07-27-98 CCCITY OF OTSEGO
WRIGHT COUNTY, MINNESOTA
CITY COUNCIL MEETING
6:30 PM
COUNCIL CHAMBERS
OTSEGO CITY HALL
JULY 27, 1998
1 _ Mayor La= Fournier will call meeting to orde
Mayor Fournier called the meeting to order t 6:30 PM.
a_ Pledge of Allegj nc
Mayor Fournier led in the Pledge of Allegiance.
Mayor Larry Fournier; Councilmembers: Virginia Wendel, Suzanne Ackerman, Vern
Heidner and Mark Berning.
Staff: Mike Robertson, City Administrator; Elaine Beatty, City Clerk/Zoning
Administrator; Judy Hudson, Deputy Clerk/Treasurer; Andrew MacArthur, City
Attorney; John Harwood, City Engineer; Gary Groen, City Accountant. Also attending
was Tom Truszinski, VP of Juran and Moody, Inc.; City Financial Advisor.
2. Consider agenda approval"
CM Wendel requested addition under Item 9.1. Heritage Commission Report.
CM Berning requested to remove Item 5.1. from the Consent Agenda and placed under
9.1.
Mike Robertson requested the following addition under Item 9 Discussion of City Council
pay periods. Addition under Item 4.2.a. Consideration of adding Juran and Moody to the
City's Depository list. Add County's Point of Sale Ord under Item 9.2. and also
Consideration of approval of Collateral from Bank of Elk River under Item 9.2.b.
Mayor Fournier requested to move Item 7.2. to 9. Le.
CM Berning motioned to accept the July 27, 1998 City Council Agenda as amended.
Seconded by CM Ackerman. All in favor. Motion carried.
3, Consider minutes:
A Regular City Council Meeting of July 13. 1998
CM Heidner motioned to adopt the July 13,1998 City Council Meeting Minutes.
Seconded by CM Ackerman. All in favor Motion carried.
4. Open Forum:
4-1 Special presentation by Tom Truszinski, VP Juran & Moody,lnc
Council approval of $4-5 million Bond sale for Sewer and Water project.
Truszinski said that they received bids from all over the United States, which usually
doesn't happen. This means that Otsego is in good financial shape, has strong credit, and
everyone was interested in this bid. He complimented the City Council and staff on their
fiscal administration.
City Council Meeting of July 27, 1998, cont'd. Page 2.
Mr. Truszinski went over the attached Bid Sheet. The lowest bid had an interest rate of
4.75%. This means that there will be over $263,000 less in interest costs than anticipated.
Mayor Fournier motioned to accept Suntrust Equitable Securities Bid for the 4.5
Million Dollar General Obligation Sewer and Water Revenue Bonds of 1998, Series
A, including insurance. Seconded by CM Wendel. All in favor. Motion carried.
The next step will be the closing in about three weeks followed by receipt of the money.
4.2. Any other Open Forum Items:
4-2-a- Consider adding 1 uran and Moody on the City's Depository List,
CM Berning motioned to amend the City's Depository List to include Juran and
Moody. Seconded by CM Wendel. All in favor. Motion carried.
4-2-b. Additional Collateral provided by Bank of Elk River,
Mr. Groen stated he feels the collateral is adequate.
CM Heidner motioned to accept the additional collateral from the Bank of Elk
River. Seconded by CM Wendel. All in favor. Motion carried.
5. Consent Agenda,
5 2 Approve and Prepare a Resolution for a 4 Way Stop I igns for 85th and
Odean"
5 Approve August 12, 1998 at 7 PM for Otsego/Albertville Joint
Meeting to discuss Sewer and Water.
Item 5.1. was removed and placed under Item 9.
CM Berning motioned to adopt the Consent Agenda as amended. Seconded by CM
Ackerman. All in favor. Motion carried.
The Council directed the Stop Signs should have flashers on top.
7 Andrew MacArthur,City Attorney
7.1. Set Public Hearing for August 10, 1998 - Establishing a Redevelopment
District - Otsego Industrial Park_
Mr. MacArthur requested this Hearing be held on August 24th rather than the 10th.
CM Heidner motioned to set a Public Hearing for August 24, 1998 during the City
Council Meeting for the Public Hearing Establishing a Redevelopment District at
Otsego Industrial Park. Seconded by CM Ackerman. All in favor. Motion carried.
Item 7.2. removed and placed under Item 9.
None
City Council Meeting of July 27, 1998, cont'd. Page 3.
8. John Harwood, City Engineer:
8.1. Approval of Mississippi Shores Shouldering Project,
Mike Robertson stated the expenditure for this project comes out the original project fund
which has $70,000 left.
Mayor Fournier motioned to adopt Resolution No. 98-17 approving the scope of
work and authorizing a contract for work done by Day Labor not to exceed $11,000
for Mastercraft Landscaping Inc. Seconded by CM Heidner. All in favor. Motion
carried.
8.2_ Discussion of Street overlays.
The Council discussed different ways of paying for these projects. Some options were;
the City pays 40% or 50% and assesses the balance; levy for several projects at once
where everyone in the City pays and assess the affected residents a set amount; or the city
pays for the project and places the costs on the general tax levy. Nothing was decided.
The Council wanted more information from staff such as the estimated cost of the next
five projects and how much would this increase the levy. Also needed are the figures
comparing the costs of maintenance for gravel and paved roads.
8.3. Approval of Plans and Specs. for Water Tower.
n
Mr. Harwood distributed the Plans and Specs for the Water Tower.
Mayor Fournier motioned to adopt the Resolution approving Plans and
Specifications and Ordering Advertisement for Bids for Otsego's Water Tower.
