Loading...
HomeMy WebLinkAbout07-22-2019 Council Minutes MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,July 22,2019 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, and Victoria Seals. Representing Staff were City Administrator Dustin Rief,Finance Director Ron Olson, Development Director Jeremy Barnhart, City Planner Melanie Curtis, 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 JULY 8,2019 2. CITY COUNCIL WORK SESSION MINUTES OF JULY 8,2019 3. CLAIMS/BILLS 4. 2019 TRANSFERS AND PAYMENTS 5. APPOINTMENT OF 2019 SEASONAL EMPLOYEES 6. 2019 STORMWATER IMPROVEMENTS PROJECTS 7. LA19-000039—BRANDSTETTER CARROLL, INC., ON BEHALF OF CAMP TEKO,645 TONKAWA ROAD, CONDITIONAL USE PERMIT AND VARIANCES— RESOLUTION NO. 7003 8. LA19-000046 JOHN KRAEMER& SONS ON BEHALF OF OCBR 1,LLC,855 OLD CRYSTAL BAY ROAD SOUTH AND 2885 LITTLE ORCHARD WAY,DRAINAGE AND UTILITY EASEMENT VACATION—RESOLUTION NO. 7004 9. LA19-000052 SVEN GUSTAFSON ON BEHALF OF ORONO ORCHARD,LLC,385 ORONO ORCHARD ROAD SOUTH, DRAINAGE AND UTILITY EASEMENT VACATION—RESOLUTION NO. 7005 14. CITY OF ORONO: CHAPTER 34 TEXT AMENDMENT,AMENDING TITLE IV BUSINESS, LICENSING,LIQUOR REGULATION PERTAINING TO TYPES OF LICENSES Crosby moved, Seals seconded,to approve the Consent Agenda as revised,with the addition of Item No. 14. VOTE: Ayes 4,Nays 0. PUBLIC COMMENTS None Page 1 of 10 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,July 22,2019 7:00 o'clock p.m. FINANCE DIRECTOR REPORT 10. SECOND QUARTER FINANCIAL REPORT Olson provided a recap of the City's second quarter financials, noting that these numbers are unadjusted at this time. As it relates to the City's revenues, 52 percent of that consists of property taxes. Licenses and permits are at 69 percent of budget. Last year the City was at 84 percent of the budget at the same time, primarily due to the school project. Police service contracts are at 85 percent of the budget. Charges for services consists of the police service contract as well as other items. The golf course is at 52 percent for the year. Olson indicated he is not sure how that portion of the budget will end up at the end of the year due to the poor weather at the beginning of the season. Interest is not allocated to all the funds until the end of the year, which is why those numbers are low at this time. Based on these numbers, it is anticipated the City will end up between 102 and 104 percent of revenue unless something unexpected happens. Expenditures through the first half of the year are also within budget. The majority of the departments are either just above 50 percent or just under 50 percent,which is where they should be for this time of year. The only budget that is slightly concerning is the Public Works Department, due largely to the heavy snowfalls experienced this past winter. The golf course is at 56 percent of budget at this point and that is related to a significant amount of money being spent at the beginning of the year getting the course ready to open. Overall the City is at 49.76 percent of budgeted expenditures. Olson reviewed the top ten vendors for the second quarter. GMS Asphalt was the number one vendor for the second quarter as a result of the 2019 street improvement projects. The second top vendor was the League of MN Cities, followed by Health Partners, sewer charges and fire service,the Metropolitan Council Environmental Services for wastewater and SAC charges, Bolton&Menk, and Dodge of Burnsville. Seals asked if the City has looked at the market recently to compare rates for health insurance. Olson indicated Staff has not done that at this point and that the City has to provide Logis with a six- month notice if the City will be using another service. Logis is a consortium of approximately 20 cities that have gotten together for health insurance. Bids are obtained every four or five years. In the past there has been two providers but within Logis there are a number of different plans cities can choose from. A few years ago the City went to a high deductible plan in an effort to save money on premiums. Seals asked if there is a way to have Logis look at their options more often than every four to five years. Olson stated the decisions made by Logis are made by their executive board and that Orono has membership in the group, along with the other cities. Seals commented it seems like this item consistently goes up and that the City should indicate to Logis that they are not meeting their expectations. Olson stated to his knowledge this is the year Logis will be going out for bids and by next June the new bids should be in. The most likely place the City could obtain insurance through is called PEIP, Public Page 2 of 10 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,July 22,2019 7:00 o'clock p.m. Employee Insurance Plan,which is through the State of Minnesota. Their increases have been running in single digits rather than double digits like some of the others. Seals asked why the City could not combine forces with the school district in order to obtain a better rate. Olson stated he is not sure where the Orono School District purchases their insurance through and that part of the reason for the higher premiums is that Orono does not have a good loss rating. According to the numbers, HealthPartners has paid out more in claims than what the City has paid in, which makes Orono a group that a lot of entities do