Loading...
HomeMy WebLinkAbout03-11-2019 Council Minutes MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, March 11, 2019 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,Matt Johnson, Aaron Printup, 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 FEBRUARY 25,2019 2. CITY COUNCIL WORK SESSION MINUTES OF FEBRUARY 25,2019 3. CLAIMS/BILLS 4. APPROVAL OF 2019 KENNEL LICENSES 5. DAKOTA TRAIL COOPERATIVE AGEEMENT 6. HENNEPIN COUNTY HEALTHY TREE CANOPY GRANT PROGRAM— RESOLUTION NO.6955 7. LA19-000003—FINE LINE DOCKS ON BEHALF OF THOMAS AND KELSEY HAMILTON, 1795 FOX STREET—RESOLUTION NO.6956 This item was removed from the Consent Agenda. 8. LA19-000004—CITY HOMES,LLC,ON BEHALF OF JOSHUA AND NICOLE JABS, 3369 CRYSTAL BAY ROAD,VARIANCES—RESOLUTION NO.6957 9. LA19-000005—STEVEN AND KIMBERLY SCHOTTLER,2740 SHADYWOOD ROAD, AFTER-THE-FACT VARIANCE—RESOLUTION NO.6958 Crosby moved,Johnson seconded,to approve the Consent Agenda as revised,with Item No.7 being removed from the Consent Agenda. VOTE: Ayes 5,Nays 0. PUBLIC COMMENTS Ralph Kempf, 3675 Togo Road, stated he is excited to see the Dakota Trail Cooperative Agreement approved, which is the next step going forward along with the reconstruction of the intersection of County Roads 15 and 19. The Dakota Trail is getting more popular every year, so this is very timely. Page 1 of 16 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, March 11, 2019 7:00 o'clock p.m. Kempf noted he attended the Fire Hall meeting regarding the rebuild of County Roads 15 and 19, and that one thing that was discussed was the Culver's corner of that intersection, which is on the northeast corner of the intersection of those two roads. The County's right-of-way veers away from the intersection and there is actually a large piece of property that lies within the County's domain. Kempf stated he proposed that it would be good if there was something that can be implemented to alert the string of cars that come from 394 on their way home through Navarre that something has changed in the intersection that would invite the bike traffic to stop and have pedestrians be able to stop. Kempf stated he would like to see something that invites pedestrians and bikers to congregate at that corner and that he suggested to Hennepin County's representative that they consider putting a semi-circular stone bench and a paved patio area in that corner of the intersection, which would give the statement that this is a pedestrian zone. The Hennepin County representative seemed receptive to that. Walsh noted he was in attendance at that same meeting and that he encouraged Hennepin County to come before the City Council with all the feedback they have received and Hennepin County's response to it. The representative was encouraged to contact Adam Edwards to get on the agenda. Crosby stated Hennepin County had some good ideas about slowing traffic down in that area as well. PUBLIC WORKS/CITY ENGINEER REPORT 10. WATER METER REPLACEMENT Edwards reported the City received three proposals from three separate companies to replace the water meters. The RFP review occurred concurrently with revisions to the water rate study. During the process,Staff concluded that an alternate meter replacement plan over an eight-year time frame would be more advantageous to the City. Changing out the meters over a longer time frame minimizes the water rate increases and allows the City to maximize use of those meters that still have reasonable life left in them. As a result,at this time Staff recommends the City Council reject the bids and direct Staff to negotiate an alternate meter change-out plan. Johnson asked if Staff is concerned about the maintenance issues associated with the batteries by extending the replacement by a couple of years. Edwards stated the concern with the battery life is what started this process and that the City does have a number of batteries that are reaching the 15-year mark. The last time the replacement was done occurred over a 5-year period of time. Even if the replacement started today,the City would still have some meters that would be replaced at seven to ten years. Walsh stated there are a number of meters that still have a few years of useful life yet and that the City is attempting to get the biggest bang for its buck by spreading out the replacement over a longer period of time. As a result, the City does not need to do them all at once and that they can do it when they functionally need to do it. Printup moved,Seals seconded,to reject all bids for the meter change-out and direct Staff to pursue the revised meter replacement plan. VOTE: Ayes 5,Nays 0. Page 2 of 16 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, March 11, 2019 7:00 o'clock p.m. FINANCE DIRECTOR REPORT 11. UTILITY RATE DISCUSSION Olson stated every year the City updates its utility rates. The fees for Sewer,Storm Water and Recycling were previously set when the 2019 City Fee Schedule was approved on December 10,2018. Staff has been working at establishing water rates that will provide for long-term sustainability for the Water Fund. Prior to the 2009 water rate study and the establishment of a tiered water rate schedule,the City did not really put any money towards depreciation of equipment. Walsh stated a better phrase would be a reserve for