HomeMy WebLinkAbout04-11-2006 Council Work Session Packet Council Work Session
6:00 p.m., Tuesday, April 11, 2006
Orono City Council Chambers
AGENDA
1. Report by County Assessor in Preparation for Board of Review Hearing
2. Dakota Rail Easement far Driveway to Serve Crystal Bay Road Properties
3. New Radio Read System for Water Meter Reading
4. Joint Utility Agreement with Long Lake
5. Mapping of Road Corridor for Frontage Road to Serve Industrial Properties South of
Highway 12 and East of Old Crystal Bay Road
6. Other
TO: Mayor Peterson and Council Members
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FROM: Ron Moorse, City Administrator �'
./
DATE: April 5, 2006 �`
SUBJECT: New Radio Read Water Meter System
Approximately two years ago,the City purchased a radio-read system for water meter
reading from Badger as part of initiating the ability to remotely read water meters.
This included software, a remote water meter reader, and an initial supply of water
meters equipped with radio-read heads. The system that was purchased was selected
to be compatible with the City of Wayzata, which was the first City adjacent to
Orono to move toward a radio-read system. To date,the City has installed about 200
of the radio-read water meters.
Recently,as part of working with the Orono Schools regarding the upgrading of their
water meters, we used a consultant who has worked with the Neptune radio read
system that has more capabilities and has a substantially more powerful hand-held
reader than our current system. The reader is powerful enough to provide readings
from a greater distance,i.e.from a pick-up on the street rather than walking up to the
house. The system also can provide more information that can be used to diagnose
water usage problems.
Based on the information from the consultant, and additional information obtained
from the system vendor,we have determined that,because we are early in the process
of the change-over to the radio-read water meters, the benefits of the new system
merit changing to the new system. This involves purchasing the new hand-held
meter reader and related software, and purchasing a supply of water meters with the
new heads. The cost of purchasing a new hand-held meter, new software, and
training is $8,937.50. The new water meters cost $187.50 per meter. This is very
similar to the cost of the Badger radio-read meters.
The City currently has an inventory of 150 Badger radio-read water meters that were
planned for installation in the neighborhood south of County Road 15 and West of
County Road 19. These meters will be returned to Badger,and we will replace them
with Neptune meters.
The existing installed Badger radio-read meters can be retrofitted with Neptune heads
at a cost of$90.00 each. The Badger meters will be retrofitted over time,as we have
an opportunity to get into the homes.
TO: Mayor Peterson and Council Members
FROM: Ron Moorse, City Administrator /�
DATE: April 6, 2006
SUBJECT: Joint Sewer Agreement with Long Lake
Orono has a number of neighborhoods that have city sewer service that connect to the
Long Lake sewer system in order to get to the Long Lake MCES lift station located at the
intersection of Orono Orchard Road and Orono Oaks Drive. Most of these are small
neighborhoods with less than ten connections. In addition, as part of the sewer work
related to the Highway 12 project, the sewer flow from the North Long Lake
neighborhood in Orono was rerouted through the Long Lake system so that Orono could
eliminate a lift station at Brown Road and Highway 12. This brought the total number of
properties using the Long Lake sewer system to about 200.
The original agreements with Long Lake regarding the small neighborhood connections
included a sewer connection fee equal to the Long Lake sewer connection fee, and no
operating fee (i.e. no quarterly sewer fee) payable to Long Lake. The flow from these
sewer interconnections is not metered, but the estimated sewer flows are credited to Long
Lake, and the per unit MCES sewage treatment charges are then billed to Orono by the
MCES.
With the addition of the North Long Lake neighborhood sewer flows to the Long Lake
system, Orono and Long Lake staff have been reviewing the existing sewer agreements,
and discussing options for sharing the costs of the maintenance of the jointly used Long
Lake sewer lines, and lift stations where applicable.
Long Lake has proposed that, rather than calculating the volume of sewer flows from
Orono to Long Lake, so that Orono pays the correct amount to the Met Council
Environmental Services for sewage treatment, Long Lake would pay the treatment costs
for all of the flows, and would charge Orono the same sewer charge Long Lake charges to
its own residents--$67.00 per unit per quarter.