not want to partner with. Orono went out for RFPs approximately five years ago and not one insurance company provided the City with any proposal due to that loss rating. Olson stated it is his belief that situation has not improved substantially but that Staff will be undergoing that process over the next nine to ten months. Crosby suggested the City consider implementing a wellness program to help get their rates down. Olson reviewed the year-to-date top vendors. Bond Trust Services Corporation,who handles the City's debt service payments, is the top vendor, followed by GMH Asphalt,HealthPartners,the City of Long Lake, Metropolitan Council Environmental Services,the League of Minnesota Cities, and Bolton& Menk. Seals asked why the City's payment to the Metropolitan Council Environmental Services is so high. Olson indicated Minnesota is on pace for the wettest decade on record and that a substantial amount of that is related to payments for I&I. Walsh commented hopefully the lining of the sewer pipes will help minimize that. Edwards stated the Public Works Department is looking at doing a sewer lining project this fall. Olson stated overall the City's budget is looking to be in good shape. Crosby asked whether the Dayton project is still going forward. Olson stated on that project cash was provided rather than a letter of credit, which was then refunded, but that it is not considered a cost to the City. The City Council took no formal action on this item. PUBLIC COMMENTS,CONTINUED Tony Sarenpa,2630 Fox Street, stated he is here tonight about the Miller property that is located just north of the fire station. Sarenpa indicated he has had some discussions with some of the Council Members and Staff about some possible types of opportunity. The property consists of 1.75 acres but is landlocked. In order for some type of development to occur on the property, some type of deal will need to be reached with the City. Walsh recommended he contact the City Administrator to discuss his options. Page 3 of 10 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,July 22,2019 7:00 o'clock p.m. PUBLIC WORKS/CITY ENGINEER REPORT 11. 2019 STORMWATER IMPROVEMENT PROJECTS—COUNTRY SIDE AND OLD CRYSTAL BAY ROAD DESIGN REVIEW Edwards stated this item is to gain approval/direction on the design and associated costs of the project prior to soliciting bids. The City contracted with Bolton&Menk to conduct a drainage analysis and provide recommendations. The estimated cost to complete the project is approximately$207,000. In 2015,the City Council directed Staff to perform maintenance activities on the pipes and associated ditchways in an effort to address the nuisance flooding that occurs during times of heavy rainfall. Those ditches were again dug out in 2018. The City also assisted the homeowners' association with some pond work. In March of 2018,the City Council directed Staff to revisit the issue as part of the 2019 stormwater improvement projects. The scope of the project recommended includes replacement of the 18-inch CMP trail crossing culvert with dual 18-inch RCP culverts, replacement of the 18-inch CMP south of Countryside Drive with 30- inch RCP,replacement of the 15-inch CMP east of Old Crystal Bay Road with 18-inch RCP, removal of 254 feet of 18-inch CMP north of Countryside Drive, and replacement with a ditch and 60 feet of 30-inch RCP. The goal of the project would be a significant reduction in the amount of time there would be flooding during those rain events. Approximately 39 acres feeds directly into these pipes along with another 30 acres into the pond. The costs for the various recommended improvements are as follows: Item 1: Replace 18-inch CMP with 2 x 18"RCP at a cost of$32,886.00. Item 2: Replace 18-inch CMP with 30"RCP at a cost of 88,364.25. Item 3: Replace 15-inch CMP with 18" RCP at a cost of$24,050.25. Item 4: Replace 18-inch CMP with ditch and 30"RCP at a cost of$61,904.25. Edwards noted the total cost of all the improvements would be$207,204.75. Walsh stated at the time this group of residents initially approached the City, he was on the City Council, and that he recommended the pipes be cleaned out. At the time the pipes were not sized correctly and the philosophical question is whether the City has some responsibility to resize the pipes. Walsh commented having a flooded yard can get aggravating but that there does not appear to be any water impacting the structures. Johnson noted if they are talking about four inches of rain in a 24-hour period and it took two hours for it to drain,that might be cut in half with the improvements. The amount of money being considered seems like a lot of money to reduce an inconvenience for a rain event that does not occur on a regular basis. Crosby asked whether any of the neighbors are getting water in their basements. Edwards stated not to his knowledge and that no neighbors are present this evening. The emergency overflow is Countryside Road, which happened in 2013, but that Staff considers this more nuisance flooding. Page 4 of 10 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,July 22,2019 7:00 o'clock p.m. Crosby asked whether Countryside is a private development. Edwards indicated it is. Crosby commented he lives on a private road and his property was flooded in 2013 to the point where he experienced water in his house on the first level. Water in the yard is extremely