replacement to avoid the need to borrow money. Olson stated the rates are being proposed with an emphasis on a user sustained system that will not require bond sales or special assessments for infrastructure maintenance and replacement. The following factors have been considered in the rate proposal: - Emphasis of self-sustainability - Institution of best practices,which includes establishment of a 25 percent operating reserve and a 25 percent capital reserve. - Elimination of borrowing and special assessments - Age of the distribution system - Elimination of lease revenue - Increased administration charge The reason for the 25 percent capital reserve is to cover the depreciation and the 25 percent capital reserve is to have the capital to replace them. The system in Navarre was installed in the 1970s, and it is estimated through 2045 the City would be replacing 65 percent of the pipes, which will amount to a lot of money. The City has used the special assessment route previously when major infrastructure repairs have been necessary. Walsh stated the goal with this is that each of the City's funds will be individually self-sustaining so when things need to be repaired,the money is available for those repairs and the City does not have to either borrow the money or levy special assessments. If the City puts the funds on a good budgeting foot right now, they will not be put in a position where the City needs to borrow a bunch of money. The other objective is to make it a policy decision so if five years from now someone wants to change it, they will have to do it in a public setting so everyone will know about it. Seals stated 30 percent seems like a high number and asked how this rate increase will affect the average resident. Olson noted there are approximately 1,000 properties currently on the City's water system,with another 2,000 properties having private wells. The goal is for the replacements to be supported by the people who are receiving city water and the increase will only be for people who are connected to city water. Crosby asked whether any of these dollars would go towards the sewer fund. Page 3 of 16 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, March 11, 2019 7:00 o'clock p.m. Olson indicated they would not go towards that since the sewer fund is its own fund and separate from the water fund. Staff has reviewed the City's CIP and has changed it slightly to help defer some of the costs. In addition, Staff evaluated whether a 25percent increase would be sufficient, but it was found that would not work and the City would end up getting pretty far behind. Staff determined a rate increase of 30, 30, and 25 percent would work the best. Walsh noted Staff actually proposed higher increases,but after a review of the CIP,it was determined that some items could be pushed further out. In addition, more people will be paying in to the water fund as a result of some of the new developments that have occurred. Seals asked what an average family pays for water per year or quarterly. Rief stated the first tier of rates is 15,000 gallons per quarter,which the majority of people fit into. If that property uses all 15,000 gallons, they would pay $105.56, and the 30 percent increase would raise that to $128.60, which is about a$25 dollar increase over three months. The higher tiered water users will have a higher increase. Walsh stated the average increase will be about$8 per month. Johnson stated as he read through the information, he had the same question and that 30 percent seems Ike a big number. Currently the City is borrowing money to pay for improvements and that the City wants to capture the true costs of water and that they do not want to be supplementing other cities that are utilizing Orono's water system. Seals stated she receives a fair amount of questions about the amount of taxes people pay for different things and that when it is broken down, it makes more sense. Walsh noted Orono does not levy special assessments for roads or other improvements and it is now a budgeted item. Printup commented he likes the fact that it is geared towards becoming self-sustaining in the future and that any change to that policy will be transparent. Crosby stated by not borrowing money to do the repairs in the future, the City will also be saving the interest on that debt,which is being fiscally responsible. Crosby moved,Printup seconded,to increase the 2019 water rates by 30 percent,to approve the implementation of a working reserve of25 percent of operating expenses and a capital reserve of25 percent of capital expenses. VOTE: Ayes 5,Nays 0. PLANNING DEPARTMENT REPORT 7. LA19-000003—FINE LINE DOCKS ON BEHALF OF THOMAS AND KELSEY HAMILTON,1795 FOX STREET—RESOLUTION NO.6956 Barnhart noted the Planning Commission recommended approval of this dock and that the applicant is proposing that this seasonal-styled dock will be placed in this location permanently. Page 4 of 16 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, March 11, 2019 7:00 o'clock p.m. Johnson asked if this dock was installed last year. Jessie Johnson, Fine Line, indicated it did go in prior to the house being built but was subsequently removed. Johnson noted the blue pen as drawn shows the proposed location of the dock. Johnson asked if the posts are still there. Jessie