Loading...
HomeMy WebLinkAbout12-15-2009 Council Work Session Packet Council Work Session Tuesday, December 15, 2009, 6:15 p.m. Orono City Council Chambers AGENDA 1. Police Department Update—Correy Farniok (10 ininutes) 2. Website Redevelopment Update—Rachel Dodge/Lin Vee (15 minutes) 3. Bond Sale Analysis —Ehlers & Associates/Ron Olson (10 minutes) 4. Utility Rate Study Presentation—Ehlers & Associates/Ron Olson (60 minutes) 5. Schedule Joint Council and Planning Commission Work Session—Melanie Curtis/Mike Gaffron (5 minutes) 6. Miscellaneous —Mike Gaffron (5 ininutes) a. Topics and Schedule for Upcoming Work Sessions b. Spring Hill Golf Club Plat 7. Comments Regarding I�lfonnation Updates—Lin Vee (5 minutes) Previous Work Session Topics November 24, 2009—Minutes Attached 0 2010 Budget Discussion 0 2010 Fee Schedule 0 2010 Calendar o Sledding at Orono Golf Course o Comp Plan Discussion o Comments Regarding Information Updates November 10. 2009 o Parking Along the Dakota Rail Trail o Consider Establishment of Environmental Commission or Task Force o Comp Plan Discussion o Tax Forfeit Parcel on Arbor Street o Lurton Park Dedication o Impact of Reducing Planning Commission to 5 Members o Paperless Agendas— Status Report o Comments Regarding Information Updates o Miscellaneous Orono City Council Committee of the Whole December 15, 2009, 6:15 p.m. Orono City Council Chambers Present: Mayor Jim White, Council Members Cynthia Bremer, Doug Franchot, Lili McMillan and Jim Murphy; Assistant City Administrator for Long-Term Strategy Mike Gaffron, Finance Director Ron Olson, Police Chief Correy Farniok, Public Works Supervisor Scott Oberaigner, City Clerk Lin Vee 1. Police Department Update • As of 1/8/10, Correy will be in Virginia until the end of March attending the FBI Academy. Scott Boris will be the go-to person, but if a substantial circumstance arises he will return. The Academy consists of 19 credits through the University of Virginia with a physical fitness component and daily classes from 8:00 am —5:30 pm. • Several Council action items will be brought to the January meeting including: o Purchase of squad cars—request to replace 2, third later if needed o Replacement of the 2001 Expedition—mileage is at 81,000 and there have been several recent repairs. Replacement will not be a primary patrol car. o Disposal of weapons—request will include trading 2 current patrol officer weapons and obtaining 4 more weapons for training. • Contract cities—Spring Park is happy with the draft contract. Mayor White commented that Correy should be credited for resolving issues. o Schiefer suggested a meeting with Terry Post at Long Lake to provide a copyof the draft contract and review the language. The contract is basically the same service as Spring Park, but everything related to a supplemental officer has been removed. Addendums are included that refer to cost allocation over the next 3 years. After 2012 all contracts will be consistent between Spring Park, Minnetonka Beach and Long Lake. Council discussed the potential reaction from Long Lake. Correy will meet with Terry Post and review the draft contract. After Long Lake has an opportunity to go through the contract, a meeting will be scheduled with Schiefer. o The new warning sirens will be operational in the Casco point area. o Wayzata will be losing one officer at the beginning of the year, and possibly another later in 2010. Correy has offered to share resources if there is an opportunity and will be meeting with other neighboring cities to discuss the potential to share resources. 2. Website Redevelopment Update • Rachel Dodge stated that the current website software is no longer supported and that the average website changes every 3-5 years. Council approved the purchase of GovOffice, a third party software, earlier in the year. • The IT committee and various staff inembers have been reviewing 4 design layouts proposed by GovOffice. Recommendations will be sent back to the GovOffice designer for revisions. • After a final design is selected, it will take 3-5 weeks for the developers to design a working website. During this time, staff can begin training and working on additional web pages. • Currently Rachel does all the updates. The new software is more user-friendly and can be updated by others. • The goal is to have the new website up and running by spring or early summer of 2010. • The use of Facebook and Twitter as an additional way to communicate with residents was briefly discussed. A policy would need to be adopted. Only information that is already being distributed would be included and there would be no opportunity for public feedback through Facebook or Twitter. Page 1 of 4 Orono City Council Committee of the Whole December 15, 2009, 6:15 p.m. Orono City Council Chambers • 4 designs were distributed and discussed. A fifth design comprised of layout pieces that the committee preferred was also distributed. • Council had positive comments about all of the designs and had no specific objections to any of the designs. • While the content can be changed, the layout would be permanent unless the city pays for changes. At some point, an updated city logo could be added and the pictures could be changed. 