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AGENDA ITEM Item No.: 15 Date: July 24, 2017 Item Description: Carman Bay Lake Improvement District Public Hearing Presenter: Doug Reeder Agenda Presentations Interim City Administrator Section: 1. Purpose To hold a public hearing for the establishment of the Carman Bay Lake Improvement District and consider the establishment of the Carman Bay Lake Improvement District. 2. Background. Following a presentation by Orono resident on Carman Bay at the November 14, 2016 City Council meeting, the City Council passed a motion directing Carman Bay residents to move forward with the Lake Improvement District petition and bring it back to the City Council for final approval. The District, if established, will allow the funding of improvements to the lake in Carman Bay through the levying of a tax on the abutting residents, grants and any municipal contribution that was made available. There is only one Lake Improvement District now established on Lake Minnetonka and that is on St Albans Bay in Greenwood and Excelsior. It is possible that other lake improvement districts on other bays in Orono could be established if petitioned by the adjoining property owners. At the City Council meeting on June 12, 2017 the City Council set a public hearing on the establishment of the Carman Bay Lake Improvement District for July 24, 2017. The notice of the hearing was published in the newspaper twice and each property owner has been mailed a notification of this public hearing. A petition has been received for the establishment of the Carman Bay Lake Improvement District signed by 82 property owners on Carman Bay and the signatures have been certified by the Interim City Administrator on June 28, 2017. The state law concerning Lake Improvement Districts requires the City Council to hold a public hearing within 30 days of the certification of a petition for the establishment of a Lake Improvement District which is signed by a majority of the property owners in the district. The petition for the Carman Bay Lake Improvement District is signed by 82 property owners out of a total of 113 property owners. As required by state law the Minnesota Department of Natural Resources has reviewed the request to establish the Carman Bay Lake Improvement District and has approved the proposed boundaries identified in the resolution and has certified that the information provided meets the requirements of lake improvement district statutes and rules. (See Exhibit F) If the City Council establishes a Lake Improvement District it does not become effective until 30 days after the resolution is published. State law provides that if the City Council establishes a Lake Improvement District and if a petition is received from at least 26 percent of the property owners within the lake improvement district, that the establishment of the district would be stayed until a referendum is held allowing all affected property owners to vote on the establishment of the lake improvement district. The referendum must be held in the following July or August. If the District is established by the City Council, at any time in the future a petition signed by at least a majority of the property owners will require the City Council to hold a public hearing to consider the termination of the District. The purpose of this public hearing is to receive comments from property owners on Carman Bay concerning the establishment of the Carman Bay Lake Improvement District. After opening the public hearing it is recommended that the City Council allow Steve Nielsen, a representative of the Carman Bay Volunteer Committee, to give a report from the Committee concerning the establishment of the Carman Bay Lake Improvement District. Prepared By: Nz Reviewed By: Nz Approved By: W,