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HomeMy WebLinkAboutResolution 7594 Establish Stubbs Bay Lake Improvement DistrictRESOLUTION OF THE CITY COUNCIL A RESOLUTION APPROVING THE ESTABLISHMENT OF THE STUBBS BAY LAKE IMPROVETVIENT DISTRICT WHEREAS, the Orono City Council may agree the establishment of a lake improvement district under Minnesota statute section 103B.515; and WHEREAS, the Orono City Council must adopt a resolution to establish a lake improvement district; and WHEREAS, the resolution must: (1) Specify the boundaries of the district, which shall be encouraged to be as consistent as practical with natural hydrologic boundaries; (2) Prescribe the water and related land resource management programs to be undertaken in the district; (3) State how the programs will be financed; (4) Designate the agency that will be responsible for supervising the programs; and (5) Specify the number, qualifications, terms of office, and method of election, removal, and filling of vacancies of the Board of Directors, including a method for property owners not present at the annual meeting to participate in the election of the district board. NOW, THEREFORE, BE IT RESOLVED that city council of Orono, Minnesota hereby intends to establish a Stubbs Bay Lake Improvement District (SBLID) and that: (1) The boundaries of the SBLID shall be as shown on the Exhibit C map (attached). This boundary is consistent with the natural hydrologic boundaries of the bay and includes all properties that have lake rights to Stubbs Bay, Lake Minnetonka. (21 The water and related land resource management programs to be undertaken in the SBLID to include prevention and management of aquatic invasive species and surface water protection per the Proposal, (attached) which outlines the water and related land resource management program to be undertaken. (3) The prevention and management program will be financed by a levy on the property owners in the district plus grants and gifts. The actual levy and its distribution will be approved by the Stubbs Bay Lake Improvement District Board of Directors at their annual meeting which will be in July or August of each year and all property owners will be notified of the meeting. The estimated cost to treat Stubbs Bay is estimated to be $20,000 to $30 000 per year plus lake monitoring, administrative costs and spot treatments in any non -treatment years. Exhibit B (attached) shows the proposed budget for the SBLID for 2026. (4) The City of Orono shall oversee the operation of the SBLID. RESOLUTION OF THE CITY COUNCIL (5) The Board of Directors of the Stubbs Bay Lake Improvement District shall consist of 5 members serving 2-year terms except for the initial s members which shall include 3 ith 2-year terms. The initial members shall members for 3-year terms and 2 members w be appointed by the City Council with subsequent members elected at the annual meeting of the SBLID. The initial and all subsequent Board of Directors must include persons owning property within the district, and a majority of the directors must be residents of the district. All Stubbs Bay affected property owners at the annual meeting shall be allowed to vote. Property owners who cannot attend may submit their vote by mail which must be received by the City of Orono before the start of the Annual Meeting. Vacancies on the Board of Directors shall be filled by a vote of the remaining Board members. NOW THEREFORE, BE IT FURTHER RESOLVED by the City Council of the City A Orono that the Mayor is authorized to send a copy of this resolution to the Department of Natural Resources Commissioner, the Minnehaha Creek Watershed District Board of Managers, the Lake Minnetonka Conservation District Board, the Secretary of State, and the Minnesota Pollution Control Agency. NOW THEREFORE, BE IT FURTHER RESOLVED by the City Council of the City of Orono that this resolution shall be effective 30 days after it is published in the official newspaper of the City of Orono. Adopted by the City Council of Orono, Minnesota at a regular meeting held on June 9, 2025. ATTEST: Christine Lusian, Ci erk CITY OF ORONO Bob Tunheim, Mayor Stubbs Bay Lake Improvement District Proposal The following information has been submitted to the Minnesota Department of Natural Resources (DNR) on April 28, 2025, for their consideration as the citizens of the Stubbs Bay Lake Improvement