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HomeMy WebLinkAbout08-13-2001 Council Minutes' ORONO CITY COUNCIL MEETING I? _ MONDAY, AUGUST 13, 2001 • ROLL The Council met on the above - mentioned date with the following members present: Mayor Barbara Peterson, Council Members Jim White, Jay Nygard, Richard Flint, and Bob Sansevere. Representing staff were City Administrator Ron Moorse, City Attorney Tom Barrett, Planning Director Michael Gaf &on, Zoning Administrator Paul Weinberger, City Engineer Tom Kellogg, and Recorder Alissa Winternheimer. Council Member Flint arrived at 7:00 p.m. Mayor Peterson called the meeting to order at 6:45 p.m. CONSENT AGENDA 1. Approve /Amend Items 6, 7, 8, 9, and 12 were added to the Consent Agenda. White moved, and Sansevere seconded, to approve the consent agenda as amended. Vote: Ayes 4, Nays 0. • PUBLIC HEARING 2. Use of Funds from the Community Investment Fund Mayor Peterson opened the Public Hearing at 6:47 p.m. Moorse stated that the City is contributing $680,000 toward the cost of replacing the Long Lake fire station. The Council had proposed funding the contribution through a loan from the Community Investment Fund, with the term of the loan at 10 years and the interest rate set at 5.5 %. Mayor Peterson opened the hearing to public comments. There were none. Mayor Peterson closed the public hearing at 6:50 p.m. Mayor Peterson asked if it was the normal procedure to charge 5.5% interest on an internal loan. Moorse stated the fund was currently making 5.5% interest, so the City decided it should charge itself that rate. White stated that if the full amount was not spent, any extra would be returned to the City. Sansevere asked if they should hold the vote until Flint arrived. ORONO CITY COUNCIL MEETING MONDAY, AUGUST 13, 2001 • Z Use of Funds from the Community Investment Fund — Continued Mayor Peterson moved, and Sansevere seconded, to table Item 2. Vote: Ayes 4, Nays 0. Item 2 is continued after Item 14. 3. Presentation of the.City's 2000 Comprehensive Annual Financial Report Ken Malloy, Auditor for the City, presented the 2000 Comprehensive Annual Financial Report. Tom Kuehn, City Finance Director, was present to help answer questions. Malloy stated that he had been an audit partner in the City's independent audit firm for the last 10 years. His job was to review the City's financial records and statements and give an opinion as to whether the financial statements were accurately stated. They also function as a watchdog for the state to make sure the City was in compliance with state statutes. The City's financial statements were accurate, with only a few findings. One finding concerned contracts. Previously a number of requirements had to be met for contracts over $25,000. The state recently changed that to over $50,000 for a city the size of Orono. The City had a contract they thought was in compliance, but was actually awarded before the new law went into effect. Malloy did write up the finding, but felt there would be no consequence. IS Another finding involved a broker the City dealt with, who did not return the broker certificate form to the City for filing. 0 Malloy indicated that the state will be taking over the General Education Levy portion of property taxes. They will pay that for the school, but will also cut aids to municipalities. The change is supposed to be neutral in terms of how it will affect the City. What the City loses in state aid should be generated by additional taxes and more local government aid. Property tax payers should receive the benefit. Malloy discussed how Orono City revenues compare to other cities. The General Operations levy generated a little less revenue than state wide averages through 1998, which means Orono needs to generate less per capita than other cities, or that Orono spends less, or that Orono finds other revenue sources. The tax rate is used as a benchmark to see how heavy a burden the city places on its residents. Orono's tax rate is 14.8, while other cities averaged 29.6 in 2000. The General Fund balance and cash balance dropped in 2000, but it was a planned drop for the purchase of land. The cash and fund balances were both at $1.7 million, which Malloy characterized as a good, healthy balance. The City has healthy water and sewer funds. Traditionally, Orono receives very little funding from the state, and all of it is in homestead credit. Other sources of revenue are taxes and charges for services that are specifically attributed to the person using the service. The municipal golf course provides a small source of revenue. The new 2 ORONO CITY COUNCIL MEETING MONDAY, AUGUST 13, 2001 3. Presentation of the City's 2000 Comprehensive Annual Financial Report— • Continued accounting standards require the reporting of gains and losses on investment earnings. The City will be required to make a change in the style of reporting in 2004 due to the G.A.S.B. Statement #34 report model: a more business -like format. Malloy stated that Orono keeps their records well and the City rated highly. Flint asked if Malloy could suggest an investment that would give a good return with a low risk. Malloy suggested the City act conservatively to keep their principal balance secure, but had no specific investment advice. Flint stated he would like to see how Orono's municipal tax rate compares metro -wide. Keene stated that the Minnesota Tax Payers' Association provided a good comparison. White stated that with the state tax compression and reduction, commercial and industrial rates would drop permanently, but the residential rates would dip, then rise again. 