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Home My WebLink About04-14-2009 Council Work Session Packet Council Work Session 6:15 p.m., Tuesday, April 14, 2009 Orono City Council Chambers AGENDA 1. Assessor's Review for Local Board of Appeal and Equalization (6:15-6:45) 2. Hazardous Building (6:45-6:55) 3. Review Amended Ordinances (6:55-7:05 minutes) a. Special Events b. Solicitors 4. Engineer's Report (7:05-7:45) a. Casco Point Reconstruction Project b. Discussion of Highway 12 Sewer Improvement c. Other 5. Crystal Bay Road City Lots—Response to Jon Eiss Request for pock (7:45-8:00) 6. LL/Orono Fire Contract and Addendum (8:00-8:15) Previous Work Session Topics March 23, 2009—Minutes Attached o Long Lake Fire Department Report o Orono Montessori Request for CMP Guide Plan Change to Institutional o Response to Karen Feyo Invoice for Zoning Fees o Golf Course Fees o Orono Lane Issues o Review Comp Plan Chapters: 3A-Environmental Protection & 4F-Public Services March 10, 2009 — Cancelled '� i � � �I�I I Orono City Council Committee of the Whole April 14, 2009,6:15 p.m. Orono City Council Chambers Present: Mayor Jim White, Council Members Cynthia Bremer, Doug Franchot, Lili McMillan, and Jim Murphy; City Administrator Bill Wells, Finance Director Ron Olson, Assistant City Administrator for Long-Term Strategy Mike Gaffron, Building Official Lyle Oman; Public Works Supervisors Don DeBaere and Scott Oberaigner and City Clerk Lin Vee 1. Assessor's Review for Local Board of Appeal and Equalization—Nate Stulc, Hennepin County Assessor • Residential lakeshore growth of- 1.8%; residential off lake growth of-6.3%; overall gross value growth for the city of -2.7%, down about 1% in taxable market for City because of removal of limited market value. • Appeals are similar to last year. There are not a lot of foreclosures or short sales in Orono. Expect about 30+ people, similar to last year. Handouts will be available including "Understanding Your Property Assessment" and a "Fact Sheet"from the Department of Revenue. The Hennepin County appraisal manager will also attend in the audience. • Tax information comparing other cities indicates Orono has lower property taxes than many other cities; reiterate this meeting is related to fair assessment of property, not taxes. 2. Hazardous Building • The owner of 3443 Crystal Place bought the property in early 2006 with the intent to remodel for resale. After gutting the lower level, he found the foundation in very poor condition. He would like to remove the house and garage and sell the property as a vacant lot. However, he cannot afford the demolition. • The owner has requested that the city consider arranging for the demolition and assessing the cost to be certified to the property taxes. State Statute allows municipalities the right to remove or raze hazardous buildings with the owner's consent and assess to taxes at 8%. • The City may want to explore purchase of this property, and the neighboring property, for potential use by the city for trail parking,future LRT stop or other possibilities. • Council agreed the city should move forward with demolition of the buildings and assess to the property owner's taxes. 3. Review Amended Ordinances a. Special Events • Allows City Administrator with staff recommendation to issue special event permits b. Solicitors • The revised ordinance establishes guidelines for a background investigation with 14 days to review the application. • The city would issue a license certificate that each solicitor would be required to have in their possession. An ID card was considered, but it could give the impression that the solicitor is a city employee. The city could use an embossed seal or watermark to make the certificate difficult to reproduce. • The ordinance doesn't target groups like the Sierra Club, Boy Scouts, or youth groups. The intent is to screen out those with criminal backgrounds. Page 1 of 3 • Spring Park, Minnetonka Beach and Long Lake plan to adopt a similar ordinance. • Council would get a copy of special event permits and solicitor's licenses that have been approved; could also be in Friday updates. 4. Engineer's Report a. Casco Point Reconstruction Project • Contracts are in preparation. The contractor has had some discussion about starting on Dunwoody with some interest in starting before school is out. Information will be added to the city's website as it becomes available. • Council determined there is no need for a neighborhood meeting. Residents will be notified by flyers distributed door-to-door with a phone number to call Jared at Bonestroo and a number for a recording to check the status of the project. The city also has a list of email addresses that could be used to distribute information. • There will be some tree removals due to utility work and Bonestroo has been working with residents. No complaints were received when Xcel was trimming trees earlier this year. b. Discussion of Highway 12 Sewer Improvement • Maps of existing sewer lines were provided. Sewer service areas were identified as Area 1 that flows to MCES lines and Area 2 that flows to Long Lake sewer lines. • Met Council contributed to upgrade of pipe when the Long Lake Fire Station was built by replacing an 8" pipe with a 12" pipe. Long Lake has 11 services using the line. Met Council could potentially take over that portion of the pipe because it was oversized to handle additional connections in the area. Kellogg will get more information from Met Council on the funding and agreement that was in place at the time of construction and bring back to Council in 2 weeks. • Options were discussed for sewer flows that will facilitate development of future projects in the area. Council favored Option 1. c. Other • Areas that need to continue connection to the Long Lake system include the properties at 20 Brown Rd S and 130 Brown Rd S. One of the property owners has requested an estimate of the charges to connect. The developer of Creekside created a system that surrounding properties (including these two properties) could connect to, but the developer paid all costs. A Long Lake utility agreement that was discussed about a year ago had proposed connection charges. Staff should refer to that agreement to determine reasonable costs for which the property owner would be responsible. • Myrtlewood project—An accurate number of those interested in water in the Myrtlewood neighborhood has been hard to determine as several properties are in foreclosure or transition. The original numbers of those interested in sewer remains about the same. April 28 was the original bid date but may be postponed a few weeks. • Staff is working with Wayzata to finalize a sewer and water utility agreement. Wayzata has asked for help in working with Wayzata Country Club to dispose of grease properly. A plan has been submitted to Wayzata to add utilities to the Kuruvilla and Comforts of Home properties. There may be a need to extend 12" water pipe from Wayzata Public Works to the Comforts of Home property. The Fire Chief will review for flow rates. 5. Crystal Bay Road City Lots—Response to Jon Eiss Request for pock • The city owns 4 lots on Crystal Bay Road through a quit-claim deed in the early 1900's. • Council discussed options for action related to the lots and preferred to "sell each parcel to its opposite off-lake landowner(the city acquired them by Quit-Claim Deed, so would have to sell Page 2 of 3 ' them that way, i.e. no warranties) and let each owner deal with the consequences of the potential multiple holders of"bathing and boating rights". • The city has an easement to the lake which is often used by the public for winter access to the lake. • Staff will discuss the proposed action with the City Attorney. 6. LL/Orono Fire Contract and Addendum - When the Navarre station was built, there was discussion that this building would be part of the 20 year agreement. - Long Lake has had the Addendum but hasn't been signed. - The draft Addendum needs to be refined to include the address of the Navarre station. - 20 year fire agreement is not open for negotiation. 7. Other - Moratorium has been placed on meetings of the Hwy 12 Turnback Committee. - Big Island Park - Permitting process has bogged down; decision needs to be made regarding bathroom facilities as it impacts the type of groups that would be approved to use the park. - Probably can't get bathroom facility done this year. - Need to provide boat for employee - Only permit approved for this year will be for the Minnehaha. • Snow plowing—job well done this year. Page 3 of 3 � i MEMORANDUM TO: MAYOR WHITE AND COUNCIL MEMBERS MANAGEMENT TEAM FROM: LIN VEE, CITY CLERK SUBJECT: ASSF.SSOR'S R�VIEW FOR LOCr�L BOr,RD OF APPEAL AND EQUALIZATION DATE: APRIT 13, 2009 Nate Stulc and Tom Kunik fYom the Hennepin County ��ssessor's office will attend the Council work session on l�pril 14, 2009 to Yeview the local board proceduYes and assessment information for Orono. They will also be available to answeY questions tegaxding the navy booklet foY "2009 Assessment / 2008 Sales" information that you receivcd last week. i i � I ' I i , , I � � April 13, 2009 Memo to: City Council From: Lyle Oman, Building Official �� Re: Hazardous building action On March 18th, 2009 I received a call from Tom Hagadorn who owns a property at 3443 Crystal Place in Orono. He purchased the property in January of 2006 with the intent of remodeling it for resale. After he gutted the lower level he found out the foundation is severely deteriorated and in danger of collapse. He would now like to remove the house and garage and market the the vacant lot. However because of the economy he cannot afford the demolition. We discussed Hazardous building action and I informed him of MN Statute 463.151(attached). This statute allows municipalities to remove or raze hazardous buildings with the�roperty owners consent. The cost would then be certified against the property taxes except that the city may provide that cost so assessed may be paid in not to exceed five equal annual installments with interest thereon, at eight percent per annum. After discussion with staff and Soren Mattick City attorney, I find no down side to this course of action. The following is several scenarios. 1. We remove the buildings and he pays of the cost plus interest for 5 years. 2. We remove the buildings and he sells the property. The outstanding assessment gets paid at closing. 3. We remove the buildings, he does not sell the lot and it goes tax forfeit. The county would eventually sell the lot and we get paid at closing. This building was a commercial building in its past and is located up against the street property line and is an eye sore. I solicited three bids all in the $10,000 range. The bids include removal of the house and garage, disconnection of the sewer and water, grading the lot to partially fill the excavation, erosion control, top soil and seeding. I am seeking your input and approval for moving forward on this project. ' ' THE 2007 MINNESOTA STATE BUILDING CODE Hazardous and substandard buildings 463.15 Definitions. Subdivision 1. Coverage. For purposes of sections 463.15 to 463.26 the terms defined in this section have the meanings given them. Subd. 2. Building. "Building" includes any structure or part of a structure. Subd. 3. Hazardous building or hazardous properiy. "Hazardous building or hazardous property"means any building or property,which because of inadequate maintenance, dilapidation, physical damage,unsanitary condition,or abandonment, constitutes a fire hazard or a hazard to public safety or health. Subd.4. Owner,owner of record, and lien holder of record. "Owner," "owner of record," and"lien holder of record"means a person having a right or interest in property described in subdivision 3 and evidence of which is filed and recorded in the office of the county recorder or registrar of titles in the county in which the property is situated. HIST: 1965 c 393 s 1; 1967 c 324 s 1; 1976 c 181 s 2; 1989 c 328 art 6 s 5,6 r- � 463.151 Removal by municipality; consent;cost. The governing body of any city or town may remove or raze any hazardous building or remove or conect any hazardous condition of real estate upon obtaining the consent in writing of all owners of record,occupying tenants, and all lien holders of record;the cost shall be charged against the rea(estate as provided in section 463.21,except the governing body may provide that the cost so assessed may be paid in not to exceed�ive equal annual installments with interest thereon,at eight peroent per annum. HIST: 1967 c 324 s 2; 1974 c 341 s 1 463.152 Ezercise of eminent domain. Subdivision 1. Purpose,public interest. In order to maintain a sufficient supply of adequate, safe, and sanitary housing and buildings used for living, commercial, industrial, or other purposes or any combination of purposes, it is found that the public interest requires that municipalities be authorized to acquire buildings,real estate on which buildings are located, or vacant or undeveloped real estate which aze found to be hazardous within the meaning of section 463.15, subdivision 3, and the acquisition of such buildings and real estate is hereby declared to be a public purpose. Subd. 2. Acyuisition;procedure. In furtherance of the public policy declared in subdivision 1,the governing body of any city or town may acquire any hazardous building,real estate on which any such building is located, or vacant or undeveloped real estate by eminent domain in the manner provided by chapter 117. 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Y�� ! �:�� . �^d x ��if-; 3,:: ��J{y'� � . � � .� : ' �' `'� � " - i��:. r.�',/Y� . `� . . . :�� :li^ ✓''�� •.� � . � � � � �� 1 < a ,�t fx;• n � �, �� . . �, � � �(.�; t . . . . r ? ��' ' '�. "` �: 'I., i . \ ` }� } � tt � k S n.I � . � .� �,y o F� i a., t.f � T�y r� 4 ',�aY.�� 5:.. � , i,.: ... �� . f # �� r: - - � ,.�. �. '4`:a �6 � �.�X, '%��Ef . . ivL , .� �� MEMORANDUM TO: MAYOR WHITE AND COUNCIL MEMBERS MANAGEMENT TEAM FROM: LIN VEE, CITY CLERK � SUBJECT: REVIEW OF AMENDED ORDINANCES —SPECIAL EVENTS —SOLICITORS DATE: APRIL 13, 2009 Police Chief Correy Farniok will attend the April 14�' Council work session to summarize pYoposed changes to both the Special Events and Solicitors ordinances. Copies of the draft ordinances are attached fox Council review. � ORDINANCE NO._ � �� CITY OF ORONO � HENNEPIN COUNTY, MINNESOTA AN ORDINANCE AMENDING THE ORONO CITY CODE CONCERNING PARADES AND SPECIAL EVENT PERMITS THE CITY COUNCIL OF THE CITY OF ORONO, MINNESOTA ORDAINS: Section 1. Orono City Code Section 66-191 is amended to add the underlined language: Special event means any marathon run, block party, fishing contest,parachute jump, hot- air balloon event, carnival, open house held as part of a home tour, or any other activity or event which in some way impedes or affects the free and unobstructed flow of vehicular or pedestrian traffic, generates parking needs for more than 20 vehicles off the site at any one time on residential streets, not including a public access to Lake Minnetonka, or requires the posting of no parking signs to maintain compliance with traffic laws and regulations. Section 2. Orono City Code Sections 66-223 to 66-225 are amended by adding the underlined language and deleting the s�l��e�tg� language: Sec. 66-223. Application. (a) Application for a parade or special event permit shall be made to the city at least b9 14 days in advance of the date on which the parade or special event is to occur unless waived by the��city administrator if, after due consideration of the date time place and nature of the parade or snecial event the anticipated number of a�rticipants and the citv services required in connection with the event, the citv administrator determines that the waiver will not present a hazard to public safety. (b) The applicant shall fill out a form provided by the city administrator, stating the: (1) Applicant's name, address, and tele�hone number(includin�the telephone number(s) in which the applicant can be reached on the dav of the parade or special event); (2) Pronosed parade�route or location of special event; (�} Time of commencement and termination and date when the parade or st�ecial event is to occur; � (4) Anticipated number of participants; (5) Shuttle bus plan for particinants and location of off-site parking for open houses• 144532 1 ,, �6) Site vlan locatin�buildin�s driveways local streets parkin�location temporary structures (includin�size), temporary restrooms or anv cordoned off area(s) for snecial events; �7) SiQnature of the owner of the property on which the special event is to be held• �) Proof of written notice to all property owners within 350 feet of the location on � which a snecial event is to be held at least 10 davs prior to the special event The notice must contain the date, time and location of the special event• and �9) Proof of nossession of any license or uermit which under federal state or local laws or reeulations, the applicant is reauired to have in order to conduct the narade or special event, or which, under anv such law or regulation would exempt the applicant from the licensing reQuirements of this article. � (c) The application shall be executed by the individual applying for the permit or the duly authorized agent or representative of the sponsoring organization. The permit requirements set forth in this section apply in addition to all�sexs�g-requirements in section 38-802. Sec. 66-224. . Application Review and Issuance. �The city administrator shall forthwith refer all applications for parades and special events to the police chief�--*'�� '��'� ��-� •a *• and to other citv departments as deemed necessarv. �The police chief shall review each application ' to determine whether . and to what extent a.dditional police vrotection is reasonablv necessarv and to what extent the parade or svecial event will interfere with the safe and orderly movement of vehicular and pedestrian movement on public streets. If an application involves state trunk highways, the police chief shall make necessary arrangements with the state department of public safety for alternative routes or whatever may be necessary. , riih�ir� nr.a ;F�L.