10-14-2002 Council Packet - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION OCf Oily DATE: October 9,2002 ITEM NO: / S' Department Approval: Name RonMoorse Title City Administrator Administrator Reviewed:Agenda Section: City Administrator's Report Item Description: Highway i2 Right-of-Way Reconveyance and Pond Cost Allocation The Dahlstrom housing development proposal includes the reconveyance of a portion of Highway 12 right-of-way from Mn/DOT to the City to enable the construction of Kelley Parkway. Mn/DOT has placed a number of conditions on the reconveyance. All of these conditions arc acceptable to the City with the exception of the requirement that the City pay a S35.000 cost related to the stormwater ponds that are located adjacent to Highway 12. Mn/DOT has indicated that although the two ponds were required to handle stormwater from Highway 12, they are designed with a capacity sufficient to handle additional stormwater from several areas in Orono. in fact, Mn/DOT’s cost sharing analysis indicated that 80% of the stormwater entering the ponds would come from Orono while 20% would come from Highw ay 12, meaning Orono is responsible for paying 80% of the cost of the ponds. The City had not been aware of this cost sharing arrangement until it was brought up by Mn/DOT staff at the initial meeting regarding the right-of-way reconveyance. Subsequently, Mn/DOT has made this payment a condition of the reconveyance. Since staff learned of this condition, we have, with the assistance of the engineer for the Dahlstrom development, looked more closely at the design, drainage area, and functioning of the ponds. This analysis appears to show that the ponds were only designed to accommodate drainage at the level generated by undeveloped land. Based on this design, the ponds have not provided significant benefits to Orono or to the properties from which they receive stormwater drainage. Staffbelieves that Mn/DOT’s cost sharing information may be related to a much larger pond design that was originally intended to provide sufTicient capacity to serve all future development in the area bounded by Willow Drive, Old Crystal Bay Road, Highway 12 and County Road 6. This pond was substantially reduced in size late in the planning process for the Highway 12 Improvements Project because it was to be located in the middle of a prime commercial area at a time when it was not clear whether a large pond in that location would be compatible with the future development of the area. If the larger pond w'ould have been developed, it would have been reasonable for the City to pay a substantial portion of the cost and be reimbursed at the time of future development. How ever, the current ponds do not provide a benefit to the City or to current property owners or developers. In fact, as we have seen with the Dahlstrom proposal, the ponds are being redesigned and substantially expanded to serve the planned development. Staff is going to present this information to Mn/DOT in an effort to clarify the cost sharing issue. COUNCIL ACTION REQUESTED: No action required.