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HomeMy WebLinkAbout08-26-2019 Council Minutes MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,August 26,2019 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, and Matt Johnson. Representing Staff were City Administrator Dustin Rief, Finance Director Ron Olson, 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 7:00 p.m., followed by the Pledge of Allegiance. APPROVAL OF AGENDA CONSENT AGENDA 1. CITY COUNCIL MEETING MINUTES OF AUGUST 12,2019 2. CITY COUNCIL WORK SESSION MINUTES OF AUGUST 12,2019 3. CLAIMSBILLS 4. APPROVAL OF 2019 COMMERCIAL KENNEL LICENSE 5. FIRE DEPARTMENT DOOR ACCESS IMPROVEMENT REQUEST 6. OLIVER HILL—FORMAL ACCEPTANCE PUBLIC IMPROVEMENTS— RESOLUTION NO. 7010 7. 2017-18 SANITARY SEWER I&I GRANT RESOLUTION NO. 7011 8. WAYZATA BOULEVARD(CSAH 112)PHASE TWO LANDSCAPING DESIGN PROPOPSAL 9. LA19-000033—CHUCK ALCON ON BEHALF OF ERIC AND ANDREA LARSON, 690 BROWN ROAD,FINAL PLAT AND DEVELOPMENT AGREEMENT APPROVAL 10. LA19-000049—ESKUCHE,2605 NORTH SHORE DRIVE,VARIANCES AND INTERIM USE PERMIT—RESOLUTION NO. 7013 11. LA19-000066—ORIGINIAL FILE#17-3968—FREDERICK JOHNSON, 1565 ORCHARD BEACH PLACE,2ND EXTENSION OF RESOLUTION NO. 6802—RESOLUTION NO. 7014 Crosby moved,Johnson seconded,to approve the Consent Agenda as submitted. VOTE: Ayes 3, Nays 0. PUBLIC COMMENTS None Page 1 of 5 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,August 26,2019 7:00 o'clock p.m. PRESENTATION 12. 2018 AUDIT PRESENTATION Michelle Hoffman and Troy Gabler, Clifton, Larson and Allen, were present. Michelle Hoffman provided an overview of the City's 2018 audit, and noted that the primary responsibility of the audit is to provide an opinion on the fairness of the presentation of the financial statements. Following that review, Clifton,Larson issued an unmodified(clean)opinion on the financial statements, which is the best opinion that can be received. Two new GASB standards were implemented this year and included No. 75 (OPEB) and No. 89 (capitalized interest). Neither of those two standards impacted the City substantially. There were no legal compliance exceptions noted in 2018. Internal control exceptions noted were preparation of financial statements, segregation of duties,material audit adjustments, and check signing. These exceptions are somewhat typical for a city the size of Orono. As it relates to the General Fund-Unassigned Fund Balance,the final number was consistent with past years and comprised approximately 54 percent of the budget. The primary source of revenue for the General Fund comes from property taxes, followed by licenses and permits, intergovernmental, and user fees. Total revenue was $8,864,000 in 2018. As it relates to expenditures, public safety is the largest expenditure, followed by general government, streets,and recreation and parks. Troy Gabler provided an overview of the City's Other Governmental Funds. Orono's fund balance for all its funds is in good shape. Property taxes has been slowly increasing. Licenses and permits are consistent with past years and there were $203,000 park dedication fees paid in 2018. Intergovernmental funds consist of MSA funds and was higher in 2018 than in previous years. Debt service has been reduced quite a bit,which is due to the payoff of a debt issued in 2017. The recycling and cable television funds are also fairly steady. The water, sewer,and storm water funds are in good shape,with no fund having a negative balance. Operating income has remained steady with the exception of the water fund, which has decreased and should be monitored in the coming years. Hoffman noted there are other items included within the enterprise funds and that it is not unusual for some of the operating funds to have a negative balance until those non-operating funds are included in. Gabler reviewed the City's future debt service and noted it will remain fairly steady for the next four years. Hoffman stated overall the City is in good financial shape. Walsh noted interest payments after 2023 will be reduced significantly since the City has not been taking on any new debt. Rief noted there will be an uptick in the Water Fund revenue late next year due to some new users coming in. The City Council took no formal action on this item. Page 2 of 5 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,August 26,2019 7:00 o'clock p.m. FINANCE DIRECTOR REPORT 13. REQUEST FOR PROPOSALS FOR AUDIT SERVICES Olson noted the 5-year review of the City's audit services was due in 2017,but due to significant staff turnover,that did not happen. At this time Staff is recommending approval of the Professional Auditing Services RFP and to establish an ad-hoc Professional Auditing Services RFP review committee. Crosby moved,Johnson seconded,to approve the request for proposals for Professional Auditing Services and the appointment of an ad