ITEM 3.2B 8.24.215 MinutesITEM 3-2B
OTSEGO CITY COUNCIL MEETING
OTSEGO PRAIRIE CENTER
AUGUST 24, 2015
7:00 PM
Call to Order.
Mayor Jessica Stockamp called the meeting to order at 7:00 PM.
Roll Call: Mayor Jessica Stockamp; Councilmembers: Vern Heidner, Doug Schroeder and Jason
Warehime. Councilmember Tom Darkenwald arrived at 7:09 PM.
Staff: Lori Johnson, City Administrator; Daniel Licht, City Planner; Ron Wagner, City Engineer;
Andy MacArthur, City Attorney; Adam Flaherty, Finance Director; Ross Demant, Parks &
Recreation Director and Tami Loff, City Clerk.
Pledge of Allegiance: Mayor Stockamp led in the Pledge of Allegiance.
1. Open Forum.
No items.
2. Consider agenda approval.
CM Warehime requested to move Item 3.8 for discussion to Item 7.1.
CM Heidner motioned to approve as amended. Seconded by CM Schroeder. Motion
carried 4-0.
3. Consent Agenda. (Non -controversial items).
3.1 Approve Claims List.
3.2 Approve City Council Meeting Minutes.
A. August 10, 2015 Meeting.
3.3 Received Commission Meeting Minutes.
A. Heritage Preservation Commission July 14, 2015.
B. Public Safety Commission July 14, 2015.
C. Parks & Recreation Commission July 21, 2015.
3.4 Pay Estimates/Requests:
A. Approve payment to Hardrives Inc. in the amount of $148,397.02 for the Packard
Avenue Street Renewal Project.
B. Approve payment to Fehn Companies, Inc. in the amount of $457,681.93 for 70tn
Street/CSAH 37 Improvement Project.
3.5 Special Event Permit for Monticello Cross Country Meet.
3.6 Approve naming the park located in the Wildflower Meadows Development, Northwood
Park.
3.7 City Hall/PW Fencing Expansion Approval.
3.8 Ordinance 2015-06 Amendment and Resolution 2015-39 for City Council Pay.- REMOVED
CM Heidner motioned to approve as amended. Seconded by CM Schroeder. Motion
carried 4-0.
4. Parks and Recreation.
4.1 Consider Resolution 2015-40 acceotina Otseao Prairie Festival Donations.
Parks & Recreation Director Demant thanked all the sponsors for their donations. CM Warehime
asked which carnival company. Parks & Recreation Director Demant said Cody Rides. As a
sponsor CM Warehime said he will be abstaining.
CM Schroeder motioned to adopt resolution 2015-40 accepting donations for
sponsorship of the 2015 Otsego Prairie Festival. Seconded by CM Heidner. Motion
carried 3-0. CM Warehime abstained.
5.1 70" Street/CSAH 37 Improvement Project Supplemental Agreement No. 1.
City Engineer Wagner reviewed the supplemental agreement. Mayor Stockamp questioned the
school bus access. City Engineer Wagner said the company is aware.
CM Warehime said this is the first portion do you foresee similar issues on the next portion. City
Engineer Wagner said no; he doesn't see any extensive change orders.
CM Darkenwald arrived at this time.
CM Heidner motioned to approve proposed Supplemental Agreement No. 1 for the
70t" Street/CSAH 37 Improvement Project, in the amount of $274,801.36 (City
portion= $130,538.99.) Seconded by CM Schroeder. All in favor. Motion carried 5-0.
6. Administration.
6 1 Consider Resolution 2015-41 Requesting First Right of Purchase for Certain Tax Forfeit
Parcels.
City Administrator Johnson reviewed the list of parcels as outlined in the packet. The City
intends to acquire four parcels for stormwater management purposes.
CM Heidner motioned to approve Resolution 2015-41 A Resolution requesting
conveyance of certain tax forfeit parcels in the City of Otsego for non-payment of
property taxes. Seconded by CM Warehime. All in favor. Motion carried 5-0.
6.2 Consider Resolution 2015-42 Requesting the Minnesota Commissioner Revenue to convey
to the Cily a Tax Forfeit Parcel.
City Administrator Johnson and City MacArthur presented the staff report. A manufacturing
business has expressed interest in relocating to this site. The P & F Machining development
proposal will be added to the August 31 City Council agenda for discussion of a recent change
in the proposal to add a second building to the site.
Dan Pawlak, President of P & F Machining, said they are a growing business currently located in
Dayton. He said since his original plan was submitted, he has added a potential second building
and stated the minimum building space of 27,000 sq. feet. CM Warehime said he knows there
has been a noise issue at the Dayton location from homeowners regarding the business; is this
from P & F Machining or from other tenants? Mr. Pawlak said he thinks it was just one
homeowner and that he can stand outside of the business and not hear anything that is going
on inside. CM Darkenwald asked what made him decide to consider this site; location, property
taxes, staff etc. Mr. Pawlak said location, the traffic along 101 it was a nice fit and that the
estimated property taxes looked similar to the surrounding area and that City staff have been
easy to work with. City Administrator Johnson noted that some surrounding cities have
franchise fees and the City of Otsego does not and that needs to be taken into consideration
when reviewing and comparing property tax impacts. CM Schroeder asked if the support
building would be built prior to the expansion. Mr. Pawlak said yes and estimated within a year.