different than having water in your home. Crosby indicated he spent approximately$50,000 to put drain tile in his yard to address the water issues. Johnson asked if the City knows whether any of the residents are experiencing water in their homes. Rief stated the only time it impacted a house was at a time when their sump pump failed in their basement. The City does not know whether the private drain tile at that property is currently working. Walsh commented it would be helpful if the residents were here to discuss this. Crosby stated the City Council is also talking about setting a precedent. Edwards indicated the Public Works Department has been keeping an eye on this situation over the past few years and that they have observed water has been collecting in a rock drainage way. During some of the 2-inch downpours Staff has observed occasions where water has backed up over the top of the rocks in the drainage way, but they have not seen anything similar to what occurred in the 4-inch rain a few years ago. Walsh noted these are city culverts that might not be sized correctly and that the City has cleaned out the culverts in an attempt to improve the situation. Johnson stated the question is to better understand how it is impacting the residents and that the City recognizes the size of the pipes may be inadequate. Walsh noted the pictures are from before the culverts were cleaned out. Johnson asked if the situation is better or whether Staff is recommending these improvements. Edwards stated he is very leery about spending$207,000 on this issue, but that as a homeowner he would be upset if there was water ponding in his yard every time it rained. The pipes were predominantly installed in the mid-1990s. Based on historical records,the development did change after some of that was installed. One of the things that has caused some issues overall for the development is they installed a privacy berm along Watertown and Old Crystal Bay Road and there were concerns expressed at that time by the City Engineer about the impact on the drainage. After the berm was constructed,it started causing problems. The fixes that were recommended were creating a swale on the inside and outside of the berm, which has been done. Since then, in the later 1990s,the homeowners' association put a number of drain tiles through the development to help address water issues in general throughout the development. Walsh stated if the pond is high,the water will drain slower. Page 5 of 10 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,July 22,2019 7:00 o'clock p.m. Edwards stated the two ponds are supposed to be maintained by the homeowners' association but that he is not sure that is the case. Last year the Public Works Department assisted the homeowners' association in cleaning out the ponds. Seals asked if the City fixed something that the homeowners' association was supposed to be maintaining. Rief stated the City assisted them in opening their culvert and that it was impacting more than just that one corner of the intersection. Johnson asked if extending it up to County Road 15 would help the situation. Edwards stated it would to some extent, and if this work was to be piecemealed, he would recommend starting at the bottom of the system and working your way up. Edwards indicated Staff watched it this spring with the snow melting and that they did not see issues with the spring melts,but it is particular to when there is a mass inundation over a short period of time that the system becomes overwhelmed. Seals asked if the homeowners' association was charged for the work in this situation. Seals noted the City performed some road work for a different homeowners' association and that homeowners' association was charged for it. Seals stated the City Council has to be cautious on performing work that the homeowners' associations have committed to,and that her question is why the City is doing it in some situations but not all situations. Edwards stated in this particular instance,those two ponds are supposed to be privately maintained but that the ponds receive water from approximately 79 acres other than just the development. When something impacts more than just the development,the City has done similar emergency work in other developments to clear out the system since the overall system depends on the ponds functioning properly whether they are privately or publicly owned. Walsh stated he is hearing that the public system is working as well as it can since it has been cleaned out and that he is not hearing any concerns from the residents. Seals stated she drives by there all the time and that she has not noticed a lot of water in the area. Walsh stated unless the City hears something different, there does not appear to be enough of an impact to spend approximately$200,000. Rief stated according to the pictures, it is not directly impacting any structure. Johnson moved, Seals seconded, to reject the stormwater improvements with the request that Staff continue monitoring the situation,and if there appears to be a problem,this item should be brought back to the City Council. VOTE: Ayes 4,Nays 0. Page 6 of 10 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,July 22,2019 7:00 o'clock p.m. 12. MUNICIPAL ICE RINKS Edwards stated he is looking for direction on the disposition of the City's ice rinks. Last year the Council provided direction to