Council discussed limiting public comments to three (3) minutes each.
Ted Field questioned the site location and to expect questions.
John Harwood will address this and will show all sites that have been considered per the
Council.
Mr. Licht suggested a policy in regards to the land owned by the Darkenwalds. Language
of 'expansion of Package Treatment Plant or service area owned by the Darkenwald
Family shall be subject to the City approval or city services planned for Darkenwalds until
cap issue is resolved."
Language similar to this doesn't commit the city or the Darkenwalds.
E. Public Information (Licht,)
1. Newsletter
2. Newspaper
5. Other Issues
Andrew MacArthur updated the Council on a meeting, he, Mayor Fournier had with John
Darkenwald and Wallace Odell. The Darkenwalds have expressed interest in a joint
partnership with the City and they are getting a feasibility study together. Mr. MacArthur
stated there are land use issues and capacity issues and they will continue to meet with
them.
City Council Workshop of September 10, 1997, cont'd. Page 5.
5.5_ Public Comment
Wallace Odell questioned if this will be a Public Information Meeting and also a Public
Hearing. He also questioned how the Council can limit the time for questions.
Mr. MacArthur explained this meeting will also be a Public Hearing and the Council has
the authority to control the meeting and is done quite often, within reason.
John Darkenwald stated that his engineers show no problem enhancing their plant and
meeting standards to handle the land they own with a cushion. He also stated it is their
intent to use the permit to develop their land since they have been planning this all along
and fully intend to use that asset. This amounts to approximately 250 acres. John
questioned if the current commercial along 101 will be required to hook up to sewer.
Mayor Fournier explained the City's focus has been on the commercial at Parrish and
CSAH 39 but the Policy states all commercial and industrial will be required to hook up.
Kevin Kielb suggested to include language such as 'if property shows a need or desire to
hook up.' or ' as required provided to all developed commercial and industrial uses within
the Immediate Service Area which demonstrates a need.'
There was additional comments by Mr. Odell regarding the Darkenwald Private Plant,
policy issues, transferring the plant to the City and zoning issues.
John Darkenwald told the Council he will have the Feasibility Study to the City before
Monday.
6. Adjourn
CM Heidner motioned to adjourned. Seconded by CM Ackerman. All in favor.
Motion carried.
Meetiniz adiourned at 9PM.
kdm.
Rec d d Judy Hudson, Deputy Clerk
City Clerk
CITY OF OTSEGO COUNCIL WORKSHOP
RE: SANITARY SEWER / WATER PROJECT
SEPTEMBER 109 1997 - 6:30PM
**AGENDA**
1. Call to Order / Roll Call (Mayor Fournier)
2. Unresolved Issues / Assumptions:
A. Treatment Plant Ownership (See 9/3/97 MacArthur letter)
B. Darkenwald Property Policy (B. Kirmis)
3. New and / or Updated Information:
A. Process Outlines
1. Trunk (J. Harwood)
2. Treatment Plant (Bonestroo)
B. Area Building Permit Activity (B. Kirmis)
C. Treatment Plant Floodplain / Shoreland Issues
(Not applicable based on current site selection) (B. Kirmis)
D. Financial Assurances (i.e., tax capacity, etc.) (T. Field)
E. Urban/Rural Taxing District Implications / Special District -Sewer
(MacArthur)
4. Public Information Meeting:
A.
Moderator (D. Licht)
B.
Format / Time (D. Licht)
C.
Presentation Outline
1. Background Issues and Need (D. Licht)
2. Study / Work to Date (D. Licht)
3. Decision -Making Process / Time Schedule (D. Licht)
4. System Policies (D. Licht / J. Harwood)
5. Sewer Treatment System Plan (J. Harwood)
6. Trunk System (J. Harwood)
7. Water System ( K. Kielb)
8. System Finance (J. Harwood / G. Groen)
9. Public Comment
D.
Facility and Set Up (D. Licht)
E.
Public Information (D. Licht)
1. Newsletter
2. Newspaper
5. Other Issues
6. Adjourn