� „1.:,.F: 1.1 � 1 0 ....�;.:, �e � F ,7' �' - -a -� i r b 1-r �'� +1.. 1,' 1' L. 11 � ...�. sl�o ., ..1' +�A�-�}�'��irF-c�6i�-c9�r(i�k�-E�E4ic-r�' ,�,t:,.o ,.,�:e��;�a.. +,�e� ,.,.a ��-s�ee�l-e��e�rr�-�esFr�ed�x--��c-a�e�e �e-��A�-� . , , , c;�a;�,,., ..o* �..f�, ; ...;.;..,� uuuui (c) The citv administrator shall issue the nermit as provided for herein unless ounds exist for den n�n�permit under section 66-225 Sec. 66-225. . Denial of Permit. -1�iC6i�o�o„��ti` �l-rr�f�r th��r�nlir�tinrj F a t � '� a i� YY r uv 144532 2 � c2� r�,-,,,,*��.o.. ,......:�. o � �=��'P-��}�-6irEvixa�nrv"iriiuc-irirc�cE.'Fliuicafk� + + � f�� (al The citv administrator may refuse to issue a parade or special events permit to the applicant for anv of the following reasons: � (1) The conduct of the parade or special event will substantiallv interrupt the safe and orderlv movement of other pedestrian or vehicular traffic contiguous to its route or location. �2) The conduct of the parade or special event will require the diversion of so great a number of cit�police officers to properlv police the line of movement and the areas conti�uous thereto as to prevent normal police nrotection of the CitY � The pro op sed special event violates the Zonin�Ordinance. � The parade is not scheduled to move from its point of origin to its point of termination expeditiously and without unreasonable delavs en route. (5) Adequate sanitation and other required health facilities are or will not be available (6) Sufficient parking near the site of the parade or special event has not been provided to accommodate the number of vehicles reasonably expected or the a�plicant has not provided a plan that is sufficient to shuttle visitors to and from a special event (7) The application fails to com�lv with relevant provisions of section 38-802 �8� An investiQation revealed that the a�plicant falsified information on the application (9) Failure of the applicant to pav the required fee. (10) Failure of the applicant or the owner of the propertv on which the special event is to be held to si�n the a�plication. (b) The city administrator shall actprom�tiv upon a timely filed application for a ap rade or snecial event permit but in no event shall grant or denv a permit less than 48 hours prior to the parade or special event and shall include reasons for denial Anv applicant shall have the ri�ht to appeal the denial of a parade or special event permit to the citv council The appeal shall be filed within 5 davs after receipt of the denial to the citv clerk. The city council shall act upon the appeal at the next scheduled meetin� following receipt of the notice of a� eal 144532 3 Section 3. Orono City Code Sections 66-228 to 66-229 are added ta read: Sec. 66-228. Prohibitions. The following prohibitions shall apply to all parades and special events: (a) It shall be unlawful for any person to stage, present, or conduct any parade or special event without first having obtained a permit as herein provided. (b) It shall be unlawful for any person to participate in a parade or special event in which the person knows a permit has not been granted. (c) It shall be unlawful for any person in charge of, or responsible for the conduct of, a duly licensed parade or special event to knowingly fail to comply with any condition of the permit. (d) It shall be unlawful for any person to engage in any parade or special event that would constitute a substantial hazard to the public safety or that would materially interfere with or endanger the public peace or rights of residents to the quiet and peaceful enjoyment of their property. Sec. 66-229. Revocation of permit. The city administrator shall have the authority to revoke a parade or special event permit instantly upon violation of the conditions or standards for issuance as set forth in this article or when a public emergency arises where the police resources required for that emergency are so great that deployment of police services for the parade or special event would have an immediate and adverse effect upon the welfare and safety of persons or property. Section 4. Effective date. This ordinance is effective immediately upon adoption and publication according to law. ADOPTED this_day of , 2009, by the City Council of the City of Orono. CITY OF ORONO By: James M. White, Mayor ATTEST: Linda S. Vee, City Clerk 144532 4 ORDINANCE NO. _ ,/'1 �� CITY OF ORONO � HENNEPIN COUNTY, MINNESOTA AN ORD�NANCE AMENDING CHAPTER 30 OF THE ORONO CITY CODE CONCERNING PEDDLERS AND SOLICITORS THE CITY COUNCIL OF THE CITY OF ORONO,MINNESOTA ORDAINS: SECTION 1. Chapter 30, Peddlers and Solicitors, of the Orono City Code is amended by adding the underlined language and deleting the s�l��language: ARTICLE I. IN GENERAL Sec. 30-1. Purpose. The Citv Council finds that hawkers,peddlers, and transient merchants bv virtue of the temporarv nature of their business and the lack of permanent location for their operations present unipue consumer protection problems. In order to nrotect the health safety and welfare of the communitv ancl pursuant to the authoritv Qranted by Minnesota Statutes section 329 15 the City of Orono herein licenses and regulates all hawkers peddlers and transient merchants operating within the Cit� The purpose of this chapter of the City Code is to prevent fraud and criminal activity such as bur l�arv theft and assault and to protect the privacy of residents in their homes bv requirin�hawkers,peddlers, and transient merchants to be licensed and to impose restrictions on their operations within the City that are narrowlv tailored to address the risks these operations pose to the public health safety and welfare It is not the purpose of this ordinance to burden interstate commerce or interfere with constitutionallv protected rights under the First Amendment of the United States Constitution or Art. I. Section 3 of the Minnesota Constitution. ne�-�A-�Sec. 30-2. Definitions. Except as may otherwise be provided or clearly implied by context, all terms shall be given their commonly accepted definitions. For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. CanvasseY means a person who b��-�:�o��a-n��-�-��;�,-�� , , , , , , , o e �4'..>b,;,.t, L.o �t,o ,t..o ,-*r�„�,-.�..�;,.,. „ ..i,,.. ..al..,.t.,,.. .L.. .7..__�L_� : " ��.� � � � . � ��e�'��m ��-.-_ ��=i� *'' *'� * " '� '* " attempts to make personal contact 11V{All L11V � with a resident at his/her residence without specific invitation or appointment from the resident 138342 1 for the primar�pu ose of 1) attemptin�to enlist support for or a ai�nst a particular religion philosophv, ideolo�v,political partv issue or candidate even if incidental to such purpose the canvasser accepts the donation of monev for or against such cause or (2) distributin� a handbill or flver advertisin� a non-commercial event or service Goods means any tangible thing of value, but not including money, things in action or intangible personal property other than merchandise certificates or coupons. The term includes such chattels as are furnished or used at the time of sale or subsequently in the modernization, rehabilitation, repair, alteration, improvement or construction of real property so as to become a part of such property whether or not severable from such property. The term also includes merchandise certificates or coupons, issued by a retail seller, not redeemable in cash and to be used in their face amount in lieu of cash, in exchange for goods or services sold by such seller. Hawker means a person who goes from house-to-house, door-to-door, business-to- business, street-to-street, or any other type of place-to-place, for the purpose of offering for sale, displaying or exposing for sale, selling or attempting to sell, and delivering immediately upon sale, the goods, wares,products, merchandise, other personal property that the person is carrying or otherwise transporting. The term hawker shall mean the same as the term "peddler." Peddler means a person who goes from house-to-house, door-to-door,business-to- business, street-to-street, or any other type of place-to-place, for the purpose of offering for sale, displaying or exposing for sale, selling or attempting to sell, and delivering immediately upon sale, the goods, wares,products, merchandise, other personal property that the person is carrying or otherwise transporting. The term peddler shall mean the same as the term "hawker." Person means any natural individual, group, organization, corporation, partnership or association. As applied to groups, organizations, coYporations,partnerships and associations, the term shall include each member, officer,partner, associate, agent or employee. Regular business day means any day during which the city hall is normally open for the purpose of conducting public business. Holidays defined by state law shall not be counted as regular business days. Services means work, labor or services of any kind. Solicitee means a person who is solicited. Solicitor means a person who goes from house-to-house, door-to-door, business-to- business, street-to-street, or any other type of place-to-place, for the purpose of obtaining or attempting to obtain orders for goods, wares, products, merchandise, other personal property or services of which he or she may be carrying or transporting samples, or that may be described in a catalog or by other means, and for which delivery or performance shall occur at a later time. The absence of samples or catalogs shall not remove a person from the scope of this provision if the actual purpose of the person's activity is to obtain or attempt to obtain orders as discussed above. T��*«-;��E.��,��This definition also includes anv person who, without invitation �oes upon privateproperty to reauest contribution of funds of anvthin�of value, or sell �oods or services for political charitable religious or other non commercial pu oses. 138342 2 Transient merchant means any person engaging in transient merchant activities. Transient merchant activities means the act of engaging in any temporary, intermittent, or transient sales or exchanges of any goods, wares or services to other businesses by setting up an outdoor stand or structure,by using any truck, automobile or any other vehicles, or by using an empty store front for such purposes at any point or place in the city. �ec:aA-3 Sec. 30-3. Exceptions to definitions. (a) For the purpose of the requirements of this chapter, the terms peddler, solicitor, and transient merchant shall not apply to any person selling or attempting to sell at wholesale any goods, wares, products, merchandise or other personal property to a retailer of the items being sold by the wholesaler. The terms also shall not apply to any person who makes initial contacts with other people for the purpose of establishing or trying to establish a regular customer delivery route for the delivery of perishable food and dairy products such as baked goods and milk, nor shall they apply to any person making deliveries of perishable food and dairy products to the customers on his or her established regular delivery route. (b) In addition, persons conducting the type of sales commonly known as garage sales, rummage sales, or estate sales, as well as those persons participating in an organized multi-person bazaax or flea market, shall be exempt from the definitions of peddlers, solicitors, and transient merchants, as shall be anyone conducting an auction as a properly licensed auctioneer, or any officer of the court conducting a court-ordered sale. r�,,,.,,� ,,,.a:,,.,,,,.o (c) This ordinance does not ap�ly to children a�e seventeen(17) ar vounger soliciting for school-sponsored activities or for charitable organizations. �d) Exemption from the definitions for the scope of this chapter shall not excuse any person from complvin�with any other applicable statutorv provision or this cha�ter. nec�9-3 Sec. 30-4. Prohibited activities. No peddler, solicitor or transient merchant shall conduct business in any of the following manners: (1) Calling attention to his or her business or items to be sold by means of blowing any horn or whistle, ringing any bell, crying out, or by any other noise, so as to be unreasonably audible within an enclosed structure. (2) Obstnzcting the free flow of either vehicular or pedestrian traffic on any street, alley, sidewalk or other public right-of-way. (3) Conducting business in a way so as to create a threat to the health, safety and welfare of any individual or the general public. (4) Conducting business before 8:00 a.m. or after 8:00 p.m. i3s3az 3 (5) Failing to provide proof of license and/or identification, when requested; or " using the license of another person. (6) No peddler or transient merchant shall claim to have the endorsement of the city solely based on the city having issued a license to that person. (7) Transient merchant activities can only be conducted on commercially zoned properties. (8) Remaining on the property of another when requested to leave, or to otherwise conduct business in a manner a reasonable person would find obscene, threatening, intimidating or abusive. nec—.-3A-4 Sec.�30-5. Exclusion by placard. No canvasser, peddler, solicitor or transient merchant, unless invited to do so by the property owner or tenant, shall enter the property h"""'�"n µJ a"�''`"�'"� '� �+ `' ` --�--' - ' where the properly is marked with a sign or placard with the words "Peddlers or Solicitors Prohibited" or other comparable statement. No person other than the property owner or tenant shall remove, deface or otherwise tamper with any sign or placard under this section. a:.�.�-�Sec. 30-6. Violation a misdemeanor. Every person violates a section, subdivision,paragraph or provision of the chapter when he performs an act thereby prohibited or declared unlawful, or fails to act when such failure is thereby prohibited or declared unlawful, and up conviction thereof, shall be punished as for a misdemeanor except as otherwise stated in specific provisions hereof. Secs. 39-6 30-7-30-35. Reserved. ARTICLE II. LICENSE * Sec. 30-36. Licensing; exemption. (a) County license required. No person shall conduct business as a peddler, solicitor or transient merchant within the city limits without first having obtained the appropriate license from the county if the county licenses peddlers, solicitors or transient merchants. (b) Ciry license required. Except as otherwise provided for by this chapter, no person shall conduct business as e�ke�a peddler, solicitor, or a transient merchant without first having obtained a license from the city. ��$Canvassers need not be licensed. Sec. 30-37. Application. Application for a city license fi� ��„�t h„�' �„ u aa'�--, *-- * --- ' - shall be made at least 14 regular business days before the applicant desires to begin conducting business within the citv. 138342 4 Y-�'��~+ ^" �~~'��*�� Each individual seekin�to conduct business as a t�eddler solicitor or � . transient merchant shall complete an application. Application for a license shall be made on a form provided bv the citv clerk and shall include the following information: (1) Applicant's full legal name. (2) All other names under which the applicant conducts business or to which applicant officially answers. (3) Full address of applicant's permanent residence. (4) Telephone number of applicant's permanent residence. (5) Full legal name of any and all business operations owned, managed or operated by applicant, or for which the applicant is an employee or agent. (6) Full address of applicant's regular place of business (if any). (7) Any and all business-related telephone numbers of the applicant. (8) The type of business for which the applicant is applying for a license. (9) The dates during which the applicant intends to conduct business (maximum ten days). � (10) Any and all addresses and telephone numbers where the applicant can be reached while conducting business within the city, including the location where a transient merchant intends to set up business. (11) A statement as to whether or not the applicant has been convicted within the last five years of any felony, gross misdemeanor, or misdemeanor for violation of any state or federal statute or any local ordinance, other than traffic offenses, (12) A list of the three most recent locations where the applicant has conducted business as a peddler or transient merchant. (13) Proof of any required county license. (14) The current address of the applicant and addresses for five years immediatelv precedin�the date of application. ^ (15) Whether the applicant has been the subject of an investi ation by any consumer protection a�ency, state attornev general better business bureau or similar �roup, and if so, the t�pe of investiQation the date of the investigation the agencv or office conductin�the investigation and the outcome 138342 $ �16) Whether the applicant or anv of its a�ents, emplovees or sub-contractors has applied for a license pursuant to Minnesota States, chapter 326. (17) An executed data privacv advisorv and consent form authorizin�the release of criminal historv information from each of the a�plicant's officers partners, emplovees, agents, and subcontractors. {�4��Written permission of the property owner or the property owner's agent for any property to be used by a transient merchant. (-�} 19 A general description of the items to be sold or services to be provided. {-� 20 All additional information deemed necessary by the city council. ��One of the following valid forms of legal identification of the applicant: a. Driver's license or identification card issued by Minnesota, another state, or a province of Canada, and including the photograph and date of birth of the licensed person; b. A military identification card issued by the United States Department of Defense; c. Passport issued by the United States; or d. In the case of a foreign national,by a valid passport. An expired photo ID will be accepted only with valid temporary permit showing renewal of ID is in process. {-�-8}� The license plate number, registration information and vehicle identification number for any vehicle to be used in conjunction with the licensed business and a description of the vehicle. Sec. 30-38. Fee. All applications for a license under this chapter shall be accompanied by the fee established in the ordinance adopting the fee schedule, which may be amended from time to time, except that anv solicitor takin�or attempting to take orders to be filled bv�oods wares or merchandise delivered to the purchaser from other states shall not be required to pav a license fee. No refunds shall be made on unused portions of licenses except by resolution of the citv_ council. Sec. 30-39. Bond. All applications for a solicitors license under this chapter shall be accompanied bv a bond in the penal sum of one thousand dollars ($1 000) executed bv a suretv company conditioned upon makin� a final deliverv of the �oods ordered or services to be performed in accordance with the terms of such order, or failing therein that the advance payment on such order be refunded. Anv person iniured or dama�ed bv the action of any such solicitor shall have a ri hg t of action on the bond for the recoverv of monevs or damages or both 135342 ( n��.