3. Bond Sale Analysis • Jonathan North of Ehlers discussed the pros and cons of the capital markets. o Political—con;justification for city to spend money can be controversial o Construction bids—pro; very favorable project bids have been coming in for other cities o Interest rates—pro;42 year low in rates was seen in October • City should review the draft CIP and upcoming projects. • Council noted that if projects are already on the CIP, moving the project to an earlier time may be justifiable. • Concern was expressed that the city's debt service is the highest it's been with a decreasing tax base and revenues. There are many unknown factors related to high-end residential markets and it may be better to wait until the economy improves before the city commits to additional debt. • Olson stated the next two major street projects are on Orono Orchard Road ($1.5 million) and Webber Hills($200,000-300,000) as well as the non-MSA portion of Willow Drive. • North commented that the BBI is assuming rates will be relatively stable absent any major eve nts. • Council questioned if there are available funds that could be used to buy-down the costs of projects. • Orono's debt service isn't high compared to other cities of similar size. The city has traditionally been very conservative. There may be some advantage to borrowing money at a low interest rate and prioritizing upcoming projects. • City Hall, the Navarre fire station, Big Island Park and the Pavement Management Plan are Orono's largest bond obligations. • Ron Olson will put together an analysis of existing bond debt and potential projects for the next 7-10 years. Council will continue to discuss the purchase of additional bonds. The new City Administrator has indicated that she would like to be involved as we continue to update the CIP. • North noted that long-term financial planning is a common topic in cities and depressed market values should be expected for another year. 4. Utility Rate Study Presentation • lonathan North noted that Ehlers has a public finance seminar every year on long term financial planning and Ron Olson will be participating as a panel member in the utility rate study discussion. • The utility rate study was done using information from the draft CIP through 2016. Three funds including Water, Sewer and Stormwater were analyzed. • Water Rates Water rate structure goals are designed to: o Cover costs o Distribute cost across users consistently o Treat users equally (Navarre & Highway 12 areas) Page 2 of 4 Itl! Orono City Council Committee of the Whole December 15, 2009, 6:15 p.m. Orono City Council Chambers 5. Schedule Joint Council and Planning Commission Work Session � Julie Westerland from the Watershed District would like to attend a joint Council and Planning Commission work session to present ideas regarding green development, impervious pavers and other technological advancements and trends. Tom Kellogg would also be available to discuss how the city is currently reviewing development projects and get input from Council for addressing storm water and green technologies. • Council suggested January 26"'as the date to schedule a joint Council/Planning Commission work session. 6. Miscellaneous a. Topics and Schedule for Upcoming Work Sessions o Stephen Grittman is scheduled to attend the January 12`h work session to discuss strategy for the Comp Plan update. o The Common Bond group has talked to Ron Miller and probably won't be successful in purchasing his property. However, they could probably purchase the property north of the fire station. Common Bond will be invited to the January 26`h work session to discuss development of the property behind the Long Lake Fire Station. b. Spring Hill Golf Club Plat o The plat for Spring Hill Golf Club was approved back in 2000. Because the club is also in the City of Medina, there has been a long history of filing the plat. Staff has been working with Tom Crosby to finalize all the details and complete the filing process. o Survey requirements have changed and the plat has been updated by MFRA, which includes documentation of wetland locations. There will now be one tax statement instead of several. o It's important to monitor documents that are sent to other cities for signatures. Some cities rely on their attorneys to track documents that involve approvals by outside agencies. 