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HomeMy WebLinkAbout12-10-2018 Council Minutes MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday,December 10,2018 6:30 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,City Planners Melanie Curtis and Laura Oakden,Public Works Director/City Engineer Adam Edwards,City Attorney Soren Mattick,and Recorder Jackie Young. Mayor Walsh called the meeting to order at 6:30 p.m., followed by the Pledge of Allegiance. TRUTH-IN-TAXATION PUBLIC HEARING—6:30 P.M. 1. 2019 BUDGET HEARING a. 2019 BUDGET INFORMATION b. ADOPT FINAL 2018 LEVY COLLECTIBLE IN 2019 c. ADOPT FINAL 2019 GENERAL FUND BUDGET d. ADOPT THE 2019 SPECIAL REVENUE FUNDS BUDGETS Ron Olson,Finance Director, stated tonight is the conclusion of the budget process undertaken by the City approximately six months ago. Olson noted tonight's discussion will be centered on the 2019 budget and levy and that property values will be discussed in the spring. Over the summer a draft budget was prepared and reviewed by the Council. In September,the preliminary budget and tax levy was publicly presented at the August 27 meeting and adopted at the September 24 Council meeting. Tonight's public hearing is the final step prior to adoption of the budget and t�levy for 2019. Each year the Hennepin County assessor provides an annual calculation of the City's tax capacity based on the annual property evaluation for commercial, industrial, and residential properties. The tax rate for residential properties is 1 percent of the first$500,000 of value and 1.25 percent of anything greater than $500,000 of value. The assessor then takes those numbers to arrive at the tax capacity of an individual property. Once the tax capacity of each property is calculated,the assessor adds all those numbers together,when then becomes the City's tax capacity. The levy is then divided by the City's tax capacity to arrive at the City's taY capacity rate. Olson noted the only piece of the property taaces that the Council has any influence on is the property tax levy. If the levy goes up,overall taaces in the city will go up and vice versa. The property ta�c levy that is being reviewed tonight to fund the 2019 budget is$5,635,450. The City's total tax capacity is$34,407,568, for a tax capacity rate of 16378 percent,which is a slight decrease from last year. Last year the City's t�capacity rate was 16.55 percent. Property t�es are calculated by taking the property's net t�capacity times the City's tax capacity rate, which will determine the net city tax on someone's property. If a property is valued at$963,000,one percent of the first$500,000 gives you$10,787.50,which is that property's t�capacity. That number is then multiplied by the 16.378 percent to arrive at$1,766.78 for the City's taY. Olson noted Hennepin County's property tax is proposed at$4,688.35 for that same property,the total tax for the school is $4,754.24,and of the average property tax bill,a very small portion is the actual city t�. Olson noted Page 1 of 19 MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday,December 10,2018 6:30 o'clock p.m. Orono is very low in the realm of averages across the state with the surrounding cities having higher rates. The Hennepin County average is around 40 percent,which simply means if Orono's property tax rate was at the Hennepin County average,people would pay three times as much in city taxes. In comparison to the metro area,the average residential segment is 79 percent and 18 percent commercial/industrial, but Orono's tax base consists of 89 percent residential properties and 2 percent commercial/industrial. The reason that is of importance is that commercial and industrial pay a higher rate than residential. Olson noted of someone's total tax bill,the City of Orono is at 15 percent,the county and school come in at 39 percent,and the state and other is around 8 percent of a property tax bill. As it relates to the property tax rate,Orono is about half of what the metro average is. As it relates to the budget,the General Fund operating levy is$4,083,000,with the second largest piece being$544,450 for pavement management to help maintain the roads. The Orono City Council has made it a goal to get long-term funding for the city's roads,and in approximately three to four years,the City's road funding will be solved. The City currently has three sets of outstanding bonds for its debt levy. Each year a portion of the property tax levy goes to pay those outstanding bonds. In 2019 the City's total debt levy will be$711,000,and it will stay that way for three more years before it drops off significantly, which is a positive sign for the future. The City's net tax capacity,based on the values and the formulas from the County, increased 4.7percent but the City's total levy is only increasing by 3.59 percent. Olson noted some cities levy a minimum of what the rate increase is but Orono has decreased theirs. Orono's local tax capacity rate for 2018 is 16.553, and is projected to be 16378 percent for 2019,which is a decrease of 1.74 percent. As a result,if someone's property does not change in value in 2019,they would actually see a decrease in t�es. On a$250,000 home, it would decrease around$4, and on a$2 million house, it would decrease by$42 for the year. If someone's property value increased by about 5 percent, on a$250,000 home,that home's property taxes would increase by$18 per year,and on a$2 million home,their property taxes would increase by$162. If your home decreased in value,your property t�es would also decrease accordingly. Olson noted home values do affect someone's taac bill but only how that individual value changes in relation to the rest of the City. In Orono,the biggest portion of someone's city taYes goes into the General Fund. Approximately$4.39 million will go into the General Fund,which is an increase of.8 percent. Total revenue is projected to increase by$383,880. Some of that increase has to do with an increase in building permits as well as anticipated higher gants from the state. The biggest portion of the increase is under General Government Services. Because a lot of work is done by people at city hall that has not been charged directly to the utility funds, Staff has been trying to accurately capture those costs associated with water and sewer and in 2019,all costs associated with utility funds are now reflected in the budget. As it relates to the overall budget,property taxes consist of 51 percent of the City's budget. Orono receives very little state aid money with the exception of a few grants given to the police department. Part of the reason Orono is able to keep it that low is because Orono receives public safety service fees,which comprise 29 percent of the budget. Those fees are derived from the police service contracts,which in turn allows the City to fund its police department and save costs for all four cities by consolidating police services. Page 2 of 19 MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday,December 10,2018 