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Item 3.2.A. 2025.09.22 City Council MinutesPage 1 of 8 OTSEGO CITY COUNCIL MEETING MONDAY, SEPTEMBER 22, 2025 7:00 PM OTSEGO PRAIRIE CENTER Call to Order: Mayor Stockamp called the meeting to order at 7:00 PM. Roll Call: Mayor Jessica Stockamp and Councilmembers: Ryan Dunlap, Tina Goede, and Corey Tanner. City Staff: City Administrator/Finance Director Adam Flaherty, Streets Operation Manager Kevin Lamson, City Attorney Dave Kendall (*), City Planner Dan Licht, City Engineer Ron Wagner, and City Clerk Audra Etzel. Absent: Councilmember Michelle Lund. Attended via video conference (*). Pledge of Allegiance: Mayor Stockamp led in the Pledge of Allegiance. 1.Open Forum: Mayor Stockamp opened the Open Forum at 7:01 PM. Mark Nystrom, 9565 Park Ave NE asked about a second fire station, business development, and property taxes. Charles Hediger, 9539 Parkington Ave NE asked how the City will pay for the fire department and has concerns regarding the location of the station. Chad Brown, 1434 88th Street NE asked why two smaller fire stations could not be built with one on the east and one on the west. Melody Bruen, 17681 52nd St NE said she was told it would take 8 minutes and 56 seconds to get to her house which is 4 seconds under the national standards. Ms. Bruen thinks the fire department is a terrible decision. Travis Schulz, 13513 89th St NE asked about the compost site usage as he was turned away twice. Council directed staff to discuss this issue with the City of Albertville. Molly Peterson, 9920 105th St NE has concerns with increases to property taxes, and the median house value and homes are being affordable; her request is to stay within a budget. Nathan Lalum, 15559 77th St NE feels there should have been more planning to budget for projects. Item 3.2.A. MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING SEPTEMBER 22, 2025 Page 2 of 8 Mike Reis, 12096 68th Cir NE said the fire study suggested a substation with Elk River. Mr. Reis noted his home will be further away from the new fire station. Gerard Zachman, 6194 Oakwood Ave NE feels the City has not been transparent with the residents and he cannot afford the increase. Mr. Zachman is disappointed that the City is increasing taxes higher than the surrounding cities. Jeff Dahl, 6319 Mason Ave NE said he has concerns with the Albertville Fire Department increase and if the other contracted Fire Departments were to also increase significantly. Gerard Zachman, 6194 Oakwood Ave NE asked to divide up the City up between Albertville, Elk River and Monticello. Gabe Davis, 6689 Packard Ave NE said the residents have been lied to and the fire department will cost more money next year, and Otsego will have the most expensive fire department in Minnesota. Mr. Davis thinks the Council, except CM Dunlap, should resign. Dale Kolles, 14251 70th St NE is a long-time resident living on a fixed income and he is not in favor of the fire department. Brian Merkley, 7551 Ogren Ave NE built his home to live in for the rest of his life. Mr. Berkley asked about the taxes collected for new homes compared to once farmland; he has purchased land in another state because he cannot afford the taxes here. Sherry Lelleraas, 10084 Kahler Ave NE doesn’t understand the need for a fire station and hiring a fire chief without a department; the new station will be 15 miles from her home. Ms. Lelleraas said the franchise fees collected are over $500 along with other fee increases. Nancy Andersen, 9031 Mason Ave NE is a 40-year resident, and their taxes only continue to increase. Ms. Anderson would like the fire department project to be shut down. Deb Maros, 14682 84th St NE asked what the Council is doing to prepare for the homeless population being created. Dennis McAlpine, 13355 85th St NE has been a resident for 78 years and can’t believe the Council does not understand what the residents want. Dale Kolles, 14251 70th St NE has concerns with the fire hydrants being found with the weed growth. Charles Kolles, 15509 90th St NE asked about the new cold storage building cost. CM Dunlap said $1.4 million. Mr. Kolles said surrounding committees build their