7. Comments Regarding Information Updates • None Page 4 of 4 I � � �� Orono City Council Committee of the Whole December 15, 2009, 6:15 p.m. Orono City Council Chambers o Comply with state mandate to implement conservation rates by January 1, 2010; which also encourages people to use less water. • Intent for increase in tier rates is to have heavy water users pay higher costs. ' • Water revenue volatility should be considered—less water used; less revenue. , o Wet-dry years impact use ', o Residential usage spikes in summer for irrigation use ' • Operating revenue is slightly below operating expenditures. • Ehlers is recommending adoption of the tier structure and proposed rate changes based on the following: o Current rate structure is quarterly based on fixed costs and metered use for 3 different areas. o Tiering could lower bills for residents. o Rate increases are proposed at 6-8% in 2011-2016; typical of other cities. 0 3 tiers are proposed. Most users fall in first two tiers with approximately 33% in each tier. Allocation of tiers is defensible and rational. • Average water use is 100 gallons per person per day with no irrigation. • Rates are intended to be revenue neutral to city. • Need to revisit rate study in a few years to review usage. • Commercial/multi-family properties: ■ DNR interpretation applies to commercial also. ■ 13 of 41 commercial users in Orono fall into 3`d tier. o January 1, 2010 is the deadline for compliance in the metro area. The city won't be approved for any new wells until in compliance. o Water meters are in process of being replaced. Older meters may not be capturing all the usage as the usage rates seem low. • Reserve recommendations: o Utility funds should have 6 months of operating expenditures 0 100%of next year's debt payment o Small portion of next year's capital cost o Percent of accumulated depreciation • Sewer Rates o Conservation rate structure only applies to water. o Current sewer rates are billed quarterly. o Ehler's recommendation is to maintain overall rate structure and increase rates by 4% annually. The city has been raising rates yearly by approximately 3%. o Met Council expenses are outside the city's control. Met Council has not been collecting all expected connection charges and SAC funds are depleting. To offset their expenses, they are ramping up other costs. • Stormsewer Rates o No change to rate structure is recommended. o Residential equivalent unit rate should increase 8%- 10%annually for several years. • Summary of recommendations from Utility Rate Study: o Adopt rate structure and level of increases as recommended o Consider special assessments o Adopt reserve policies o Update utility study periodically—cities often use outside consultant Page 3 of 4 . , . a MEMORANDUM TO: MAYOR AND COUNCIL MEMBERS FROM: LIN VEE, CITY CLERK SUBJECT: WEBSTI'E REDEVELOPMENT UPDATE DATE: DECEMBER 14, 2009 Rachel Dodge will attend the December 14th Council work session to provide an update on the City of Orono website redevelopment process. Rachel has been working with GovOffice to develop several sample website designs and color schemes. Council will have an opportunity to view the sample designs and discuss their preferences. � � � MEMORANDUM To: Mayor and City Council From: Ron Olson, Finance Director Date: December 14, 2009 Subject: Bond Sale Analysis As part of the Pavement Management Plan, Orono Orchard Road will be reconstructed in 2012. Fundmg for the project will rec�uire a bond sale. Jonathan North from Ehlers will discuss the benefits of accelerating the pro�ect and selling bonds in 2010. „ , � MEMORANDUM To: Mayor and City Council From: Ron Olson, Finance Director Date: December 14, 2009 Subject: Utility Rate Study At the 8/10/09 council meeting, the Orono City Council approved a proposal from Ehlers and Associates to perform a Utility Rate Analysis. Jonathan North and Elizabeth Diaz from Ehlers will be presenting the results of the analysis. . . . ; o MEMORANDUM DATE: 14 December 2009 TO: Mayor White, Council Members FROM: Melanie Curtis, Planning 8�Zoning Coordinator RE: Joint Council 8� Planning Commission