6:30 o'clock p.m. As it relates to the General Fund expenditures,the 2019 budget is projected at$8,577,280,which is an increase of$383,879 over the 2018 budget. This increase is the result of a$95,000 increase in Personal Services and a$100,000 increase in Contingency. The increase in Personal Services is due to step increases and a COLA increase of 2.5 percent for union and non-union employees. The fire department is at 5 percent of the budget and building and zoning is at 8 percent of the budget. Olson stated cities and governments in general are service organizations, and as a result,the number one cost to the city is personnel services. Olson stated if a city wants to make significant decreases in a city budget,it typically has to come out of personnel. The City Council will also be adopting special revenue funds tonight that have a dedicated revenue source. The special revenue funds that budgets are adopted for are the Park Fund,the Drug Forfeiture Fund, and the TIF Fund. Special revenue funds by definition have a primary source of revenue that is dedicated for a specific purpose. The Park Fund receives Park Dedication fees collected from developers. By state law,those funds must be used far parkland acquisition and development. The Drug Forfeiture Fund receives its primary funding from the Police Department's drug and alcohol enforcement activities. The funds must be used for drug and alcohol related activities. The TIF Fund is used to account for revenues related to the Orono Woods Senior Housing Development. The 20191evy for debt service is$711,000. This levy is used to pay the debt service on the City's outstanding bonds. Under the Enterprise Funds,the Water, Sewer, Stormwater and Recycling Funds are designed to account for the business type activities of the City. These funds do not receive any property tax revenue. The goal for the Enterprise funds is to be fully funded by rates without depending on special assessments for infrastructure improvements. The utility rates are approved annually as part of the fee schedule. The utility rate increases being recommended are 11 percent for water,4 percent for sewer, 10 percent for stormwater,and 11 percent for recycling. With the exception of the water rate increase,the utility rates will be approved tonight as part of the 2019 Fee Schedule. Olson stated the 2019 budget information will be available on the City's website or people may call him at call hall. Staff recommends approval of the 2019 General Fund budget,the 2019 property tax levy,the 2019 special revenue fund budgets, and the 2019 enterprise fund budgets. Walsh noted the City is also making sure that the City's utility funds stand on their own and are fully funded in addition to funding road improvements. Seals suggested the graphs be sent out over social media as well as being on the City's website. Olson stated Staff has been working on a citizens' budget. The idea behind that budget is to take all this information and boil it down to key points, which will also be on the website and in the next city newsletter. Mayor Walsh opened the public hearing at 6:55 p.m. There were no public comments. Page 3 of 19 MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday,December 10,2018 6:30 o'clock p.m. Mayor Walsh closed the public hearing at 6:55 p.m. Seals moved,Crosby seconded,to adopt RESOLUTION NO. 6919,a Resolution Adopting the 2019 Property Taz Levy; to adopt RESOLUTION NO.6920,a Resolution Adopting the Fina12019 General Fund Budget; to adopt RESOLUTION NO. 6922,a Resolution Adopting the 2019 Special Revenue Fund Budgets; and to adopt RESOLUTION NO. 6921,a Resolution Adopting the 2019 Enterprise Fund Budgets. VOTE: Ayes 4,Nays 0. APPROVAL OF AGENDA CONSENT AGENDA 2. CITY COUNCIL MEETING MINUTES OF NOVEMBER 26,2018 3. CITY COUNCIL WORK SESSION MINUTES OF NOVEMBER 26,2018 4. CLAIMSBILLS 5. APPROVE 2018 INTERFUND AND TRANSFERS 6. ADOPT 2019 FEE SCHEDULE 7. ADOPT 2019 CAPITAL IMPROVEMENT PLAN 8. CLOSE FUND 318—2005 GO HRA PUBLIC FACILITIES BOND-RESOLUTION NO. 6923 9. CLOSE FUND 320—2008 STREET RECONSTRUCTION-RESOLUTION NO. 6924 10. REDUCE DEBT LEVY REQUIREMENT SERIES 2014A-RESOLUTION NO. 6925 11. REDUCE DEBT LEVY REQUIREMENT SERIES 2016 BONDS-RESOLUTION NO. 6926 12. AUTHORIZATION TO DISBURSE CLAIMS 13. 2019 NON-UNION COMPENSATION-RESOLUTION NO.6927 14. APPROVE NON-EMPLOYEE REIMBURSEMENT 15. DESIGNATING POLLING LOCATIONS-RESOLUTION NO.6928 16. LIQUOR VIOLATION—NAVARRE LIQUORS 17. ORDINANCE AMENDMENT—MAYOR'S TERM OF OFFICE This item was removed from the Consent Agenda. Page 4 of 19 MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday,December 10,2018 6:30 o'clock p.m. 18. 2019 PUBLIC WORKS PLAN 19. PERSONNEL POLICY AMENDMENT 20. ACCEPT RESIGNATION OF OFFICER AMY SWANSON 21. REQUEST TO HIRE FULL-TIME POLICE OFFICER 22. LA18-000014 LAKE WEST DEVELOPMENT,3570 AND 3600 IVY PLACE— RESOLUTION AMENDMENT—RESOLUTION 6929 23. LA18-000057 CITY OF ORONO,TEXT AMENDMENT: ACCESSORY BUILDINGS AND STRUCTURE SETBACKS—ORDINANCE NO.222,THIRD SERIES AND SUMMARY ORDINANCE NO.223,THIRD SERIES 29. LA18-000084 CITY OF ORONO,TEXT AMENDMENT: LAND ALTERATIONS CHAPTER 78—ORDINANCE NO.219,THIRD SERIES AND LAND ALTERATIONS CHAPTER 78—ORDINANCE NO.220,THIRD SERIES AND SUMMARY ORDINANCE NO.221,THIRD SERIES Crosby moved,Seals seconded,to approve the Consent Agenda as revised,with the removal of Item No. 17 and the addition of Item No.29. VOTE: Ayes 4,Nays 0. PUBLIC COMMENTS Richie Anderson,3205 Crystal Bay Road,distributed a letter from Keegan Lungley,the DNR specialist who is involved with AIS and weed harvesting. Page 2 is a letter from Gabriel Jabbour to Lungley, and the third page is a chart that Keegan had drawn up to show the effectiveness of inechanical harvesting and herbicide use. Anderson noted the LMCD is going to discuss AIS and harvesting at their next meeting. Anderson noted separate letters have been written to the LMCD by himself and Gabriel Jabbour talking about the harvesting program. At the present time the LMCD does not appear to be changing its stance on milfoil harvesting and it will be business as usual in 2019. Anderson stated Council Member Seals helped bring this issue to the forefront. At the last LMCD meeting,the Orono representative recommended the LMCD adopt the plan that the LMA has adopted but the discussion was tabled. Anderson indicated he has attended a few meetings after those meetings the LMCD maintains its business as usual,but this letter may help change things. Anderson stated he wants to see if the City Council is still interesting in pursuing this. At the last meeting Orono's representative discussed having the harvesting program shut down for one year and the fact that Orono wants to opt out of the weed harvesting program,which is a good idea. Keegan Lungley from the DNR notes in his letter that the LMCD had a management plan that clearly outlines the use of harvesting and herbicide throughout Lake Minnetonka. Anderson stated the LMCD does not want anything to do with the discussion when you bring up herbicides and they still believe there is nothing wrong with the weed harvesting program. The letter also talks about how the multiple Page 5 of 19 MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday,December 10,2018 6:30 o'clock p.m. government agencies should be coordinated by one person. Anderson stated he strongly agrees with that and that he wants to see where the City Council is at with this issue. Anderson stated he knows the City Council has an interest in this and that he would like to keep encouraging the Council to adopt some of the items that are outlined in the letters. Walsh stated he knows the meeting is Wednesday and that he would like to discuss this issue further with Mr. Anderson. Walsh stated in his view the LMCD knows where Orono stands on this issue but that he would like to discuss it further with Mr.Anderson tomorrow. 