4. Charitable Gambling Ordinance Revisions — Public Hearing Moorse stated that the purpose of the public hearing was to receive public comments regarding the City's ability to collect 10% of the net proceeds from charitable gambling. Orono currently has 3 charitable gambling operations. Most cities do have an ordinance • allowing them to receive 10% of the proceeds. The Parks Commission had suggested charitable gambling as a way to continue to fund park projects. Mayor Peterson opened the public hearing for comments at 7:20 p.m. Mike Meyers of 6032 Beachwood Road, Mound and Rick Sheridan of 6332 Miller Lane, Edina were present representing the Mound /Westonka Hockey Club. Meyers stated that they participate in charitable gambling at the Narrows Saloon. They are looking to raise funds in order to build another ice arena and lower participants' cost. They rely on 100% of the funds raised to help their association. He stated that a newspaper reported that children in Orono don't benefit from the funds raised to help the hockey association. But about 6% of the association members do live in Orono proper. He also stated that some Mound residents frequent the Narrows Saloon in order to support the hockey association. Sheridan stated that he was president of the association when they set up the charitable gambling. They have a two -year contract with the Saloon, and do not know if they'll be able to renew the contract when it expires. They borrowed $10,000 to set up the gambling and have not yet recovered their investment. If Orono sets up a trade area that excludes Mound, the hockey association would be raising money they couldn't spend. He believes, however, that Orono and Mound share a continuous border so they would not be able to exclude Mound. They began the charitable gambling in February or March and have been is ORONO CITY COUNCIL MEETING MONDAY, AUGUST 13, 2001 0 4. Charitable Gambling Ordinance Revisions Public Hearing — Continued earning $800 - $1,500 per month. Fifteen of 237 children in their hockey association live in Orono. Mayor Peterson asked if the hockey association had any other charitable gambling set -ups. They do not. Flint asked where they have ice time. Meyers stated they use the Pond Arena in Mound and the Orono arena. Orono's arena is about $20 more per hour than the Mound arena. Sheridan stated that they split the Mound arena with the Orono hockey association, so that the Orono association ends up with one -and -a -half arenas and the Mound association ends up with half an arena. Sheridan also stated that they split the Saloon's hours with the MS Society. Originally the MS Society was going to leave. They did not, however, and the MS Society operates until 6:00 p.m., with the Hockey Association operating after 6:00 p.m. Drew McDermott of 2702 Walters Port Lane, the chairman of the Orono Parks Commission, stated that their money is derived from subdivision fees and Orono is almost completely subdivided. When the subdivisions are finished, their source of funds will be gone. The Parks Commission has several requests before them, including a picnic area • and volleyball set at Antoine park, new playground equipment and an expansion at Hackberry park. They are also trying to improve things for disabled people. The Parks Commission money primarily benefits Orono's children. Chris Morgart of 1003 Wildhurst Trail asked if the City would only be taxing the hockey association. Sansevere stated that the Narrows Saloon and bowling alley are the only pull - tab venues in Orono. Mayor Peterson closed the public hearing at 7:40 p.m. Sansevere stated that he viewed the 10% cut as a tax and a burden for the recipients of charitable gambling funds, and therefore he would not support it. Mayor Peterson stated she agreed, and that the City could look at initiating the plan in 2003. White agreed that the Council should revisit the plan in two years. Flint stated that other cities take 10% of charitable gambling and Orono should as well. McDermott asked if the Council could approve the taking of 10% proceeds and make it effective in 2002. Mayor Peterson stated she was not comfortable attaching a date to it. Nygard asked how they could give