fire stations for under $9 million. MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING SEPTEMBER 22, 2025 Page 3 of 8 Mark Nystrom, 9565 Park Ave NE said the City Council lies and has burned the bridges with the surrounding communities. Mr. Nystrom said his neighbor had a fire and the Elk River Fire Department responded in two minutes and this will not happen with the Otsego Fire Department. Heather Dirkman, 13088 83rd St NE asked if the project can be postponed allowing the city to save the funds. Matt Thell, 14186 62nd St NE asked if the City Council is going to listen to the residents in attendance. Terry Hoel, 15477 93rd St NE has concerns about the property tax increases and wants change . Gabe Davis, 6689 Packard Ave NE questioned why the Mayor wasn’t interviewed by the news today. Tom Kohnen, 13108 70th St NE does not feel the project has been received well and has concerns about companies wanting to locate to Otsego ; he wants developers to pay for the infrastructure. Brittany Arnold, 9497 Parkington Ave NE feels the Council has made a decision without listening to the residents and she wants the residents to be heard. Joel Petersen, 7825 Parquet Avenue NE is disappointed with the City Council. Mayor Stockamp closed the Open Forum at 8:03 PM. 2. Consider Agenda Approval: CM Dunlap asked to have item 3.3 removed from the consent agenda for discussion, adding item 6.1 to the agenda. CM Dunlap motioned to approve the agenda as amended, seconded by CM Tanner. All in favor. Motion carried 4-0. 3. Consent Agenda. 3.1 Approve Claims List. 3.2 Approve City Council Meeting Minutes. A. September 8, 2025, Meeting. B. September 8, 2025, Special Meeting. C. September 15, 2025, Special Meeting. 3.3 Approve Pay Application #9 for the Fire & Emergency Services Facility Project. Moved to Item 6.1. 3.4 Approve Pay Application #4 for the Cold Storage Facility Project. 3.5 Approve Pay Application #4 (Final) for the Otsego Creek Rehabilitation Project. MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING SEPTEMBER 22, 2025 Page 4 of 8 3.6 Adopt a Proclamation – Recognition of Physician Assistant Week. 3.7 Adopt Resolution 2025-42 Accepting Public Improvements - O2B Kids Daycare. 3.8 Adopt Resolution 2025-43 Accepting a Donation of Emergency Warning Sirens. 3.9 Approve Amendment No. 2 to an Antenna Site Use Agreement – Verizon Wireless. 3.10 Accept Liability Insurance Renewal and Elect to Not Waiver Monetary Limits. 3.11 Adopt Resolution 2025-44 Declaring City Property as Surplus Property and Authorizing Sale. 3.12 Accept Quote and Authorize Dale Lehrke Soccer Field Irrigation Repairs. 3.13 Accept Quotes and Authorize City Campus Fencing & Gates and Cold Storage Pallet Racking. 3.14 Adopt Resolution 2025-45 Accepting Bids and Awarding Contact- Lift Station No. 4 Improvements. 3.15 Approve Pay Application #4 for the Carrick’s Landing Park Project. 3.16 Approve a Job Description and Authorize Recruitment – Lead Mechanic Position. CM Dunlap motioned to approve the consent agenda as amended, seconded by CM Goede. All in favor. Motion carried 4-0. 4. Planning. 4.1 Kittredge Crossings – PUD Concept Plan (JP Brooks Builders) A. Presentation by City Planner. B. Comments and Consideration of PUD Concept Plan. City Planner Licht reviewed the staff report and presentation. Paul Tabone, JP Brooks Builders representatives provided information regarding their company and project details. Mr. Tabone agrees with the staff report and was present to answer questions. Mayor Stockamp has concerns with town homes vs. single family homes and driveways onto Kalland Avenue and asked about a possible trail segment. Planner Licht said staff recommends sidewalks on both sides of Kalland and using existing sidewalk on 71st Street, it is challenging having trails go through private development creates maintenance and connection issues. CM Dunlap also feels the west side needs a better transition and the northeast lots may have site line issues. CM Tanner asked about the school traffic this year in the neighborhood. City Planner Licht said the street does meet the zoning requirements, noting there are peak times during school hours. Mayor Stockamp asked about the street alignment. City Planner Licht said the street alignment would be reviewed with the preliminary plat. CM Dunlap motioned to support the PUD Concept Plan for Outlots G and O, Kittredge Crossings and Outlot A, Villas of Kittredge Crossings, subject to the comments of the Planning MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING SEPTEMBER 22, 2025 Page 5 of 8 Commission from their meeting on 15 September 2025 and those outlined in the Planning Report dated 3 September 2025 as presented along with City Council comments, seconded by CM Tanner. All in favor. Motion carried 4-0. 