17. ORDINANCE AMENDMENT—MAYOR'S TERM OF OFFICE,ORDINANCE NO.218, THIRD SERIES Walsh noted this item relates to changing the length of term for the mayor. Currently the mayor is elected every two years and that the City Council is looking to change that to every four years. The change would make it consistent with the election of the city council members,who have four-year terms, and would occur during the presidential election year. Mayor Walsh asked if there is any public comment regarding this item. Megan Dayton, County Road 6,Long Lake, stated her only concern is that it does not feel very transparent by putting it on the Consent Agenda and giving everyone three days to know about it. Dayton stated in her opinion it would be a good idea to invite public comment on the change. Walsh stated he appreciates her thoughts. Dankey stated she has talked to other people and most people are surprised that it is only a two-year term. Seals stated the key thing is that this change will not go into effect until after the next election. From that sense,there will be two years to figure out who the residents would like to choose. Crosby stated the change would help provide more continuity since by the time the Mayor's agenda is implemented,the two years are up. Crosby indicated he is in favor of it,especially since most people thought it was a four-year term. Seals moved,Crosby seconded,to adopt ORDINANCE NO.218,THIRD SERIES an Ordinance Amending Section 2-36 of the Orono City Code Concerning the Mayor's Term of Office. VOTE: Ayes 4,Nays 0. PRESENTATION 24. RESOLUTION OF APPRECIATION FOR WENDY DANKEY Walsh presented a resolution of appreciation,plaque, and picture to Wendy Dankey for her two years of service on the Orono City Council. Page 6 of 19 MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday,December 10,2018 6:30 o'clock p.m. Seals moved,Crosby seconded,to adopt RESOLUTION NO.6930,a Resolution of Appreciation to Wendy Dankey for Distinguished Service as a Member of the Orono City Council. VOTE: Ayes 4, Nays 0. 25. STEVE TALLEN—CITY PROSECUTOR Steve Tallen stated he would like to update the City Council on what has occurred over the past couple of years and to answer any questions they may have. Tallen noted the majority of what he does is prosecute misdemeanor offenses,theft cases that are less than$1,000,and domestic assaults. Tallen stated the other item he deals with are code violations and that he has worked with Staff on quite a few things over the years. Tallen stated in his view they have had relatively good resolution of the matters and have been fairly successful in negotiating settlements,which results in fixing the problem rather than just punishing the person. Tallen stated of the ones he has dealt with, most recently was the one concerning a rental property. That person has now obtained a license and paid$1,000 in costs. The maximum penalty had it proceeded to prosecution would have been a$1,000 fine. Tallen stated he tries very hard to resolve them and fix the problem since that is the real issue. Tallen stated in his view he also has a good working relationship with the police department. Over the past couple of years nothing really outstanding or remazkable has happened and there have not been any appeals. Tallen indicated he is here to answer any questions. Walsh noted it has been a year since Mr. Tallen has been hired and that the City has the philosophy that the rules have to be followed,and if the rules are unfair or bad,the City will change them. Walsh noted sometimes the City does not find out there is a problem with an ordinance until an issue comes up. Walsh stated in his view the Council is happy overall with Mr. Tallen's services. The City Council took no formal action on this item. PUBLIC HEARING 26. LA18-000096 ISD 278,685 OLD CRYSTAL BAY ROAD,VARIANCE,RESOLUTION NO.6931 Walsh noted there is no Planning Commission meeting this month and that the City Council will need to pass a motion to waive the review by the Planning Commission. Walsh moved, Crosby seconded,to waive review by the Planning Commission of Application No. LA18-000096,ISD 278,685 Old Crystal Bay Road. VOTE: Ayes 4,Nays 0. Barnhart stated the City has received an application from the School District to replace their existing electronic sign. A variance is required is because the school is proposing a small structure above the existing structure that says Orono Schools and includes the logo or crest of the school district. That improvement increases the height and area above what the 2005 variance permits. Page 7 of 19 MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday,December 10,2018 6:30 o'clock p.m. Staff's memo included an analysis of the practical difficulties. Basically the issue is the arc or crest. The entire sign consists of approximately 1,124.19 square feet of sign area. The crest and the arc will add a total of 66 square feet of sign area. The City Council just recently reviewed the sign ordinance and this zoning district allows an 8-foot tall sign with 32 feet in area. A variance was previously approved for a 9.2 foot sign with 56 square feet of area. The school is asking for a 13-foot tall sign and 124 total square feet. Barnhart noted while it may seem a lot,there is quite a bit of open space under the arc that has to be included in the calculation. Barnhart requested the City Council direct Staff to draft either an approval or denial resolution. Another option is the Council can decide to have the Planning Commission review the application. From an impact to the neighborhood standpoint,the sign for Orono Schools and the crest is relatively minor. The dentist office across the street is approximately the same height and does not appear to be too massive or high. Barnhart displayed a picture of the existing sign. Crosby asked if the new sign will be located in the same location. Barnhart indicated it will be and that the main difference will be the arc or crest. Mayor Walsh opened the public hearing at 7:28 p.m. There were no public comments regarding this application. Mayor Walsh closed the public hearing at 7:28 p.m. Dankey stated the new sign will be more appealing. Crosby stated the sign will be more visibly appealing and will be easier to read from a distance. Crosby moved,Dankey seconded,to adopt RESOLUTION NO. 6931,A Resolution Approving a variance from Municipal Zoning Code Section 78-1478 for ISD 278,685 Old Crystal Bay Road. VOTE: Ayes 4,Nays 0. 