add an ice rink to Crystal Bay Park, which was done. At the same time,the Council also directed that the Park Commission review the ice rinks in the City. Since that time, Staff has performed a winter activity survey. At the last Park Commission meeting,they voted to recommend that the City not take on any new ice rinks but continue to maintain the Casco Point ice rink. Staff recommends closing all of the City's ice rinks and shifting resources to other winter activities. If the Council wishes to continue providing skating at Casco Point or any other park,the rinks should be upgraded with lighting in order to allow for use during the week and not just on the weekends. Walsh noted he attended the Park Commission meeting and it was pointed out that Casco Point is dedicated as an ice rink and that he would agree with the lighting for that area since Casco Point is kind of a gathering point for the residents of that neighborhood. Johnson stated what is missing is a private/public partnership in this situation. If the hockey associations do not have a need for the extra ice rink space, it may not be necessary to have the additional ice rinks. At the present time Tonka Bay is being used all the time and that rink has lights that can turn on and off and the hockey team practices there. Johnson indicated he is in favor of improving the Casco Point ice rink and that perhaps the Park Commission could reach out to the hockey association to see if they are interested in partnering with the City. Crosby stated the problem last year was the horrible winter. Johnson stated his observation was that Crystal Bay was more of a backyard rink than a municipal rink and in his view the City can do better than that. Johnson indicated he is in favor of improving the Casco Point rink and that he would like to see some lights in there. Johnson stated the City should do a really good job at one ice rink and see how it goes. Walsh noted the Park Commission is also trying to bring sledding to the golf course and directing resources there. Walsh indicated he would be in favor of upgrading the ice rink at Casco Point and pausing on the ice rink at Crystal Bay. Edwards stated last year the Orono Hockey Association did reach out to the City on partnering and Staff said that they were sure the City would entertain that possibility. Walsh commented it would make sense for the Park Commission to deal with that and that the City kind of jumped at this quickly last year. Going forward,the Parks Commission could keep track of it and reach out to the hockey association. Johnson noted the City received a grant for Bederwood last year and asked whether there is going to be an ice rink as part of that project. Seals indicated it will be a soccer field. Page 7 of 10 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,July 22, 2019 7:00 o'clock p.m. Johnson stated Bederwood would be a great spot for an ice rink. Edwards indicated the project is currently out for bid right now and that he will be bringing that forward to the City Council on August 12. Johnson asked how many rinks there are in the City. Edwards indicated there are two and that they still have the foundations of a rink over at Hackberry. That rink has not been flooded for three or four years. A clay base and berms are still there. However, none of the ice rinks have boards,which would be required for hockey. The City Council took no formal action on this item. PLANNING DEPARTMENT REPORT 13. LA19-000017 STEPHEN AND JENNIFER PAIDOSH,4300 NORTH SHORE DRIVE AND 1453 PARK DRIVE,RIGHT-OF-WAY VACATION—RESOLUTION NO. 7006 Stephen Paidosh,Applicant, and Justin O'Keefe, 1453 Park Drive,were present. Curtis noted the City Council reviewed this application at their June 10 meeting. At that time the Council directed Staff to bring back a vacation approval resolution for consideration. The Council directed that the draft approval resolution include a condition requiring a drainage and utility easement covering the existing utility. The Council also discussed an agreement between the adjacent property owners and the City regarding compensation. Last week the applicant provided an offer of$35,000 in total for the property to be vacated. Staff has provided a draft approval resolution for the Council's review. The necessary easement language has been incorporated into the resolution. Stephen Paidosh noted Justin O'Keefe is the adjacent neighbor to this right-of-way. Paidosh stated after trying to come up with some type of value,the two of them decided they wanted to do something that was good-hearted and provide the City with some funds that could be put to good use. Two real estate developers were contacted. Brian Benson with Coldwell was one of the real estate agents and he has developed some properties around Orono. The purpose of the discussion was to try to understand what the value of the land would be based on whether it is considered buildable or not buildable with the drainage ditch. His opinion was that the land the way it is today is unbuildable, so it comes down to what the value is to either of them, which is how they arrived at the$35,000. Paidosh noted they have been maintaining the area over the years and that they plan to split those costs between the two of them. O'Keefe stated he is actually not a Minnesota resident but that he bought the property approximately five or six years ago. One of the