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HomeMy WebLinkAbout09-24-2018 Council Minutes MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 24,2018 7:00 o'clock p.m. ROLL CALL The Orono City Council met on the above-mentioned date with the following members present: Mayor Dennis Walsh, City Council Members Richard Crosby, III, Wendy Dankey, and Victoria Seals. Representing Staff were City Administrator Dustin Rief, Finance Director Ron Olson, Community Development Director Jeremy Barnhart, Public Works Director/City Engineer Adam Edwards, City Attorney Soren Mattick, and Recorder Jackie Young. Mayor Walsh called the meeting to order at 7:00 p.m., followed by the Pledge of Allegiance. APPROVAL OF AGENDA CONSENT AGENDA 1. CITY COUNCIL MEETING MINUTES OF SEPTEMBER 10,2018 2. CLAIMSBILLS 3. APPROVAL OF MN DEPARTMENT OF PUBLIC SAFETY GRANT RESOLUTION NO. 6899 4. BIG ISLAND ARCHAEOLOGICAL SURVEY AND GRANT 5. ENVIRONMENTAL PROTECTION AGENCY(EPA)CONSENT AGREEMENT 6. REVISION TO POLICE CHIEF JOB DESCRIPTION,POSITION POINTING AND PAY GRADE Crosby moved,Dankey seconded,to approve the Consent Agenda as submitted. VOTE: Ayes 4, Nays 0. Crosby moved,Dankey seconded,to add Item No. 11,Reappointment of Mark Kroll as the Orono Representative to the Lake Minnetonka Conservation District. VOTE: Ayes 3,Nays 1, Seals opposed. PUBLIC COMMENTS None PUBLIC HEARING 7. LA18-000080—800 NORTH ARM,CITY OF ORONO ON BEHALF OF JAMES FRANZEL,EASEMENT VACATION RESOLUTION NO. 6900 Barnhart stated this a follow-up to the final plat the City Council approved in August for the Franzel Addition,a two-lot subdivision of property located at 800 North Arm. There is a lift station on either side of North Arm as well as an easement. The easement was established in 2010 providing access to a lift station on the property. However, due to steep slopes in the area, over the years the Public Works staff Page 1 of 5 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 24,2018 7:00 o'clock p.m. 7. LA18-000080—800 NORTH ARM, CITY OF ORONO ON BEHALF OF JAMES FRANZEL, EASEMENT VACATION RESOLUTION NO. 6900—Continued has not used this easement. A new easement was negotiated during the review of the subdivision to protect a useable actual access route to the lift station. The easement protecting the sanitary sewer infrastructure is correctly shown on the plat. The original access easement is proposed to be vacated because, while in place, it restricts private use of that portion of the property. A new easement, with the corrected legal description,has been prepared. Staff recommends the Council open a public hearing, receive any public comment, and then approve the easement vacation and the replacement easement. Mayor Walsh opened the public hearing at 7:04 p.m. There were no public comments regarding this application. Mayor Walsh closed the public hearing at 7:04 p.m. Dankey moved, Crosby seconded,to adopt RESOLUTION NO. 6899,a Resolution vacating an Access Easement Agreement within Franzel Addition. VOTE: Ayes 4,Nays 0. FINANCE DIRECTOR REPORT 8. ADOPT PRELIMINARY 2019 TAX LEVY RESOLUTION 6901 9. ADOPT PRELIMINARY 2019 BUDGET RESOLUTION 6902 Olson noted the preliminary tax levy needs to be set tonight by state law. The final levy and budget will be adopted on December 10, 2018, and public input will be allowed prior to the adoption. Revenues are increasing by$382,970 but only$34,950 or .8 percent is due to the property tax levy. One of the bigger increases in the budget was due to some administrative charges to more accurately reflect city staff time spent administering the Enterprise Funds. Total investment revenue will be increasing by $41,000 due to higher interest rates. As it relates to Orono's General Fund budget, approximately 51 percent is supported by property taxes and 29 percent is derived from public safety charges. Olson noted the 51 percent is a very low amount of the General Fund budget,especially when compared to other nearby cities. For example, in 2017 the City of Medina's General Fund budget was supported by over 70 percent in property taxes. Olson stated it is very advantageous to support the General Fund through other revenue streams since it saves the taxpayers money. The City's overall expenditures are increasing$382,969 or 4.69 percent. The City was able to accommodate that increase with only an 8 percent increase in the tax levy. Olson noted Staff and the City Council have been working on the budget since June, and if anyone in the audience has questions,they can call him. The City's overall expenditure budget consists of 57 percent for police and fire and 8 percent for building and zoning. Those two together are reported to the State as public safety, so 67 percent of the budget is Page 2 of 5 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 24,2018 7:00 o'clock p.m. 8. ADOPT PRELIMINARY 2019 TAX LEVY RESOLUTION 6901 9. ADOPT PRELIMINARY 2019 BUDGET RESOLUTION 6902—Continued focused on public safety. As it relates to other expenditures,the mayor and council fund is being decreased by$51,000 and administration is increasing by$109,000. Those changes reflect some shifts in a few of the items that have historically been budgeted to other departments. The mayor and council portion of the budget is going down $51,000 because it was determined that the LMCD fee would be better paid through the Stormwater fees rather than the General Fund. The police department is increasing