27. LA18-000092 EASEMENT VACATION,RESOLUTION NO.6932 Paul Vogstrom,Applicant,was present. Curtis stated the purpose of this item is to hold a public hearing to consider vacation of drainage and utility easements which are being replaced with new easements on the plat of Pence Lane Addition. On November 26,the City Council approved the final plat for Pence Lane Addition,a two-lot subdivision of property at 2709 Walters Port Lane. There are existing drainage and utility easements which were dedicated with the plat of Carman Heights in 1982 and in the plat of Walters Port in 1961. With the Pence Lane Addition plat,these easements ha�e been expanded in the area of the wetland and reduced from 20 feet to 10 feet on the southern portion of the east lot line of Lot 2 to be consistent with Page 8 of 19 MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday,December 10,2018 6:30 o'clock p.m. the current requirements. No drainage improvements located in the western ten feet of the existing perimeter easement are to be vacated. The easement vacation will be recorded at the same time/prior to the recording of the plat establishing the replacement easements. Staff recommends approval. The City Council should open a public hearing to receive any public comments and then either approve or deny the easement vacation. Mayor Walsh opened the public hearing at 7:30 p.m. There were no public comments regarding this item. Mayor Walsh closed the public hearing at'7:30 p.m. Crosby asked what the vacation of the easement is accomplishing. Curtis indicated it will clean up the redundant easements and the new easement will be much larger. Crosby stated he has a concern with the one property that drains to that area,which was done back in the 1960s, and that he has always felt that someone needs to be responsible for channeling the water in a certain direction, preferably towards the street so it does not affect anyone. Crosby stated if anything happens there, it will affect three properties on Walters Port. Walsh noted any drainage plan that is approved nowadays has to demonstrate that the property is handling their runoff. Seals moved,Dankey seconded,to adopt RESOLUTION NO.6932,a Resolution Vacating Drainage and Utility Easements Within Carman Bay Heights and Walters Port,File No. LA18-000092. VOTE: Ayes 4,Nays 0. PLANNING DEPARTMENT REPORT—PLANNING REPRESENTATIVE JOHN THIESSE 28. LA18-000044—CITY OF ORONO,COMPREHENSIVE PLAN,RESOLUTION NO.6933 Barnhart stated tonight is the scheduled public hearing for the 2040 Comprehensive Plan Update. The City has been working on this update since March of 2017. Last month the Planning Commission held a public hearing and voted to recommend approval of the 2040 Comprehensive Plan. Every city within the 7-county metropolitan area has to update their Comprehensive Plan every ten years and this one is due December 31,2018. The last update was completed in 2008. -. Each amendment must include specific topics that are mandated by state statute,and those include housing, land use,transportation, sanitary sewer and water. The City's Comprehensive Plan Update does include those topics. In addition,the Metropolitan Council provides projected numbers relating to Orono's anticipated population, household and employment growth over the next 10 to 20 years so the City can plan for that type of growth. Even though the City has to plan for that type of growth,that does not mean it will occur,nor does the City have to approve every project that comes before them. Barnhart Page 9 of 19 MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday,December 10,2018 6:30 o'clock p.m. stated this is the first hurdle that needs to be crossed in terms of a development proposal and some proposals have triggered an amendment to the Comprehensive Plan. A committee was established by the City Council in March of 2017 and included 13 members. The committee met monthly and guided and advised Staff on changes to the plan. The Committee operated under three primary goals: 1. Retain rural character and natural resource protection policies established in previous plans dating back to the 1970s. 2. Satisfy Metropolitan Council requirements. 3. Improve the readability of the document. The Plan retains the general development and land and water protection philosophies established by earlier plans. Preservation of rural character and preservation of water quality was very important to the committee. In April,following a number of committee meetings,the draft Comprehensive Plan was published on the City's website and was also sent to surrounding cities for their review and comment. At the end of October, a second open house was held to obtain further input from the residents. A number of comments and questions were received during that period. A number of the changes were based on formatting changes and updated data from sources,including the state and the Metropolitan Council. The comments received during the public comment period have been incorporated into an exhibit to the document or otherwise incorporated into the plan. Barnhart noted the City's housing goals in the 2040 Comprehensive Plan have remained basically the same from the previous plan,and the table included in Staff's report reflects Orono's population, household and employment forecasts from 1970 through 2040. The City is required to provide opportunity for 154 units of affordable housing making the average or below the average median income. Currently there is around 639 units of that type in Orono. The City provides for those opportunities by guiding different sections of the City for higher density. Barnhart noted the following changes are included in the 2040 Comprehensive Plan but that it is not an all-inclusive list: 1. Expansion of MLJSA. The Plan proposes a single expansion of the MUSA boundary to serve vacant property on the north end of Wildhurst while preserving steep slopes and significant tree stands in the area. This is a change from the draft proposed in April. 