Currently, Orono has a broad range of arrangements with the Cities that have shared
sewer flows. For sewer flows from Orono to Wayzata from the Chevy Chase
neighborhood, Orono pays the Metro sewage treatment costs, but no quarterly costs to
Wayzata. For flows from Orono to Wayzata from the Old Long Lake Road area, Orono
does not pay the Metro costs, but pays a quarterly fee to Wayzata of$88.00 per unit per
quarter.
For sewer flows into Long Lake, Orono pays the metro treatment costs, but does not pay
any quarterly fees.
Orono does not currently charge any operating costs to Medina for the sewer flows from
Medina Morningside.
Because the Long Lake sewer fee is significantly lower than the Orono sewer fee, it is
possible to pay the full Long Lake sewer fee, while still having a portion of the Orono fee
available for Orono sewer costs. The remaining questions are whether the remaining
portion of the Orono fee is sufficient to cover the share of Orono's overall sewer costs
related to the properties connected to Long Lake, and whether this revenue split is a
reasonable solution.
Orono's quarterly sewer fee is $96. This fee is higher than the average fees charged by
other cities, due mainly to the operation and maintenance costs for 45 sewer lift
stations. The MCES charges are about 35% of the sewer system operating cost, or $35 per
quarter, which leaves $61 per quarter for system operation and maintenance.
Long Lake's sewer fee is proposed to be about $67 per quarter which covers the MCES
treatment charges in addition to the Long Lake system operation and maintenance costs.
After factoring out the $35 per quarter MCES charges from both Orono's $96 sewer fee,
and Long Lake's $67 fee, the revenue that would be available to cover Orono's sewer
maintenance costs would be reduced by $29 per property per quarter, or a total of$23,200
per year based on the 200 units connected to the Long Lake system. This is about 4% of
the annual budget for the operation and maintenance of the Orono sewer system. The 200
units are about 10% of the total sewer units in Orono.
Although the Long Lake fees would reduce Orono's revenues, the amount of the fee is
within the range of reasonableness.
TO: Mayor Peterson and Council Members
FROM: Ron Moorse, City Administrator ��
DATE: April 5, 2006
SUBJECT: Driveway Easement in Dakota Rail Corridor for Crystal Bay Road Properties
Several properties on Crystal Bay Road use a driveway that is in the Dakota Rail
Corridor right-of-way for access. Although this driveway has been used for many
years, the properties do not have a legal right to use it. As the Hennepin County
Regional Railroad Authority (HCRRA) now owns the Dakota Rail Corridor, they
have jurisdiction over the driveway. The HCRRA has agreed to provide an easement
to the City that enables the driveway to continue to be used. The cost of the easement
is $84,879.81.
The cost of the easement is to be allocated to the benefiting properties. There are a
number of issues related to this cost allocation. These include whether the costs
should be allocated on a per-unit basis or a linear foot basis,whether a portion of the
cost should be allocated to the City,whether all parcels that abut the driveway benefit
from the driveway, and whether the cost should be assessed to the properties over a
number of years. It is important for the council to discuss these issues prior to
meeting with the affected property owners.
There are seven properties along the driveway. The width of the properties along the
driveway varies, with one property being a double lot. If the easement cost was
allocated on a per-unit basis, each property would pay $12,125. If the cost was
allocated by linear foot, the cost per property would vary widely, due to the large
differences in the width of the lots adjacent to the driveway. The City has generally
allocated the cost of sewer projects on a per-unit basis rather than on a linear foot
basis, so that properties pay the same amount, regardless of how wide the lots are.
Some of the early projects were assessed partly on a per-unit basis and partly on a
linear foot basis.
The City has a water line that runs parallel to the driveway, on the north edge of the
driveway. The driveway is the only means of accessing the water line to perform
maintenance and repair activities. This raises the question of whether the City should
pay a portion of the easement cost. If the driveway was privately owned,and the City
needed an easement for access to the water line, the City would compensate the
property owner for an easement.
On one of the properties, the house is located closer to Crystal Bay Road, has its
access from Crystal Bay Road, and does not use the driveway for access. If the
owner of this property was to object to an assessment for the easement, it may be
difficult to show that the driveway easement would provide a substantial benefit to
this property.