�� Sec. 30-40. Investigation, approval or disapproval. (a) Upon receipt of the completed application and payment of the license fee, the city clerk, within two regular business days,must determine if the application is complete. An application is determined to be complete only if all required information is provided. If the city clerk determines that the application is incomplete, the city clerk must inform the applicant of the required necessary information that is missing. If the application is complete, the city clerk must refer it to the chief of police, and by her/him or other person acting in his stead, investigate as to its truth, including background checks necessary to verify the information provided with the application, and as to any other factor which may result in a hazard or danger to persons or property. The chief of police shall have ten business days within which to investigate and make a recommendation. (b) If the chief of police finds no past history of the applicant indicating violations similar to those declared unlawful in this chapter, and if she/he finds that to grant the application is not likely to result in hazard or danger to persons or property, he shall recommend issuing a license; and the city clerk shall issue a license, upon payment of the fee, to the approved applicant. (c) If the chief of police finds a past history of the applicant indicating violations similar to those declared unlawful in this chapter, or if he finds that to grant the application is likely to result in a hazard or danger to persons or property, he shall recommend denial of the license. In all matters of recommended denial, the applicant shall be forthwith so advised; and the application shall be referred to the council and considered by it at its next regular or special meeting occurring more than ten days thereafter. The applicant shall be afforded an opportunity to be heard at such meeting. Sec.38-48 Sec. 30-41. Duration. -A tr_�nr��+++ ..�.�,-..�,.,..+ ...-Y�aa,o,....;» ;r•« „ ,� �• a All licenses issued under this chanter shall be valid for a maximum of ten days per calendar year. The city council at its sole discretion may grant an extension for up to 50 additional days per calendar year upon application for an extension. nz�o-:� Sec. 30-42. License exemptions. (a) Farm products. No license shall be required for any person to sell or attempt to sell, or to take or attempt to take orders for, any product grown, produced, cultivated, or raised on any farm. (b) Canvassers. No license, shall be required of any person going from house-to- house, door-to-door, business-to-business, street-to-street, or any other type of place-to- place when the activity is for the purpose of exercising that person's state or federal Constitutional rights such as the freedom of speech, press, religion and the like, except that this exemption may be lost if the person's exercise of Constitutional rights is merely incidental to a commercial activity. �3s3a2 7 (c) Exempt Or�anizations. No license shall be required of any person g� , , , , Y��.ti-�" �'�� •-�'�� *'�� *�•��*•�� solicitin�for a charitable, religious, political or educational organization if such organization is registered with the secretary of state � pursuant to the provisions of Minn. Stat. § 309.52 as a charitable organization or is exempted therefore pursuant to the provisions of Minn. Stat. § 309.515, ri-,,,....e....�.o...,,�;.. ., o o�;ao�+� ,.�*,,o ,.:�<, �...,..�.,..�,,.,.�.�aY �.-- (d) Professional fundraisers working on behalf of an otherwise exempt group shall not be exempt from the licensing requirements of this chapter. a�.�n Sec. 30-43. License ineligibility. The following shall be grounds for denying a license under this chapter: � (1) The failure of the applicant to obtain and show proof of having obtained any required county license. (2) The failure of the applicant to truthfully provide any of the information requested by the city as a park of the application, or the failure to sign the application, or the failure to pay the required fee at the time of the application. (3) The conviction of the applicant within the past five years from the date of the application for any violation of any federal or state statute or regulation, or of any local ordinance, which adversely reflects on the person's ability to conduct the business for which the license is being sought in an honest and legal manner. � Those violations shall include, but not be limited to, burglary, theft, larceny, swindling, fraud, unlawful business practices, and any form of actual or threatened physical hann against another person. (4) The revocation within the past five years of any license issued to the applicant for the purpose of conducting business as a peddler, solicitor or transient merchant. (5) The applicant is found to have a history of poor business practices. Evidence of a history of poor business practices shall include,but not be limited to, the existence of more than three complaints against the applicant with the better business bureau, the attorney general's office, or other similar business or consumer rights office or agency,within the preceding 12 months, or within the preceding five years. Sec. 30-44. License Certificate. (a) Unon the �rantin�of a license the citv clerk shall issue to each individual emplovee, a�ent, representative or salesperson a license certificate Such license certificate shall contain a nhoto�raph of such employee a ent representative or salesperson his/her name a�e, address, a brief nhvsical description the name of the supplier for whom he/she is an emnlovee, a�ent reuresentative or salesperson and the trade or brand name of its �oods or 138342 $ . services bein� sold or promoted bv him/her. On the license certification shall be printed the word"solicitor,""peddler,"or"transient merchant "the valid dates of the license and the license certificate number registered with the city clerk Every solicitor licensed hereunder shall have his/her license certification upon his/her person at all times while engaged in solicitation and shall exhibit the same in nlain view. (b) In the case of a license issued to an organization under this chanter such license shall authorize anv member of such oreanization or anv dulv authorized volunteer worker the right to solicit for said or�anization nrovided that each such member or volunteer worker shall be reQuired to have a license certificate in his or her possession as provided for this in section �c) Everv person reQuired to obtain a license under the provisions of this chapter shall exhibit the license when reQuested to do so b anv prospective customer or Citv emplovee neE-�8-43 Sec. 30-45. Suspension and revocation. (a) Generally. Any license issued under this section may be suspended or revoked at the discretion of the city council for violation of any of the following: (1) Fraud, misrepresentation or incorrect statements on the application form. (2) Fraud, misrepresentation or false statements made during the course of the licensed activity. (3) Conviction of any offense for which granting of a license could have been denied under section�9-4-� 30-43. (4) Violation of any provision of this chapter. �x'i�n�inunt mr�a-�h�„� t, t, 1�' F+t� 1• ..t,.,tt ,. lllt G o �______ ___ ______ � c�fl k�ek�:��,.�*�,e �;,.er �, i• a a � a - -- -- ---- --------__ .....,.._ .._�.�� .� �� , (�}� Notice. Prior to revoking or suspending any license issued under this chapter, except in an emergency situation as prescribed in subdivision (e)of this section, the city shall provide the license holder with written notice of the alleged violations and inform the licensee of his or her right to a hearing on the alleged violation. Notice shall be delivered in person or by mail to the permanent residential address listed on the license application, or if no residential address is listed, to the business address provided on the license application. (�-}� Public hearing. Upon receiving the notice provided in subdivision (c) of this section, the licensee shall have the right to request a public hearing. If no request for a hearing is received by the city clerk within the ten regular business days following the service of the notice, the city may proceed with the suspension or revocation. For the purpose of mailed notices, service shall be considered complete as of the date the notice 138342 9 � is placed in the mail. If a public hearing is requested within the stated timeframe, a hearing shall be scheduled within 20 days from the date of the request. Within three regular business days of the hearing, the city council shall notify the licensee of its decision. (�}� Emergency. If, in the discretion of the chief of police or other person acting in hislher stead, imminent harm to the health or safety of the public may occur because of the actions of a peddler or transient merchant licensed under this chapter, the chief of police may immediately suspend the person's license and provide notice of the right to hold a subsequent public hearing as prescribed in subsection (c) of this section. �}� Appeals. Any person whose license is suspended or revoked under this section shall have the right to appeal that decision in court. nzE-�A-44 Sec. 30-46. Transferability. No license issued under this chapter shall be transferred to any person other than the person to whom the license was issued. SECTION 2. Effective date. This ordinance shall be effective upon approval and publication. ADOPTED by the City Council of Orono on this day of , 200_by a vote of ayes and nays. CITY OF ORONO James M. White, Mayor ATTEST: Linda S. Vee, City Clerk 138342 1 Q MEMORANDUM C.Work Session 4-14-09 To: Mayor& Council Bill Wells, City Administrator From: Mike Gaffron, Asst. City Administrator Date: April 13, 2009 Subject: Sewer and Water Connection Charges: Dunn, 20 Brown Road South& McCuskey, 130 Brown Road South SYNOPSIS As part of the municipal sanitary sewer constructed by the developer of the Creekside In Orono residential subdivision, sewer stubs were installed to serve the properties of Mary Dunn (20 Brown South, 2 stubs) and David McCuskey (130 Brown Road South, 1 stub) at their individual requests. To our knowledge, neither Dunn nor McCuskey paid the developer (Henry Lazniarz) for these future connection points. However, Dunn may have concluded that her stubs were at no cost, in partial payment for the road easement she granted Lazniarz. We don't know the specifics of her agreement with Lazniarz. The sewer system serving Creekside (7 lots) as well as Dunn & McCuskey, discharges to the Long Lake sewer system at Apple Glen Road. Lazniarz paid Long La1ce the Long Lake sewer and water connection charges of$5800 per unit for each of his 7 lots, but did not pay such connection charges for the Dunn& McCuskey stubs. Although the Creekside development is not yet complete or ready for construction of new homes, Mrs. Dunn is requesting that Orono provide her with the dollar amount of the connection charges she must pay to connect to the sewer and water. In order to establish an appropriate amount for such charges, staff has come up with a formula that seems fair and reasonable, but requires Council input. The formula takes into account: 1) the estimated per unit cost to the developer of installing the sewer and water systems and access to them; 2) the additional costs of connection fees that Long Lake will expect to collect from Orono for these additional connections. There are a number of questions that need to be answered in relation to this issue: 1. What connection fees will Long Lake will be charging for these connections? Given the lack of a joint S&W Agreement with Long Lake after 5 years of negotiations, what is the best way to approach this without causing an undesirable outcome? 2. Does Council concur with staff regarding the method being used to determine a fair connection charge, or the applicability of the charge in this or similar situations? 3. What are the expectations of Dunn regarding these fees? Additional background on the following pages may provide some insight as to why this is not as simple as we'd like it to be. Dunn& McCuskey S&W Charges Analysis Apri113,2009 Page 2 • BACKGROUND Fox Ridge Sewer Connection Option. As part of the Fox Ridge sewer project in 2000, a pressure sewer line was installed along the west side of Brown Road from Fox Ridge Road to Waterto.wn Road. Property owners along the west side of Brown Road were asked if they wanted to participate in the project. A few did, most did not. Some of those who did not were provided with a stub access point along that pressure line for future connection, with the idea that they would pay the "going rate" connection chazge at the time they connected. That rate has climbed to $21,140 per unit for 2009 for any new connections not previously assessed. This is the rate that Dunn or McCuskey would pay for a sewer connection to the Fox Ridge system if the Creekside subdivision had not happened. Properties on the east side of Brown Road were not provided with connection stubs; although they were offered the opportunity to connect to the Fox Ridge project,they were also advised that a gravity line serving the property east of them may be in the offing, which would allow for future gravity connection. To serve either the Dunn properiy or the McCuskey property from the Brown Road pressure line would require boring service lines under Brown Road and installation of individual "E-1" pump stations for each property. The total cost to the homeowner for connection charges, SAC charge, permits, and actual pump station installation and connection to the sewer, would potentially exceed $30,000. Creekside Connection Option. The Dunn and McCuskey properties were subsequently each provided connection stubs to the Creekside gravity sewer system. That gravity system was completely paid for by the developer, and it discharges directly to the Long Lake sewer system at t�ie south end of Apple Glen Road at the north end of the subdivision. Municipal water is also provided by a parallel line from Long Lake. The Development Agreement between the City of Orono and Creekside in Orono LLC establishes that "upon completion by the developer and acceptance by the City of Orono, the sanitary sewer and water facilities within Outlot B and within the 30' utility easement of Lot 7, shall become the property of the City of Orono and become part of the City of Orono utility system, to be operated and maintained by the City of Orono." The Development Agreement also stated that "all applicable City of Long Lake connection fees and charges associated with the sewer and water system serving the development shall be paid to Long Lake by the Developer. Developer shall be responsible for any charges to the City of Orono from the City of Long Lake in relation to the provision of municipal sewer and water from Long Lake." On Febnzary 14, 2005 Tom Goodrum on behalf of Creekside in Orono LLC paid the City of Long Lake via check #10855 the amount of$37,800 for the seven sewer & water units for the seven new lots within the Plat of Creekside in Orono, based on the following rates: Water: Tap fee per unit $1600. Hookup fee per unit $1100. Sewer: Tap fee per hookup $1500. Hookup fee per unit 1200. Total S&W Fees per unit $5800. Dunn& McCuskey S&W Charges Analysis ' April 13,2009 Page 3 The Development Agreement also stated "As part of the installation of sanitary sewer and water improvements per the approved plans, Developer shall install two sewer and two water stubs for future service to the Dunn property and one sewer and one water stub for future service to the McCuskey property." � No connection fees were paid to Long Lake on behalf of Dunn or McCuskey. Those Long Lake fees would be due at the time of eonnection, at whatever rate Long Lake has in effect at the time of connection. ANALYSIS Is an Orono Connection Fee Warranted? The vast majority of City of Orono sewer and water systems are the result of the City retrofitting existing neighborhoods with sewer and water lines, assessing the costs of construction back to the benefiting property owners, sometimes partially subsidized by the general tax levy. It is a relatively recent phenomenon in Orono that sewer and water extensions have been installed for new development at the expense of a developer, and even more recent that such developer-installed systems have the potential to directly serve adjacent properties without an intervening City project. Examples include Glendale Cove and Creekside. For City-constructed projects, Orono has normally established connection fees for new connections to an existing City project equivalent to the original per-unit cost of the given project,plus an annual inflation factor. For instance, a property connecting in 2008 to the . 