2. Land Use. To meet the growth projections of the Metropolitan Council,the Land Use Map was updated. The map reflects a revised listing of land use categories. These ten categories are used throughout the document per Metropolitan Council requirements and include seven residential, two commercial/industrial,and a park/open space land use. Island residential is a new land use and is employed for the residences on Big Island and Deering Island. The plan shows low density residential as the predominant land use south of Fox Street. An earlier version of the land use map showed portions of these area as medium density residential,recognizing the Page 10 of 19 MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday,December 10,2018 6:30 o'clock p.m. development patterns established. Based on feedback,the Council directed these areas, including Crystal Bay,Casco Point,Fagerness Point,and Navarre, change back to low density residential. Seals stated she has received a lot of questions regarding the definition of land use versus zoning from residents. The yellow urban low density says .5 to 2.2 units per acre but it is still a zoning area for one house per every two acres. Residents read it as .5 to 2 units per acre. Seals stated in her view the City needs to be better at defining that because the residents find it confusing. Barnhart stated he can understand the confusion. When a land use plan is developed,for all the districts that residential is allowed,the City has to provide a range per the requirements of the Metropolitan Council,which is where the .5 to 2.2 units per acre comes from. The next step with all of the requirements in the Comprehensive Plan is that Orono's Code of Ordinances has to promote the Comprehensive Plan,which includes the zoning ordinances and zoning map. As a result of those requirements,the City has to develop a zoning district in the yellow area that provides for housing that fits within the City's guidelines of.5 to 2 units per acre. Seals stated that yellow area is within that range so it is fine,but the resident felt that this is a pathway for the City to allow a bunch of houses. Seals stated she can see where someone can believe that. Walsh stated the City would need to change all the zoning regulations in order for more houses to be built in that area. As an example,near the fire station on Willow,that area was guided as 15 units per acre. Because there was no bus service or other public services/businesses in that area,the City felt it appropriate to reduce that density and subsequently rezoned that area. Barnhart stated the 2040 Comprehensive Plan shows lower density in that area at 3 to 10 units. Barnhart noted the majority of the changes to the density occuned along the Wayzata Boulevard corridor. In Navarre near Byerly's,that area is now guided for commercial,but in the 2008 Comprehensive Plan it was guided for commercial or mixed use. The committee felt given the access issues and the rest of the neighborhood, it would be better to have just commercial. Most of the other changes are along the Wayzata Boulevard. In the northern portion of the community, residential land uses were introduced to the Kelley Parkway and Wayzata Boulevard areas. The parcels south of Lake Classen were not changed from Rural Residential. The City then has nine months to make sure the City's zoning ordinance is consistent with the 2040 Comprehensive Plan. In addition,the City's housing goals have remained the same. Staff will periodically look at that over the next ten years to see what type of growth is being experienced in the City, which may result in the City needing to update their housing study,which was last done in approximately 2006. The overall housing goal of the City is to provide opportunities for various types of housing, such as senior housing, affordable housing,and so on. In the Comprehensive Plan,the City is required to identify opportunity for 154 units of affordable for people making 80 percent or less of the average median income. That means that the City guides certain properties for the opportunity to develop that type of housing. Urban medium high density is 10 to 20 units per acre. Some of that is located in Navarre. Barnhart noted simply because it is guided for those types of development does not mean the City has to approve every project that is brought forward. Currently Orono has 639 units affordable for people making 80 percent or less of the average median income,which goes toward meeting the Metropolitan Council requirements. Page 11 of 19 MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday,December 10,2018 6:30 o'clock p.m. The City's Transportation Plan reflects regional transportation plans developed by Hennepin County and comments received from Medina. No new corridors were proposed in the update. One of the comments of the Metropolitan Council was to make the bus system more attractive to users to help alleviate traffic in certain areas. Some of the comments received related to high traffic levels on Shoreline Drive. Barnhart stated due to existing traffic levels,improvements in the Navarre area are somewhat challenging but Hennepin County's Transit Advantage Plan provides some alternatives to no new development. In order to prevent larger scale expansion of the MUSA and introduction of density in the rural areas, increased opportunity for density had to be added in the Navarre and northern Orono areas. The Committee applied density in areas where they felt it was most appropriate,given transportation networks, neighboring land uses,and services available. The sewer plan includes one small expansion of the MUSA to serve a possible development on Wildhurst,which was supported by the City Council in October. As it relates to the City's water plan, it includes expansion of water into two areas on the north side of Orono. The plan notes that water storage in the Navarre area is currently at a slight deficit, which can be remedied with a larger tank,water conservation, or other methods,and is something to monitor over the next ten years. At this time,however,the deficit is not at a level that requires immediate attention. The Planning Commission held a public hearing at their November meeting. A commissioner had some questions about the housing equation and it was pointed out that the Metropolitan Council does provide a good deal of information to help the City develop this plan. The Planning Commission did recommend approval of the Comprehensive Plan on a vote of 6-0. Staff has prepared a resolution for approval,which directs Staff to submit the plan to the Metropolitan Council. Based on their review,the Metropolitan Council could come back with some response and then the City will have an opportunity to formally approve the plan. Walsh stated the Comprehensive Plan Update Committee was comprised of people from all different backgrounds who undertook the task of reviewing every chapter of the zoning code and section of the Comprehensive Plan. The overall arching theme was that Orono was keeping things consistent as much as possible. Some changes have been made along the Highway 112 corridor to accommodate higher density because it was felt that was a better area for higher density than any other spot in Orono. In addition,the City held a number of open houses to allow residents to have input and to ask questions. Crosby stated it is important to explain how the Metropolitan Council is involved and how the City is required to meet some of their goals. Dankey stated otherwise the City might not be allowed to be within the MUSA system. Barnhart stated state statute requires a city to adopt a Comprehensive Plan. Since Orono is within the 7-county metro area, Orono's plan goes through the Metropolitan Council. The