An option to consider is to allocate the costs on a per-unit basis,and treat the City as
one unit. Then,the total cost would be divided by one additional unit.This addresses
the concern about the City's responsibility,and because it reduces the cost per unit,it
is a good compromise between the per-unit allocation and the per-linear-foot
allocation.
It is recommended that the cost to the benefiting properties be assessed over a 15 year
period at an interest rate of 6.25%.
A copy of the easement is attached. The easement is not a perpetual easement. The
easement language enables the HCRRA to terminate the easement at the time the
land is needed for the purposes of the HCRRA. Because the purpose of the HCRRA
is rail transportation, the easement could be terminated if the land is needed for a
light rail line. The probability of the land being needed in the foreseeable future for
light rail is very low for two reasons. First, light rail is many years away from this
portion of the metro area. Second,the land in Minnetonka Beach that is directly east
of the land in the easement is owned by Minnetonka Beach and used as a public
street. This land will not be available to the HCRRA for a light rail line. So a light
rail line would not be able to be located in the driveway area. However, the area
could be used for a use that supports the light rail line.
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Agreement No. 73-37379
ALLEY EASEMENT AGREEMENT
THIS EASEMENT AGREEMENT made on this day of ,
20 , by and between the Hennepin County Regional Railroad Authority (HCRRA), a political
subdivision and local government unit, under the laws of the State of Minnesota (hereinafter
referred to as "GRANTOR"), and the City of Orono, a municipal corporation under the laws of
the State of Minnesota, (hereinafter referred to as "GRANTEE").
WITNESSETH:
WHEREAS, GRANTOR is the owner of certain right of way (by fee, easement, license,
joint use agreement, governmental grant or other interest) located in the County of Hennepin,
State of Minnesota, commonly referred to as the Dakota Rail Corridor (hereinafter referred to as
"Corridor"), formerly owned by the Burlington Northern Railroad Company and Dakota Rail, Inc.;
WHEREAS, GRANTOR acquired the Corridor for transportation purposes, including
without limitation, rail, bus, bicycle and foot travel, for the location of communication facilities,
including fiber optics lines, and for other future transportation uses;
WHEREAS, GRANTEE maintains that certain public roadway, generally known as Crystal
Bay Road located in the City of Orono. Crystal Bay Road connects to that certain public
roadway in the City of the Village of Minnetonka Beach generally known as Northview Road.
Both public roadways are located in the vicinity of the Corridor.
WHEREAS, Seven (7) single family residences are located in the City of Orono facing
Crystal Bay Road to the north and the Corridor to the south on those certain parcels of land
legally described in Exhibit A (hereinafter referred to as "Alley Access Parcels"). Traffic from
the south {ot lines of the Alley Access Parcels currently access Northview Road by encroaching
upon a portion of GRANTOR's Corridor that runs upon and is parallel to the Corridor.
WHEREAS, GRANTEE has requested and GRANTOR has agreed to grant to GRANTEE a
nonexclusive public alley easement over that portion of the Corridor legally described on
"Exhibit B" (hereinafter referred to as the "Easement Area") for ingress and egress from
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Northview Road to the Alley Access Parcels for such time that such access is consistent with
GRANTOR's current and future intended use of the Corridor;
WHEREAS GRANTEE wishes to make certain guarantees to GRANTOR in exchange for
the grant of easement.
NOW THEREFORE, GRANTOR and GRANTEE agree to the following:
1 . GRANTOR, in consideration of the sum of Eighty Four Thousand Eight Hundred
Seventy Nine and 81/100 Dollars (584,879.81), the "Cost" of this easement, and other good
and valuable consideration to GRANTOR from GRANTEE, receipt of which is acknowledged,
grants unto GRANTEE, a nonexclusive easement for a public alley (hereinafter referred to as
"Alley") over that portion of the Corridor legally described on "Exhibit B" (hereinafter referred to
as the "Easement Area") and depicted on "Exhibit C" for ingress and egress from the south lot
lines of the Alley Access Parcels to Northview Road for such time that such access is
consistent with GRANTOR's current and future intended use of the Corridor as determined by
GRANTOR in its sole discretion. Included in this grant of easement is the right to construct,
maintain and sign the Alley, in such manner that does not conflict with GRANTOR's use of the
Corridor as solely determined by GRANTOR, and as limited by the terms of this easement
agreement.