District, with the cooperation of the City of Orono, to move forward to establish the proposed Stubbs Bay Lake Improvement District (SBLID) in accordance with Minnesota Rules 6115.0970. -A written statement of lake problems and objectives: Eurasian watermilfoil (EWM) and curlyleaf pondweed (CLP), both, non-native, invasive plants, have been problematic in Stubbs Bay for several decades. These two plants can reduce the diversity and abundance of native plants and therefore diminish the health of the bay. As well, these plants interfere with boating, swimming, recreation, and enjoyment in the bay. CLP can also adversely affect water quality. Other invasive species, e.g. flowering rush and starry stonewort, are found in nearby waterbodies and pose a risk of being introduced into Stubbs Bay. It is the intent of the SBLID to treat any invasive plant or animal that adversely effects the recreation, water quality, and ecological health of Stubbs Bay. Stubbs Bay residents, in coordination with the Lake Minnetonka Association (LMA), PLM Lake Management, and the Minnesota Department of Natural Resources (DNR) have developed a Lake Vegetation Management Plan (LVMP) (Exhibit A). In 2024, about 15-percent of the littoral area in Stubbs Bay was treated to control of Eurasian watermilfoil/curlyleaf pondweed. In 2025, the Stubbs Bay LVMP was approved and allow for the springtime treatment for CLP and a whole bay treatment for CLP/EWM to be done a fall 2025/spring 2026. Bay-wide treatments have proven to be effective in controlling Eurasian watermilfoil and curlyleaf pondweed in nearby bays and have plant surveys that show the diversity and abundance of native plants have improved in these bays without compromising water quality or aquatic life. The SBLID will design its LID to be consistent with the Carman Bay and St. Albans Bay LIDs. The Stubbs Bay treatments will build off the foundation established by the Lake Minnetonka Milfoil Project which was conceived in 2006 and refined over almost two decades of successful treatments on bays in Lake Minnetonka. The Lake Minnetonka Milfoil Project was done in a partnership with the US Army Corps of Engineers and the DNR to assess new technologies and approaches for large-scale selective herbicide treatments to control and combat EWM. The majority of the costs for the Stubbs Bay treatments have been and continue to be voluntarily borne by the bay residents. In 2024, Stubbs Bay received an invasive species management grant from the LMCD. A Lake Improvement District (LID) has been proposed to more equitably, efficiently and reliably fund and administer this program. Other aquatic invasive species (AIS), those now in the bay as well as those which may be introduced in the future, pose threats to the bays health and recreation and are therefore a concern. Zebra mussels are found in the bay and while research to control them shows promise, there are no known controls available yet. Once a proven treatment for zebra mussels is identified, the LID will consider programs to control zebra mussels. If other invasive plants, animals, or pathogens are found in Stubbs Bay, the SBLID will determine the best course of action to address them on a case-by-case basis. After EWM and CLP are under control, the LID will consider programs and collaborations that further improve water quality. The Minnehaha Creek Watershed District classifies Stubbs Bay water quality as poor. The bay is impaired for excess nutrients due to phosphorus loading. This impairment results in nuisance algae blooms that limit the recreational use of this water body. Figure 1. Stubbs Bay Water Quality (MCWD) External phosphorous loading into Stubbs Bay has been reduced by protection of upland wetlands, storm water management regulations, conversion of land in the Stubbs Bay watershed from agricultural to residential and by projects done by the City of Orono and the Minnehaha Creek Watershed District in the early 2000s. While more phosphorous loading models may be needed, it is believed the primary reason for the high phosphorous levels in the bay is internal loading. The SBLID will consider the development of water quality studies/plans or the implementation of water quality improvement projects (e.g. phosphorous sequestration) as part of a comprehensive approach to bay management. Such projects would likely require grant funding and/or a financial