08-27-12 CCOTSEGO CITY COUNCIL MEETING
OTSEGO PRAIRIE CENTER
August 27, 2012
7:00 PM
Call to Order.
Mayor Jessica Stockamp called the meeting to order at 7:00 PM.
Roll Call: Mayor Jessica Stockamp; Councilmembers: Dan Scharber, Doug Schroeder and Tom
Darkenwald. Excused absence: Councilmember Vern Heidner.
Staff: Lori Johnson, City Administrator; Gary Groen, Finance Director; Ron Wagner, City
Engineer and Tami Loff, City Clerk.
Pledge of Allegiance: Mayor Stockamp led in the Pledge of Allegiance.
1. Open Forum.
1.1 Special Presentation: Monticello Hospital District update.
Chief Executive Officer of New River Medical Center Marshall Smith presented the 2011 annual
report. Copies of the report were passed out to the City Council. Other hospital representatives
present were Joni Poulok, Heather Eidem and Otsego District Board Representative Robert
VanDenBerg. Mr. Smith said that in October 2012, New River Medical Center will change to a
non-governmental, nonprofit 501(c) 3.
CM Darkenwald asked if there will be two boards. Mr. Smith said yes two boards, one will be
the district board and the other is nonprofit board. CM Darkenwald asked which one is the
holding company. Mr. Smith said the district board. Mayor Stockamp asked how the members
of the nonprofit board are chosen. Mr. Smith said by the district board.
City Administrator Johnson said one concern for the city is the hospital district's tax levy. She
asked Mr. Smith what the district's levy plans were for 2013. Mr. Smith said that that they do
have a deficiency for 2012 and plan to levy. City Administrator Johnson asked if the Medical
Center has looked at ways of cutting back on operating costs and said that the city's goal is to
not have any hospital district levies.
Mr. Smith said they have looked at salary and non -salary and said there goal is to reduce it
without reducing service. Mr. Smith said that they are looking at all possibilities and working
with the bond holder on an assessment.
City Administrator Johnson asked what the amount of the estimated levy is projected to be. Mr.
Smith said 1.5 million which will double the existing hospital district tax.
City Administrator Johnson said that the city is disappointed as the city is trying to keep taxes
low for residents and then other taxing districts such as the hospital increase the tax. She
stressed that Mr. Smith and the Medical Center Board and staff review the budget and make
additional reductions to eliminate the levy. Ms. Johnson stated that the majority of Otsego
residents do not use the New River hospital although based on the proposed levy they will now
be paying more to support an operating shortfall for a hospital they do not use which is
contrary to the request and desire of the City Council.
CM Darkenwald said a couple of years ago the hospital levy was $800,000 and that we were
trying to reduce the levy down to zero and now you are talking about increasing the levy to
$1.5 million. Mr. Smith agreed.
State Representative Mary Kiffmeyer introduced herself and said she is running to be the local
senator for this area. She said she is available as a resource to the City Council if needed. Mrs.
Kiffmeyer stated that the detailed packet made available to the residents by the City Council is
very good and she appreciates that.
2. Consider agenda approval.
CM Scharber motioned to approve as written. Seconded by CM Schroeder. All in
favor. Motion carried.
3. Consent Agenda. (Non -controversial items).
3.1 Approve Claims List.
3.2 Approve City Council Meeting Minutes.
A. August 13, 2012 6:00 PM Meeting.
B. August 13, 2012 Special City Council Meeting.
3.3 Received Commission Meeting Minutes.
A. Heritage Preservation Commission June 12, 2012.
3.4 Pay Estimates/Requests:
A. 70th Street.
B. City Hall Project.
3.5 Kaleidoscope SAC/WAC Agreement.
CM Scharber motioned to approve. Seconded by CM Darkenwald. All in favor. Motion
carried.
4. Public Works:
4.1 2012 Bituminous Trail. Parkina Lot and Drivewav Maintenance Proiect.
City Engineer Wagner presented the staff report. City staff is recommending Allied Blacktop
Company in the amount of $39, 889.38. CM Scharber asked if this would be done this fall. City
Engineer Wagner said yes by September 15tH
CM Scharber motioned to approve award of 2012 Bituminous Trail, Parking Lot and
Driveway Maintenance project to Allied Blacktop Company in the amount of
$39,889.38. Seconded by CM Schroeder. All in favor. Motion carried.
5. City Council Reports and Updates.
No items.
6. Staff Reports and Updates.
City Administrator Johnson said that the Wright County Economic Development Partnership will
be hosting the second State of the Cities meeting on September 13. Otsego is one of the Cities
presenting. All City Council members are invited to attend.
City Administrator Johnson said she would like the Economic Development Authority (EDA) to
call a special meeting to review economic development polices on September 24, 2012, if all
EDA members can be present that night and if it works with the City Council schedule. The City
Council agreed and recommended the EDA president call a meeting and that the Council
meeting be moved to 6:00p.m.
CM Scharber motioned to move the September 24, 2012 City Council meeting to
6:00 PM. Seconded by CM Darkenwald. All in favor. Motion carried.
7. Adjourn.
CM Scharber motioned to adjourn. Seconded by CM Darkenwald. All in
favor. Motion carried. Adjourned at 7:30 PM.
ATTEST: ��t44k
Tami LofF, City Clerk
G"veytrml�p-
Mayor
Jessica Stockamp