Work Session Julie Westerlund the Education/Communications Manager from the MCWD has offered to speak at a work session regarding green development, pervious pavers, and other technological advancements and trends. Additionalty, Tom Kellogg has offered to discuss how we are currently reviewing development projects and get direction from the Council for addressing storm water and green technologies. Staff would like the Council do discuss a date to schedule a joint Council & Planning Commission work session for an informational presentation and question and answer session with Ms. Westerlund and Tom Kellogg. . , � MEMORANDUM TO: MAYOR AND COUNCIL MEMBERS FROM: LIN VEE, CITY CLERK SUBJECT: COMMENTS REGARDING INFORMATION UPDATES DATE: DECEMBER 14, 2009 Attached are the Information Update memos from December 4 and December 11 for reference if Council wishes to discuss any of these items. MEMORANDUM TO: MAYOR AND COUNCIL MEMBERS FROM: ORONO MANAGEMENT TEAM SUBJECT: INFORMATION UPDATE DATE: DECEMBER 4, 2009 � Mike, Ron and Tom Kellogg met with Bob Erickson(former Lakeville city administrator) and Mike Schraad, representing Welsh Companies, regarding the property at 875 Wayzata Boulevard. Property owner Charlie Thompson has advised that he is in the final stages of cancelling the Comforts of Home interest in the site, and is entering into a purchase agreement with Welsh Companies. Welsh is partnering with Ecumen, a national provider of assisted living facilities (http://www.ecumen.or�/senior-housinu� and will be proposing a 54-unit senior assisted living and memory care facility, similar in scope to what was being proposed by Comforts of Home. (MPG) Welsh has had Maxfield Research complete a preliminary assessment of the potential market for senior housing(attached)which indicates market support for the project. We discussed the unique factors regarding development of this site as well as application timing related to our Comp Plan issues with Met Council. In a related note, Erickson indicated that Welsh would be willing(eager?)to allow their ZO-acre site at the SW quadrant of Wayzata Boulevard and Old Crystal Bay Road to be reguided for a mix of higher-density residential use with some commercial retail component if that would help resolve our Met Council issues. Welsh would like the opportunity to present their concept to Council at an upcoming work session- staff suggested January or early February would be appropriate. • Melanie, Mike and Ron met with Lindsey Brown of The Emily Program (http://www.emilyprogram.com/our-programs� and architect Tom Betti regarding use of the Hill School for an inpatient eating disorder treatment program. This would involve some interior remodeling to allow for up to 8 patients. The site is guided for Institutional Use; the RR-1B zoning allows "hospitals for human care, sanitariums,rest homes, nursing homes" as a conditional use. Staff believes the proposed use is similar enough in nature to these listed uses that the use is appropriate at this location. It is anticipated to have less impacts on the neighborhood than the previous school use. They will be applying for a Conditional Use Permit early in 2010. (MPG) • Steve Grittman of Northwest Associated Consultants (NAC) has submitted a proposal to assist with completion of our Comprehensive Plan process. His proposal is attached. The proposal will be on your December 14 agenda for approval. (MPG) . , , �� . Information Update Page 2 December 4, 2009 Also related to the Comp Plan, we have finally received the letter(attached) frorn Met Council denying the sewer extension permit for the Fullerton property at 1135 Spring Hill Road. Kyle Colvin had indicated this apparently had never been mailed to us in March. Nothing surprising in it—just the same old story about offsetting density elsewhere... • Mike and Correy met with Boe Carlson and Don DeVeau of Three Rivers Park District on the Wednesday before Thanksgiving to discuss parking for the Dakota Regional Trail. Jim Brimeyer, Spring Park City Administrator, was also in attendance. The District is going to review the options and come up with a proposed plan to address parking needs. They asked that the City send a letter to the District indicating the actions we have taken; that we have had informal discussions with District staff regarding the parking need; that we are willing to discuss the issues more formally; and that we are willing to cooperate with the district in finding solutions. Mike will draft such a letter for the Mayor's signature. (MPG) • The city received the