partnership with a governmental organization such as the MCWD or the LMCD. In accordance with Minnesota statutes, section 103B.571, for all projects proposed by the SBLID with a cost in excess of $5,000; a published notice and written notice shall be mailed at least ten days in advance to SBLID property owners and required local and state entities. Problems: 1.Eurasian watermilfoil, curlyleaf pondweed, and other AIS diminish the health of and interfere with recreation in Stubbs Bay. 2.Other AIS, including flowering rush, starry stonewort, and spiny water flea, may become established in Stubbs Bay are likely to have adverse impacts to the health and enjoyment of the bay. 3.Water quality in the Stubbs Bay is impaired for excess nutrients due to phosphorus loading. This impairment results in nuisance algae bloom s that impact the ecological health and limit the recreational use of this water body. Objectives: 1.Eurasian watermilfoil, curlyleaf pondweed, and flowering rush will be controlled as specified in the proposed LVMP. 2.Native plants and water quality will be maintained or improved as specified in the proposed LVMP. 3.Monitor and assess impacts of additional AIS and consider feasible controls when needed and appropriate. 4.Water quality improvements will be considered as part of a comprehensive approach to bay management. Such undertakings may require grant funding or financial support or a partnership with organizations such as the Minnehaha Creek Watershed District or the LMCD. -The proposed type or types of water and land related resource management projects to be undertaken by the proposed district. This shall include a detailed statement of intended studies, management programs, remedial actions and construction projects. The initial and primary management project of the LID will be to continue the Eurasian watermilfoil and curlyleaf pondweed control programs under a LVMP, including the required treatments, monitoring, and assessments. The LID will cooperate with the LMA on efforts to monitor for starry stonewort and will consider programs and/or collaborations with local or state agencies to control other AIS based on viability of success and need in Stubbs Bay. There are no land-management projects are planned. Once EWM and CLP is under control, the SBLID will consider treatments to improve the clarity of Stubbs Bay. While internal loading is believed to be the primary source of phosphorous in the lake, additional studies may be needed to better quality the amount of external vs. internal loading. Most likely, water quality studies and programs would require grant funds and/or technical and financial participation from other sources. Details provided in Exhibit A. -A statement of the means by which the programs will be financed: See Exhibit B. SBLID sample budget and estimated assessment Homeowners with deeded or direct access to Stubbs Bay will be assessed and amount set annually by the Board of Directors. -A map showing the boundaries of the proposed LID: See Exhibit C. .Stubbs Bay Lake Improvement District Map. The boundaries of the LID are intended to include all properties with direct and deeded access to the bay. As information becomes available, the SBLID map will be updated to include up-to-date information on properties with direct or deeded access to the bay, including: land transfers, lot splits or combustions, new or updated deeded easements, missed parcels, etc. -The number of directors proposed for the district. Five (5). See Exhibit D for candidates who are interested in being involved in managing the LID. -Timeline A timeline to meet city obligations for establishment of the Stubbs Bay LID is included as Exhibit E. This timeline will allow the LID to meet assessment deadlines needed to fund 2026 LID activities. - Any information indicating the degree of local interest and commitment to future management: Over the past several months, the Stubbs Bay LID organizers have campaigned to educate and garner support from property owners on the Bay regarding the proposed LID. Education efforts include notifying all of the residents in the proposed LID via mail and by e-mail (for those willing to share their e-mail addresses). A web site has been established (www.stubbsbay.org) and a Stubbs Bay public information meeting was held on April 14, 2025 before the Orono City Council. Several follow up e-mails