Johnson indicated they have been removed. Johnson asked how far it would extend out into the channel and how many sections are going out there. Jessie Johnson stated past the cattails would be three sections. Johnson noted the dock would be located on the back side of Tanager Bay and that the channel goes under Fox Street and the Dakota Rail Trail. Johnson asked how much is being achieved in water depth by extending farther into the channel. Jessie Johnson stated it may not be much in water depth and that the extra eight feet allows the homeowner to fish in a more desirable spot. Johnson noted there are snowmobiles in that area all winter long and that the homeowner is proposing to have a little tiller boat. Hamilton indicated he has a 12-foot boat. Johnson stated he does not think much water depth would be gained by extending it further out. Johnson asked whether this will be a permanent dock. Hamilton indicated it will be a permanent dock, and in order to get to a 4-foot depth, the dock had to be extended out that far and that it is two feet right at the edge of the cattails. Johnson commented you can get little tiller boats in there as well as some jet skis. Johnson stated in his view the homeowner will not see a real gain going further out and that it makes some sense as a permanent structure. Johnson recommended the dock be pulled further back toward the cattails so it is not sticking halfway out. Even though someone cannot drive a boat fast in there,from a snowmobile perspective,that would be helpful. Hamilton noted there is a little cut in the creek,and if you were to draw a line from point to point, you would be just at the edge of the cattails in this area. Hamilton stated he does see snowmobiles go through there. Jessie Johnson illustrated the location of the cattails and noted the dock will end up about even with the edge of the channel. The dock is being proposed 42 feet out. Johnson asked if the DNR cares about this. Jessie Johnson indicated it has been approved by the DNR. Page 5 of 16 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, March 11, 2019 7:00 o'clock p.m. Printup stated on Brown Road and Fox there is a little dock and chair, which is the only one he is aware of. Hamilton indicated he is aware of one other dock. Jessie Johnson stated due to the fluctuating lake levels, the boat would be on the bottom of the lake when it is dry. Johnson commented there is probably not four feet of water in there. Johnson stated he is willing to allow him to have a dock there but that he would like to see it pulled back by a couple of sections. The applicant can always come back and ask for it to be extended if there are issues. Since a lot of the snowmobile traffic is at night, having a dock stick out does not make sense,especially with the large platform on the end. Johnson recommended the applicant pull it back by two sections,which would make it 16 feet shorter. Walsh noted that would make the dock 26 feet. Jessie Johnson noted at the edge of the cattails, the mud is floating on the top and at the end of the proposed dock it is not. To come back after the fact and add on to the dock will not be that easy. Johnson stated they would like to do it right the first time and that this is the way they feel it should be done. Crosby asked how much room there would be to the other side of the channel from the end of the dock. Jessie Johnson indicated from the aerial it looks to be at least 100 feet. Johnson commented it is very misleading because of the cattails and that it is not wide in that area. In order to use it, people have to stay down the middle. If the dock extends out, that would force people to move over more into the shallower part. Crosby asked if a reasonable compromise would be to require the dock be illuminated at night. Walsh stated he sees the issue Council Member Johnson is raising and that at the end of the dock there will be a platform, which is a permanent structure. Johnson stated this is a typical dock that everyone has to put in and out every year. If the applicant was driving pilings in, that would be a different story. Jessie Johnson stated they would like to do it right for the homeowner and that they determined this was the correct length in order to gain the appropriate deck for the boat. Crosby stated his concern is for the snowmobiles but that the dock could be illuminated. Hamilton stated illuminating it is an option and that Fine Line recommended this length to accommodate a small fishing boat. Johnson asked how far the original dock extended out. Page 6 of 16 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, March 11, 2019 7:00 o'clock p.m. Jessie Johnson stated there was not a house on the property and that they installed the dock accidentally so it had to be taken out. Hamilton stated they were told they need to get approval from the DNR and the Watershed District and that it was not necessary to ask the City for approval. Crosby stated if it is a safety issue due to the snowmobilers, they can illuminate the dock, and if it needs to be farther out to accommodate the boat,he can understand that. Hamilton stated the proposed end of the dock would be approximately where the two points come out and that it would not be out in the middle of the channel by any means. Barnhart noted on the last