fair warning to future groups who start charitable gambling. Sheridan stated that groups have to apply to the City and go through a background check before they can begin charitable gambling. The City could notify new 4 ORONO CITY COUNCIL MEETING MONDAY, AUGUST 13, 2001 4. Charitable Gambling Ordinance Revisions Public Hearing — Continued is groups that the 10% may be taken in the future at the time of application. Sansevere suggested sending a letter to the MS Society and Lions notifying them of the discussion regarding charitable gambling. Meyers thanked the Council for being receptive to the needs of a non - resident. APPROVAL OF MINUTES *5. Regular Council Meeting of July 23, 2001 White moved, and Sansevere seconded, to approve the Minutes of the Regular Council Meeting of July 23, 2001. Vote: Ayes 4, Nays 0. PARK COMMISSION COMMENTS —DREW MCDERMOTT, REPRESENTATIVE McDermott stated that the Orono Baseball Association will now be adding to their fields and leasing directly from the school district. Flint stated that the school district had • previously wanted the City to lease the land, and the Baseball Association to sub -lease from the City. Gaffron stated that the Baseball Association had applied for a CUP and would be on the Council's agenda in the near future. McDermott stated that they had discussed putting a check -off on the water bill making it easy for people to donate to the Parks Commission. The accounting department felt that could be confusing. So the Parks Commission suggested that they include a coupon in the fall and spring newsletter that states something like, "I would like to make a donation to the Parks Commission," that people could send in with a donation. Also, they would be posting a notice on the web site, encouraging donations of land or cash. The Commission also discussed the ecological inventory. There are a number of DNR grant programs that would work for Highwood, Lowry Hill, Saga Hill, Carlson property, and Lurton property. Some invasive trees and weeds need to be removed from sites before they take over. Navarre Park will have its grand opening on Saturday, August 25`h at 11:30 a.m. They will have an arch of balloons, refreshments, and possibly a face painter. He stated that Gappa had agreed to clean up the parking lot before the event. They hope the Eagle Scout will get the benches in by Saturday. They have not heard back from the MS Society regarding the drinking fountain. 0 5 ORONO CITY COUNCIL MEETING MONDAY, AUGUST 13, 2001 • PARK COMMISSION COMMENTS DREW MCDERMOTT, R E PR E S EN TA T I V E— Continue d The Commission also discussed the 39 lake access points. They have identified the first 14 that they are requesting the City mark with signage between now and the summer of 2002. They agreed on three sign styles: the standard park sign that is 60" tall and green; a flush metal cap that would be set in the ground; and an upright marker that is 30" tall to be located in the common -use areas of the access points with arrows pointing in. He stated that peoples' lawns have flowed into the access points. All of the first fourteen sites are the ones already heavily used, except for Forest Lake Landing. Sansevere asked if Forest Lake Landing would have been in the first group if it hadn't become a public issue. McDermott stated it would not be in the first cut if it weren't such an issue with the neighbors. They have not finished reviewing the methods used to identify classification. He stated he had received a proposal at the beginning of the meeting to classify Forest Lake Landing as a natural area. Nygard suggested he check with Gappa about cleaning up Navarre Park after the grand opening. Sansevere stated McDermott and the Commission do a good job of running their meetings. • PLANNING COMMISSION COMMENTS —BILL STODDARD, REPRESENTATIVE None. PUBLIC COMMENTS Lisa Mullen of 4440 Forest Lake Landing stated that she is concerned about the public access. It's currently located in part on her property and she is concerned about people intruding on her living space when they use the access. Part of her house's foundation, deck, stairs, well, and driveway lie on the public land. She would not have a recourse if people intruded on her property. Flint asked if she had been informed about the situation when she bought the property. Mullen stated she had lived there for 7 years and her realtor did not give any dimensions of the lot. Gail Blackstone of 4465 Forest Lake Landing stated that the neighbors had proposed two alternative classifications: class 5 steep slope drainage only, and class IA natural area. She hoped the City would choose a lower -use access designation. She stated she didn't understand how the Mullen house was allowed to be built where it was if the access was 0 ORONO CITY COUNCIL MEETING MONDAY, AUGUST 13, 2001 PUBLIC COMMENTS — Continued • always considered to be for general public use. She also