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TO: Mayoi Butler Mark F. Bernhardson, City Administrator Orono Council Members Frcat: Jeanne A. Mabusth, Zoning Administrator Date: December 4, 1986 Subject: #1039 William J. Ulrich, 1535 Bohn's Point Road - Conditional Use Permit/Variance - Resolution At the Council meeting of November 24, 1986, the DNR representatives from the Groundwater Division addressed your many concerns involving the use of the acquifer for residential heating and cooling systems and the discharge of the water used in this system into Lake Minnetonka. Your minutes of that meeting review their responses to your questions. Council asked that action on the application be tabled until members had an opportunity to consider the information presented to them for the first time. Staff was asked to contact br. Hanson regarding the matter of the Jischarge into the lake. In a phone conversation with staff, Hanson cited no problem with the system discharging into the lake. He questioned once again the City's effectiveness when the State grants all authority to the DNR in all matters involving use of groundwater and its discharge of waters into lakes or rivers. Council also asked if this application could be deemed a test case and initiate a moratorium to deter other such requests until the City is satisfied that these systems are harmless. Staff would remind Council that the DNR has been given all authority over matters dealing with groundwater use and discharge into lakes and rivers. The DNR may call for a moratorium if they deem a study for the purpose of amendment is necessary. If Council wised to study the matter of excavations within the U-75' setback area for the purpose of amending the code, we could le4ally call for a moratorium. Council may ask the DNR to study specific afpects of their permitting system. Staff has talked with the City Attorne} on this specific request of Council and she has concurred with staff's opi,iion:. Kathleen will be able to respond to any questions you may have on this matter. As this wi.'l be the last meetine, for this specific Council, staff seeks direction and asks that you consider the following options for action: a) Direct staff to advise the DNR that the City of Orono wishes to call for a public hearing, either to challenge such use of underground water resources or the discharge of gallons of water into the lake - or both. b) Staff has drafted a resolution approving the proposed geothermal system listing the necessary findings for your revie:, amendment and action. c) Denial of application if you feel this is a realistic option - Council would be denying the excavation within the lakeshore protected area and direct staff to prepare the necessary resolution.