permanent dock the City approved on Shadywood, Staff required reflectors every four feet,and that he would recommend the same condition here. Walsh commented he is not sure he would like the dock illuminated all night long and that the reflectors might be a good option. Hamilton indicated that is not a problem. Printup stated even though he has not seen anything motorized go up and down in that area,he is concerned about the motorized vehicles. Printup stated his first reaction was that it was going out an awful long way but that the applicant has gone through the proper channels and got the approvals. Printup stated he does not want to see docks on creeks. The reflectors are fine but that it comes down to the length. Walsh stated he worries if the boat is only 12 feet from the cattails, how that might not be sufficient, and that a compromise might be to remove only one section. Seals commented she has been struggling with this application and that in her view the property owner does have a right to a dock but that she has seen snowmobilers hit things. Seals stated she leans towards reducing how far out the dock extends. Walsh stated if it is not working, the property owner can come back before the City Council. Johnson stated if there was a huge difference in water depth, that would be one thing, but going further out is not achieving anything. A dock that far out would be intrusive to that area and that he does not see a good reason to not shorten it. Johnson moved to approve the conditional use permit fora dock not to exceed three sections or24 feet from the edge of the cattails. Walsh asked if he means three sections past the cattails. Crosby stated if the sections are eight feet,he would propose four sections from the cattails. Johnson withdrew his motion. Page 7 of 16 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, March 11, 2019 7:00 o'clock p.m. Crosby stated he is saying they should get rid of the fifth section and the half section. Walsh stated what he has heard is that if the line is in the middle as depicted on the drawing, that one does not count, and he can have three full sections past the cattails. Johnson stated they will have to rely on the applicant to construct it to the right length. Originally a bunch of cattails were ripped out and a dock put in, and if they wanted to extend the dock, all they would have to do is remove cattails. Walsh pointed out removing the cattails would actually make it worse for them. Crosby suggested they leave it at four complete sections from the cattails. Mattick stated his understanding is that dock sections come in different lengths and that the City Council may actually want to clarify the length. Crosby recommended the dock be basically 32 feet from the cattails. Johnson moved,Crosby seconded,Application No.LA19-000003,Fine Line Docks on behalf of Thomas and Kelsey Hamilton, 1795 Fox Street,to approve a conditional use permit for a dock not to exceed 32 feet from the edge of the cattails. Printup stated he would like clarification on where the edge of the cattails is. Mattick stated in essence the applicants are asking for a 190-foot dock and that the Council has shrunk it by approximately eight feet. Mattick stated he is assuming they start the dock at the shoreline and that it might be better to clarify the length of the dock. Johnson stated he is most comfortable keeping it as an extension out from the cattails because the homeowner might decide,when laying out the dock, that he wants to have an extra section on the land for better egress. If the dock goes out 32 feet from the cattails, that will achieve what he would like to see for the length of the dock and that the homeowner can always come back and ask for it to be extended. Mattick asked whether the motion includes a requirement for reflectors to be installed. Johnson amended his motion to include the installation of reflectors. Crosby seconded. Printup noted this is a CUP and that it runs with the property. In the future,if there is motorized watercraft or jet skis, there is nothing the City can do. Seals stated there is nothing the City can do to prevent jet skis in the area. Printup noted there are other docks along the creek,which makes him somewhat supportive of it. Hamilton indicated there are at least three other docks. Johnson stated the other docks come out to the edge of the cattails and then go perpendicular to the cattails. Page 8 of 16 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, March 11, 2019 7:00 o'clock p.m. VOTE: Ayes 5,Nays 0. 