have been sent and many one-on-one conversations held. The organizers have also met and communicated with city staff on the process and deadlines needed to establish a LID. Homeowners on Stubbs Bay have already made a sizeable investment to control EWM and CLP in the bay. Over $30,000 has been raised through voluntary contributions for a bay wide treatment in 2025. To protect this initial investment, Stubbs Bay LID organizers have explained to homeowners that additional spot treatments and monitoring will be needed and how a LID will provide an equitable and sustainable way to provide for on-going AIS control in Stubbs Bay. The Stubbs Bay Lake Vegetation Management Plan authorizes a 5-7-year variance from time of signing to perform herbicide treatments greater than 15% of the littoral area with herbicides to control EWM/HWM/CLP. - Stubbs Bay Lake Improvement District Petition: To date, almost 66% of the homeowners in the proposed LID have signed the petition for a Stubbs Bay LID. Over the next few months organizers will seek additional signatures. It is important to note, several properties on Stubbs Bay are owned by individuals whose properties are managed by LLCs, attorneys, or management companies that restrict the ability to connect with the property owner. See Exhibit F. - Copies of local ordinances that regulate the use of the lake or any public access: The Stubbs Bay LID will operate in compliance with all local ordinances (including those of the City of Orono, LMCD, and MCWD) that govern the use of Stubbs Bay and public accesses. Links to applicable local regulations are listed in Exhibit G, Local Ordinances. There are currently no local ordinances that would limit, control, or otherwise regulate any anticipated AIS or water quality improvement programs that may be undertaken by the Stubbs Bay LID. Should local ordinances or Stubbs Bay LID programs change, all the LID will seek all required authorizations and will operate in compliance with local and state requirements. All of the properties in the Stubbs Bay LID are located in part of the City of Orono zoned either LR-1A or LR-1B. The LR-1A one-family lakeshore residential district is intended to provide a district which will allow a combination of low-density residential development and limited agricultural activity. The LR-1B one-family lakeshore residential district is intended to provide a district which will allow a combination of medium-density residential developments and limited agricultural activity. All properties in LR-1A and 1B are subject to the City of Orono Code Title VI, Chapter 78, Zoning Regulations (which includes: Lakeshore Residential Districts, Floodplain Management, and Shoreland Management). The properties in the Stubbs Bay LID are also subject to City of Orono Code, Chapter 94, Waterways (which includes: docks, marinas, and related lake structures). -The identification of any lands and waters which may be adversely affected by the implementation of District purposes, and a preliminary assessment of these adverse effects: No adverse effects to lands and waters are anticipated. The identified problems and stated objectives in the LID proposal aim to control the adverse effects of AIS in Stubbs Bay. Treatments of Eurasian watermilfoil and curlyleaf pondweed are done with herbicides registered by the United States Environmental Protection Agency and Minnesota Department of Agriculture and have been permitted by the Minnesota Department of Natural Resources. The products and methods used have occurred within a strict regulatory milieu, which is designed to minimize likely adverse effects and unintended consequences. Therefore, rather than causing or increasing adverse effects, the proposed LID will more likely control and decrease adverse effects. Other bays on Lake Minnetonka with similar treatment program have seem long-term improvements in the diversity and density of native pant communities. Treatments will only be done by experienced professionals licensed by the Minnesota and certified with the MnDNR. Plant surveys will be conducted by independent aquatic plant specialists. While not prohibited in Minnesota, no product using glyphosates will be used. Should the LID employ other products or methods to control Eurasian watermilfoil and curlyleaf pondweed or other AIS, of for water quality improvements, it will occur with the same regulatory