2. Said easement shall be limited solely to providing public access for up to seven (7?
noncommercial seasonal recreational or homestead single family residences, located on the Alley
Access Parcels as those parcels are currently configured. The easement shall expire
automatically if use of the Alley Access Parcels changes. The Alley shall have a passage way
of not wider than twenty-five (25) feet and shall be located fully within the Easement Area.
Upon expiration or other termination of this easement, GRANTEE shall deliver to GRANTOR a
release of easement suitable for recordation.
3. This easement is granted with the understanding that plans for the segment of the
Corridor affected by this arant of easement are only preliminary. GRANTOR reserves the right
without further consideration, at GRANTEE's sole expense, upon two hundred seventy (270)
days written notice from GRANTOR to GRANTEE, to terminate the easement and require
removal of any Alley improvements or to require relocation or modification of the Alley, if
GRANTOR determines that doing so is necessary for implementation of alternate uses on the
Corridor. Such uses shall include, without limitation, operations, changed operations or planned
operations of any current or future transportation system for rail, bicycle or foot travel or any
other public use; and shall include, without limitation, renewal, replacement, repair, alteration or
construction of tracks, bridges, culverts, thruway facilities, structures, properties, facilities and
appurtenances. In the event GRANTEE fails to so relocate, alter, change, or remove the Alley
within two hundred seventy (270) days after notice, GRANTOR may remove, alter or relocate
such Alley at GRANTEE's expense, or terminate the easement.
In the event that GRANTOR, at GRANTOR's initiative other than as a consequence of
GRANTEE default, causes the termination of this easement at any time within Ten (10) years of the
commencement date of this easement, GRANTOR shall reimburse GRANTEE for the Cost of this
easement as follows: GRANTOR shall pay to GRANTEE the Cost of this easement less ten per cent
(10%) per year, or partial year, that has passed since the commencement date of this easement.lf
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GRANTOR requires that the Alley, or portion of Alley, be changed, altered, or removed for any
reason, GRANTEE shall deliver to GRANTOR a release of the easement, or a release of a portion
of the easement as applicable, suitable for recordation.
GRANTEE acknowledges and agrees that no further processes or vacation proceedings
are or will be, necessary to put into effect termination of this easement, and if any is required,
GRANTEE hereby unconditionally consents to said vacation or termination as a part of the
consideration for the granting of this easement. The granting of this easement shall not be
deemed a dedication by statute or common law, nor shall continued use and maintenance of the
Easement Area create a roadway accruing to the public or any individual in the meaning of
Minn. Stat. Sec. 160.05, subd. 2.
GRANTEE, and not GRANTOR, shall be responsible for all maintenance (including without
limitation, trash and snow removal, weed control and removal of diseased, dead or hazardous
trees), all permitted improvements, special assessments and all costs related thereto, and all
other costs related in any other manner to use of the Easement Area or any required relocation
of the Alley or termination of the easement.
GRANTEE, and not GRANTOR, shall be responsible for the payment, if any, of relocation
benefits or costs or just compensation due to third parties resulting from termination of the
easement rights granted by this agreement. Notwithstanding the foregoing, this easement
agreement is not intended to create rights in third party beneficiaries other than that to the
general public for use of the Easement Area as a public alley until such date this easement
agreement is terminated by GRANTOR.
4. GRANTEE and its contractors shall not unreasonably interfere with use of the Corridor
for transportation or other public purposes except with consent of GRANTOR which consent
shall not be unreasonably withheld. GRANTEE'S use of the Easement Area is subservient to all
federal laws and rec�ulations governing rail operations on the Corridor.