hoc Professional Audit Services RFP Review Committee. VOTE: Ayes 3,Nays 0. MAYOR/COUNCIL REPORT Crosby commented he just recently returned home from Alabama and that it is nice to be back. Johnson stated he has nothing to report. Mayor Walsh reported Channel 5 and Channel 45 toured Big Island with the City Administrator and some representatives from Big Island's 501(c)(3). The segment aired on TV last week and a link has been provided on the City's website. Walsh noted school starts next week. CITY ADMINISTRATOR REPORT 14. PROPERTY PROPOSAL DISCUSSION Rief stated Staff is looking for direction on a proposed property purchase or easement access on Parcel ID 3411823320002, located adjacent to the northern edge of Fire Station 1 located at 340 Willow Drive. In July of 2019, Tony Sarenpa approached the Council during public comment and proposed to the City the possibility of purchasing the parcel. The Council directed the City Administrator meet with Mr. Sarenpa to discuss the proposal. The two options proposed are as follows: a. Purchase property. It is currently priced at$200,000. b. Provide an easement to allow access to Willow Drive. Staff recommends providing an easement through City property to access the parcel. The process would go before the Planning Commission. Walsh asked where the easement would be located. Rief pointed out two possible easement locations and noted one of the concerns with an entrance located near the bridge relates to traffic safety reasons. Any easement would go before the Planning Commission. Crosby stated with emergency traffic going in and out, it seems like it would become less safe near the fire station. Page 3 of 5 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,August 26,2019 7:00 o'clock p.m. Walsh stated the two questions are whether the City is interested in purchasing the land or providing an easement and that in his position the City is really not in the business of purchasing property. Johnson stated he does not see any reason to put an easement on City property for access to that property. Crosby suggested the entrance be off of Willow rather than on either side of the fire station. Walsh noted the speed limit is 30 mph in that area. Johnson noted there was some interest by Council Member Printup about acquiring the parcel to the north to expand the community garden. Walsh stated the City is not really interested in purchasing the property. Crosby indicated he is also not interested in the easement since it will make it a more hazardous situation and that the entrance should be off of Willow. Johnson asked whether it is the City's responsibility to make a lot more usable. Mattick stated they have to allow access at some level, but the City could provide them access to Willow. Walsh stated unless there is something that precludes them from using Willow,that is what it should remain. Walsh noted two Council Members are also not here tonight to weigh in on this item. Johnson and Crosby indicated they are not interested in acquiring the property. Tony Sarenpa stated when he first brought forth the proposal, it seemed pretty clear that access onto Willow would not be allowed,and with no interest in selling the garden,the options were limited. At some point it appears the intent was to have some type of development on the community garden parcel, which has since changed. As it relates to this parcel,there may be some issues with setbacks since the lot is long and skinny and that he is not sure what the impact of that will be for the adjacent parcels. Sarenpa stated it seems to make sense for the City to own it and that it was something that got overlooked when the road was done. Walsh suggested Staff look closer at the access on Willow. Rief stated the Planning Department will vet that closer, and if it does not meet the City's requirements, Staff will bring this item back before the Council. Rief stated he will try to have a meeting with Mr. Sarenpa next week. CITY ADMINISTRATOR UPDATE,CONTINUED Rief stated he reached out to the LMCD about the $25,000 included in their 2020 budget for lobbying, but he has not heard back from them at this point. Page 4 of 5 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,August 26,2019 7:00 o'clock p.m. CITY ATTORNEY REPORT CLOSED SESSION Crosby moved,Johnson seconded,to enter into closed session at 7:52 p.m.,as permitted by Section 13D.03 to discuss the City's labor negotiation strategy related to the City's negotiations with Local No. 49 Union. VOTE: Ayes 3,Nays 0. (The City Council entered into closed session from 7:47 p.m. to 8:09 p.m.) Walsh moved, Crosby seconded,to reopen the Orono City Council meeting at 8:09 p.m. VOTE: Ayes 3,Nays 0. ADJOURNMENT Walsh moved, Crosby seconded,to adjourn the Orono City Council meeting at 8:10 p.m. VOTE: Ayes 3,Nays 0. ATTEST: [ 4f 410 Anna Carlson, City Clerk Dennis Walsh,Mayor Page 5 of 5