1992 Stubbs Bay NE project that was originally assessed $12,630 per unit now would pay $19,750 as a connection charge if it had never been assessed. For developer-constructed projects, the City has not formally established a policy regarding appropriate connection fees for additional direct connections of properties outside the subdivision. There is no precedent direction on this. However, the basis for the City charging a connection fee is largely an issue of fairness and equity. No property should be afforded the privilege of connecting to the sewer system without paying its reasonable share of the costs to build and maintain that system. In the typical case where the cost of a "retrofit" sewer project is assessed equally to all benefiting properties, a nearby property not originally assessed should pay its shaze of those original costs at the time it does connect; it should not be allowed to connect at no cost to a system that others have paid for. In the case of a new development, where the developer builds a sewer system to serve new homes, the developer surely adds a portion of the cost of that sewer construction to the price of each lot. Should those lot buyers be subsidizing the sewer provided to properties not part of that subdivision? Probably not - outside properties connecting to that system should be charged a fair and equitable connection fee. However, the City as recipient of such connection fee has historically not redistributed it among the original subdivision lot owners. Dunn& McCuskey S&W Charges Anatysis April 13,2009 Page 4 ' Possible Dunn Expectations. There is potentially an expectation by Dunn that no City of Orono connection fee will be due for her connections. Remember that Lazniarz had to purchase an easement from Dunn for access to the Creekside Development over a portion of Dunn's property (Tract G, RLS 352). In correspondence between MPG and Dunn's attorney Jeremy Steiner in 2004, Steiner asked that the Developers Agreement include language stating that 1) two sewer and water stubs will be installed along Dunn's lot line and that 2) Dunn will not be assessed for City water and sewer. My response was: 1. The preliminary plat approval resolution acknowledges WDD's (Henry Lazniarz's) intent to provide sewer and water service to the Dunn property, but does not require that WDD provide such service. Assuming that WDD agrees to `the installation of two water and two sewer service stubs to serve the Dunn property' becoming a requirement, the City will not object to this being added as a condition of the Developer's Agreement. 2. In terms of assessment for the installation, the City of Orono will require that WDD bears the entire cost of construction of all improvements including sewer, water, road and utilities. WDD will upon acceptance by the City, turn over the sewer and water facilities to the City of Orono, and they will become part of the Orono utility system, to be operated by Orono. However,we are assuming that the City of Long Lake will charge WDD (or will charge Orono) some form of `per unit connection charge' for the privilege of connecting into the Long Lake sewer and water systems. Our expectation, pending completion of a formal agreement between the two cities, is that WDD will pay Long Lake directly for the connection charges for his seven units, but I have no knowledge of whether he will pay the connection charge(s) for Dunn. I don't know when Dunn will make use of the two units. I don't know whether Long Lake will expect up-front payment of a connection charge for all potential units (we think that there might be as many as 11 total units over the long term,including WDD's seven,Dunn's two,and one each for the properties at 130 and 140 Brown Road),or whether Long Lake will only collect now for the 7 initial units and collect for future units as they are connected. And I don't know whether Long Lake would bill those in t6e future to the individual users or would expect that Orono pay whatever connection charge is due (in which case Orono would bill or assess this to the individual property being connected at that time). It is clear that all the connection charge issues must be understood and conclusions reached before the Developer's Agreement is finalized. Greg Gappa, Orono's Director of Public Services, is working with Long Lake to finalize a sewer and water agreement. Until the connection charge issue is resolved, I do not believe Orono can commit that "the Dunn property will not be assessed for the City water and sanitary sewer improvements for the Creekside in Orono development". However, if you conclude that `installation of the improvements' is a separate issue from `assessment for any connection charges that Long Lake may impose on Dunn or the City of Orono', then I believe we can craft language that gives you the desired confirmation. Language clarifying the assessment issues ultimately was not included in the Developers Agreement. The Final Plat Resolution conditions as well as the Developers Agreement contain only the following with regard to sewer and water systems: , Dunn& McCuskey S&W Charges Analysis April 13,2009 ' Page 5 6. Sanitarv Sewer and Water Svstems. All applicable City of Long Lake connection fees and charges associated with the sewer and water system serving the development shall be paid to Long Lake by the Developer. Developer shall be responsible for any charges to the City of Orono from the City of Long Lake in relation to the provision of municipal sewer and water from Long Lake. Upon completion by the Developer and acceptance by the City of Orono, the sanitary sewer and water facilities within Outlot B and within the 30' utility easement of Lot 7, shall become part of the City of Orono utility system,to be operated and maintained by the City of Orono. As part of the installation of sanitary sewer and water improvements per the approved plans, Developer shall install two sewer and two water stubs for future service to the Dunn property and 1 sewer and 1 water stub for future service to the McCuskey property. No discussion was included about what fees Dunn or McCuskey might be charged by Orono. Williamson Analysis. There is one recent instance where staff did determine a connection fee for an existing house that was part of the new subdivision by virtue of having sold part of its land to create the subdivision. That property is the Williamson house at 190 N. Willow, which became part of the Glendale Cove subdivision. The Williamsons initially requested a sewer connection to the Hackbeny sewer in 2004, prior to the Glendale Cove application. At that time the City advised them that their actual costs of connection would likely be reduced by waiting until the adjoining property on the east side of Willow Drive was developed. This would avoid a long connection route and crossing of Willow with an individual service. Shortly thereafter they sold a portion of their property to Steve Bohl who as part of the development of Glendale Cove in 2006-2007 installed sewer and water lines as well as a road, stormwater facilities and other improvements to serve 8 new homes. Those sewer and water lines became the property of the City, and the City maintains them as part of its system. As part of that project, Bohl installed municipal sewer and water stubs to serve the Williamson property. In 2004 we had advised the Williamsons that a sewer connection fee based on the 1973-1 Hackberry project would be due. Because the Glendale Cove project subsequently included extension of sewer laterals and water mains that the City would then own, staff determined it would be most consistent with City policy to establish sewer and water connection charges for the Williamson property (and any other existing homes that would connect to the Glendale Cove lateral system) based solely on the costs of the Glendale Cove project, disregarding the Hackberry project. The 8 new lots in the subdivision would not be subject to the Orono connection charge because their developer paid the entire costs of installation of that system. Per discussions with City Engineer Tom Kellogg and City Administrator Ron Moorse in late 2007, a formula was established in for assigning connection fees for the Glendale Cove sewer and water system, based on the prorated line item costs of sewer or water facilities insta.11ation plus 1/2 the cost of providing basic access for utility maintenance. Cost figures Dunn& McCuskey S&W Charges Analysis • April 13,2009 Page 6 ' were based on the City Engineer's Cost Estimate for Financial Guarantee dated June 12, 2006. The formulas for sewer and water connection charges were as follows: Williamson - Sewer Connection Fee Formula: 1) Sanitary Sewer Improvements: $35,450 $35,450 2) 1/2 of Base maintenance roadway costs ' $10,000 common excavation 2,350 subgade excavation 11,440 Class V Base 5.000 fabric $28,790 x 0.5 14,395 3) Restoration 4,000 c.y. @$2.50/c.y.x 0.5 5,000 $54,845 Sewer Connection Fee= $54,845/9 base dwelling units=$6,094/unit Williamson -Water Connection Fee Formula: 1) Water Main Improvements: $47,255 $47,255 2) 1/2 of Base maintenance roadway costs: $10,000 common excavation 2,350 subgrade excavation 11,440 Class V Base 5.000 fabric $28,790 x 0.5 14,395 3) Restoration 4,000 c.y. @$2.50/c.y.x 0.5 5,000 $66,650 Water Connection Fee=$66,650/9 base dwelling units=$7,406/unit It was concluded that these fees should be included in the 2008 Fee Schedule for the Glendale Cove sewer project. While we did not anticipate that there would be other � connections coming into this system, it would be appropriate that the connection fee be established now rather than later. These would then follow the standard annual inflationary increase program. Note that in addition to these connection charges, Williamson also paid a $1,600 Long Lake Sewer Connection Charge, a $1,500 Long Lake Water Connection Charge, and the MCES SAC Charge of$1,675; but not Long Lake hookup fees. Creekside Analysis. For Dunn and McCuskey to connect into the Creekside sewer system, the same basis and formula as used to calculate the Williamson fees would seem to be applicable. Based on the Engineer's Estimated Costs dated 2-11-05: Dunn & McCuskev- Sewer Connection Fee Formula: 1) Sanitary Sewer Improvements: $49,164 $49,]64 2) l/2 of Base maintenance roadway costs $ 2,000 mobilization $14,000 common excavation 16,800 Class IV and V Base 2,250 fabric $35,050 35,050 3) Restoration $10,000 5,000 $94,214 Sewer Connection Fee=$94,214/ 10 base dwelling units=$9,421 /unit (Base units=7 in subdiv.Plus 1 McCuskey and 2 Dunn) • Dunn & McCuskey S&W Charges Analysis April 13,2009 Page 7 Dunn & McCuskev - Water Connection Fee Formula: 1) Water Main Improvements: $38,906 $38,906 2) 1/2 of Base maintenance roadway costs: $ 2,000 Mobilization 14,000 common excavation 16,800 Class IV and V Base 2,250 fabric $35,050 35,050 3) Restoration $10,000 10,000 $83,956 Water Connection Fee= $83,956 / 10 base dwelling units= $8,396 / unit (Base units=7 in subdiv. Plus 1 McCuskey and 2 Dunn) Note: It is unclear whether the old Long Lake S&W fees (paid for the seven Creekside lots in 2005) apply, or some yet-to-be-agreed-upon new fees apply per the `'Sewer and Water Hook-up and Connection Charge" established in the (still pending) "Municipal Utility Service Agreement by and between the Cities of Long Lake and Orono". Those fees are $1,600 per unit for each SAC-equivalent sewer connection and $1,500 for each water connection (and will there also be "tap fees" of$1100 for water and $1200 for sewer as there were in 2005?). Orono would collect these at the time of connection permit issuance along with the standard Met Council SAC charge for sewer connection. The Long Lake connection fees collected by Orono will be a pass-through to Long Lake. The MCES SAC charge will continue to be a pass-through to Met Council. To summarize, the connection charges for each of the Dunn & McCuskey properties for 2009 would be: Sewer: Water. $ 9,421 Orono Sewer Connection Charge $ 8,396 Orono Water Connection Charge 1,600 L. L. Sewer Conn. Charge 1,500 L. L. Water Conn. Charge 2,000 MCES SAC (2009) $ 9,896 (???Plus �1100 LL Hookup?) $ 13,021 (???Plus $1200 LL Hookup?) (Due with application for sewer or water connection permit) Questions for Discussion 1. What connection fees will Long Lake will be charging for these connections? Given the lack of a joint S&W Agreement with Long Lake after 5 years of negotiations, what is the best way to approach this without causing an undesirable outcome? 2. Does Council concur with staff regarding the method being used to determine a fair connection charge, or the applicability of the charge in this or similar situations? 3. What are the expectations of Dunn regarding these fees? � i �,;�`' p tl t : ��,'"�1' _ _ ! ;�J , .--- � iti — �.. � �'� � � � } ,� � -- � _-------- ._ _ _ ._ • �ti '--- � � ' � � :ti •� -- 3 � � __ . _ , �- � `., " , , . � ��I ��r� '�I ,�� -- , . � . � _ : : v � �_� _ _._ �.— _ � I � � . .��=�___�__..��._. � _._.� € .-- , , � : . , . , , ��,.-- , ., � . , ,_ :.. , . . _ . _ , �; . _ , - � � , . � ; ; , - � , ---__--- .� - __ , _ _ � ` � �� _ �.� � � _ �--�- � � . , . � � � � � � Tr�a ff a I� T ,� ,�_ L __ , �C1 �_ � � _.� ��, r � �� I �1.� � i �. �.�.�., � j I � _• � ��'1, �u ._ �1 _.._..___..__.. . . . . U1 �I r� ..,�". — � � tL� � H M�` �"LF�. '�' � �r____W rr� . _ _ ,� ��--�--i � �. , --___ _ � � � ` ��_ r -�- �. � �� . � �� ,�_____. __� � ��+ -�. � .� � � __.--�— r �_'�';:�: �. �-- � f � r �' _ _ � . ,3 . � � i - �� ._ ___ _ � � � �— T" � � �,"`' ; '� — I �_ i _ _ �r r � .� � I I _ — _. L _ � I " `—y �J� I � ' , � , �, _. � .� � � V _ \ I ,• '� �! � �•- a, —...� '� � � �� i . _ � a , u .�� -T � G i _ , - .__ _ _ ' ? . -_ _. : � �. ; � � �� —; �1`+ I ,. �-- ._____:, : . ,Jy � � _ � � ^ �� ! �� —��.�_.�_ ,y...y` � i1 '�F �� '�s ~�t i ��L 4 ~��'"+.. �� tiy' . �� iZ � �� z_r Vt��t�� 10 � L �� Lt 1 1 f �� .. . �� .�Vi� � t � ._.�..... . . . _.,. . ..____...... ._., ........ ._ ........., } � ��Yf_� 1 tSr� v�✓ � 'r a.r �f 4+1�L� �� 1 i� � i . G r'. - � �--��'` � ' _ - ; _�� -- : -- � ' . . '� ��.�'�'��-� � � w _ � �'�'� � , _ � � j i . "., -. � F-�- ��=�-��1 E � �� : L_,.,�__ r ti ( , ,..._. ,�� 'iS1� � r`�, . ' � ' �( � j+ �� To: City Council r, ; j' � ��'� From: Michael P. Gaffron, Asst. City Admin. - Long Term Strategy% � Date: April 13, 2009 �. Subject: Jon Eiss Request for pock, 3445 Crystal Bay Road Attachments: - Eiss Letter of Request 3-5-09 - Sta.ff Background Memo Dated 9-15-08 & 10-29-08 �. - Council Minutes 3-9-09 Jon Eiss of 3445 Crystal Bay Road had sent a letter requesting the ability to have a dock on one of the four City lake lots on Crystal Bay Road. His property is the new house on the end of Crysta.l Bay Road which has a stipulation in its variance approval resolution that it is not considered as riparian and cannot have a dock. His letter is attached. Mr. Eiss appeared before the Council on March 9 to sta.te his request in person. The minutes of that meeting are attached. Also attached if you want to review the history of this dock situation is my memo of 9- 15-08 / 10-29-08. Staff would like further direction how to respond to Mr. Eiss's request, as this matter and the questions of fairness and equity remain unresolved. �,,� Options for action may include but are not limited to: �� :....� � ��f�' .::.-r"� � 1. Do nothing; let all four lot owners across the road continue to put docks on City � J,�'` property. Expect negative fallout from one or more past owners of 3445 Crystal Bay Road. Deal with rental slip situations as a separate issue. .e�� /�' 2. Require removal of the docks from the 4 City parcels. This has potential to result �� in a costly legal battle since the property values will decrease significantly as soon as lake access is denied. .,;� 3. Sell each parcel to its opposite off-lake landowner (we acquired them by Quit- �T� � Claim Deed, so would have to sell them that wa , i.e. no warranties and let each Y_ ) owner deal with the consequences of the potential multiple holders of "bathing and boating rights". G�i%�� 1��;i��C�'��,. t.._. ,�� ,.,,�:�<'1 ��+..