4.2 Stillwild – Zoning Map Amendment, Conditional Use Permit & Preliminary Plat (Smith). A. Presentation by City Planner. B. Consider Adoption of Ordinance 2025-07 Amending the Zoning Map. C. Consider Approval of a Conditional Use Permit and Preliminary Plat. City Planner Licht reviewed the staff report and presentation. The applicants did not comment. CM Dunlap motioned to adopt Ordinance 2025-07 amending the Zoning Map and approve a Conditional Use Permit and preliminary plat for Stillwild subject to the conditions state on the Findings of Fact and Decision as presented, seconded by CM Goede. All in favor. Motion carried 4-0. 5. Finance: 5.1 Preliminary Property Tax Levy: A. Presentation by City Administrator. B. Consider Resolution 2025-46 Adjusting the 2026 Debt Service Property Tax. C. Consider Resolution 2025-47 Adopting a Preliminary Tax levy for Taxes Payable 2026. D. Consider Scheduling the Truth in Taxation Hearing. City Administrator/Finance Director Flaherty reviewed the staff report and presentation. CM Goede asked about the proposed tax increase for the median value. Flaherty reviewed the values. Flaherty noted that once the preliminary levy is adopted, the final levy cannot increase but can decrease, and there are still budget meetings and the final levy to be set in December. CM Tanner asked about the percentages. Flaherty said there is a point where the homestead credit does not apply to a homeowner for tax capacity. CM Tanner asked staff to display a Wright County tax statement to explain the City’s portion on the statement. Flaherty reviewed a 2025 tax statement. Mayor Stockamp said Otsego’s tax rate is lower than surrounding communities and inflation also impacts the City’s budget. CM Tanner noted the community is growing. CM Goede motioned to adopt Resolution 2025-46, adjusting the 2026 debt service property tax levy certified in the original bond resolution, seconded by Mayor Stockamp. MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING SEPTEMBER 22, 2025 Page 6 of 8 CM Dunlap said the debt increase is due to the Fire Department only and hiring of additional staff is due to the creation of the Fire Department; reserves are for the unexpected expenses and not to cut the levy, the increase is unjustifiable, and he will not support. CM Tanner asked about the proposed hires for IT and HR. Flaherty said both positions are needed to support all City operations and facilities and would also help support the fire department. CM Tanner asked about the average contracted increases. Flaherty said he did not have the numbers available, but the trend is increasing for many different reasons including the growth in Otsego. CM Tanner noted the three contracted communities needed to support their city’s first and Otsego needs to stabilize their expenses. CM Dunlap feels the fire department expenses have been out of control. Voting in favor: Stockamp and Goede. Voting against: Dunlap and Tanner. Motion failed 2-2. CM Tanner is more comfortable with a 15% preliminary levy increase and to continue working that down. Mayor Stockamp said the majority of the City Council agreed with the percentage presented, noting the Council would continue to evaluate the budget during the review process. CM Dunlap feels there is nothing else to cut in the budget, unless the fire debt service payment is not paid. Flaherty said the Resolution 2025-46 is for adjusting the debt service property tax levy and is separate from adopting the preliminary levy, is not for the fire station debt service, and noted that this resolution is decreasing the levy and