reasons he liked the property was because there was an easement and the property taxes were pretty low. The property is only used by them in July and August. When the Paidoshes approached him about this vacation, he originally was not in favor of it due to his property taxes increasing,but at the current time the Paidosh's driveway is really dangerous and they are trying to relocate it on to Park Drive,which makes a lot of sense. After a conversation with his wife,they decided to split the cost 25/10. The 25 feet on his side does not have the drainage pipe. Page 8 of 10 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,July 22,2019 7:00 o'clock p.m. O'Keefe indicated he is not going to sell this place and that his property taxes will likely be going up by $2,000 to $3,000. Over the next 15 to 30 years, the City will experience a lot of revenue from the increased property taxes in addition to the$35,000 payment. Crosby asked what the lot size is right now. O'Keefe indicated it is about 50 feet wide on the street and 45 feet at the lake. At the time the property was purchased,he did not realize how noncompliant the house was. There is currently a retaining wall that is approximately one foot over the easement line. Paidosh stated the fire pit that is on the property came from a gentleman who lived in the house previously who remodeled the house. That area was where he pretty much burnt all of his lumber. When it was realized what transpired there, it was easier to pave that little area and put a fire pit there. Walsh noted the Council has already agreed on the easement and that it was more of the value issue for the right-of-way. Walsh indicated he was pleasantly surprised to see the number and that the money can be put towards something good in the City. Johnson moved,Crosby seconded,to adopt RESOLUTION NO. 7006,a Resolution Vacating a Portion of Forest Boulevard and a Portion of Bluff Street,and to accept the$35,000 contribution. VOTE: Ayes 4,Nays 0. MAYOR/COUNCIL REPORT Seals stated she spent the weekend down in Rochester with the Orono/West Tonka Soccer Club. If you are a Mound or Orono resident, it was good to see the club bring those two communities together. Seals reported she and Mayor Walsh met with the Mayor of Mound about a joint grant that would be submitted for Orono Westonka Soccer club for an indoor space. Johnson stated he participated in a few conversations concerning Big Island and that there is some question about whose responsibility it is to find a solution to the recent e-coli issue that occurred off of Big Island. Johnson stated in his view there are some real concerns about that,particularly since there are no bathroom facilities available for people other than the boats themselves. To address the situation,the City should encourage the LMCD to have some type of facility out on the water, such as parking a barge in the area that would have restroom facilities. Johnson commented this is not the first time the issue with e-coli has happened and it likely will continue to happen. As a result, it is important to consider some type of plan to deal with it since it does negatively reflect upon Orono and the lake in general. Johnson recommended the City engage their LMCD representative, who in turn could encourage the LMCD to look at different solutions. Seals noted the City has had bathroom facilities out on Big Island in the past and they have been vandalized. Seals stated the LMCD has taken the stance that they own and regulate the water and so they are the entity that should address this issue. Crosby stated the Big Island issue can be taken care of by people being more responsible and perhaps cutting down on the amount of alcohol they drink. Page 9 of 10 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,July 22,2019 7:00 o'clock p.m. Crosby stated he has noticed the lack of harvesting this year on the lake and that it has made a positive impact on the weed flow,which is a lot less compared to previous years. The water clarity has also improved. Crosby noted his daughter's fiancé' has deployed to Kuwait and Iraq, and that he would encourage people to thank a veteran for their service and acknowledge the sacrifices they have made. Crosby stated he would also like to recognize the City of Edina and St. Louis Park for reversing their decision on the Pledge of Allegiance. Saying the Pledge of Allegiance honors the flag, the country, and the veterans who have served to help protect America's freedom. Walsh noted the Spirit of the Lakes event in Mound was held last weekend. The parade unfortunately was canceled due to the rain. Corn Days in Long Lake is coming up on August 11 and the Orono City Council will have a float in that event. CITY ADMINISTRATOR REPORT Rief reported the newly paved roads are nearly finished but still need a second coat. CITY ATTORNEY REPORT CLOSED SESSION Crosby moved, Seals seconded,to enter into closed session at 8:20 p.m.,as permitted by Section 13D.03 to discuss the City's labor negotiation strategy related to the City's negotiations with LELS, Patrol. VOTE: Ayes 4,Nays 0. Seals moved,Johnson seconded,to reopen the Orono City Council meeting at 9:04 p.m. VOTE: Ayes 4,Nays 0. ADJOURNMENT Crosby moved, Seals seconded, to adjourn the Orono City Council meeting at 9:05 p.m. VOTE: Ayes 4,Nays 0. ATTEST: , ` , • dr • ,,►_ Alla Carlson, City Clerk Dennis Walsh, Mayor Page 10 of 10