� � 4. Lease the individual lots to the respective four owners for unlimited lakeshore access. 5. Lease the individual lots to the respective four owners for limited lakeshore access, perhaps limiting the number and ownership of boats stored on the site. x�+ ; t � • �.. t` ��.i V �r`'� �, <' j•: �y�j�'"? / n'( :' J r-��; � �.... . L.l�� ._ t�'t: � � ��:�� .�-��,�`� C�t • �� , �a.. � �'� f l_ t � - . Eiss Request April 13,2009 Page 2 6. Lease the lots as a group to an association of the four, to have one joint use dock on the property subject to an annual joint use dock license with limits on the number and ownership of boats stored. Such a dock might be located to allow access for the possible off-lake holders of"bathing and boating" easement rights. 7. Require that the docks be removed,develop ffie site for rental City dock space, to be allotted on a lottery basis. Would require that parking area be developed, which probably means acquisition of one or more of the 4 off-lake lots. 8. Acquire all 4 off-lake homestead parcels plus the back lot (3447 Crystal Bay Road), re-route Crystal Bay Road to the south, develop a stormwater pond and a neighborhood park or beach area at the site. 9. Other, or some combination of the above. March 5, 2009 Dear Mayor and Orono City Council, I am writing today to get your permission for a dock in front of our house at 3445 Crystal Bay Rd. I understand that this has long been an issue for the city. I would like to be a good neighbor to the 3 families in the houses to the East of ine that currently have docks that don't own the property it�front of their house. The last thing I want is to open up a can of worms that would jeopardize their docks. 1 also want to be a good neighbor to those neighbors off the lake that use that area. I recognize that I don't own that property and others can use it. However, 1 do pay lakeshore taxes, as it is listed as, "residential lakeshore"on my tax statement. I am hoping to be allowed to have a dock that is small and out of the way from the landing. I have a 23 foot ski boat. Thank you for your efforts. Sincerely, The Eiss's (Jon, Kelly, Drew, & Fisher) Jon Eiss H:952-471-0576 W:612-303-5911 C:612-840-2221 e-mail:jonathan.d.eiss@ubs.com r . � . MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,March 9,2009 7:00 o'clock p.m. (PUBLIC�OMMENTS, Continued) �. Murphy suggeste \e Counci] review the records in this particular instance and also review-the City's account receivables f�- hat period of time. Murphy stated he does recall discussing this 5ituation in a work session,with the ou me being that the Council was agreeable to reducing it io the original fee of $1200. /� McMillan requested Mrs.Feyo put wn in writing her version of the�a�ts and the reasons she is requesting the waiver. McMillan indic d she would like to see tlae"invoices. Mrs.Feyo stated she has never seen an invoice. /,, . Mclvlillan requested Staff provide a copy of the ' oice o Mrs. Feyo so she can review them. McMillan asked Mrs.Feyo to put down in writing her ughts and ra' nale regarding the situation and the request for the waiver. Mrs. Feyo stated she had asked w many other applications were ch d extra fees at that time but that they did not receive any inf ation from the City. White commented does remember a couple of larger projects in that time pe d that were charged extra fees. Murph ointed out that engineering fees on top of the application fees are applied when e cir stances warrant the additional cost. John Eiss, 3445 Crystal Bay Road,stated he is here before the Council tonight to request a dock for his property. Eiss stated he is paying taxes based on a lakeshore lot but is not allowed a dock. Eiss noted his other neighbors with lots similar to his have docks and that he is the only one that does not have a dock. White noted Lot 38 is located in front of this lot and that this lot is not immediately adjacent to the lake. Eiss stated those four smaller lots are city-owned. White stated the City clarified a couple of years ago that residents who do not have a principa] residence adjoining the lakeshore would not be entitled to a dock but would be able to swim or launch a canoe from the city-owned property. White noted that policy has been upheld by the City for a number of decades. White stated in his opinion the issue of paying taxes based on a lakeshore lot is a separate issue from the dock issue. Eiss noted his lot is classified as a residential lakeshore and that the title to his property says he has lakeshore rights. White commented that assessors do not always classify properties correctly. White asked if Mr. Eiss has contacted the City previously regarding his request. Eiss indicated he has not. Eiss stated he does not want to jeopardize his neighbors' docks to the east with his request. White asked whether there are other docks located on the city-owned lots. PAGE 3 of 8 MINUTES OF THE ORONO CITY COLTNCIL MEETING Monday,March 9,2009 7:00 o'clock p.m. (PUBLIC COMMENTS, Continued) Gaffron indicated the other three properties do have docks on the city-owned lots in front of their lots that are taken down in the fall and are put back in in the spring. The City distinguishes this property from the � other three in that there was a variance application for the house located on this property. The s�rvey that was completed was incorrect because it showed the lot running all the way down to the lake and the City required a new survey. The resolution approved for that variance application contains an annotation stating that the City does not consider this lot to be riparian. Gaffron stated the City has not talcen any formal action to notify the other properties that a dock is not allowed. The City had considered starting a title registration process but elected not to do the required title research due to the costs involved. The City's position during the construction and marketing of Mr. Eiss's property has been that it is not entitled to a dock, so it was not an unknown at the time of � purchase. Gaffron staxed the issue is whether the City should notify the other properties that a dock is not allowed or attempt to arrive at a solution where the four properties could have a dock. Murphy stated when he purchased his property approximately 20 years ago, it turned out that the nonconforming barn was constructed considerably prior to the residence and that it was grandfathered in. Murphy stated as long as no substantial changes are made to the footprint of the barn,they are allowed to reta.in the barn. Murphy asked if the docks would be a similar situation. Gaffron stated docks are considered accessory structures and that this is an area of the lake where,if the dock is left in year-round, it would need to be constructed considerably different. Gaffron stated a legal nonconformity would not apply in this situation since the docks are taken down in the fall. Mattick noted some of the other lots are continuous lots abutting the lake and that they are allowed a dock . as long as there is a primary residence. Mattick stated on the lots where there is a dock, it does not necessarily mean that the City has approved them and that the City has taken a position in the past that docks are not to be placed on the city-owned properties. Eiss stated the lots with the docks are worth more but yet he is being assessed for a]akeshore lot. Mattick stated riparian lots are worth more but that the city's position has been that in order for a lot to � have a dock, it requires a principal structure. fMurphy stated the City's position is generally one of not trying to create trouble for its residents and that � if Mr. Eiss were to press the issue,the City would then need to inform the other three lots that they would ; not be allowed a dock. Murphy suggested that perhaps the City discuss this issue further and look at its � ` options for dealing with this situation. f s" i � McMillan stated other cities have created outlots and allows its residents to have a dock on the outlot, but � � that the LMCD has found over the years that there were a number of problems created in the k � neighborhoods by people wanting to utilize the docks. Orono has attempted to avoid that issue by not w � creating the outlots. � � Murphy stated there is a situation on County Road 19 where there are four or five docks with very �' minimal land and no houses. � � a !s` � F ) � � PAGE 4 of 8 , ( • . � MINUTES OF THE r ORONO CITY COUNCIL MEETING � Monday,March 9,2009 7:00 o'clock p.m. (PUBLIC COMMENTS, Continued) Gaffron stated that situation is located primarily in Minnetonka Beach, and at the time the City of Orono approved the five lots that are located in Orono, it was specifically spelled out that those lots could not have lake access. Gaffron indicated the City has owned these lots for a number of years. White stated he is willing to have the City look into this situation further and that perhaps Mr. Eiss would be entitled to a reduction in his taxes,which he should address with the assessor. White noted unfortunately this month a number of the council mernbers will be absent and that he would recommend this situation be discussed in approximately a month. Randy Gilb ,Long Lake Mayor, stated he is here to thank the City of Orono for tts con t u cooperation ' h Long Lake on many issues ranging from such things as the fire depart nt and the police departme . Murphy stated he di ring the issue of the Old Highway 12 corridor up with Lon ake previously, and that he is aware that the are continuing issues relating to the unsafe condition the Old Highway 12 corridor as it concerns th otholes. A meeting was held on Thursday with M OT representa.tives on an issue relating to the Mon sorri School and that the condition of old Hig ay 12 was discussed at that time. Scott Peterson with OT indicated they were looking at the sit tion and that there might be a resolution by the end of the ye Murphy stated he indicated to Mn/D that the sign issues as well as other issues has resulted in the ci officials being vilified by the busi ss owners and that faster action should be taken to resolve these iss s. Gaffron stated it was his impression tha n/DOT was not in a rry to resolve the issue. Murphy stated in his vietv the City should d a letter addr ss�d directly to the commissioner of Mn/DOT which lays out exactly the situation d request at the situation be addressed in a prompt fashion. Murphy noted Old Highway 12 is sche led t e turned over to the county in approximately six months but that some attention should be directed e situation given the unsafe nature of the potholes. McMillan concurred that a punch list/letter should e c ted and that photographs depicting the potholes be submitted along with the letter. Murphy moved,McMillan seconded,in c junction with t City of Long Lake,compile a tist of issues to be set forth in a joint letter be een the two cities di cted to the Commissioner of Mn/DOT, pending formal approval o he letter by the Long La City Council. Gilbert noted Long Lake has a meet; g ne�ct week and they could addres 't at that time. f VOTE: Ayes 3,Nays 0. �if � Gilbert commented that Mn/,�DOT has taken away approximately 10 percent of Long,Lake's taa:base with the new U.S. Highway 12 orridor and that they have been left with a substandard roa�oing through their town. `.� McMillan concurred he road should be repaired in the near future. \`� �,,, , � PAGE 5 of 8 �oxax�� To: Planning & Zoning Staff From: Michael P. Gaffron,Asst. City Admin. - Long Term Strategy � Date: September 15, 2008 / October 29, 2008 � Subject: Status of City-Owned Lakeshore Lots on Crystal Bay Road Part 1. Baclzground: 10/16/03 Update Part 1 is the complete text of a memo dated October 16, 2003 that documents the background issues and actions taken up to that date. � � "Summary of Issues: The City has owned 4 lakeshore tax parcels on Crystal Bay Road since they were quit-claim deeded to Orono Township and accepted by the Town Board on December 1, 1934. These parcels aze on the lakeshore side of Crystal Bay Road. In total they include approximateiy 180 linea.l feet of shoreline. The distance from the edge of the traveled road to the shore (929.4 contour) ranges from just a few feet to as much as 20 feet. For many years, apparently, the 4 property owners across Crystal Bay Road from these parcels have erected seasonal docks extending from the City parcels. Current staff has been aware of this since the mid-1990's. Due to a complexity of factors that �ill be . described below, until recently staff had not taken formal action to have the docks . eliminated. However, two circumstances in the spring of 2002 prompted staff to order removal of the dock and boat at the most westerly of the parcels, across from 3445 Crystal Bay Road. These circumstances were 1) submittal of a variance application survey by the then owner of 3445 (Palm) that incorrectly included the City parcel across from it; and 2) complaints by neighboring property owners about rental of slips at the `illegal' dock recent�y erected across from 3445. The issues presented to the City Council for consideration at a July 30, 2002 work session included: 1) whether Council supports staff taking appropriate action, including litigation if necessary, to have the offending uses and docks removed from the City parcels; and 2) determination of the City's ultimate intent for these 4 parcels. Histo�ca�Background 1907- Wileys Park platted. The City parcels are parts of 4 lots originally created by the plat of Wiley's Park in 1907. That plat dedicated a 66' wide right-of-way for the old 9-15-08 Page 1 of 6 County Road that followed the route of what is today Crystal Bay Road. Those 4 lots were bisected by the 66' right-of-way, leaving a sma11 strip along the shoreline side of the right-of-way (See Attachment A). 1911 deed - created "bathing and boating rights". In 1911, a number of lots in the neighboring plat of Navarre were transferred from one owner to the next, via a deed that � also granted to those Navarre lots "a perpetual right to use for bathing and boating purposes" the portions of Lots 1-4, Block l, Wiley's Park lying between the north line of the County Road and the shoreline. This right of use was also reserved for other lots within the plats of Wiley's Park, Navarre Heights, Navarre, and Block 10 of Langdon Park. Under current ownership pattems, this could mean that as many as 100-150 properties in the Navarre area might have "bathing and boating" rights over what eventually became the City parcels. City ownership came about in 1933-34 via two quit-claim deeds in favor of Orono Township, which were officially accepted by the Township Board of Supervisors on December 1, 1934. We have found no records which indicate why the parcels were deeded to the City. However, we must assume the Township Board knew of the potential "bathing and boating" rights which affected the parcels. Perhaps the Township was viewed as the logical overseer of property that could potentially be used by many members of the public. Maps and Surveys. The earliest survey we have showing the relationship of the traveled road and the platted right-of-way dates to 1945. Other surveys and County plat maps since then have not been consistent in recognizing the traveled road or the platted right-of way. However, County plat maps for at least the last 40 years have shown the City parcels � _ as separately owned from the inland portions of the 4 originallots. Interpreting "bathing and boating rights". During the 1970's, 80's and into the early 90's a number of properties in the Navarre axea were sold with the right for "bathing and boating" on the Ciry parcels appearing in the deeds. As lake access became dearer, the City more and more often was queried by new Navarre area owners as to "where can I put my dock, my deed says I have bathing and boating rights...". By the mid 1990's the City had firmly established via ordinance tested in the courts that only properties with principal structures could have docks. Our standard response to inquiries became " you can swim or fish or launch a canoe at the City parcels but you can't have a dock". 