should not be controversial . CM Tanner motioned to adopt Resolution 2025-46, adjusting the 2026 debt service property tax levy certified in the original bond resolution, seconded by Goede. CM Dunlap called for point of order, noting the motion failed and cannot be reintroduced. City Attorney Kendall said the motion can be brought again. Voting in favor: Stockamp, Goede, and Tanner. Voting against: Dunlap. Motion carried 3-1. CM Tanner would like to lower the levy from 19.3 percent and CM Dunlap would like it to be zero. Flaherty said staff prepared a resolution based on the majority of the City Council’s direction from the budget meeting. Mayor Stockamp said this is not the final budget, noting there are funds that can be transferred. CM Dunlap has concerns about using other funds, the objective is to get to a balanced budget. Flaherty said gambling funds are allowed to be used as proposed according to Minnesota State Statute, and the other local funds can be used at Council discretion according to the policy. Mayor Stockamp said this is the maximum that will be sent to property owners. MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING SEPTEMBER 22, 2025 Page 7 of 8 CM Tanner motioned to adopt Resolution 2025-47, adopting a preliminary property tax levy for taxes payable in 2026, seconded by CM Goede. Voting in favor: Stockamp, Goede, and Tanner. Voting against: Dunlap. Motion carried 3-1. Mayor Stockamp motioned to set the Truth in Taxation public hearing for 6:00 p.m., on December 2, 2025. The meeting will be held in the Council Chambers at 8899 Nashua Avenue NE, Otsego, MN 55330, seconded by CM Goede. Voting in favor: Stockamp, Dunlap, Goede, and Tanner. All in favor. Motion carried 4-0. 6. City Council Reports and Updates: A. Heritage Preservation Commission CM Tanner said the Commission prepared for and attended the Prairie Festival. B. Parks and Recreation Commission Liaison CM Tanner said the Commission had the grand reopening and ribbon cutting of Carrick’s Landing Park. C. Planning Commission Liaison CM Dunlap said the Commission reviewed applications for Kittredge Crossing, Stillwild and Queens Avenue. D. Public Safety Commission Liaison CM Goede said the Commission discussed the Prairie Festival, the interim hire for fire, and roadside clean-up. 6.1 Approve Pay Application #9 for the Fire & Emergency Services Facility Project. CM Dunlap opposes this action because the City receives services from the existing contract providers at a price point that is cost-effective for the taxpayers. CM Tanner motioned to approve Pay Application #9 in the amount of $1,431,938.69 for work completed on the Fire & Emergency Service Facility project, seconded by CM Goede. Voting in favor: Stockamp, Goede, and Tanner. Voting against: Dunlap. Motion carried 3-1. Mayor Stockamp thanked the staff for Prairie Festival and the grand reopening of Carrick’s Landing Park. 7. Staff Reports and Updates: 7.1 Consider Scheduling a Special City Council Meeting on October 13, 2025 – South Central WTP Project. Mayor Stockamp motioned to call for a special budget meeting on October 13, 2025, at 5:30 PM, seconded by CM Goede. All in favor. Motion carried 4-0. 7.2 Consider Scheduling a Special City Council Meeting on October 27, 2025 – Utility Budgets Review. Mayor Stockamp motioned to call for a special budget meeting on October 27, 2025, at 5:30 PM, seconded by CM Goede. All in favor. Motion carried 4-0 City Engineer Wagner provided development and City project updates. MINUTES OF THE CITY OF OTSEGO REGULAR CITY COUNCIL MEETING SEPTEMBER 22, 2025 Page 8 of 8 Sergeant Jason Oltmanns, Wright County Sheriff’s Office provided updates regarding traffic due to the construction and respective detours. City Council discussed their concerns with the lane closures on CSAH 19 during the Maciver and CR137 construction. Sergeant Oltmanns said they are aware of the conflict. 8. Adjourn. CM Goede motioned to adjourn at 9:28 PM, seconded by CM Tanner. All in favor. Motion carried 4-0. Minutes prepared by City Clerk, Audra Etzel. City of Otsego: _________________________________ Jessica Stockamp, Mayor ATTEST: ___________________________ Audra Etzel, City Clerk