Metropolitan Council applies a share of the anticipated growth to each community,and each community has to accommodate that perceived or planned growth,which is where the range comes in. Every time there is a residential development,the Metropolitan Council asks for a range and then they look at the lowest number to see whether the City complies. Some cities are more appropriate or likely to have certain types of Page 12 of 19 MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday,December 10,2018 6:30 o'clock p.m. employment and housing but the Metropolitan Council expects each community to provide some opportunities for growth. Walsh stated the Metropolitan Council requires the City to have a plan that it will accommodate X number of new homes. That does not mean the City has to approve those applications and the Metropolitan Council cannot tell the City to approve it. Walsh noted the City had an area that was guided for 8-10 units an acre,but the City Council only approved it at three. Because it was guided for a higher number,the City had to approach the Metropolitan Council and get their approval to amend that. Dankey asked what commonality there is between the City's density and what the City receives from Hennepin County because of that density. Barnhart stated the density number,which in certain areas of the city is guided at three units per acre, and the services the City receives is why that number is important. Orono does not have their own sewer treatment plant. When the MUSA was brought into the city in the 1960s, Orono started serving the lakeshore lots. There are some costs to extending that pipe and providing that service,which at the time was a pretty dense area. Orono also has some areas along the lakeshore that consist of larger lots. The City still wants to provide sanitary sewer to those areas with the goal of preserving lake quality. The Metropolitan Council looks at all those areas where sanitary sewer is provided,they look at the average growth in the area,and at the anticipated growth. Currently the Metropolitan Council expects the City to maintain an average overall of three units per acre in order to be included in the MUSA. Walsh commented the Metropolitan Council says that the City has to be at an average of three units per acre. If the City goes below that average, it is not cost effective and the Metropolitan Council will not approve it. The area where the Orono Preserve was developed was originally zoned at six to eight units per acre and the City dropped that to three units. That then brought the City to around 3.02 units per acre, which gave the City less opportunity to be flexible on other sites. In addition,the City has an area over on Wildhurst where one side had access to MUSA but the other side did not. The new homes would be close to the shoreline so the Council felt it was important to give them the ability to have sewer and water from an environmental standpoint. Walsh stated the CiTy wants to have some room to accommodate lower density that requires sewer by allowing some higher density in certain areas. Barnhart stated that average is required because there is a service that is being provided and there is a cost to that service. Seals asked whether the City could say no if they provided their own sewer services. Barnhart stated it would be a challenge given the low ta.�rate the City has. Rief noted Oronds sewer rate is higher because there is a lower density on the MUSA. Walsh stated the City also made a decision to keep the area more rural. Page 13 of 19 MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday,December 10,2018 6:30 o'clock p.m. Crosby moved,Seals seconded,to adopt the 2020-2040 Comprehensive Plan and to adopt Resolution No.6933,a Resolution Directing Staff to Submit the Plan for Formal Review by the Metropolitan Council. VOTE: Ayes 4,Nays 0. 30. LA18-000086 PAUL VOGSTROM ON BEHALF OF WILLIAM AND SUE DUNKLEY AND ERIC VOGSTROM,2710 PENCE LANE—AVERAGE LAKESHORE SETBACK VARIANCE William and Sue Dunkley,Paul and Eric Vogstrom,and Mark Gronberg were present. Curtis stated the applicant is requesting an average lakeshore setback variance for the new proposed home on the newly created lot in the Pence Lane Addition. The Pence Lane Addition is a two-lot subdivision, which includes an outlot on the north end. The two lots are conforming with respect to area and width and both reflect adequate conforming building footprint areas. Variances were not requested,nor were any granted with the subdivision approval. The City Council granted final plat approval for the Pence Lane Addition on November 26. The applicant is a potential new owner of Lot 2,to be known as 2710 Pence Lane,and is requesting an average lakeshore setback variance for the new home. Curtis noted the dotted line on the survey is the average lakeshore setback line. The yellow shaded portion of the home is the part that is lakeward or encroaches within that. That encroachment is as much as 18 feet lakeward of the setback line. There is an approximately 100-foot width in a conforming location at the average lakeshore setback line. A pool and other nonbuilding improvements are permitted within the average lakeshore setback area up to the 75-foot zone. The Planning Commission members were in agreement that due to a lack of a demonstrable practical difficulty,denial of the variance as requested would be appropriate. However,two commissioners dissented and indicated that they may be supportive of the portion of the proposed home within the area identified by the closest point-to-point measurement found between the red and yellow lines. Staff recommends denial of the variance as requested because the standards for a variance have not been adequately addressed. No new additional public comment has been received. Previously received comments have been included in the Council's packet. The City Council should review the application and receive any public comment. The Council should make a motion directing Staff to draft an approval or denial resolution for adoption at the January meeting. Walsh noted the City Council has heard this application a number of times but that he would open the meeting up to public comments. Mark Gronberg, Surveyor, stated he came into this project in July and that they were recently informed that the setback line depicted on an earlier survey was not in the correct location. Gronberg stated he has always seen it interpreted in Orono as the most lakeward sightline of the adjoining houses,which is where it was depicted on the original survey and is the interpretation that was used when he worked on the Dayton application on Old Crystal Bay Road. In addition,the drawing from Staff had it drawn from the Page 14 of 19 MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday,December 10,2018 6:30 o'clock p.m. most lakeward points. Gronberg stated that has been his understanding of how the sightline is determined during all the years he has worked in Orono. Gronberg stated one of the things they looked at