stated that the Parks Commission had been very respectful to the neighbors. Mayor Peterson stated that while Council was taking comments, the issue would be placed on a future agenda for formal consideration. Tim Lenke stated that he drafted the proposal that was given to the Council. Marcia Hickey of 4640 Tonkaview Lane stated she would like a neighborhood access for Orono residents who don't live on the lake and want somewhere quiet to swim. They don't want strangers coming into the neighborhood and understand their neighbors' concern. Tim Line of 4415 Forest Lake Landing stated that Council Member Nygard had been pushing the issue for the last 3 months and he wanted to ask Nygard some questions. Mayor Peterson and Attorney Barrett stated that the Council was not available for direct questioning. Line then stated that Nygard had championed the issue, but did not show up at the last Parks Commission meeting. He stated that Nygard had canvassed the neighborhood looking for votes, but did .not check with them on the landing issue. He asked how many people it would take to sign their petition before the Council would see their side of things. Line stated he was concerned over rumors that Nygard felt the Line's had changed the grade of the landing and wondered if they were being accused of something. He stated there was a rumor that the Hickey's were asked to go swimming at the access to help Nygard with his campaign. He would like the access to be classified as class 5. Line stated there is a rumor that one of Nygard's constituents had driven down the access. He had photos that he showed the Council to prove it was not possible to drive down the landing because of a shed and several trees located on the access. Mayor Peterson cautioned Line about believing rumors and suggested he call Council Member Nygard to get the answers he was seeking. Shirley Bull of 4690 Tonkaview Lane stated that she had brought the original petition to the City asking for use of the access. She understands the access is Class 1 now and would like it to stay Class 1. They desire a low -key access. She tried to use the landing, and felt like she was trespassing, so she drove to Minnetrista. She stated the information she had in her petition about a neighbor driving down the access came from a neighbor and had not been attributed to Council Member Nygard. Mr. and Mrs. Wolfe of 4450 Forest Lake Landing stated the area is not desirable for swimming because it has a muddy bottom and there are lily pads about 15' out from the beach with a lot of carp in the area. They stated that anyone using the access would be in 0 7 ORONO CITY COUNCIL MEETING MONDAY, AUGUST 13, 2001 • PUBLIC COMMENTS — Continued 0 Lisa Mullen's back yard. Mrs. Wolfe felt if the access use were to change, it would escalate, raising safety and security concerns. Lorie Line of 4415 Forest Lake Landing stated that everyone is uncomfortable with the access situation, and no one would ever be comfortable using the Mullen's back yard. She stated that the Line property was previously used as a lake access and people were confused now that this 2 -acre property with 780' of shoreline had been purchased and developed as private property. She stated that they planted the arborvitae wall for their and the Mullen's privacy. Joan Valek of 4720 Tonkaview Lane stated that petitions are going around that state the City is trying to take the Mullen's backyard; she heard the City pays property taxes on the landing; she was also told it was a fire lane. She felt the petitions were misleading on both sides of the argument. Rich Walter of 4470 Forest Lake Landing stated that there were people who used the vacant lot, now owned by the Lines, to access the lake, but no one ever used the public access. Chris Morgart of 1003 Wildhurst Trail stated that the access is 60' wide the entire length of the landing. He asked if the City would stake out 60' and cut into people's front yards. He stated the City must have known the Line's were usurping City property. Mayor Peterson stated the Line's had requested variances that were approved. Morgart stated the City claims they own property in two people's front yards. Flint stated that adverse possession doesn't run against the City. People can use portions of City property, but the City still owns it. The Mullen's house was built before things were properly scrutinized. Today the house would not be built on City property. Morgard asked if the City could claim a 60' swath of property and the Line's and Mullen's would have to deal with it. Flint stated some people have requested more access and the City is considering their request. Sansevere stated he feels the access should be kept open for passive use. He stated that someone had accused him of liking lily pads more than children, and that was not true. He simply felt the lily pads were good vegetation for the lake and should not be removed. He also stated the landing should not be treated differently from the other 38 landings. Morgart stated the City should vacate the landing and split the property between the Line's and Mullen's. Larry Brown of 4755 Tonkaview Lane stated the City should not vacate the landing because then it would be permanently vacated. Sansevere stated that was not being considered as an option. 