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Home My WebLink About09-23-2019 Council Work Session PacketOrono City Council Work Session Monday, September 23, 2019 Council Chambers 6:00 p.m. AGENDA 1. Slope Stabilization 2. Minnetonka Beach Water Services Agreement Discussion 3. Dakota Trail Extension Update Annual: • Budget: Part of June, All of July, August and October. • City Administrator & Police Chief Update (3 times per year for 15 minutes) Previous Work Session Topics August 26, 2019 • Budget • Department Mission/ Vision/ and Goals • City Owned Properties (Policy) (added 6-24) • Marinas August 12, 2019 • Accessory Buildings (size/ acreage ratio) • Average Lake Shore • Prioritize general amendments CITY OF ORONO MEMORANDUM DATE: September 23, 2019 TO: Dustin Rief, City Administrator FROM: Jeremy Barnhart, AICP, Community Development Director RE: Slope Stabilization Councilmember Johnson noted the time it took to process a slope stabilization permit for a property on Fagerness Point (1905 Concordia) and inquired as to possibilities to speed up that process. Currently, slope failure repair involves an Interim Use Permit (IUP) due to grading work exceeding 50 cubic yards in the 0-75 lake yard. Some repair proposals involves the placement of structures in the 0-75, which triggers a variance. The 1905 Concordia project proposed an underground retaining wall system to stabilize the slope; a variance and IUP was processed. The applicant for 1905 Concordia applied for a land use permit on June 19th, which was approved by the City Council on August 12th. The applicant applied for the permit to do the work on August 30, the permit was issued on September 10. Total process from land use application to permit issuance was 84 days, of which 55 was the land use application process and 18 were the period between LU approval and the application. To speed up the process, a possible solution is to have the IUP process not apply to slope failures. This would require an ordinance amendment, potentially one where staff would review the proposal with certain parameters, including a certified civil engineer approval of a solution to provide confidence in the solution and to avoid shore land grading under the guise of slope failures. With direction, staff will begin the development of an ordinance amendment. CITY OF ORONO MEMORANDUM DATE: September 23, 2019 TO: Mayor Walsh, City Council FROM: Dustin Rief, City Administrator RE: Minnetonka Beach Water Agreement Discussion The City of Minnetonka Beach has been in discussion with City staff for over a year about providing water to Minnetonka Beach. Minnetonka Beach engineer asked the City of Orono to provide guidance for a 2 year interim water supply agreement for supplying water to Minnetonka Beach during water tower renovation/replacement. Staff has reviewed the information and is proposing the following. Facts: Minnetonka Beach utilizes approximately 80,000 gallons of water per day with a max daily usage of 250,000 gallons. Minnetonka beach supplies approximately 29 million gallons of water a year. Orono and Minnetonka Beach have 2 interconnections and there is an emergency water supply agreement last updated in 1976. The connections are not metered. The interconnections have not been opened in over a decade. Staff has reviewed the information and is proposing the following options for discussion: Term: The city would offer two options short term or long term. a. Short term agreement 2 years: would correlate with option one or option 2 of rates b. Long Term Agreement indefinite: we would propose only using option 2 of the rates 2. Interconnection: Require Minnetonka Beach to upgrade and maintain 2 city interconnects to add water flow meters. Propose water main improvements from water tower to interconnect in Orono to be funded 50% each. Improvements within Minnetonka Beach will be solely the cost of Minnetonka Beach. These improvements should be completed within 5 years. 3. Rates: We propose offering them two options for rates a. Option 1: We would implement our tiered rate structure x number of households the same as Orono users but at a wholesale calculation. 2020 Rates are expected to need an increase. 2019 Rates are for presentation purposes only proposed rates subiect to 2020 Rate increase MTKA Beach per quarter Proposed From(Gal) To (Gal) Rate per 1000gal Tier 1 Bulk (per residential connection) 0 15000 $ 5.24 Tier 2 Bulk (per residential connection) 15001 25000 $ 7.33 Tier 3 Bulk (per residential connection) 25001 $ 11.00 # of Connections 234 From(Gal) To (Gal) Rate per 1000gal Tier 1 Bulk - 3,510,000 $ 5.24 Based on # connections x tier Tier 2 Bulk 3,510,234 5,850,000 $ 7.33 Based on # connections x tier Tier 3 Bulk 5,850,234 - $ 11.00 Based on # connections x tier b. Option 2: We would sell water at a flat bulk rate per 1000 gallons used. Proposed rate of $6.25 per 1000 gallons for 2020 and $6.50 in 2021, with a 5% increase for each year after. Rates Option 1: PROS 1. City would gain more in revenue 2. Pricing would be equal to Residents 3. User rate increase would be lower due to extra revenue. 06�y 1. Minnetonka Beach may not consider this to be politically viable as a reseller, thus no agreement means no additional revenue Rates Option 2: PROS 1. City would gain more in revenue 2. Pricing would allow for Minnetonka Beach to consider a long term agreement 3. Potential for Long Term agreement would mean additional revenue for a long period 4. User rate increase would be lower due to extra revenue. CONS 1. Minnetonka Beach will still have a higher cost to operate. Staff recommends a long term agreement with a flat wholesale rate structure and mandatory interconnect improvements. Rates and structure are open for discussion. CITY OF ORONO MEMORANDUM DATE: September 23, 2019 TO: City Council & Dustin Rief, City Administrator FROM: Adam Edwards, Director of Public Works/City Engineer RE: Dakota Trail Extension Update Purpose. The purpose of this Memorandum is to provide and update on the design work for the trail extension in Navarre to the Dakota Trail and receive guidance on whether to continue with the project development or not. kin -L. ,Ty u Background. In 2016 the City of Orono began discussion with Hennepin County and Three Rivers Park District about creating a safe connection between the Dakota trail and Navarre via County Round 19. This trail extension will close the gap between the Dakota and the existing sidewalk that ends at Livingston thereby connecting the Dakota Trail to the downtown, existing park and ride facility and Navarre Park. Three Rivers Park District agreed to take the lead in design work for the project. In March of 2019 the city entered into a formal cooperative agreement with Hennepin County and the Three Rivers Park District to commence design work. Update. SRF Consulting under supervision of Three Rivers Park District has completed the 60% design and produced a revised cost estimate for the project. Current estimates place the total cost of the project at $495,000- $580,000. The agreed upon 1/3 cost split results in an estimated cost of $165,000-$200,000/ agency. One of the terms of the agreement was that should the project estimate exceed $300,000 at any point, the parties agree to discuss additional funding and/or terminate the project with each party paying a third of the expended costs to date. Based on this provision staff from the three agencies are seeking guidance from their respective councils or boards and will meet in early October to coordinate any future work on the project. Cost. The cost to the City based on the current estimate would be will be $165,000-$200,000. Funding. The funding for the project has be identified in the Capital Improvement plan from the Parks Enterprise fund. COUNCIL GUIDANCE REQUESTED Discussion and direction to staff on whether to continue with design and development of a trail connection along Country Road 19 between Dakota rail regional trail and Livingston Avenue. Reference A. Dakota Rail Regional Trail Navarre Connection Cooperative Agreement, dated March 2019