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HomeMy WebLinkAbout03-09-2010 Council Work Session Minutes Orono City Council Committee of the Whole March 9, 2010, 6:30 p.m. Orono City Council Chambers Present: Mayor Jim White, Council Members Cynthia Bremer, Lili McMillan and Jim Murphy; Assistant City Administrator for Long-Term Strategy Mike Gaffron, Finance Director Ron Olson, Planning&Zoning Coordinator Melanie Curtis, Public Works Supervisor pon DeBaere, Building Official Lyle Oman and City Clerk Lin Vee 1. Geo-thermal Presentation • Oman introduced Jim Cusak, an Orono resident who has installed geo-thermal furnaces for 13 years, and Hollis Linehan, Executive Vice President of MEP Associates, a company that specializes in renewable energy. • Oman explained the city facilities are 17 years old with 17-18 furnaces. The natural gas heating and air conditioning systems are getting to the end of reasonable use. Staff has been looking at options for system upgrades, include geo-thermal systems. • Geo-thermal has been in use for many years and is recognized as one of the best heating and cooling solutions available today, especially for using renewable energy. • The city's existing system would make an excellent conversion to geo-thermal as it would be a cost- effective installation and operating system. • An electric base system is used for heating and cooling along with a loop field (pipes) outside. • Geo-thermal systems are generally about 30% more efficient. The real benefit is the way it works by providing carbon reduction. • Basically the system moves heat from inside the building and puts it in the ground in the summer; and in the winter the system takes heat from the ground and puts it back into the building. • The contractors propose to do a feasibility study to understand how a new system would affect the building and economic situation. They design a model building in a computer simulation, including lights, occupancy, walls, etc. and analyze the existing utility bills. The existing system is then replaced with a geo-thermal system to use as a basis for estimating the energy savings. • Average payback for a changeover is about 8 years. • There is an additional cost to install the pipe/loop field in ground, which has a life expectancy of 100 years. When inside equipment needs to be replaced, the loop field wouldn't have to be replaced. Geo- thermal equipment has been outlasting other types of systems for up to 30 years. The loop field would be about the size of the building and could be installed under parking lots or in any green space (preferable). Once the loop field is installed, pavement can be repeatedly laid over the top of the loop field. • The system uses electricity. Electricity prices fluctuate much less than natural gas. • The system is designed for ground temperatures at 20-25 below zero. Supplemental heat is generally not required. Council had some concern that a back-up system may be needed. • Fans move the air, similar to existing equipment. A freezer/refrigerator removes heat from the unit, it doesn't make the food cold. Geo-thermal operates in a similar fashion. • Grants and stimulus funds are available for public facilities, but there are many applicants. There are also some monies available as a tax credit; since the city doesn't pay taxes it would be available as a 10% gra nt. • The cost for a feasibility study is approximately$3000. Xcel Energy would reimburse 50%of the cost after approved. • The Public Works building doesn't lend itself to geo-thermal because it has radiant heat. The contractors have some other suggestions for the Public Works building. • Oman has scheduled an energy audit with Xcel Energy. • Rough estimate of cost: $25 per square foot for new systems. In the city, some ductwork exists that could be used. Contractor would need to do further analysis including the costs for the loop field installation. Page 1 of 5 Orono City Council Committee of the Whole March 9, 2010, 6:30 p.m. Orono City Council Chambers • If the system were abandoned, the pipes in the loop field would need to be filled, similar to wells. • The soil in this area is conducive to the geo-thermal system and generates high BTUs. 48 degrees is the common ground temperature. • Council directed staff to move forward with a feasibility study. 2. CommonBond Discussion • Gaffron reviewed the documents included in the packet outlining the CommonBond proposal. • The City Attorney is reviewing a draft purchase agreement. Council will need to determine how they want to make the city property available to CommonBond. Options include sale at fair market price, below market price, at no cost (donation), long-term lease similar to Orono Woods Senior housing, or some other method. White stated the city needs to get an appraisal and should consider a redevelopment agreement instead of a business subsidy. • Amanda Novak, representative from CommonBond, expressed her appreciation for the letters of support provided by the city. Their next major application for tax credits is due June 17`h. They need some sort of site control as part of