5. Prior to construction of any modification or relocation of the Alley, GRANTEE shall
submit its plans to GRANTOR for review and comment. GRANTOR reserves the right to reject
any plans for construction proposed by GRANTEE on the grounds, in GRANTOR's sole
discretion, that said plans are inappropriate or incompatible with its present or future use of the
Corridor. No work shall be done or obstruction placed over any track or pathway on the
Corridor unless GRANTEE has arranged to furnish, at GRANTEE's or its contractors' expense,
such flagging as GRANTOR deems necessary for protection of railroad or other transportation
operations on the Corridor. Such flagging shall not relieve GRANTEE or its contractors from any
liability.
6. The rights granted herein shall be effective upon full execution of this Agreement
subject to the rights of those certain parties identified in section 14.
7. GRANTEE agrees to indemnify, defend and hold GRANTOR and its officers, directors
and employees harmless from and against all liability, loss, cost, damage or expense of every
nature including, without limitation, attorneys' fees, whether or not suit be brought, resulting
from injury to or death of persons or loss or destruction to property which arises out of or in any
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way is connected with or incident to the exercise of GRANTEE'S rights on, over, and across the
Easement Area. Notwithstanding the foregoing, this provision is not intended to waive
GRANTOR's or GRANTEE's statutory and common-law rights to limitations and defense on
liability.
8. GRANTEE hereby covenants and warrants that it shall not use, employ, deposit,
store, dispose of, place or otherwise release on the Easement Area, in connection with the
exercise of its rights under this Easement, any hazardous substance, hazardous waste or
pollutant or contaminant as such terms are defined under any federal, state or local statute,
ordinance, rule, code or regulation, nor shall it create or permit any condition on the Easement
Area that could present a threat to human health or to the environment. GRANTEE agrees to
indemnify defend and hold GRANTOR and its successors and assigns harmless against any and
all liability, loss, cost, damage or expense resulting from or due to the release of or threatened
release of hazardous substances, hazardous wastes or any pollutants or contaminants or any
other environmentally regulated materials, including petroleum products and the various
constituents thereof, which were, or are claimed or alleged to have been used, employed,
deposited, stored, disposed of, placed or otherwise released on or from the Easement Area by
GRANTEE, its employees, agents, contractors or representatives. Notwithstanding the
foregoing, this provision is not intended to waive GRANTOR's or GRANTEE's statutory and
common-law rights to limitations and defense on liability.
9. GRANTOR reserves the right to use and occupy the Easement Area and shall have the
right to agree to other occupations of the Easement Area by one or more persons or firms,
provided, however, such uses shall not unreasonably interfere with the easement rights granted
hereunder.
10. GRANTEE, and not GRANTOR, is responsible at its sole cost for the design,
construction and maintenance of the Alley, including the installation and maintenance of
advance warning signs and pavement markings in accordance with the Minnesota Manual on
Uniform Traffic Control Devices (MMUTCD) as may be needed at present or in the future due to
GRANTOR's adjacent use of the Corridor.
1 1 . This grant of easement is conditioned upon the premise that use of the Alley and
exercise of the rights granted under this.- Agreement shall not adversely affect future
transportation uses and other use of the Corridor for transportation purposes including without
limitation, rail, bus, bicycle and foot travel, for the location of communication facilities, including
fiber optics and for other future transportation uses or other future public uses.
12. The rights herein granted are subject to existing rights of way, whether or not of
record, for highway, roads, railroads, pipelines, canals, laterals, ditches and fiber optic, electrical
or other transmission lines, and should it, at any time, become necessary because of
GRANTEE`s use of the Easement Area to relocate any of said facilities by reason of GRANTEE'S
exercise of the rights granted herein, GRANTEE, and not GRANTOR, shall bear and pay the cost
of so doing.
GRANTEE also accepts said Easement Area subject to any want or failure at any time of
GRANTOR's title to said Easement Area or any part thereof and GRANTEE shall assume any
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damages sustained by GRANTEE in connection therewith. GRANTEE also accepts such
Easement Area subject to rights of any party, including GRANTOR, in and to any roadways,
easements, leases and permits, whether granted, at GRANTOR's sole discretion, either prior to
or after the date of this Easement Agreement except that any subsequent grant shall not
unreasonably interfere with GRANTEE'S use of the Easement Area.