8 ORONO CITY COUNCIL MEETING MONDAY, AUGUST 13, 2001 PUBLIC COMMENTS — Continued 0 Joan Valek of 4720 Tonkaview Lane stated that they are not considering a regular property; it's lakeshore and people shouldn't be denied access. She also stated that people were making much ado about nothing because the landing wouldn't be used much anyway. Bob Berklund of 1298 Wildhurst Trail stated he was in favor of the landing being vacated. Roger Kirchner of 2000 Shadywood Road stated that the neighbors in Shadywood also wanted action on their fire lane this summer and want use of their landing restricted. He felt it was not appropriate to allow changes that affect the character of a neighborhood. Sansevere asked if many people use the access. Kirchner stated he'd seen two people use the access so far this summer. Lorie Line of 4415 Forest Lake Landing stated that if children use the landing for swimming, there would be safety concerns with boating traffic. The Line gardens are photographed and published in national magazines and boaters come very close to their dock to gawk at the celebrity home, posing a danger to swimmers who wouldn't be visible around the lily pads. Peter Varnson of 4467 Forest Lake Landing stated that he would not have moved into the neighborhood if he'd known there was a public access so close to his property. Sansevere asked if use of the landing had recently increased. Vamson stated not yet, but he expected use would grow. John Blackstone of 4465 Forest Lake Landing stated that the Mullen house is partially on the access. The City doesn't have money to develop parks, but is willing to spend money developing an access that has historically not been used. He stated there are old trees on the access. The Hickey's are the only people who've used the access since he's lived there and it was rumored that they were asked to do that. He stated the issue was not dead and was not a "Line issue." Marcia Hickey stated that she was not asked to use the landing. She didn't know it existed until the petitions came around. She walked through tall weeds to make certain she was on public property. Sansevere asked if they enjoyed swimming there. She stated her daughter and her friends enjoyed it very much. Tim Landon of 1360 Vine Place asked who would pay for improvements to the landing. McDermott asked how many hearings the Council wanted to hold for the landings. Mayor Peterson stated that the next public hearing would deal only with the Forest Lake Landing. 0 0 ORONO CITY COUNCIL MEETING MONDAY, AUGUST 13, 2001 PUBLIC COMMENTS — Continued Lorie Line asked if the City would reconsider classification and make the landing a natural area. Mayor Peterson stated the Planning Commission would look at the neighbors' proposal at their next meeting. ZONING ADMINISTRATOR'S REPORT *6. #01 -2696 Michael & Jeannie Baden & Wesley & Elizabeth Woverton, 3240 & 3445 High Lane, Rearrangement of Common Property Line Resolution No. 4677 White moved, and Sansevere seconded, to adopt Resolution No. 4677 approving a Subdivision of a lot line rearrangement for properties located at 3420 and 3445 High Lane. Vote: Ayes 4, Nays 0. *7. #01 -2697 Larry & Sharon Gehl, 1825 Concordia Street, Variances — Resolution No. 4678 White moved, and Sansevere seconded, to adopt Resolution No. 4678 granting variances to Municipal Zoning Code Section 10.25, Subdivision 6(B) to permit an 8' east side setback for an addition of garage and living space to the existing principal building where a 15' setback is required. Vote: Ayes 4, Nays 0. *8. Surface Water Management Plan — Status— Resolution No. 4679 White moved, and Sansevere seconded, to adopt Resolution No. 4679 regarding the status of the Orono Surface Water Management Plan. Vote: Ayes 4, Nays 0. *9. Comprehensive Plan —I/I Goals White moved, and Sansevere seconded, to incorporate into the 2000 – 2020 CMP the language: "Orono acknowledges the maximum monthly flow to minimum monthly flow ratio goal of 1.7 established for the City by Metropolitan Council. The City will continue its efforts at I/I reductions by completing its current ongoing system defect identification and rehabilitation program within the next five years, and will strive to eliminate sources of excessive I/I where it can be cost - effectively eliminated." Vote: Ayes 4, Nays 0. 