attached letter and email from Casco Point residents regarding some of their experiences during the reconstruction project. • Minutes from the November 24, 2009 Council Work Session are attached. The Ciry of Orono complies with the Minnesota Data Practices and Open Meeting Law. The recipients of this electronic file are asked not to "Forward"or "Reply to All"concerning information contained in this email. . �, . . MEMORANDUM TO: MAYOR AND COUNCIL MEMBERS FROM: ORONO MANAGEMENT TEAM SUBJECT: INFORMATION UPDATE DATE: DECEMBER 11, 2009 • Stonebay Update. See the attached email from Mike Kayser representing the Stonebay homeowners, and the staff response letter. • Attached is the draft agenda for the Tuesday, December 15th work session. A work session packet will be available at Monday's Council meeting. • A resident on Old Long Lake road has been informed of a code violation relating to the placement of rocks in the right-of way. These rocks present a hazard to the public and our snowplows. The deadline to remove the rocks is today(12/11/09). If they are not removed, Public Works will be removing them on Monday. Soren is aware of the situation. The City of Orono complies with the Minnesota Data Practices and Open Meeting Law. The recipients of this electronic file are asked not to "Forward"or "Reply to All"concerning information contained in this email. . , ,�._ . Orono City Council Committee of the Whole November 24,2009,6:15 p.m. Orono City Council Chambers Present: Mayor Jim White, Council Members Cynthia Bremer, Doug Franchot, Lili McMillan and Jim Murphy; Assistant City Administrator for Long-Term Strategy Mike Gaffron, Finance Director Ron Olson,City Clerk Lin Vee 1. 2010 Budget Discussion • An update and discussion regarding year-to-date expenditures and revenues for the 2009 budget was held. Although revenues are low, it is anticipated that expenditures and revenues will offset each other by year-end. • 2010 preliminary budget hasn't changed significantly. Most of the complaints the assessors have received are from owners who are losing limited market values. The tax rate will go up for first time since 2002 and the tax capacity is going down 2.2%. • 2011 budget assumptions include: o Inflation factor of 3.5%increase o Levy limits remain in effect with maximum levy increase of 3.7% o Property values continue to slide—estimated decrease of 8% o Permit fees remain flat • Tax rate will increase to 15.45% in 2011 based on assumptions. Graphs showing the tax rate and tax levy history were discussed. • The average value for new homes is down to approximately$450,000 from $900,000 a few years ago. The trend seems to be moving toward smaller homes. • It is important to continue to work on the Capital Improvement Plan (CIP). Police garage discussions have been on hold because of economy. After tornado this year, it was evident that the emergency operations center(EOC) in the Police Department would be inadequate in a major disaster. A training room/EOC would be included in a police garage addition. The city may want to consider designating an EOC at the Long Lake fire station. � Council requested a spreadsheet of the status of debt service. Olson indicated that information has been prepared and will be forwarded to Council. 2. 2010 Fee Schedule • Potential fee increases were discussed. Highlights include: o No increase in liquor license fees; may want to consider fee increase for clubs based on membership, as allowed by State Statutes, in the future. o Sanitary sewer connection increases of 6.25%for projects after 1997 based on special assessment rates. o Double fee for Special Event permit applications received within 10 business days of the event, i.e. $50 permit fee would increase to$100. o Annual Service Charge for On-site Septic System program will remain at$55; change fee listing to Annual Septic Fee. o Planning and zoning fees are basically a restructures of where the fees and permits are located. Increase in a few fees to maintain consistency is recommended. • The requirement for additional surveys was discussed. Gaffron noted that although a survey may be on file, it my not accurately reflect the current status of the project/property. At one time staff added hardcover information, but past Councils requested that the surveyor include the hardcover calculations as part of their survey work. Page 1 of 3 . - .. . . Orono City Council Committee of the Whole November 24, 2009,6:15 p.m. Orono City Council Chambers 3. 