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CM Darkenwald asked City Attorney MacArthur if he should abstain since it's regarding TIF. City
Attorney MacArthur said no; he sees no conflict; this is only the very beginning which is
basically considering a consideration.
CM Schroeder motioned to approve Resolution 2015-42 requesting the Minnesota
Commissioner of Revenue to convey to the City a Tax Forfeit Parcel. Seconded by
CM Heidner. All in favor. Motion carried 5-0.
6.3 Consider Interfund Loan Resolution 2015-43.
City Administrator Johnson reviewed.
CM Heidner motioned to approve Resolution 2015-43 approving the terms of up to a
$450,000 Interfund Loan in connection with a potential Tax Increment Financing
District. Seconded by CM Warehime. All in favor. Motion carried 5-0.
6.4 Consider Resolution 2015- 44 for DEED Jobs Program.
City Administrator Johnson reviewed.
CM Schroeder motioned to approve Resolution 2015-44 regarding the support of
Job Creation Fund Application in connection with P & F Machining, Inc. Seconded by
CM Warehime. All in favor. Motion carried 5-0.
6.5 Compensation Study — Salary Survey.
City Administrator Johnson reviewed the staff report outlining the salary survey cities as
identified by Springsted, Inc. CM Heidner asked how the information collected from these cities
will come back to the City Council; each city individual? City Administrator Johnson said yes
each city is listed individually and in aggregate when the information is presented by
Springsted. The City Council requested review of the individual data before it is compiled and
pay plan recommendations are presented.
CM Warehime motioned to approve the Salary Survey Participants as proposed by
Springsted, Inc. Seconded by CM Schroeder. All in favor. Motion carried 5-0.
6.6 Consider Resolution 2015-45 authorizing execution of a Retainer Agreement with
the law firm of Reinhardt Wendorf & Blanchfield regarding Flushable Wipes Litigation.
City Attorney MacArthur presented the staff report. CM Darkenwald asked if Utility Manager
Neidermeier is aware of this and agrees that wipes have had an impact on our system. City
Attorney MacArthur said yes.
CM Schroeder motioned to approve Resolution 2015-45 approving Retainer
Agreement with Reinhardt, Wendorf & Blanchfield. Seconded by CM Heidner. All in
favor. Motion carried 5-0.
7. City Council Reports and Updates.
7.1 Ordinance 2015-06 Amendment and Resolution 2015-39 for City Council Pay.
CM Warehime said he asked for discussion on this item because he feels the change in the
Ordinance opens up more problems than fix the issue. He said he is okay with approving the
City Council pay on the consent agenda. He said it was his understanding the City Council
would be paid for City Council meetings, Special City Council meetings, Commission liaison
meetings, or if City Council as a whole directed to attend. He questioned some of the other
meetings; he said five people may have different views on what should be included. City
Attorney MacArthur said he wrote the Ordinance amendment as broadly as he could to
encompass what he saw looking at the paystubs and to cover the meetings over the past year.
He said he didn't see anything that wasn't a legitimate city meeting. He further stated that the
intent is that if there is a question on a specific charge it could be pulled from the consent
agenda for discussion. CM Heidner asked CM Warehime for example of an item. CM Warehime
said city sponsored events. CM Darkenwald said that person would be attending as a
representative of the city he doesn't see an issue and if there was a question it could be pulled
from the consent for discussion. He further stated he doesn't think it opens things up it protects
if anything. He said he has never seen an issue in the past. CM Heidner said there are a lot of
meetings he attends and marks no charge but you are there representing the City. Mayor
Stockamp asked Finance Director Flaherty if he thought the proposed ordinance would cover
the issue raised by the Auditors. Finance Director Flaherty said yes.CM Schroeder said the more
defined in the Ordinance the more likely it will be pulled. CM Warehime questioned if a meeting
with the Administrator or City Employee would be paid. City Attorney MacArthur said it would
be case specific. City Administrator Johnson stated that staff can implement the ordinance and
pay accordingly but the Council members need to decide and agree upon what is illegible for
pay. City Administrator Johnson suggested that documenting guidelines or including exclusions
in the ordinance may address the broadness of the proposed ordinance concern raised this
evening. Mayor Stockamp said this is new so we will not know until they come up; exclusions
could be complied once they are removed.
CM Darkenwald motioned to approve Ordinance 2015-06 amending the City Code of
the City of Otsego regarding Mayor and City Council salaries and to approve
Resolution 2015-39 approving Council payments for 2015. Seconded by CM Heidner.
All in favor. Motion carried 5-0.
8. Staff Reports and Updates.
City Administrator Johnson welcomed Finance Director Adam Flaherty.
9. Adjourn.
CM Darkenwald motioned to adjourn. Seconded by CM Warehime. All in
favor. Motion carried. Adjourned at 8:22 PM.
ATTEST:
Tami Loff, City Clerk
0
Mayor Jessica Stockamp