1995 Research. In 1995 the City Attorney was asked to review whether or to what extent the off- lake owners in the Navarre area actually have rights to use the 4 City parcels. It was determined that in general, the dozens of inland properties that might claim the easement right are subject to the Marketable Title Act which would generally bar any claims by the inland lot owners for private bathing and boating rights, unless a claim on behalf of an inland property attempting to preserve the easement rights had been filed within 40 years of the original 1911 deed. This likely reduces the actual number of legitimate easement holders, and we are so far unaware of any such notice having been filed. However, the City has not fully researched the titles to a11 the properties involved to determine whether such claims have been filed in the past. 9-15-08 Page 2 of 6 The second question asked was whether the 4 adjacent landowners on Crystal Bay Road would have the ability to establish a prescriptive easement over the City parcels by virtue of their continued use of the parcels. It was concluded that in general, land owned by the City cannot be acquired by an occupant merely by reason of occupation per Minnesota Statutes, Sec. 541.01. The only exception might be if the City has taken an affirmative action to abandon its interests in the property. However, we are unaware of any such affirmative action, and the fact that the City prior to 2002 has not attempted to have the seasonal docks removed would not constitute an abandonment action. In a 1996 followup letter from the City Attorney's office, it was noted substantial title review of the 4 City parcels as well as all the potentially benefitted lots would be needed in order to determine to what extent easement .rights are in effect. Even if title work concluded that rights have been terminated, it would likely require a quiet title or registration action to adjudicate same. This could prove to be an expensive process. It should be noted that 3415 Crystal Bay Road, one of the 4 lots across from the dock lots, was sold in 1999 with the "bathing and boating"right appearing on the deed. Recent Status of City Parcels As of July 1, 2002 each of the 4 City parcels had a private seasonal dock, presumably erected by the owners of the properties directly across the road. Two of the four docks had one or more boats that were known to be not titled to property owners in the general area, and were considered as illegal slip rental situations. The property at 3445, purchased in 2001 or 2002 by Larry Palm, was the subject of a spring 2002 variance request for construction of a new residence to replace the existing cabin. Upon receipt of that application, staff determined that the survey was incorrect because it did not show the dedicated County Road or the City parcel as separate from the homestead parcel. After receiving two neighborhood complaints about rental use of the dock at 3445, staff inet with Mr. Palm and advised him to remove the boats and the docks, which he did later that summer Palm also was adamant that if his parcel is subject to this action, that the 3 adjoining owners also be made to remove their docks, and that the property owner at 2264 Shadywood be required to remove his trailer from the City right of way adjacent to the 4 lots. As of summer 2003, the dock at 3445 had been removed, but docks were again installed for the 2003 boating season by the homeowners opposite the other three parcels. Tax Valuation History A question thax arises from the use of the City's dock lots by the property owners across the street is that since those owners appear to be receiving a special benefit not available to other owners of non-lakeshore lots, is whether they somehow are paying for that benefit. The answer is ��es, in terms of property valuation for tax purposes. The January 2, 2001 land valuaxion for tax purposes for taxes payable 2002 for the four adjacent residential lots (3407,3415, 3535 and 3445) is equivalent to that for similarly sized lots on Crystal Bay Road which have legitimate lakeshore rights (See Attachments C & D). In order to determine whether this has been the case for some time, staff compared the t� valuation history back to 1980 for the land portion of these 4 lots vs. 4 similar sized lots on Crystal Bay Road (3369, 3375, 3385 and 3393). It becomes clear that since 1980 or earlier, the 4 residential lots have been valued as lakeshore lots. There is no significant difference between the valuations of these 4 residential lots and other 9-1�-08 Page 3 of 6 legitimate lakeshore lots, and the owners of Lots 1-4 have been paying full lakeshore � ' ' � taxes. It is unknown whether this has an impact on any prescriptive easement claim that might arise from the 4 owners. Issues for Future Consideration Slip Rental. Although it appears two of the four existing docks are being rented out by the off-lake property owners, staff views that as a separate issue from the docks being on City property. The ordinances that in combination act to prohibit dock slip rental have a few � loophol�s that should be closed if Council concludes that the City should be more pro- active in pursuing slip rental complaints. Possible Options for Future Use of Four Citv Lots. A variety of possible options should be considered for ultimate disposition or public use of the four tax parcels. Location factors that make these lots unique and add to the potential for possible enhanced public uses include: -adjacency to the shoreline � -adjacency to a 66' City road right-of-way that extends to the lake -adjacency to a City-owned 20' right-of-way that connects to the Dakota Rail future regional trail corridor -location in the Navarre area with many non-lakeshore homes within walking distance -only 3 blocks to the Navarre Park Other unique aspects of these parcels include: -three of the 4 properties across the road are underutilized in terms of residential use, with building values of $28,000 or less; the primary value of those lots has been in their proximity to the lake, and without lakeshore rights, their market values may be significantly reduced; the extent of such reduction is difficult to determine, but the land value might be reduced by perhaps 1/3 according to the City Assessor. -a culvert under the Dakota rail line had long been causing a neighborhood drainage problem for these lots, as it outletted in their back yards and did not have a specified channel to the lake. This drainage situation was improved via a City project within the last year. The fact that there may be a number of off-lake parties with "bathing and boating rights" over the City parcels might tend to make some use options more complicated. Options for possible long-term use that could be explored might include the following: 1. Do nothing, let the four lot owners across the road continue to put docks on City property. Deal with rental slip situations as a separate issue. 2. Require removal of the docks from the 4 City parcels. This has potential to result in a costly legal battle since the property values will decrease significantly as soon as lake access is denied. 3. Sell each parcel to its opposite off-lake landowner (Question for City Attorney: Can the City sell this property?) and let each owner deal with the consequences of the potential multiple holders of"bathing and boating rights". 5-1�-08 Page 4 of 6 v ` 4. Lease the individual lots to the respective four owners for unlimited lakeshore access. 5. Lease the individual lots to the respective four owners for limited lakeshore access, perhaps limiting the number and ownership of boats stored on the site. 6. Lease the lots as a group to an association of the four, to have one joint use dock on the property subject to an annual joint use dock license with limits on the number and ownership of boats stored. Such a dock might be located to allow access for the possible off-lake holders of"bathing and boating" easement rights. 7. Require that the docks be removed, develop the site for renta.l City dock space, to be allotted on a lottery basis. Would require that parking area be developed, which probably means acquisition of one or more of the 4 off-lake lots. 8. Acquire all 4 off-lake homestead parcels plus the back lot (3447 Crystal Bay Road), re-route Crystal Bay Road to the south, develop a stormwater pond and a neighborhood park or beach area at the site. 9. Other, or some combination of the above. Council Action to Date (As of 10/16/03) The City Council was presented with the above information at a work session on July 30, 2002, and suggested the following: 1. Get title work for the 4 City lots and the 4 residential lots across the road to determine what how the City lots are encumbered and whether the resrdential lots . have any specific easements over the City lots. 2. Get airphotos for pre-1975 to determine whether there is the potential for any of the 4 residential owners to claim a grandfathering. (We have since researched old airphotos and have concluded that docks extended from the City lots in many years prior to 1975.) 3. Inform the residential owners we will not allow docks to return in 2003. Because the basic research of items 1 and 2 was not completed before the 2003 boating season, the City did not force the issue of dock removal for 2003. The issue of how to proceed remains for Cotuicil consideration." Part 2. Additional Information Added 9/15/08 & 10/29/08 City Council Resolution No. 5065 was adopted October 27, 2003 approving variances for a new home at 3445 Crystal Bay Road. That resolution included a condition/informative clause stating "The applicant is advised that the property does not abut the shoreline of Lake Minnetonka and is not considered as riparian by the City of Orono". 9-15-08 Page 5 of 6 � y A residence was subsequently built at 3445 and apparently marketed as a lakeshore property. While the property has since gone through a number of ownerships, the City has steadfastly continued to advise current and potential owners that 3445 is not a lakeshore lot and cannot have a dock. The City had the 4 lots surveyed in April 2006 in preparation for further action to define the . potential user rights associated with the parcels. In October 2006 the City Council authorized submission to Hennepin County of an application for registration of title of the four parcels, with the expectation that the registration process would resolve any identified title issues and clarify what interests neighboring and nearby property owners have in these lots. The City also had an expecta.tion that the substantial title research work involved in this registration process would be completed by Hennepin county staff. It was learned in March 2008 that the County would not, in fact, proceed with the necessary.title work due to the magnitude of the effort required to research approximately 125 lots. The City Attorney subsequently advised the City Council that the title research needed would likely cost $25,000-30,000. The City Council was not prepared to undertake that expense at this time and the registration process is at a standstill. As of October 2008 the City's position remains as follows: 1) The property at 3445 Crystal Bay Road does not have rights to have a dock at the lakeshore, and because the variance resolution specifically states that this property is not - considered as riparian, and provides notice to the owner and to the public of that fact,the City will take positive action to force the removal of any docks installed on the City parcel across from 3445. 2) The properties at 3407 Crystal Bay Road, 3415 Crystal Bay Road and 3435 Crystal Bay Road similarly are considered by the City as not having rights to a dock on the City lots, but because there have been no formal notifications to that effect via a City resolution or other means, the City has not chosen to take formal action to remove docks installed on the City lots across from those properties. The property owners of these three addresses are aware that future City action may impact their continued ability to have such docks, and that they may be living on borrowed time. 3) A recent review of Hennepin County tax records continues to indicate as it did in 2001 and 2005 that all 4 addresses have been assigned a land value commensurate with similar sized lakeshore properties on Crystal Bay Road that do have lakeshore rights. 9-15-08 Page 6 of 6 ! • " ! � MEMORANDUM TO: MAYOR WHITE AND COUNCIL MEMBERS MANAGEMENT TEAM FROM: WILLIAM WELLS, CITY ADMINISTRATOR SUBJECT: LONG LAKE/ORONO FIRE CONTRACT AND ADDENDUM DATE: APRIL 13, 2009 The following items are attached for Council review prior to discussion of the Long Lake/Orono Fire Contract and Addendutn at the Apxi114`"work session: • �greement and Contract fox Fire Protecrion (20 year agreement between the Cities of Long Lake, Orono and Medina, fully executed) • Contract fox Joint Ownership (Fire Station at 340 Willow Drive North, fully executed) • Addendum to Contract for Fire Protection (draft to include Navarre Fire Station at 3770 Shoreline Drive) CONTRACT FOR JOINT OWNERSHIP THIS CONTRACT FOR JOINT OWNERSHIP entered into as of this day of August, 2001, by and between the City of Long Lake (Long Lake), a municipal corporation, and the City of Orono (Orono), a municipal corporation. RECITALS WHEREAS, Long Lake and Orono are municipal corporations having certa.in � statutory authority which includes, inter alia, the right to acquire, own, manage, sell, convey, lease, or otherwise dispose of real and personal properry as required by the City's interests in accordance with the provisions of Minn. Stat. § 412.211, et seq.; and WHEREAS, Long Lake has the authority to operate the Long Lake Fire Department for the mutual benefit of Long Lake, Orono, Medina, as well as other cities � in accordance with Minn. Stat. § 438.01, et seq., as well as other applicable statutes; and WHEREAS, Long Lake and Orono have on this date entered into a Settlement Agreement which requires the execution of this agreement; and WHEREAS, Long Lake and Orono wish to provide for the joint ownership of the land and building upon which the New Long Lake Fire Station will be relocated and will form a Joint Fire Station Construction Committee to review and oversee the design and construction of the Replacement Fire Station. NOW, THEREFORE, for and in consideration of the mutual covenants contained herein and other good and valuable consideration, Long Lake and Orono agree as follows: 1. Pur�ose. The purpose of this Agreement is to provide for the joint ownership of the land and building upon which the New Long Lake Fire Station will be relocated at 340 Willow Drive, Orono, Minnesota; and to establish a Joint Fire Station Construction Committee to oversee the design and construction of the New Long Lake Fire Station. 2. Definitions. The following terms shall have the following meaning for purposes of this Agreement: a. "Replacement Land" shall mean approximately three acres of land located at 340 Willow Drive, Orono, Minnesota, upon which the Replacement Fire Station Building for the Long Lake Fire Department will be located. b. "Replacement Fire Station" shall mean the New Replacement Fire Station Building to be constructed at 340 Willow Drive, Orono, Minnesota. A new building will be constructed to which the Long Lake Fire Department will be relocated as soon as the building is completed. c. "New Fire Service Agreement and Contract for Services" (New Fire Service Agreement) shall mean an amendment of the Agreement and Contract for Fire Services as contemplated by this Agreement. d. "Good Cause" for term,ination of this agreement shall mean, but is not 1'united to, a pattem of inadequate service quality, including inadequate response to calls, inadequate training, and inadequate handling of calls; and/or a pattern of budget overruns. 2 3. Replacement Fire Station Land. The Replacement Fire Station Land shall be located at 340 Willow Drive, Orono, 1Vlinnesota. It is estimated that the Replacement Fire Station will require approximately three acres. The property shall be surveyed and a separate legal description prepared for the three acres upon which the replacement fire station shall be situated. The costs of surveying and obtaining the new legal description shall be paid out of the MnDOT settlement. The land will remain in Orono and Long Lake agrees to execute a covenant in recordable form to be prepared by Orono in which Long Lake agrees that it will not seek annexation of the land into the City of Long Lake. Orono shall take whatever reasanable action is necessary to apply for and obtain a property tax exemption for the replacement fire station land. The Replacement Land shall be owned jointly by Long Lake and Orono. A deed shall be prepared identifying Long Lake and Orono as joint owners which shall be executed and recorded at the sole expense of Orono. Initially, the ownership interests � shall be 60 percent to Orono, and 40 percent to Long Lake. The ownership interests sh�I� change on a yearly basis, effective December 31, over the course of 20 years; so that at the end of 20 years the ownership interests shall be 50 percent Long Lake and 50 percent Orono. The interests of each shall change each year at the end of each year, commencing with December 31, 2001, at the rate of one-half of one percent to a total of 10 percent at the end of 20 years (December 31, 2020). 4. Replacement Fire Station. The Replacement Fire Station shall be located at 340 Willow Drive, Orono, Minnesota. It shall be identified as the Long Lake Fire Station 3 and shall consist of six bays and shall be between 19,100 and 20,100 square feet. The Fire Protection Agreements shall be amended to provide that Long Lake shall be responsible for the ongoing needs to operate and maintain the Replacement Fire Station. The costs associated wittl the operation and maintenance of the building, including utilities and insurance; shall be provided for in a new Agreement and Contract for Fire Protection, under the same cost-sharing formula as is cunently in place. Orono agrees that upon receipt of evidence that the MnDOT settlement check has been deposited in the Long Lake/Orono escrow account that it shall forthwith deposit an additional $680,000.00 into the same escrow account. In lieu thereof, Orono may defer depositing its $680,000.00 to a subsequent date which is on or before February 1, 2002, so long as it also deposits the additional interest that would have accrued on that amount had it been deposited on the same date as the MnDOT check. The $680,000.00, plus the $200,000 reimbursement for the cost of the replacement land, is intended to cover the shortfall between the MnDOT award and the cunent estimated costs of the replacement fire station building. The escrow account balance shall be used in its entirety to provide for the costs of the design and construction of the Replacement Fire Station for the Long Lake Fire Deparnnent. In the event that the entire amount of the escrow account balance is not used for the Replacement Fire Station, by reason of reduction in size of the proposed building, or for any other reason, the balance shall be owned 50 percent by Long Lake and 50 percent by Orono. Similarly, in the event that the cost of the Replacement Fire Station should exceed the MnDOT settlement, and the Orono contribution of$680,000.00 plus the $200,000.00 4 reimbursement for the cost of the Replacement Land, and all accrued interest, then Long Lake and Orono shall share equally in the cost of any additional shortfall for the cost to design and construct the Replacement Fire Station. The Replacement Fire Station shall be owned jointly by Long Lake�and Orono. Initially, the ownership interests shall be 60 percent to Long Lake, and 40 percent to Orono. The ownership interests shall change on a yearly basis, over the course of 20 years; so that at the end of 20 years the ownership interests shall be 50 percent Long Lake and 50 percent Orono. The interest shall change each year at the end of each calendar year, commencing with December 31, 2001 at the rate of one-half of one percent to a total of 10 percent at the end of 20 yeazs (December 31, 2020). 