the application. It is a competitive application based on point criteria. Points could be acquired by items such as a land donation or reduction of fees. o If CommonBond is required to pay the full $600,000 in development fees, they would need to reduce the number of affordable units. • McMillan asked what percentage of occupants would be from Orono. Novak estimated 65-70%would be people who would move from outside Orono from communities such as Plymouth, Long Lake, Maple Plain, and Wayzata. • Murphy questioned how the public would become informed about the project. Gaffron responded that the Comp Plan public hearing will provide an opportunity for the public to discuss properties that are proposed to be reguided. Staff has committed to send notice to individual property owners whose property is affected, but could consider a larger area for notification. Reguiding doesn't guarantee this project would be approved and developed. • Rezoning follows Comp Plan approval by Met Council. The rezoning process involves a complete review process and notification of neighbors within a specific distance. • Gaffron noted there would be very few homes that would be affected by the CommonBond project. • McMillan expressed concern about the timing of the project. People are concerned about tax increases. They want to be able to stay in Orono and helping others to move into Orono may have a negative perception. People have very little patience for government and the city may get a backlash from the larger community in addition to the neighbors. • White stated they will need to provide information and justification to the public and show financial impacts. • Novak suggested they could distribute flyers to the neighborhood presenting the project concept. � Council agreed that CommonBond should submit an application that would follow the normal review process, including Planning Commission and Council meetings. • Novak stated an application could be submitted for the April Planning Commission meeting with Council review in May and asked if the city would want a purchase agreement before the rezoning occurs. White stated they could be worked on concurrently. • McMillan commented that the public will be asking if the city has been doing financial due diligence. CommonBond can provide an analysis. • The Planning Commission reviews parking, etc. but not necessarily bigger issues. • Council discussed experience of the Planning Commissioners, especially in relation to larger development applications, and how Council could be involved. • Curtis suggested that Novak attend the Comp Plan public hearing to answer questions about the CommonBond proposal for the property that is being reguided by the fire station. Page 2 of 5 Orono City Council Committee of the Whole March 9, 2010, 6:30 p.m. Orono City Council Chambers • Gaffron stated that it will take about a week to get the Comp Plan to the Met Council following the public hearing and Met Council probably won't act on it until May. CommonBond is about a month ahead of where they should be in relation to the city's Comp Plan process. • Council agreed that the CommonBond concept stage will take more than one Planning Commission and Council meeting and the applicant should submit their application and allow the Planning Commission to do as much as they can in one meeting to move the process forward. • Gaffron expressed concern about the city's commitment to project. Both the applicant and staff need direction about the city property before additional money is expended without Council support. • McMillan questioned if the Council would move forward if grant deadlines were not an issue and expressed concern about the timing given the city's workload in the next 3-6 months. • Curtis noted that the City Attorney is a good partner in the team and will be very helpful. This is a typical application and will follow the normal process. She suggested a meeting with Kellogg, Gaffron, Novak, architects and herself on Thursday afternoon to discuss further details. • White stated he would discuss a redevelopment agreement with the City Attorney. • Murphy stated the Council's task is to determine if they want to move forward. White, Bremer and Murphy were in favor of moving forward. McMillan had reservations about the timing of the project. • Council will need to collectively determine how to handle transfer of the city property. Olson commented that if the land is sold, the money goes to the general fund; and fees go to stormwater or sewer funds, etc. • Curtis distributed a brochure that Evelyn Turner put together entitled "Thinking of Buying a Lakeshore Property in Orono?" 