GRANTEE agrees to provide to GRANTOR or other tenants of GRANTOR access over
across, and through the Easement Area should such access be deemed necessary by
GRANTOR. GRANTEE accepts said Easement Area subject to the right of GRANTOR, its
employees, agents, permittees, lessees, and contractors when reasonably necessary to walk
upon said Easement Area to repair adjacent property and the right of GRANTOR, its employees,
agents, permittees, lessees, and contractors to temporarily place equipment upon the property
when reasonably necessary for the purpose of maintaining, repairing, inspecting or constructing
upon GRANTOR's property.
13. It is mutually understood and agreed that this instrument covers all the agreements
and stipulations between the parties and that no representation or statements, verbal or written,
have been made modifying, adding to or changing the terms hereof.
14. The terms of this agreement are subject to the rights of the State of Minnesota
contained in Agreement between Hennepin, Carver and McLeod County Regional Railroad
Authorities and the State of Minnesota dated December 23, 2002 (MnDot Agreement No.
84001 , HCRRA No. A06072) and Mortgage of Hennepin County Regional Railroad Authority to
the State of Minnesota (HCRRA No. A06062) dated November 14, 2002.
15. This easement agreement and the rights and obligations of GRANTEE contained
herein shall not be assigned to or assumed by others without the express written consent of
GRANTOR.
This instrument is exempt from the Minnesota Deed Tax.
THIS PORTION OF THE PAGE INTENTIONALLY LEFT BLANK
. . .r . .
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IN WITNESS WHEREOF, the undersigned has caused this instrument to be duly
executed as of the day of , 20
HENNEPIN COUNTY REGIONAL
RAILROAD AUTHORITY
Reviewed By:
By:
Assistant County Attorney Chair, Board of Commissioners
And:
Deputy/Executive Director
Attest:
Deputy/Clerk of HCRRA Board
CITY OF ORONO
By:
Its: Mayor
By:
its:
Reviewed By:
By:
City Attorney Its:
City organized under:
Plan A Plan B Charter
This Instrument was drafted by:
Hennepin County Regional Railroad Authority
417 North 5th St., Suite 320
Minneapolis, MN 55401-1362
6
STATE OF MINNESOTA )
) ss
COUNTY OF HENNEPIN )
The foregoing was acknowledged before me this day of , 200_,
by , Chair, Board of Commissioners, Hennepin County Regional
Railroad Authority, a political subdivision and local government unit under the laws of the
State of Minnesota, on behalf of the Authority.
Notary Public
STATE OF MINNESOTA )
) ss
COUNTY OF HENNEPIN )
The foregoing was acknowledged before me this day of , 200_,
by , Deputy / Executor, Hennepin County Regional Railroad
Authority, a political subdivision and local government unit under the laws of the State of
Minnesota, on behalf of the Authority.
Notary Public
STATE OF MINNESOTA )
) ss
COUNTY OF HENNEPIN )
The foregoing was acknowledged before me this day of 200_,
by and , the Mayor, and City
Administrator, of the City of Orono, a Minnesota municipal corporation, on behalf of said
munieipal corporation.
Notary Public
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MEMORANDUM
To: Mayor& Council
From: Mike Gaffron, Planning Director '
Date: Apri17, 2006
Subject: Official Mapping of Industrial District Service Road Corridor
As a result of discussions about an Industrial District service road with representatives of
the Ryan Companies and with Peter Johnson representing Morrie's, it appears that both
entities are on board with a public service road location that would serve their respective
properties.
City Attorney Matt Brokl has suggested that the City take steps to adopt an"Official
Map" of the road, which would establish a definite corridor location and provide the
current property owners as well as potential purchasers/developers with a firm
expectation of the City's intent.
The steps in such a mapping process include:
1) Get cost estimate for survey work.
2) Notify all property owners of costs to do the mapping process.
3) Staff/Council/ stakeholder meeting to discuss process, locations, costs
4) City surveys the proposed corridor and generates a map.
5) Property owners notified, hold a public hearing, accept comments.
6) Council adopts Official Map by ordinance.
Ryan Companies has requested that the City proceed with the mapping process. We are
requesting that Council authorize staff to obtain quotes for the survey costs for this
process.