12. LA18-000104—GARY ANDERST ON BEHALF OF NARROWS,LLC,3382 SHORELINE DRIVE,CONDITIONAL USE PERMIT—RESOLUTION NO.6959 Barnhart stated this is a request for a conditional use permit by the Narrows Saloon to allow the consolidation of the bar with live entertainment with a restaurant serving liquor. Over the years the City has approved different conditional use permits for the Narrows Saloon and the Lakeroom. One of the conditions included in the original permit for the Lakeroom was that both entities hold separate liquor licenses. The property owner now desires to remove that condition. Doing so would require a conditional use permit expansion of either the Lakeroom to allow live entertainment or expansion of the Narrows space. The applicant also desires to alter the hour restrictions for the Lakeroom to allow that business to be open the same hours as the Narrows,which is to 1 a.m.Monday through Sunday. Last August the City Council reviewed a change in the location of the dumpster, which was approved. Since a conditional use permit is issued to the property and not the property owner, any future bar and restaurant could work under this conditional use permit so long as all of the conditions are met. One concern is that this or a future owner could expand the live music aspect of the business, potentially impacting the adjacent neighborhoods without public comment. Staff has attempted to assemble all the current and proposed conditions into one document. The Planning Commission recommended on a vote of 5-0 to approve the conditional use permit at their February meeting. In the past the main issue with the Narrows Saloon has been the noise. No formal comments have been received in support or opposition to the request. Staff and the Police Department have not received a noise complaint on the business in the last two years. Gary Anderst,Applicant, stated Staff has done a good job summarizing the application. One issue that was not raised was that the address listed in Staff's report is 3382 Shoreline Drive and that they do not use that address. Barnhart noted those are the addresses used by Hennepin County. Anderst noted they use 3380 for all deliveries and mail, which is not on this document. Walsh commented it makes sense to bring it all into one document and one business entity and that he does not see any issue why it should not be done. Barnhart noted Staff is recommending approval but that a future owner could purchase the property and then operate a 10,000 square foot live entertainment center,which could impact the neighbors and parking. As a result, Staff has tried to memorialize the size of the Narrows,the size of the stage,and if Page 9 of 16 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, March 11, 2019 7:00 o'clock p.m. anyone wanted to expand that, they would have to go through a public process because there is potential to impact the neighbors. Anderst stated the intention with expanding the hours is not to have the Lakeroom open consistently for those longer hours but that it was more or less for special occasions. Requests have already been received to utilize Jimmy's Lounge for a Christmas party and they did not want to say they have to be out of here by this time when the other side is still open. Having the longer hours would provide more consistency. Printup moved,Seals seconded,to adopt RESOLUTION NO.,a Resolution Granting a Conditional Use Permit fora Class II Restaurant that includes live entertainment and a bar, Amending and Restating Previously Issued Conditions per Municipal Zoning Code Section 78-644(4). VOTE: Ayes 5,Nays 0. 13. LA19-000006—TRIDENT DEVELOPMENT ON BEHALF OF UNIVERSITY OF ST.THOMAS,OUTLOT A,STONEBAY; CONCEPT PLAN REVIEW Barnhart stated this a concept plan for a proposed RPUD rezoning for a 93-unit apartment building. The building would be located at the northwest corner of Willow Drive and south of Kelley Parkway. The applicants are proposing a 93-unit apartment building, two to two and a half story building, which is consistent with the Comprehensive Plan's guiding land use and density for the property. The City will need to change the zoning district once the Comprehensive Plan is approved by the Metropolitan Council. This project will have to wait until the Metropolitan Council and the Orono City Council approve the Comprehensive Plan. In reviewing the RPUD district, there are a number of standards that need to be met. The applicants are not asking for any flexibility to those standards since they are proposing to meet all of those requirements at this time. It will likely be necessary for Staff to look at the height of the building once more definite plans are submitted but the applicants are well aware of the 30-foot height limit. The parking requirements will likely be met. Given the required number of parking spaces,the size of the building will be limited since two parking spaces per unit are required. Barnhart noted this is not a public hearing but that the applicants are looking for input on the rezoning and the overall concept plan. Walsh asked what the density is for Stonebay. Barnhart indicated the condominium was close to 20 but that he is not aware of the density for the rest of Stonebay. Printup asked what the guided density is for this site. Barnhart stated it is 20 to 25 units per acre for these three parcels. The idea behind that was the City had to identify some high-density areas for the Metropolitan Council. Walsh noted the City had to identify some high-density areas to meet the Metropolitan Council's density requirements and that this site was felt to be one of those areas that could handle higher density. The reason some of these areas were rezoned was to create opportunities for higher density. Since that time Page 10 of 16 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, March 11, 2019 7:00 o'clock p.m. the City has approved the apartment building next to the dentist, the memory care building next to that, and the Eisinger property. Given all those projects, the City has hit its density number, and at this time the City does