5. Joint Fire Station Construction Committee. The cities of Long Lake and Orono shall appoint three representa.tives from each community to serve as representatives for the Joint Fire Station Construction Committee (Joint Committee). The Fire Chief of the Long Lake Fire Department will serve as a non-voting advisory member. a. A Joint Fire Station Construction Committee (Joint Committee) shall be established which shall consist of three representatives of Long Lake and three representatives of Orono who shall be appointed by the City Councils of the respective cities. The City administrators from each City shall serve as representatives on the Joint Committee. The Fire Chief of the Long Lake Fire Department shall serve as a non-votina advisory member of the Joint Fire Station Construction Committee, unless appointed as one of the 3 voting members by either City. A City of Medina representative shall serve as a non-voting member of the Joint Committee. The City Administrators of Orono and Long Lake shall jointly chair the Joint Committee. Meetings of the committee shall be called by the chair or by a member of the committee maki.ng a request 5 for a meeting to the chairs. The chairs shall schedule the meetings upon reasonable notice. b. The Joint Committee will operate by a majority vote of the six representatives. A majority shall require four affirmative votes. � c. The Joint Committee will be responsible to review and oversee the design and construction of the Replacement Fire Station. The Joint Committee shall utilize as technical advisors for the design and construction of the replacement fire station, an architect and owner's agent or construction manager. The Joint Committee shall determine the design and construction process to be used. The selection of the design and construction consultants by the Joint Committee shall require solicitation of requests for proposals from consulta.nts. The Joint Committee shall make its selection from the competitive proposals. 6. Oneration and Maintenance of Land and Building. Long Lake shall have the overall responsibility to oversee the operation and maintenance of the land and building upon which the Long Lake Fire Station is to be relocated. However, expenditures will require approval throuah the budgeting process set forth in the Amended Fire Protection Agreements. Liability and fire and casualty insurance shall be carried on the Replacement Land and Replacement Fire Station, naming both Orono and Long Lake as insureds, in. an amount determined to be suff'icient by both cities based on the recommendations of the insurance agents of both cities; the costs of which insurance are to be shared in the same way as other operating costs under the Fire Service Agreement. 7. Term. This Agreement shall be effective upon the date of execution, and shall extend through December 31, 2020. It shall automatically extend for successive five 6 (5) year extensions unless one of the cities covered by this agreement serves notice of termination not less than three (3) years before the original termination date or the termination date of any subsequent extension. This Agreement may not otherwise be ternunated except for any of the following reasons: . a. The express agreement of both cities to terminate the Agreement; or b. The expiration of the term of the Agreement provided that the three-year notice of termination preceding the expiration of the term is given; or c. An event that makes it unlawful for all or substantially all of the purpose of the Agreement, i.e. joint ownership of the land and building to be continued; or d. For good cause as defined above; or e. For material breach of this Agreement provided that the city seeking termination first provides the other city written notice and thirty (30) days to cure. � 8. Restriction Upon Sale or Encumbrance of the Propertv or Interest. No city may sell, assign, transfer or encumber its interest in the Replacement Land or Replacement Fire Station or seek to condemn the interest of the other city by eminent domain without the express consent of the other city. Further, no sale, transfer, or encumbrance may occur except as expressly provided in this Agreement. 9. Rent and De�reciation. Because the Cities of Long Lake and Orono will jointly fund and own the Replacement Land and Replacement Fire Station, the Cities of Long Lake and Orono will not be responsible for paying rent or depreciation on the land or 7 building. Prior to initiating a rental or depreciation charge to the City of Medina, a twenty-four month notice will be provided. � 10. Administration Fee. The Administration Fee shall be $17,200 in 2002, as set forth in the proposed operating budget under the Agreement and Contract for Fire Protection. The Administration Fee includes Long Lake's administrative overhead expenses. The Administration Fee may be adjusted from year to year through the Annual Fire Services Operating Budget review and approval process. The cost-sharing formula for the payment of the Administration Fee shall remain unchanged. 11. Notices. Any notice, request, demand, or other communication permitted or required shall be delivered or mailed to the following: a. Long Lake: City Administrator, with a copy to City Attorney b. . Orono: City Administrator, with a copy to City Attorney 12. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns. 13. The parties agree to execute and deliver any and all instruments that may be necessary to carry out the intent and purpose of this Agreement, including without limitation, a recording of the major terms of this agreement on the deed for the Replacement Land. 8 14. This Agreement may only be amended upon a writing executed by each of the parties hereto. CITY OF LONG L Dated: gy I Dated: gy Its City Administrator CITY OF ORONO Dated: By Its M yor Dated: gy Its City Admirustrator 9 AGREEMENT AND CONTRACT FOR FIRE PROTECTION THIS AGREEMENT AND CONTRACT made and entered into this/.5 day of ��fG p��., 2002 by and between the City of Long Lake a municipal corporation of the County of Hennepin and State of Minnesota(hereinafter referred to as Long Lake), the City of Orono, a . municipal corporation of the County of Hennepin and State of 1Vlinnesota(hereinafter referred to as the Contracting City), and the City of Medina, a municipal corporation of the County of Hennepin and Sta.te of Minnesota (hereinafter referred to as the Contracting City), and witnesseth: WHEREAS,the City of Long Lake has the facilities and equipment and is willing and able to provide fire protection service to the Contracting City, and WHEREAS,the Contracting City does desire to have fire protection service furnished by the City of Long Lake Fire Department. NOW, THEREFORE in consideration of the covenants herein contained the parties hereto agree as follows: 1. Definitions A. The term Contracting City or the Contracting Cities means any city which is a party to this Agreement or similar Agreement which by its terms is interrelated with this Agreement for the purposes of sharing the costs and the services of fire protection provided by the Long Lake Fire Department. The Contracting Cities are Orono, Medina and Long Lake. B. City Fire Service Area is the area within a Contracting City receiving fire protection from the Long Lake Fire Department. (City Fire Service areas are shown in Appendix A. attached.) The Total Fire Service Area is the sum of all City Fire Service Areas. 2. Services to be Rendered During the term of this agreement Long Lake shall furnish all the fire fighting services, rescue/medical rescue services, and related fire protection services to the Contracting Cities for the Total Fire Service Area outlined in red on the attached map marked Exhibit A hereinafter referred to as "The Total Fire Service Area." All of said Total Fire Service Area is located within the corporate limits of the Contracting Cities. 3. Level of Service Long Lake through its fire department shall endeavor to provide the services listed in paragraph 2 above, including but not limited to,protecting and saving life and property from destruction by fire in the City Fire Service Area of each Contracting City to the same extent as it does within the City Fire Service Area of Long Lake. In the event of two fire calls received within the same time frame, the call first received shall have priority and the second call shall be answered as soon as possible. Long Lake will furnish sufficient staff to each call to safely, legally and effectively operate all necessary vehicles and equipment and provide all necessary services. 4. Command Responsibilitv � � Subject to the terms of this agreement, the Fire Chief of Long Lake or the Chief s designee shall have the sole and exclusive right and responsibility to prescribe the manner and method of giving the alarm for fire within the Total Fire Service Area and to prescribe the manner and method of responding to calls and rendering the services contemplated. The said Fire Chief or designee shall immediately upon arriving at the scene of any alarm or fire emergency have the sc�le and exclusive responsibility and authority to direct and control any and all fire fighting and the emergency operations at such scene or scenes. 5. Volunteer Fire FiQhters of the Citv of Long Lake Personnel assigned to provide fire protection services in the Contracting Cities shall be volunteer firefighters of the City of Long Lake,which City shall assume all obligations with regard to Worker's Compensation, Firemen's Relief Association, withholding tax, insurance, etc. for such volunteer firefighters, if any. The cost of such obligations shall be a part of the costs attributed to the operation of the Long Lake Fire Department and will be included in the Annual Fire Services Budget Package. � ' 6. Nature of Long Lake Undertakin,g In no event shall this agreement be conshued to fix upon Long Lake any responsibility or liability to the Contracting Cities or to third parties which are greater or different in kind than the responsibilities and liabilities bome by the Contracting Cities if they were providing such services through their own fire departments. 7. Liabilitv Insurance Long Lake shall carry liability insurance in an amount no less than $1,800,000.00 protecting itself and the other Contracting Cities against damage claims of its fire fighters for personal injury sustained while in service within the said limits of the Contracting Cities as hereto set forth. The amount of the insurance coverage shall be reviewed annually and if determined to be inadequate the amount of the coverage shall be adjusted accordingly. And further, Long Lake shall carry liability insurance in an amount no less than $1,800,000.00 saving the contracting cities harmless so faz as acts of the City of Long Lake, its fire department and its fire fighters are concemed. The City of Long Lake shall review the amount of the coverage annually and if determined to be inadequate,the 2 amount of the coverage shall be adjusted accordingly. The cost of such insurance shall be a part of the costs attributed to the operation of the Long Lake Fire Department and will be included in the Annual Operating Budget. Nothing in this contract shall be construed as waiving the statutory liability limits of any city,which is a party to this coritract. 8. Lone Lake Operational Responsibilitv The City of Long Lake shall be responsible for managing the operation of the Long Lake Fire Department, and for managing the on-going operation and maintenance of the Long Lake fire station. This includes carrying builders risk insurance during construction of the new Fire Station and carrying hazard insurance on the Fire Station thereafter. Long Lake shall charge an annual Administrative Fee for these services. The Administrative � Fee of$17,200 for 2002 includes Long Lake's admirustrative overhead expenses. The Administrative Fees may be adjusted from year to year through the Annual Fire Services Operating Budget review and approval process. The costs related to the operation of the Fire Department, including the on-going operation and maintenance of the Fire Station, shall be included in the Annual Fue Services Operating Budget. 9. Budget Package The Long Lake Fire Department's annual operating expenditures will be controlled through an Annual Fire Services Operating Budget. When the Annual Fire Services Operating Budget is approved,the expenditures may not exceed the level set in the Budget without the approval of all parties to the contract. If, during the 20-year term of the agreement, a Contracting City chooses not to approve a proposed Annual Fire Services Operating Budget, the Annual Fire Service Operating Budget increase will be limited to the average annual General Fund Budget increase of the Contracting Cities, ��ew Annual Fire Services Operating Budget is approved by all Contracting Cities. 9.1 Definitions A. The Annual Fire Services Operating Budget refers to the calendar year operating budget of the Long Lake Fire Department. This budget will become the official Annual Fire Services Operating Budget upon ratification by the Contracting Cities. The Annual Fire Services Operating Budget incorporates all costs of departmental operations including, but not Iimited to, the costs of the on-going operation and maintenance of the fire station, Long Lake's Administrative Fee as defined in Section 8 of this Agreement, and annual contributions to the Long Lake Volunteer Fire Relief Association Retirement Fund. B. The Annual Fire Services Capital Budget refers to the calendar year capital budget of the Long Lake Fire Department. The Annual Fire Services Capital Budget includes Major Equipment items and major repairs/rehabilitation of the Fire Station. 3 9.2 Budget Process By August 15 of each year during which this agreement remains in effect,the City of Long Lake will provide an Annual Fire Services Operating Budget and an Annual Fire Services Capital Budget covering the costs related to the provision of fire protection for the next year. The budgets presented to the Contracting cities must have been presented to the Joint Advisory Committee prior to August 1 for discussion and review. Although it is expected that the Annual Fire Services Operating and Capital Budgets which aze provided to the Contracting Cities by the City of Long Lake will have the consensus support of the Joint Advisory Committee, that is not a requirement since each Contracting City has the opportunity for final ratification or rejection. 10. Term of this Agreement This Agreement covers the period January 1,2002 through December 31, 2020. A contract year covers the period January 1 through December 31 of a calendaz year. This Agreement will become effective upon ratification by the Contracting Cities. The term of this agreement will be extended for a period of five years unless this Agreement is terminated as provided in Section 20 of the Agreement. 11. Capital Expenditures Capital expenditures include major equipment and major maintenance,repair, or rehabilitation to the fire station. Major equipment is defined as "rolling stock" or similaz major equipment assets required for performing the fire department mission in the Fire Protection Area. To qualify as major equipment, such assets must have an initial purchase value of at least $10,000. To qualify as major maintenance, repair, or rehabilitation, the cost must be at least$10,000. The City of Long Lake and the Long Lake Fire Department shall prepare a 15-year major equipment replacement plan, and a 15-year plan for major maintenance, repair, or rehabilitation items related to the fire station. These 15-year plans will be the basis for the preparation of an annual capital budget. Neither the approval nor lack of disapproval of the 15-year plans by the Contract Cities creates any obligation for final approval or funding of any specific capital expenditure. Final approval of capital expenditures occurs as part of the Annual Fire Services Capital Budget approval process. Capital expenditures must be approved by a minimum of two cities and the combined funding shazes of the two cities must be greater than 60%. Once this level of approval is obtained, all Contract Cities are obligated to fund their share of the expenditures. The final approval of capital expenditures occurs as part of the Annual Fire Services Capital Budget approval process. When a city approves the Armual Fire Services Capital Budget, the city is also agreeing to pay its share of the cost of capital expenditures � included in the Annual Fire Services Capital Budget up to the budgeted amount, for the items budgeted. Each Contracting City agrees to maintain its own fund for capital expenditures. When a capital expenditure is to be made, the following process for sharing the funding will be used: A. Long Lake will have the option of funding any percentage of the total,which is equal to or greater than the average of its last three City Budget Percentages including the current calendar year. B. Orono will have the option of funding the remaining amount. If Medina does not wish to fund the total of the remaining amount, it must fund at least the average of its last three City Budget Percentages including the current calendar year and may fund more if it chooses. C. Medina will fund the balance remaining to be funded after Long Lake-and Orono have specified their funding amounts. 