by$153,000 but that consists of a 2 percent wage increase. Otherwise most line items have stayed pretty much the same. The 2019 preliminary tax levy and budget is one of the most important items to be approved by the City Council. Once it is adopted, it cannot be increased but it can be decreased before final adoption in December. Olson noted approximately$4,380,000 has been allocated to the General Fund and$544,450 for the Pavement Management levy. Olson noted this City Council has made it a goal to find a funding source for road projects,which is the purpose of the levy. As it relates to debt service on bonds,the City's total obligation is $711,000 per year and it will stay at that level for the next four years. Olson displayed a pie chart illustrating the breakdown of a resident's property tax dollars for Orono and other cities. Most cities average around 29 percent, schools at 29 percent, and the county at 29 percent. Orono's city tax share is only about 15 percent of someone's property tax bill,with 37 percent going to the schools and 40 percent to Hennepin County. Olson noted Orono's tax rate has remained relatively the same over the past number of years. Based on the latest information from the County,the City's tax capacity rate will decrease from 16.555 to 16.521 percent. Walsh stated when the City's tax capacity level stays the same or goes down and the value of your house stays the same, a person's city taxes will stay the same. Walsh noted Orono has not raised taxes for two years in a row. In addition,the City has also been paying off its debt at approximately$1 million a year. Over the next four years,the City's bond total will go down$380,000 in four years so that money will be able to be allocated elsewhere. Walsh stated in his view the Council has done a great job at budgeting its money but yet, at the same time, getting a number of road projects done. Seals requested police and fire be separated in the future on the chart since the fire department only consists of 10 percent versus the police department at 90 percent. Crosby moved,Dankey seconded,to adopt RESOLUTION NO. 6901,a Resolution Adopting the Preliminary 2018 Tax Levy Collectible in 2019,and to adopt RESOLUTION NO. 6902,a Resolution Adopting the Preliminary General Fund Budget for 2019. VOTE: Ayes 4,Nays 0. MAYOR/COUNCIL REPORT Crosby stated he is pleased the City will be reappointing Mark Kroll to the LMCD. Crosby stated the important thing for people around the lake and community to know is that the City of Orono is very concerned about the status of Lake Minnetonka and that they want to take the lead in cleaning up Lake Page 3 of 5 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 24,2018 7:00 o'clock p.m. MAYOR/COUNCIL REPORT—Continued Minnetonka. The reappointment is an important first step in getting some of these things done and that Orono is looking for cooperation from residents, from other cities,and from the LMCD to get things accomplished. Dankey reported she attended the event at the fire station introducing the new fire truck and that it was exciting to be a part of that. Walsh reported he attended the Planning Commission meeting on September 17 and that they are doing a great job at reviewing the applications. Walsh commended the Orono Police Department for winning the first canoe row-off against the Long Lake Fire Department at Birch's this past Sunday. CITY ADMINISTRATOR'S REPORT Rief stated Staff is in the process of finalizing the budget work on the enterprise funds and that the City is starting to complete various road projects. The Park Commission has started planning for the parks in 2019 so the City can research and apply for grants. Rief stated the City should be on track to complete the various road projects this fall. Walsh noted Old Crystal Bay Road still needs its final coat of asphalt but that will hopefully be completed over MEA weekend provided the weather cooperates. Rief stated the trails should also be put in sometime this week along Old Crystal Bay Road. Currently in front of the middle school there is just a gravel trail, which will be completed in the near future. 10. DISCONTINUATION OF THE LMCD/EURASIAN WATER MILFOIL HARVESTING PROGRAM—RESOLUTION NO. 6903 Rief noted this resolution came about as a result of some conversations over the past few weeks regarding the LMCD. Walsh stated the resolution basically originated from the Lake Minnetonka Association and the City Council is hoping to partner with them in the future. Walsh stated this is a very important first step in addressing some of the issues. Dankey moved,Seals seconded,to adopt RESOLUTION NO.6903,a Resolution to Request the Lake Minnetonka Conservation District Discontinue the Eurasian Water Milfoil Harvesting Program. VOTE: Ayes 4, Nays 0. Page 4 of 5 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 24,2018 7:00 o'clock p.m. 11. REAPPOINTMENT OF MARK KROLL TO THE LMCD Crosby moved,Dankey seconded,to reappoint Mark Kroll to the Lake Minnetonka Conservation District as the Orono representative. Seals stated she will be opposing the motion because she feels the LMCD needs a total overall and not because she does not support Mark Kroll. VOTE: Ayes 3,Nays 1, Seals Opposed. CITY ATTORNEY'S REPORT None ADJOURNMENT Crosby moved,Dankey seconded, to adjourn the Orono City Council meeting at 7:26 p.m. VOTE: Ayes 4,Nays 0. ATTE : Anna Carlson, City Clerk De nis Walsh, Mayor Page 5 of 5