not really need more density. Walsh stated he was thinking this site would be more similar to Stonebay and that he would be more supportive of that rather than higher density. Seals noted she has had some Stonebay residents reach out to her with concerns about the density. Barnhart stated the applicants are proposing a project that is similar in design and color to the Stonebay project. The only application that is more certain is the senior housing. The apartment building is two- thirds of the way through the review period and the Eisinger property has gone through concept review. While those are in the pipeline, that does not mean they will necessarily happen. This project does meet the City's plan for the area and that a two to two and a half story building will provide a buffer. Seals stated the City is not in any race to increase the density and that there is no appetite by the residents right now to hit it right away. Crosby indicated he is in agreement with that. Walsh commented it would be better if the density was similar to Stonebay. Barnhart asked if this site should be reguided for ten units per acre. Walsh stated that would be more desirable. Crosby stated he would hke to see something more cohesive to the area. Walsh stated he would prefer townhouses rather than a high rise since there are single family residences on the other side of the intersection. Roger Fink, Trident Development, stated he appreciates the Council's comments and input on this, and that in light of the direction the conversation is trending, he would like to provide some insight into their project and how it applies to land use. Fink stated he supports Jeremy Barnhart's comment that this particular commercial corner/traffic intersection would be best served by a higher density development. From a landowner's perspective,they are looking to achieve a higher value for that intersection corner and that they will be quite disappointed that the density they thought could be achieved there through a Comprehensive Plan Amendment process, which would allow them to achieve what they were hoping to get for the property, versus the commercial use that was previously planned for. Fink stated in their view the apartment does serve an important buffer from the intersection and the lower density deflates the value of the property. Crosby stated the Council is not looking to push density. Crosby stated he can appreciate the financial state,but that the City is looking for less density at this time. The area having a feel and a match is important and there is no reason townhomes or something of that nature could not go in there. Page 11 of 16 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, March 11, 2019 7:00 o'clock p.m. Patrick Brama,Trident Development, asked what amount of density the Council is comfortable with since the Comprehensive Plan shows 20 to 25 units per acre. Walsh stated they are looking for something that is comparable to what is across the street,which is a townhome style development. Brama stated it sounds like density is one factor. Brama asked whether the Council's preference is for it to be a detached product and whether multi-family with six to eight units would be something the Council would consider. Crosby indicated he is looking at more of a townhome type development. Walsh stated two to three units is good, which is similar to what is across the street. Todd Cushman,Trident Development, stated the City's Comprehensive Plan specified this area to be a high-density area and that it seems like the Council's comments are that they are looking to have medium density instead. Walsh noted the Comprehensive Plan is a guiding document and that a number of things have changed over the lastl 8 months. In addition, Orono Preserve was guided for seven to ten units per acre but that did not work and that ended up being three units per acre. The City Council is looking at how the project fits into the community. Walsh stated for those people who live in Orono, the way of life is more rural, and it has been that way for generations. The City strives to keep density low, and while the City has to provide opportunities for higher-density development, the City does not have to actually approve the higher density projects. Due to some other recent projects,the City has met its density numbers. Walsh stated the concept plan allows the applicant to get the feedback of the City Council without incurring all the costs associated with a formal application. Barnhart noted one component was the density number, which is three units per acre,and the second component was the opportunity to provide housing for projected growth. Barnhart stated the City Council may have to have a conversation about where to put the higher density that was proposed for this site elsewhere. The City Council took no formal action on this item. 14. LA19-000002—SCOTT GATES ON BEHALF OF KRUCKEBERG REAL ESTATE, 4400 DEERING ISLAND,CONCEPT PLAN—AMEND MUSA BOUNDARY Barnhart stated this is a request for the City Council to consider an amendment to the Comprehensive Plan by expanding the MUSA boundary. The applicant would like to incorporate Deering Island into MUSA,which would thereby give it the opportunity to connect to sanitary sewer through the City of Mound. Page 12 of 16 