3. Emily Program Follow-up • The City Attorney will not be available for the April 12 Council meeting. • Curtis reviewed the direction staff will follow based on the Council meeting. o Additional information will be obtained regarding traffic, parking, intensification of use, lighting, hours of operation and what programs are operating out of the first floor. o The City Attorney will review how the use fits into the definition of hospital and provide interim use permit information. o One or two council members, the City Attorney and staff will meet to discuss prior to the next Council meeting. • Murphy commented that the Peterson letter was well written. The process has been good and narrowed down to a land use issue—either it fits or it doesn't. • Code language should be reviewed and revised in the near future. The definition of a hospital from the 1968 code is a good example of how definitions can change over time. • The data practices request was discussed. A copy of everything provided to the requestor should be kept on file at City Hall. In addition, a complete set should be copied to the City Attorney and Mayor. 4. Zoning Prosecution Services • Olson reviewed the change in zoning prosecution services suggested by Curtis last year. • The City Attorney, Soren Mattick, is much more familiar with zoning issues than Ken Potts, even though his hourly rate is higher. • Council approved using the City Attorney, Soren Mattick, for zoning prosecution services. • McMillan asked if there is any impact on the contract with Ken Potts. Olson confirmed there is no impact. 5. Comp Plan Discussion Page 3 of 5 Orono City Council Committee of the Whole March 9, 2010,6:30 p.m. Orono City Council Chambers • Gaffron discussed optional dates for the Comp Plan hearing, which will be scheduled for Monday, March 29tn since it was the best day for the majority of Council and Planning Commission Members. • Although there is no obligation to notify individual property owners of the Comp Plan public hearing, Council determined that property owners within 350' of any property that is affected by the proposed Comp Plan changes should be notified. 350' is consistent with the notification requirement of other zoning applications. • White also suggested a newspaper article and will contact a reporter. • Gaffron noted that Kyle Colvin was receptive to the numbers proposed in the recent letter to Met Council regarding the Long Lake sewer interceptor. 6. MCWD Rules Update • Mayor White and Gaffron attended a meeting regarding the proposed MCWD rule changes and were pleased with the MCWD response to comments submitted by lake area cities. The MCWD seems to be heading down a path that Orono can support. • The Mayor of Mound has organized a meeting for Wednesday regarding the MCWD rules. No representatives from Orono are planning to attend. 7. Joint Orono/Long Lake Council Meeting • Long lake is proposing a joint meeting at the March 22"d Orono council meeting. Council suggested the first Council meeting in April. Gaffron will confirm. • Gaffron asked for Council input regarding the consultant engineering services for the TH 12 Turnback project. Council had no objection to including the engineer for either Orono (Bonestroo) or Long Lake (SEH) in the RFP process. 8. Police Matters • The letter sent to Long Lake regarding police service was discussed. 9. Miscellaneous • Metro Landscape Restoration and Clean Water Grant o Olson explained that a grant is available through Hennepin County for landscape restoration and clean water. Don DeBaere and Tom Kellogg have been working on a grant application for the March 8 deadline and have identified two project areas that could benefit from grant funds. The grant requires a match of up to $25,000. Submittal of the grant application technically requires Council authorization. Council approved submittal of the grant application. • Election Assistance for Individuals with Disabilities (EAID) Grant o Vee stated that last fall Council authorized submittal of a grant application for automatic door openers for the Council Chambers and City Hall entrances as part of the Election Assistance for Individuals with Disabilities Grant program to be used for polling place improvements. No metro cities were awarded grant funds. o A second round of EAID grant funds has been made available with a March 19 application deadline. Staff has submitted a second application for the same program. • Natural Shore Technologies, Inc. Workshop Proposal o Vee explained that Natural Shore Technologies has approached the city with an offer to hold a workshop about the benefits of native plants and native landscaping. The workshop includes a 90 minute presentation with 30 minutes for plant sales and would be held in the Council Chambers. Information could be included in the Spring newsletter. Page 4 of 5 Orono City Council Committee of the Whole March 9, 2010, 6:30 p.m. Orono City Council Chambers o Council was in favor of proceeding with the workshop. • MCWD Long Lake Creek Restoration Project o Gaffron met with the Watershed District about a project they want to do that involves some stream bank restoration. Their plan is to do a feasibility study this year and design work next year. Council was in support of the feasibility study, but directed staff to monitor the design plans as they proceed. • Gaffron distributed a letter from Three Rivers Park District about a proposal to allow electric bikes on regional trails. Council comments should be directed to Gaffron. 10. Comments Regarding Information Updates � None Page 5 of 5