09-13-10 CCOTSEGO CITY COUNCIL MEETING
OTSEGO CITY HALL
SEPTEMBER 13, 2010
7:00 PM
1. Mayor Jessica Stockamp will call the meeting to order.
Mayor Stockamp called the meeting to order at 7 PM.
Roll Call: Mayor Jessica Stockamp; Councilmembers: Vern Heidner, Dan Scharber and Tom
Darkenwald.
Staff: Mike Robertson, City Administrator; Tami Loff, City Clerk; Gary Groen, Finance Director;
Daniel Licht, City Planner; Ron Wagner, City Engineer; Andy MacArthur, City Attorney.
Pledge of Allegiance: Mayor Stockamp led in the Pledge of Allegiance.
2. Consider agenda approval.
City Engineer Wagner requested to add item 10.2 Braun Intertec Quote. Finance Director Groen
requested to add item 12.6. Bank of Elk River request. CM Darkenwald requested to add item
12.7 Quaday Avenue.
CM Heidner motioned to approve as amended. Seconded by CM Scharber. All in
favor. Motion carried.
3. Consider the following minutes.
3.1. August 23, 2010 City Council Meeting.
CM Heidner motioned to approve. Seconded by CM Scharber. All in favor. Motion
carried.
4. Appoint Doug Schroeder to the Otsego City Council.
CM Heidner motioned to appoint Doug Schroder to fill the empty seat left by Mark
Thorsted. Seconded by CM Darkenwald.
City Clerk Loff swore in CM Schroeder.
5. Open Forum: (5 minute limit)
5.1. Special Presentation: Introduction of Little Miss and Mister Otsego Candidates.
Otsego Festival Chair Rose Cassady presented the candidates for Little Miss and Mister Otsego.
6. Consent Agenda.(Non-controversial items).
6.1. Approve Claims List.
6.2. Approve MMUA amendment to service contract.
6.3. Approve Final Payment for Otsego Creek Restoration.
6.4. Approve Invoice to AE2S in the amount of $4,243.00.
6.5. Approve land application site.
CM Scharber motioned to approve. Seconded by CM Heidner. All in favor. Motion
carried.
7. Unfinished Business.
No items.
8. Public Works.
8.1. PLC Documentation Proposal.
City Council Meeting September 13, 2010. Page 2.
City Administrator Robertson said this item was presented to the Public Works Subcommittee
and recommended for approval. The PLC could only be updated when other maintenance is
required. Estimate $16,000 work still remains to be done. CM Heidner said it was talked about
at the last meeting that Stuart Stevens was to be contacted. City Engineer Wagner said yes and
the documentation good. City Council agreed.
8.2. Consider sale of surplus equipment.
Public Works Supervisor Belair received two bids for the purchase of the 1994 Ford Tandem
Truck and 1990 Ford Dump truck. He recommends the high bid from Nuss Truck in the amount
of $24,000. CM Scharber asked if these dollars will stay in the Capital Fund. Finance Director
Groen said yes.
CM Heidner motioned to approve $24,000 from Nuss Truck. Seconded by CM
Scharber. All in favor. Motion carried.
9. Daniel Licht, City Planner.
9.1. Waterfront East Outlot A landscaping.
City Planner Licht presented the Planners Report. City Staff received two quotes from Midwest
for landscaping around Outlot A. City Attorney MacArthur reviewed drawing on the letter of
credit. The letter of credit is good but staff is trying to avoid drawing on it. CM Darkenwald
asked who would be the responsible party. City Attorney MacArthur said the bank cannot turn
over the property until the foreclosure redemption period ends on October 13. City Planner Licht
said Midwest is giving excellence prices on the trees for the landscaping. CM Heidner said we
are giving someone else a really good deal hoping they will write the check afterward. CM
Darkenwald said we can't do anything until October 13. City Attorney MacArthur said the
Council could approve contingent on getting the funding upfront.
CM Schroeder approved contingent on staff getting satisfactory funding from the
bank or developer. Seconded by CM Darkenwald. All in favor. Motion carried.
CM Darkenwald asked how many hours would this take for maintenance if this comes back to
us. Public Works Supervisor Belair said about once every two weeks or so for mowing
dependent on the weather.
10. Ron Wagner, City Engineer.
10.1. Discussion of DNR request for Water Table Monitoring Well Site.
City Engineer Wagner reviewed the request from the DNR to place a monitoring well on the city
parcel located at 85th Street and Park Avenue. This would be the SW corner of the future
Otsego Fire Station.
CM Heidner motioned to approve subject to the changes by staff in the contract.
Seconded by Mayor Stockamp. All in favor. Motion carried.
CM Darkenwald asked who is responsible for capping the well and at whose cost? City Attorney
MacArthur said conditions #3 and #8 would make the DNR responsible.
10.2. Braun Intertec Quote.
City Engineer Wagner reviewed the proposal for Soil Observation Services for work on Otsego
Creek in the amount of $1,282.50. CM Heidner said this will be paid for out of the Otsego Creek
Fund.