oversight. Therefore, adverse effects to land or water are not anticipated. As the LID considers or proposes modifying the current Eurasian watermilfoil and curlyleaf pondweed control program or any control programs for other AIS, detailed assessments of possible adverse effects to lands and waters will be provided as required or appropriate. -A statement outlining the adequacy and ownership of public accesses, including public lands and beaches: The City of Orono owns a lot off Bayside Road (CR 84 - see map) and rents out four boat slips to Orono residents. It also operates a municipal dock at the end of Stubbs Bay Road. There are also fire lanes owned by the City of Orono that may be used for public access located at the end of Eastlake Street and Westlake Street. However, the nature of the accesses would be limit them to walk on uses. Stubbs Bay is a popular destination for anglers, wake sport enthusiasts, and boaters from across the he entire metropolitan area. While boaters may come from any of the public accesses on the lake, they most likely come from the North Arm or Maxwell Bay locations. Figure 2, City property and docks located on Stubbs Bay -An estimate of the total equalized valuation of the property within the district: $196,895,500 (2025) -Any other information demonstrating accordance with the criteria and standards for establishment as laid out in 6115.0960 The regulation of activities on Lake Minnetonka below the OHW is controlled by the Lake Minnetonka Conservation District and the Minnehaha Creek Watershed District See Exhibit H, Letters of Support (more letters will be added as they arrive) Lake Minnetonka Association Letter of Support Lake Minnetonka Conservation District Letter of Support MCWD Letter of Support Carmans Bay LID Letter of Support North Arm Bay Letter of Support Exhibit A, Stubbs Bay Lake Vegetation Management plan Included as an attachment to this e-mail and below. file:///C:/Users/ric/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/ 9XP5FARM/Stubbs%20Bay_Minnetonka_%20LVMP%202025_FINAL.pdf Exhibit B, SBLID sample budget and estimated assessment. Proposed 2026 Stubbs Bay LID Budget Revenues 2026 Property Tax Resolution #XXXX 11,872 Grants/donations 0 Total Revenue 11,872 Expenditures Delineation Survey - Curlyleaf Pondweed 0 Delineation Survey - Eurasian Watermilfoil 0 Aquatic Plant Survey (Point Intercept Survey) (3,000) Treatment Whole Bay (2 bumps)* (10,000) st *1 treatment in late fall 2025 (paid in 2025 2 bumps in 2026 paid by LID) Lake Minnetonka Association Program support 0 Board and Annual Meeting space (50) District PO Box Rental (72) Administrative Expenses - (printing, postage, public notice ad) (250) Accounting Services 0 Insurance (900) Total Expenditures (14,272) Revenue Over / (Under) Expenditures (6,000) Estimate Cash Balance December 31, 2025 6,000 Cash Balance December 31, 2026 0 Exhibit C, Stubbs Bay Lake Improvement District Map* *TheboundariesSBLIDmapisintendedtoincludeallpropertieswithdirectanddeeded accesstothebay.Asinformationbecomesavailable,theSBLIDmapwillbeupdatedto includeup-to-dateinformationonpropertieswithdirectordeededaccesstothebay, including:landtransfers,lotsplitsorcombustions,neworupdateddeededeasements,missed parcels,etc. Exhibit D, Stubbs Bay LID Members Interested inan Appointment to the LID Board Proposed Board ofDirectors for SBLID Lee Harren Lee Harren leeharren@gmail.comleeharren@gmail.com 175175Bayside Bayside RdRd Karena Casey karenacasey@mchsi.com, Karena Casey karenacasey@mchsi.com, 255255Bayside Bayside RdRd Plus 3 from this list ofcandidates: Ray Bernal rybernal@frontier.com 3775Bayside Rd John Erickson johnrosserickson@aol.com, 865Partenwood Rd Asim Gul sasimgul@gmail.com, 855 Partenwood Lane Mark Johnson markjohnson_ms@msn.com, 555 Oxford Mark Johnson markjohnson_ms@msn.com, 555 Oxford RoadRoadBruce Lea brlea1@outlook.com, Bruce Lea brlea1@outlook.com, 740740 Tonkawa Tonkawa RdRd Jennifer Leikikh jleikikh@comcast.net, 495Oxford Rd Barb McCreight barti432@aol.com, 692 Tonkawa Rd Matthew Walter mwalter@hrii.com, 746Tonkawa Rd Bob Ryan bobryan@ryanautomall.com, 3625 Eileen Street Marcel Smits marcel_smits@me.com, 3345 Fox Street Ted Spooner Tspooner@aol.com, 700 Tonkawa Rd John Thiesse johnthiesse@gmail.com, 3855 Bayside Rd Brent Teele teele12@yahoo.com, 356 West Lake Steet Joe Joe Gilbertson, Gilbertson, 684 684 Tonkawa Tonkawa RdRd