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, March 11, 2019 7:00 o'clock p.m. The City's Comprehensive Plan does talk about expansion of the MUSA. The first guideline is to look to serve properties that are adjacent to the lake. The 2040 Comprehensive Plan includes six priorities as guides for considering modification to the MUSA. The first priority is the property must abut the shoreline of Lake Minnetonka, which this property does. The existing home must have a failing or non-conforming septic system and replacement drain field sites are not available. In the City's sewered areas,the City has to maintain a general density of 3.0 units or more. Orono's density ratio is currently above three units, and if the Comprehensive Plan is amended, it would drop it slightly to 4.11 percent. Additional information as to the status of the system and alternative sites is necessary prior to formal application. Based on the information provided, it does appear that the island fits priority one and condition two can be satisfied. Condition three cannot be fully met. At this time the applicant is looking for feedback on the proposed modification to the Comprehensive Plan. Staff does not see this as opening the door to high density in the area. Walsh stated without owning both pieces,they would probably not get an easement,and if the City includes this property in the MUSA,it would drop the City's density number even though Mound is supplying the sewer. The City included Wildhurst because it was felt to be better for the environment if the development was sewered. Seals noted there is a problem with the quality of water for Lake Minnetonka, and questioned how they would know if the pipe fails if it is 10 feet underground. If the pipe does fail, who would pay for it to be repaired. Seals stated when you think of other islands like Big Island, the impact there is greater,and that this might not be as straight forward as it first appeared. Barnhart stated that is one of the six priorities that should be considered for expansion and that the Council could have a conversation with any number of communities about serving Big Island. Seals commented this could have a domino effect. Barnhart noted there are a number of permits and inspections that would be required as part of the installation. Seals asked if the City has done anything similar on the lake. Rief noted Ivy Place runs under the lagoon and the City of Mound has also bored under the water. Crosby asked if the property owner is looking to construct a bridge eventually. Barnhart stated not to his knowledge. Johnson noted there is a house out there currently. Walsh asked who would be responsible if it fails. Page 13 of 16 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, March 11, 2019 7:00 o'clock p.m. Barnhart indicated it would be considered a service line and would be the responsibility of the City of Mound and not the responsibility of Orono. There is no potential to subdivide Deering Island since it has a 5-acre minimum lot size. Printup stated Wildhurst was more of a neighborhood and not an island. Johnson noted the applicant would be responsible for the expense of putting it in, and asked what happens when the pipe experiences a problem. Seals asked how they would know there is a problem since it will be under the lake. Johnson stated the obligation is on Mound and that this is kind of like a private road where the property owners on the road are responsible for it. Scott Gates,Applicant, stated this is a bit of a unique situation and that they originally did not set out to do this. The house is being rebuilt and over the years they have had a number of issues with flooding. In a conversation with the City of Mound, it was suggested they consider running some sewer out there. Gates indicated he researched it a little bit since he has not bored under a lake either. It is not unusual these days to bore underground. It is more expensive, but then it is expensive to do a septic system on an island. The existing septic system is old and will need to be replaced in the near future. If you start to balance the costs,the upfront costs are more but it will have more long-term benefits. The thought is that it might balance out cost-wise,but it will be more environmentally friendly. Gates commented this is a bigger vision kind of thing and that the contractors he has spoken to feel it is doable. The cost would be approximately 40 percent more expensive. The ten feet is a requirement from the DNR and his understanding is it is a fairly routine permit. The engineers have indicated it would be a typical waste pressurized line. Gates stated his understanding in conversations with Mound and the engineers is it would be treated as a service to the house from the departure point in Mound. From the manhole out to the island, which would be a gravity fee,would be treated as a residential service and it would be the homeowner's responsibility to build it and maintain it. It is pretty stable technology and the likelihood of it breaking is pretty small. Given that it is waste,a person will likely know about it sooner or later if there was a leak. Currently there is a small home on the island that has been there for many years. At the present time the owner plans to use it as a family compound but at some day in the future