CM Heidner motioned to approve amount of $1,282.50. Seconded by CM Scharber.
All in favor. Motion carried.
City Council Meeting September 13, 2010. Page 3.
11. Andrew MacArthur, City Attorney.
11.1. PUBLIC HEARING: regarding adoption of a proposed Capital Improvement Plan
and the proposed issuance of General Obligation Capital Improvement Bonds.
City Attorney reviewed the Capital Improvement Plan (CIP) and the issuance of Capital
Improvement Bonds for the Public Works Building.
A. City Clerk attest to legal notice.
City Clerk Loff attested that it was published and posted.
B. Comments by City Staff regarding purpose of hearing.
Finance Director Groen reviewed the proposed payment schedule and summary. The interest rate
is currently 4.18% and should decrease about 2%.
Paul Donna, Northland Securities, said the official bond sale will be at the October 25t" City Council
meeting.
C. Presentation of proposed Capital Improvement Plan.
D. Presentation of information regarding Capital Improvement Bonds.
E. Open the Public Hearing for relevant public comments.
Mayor Stockamp opened the Public Hearing at 7:56 PM
F. Close the public hearing.
Hearing no public comments. Mayor Stockamp closed the Public Hearing at 7:57 PM.
CM Darkenwald asked the length of this bond. Finance Director Groen said it is a ten year bond
and December 2021 will be the final payment.
Paul Donna said there will be a new 8- 9 year call date.
CM Scharber motioned to approve Resolution 2010-34 giving Preliminary approval to
the issuance of General Obligation Capital Improvement Plan Bonds in an amount not
to exceed $3,750,000 and adopting the City of Otsego, MN CIP for the years 2010-
2014. Seconded by CM Heidner. All in favor. Motion carried.
CM Darkenwald motioned to approve items 11.2 and 11.3 to 15.1 and 15.2. Seconded
by CM Schroeder. All in favor. Motion carried.
12. Council Items.
12.1. Set Preliminary 2011 Tax
Finance Director Groen said the tax increase is 3.8 percent, and that can be reduced but not
increased when the final amount is set in December.
CM Heidner motioned to approve resolution 2010-33 setting the Preliminary Tax
Levy of $3,966,000 for 2011. Seconded by CM Scharber. All in favor. Motion carried.
12.2. 2006 Improvement Bonds.
Finance Director Groen reviewed the current bonds to be refinanced due to the current drop in
interest rates. Rates will decrease 1.4%. CM Heidner said the bottom line is this is over a
$700,000 savings.
12.3. Refinance Water & Sewer Bonds.
Finance Director Groen estimated the interest rates on these bonds will decrease almost 2%.
City Council Meeting September 13, 2010. Page 4.
CM Schroeder motioned to approve Resolution 2010-35 approving the issuance of
General Obligation Capital Improvement Plan refunding Bonds, Series 2010B
General Obligation Water and Sewer refunding Bonds, Series 2010C and General
Obligation Improvement refunding Bonds, Series 2010D. Seconded by CM Scharber.
All in favor. Motion carried.
12.4. Scharber & Sons Invoice.
CM Heidner motioned to approve invoice in the amount of $383.74. Seconded by
Mayor Stockamp. Motion carried 4-0. CM Scharber abstained.
12.5. Appoint alternate position on the Parks & Rec Commission.
Mayor Stockamp said the Parks & Rec Commission recommends applicant Kari Menzia.
CM Heidner motioned to approve appointing Kari Menzia to the Parks and Rec
Commission as the alternate. Seconded by Mayor Stockamp. All in favor. Motion
carried.
12.6 Bank of Elk River request.
Finance Director Groen said the bank currently pledges 4 million dollars in securities and would
like to lower that to 2 million as the city does not require as much collateral anymore.
CM Scharber motioned to approve. Seconded by CM Heidner. All in favor. Motion
carried.
12.7 Quaday Avenue.
CM Darkenwald said that during the event held at the VFW Fields this last weekend; people
were parking on the street and sidewalk, even though there were no parking signs posted.
Mayor Stockamp said that she will bring up at the Police Commission meeting tomorrow night.
13. Mike Robertson, City Administrator.
No items.
14. Gary Groen, Finance Director.
No items.
15. Tami Loff, Citv Clerk.
15.1. Closed for Attorney/Client privilege.
CM Scharber motioned to close the City Council meeting for Attorney /Client
privilege. Seconded by CM Darkenwald. All in favor. Motion carried. Closed the
meeting at 8:24 PM_
Mayor Stockamp motioned to close the Attorney/Client meeting. Seconded by CM
Heidner. All in favor. Motion carried.
CM Schroeder motioned to reopen the regular City Council meeting at 8:41 pm.
Seconded by CM Scharber. All favor. Motion carried.