10 ORONO CITY COUNCIL MEETING MONDAY, AUGUST 13, 2001 MAYOR/COUNCIL REPORT • White stated that the area where County Road 15 and Ferndale meet looks weedy and unkempt. Kellogg stated he would look into cleaning up the area. Sansevere stated that Council members should not give direction to the Parks Commission when attending Parks Commission meetings. Flint stated that Long Lake and Medina have approved the Fire Station agreement. Mayor Peterson stated she received a phone call from the Mayor of Long Lake asking her to ride in the Corn Days parade, and the Long Lake Mayor had stated she was pleased the cities had come to an agreement over the fire station and hoped they could renew their monthly meetings. Mayor Peterson publicly thanked the Mound Fire Department, Rick's Supervalue, the Hennepin County Water Patrol, the DARE car, and the McGruff dog who helped with the National Night Out. PUBLIC SERVICE DIRECTOR'S REPORT 10. Proposed Reconstruction Project — Watertown Road east of Willow Drive Moorse stated that Long Lake is considering the feasibility of reconstructing Watertown • Road to a 32' wide urban section street with a 6' wide concrete sidewalk on the north side of the street. Approximately 1,000' of Watertown Road east of Willow Drive is located in the City of Orono. The preliminary cost estimate for the project is about $1,200,000. The Orono prorated share of the project costs is estimated to be $225,000. The Orono cost for the feasibility study is about $2,800. If Long Lake proceeds with the project, they would come back to Council asking if they wanted to pursue the project. Council agreed there were roads of greater concern than Watertown. No action was requested. CITY ADMINISTRATOR'S REPORT 11. Navarre Commercial Area Vision Process Moorse stated that staff was working on a plan and guidelines designed to preserve and improve the vitality of the Navarre commercial area. He was looking for direction from Council in regard to hiring a consultant and organizing a citizen committee. 11 ORONO CITY COUNCIL MEETING MONDAY, AUGUST 13, 2001 • 11. Navarre Commercial Area Vision Process — Continued Flint suggested they discuss the issue during the budget process. White suggested there maybe grants available for the project. *12. Request to Hire Full -time Community Service Officer White moved, and Sansevere seconded, to approve the hiring of Mr. Joshua Arneson as a full -time Community Service Officer at the beginning wage of $11.43 per hour, to include benefits, effective August 27, 2001. 13. Request to Hire Part -Time Police Officer – Resolution No. 4680 Mayor Peterson asked why they want to hire part-time officers. Moorse stated they need part-time officers to fill in during vacation times and special activities. They also fill shifts that full -time officers would be paid overtime for. Many private parties request off - duty police officers during the summer months, and part-time officers could meet some of those requests. Also, when a space opens up on the police force, a part-time officer can easily be hired into full -time and they will already be part of the Orono police force. Flint asked how many hours they work per week. Moorse stated it was approximately 2 shifts per week. • White moved, and Flint seconded, to hire Ronald J. Hendricks as a part -time police officer at the beginning rate of $13.46, and to adopt Resolution No. 4680 to declare that the part -time position held by Ronald J. Hendricks is that of a Police Officer. Vote: Ayes 4, Nays 1 (Mayor Peterson). 14. Request to Hire Temporary Part -Time Employees Moorse stated that the temporary part-time employees would work as undercover operatives for the sole purpose of attempting to buy liquor from licensed vendors in the Orono Police jurisdiction. They would be paid $9.50 an hour and would not exceed 40 hours. Sansevere asked if they could even hit 40 hours. Moorse stated they probably would not, unless they went to court as a witness. Mayor Peterson moved, and White seconded, to approve the hiring of 2 persons to work as undercover operatives for the sole purpose of attempting to buy liquor from licensed vendors in the Orono Police jurisdiction. They would be paid $9.50 an hour and would not exceed 40 hours. Vote: Ayes 5, Nays 0. • 12 ORONO CITY COUNCIL MEETING MONDAY, AUGUST 13, 2001 2. Public Hearing on Use of Funds from the Community Investment Fund- - Continued Mayor Peterson asked Flint if he had any questions or comments on the matter. He did not. White moved, and Sansevere seconded, to approve a loan in the amount of $680,000 from the Community Investment Fund, with a term of 10 years and an interest rate of 5.5 %, to fund the City's contribution toward the replacement of the Long Lake fire station, and to approve a budget amendment to reflect the expenditure from the fund. Vote: Ayes 5, Nays 0. CITY ATTORNEY'S REPORT None. *15. LICENSES None. • *16. BILLS White moved, and Sansevere seconded, to approve payment of the All Funds Account. Vote: Ayes 4, Nays 0. ADJOURNMENT The meeting was adjourned at 9:56 p.m. ATTEST: Linda S. Vee, City Clerk Barbara Peterson, Mayor 13