that could change. Currently some outbuildings could be built and possibly one more home, but it is not subdividable. Bringing sewer to the island does not make a subdivision possible. Walsh stated he does not see any downfall to it except if it fails, the sewage will go into the water. Gates stated on the north side of the island there is some bluff approximately 12 to 18 feet above the water level and the southwest corner is fairly low. If there is some type of failure in the septic field, it will go laterally and ultimately into the lake. In addition, a good portion of the island is treed and it would be necessary to remove a number of them in order to install a new septic field. Walsh noted the City expanded the MUSA on Brown Road and on Wildhurst. Page 14 of 16 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, March 11, 2019 7:00 o'clock p.m. Gates stated once this was suggested by Mound, they decided to look at it further. Crosby commented there appears to be more upside than downside and that there will be no cost to the City of Orono. Walsh noted there are sewer sites 30 feet away from the lakeshore. Printup noted this would only be serving one property and that he is not sure he likes that idea. While there is no cost to the City, he is not sure what the benefit is. Crosby stated the benefit is probably more environmentally long-term. Walsh noted the City created a development review committee to make things easier to accomplish, especially if it makes sense. Crosby commented the City is not in the business of saying no simply to say no. Seals stated she is not convinced there is no issue with boring under the lake. Johnson stated the City will want to have the confidence that it is a good system and that the lake is protected. Crosby stated in his view getting rid of the old septic system would be more beneficial. Seals stated they should perhaps do Big Island first, and that while she can appreciate both sides, she is not totally convinced. Johnson stated if the City of Mound is going to take responsibility for it in the future, he is more comfortable about it. Printup questioned what would happen next if other single properties want to be included in the MUSA. Johnson stated one of the components for Big Island is that they have to have a septic tank compliance test every few years and that there are issues with the soil. The current system is not a super system and the City does not push them to stay within their compliance period. If city sewer ended up out at Big Island, it would potentially clean things up and the City Council will just need to trust that the engineering piece is done appropriately. Crosby indicated he is comfortable with it. Walsh stated generally there appears to be support on the Council for the request. Barnhart noted any conditions the City Council would like to see would be part of a formal agreement. Seals stated it would be helpful to see some of the science behind this, especially because there are already some problems out on the lake and the City wants to ensure there will be no issues. Page 15 of 16 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, March 11, 2019 7:00 o'clock p.m. Gates noted those items will be covered in the formal application and that they will need to go back before the Planning Commission and City Council before anything is approved. MAYOR/COUNCIL REPORT Seals stated whenever there are impending storms, the fire department has some of its volunteers be at the station to help improve their response times. Seals stated that is not very costly but it is a great benefit to the citizens. Crosby noted on March 2nd Marleena Dieterich from Delano away in a car crash in Independence. Crosby encouraged Orono's residents to contact their representatives and request that a complete jersey barrier be installed for the whole length of Highway 12 to help stop fatalities on that road. Crosby stated his heart breaks for this young girl's family and that they should not let it happen in vain. Walsh noted on Wednesday at noon he will be speaking with the Chamber of Commerce at the fire station and that the residents are invited to attend. That evening there will be a meet the mayor night in Mound, with the mayors from the Cities of Mound, Minnetrista, and Orono being in attendance. CITY ADMINISTRATOR REPORT Rief reported Staff is in active mode of trying to open storm drains. The City had over six inches of water sitting on Watertown Road and the meteorologists are predicting another two to three inches of rain over the next few days. If someone sees an issue, please call the Public Works Department. Crosby requested Staff also verify that the fire hydrants are as clear of snow and ice as possible. CITY ATTORNEY REPORT • 15. CLOSED MEETING The meeting will be closed as permitted by Section 13D.03 to discuss the City's labor negotiation strategy related to the City's negotiations with the LELS union. Crosby moved,Printup seconded,to enter into closed executive session to discuss labor negotiations. VOTE: Ayes 5,Nays 0. (The City Council went into closed executive session from 8:55 p.m. to 9:42 p.m.) ADJOURNMENT Crosby moved,Printup seconded,to adjourn the Orono City Council meeting at 9:47 p.m. VOTE: Ayes 4,Nays 0. ATTEST: Anna Carlson, City Clerk Dennis Walsh, Mayor Page 16 of 16