Seconded by CM Ackerman.
CM Berning motioned to table the motion until the next City Council Meeting.
Seconded by CM Heidner.
Voting For the Motion: CM Ackerman, CM Wendel, CM Heidner, CM Berning
Voting Against the Motion: Mayor Fournier
Motion carried four (4) to one (1).
Mayor Fournier directed the City Clerk to have this item on the next City Council Agenda.
8.4. Any other Engineering Business.
Mayor Fournier set Monday, August 3rd, 4 PM for a City Council Workshop to review
Plans and Specs for the Water Tower.
9. Council Items:
9.1. A. Discussion of 85th St. Speed Limit
Mike Robertson stated in order to change the speed limit on 85th Street a speed study will
need be done by the State.
CM Wendel motioned for staff to send a letter to the State Highway Commissioner
to request a speed study on 85th Street from Nashua to CSAH 42. Seconded by
Mayor Fournier. All in favor. Motion carried.
Julie Schoen, 85th Street, she requested stop signs be placed at Packard and 85th Street to
slow down traffic.
City Council Meeting of July 27, 1998, cont'd. Page 4.
Karl Trott, 85th Street. He felt the speed study should be from Odean to CSAH 42, that
including Nashua to Odean would be detrimental to the study since that area includes a lot
of Ag. land.
Suzanne Ackerman, Packard Avenue. She supports a stop sign at Packard and 85th.
Also would like to see "Children at Play" Signs put up.
The Council agreed with the "Watch for Children" Signs but to wait with stop signs at
Packard to see if the stop signs at Odean will help reduce the speeding.
B Discussion of Cit; articinatinn of 40% for the maintenance
portion of the Street Overlays.
Previously discussed.
C_ Discussion of Peavey House fmances.
Elaine Beatty went over the attached information of expenditures for the Peavey House
from 1990 to 1994. CM Ackerman explained the Heritage Preservation Commission have
stated there has been too many modifications to the Peavey House for it to be listed as a
historical site. The Council would also like review the finances on this property from 1994
to present.
D Discussion of registration of Otsego Feedlots by Wright County.
Elaine went over the attached letter from Wright County Soil and Water Conservation.
The Council discussed having the County register the feedlots in Otsego but were
concerned what the County exactly wants. No decision was made. Mike and Andy were
directed to discuss the issue with county officials.
E_ Any other Council Business.
CM Wendel stated the Heritage Commission is upset that Vogel's check was withheld and
requested it be released. CM Ackerman explained the Commission is communicating with
Vogel and need to work out a few things. The first report is just a draft and final copy
will be received after the first of the month.
CM Wendel motioned for Vogel's check to be sent to him. Seconded by CM
Ackerman. All in favor. Motion carried.
Andy MacArthur explained the Heritage Commission is set up under State Statute. They
are given certain planning and zoning input in historic significant sites.
The Council requested more information on this and if the Commission has a list of
historical sites in Otsego. CM Wendel stated she supports the wonderful articles Elaine
Norin contributes to the Otsego View.
9_E.a_ City Council Pay Periods
CM Ackerman would like to see the pay period switched back to the first one of the
month rather than the second pay period. Mayor Fournier had discussed this with Gary
Groen, City Accountant. Gary doesn't care what pay period they are paid as long as all of
the Council is paid at the same time. After Council discussion, it was decided to leave as is
with no change.
City Council Meeting of July 27, 1998, cont'd. Page 5.
9 E b 5 1 Approve raise for Election Judges from $5.50 to %6_00 per hour.
CM Wendel motioned to approve the Election Judge pay increase to $6.00 per hour.
Seconded by CM Ackerman.
Voting For the Motion: Mayor Fournier, CM Heidner, CM Ackerman, CM
Wendel.
Abstained: CM Berning (since his wife is an election judge)
Motion carried.
9 E c 7.2. Consider Contract Sewer Agreement with City of Dayton
The City Council and Andrew MacArthur, City Attorney; John Harwood, City Engineer;
Mike Robertson„ City Administrator and Elaine Beatty, City Clerk/Zoning Administrator
finished going through the contract. The changes were noted by Mr. MacArthur and
Elaine Beatty. A final draft will be completed and distributed.
9.2. Mike Robertson. City Administrator - update:
9.2.a. County's Point of Sale Ordinance.
Mike stated he has talked to Pat Sawatzke, County Commissioner, regarding the County's
Point of Sale Ordinance. The Ordinance requires at the time of a home sale, the septic
system must be certified that it is in working condition and is current with State Statutes.
Mike asked if there could be an arrangement for Otsego residents because of the new
sewer plant that pumping could be done until sewer is put in. Pat stated he sees no
problems coming to an arrangement with Otsego, but he was looking for a short period
where failed septic systems would be allowed before being replaced with city sewer.
9.3. Elaine Beatty. City Clerk - update.
Elaine discussed with the Council having a longer term fire contract with Elk River. Lori
Johnson, Elk River's Finance Officer has suggested this. The Otsego Council agreed to go
with a five year contract.
9.4_ Consider Claims List fora rnp oval.
Mayor Fournier motioned to accept the Claims List except for the $6,000 invoice
from Hakanson, Anderson for the Potable Water Plans and Specs, since the plans
were not approved tonight. Seconded by CM Ackerman. All in favor. Motion
carried.
9.5. Adjourn by 10 PM.
CM Berning motioned to adjourn. Seconded by CM Ackerman. All in favor.
Motion carried.
Meeting adisurned at 10:55 PM.
Fournier
Attest: Elaine Beatty, City Clerk/;�o#ing Adm
Recorded by: Judy Hudson, Deputy Ckrk
City Seal