in the Dayton application was the way the houses were facing. Curtis noted that was for a variance. Gronberg stated that was a component of the variance that was granted. The setback line was ganted 80 feet from the lake on that variance. On this property,there is a mostly straight shoreline with the house facing south to the east of the Dunkleys. The house that got torn down was facing southwest and the Dunkley's house is facing almost west. Gronberg indicated they have a similar situation to the Dayton application as to which way the houses are facing. Walsh noted the shoreline goes across and then changes,which is why those houses are in a row. Gronberg commented it is a great ordinance for a straight shoreline,but when the shoreline cuts way back in, it creates a practical difficulty. The house to the east is 80 to 90 feet from the shoreline,Dunkley's deck is 25 feet,and the middle of the new lot it around 138 feet to the setback. On the corners that average setback line is around 120 to 125 feet,which creates quite a discrepancy. Eric Vogstrom,2710 Pence Lane, noted in 2002,the neighbor to the north of Dunkleys applied for a variance for the end of their garage located off of Walters Port. That area requires a 35-foot setback and the Keegans requested a variance for 10 feet. The Dunkleys did not object to that and the variance was approved. The resolution noted that due to the shape of the lakeshore,there was a hardship pertaining to the property. In addition,when the Dunkleys received their approval,Orono stated the configuration of the property and the adjacent property functions as a peninsula. At that same meeting Council Member Dankey asked the question if it affected anyone's view,and Melanie replied no,not really,because the orientation of that area is almost like a peninsula. As Mr. Gronberg pointed out,there are a couple of properties on 825 Old Crystal Bay Road where they were talking about the average line of sight. Those properties had a similar situation with the shoreline and the City Council did not have an issue with it at all. Vogstrom noted that was approved about a year ago. In addition,there was another property at 1700 Bohns Point Road that Kathy Alexander did where they asked for an average lakeshore setback and there was not an issue with it even though it was a similar situation. Vogstrom noted there have been many other examples where there have been practical difficulties for the average line of sight, and if there is a straight line, it makes sense,but obviously when the shoreline is curved,the ordinance does not pertain to that. Vogstrom stated when they originally came in,the Dunkleys were at that Council meeting asking for a line of sight variance and the Mayor and some others commented that that did not seem to be a problem. Greg HQeler,2715 Pence Lane, stated he knows the City Council looked at a number of plans and discussed at great length the layout of this lot and how it had to be conforming,that they were not going to entertain looking at this lot if it was not conforming. The applicant then came in with a conforming lot and they did not oppose that. Hueler asked what sense does it make for someone to come in with a conforming lot but then request a variance later. Hueler asked whether he can come in next month asking for a variance if there is no practical difficulty. Page 15 of 19 MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday,December 10,2018 6:30 o'clock p.m. Walsh stated nothing can stop someone from requesting a variance and that the conforming lot was a start. Walsh stated there have been a number of occasions where people have come in with conforming lakeshore lots in a development,but the City has had to preempt the issue by setting the sightlines up front and requiring that certain homes be built first. Kelly Hueler stated when they were at the Council meeting,they heard that the lot had to be conforming. Hueler noted there is no existing home on the property and that the applicants have more than sufficient room for a building pad. Hueler asked where the Dunkley addition is. Curtis pointed out the location of the addition. Hueler stated that is where the lakeshore curves,and that the next house that is being proposed is along straight lakeshore. Hueler stated the Dunkleys already received three variances so that issue has no bearing on this. Those are existing homes with practical difficulties that can be easily understood and other citizens in Orono have received the same consideration for. This is an empty lot and it is not a point or a peninsula where they are building. The lot has a perfectly sufficient building pad and it met all the requirements. Hueler stated she does not understand how the applicants can come back in and ask for exactly what they want when the first answer was no. To them and everyone else around the lake that is not a process that makes sense and there apparently is no reason why someone cannot walk in here and request a patio that was originally denied and say we have every right to that. Walsh stated everyone has the right to ask for a variance based on practical difficulty and the Council finds whether there is or is not reasonable accommodation. Hueler asked where the practical difficulty is. Dankey stated the lot is an unusual shape and the building pad is already 120 to 130 feet back from the lake. Dankey stated if you keep moving it back,that azea becomes very narrow,which is a practical difficulty. Kelly Hueler commented the applicants created the practical difficulty. Greg Hueler stated he is not an attorney,but his understanding is that in Minnesota you cannot create your own practical difficulty. Dankey stated she does not understand why there is now a new sightline. Curtis stated the first sightline was shown incorrectly. Walsh stated everyone can state their opinion but that he wants to avoid any arguments. ' Greg Hueler asked what happened with the sightline. Curtis stated nothing really happened with the sightline, and that what the Council was reviewing when the new surveyor came on board was a plat. The surveyor was cleaning up the information that was not as clear from the previous surveyor. The previous surveyor had the incorrect sightline on their survey, Page 16 of 19 MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday,December 10,2018 6:30 o'clock p.m. which was communicated to that surveyor as well as the applicants a number of times during the first process with the creation of the lot and during the Dunkley's application. During the building process there was some confusion about the roof and the homeowner, surveyor and Staff walked through the sightline on their property and not the sightline on the newly created lot. Curtis stated it has been a moving target the entire time because the application has gone from a lot line rearrangement with an incorrect sightline shown,to a combined lot with an incorrect sightline,and now to a plat with different property lines and an incorrect sightline setback on the