2010 Calendar • Council determined that work sessions should remain on the Tuesday evening following a Council meeting and the start time will change to 6:30 pm. • Council discussed optional days and times, as well as the possibility of having one work session a month either before or after the regular Council meeting, especially for pro-active type subjects or speakers. • After the new City Administrator starts,the work session schedule will be re-visited. 4. Sledding at Orono Golf Course • For the past several winters, the clubhouse at the golf course has been open to use as a warming house for sledding and staffed by a part-time employee. The previous administrator had planned to have Ron Steffenhagen work on Saturdays and Sundays to keep the clubhouse open during the sledding season. • If Ron Steffenhagen works when the clubhouse is open, there is no cost in wages. If a part-time employee works, wages would cost$500-600. Less than $100 in snacks are sold when the clubhouse is open. • Council determined that use of the clubhouse as a warming house is minimal and should not be open this winter. Sledding will continue to be allowed on the golf course. 5. Comp Plan Discussion • Gaffron received a draft of the updated stormwater management plan from Bonestroo. Finding projects that meet the phosphorus reduction standards will be a challenge. • Lake Elmo has been in contact with Gaffron regarding how Orono has been working with the Met Council on density issues. • The Carlsons are no longer part of the Amber Woods project. Jim MacKinnon is the representative from the bank that now owns the property and holds the letter of credit. The property has been cleaned up and they are working on finishing the existing building. There may be changes for the remaining buildings. Council has little recourse to change what has been approved. The bank/MacKinnon are willing to cooperate and are trying to put something together that will be sellable. • LMCD information was received regarding the availability of"Save the Lake"funds for local projects. • Gaffron stated Steve Grittman, consultant, is in the process of submitting a more formal proposal for working on the comp plan update. Some sites that Council may want to consider reguiding for higher density were identified. Council should be thinking about potential properties around the city that might work for higher density. To meet the Met Council's density requirements,development would need to include 6-15 units per acre. The goal is to identify some sites for higher development to submit to the Met Council. • This year's housing performance score is 30 to 32. Last year's was 39 and has ranged from 7 or 8 to the mid-30's. The score is based on a variety of factors. • December 10 is the deadline for the 6 month review period of the Comp Plan update. Sometime in next month or two, Met Council will expect a meeting to discuss Orono's progress. Orono has some properties with potential subdivisions that will be subject to density calculations. Grittman will proceed with an analysis of properties available to do high density/affordable housing. Met Council approval of the Comp Plan Update could hold up further development. � The expectation is that by March 2010 the Comp Plan Update will be ready to submit to the Met Council. Page 2 of 3 . . �.�. � Orono City Council Committee of the Whole November 24,2009,6:15 p.m. Orono City Council Chambers • A public hearing will be scheduled when the Plan is ready for formal submittal to Met Council, probably in February. 6. Comments Regarding Information Updates • The Planning Commission applicant, Linda Feuss,should be included with Planning Commission communications. Her formal appointment will be made at the next Council meeting. 7. Miscellaneous • Cleaning up after dogs. o Mayor White received a letter from a local Brownie Troop with a request to put up signs with bag dispensers and trash cans to assist people with cleaning up after their dogs on the Luce Line trail. o At a recent work session it was also discussed to try some type of dispenser along the Willow Drive trail. The Public Works Department is recommending against trash cans because of the potential for mis-use of the cans. o Council directed staff to install some type of bag dispenser/trash can/dog dump within the trail system in the Willow View neighborhood on a trial basis. o Mayor White will respond to the letter from the Brownies. o An example of a nice dispenser is in Spring Park behind the Mist project. • Gaffron and Farniok are meeting with Boe Carlson and Jim Brimeyer on Wednesday at 10:30 am to discuss Dakota Rail trail parking. Page 3 of 3