11.1. Disposition of Major Equipment Upon Termination In the event that this Agreement is terminated as provided in section 20 of this Agreement, Long Lake will have the right to purchase each Contracting City's ownership share of each Major Equipment item for cash at the original amount funded by that city. In the event Long Lake does not exercise its right to acquire the major equipment items within sixty(60) days of termination, it will have � waived its right to acquire full title to the equipment. If Long Lake waives its right to acquire full title to a particulaz Major Equipment item,the Contracting City with the largest ownership share of that item shall have the right to acquire full title to the item by paying the arnount funded by each of the other Contracting Cities. If that CiTy dec�ines to acquire full title, the remaining Contracting City may acquire title on the same terms. In the event that no Contracting City wishes to acquire full title to a particular Major Equipment item, it shall be sold and the proceeds of the sale divided between the Contracting Cities pro-rata to their original funding. All Major Equipment items funded during the term of the contract, including extensions, will be covered by this terminating procedure. The dissolution language applies to all equipment purchased, and fund balances accrued, since 3anuary 1 of 1993. This language is not intended to address any claim cities may have regarding equipment purchased prior to January 1, 1993. No contracting city shall have the right to transfer or encumber any major equipment purchased after January l, 1993. � 12. Emer encv Expenditures When there is a need for emergency rriajor equipment repair or emergency building repair, or other emergency need that will have a substantial negative impact on the operational capabilities andJor safety of the,firefighters or of the fire station if not immediately addressed, the emergency expenditures may be authorized by the Long Lake City Administrator and the Long Lake Fire Chief, or their designees. If these costs exceed the approved budget amounts, the Long Lake City Administrator and/or the Fire Chief will,within thirty days of the expenditures, notify the Contracting Cities of the expenditure, including an explanation of the emergency need. Emergency expenditures will be shared according to the cost sharing formula set out in this contract. Any reimbursement of the emergency expenditures through insurance, emergency/disaster � assistance funding, or other sources will be credited to the Contract Cities in the same manner as the costs were shared. 13. Annual Audit of Actual Costs . The Contracting City understands and agrees that it is impossible to project with complete accuracy the actual costs of labor and equipment as well as the service to be required by each Contracting City for the forthcoming contract year and thereby hereby agrees to a yearly audit to adjust the prior year's estimated cost of service as set forth above to the actual costs incurred by the City of Long Lake. On or before Apri130th of each year the City of Long Lake will tabulate the actual cost of the fire department budget for the prior contract year and will submit to the Contracting Cities a summary of the actual costs. The actual costs set forth for the prior contract year may result in either a surplus or deficit with respect to that year's Annual Operating Budget. Any surplus shall be refunded to the contract cities in the same ratio as the cost allocation formula. Any deficit shall be funded by the contract cities in the same ratio as the cost allocation formula. It is expected that expenditures will remain within the Annual Operating Budget amounts and will only exceed such budget amounts in the case of an emergency expenditure as provided in Section 12 or when mutually agreed to by the Contracting Cities as provided in Section 14 of this Agreement. 14. Unforecasted Exvenditures Notwithstanding any of the above, the Contracting Cities shall have the right to be heard regarding any proposed expenditures which are not identified in the Annual Operating Budget and which exceed $5,000. Notice of such proposed, non-budgeted expenditures shall be given in writing to the Contracting Cities prior to actual expenditures for such items and the Contractin� cities shall thereafter have 21 days in which to approve or disapprove the same in writing and if there is no response which disapproves the expenditure, it is agreed that such proposed expenditures may be made and the cost thereof shall be included in the Annual Operating Budget as if ratified originally. 6 15. Contract Pavments The City Budget Share (See Section 16.2) of each Contracting City shall be paid in equal quarterly installments on January 1, April 1,July 1 and October l of the next contract year by the Contracting City to the City of Long Lake. Long Lake agrees to provide each Contracting City with reasonably detailed information relating to the actual expenditures against the Annual Operating Budget at its request and on a quarterly basis and agrees to make its records available to the Contracting City for inspection for the purpose of determining the basis for the allocation of costs to fire protection. 16. Arbitration � � If a Contracting City is aggrieved by the determination of the City of Long Lake as to the allocation of the actual costs of the prior year's service, the Contracting City may appeal said determination within 30 days after receipt of the City of Long Lake's audit. Said appeal shall be in writing and shall be addressed to the City of Long Lake asking for arbitration by a board of arbitration. The Board of Arbitration shall consist of three persons; one to be appointed by the City of Long Lake, one to be appointed by the appealing Contracting City, and the third to be appointed by the two so selected. The name of each arbitrator shall be submitted in writing to the other party. In the event that the two arbitrators so selected do not appoint the third arbitrator within 15 days after receipt of written notice of appointment of either of the first two azbitrator's, the Chief Judge of the District Court of Hennepin County shall have jurisdiction to appoint, upon application of either the Contracting Cities or the appealing Contracting City,the third arbitrator to the Board. The third azbitrator selected shall not be a resident of either Contracting City, and shall be a city manager or administrator. The arbitrator's expenses, not including counsel fees, incurred in the conduct of the arbitration, shall be divided equally between the parties to the arbitration. Arbitration shall be conducted in accordance with the Uniform Arbitration act, Chapter 572 of the Minnesota Statutes, and any decision shall be rendered within 60 days of appointment of the third arbitrator. Said arbitration shall be binding on both parties. 17. Special Fire Funds In order to facilitate the accounting and reporting of all fire funds associated with the Annual Operating Budget, a Fire Operating Fund will be maintained by the City of Long Lake. No Major Equipment Fund will be maintained by the City of Long Lake on behalf of the Contracting Cities as a part of this agreement since under the provisions of Section 11 each Contracting City agrees to maintain an Equipment Fund on its own. 7 18. Fire Services Joint Advisorv Committee Each Contracting City may appoint two volunteer members to a Fire Services Joint Advisory Committee and the name of such appointees shall be furnished to Long Lake. The Fire Services Joint Advisory Committee shall meet no less than four times per yeaz to discuss and make recommendations regarding concems or problems identified regarding the provision of fire service, and to periodically review budget updates. The Fire Services Joint Advisory Committee shall have the specific task of reviewing the Fire Department's operating and capital budget proposals for the next calendar year and � arriving at a consensus Annual Fire Services Operating Budget and Annual Fire Services Capital Budget by August 15 of each calendar year. 19. Cost Sliaring Formula Each of the Contracting Cities receiving fire service from the Long Lake Fire Department shall pay a share of the costs of the Annual Fire Services Operating and Capital Budgets. The City's Budget Share will be based upon a formula, which takes into account the Market Value of the protected property and the fire department staff resources utilized to protect the property. The objective is to fairly allocate"insurance" type costs and "effort and variable"type costs. The Contracting Cities have agreed that 70%of the shaze allocation will be based upon Market Value and 30% upon fire department hours expended on calls to the City Fire Service Area. 19.1 Definitions: A. City Fire Service Area is the area within a Contracting City provided fire protection under this contract. The City Fire Service Area for each Contracting City is shown in Appendix A (attached). B. City Fire Service Area Market Value is the assessed market value of the property in the City Fire Service Area and is based upon the assessed mazket value for the year immediately preceding the budget year. The source of the assessed market value data shall be the Hennepin County Assessor's Office. C. Total Service Area Market Value is the sum of the City Fire Service Area Market Values of all contracting cities. D. City Market Percent is the percentage computed by dividing the City Fire Service Area Mazket Value by the Total Service Area Market Value and multiplying by 100. E. City Call Hours is the total number of fire fighter hours expended in responding to calls in the City Fire Service Area as recorded by The Long 8 Lake Fire Department during the preceding three year period measured from January 1 through December 31. _ F. Total Call Hours is the total number of fire fighter hours expended in responding to calls in all contracting cities during the previous three-year period measured from January 1 through December 31. G. Call Percent is the percentage computed by dividing the City Call Hours by the Total Call Hours and multiplying by 100. , H. City Budget Percentage is the percentage derived from the sum of the City Market Percent multiplied by 0.7 and the City Call Percent multiplied by 0.3. 19.2 Budget Shaze Computation: City Budget Share is the City Budget Percentage multiplied by the Annual Fire Services Operating Budget and the resulting product divided by 100. 19.3 Formulae for Calculations A. City Market Percent = (B x 100)/(C)percent . Where B =CityFire Service Area Market Value C=Total Fire Service Area Market Value � B. Call Percent = (E x 100)/ (F)percent Where E=City Call Hours F=Total Call Hours C. City Budget Percentage = [(City Market Percent x 0.70) + (Call Percent x 0.30)] D. City Budget Share = (City Budget Percentage/100) x (Annual Operating Budget less Major Equipment expenditures) E. The City Budget Share of capital expenditures is determined under the provision of Section 11. 20. Termination of this A�eement This Agreement shall be terminable only as follows: 1. For"Good Cause"by any city that desires to terminate its participation in the Agreement provided that such termination is preceded by a minimum of 36- g months notice. "Good Cause" shall mean,but is not limited to, a pattern of inadequate service quality; including inadequate response to call, inadequate training, and inadequate handling of calls; and/or a pattern of budget overruns. 2. For breach of contract; � 3. By rriutual agreement of all cities covered by the agreement. 4. City of Medina may terminate its participation in this Agreement without cause, subject to providing a twenty-four month notice of termination. 5. This agreement may be renegotiated or terminated by the cities to enable participation in a fire district or similar organizational arrangement. 21. Provision to ad�ust Citv Fire Service Area During the period of this agreement a Contracting City may request that its City Fire Service Area be reduced or increased in size. Such a request must be made prior to July 1 of the Contract Year to allow time for preparing the Annual Fire Services Budget for the succeeding Contract Year. In the event that a Contracting City proposes an increase to its City Fire Service Area, the City of Long Lake in consultation with the Long Lake Fire Department shall have the right to lunit the increase to assure that coverage at the service level provided under this agreement can be achieved by the Fire Deparhnent. The service area shall not be increased to the extent that it requires the purchase of additional equipment unless all parties to the contract agree. In the event that a Contracting City . wishes to decrease and/or alter the location of its City Fire Service Area it may do so by specifying those changes in writing by July 1 of the year prior to the contract year with respect to which such change is to be effective. 10 Approved by the Cities of Long Lake, Orono, and Medina on the date first written above. CITY OF LONG LAKE ATTEST _� � `� . R CITY ADMINISTRATOR CITY OF ORONO ATTEST -l __.__ , �`.., - ,ry . :.-� ; r / !�.'��' �� % ,. �f,/�E--'-� v G` MAYOR CITY AD � STRATOR . CITY OF MEDINA ATTEST Y r - �' ` /1��.�c. �� i�'� MAYOR CITY ADMIlVISTRATOR>��'�� 11 . 4 ADDENDUM TO CONTRACT � FOR FIRE PROTECTION ��: � THIS CONTRACT is made and entered into this day of , 2007 between the CITY OF LONG LAKE, Hennepin County, Minnesota, and the CITY OF ORONO,Hennepin County, Minnesota(herein collectively the "Cities"). . WHEREAS,the Cities previously entered into an"Agreement and Contract for Fire Protection"dated October 15, 2002 (hereinafter the "Fire Protection Agreement") attached hereto as Exhibit"A"; and WHEREAS,the Cites also previously entered into a"Contract for Joint Ownership"of a new fire station located at 340 Willow Drive, Orono, Minnesota(hereinafter the"New Station") attached hereto as Exhibit"B"; and WHEREAS,the Contract for Joint Ownership provides that at the time of completion of construction of the New Station that Long Lake will be responsible for operating and maintaining the New Station, and that the costs incurred by Long Lake for operating and maintaining the New Station building along with the costs associated with the operation of the services provided from the New Station would be reimbursed to Long Lake as part of an amended Fire Protection Agreement using the same cost-sharing formula as is currently in place; and WHEREAS,the New Station has been built and is operational; and WHEREAS,the Cities desire to amend the existing Fire Protection Agr�ement to include fire services and operational costs related to the New Station. NOW,THEREFORE, in consideration of the mutual promises and agreements herein set forth the Cities do hereby agree as follows: 1. NEW STATION OPERATIONS. Long Lake agrees to oversee all activities and operations at the New Station under the same terms and conditions as previously agreed to in the existing Fire Protection Agreement. All references in the existing Fire Protection Agreement to the Long Lake Fire Station shall be extended to include the New Station. 2. COSTS AND EXPENSES. Payment for the costs associated with the operation and maintenance of the New Station building and the costs associated with the operation of the services provided from the New Station shall be included in and as set forth under the existing cost-sharing agreement formulas and terms. 3. DEFINITIONS. The Cities agree that "City Fire Service Areas" and the "Total Fire Services Areas"have not changed due to the addition of the New Station. 4. SERVICES TO BE RENDERED. The Cities agree that Paragraph#2 of the Existing Fire Protection Agreement is intended to include and cover the services and operation at the New Station. �292z2�o� � JJ.1:11/OS/2007 5. LONG LAKE OPERATIONAL RESPONSIBILITY. The Cities agree that Paragraph#8 of the Existing Fire Protection Agreement includes responsibility for managing the operation of the New Station. APPROVED by the cities of Long Lake and Orono on the date first above written. CITY OF LONG LAKE CITY OF ORONO BY: BY: Its Mayor Its Mayor AND AND � Its City Administrator Its City Administrator 129222v01 2 JJJ:11/OS/2007 -- � � , � i � � i � ` :�_ � � t � \`� � � r t �� '�� . �` � SU � � �l ` �� . � \ ��j�n � � � i , . �1�� y��"��'� � � .� - �� 7 { _'1=-=-�.�,-___�--- .-..._�-._.- : _ � � 7 :�, /'! ,� r+ — E � � � .� � •• — .. .. J � . ... . . , � �� _ _ _ �� ! ' ^ � S � _ � � � � : t � li t , j f r. o > C1 5 � D,� f � , . . �� ► � Xf 33 • 0 ' ,t. ,: � �° (-� `� - � �, . .` . � c c�: — �•,� � ,- " � �. 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