survey. Staff notified the applicant as soon as it was realized there was some discrepancy and it was corrected. Curtis stated the property is now shown with the correct setback;however,the applicant's plan changed to a further encroachment another 15 feet forward. Walsh stated that is a different conversation and that the Council will now discuss the variance being requested. Walsh stated the code never takes into consideration how much time someone spends in planning or how much money is spent,and it never takes into consideration how much someone likes their plan or how much their neighbors like the plan or don't like the plan. All that matters to the City Council are the facts and whether there is a practical difficulty or not. If the City Council finds there is no practical difficulty,the variance request is denied. If a practical difficulty is found,the question becomes, what is a reasonable accommodation that makes sense to that practical difficulty. Walsh stated he cannot think of anybody with a meandering shoreline that asked for a practical difficulty where the City Council did not approve the variance requested or some form of it. Even this Council has preset building pads because of a meandering shoreline, such as on Mooney Lake. The intent of the code is to stop people from building in front of each other,which works great when the shoreline is straight, but where the code fails is where someone is real close and someone is far away, such as on Highwood. As a result,there is a practical difficulty for the people in the middle because of the distance from the shoreline and so they typically receive a variance. The code also fails when there is a shoreline that starts rounding. When a sightline goes through someone's house, it defies common sense because you cannot block a sightline that does not exist. Walsh stated from a code review committee standpoint,the code works sometimes and sometimes it does not. Walsh stated this is probably one that needs to be fixed when there is not a straight shoreline. In speaking with the City Administrator,he indicated other cities have different language where they take averages, and that this code should probably be put on the City's list to deal with as it relates to the uneven shorelines. Walsh stated from his standpoint,because this is a meandering shoreline and there are sightlines that go through houses,it is a practical difficulty. A reasonable accommodation would be to take it from the closest point between the two houses where the yellow line is because the applicant on many occasions said,if that is the line,they would be good. Walsh stated it is not a huge amount either way,but in his view that would be a reasonable accommodation since the applicant has indicated that would work for them and that he would make a motion to that effect. Walsh moved to approve the average lakeshore setback variance based on the yellow line on the ezhibit for Application No. LA18-000086, Paul Vagstrom on behalf of William and Sue Dunkley and Eric Vogstrom,2710 Pence Lane. Page 17 of 19 MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday,December 10,2018 6:30 o'clock p.m. Dankey stated she would agree with that also because of the fact that she does not have any neighbors that can see straight out of the side of their house to the lake. Dankey stated in her view it is back far enough for sightlines on both sides but that she does not agree with the bump-out and that the applicants should stay within the yellow line. Crosby stated it looks to be about a 10-foot difference. Feel this is reasonable because it is a true corner to corner. The intent of the code is about sight and vision. Seals stated she does see it as a practical difficulty and that the reason the City Council previously approved the lot was because it was conforming. Seals commented it is kind of ironic that even given the yellow line,the applicant went past that. If the code is bad, it should be changed,but right now the code is what it is. Dankey seconded. VOTE: Ayes 2,Nays 1,Crosby abstained. MAYOR/COUNCIL REPORT Seals reported the tree lighting ceremony at the Orono Golf Course was a real fun event and that a number of local businesses donated items. Seals stated she heard from some residents that they wished they had known about it and that someone had an idea about lighting up the hill and having a tow rope. Crosby agreed the tree lighting ceremony was outstanding and that it was great the community came together for that event. Crosby noted the City now has an ice-skating rink at Crystal Bay Park and that in his view it is a terrific use of the park. Seals commented she was surprised at the number of people who texted her asking about the ice-skating rink and that it appears the residents are interested in using it. � Walsh stated he also received a couple of comments about the rink. Rief noted the rink has been reflooded but that he is not sure if it is ready yet. Dankey stated she has enjoyed serving on the City Council for the last couple of years and that she appreciates the work everyone on the Council has done. Walsh thanked Dankey for her work on the Council on behalf of the City. Walsh stated he would like to wish everyone a Merry Christmas and happy holidays. Walsh thanked Council Member Seals and the Park Commission for the geat job they did in organizing the tree lighting ceremony. Walsh reported he attended his first Orono dance team competition in Fridley. The junior varsity took 6�' place and the two varsity teams took first place. Page 18 of 19 MINUTES OF THE ORONO TRUTH-IN-TAXATION/CITY COUNCIL MEETING Monday,December 10,2018 6:30 o'clock p.m. CITY ADMINISTRATOR REPORT Rief reported he met last week with some of the lake area managers related to utilities in the southern area to start the discussion about whether there would be some opportunities for savings. Rief stated he also met with lake area managers today to discuss some LMCD issues and the various city budgets. Rief thanked Finance Director Ron Olson for his six months of dedication to the budget. Rief thanked Community Development Director Jeremy Barnhart for all of his work on the 2040 Comprehensive Plan. Rief noted City Hall will be closed on Monday,December 17,to the public so Staff can perform an internal cleaning of the facility. Rief stated he would also like to say thank you to Council Member Dankey for her service on the City Council. CITY ATTORNEY REPORT Dankey moved,Crosby seconded,to enter into closed session as permitted by the attorney-client privilege to discuss the following three lawsuits: Peter Lampher and Penny Rogers vs the City of Orono and Jay Nygard,et al; Fred Johnson vs the City of Orono; and Matthew and Susanne Johnson vs Archelle Georgiou Feldson,et al. VOTE: Ayes 4,Nays 0. (The Orono City Council was in closed session from 8:37 p.m, to 8:52 p.m.) ADJOURNMENT Dankey moved,Crosby seconded,to adjourn the Orono City Council meeting at 8:52 p.m. VOTE: Ayes 4,Nays 0. ATT . Anna Carlson, City Clerk Dennis Walsh,Mayor Page 19 of 19