CM Darkenwald motioned to direct the City Attorney to seek review by the
Minnesota Supreme Court of the Court of Appeals decision regarding the City of
Otsego and the New River Medical Center. Seconded by CM Scharber. All in favor.
Motion carried.
15.2. Closed meeting re: property acquisition.
City Council Meeting September 13, 2010. Page S.
City Attorney MacArthur announced that the meeting would be closed to discuss possible
purchase of 8600 Odean Avenue.
CM Schroder motioned to close the meeting at 8:44 pm. Seconded by CM Scharber.
All in favor. Motion carried.
CM Scharber motioned to pursue this property acquisition subject to certain
conditions. Seconded by Mayor Stockamp. All in favor. Motion carried.
CM Heidner motioned to reopen meeting at 8:58 PM. Seconded by CM Scharber. All
in favor. Motion carried.
16. Adjourn by 10 PM.
The City Council and Staff meet with the City of Albertville Council and Staff at 9 PM to discuss
the I-94/CSAH 37 Interchange Project. The City of Albertville reviewed their financing plan.
They are getting $1,640,000 from Wright County and $5,440,000 from State Fund. They have a
$2,060,000 funding gap and are asking the City of Otsego to fund $1,030,000. Albertville Mayor
said in order to use the Transportation Revolving Loan Fund they must submit their application
by September 30tn
CM Heidner asked about CSAH 19 to 70th Street. Albertville said Wright County will not do.
Mayor Stockamp asked how they came up with the number. Albertville City Administrator Larry
Kruse said that Otsego has more acres & population.
Mayor Stockamp said she feels St. Michael should be included.
CM Darkenwald said he views this as a benefit the question is how much?
CM Schroeder said the vast majority that will benefit is Albertville.
City Attorney MacArthur said the information the City of Otsego got was pretty limited and we
will need to review.
Motion By CM Darkenwald, Seconded by CM Schroeder to provide funding to the
proposed I-94/CSAH 19 Phase 1 interchange project as follows:
1. Otsego will participate in funding for the I-94/CSAH 19 Interchange Phase
One Project up to $400,000.00 or 3.6 percent of the total project cost,
whichever is less. The $400,000.00 contribution is based upon the engineer's
estimate for the project and is the maximum that the City will contribute. In
the event that the bid for the project is below that estimate, Otsego's
contribution will be reduced and pro -rated at the same percentage as its
contribution to the unfunded portions of the overall project.
City Council Meeting September 13, 2010. Page 6.
2. The funding mechanism for Otsego's contribution shall involve payment to
Albertville and/or Wright County one or both of which are expected to issue
financing bonds for the Phase 1 project or other structure and on a schedule
as approved by the Otsego City Council. If Otsego is to make payments to
Albertville and/or Wright County for the repayment of bonds, the payment
shall be at the lowest interest rate for which debt has been issued for the
project or loans acquired.
3. Otsego has determined to contribute to the Project on the front end even
though the benefit to Otsego, if any, would attach to Phase Two of the
Project which would establish a more efficient route to the east. The above
mentioned contribution is based upon Albertville's assurance that it will
proceed in good faith to complete Phase Two of the Project and have it
completed within three years from the date of this Agreement. Based upon
Otsego's contribution to Phase 1 of the project Albertville agrees that no
contribution from Otsego is expected for Phase 2 of the Project. Otsego
would support any applications for funding from other sources.
4. Albertville has requested Otsego's contribution to this Project even though
the portion of the Project that is actually within Otsego's jurisdiction is
extremely small. Otsego is making the above contribution based upon
potential limited future benefit to Otsego, in the spirit of cooperation
between the Cities and based upon the specific representations of Albertville
that they will actively cooperate with future projects within the City of
Otsego. In order to make the contribution Otsego needs to receive the
following consideration from Albertville:
a. Albertville will take action within six (6) months of an agreement
signed between the parties to include in its Comprehensive Plan and
official controls guidance to acquire needed right of way for a Kadler
Avenue Interchange at no cost to Otsego so that sufficient right-of-
way is acquired by either the platting process, official mapping or
otherwise by Albertville within the City of Albertville for the Kadler
Avenue Interchange Project.
City Council Meeting September 13, 2010. Page 7.
b. Wright County, Albertville and Otsego will agree to allowed full and
limited right-in/right-out intersection locations for the future build out
of CSAH 19 between I-94 and 75t" Street and along 70t" Street from
MacIver Avenue to 77t" Street.
C. Albertville agrees that Otsego's contribution to the Phase 1 project
relieves Otsego of any responsibility for the cost of traffic signals that
were installed by Albertville at the existing west bound exit from I-94
at CSAH 37 as Otsego was not asked for any contribution when the
traffic signal was installed.
Motion carried 5-0.
CM Scharber motioned to adjourn. Seconded by CM Darkenwald. All in favor. Motion
carried. Adjourned at 11:20 PM.
ATTEST:
Tami Loff, City Clerk
Mayor Jessica Stockamp