Item 3.5 Releasing Securities for Boulder Pass Grading and Mineral Extraction
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Public Works City Engineer Wagner February 9, 2026
PRESENTER(s) REVIEWED BY: ITEM #:
Consent City Administrator/Finance Director Flaherty 3.5 – Release of Security
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
Is a strong organization that is committed to leading the community through innovative communication.
X Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and expectations in a
cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
Staff recommend the City Council approve release of securities regarding Boulder Pass Grading and Mineral Extraction.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
Fehn Companies has a promissory note with the City to ensure that they adhered to the grading permit, which included
mineral extraction for the area that is now Boulder Pass. One item the security may be used for was milling and
overlaying for that portion of Quaday Avenue designated as the allowed haul road. When the street area (Quaday
Avenue from the mine exit to CSAH 38) was reviewed, it was in no worse shape than any other section of Quaday and
was milled and overlaid in 2024 as part of the City’s regular maintenance schedule. The security was also intended that
when the gravel extraction was “trued up,” the security was there to ensure payment of the gravel extraction fee.
However, since the County requires a fee, the City legally cannot impose an additional fee.
Therefore, staff recommends release of all securities regarding Boulder Pass Grading and Mineral Extraction.
SUPPORTING DOCUMENTS ATTACHED:
• Resolution 2026-09
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Resolution 2026-09 releasing securities regarding Boulder Pass Grading and Mineral Extraction.
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund 701 – Development Escrow N/A
1
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2026-09
RELEASING SECURITIES REGARDING
BOULDER PASS GRADING AND MINERAL EXTRACTION
WHEREAS, Fehn Companies Incorporated has a promissory note with the City to ensure that they adhered to the grading
permit, which included mineral extraction for the area that is now Boulder Pass; and
WHEREAS, the City and Fehn Companies Incorporated entered into a Grading Agreement; and
WHEREAS, all requirements of the Grading Agreement have been met.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1. Releases all financial securities regarding Boulder Pass Grading and Mineral Extraction.
ADOPTED by the Otsego City Council this 9th day of February, 2026.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk