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HomeMy WebLinkAbout06-22-2009 Council Minutes� r 4 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, June 22, 2009 7:00 o'clock.p.m. ROLL The Orono City Council met on the above - mentioned date with the following members present: Mayor James White, Council Members Jim Murphy, Lili McMillan, Cynthia Bremer, and Douglas Franchot. Representing Staff were City Administrator William Wells, Finance Director Ron Olson, City Clerk Lin Vee, Assistant City Administrator for Long -Term Strategy Mike Gaffron, Planner Evelyn Turner, City Engineer Tom Kellogg, and Recorder Jackie Young. Mayor White called the meeting to order at 7:01 p.m., followed by the Pledge of Allegiance. CONSENT AGENDA Item Nos. 7 to 17 were added to the Consent Agenda. Murphy moved, McMillan seconded, to approve the Consent Agenda as amended. VOTE: Ayes 5, Nays 0. APPROVAL OF MINUTES • *2. REGULAR COUNCIL MEETING OF JUNE 8, 2009 Murphy moved, McMillan seconded, to approve the minutes of the June 8, 2009, City Council meeting as submitted. VOTE: Ayes 5, Nays 0. PUBLIC HEARING — 7:05 P.M. 3. MYRTLEWOOD UTILITY IMPROVEMENTS PROJECT ASSESSMENT HEARING Kellogg stated approximately one year ago the Myrtlewood neighborhood approached the City requesting that they consider doing sewer and/or water improvements in the area. A feasibility study was completed, which determined that the estimated costs for each of the 10 properties are $8,500 for the sewer and $10,000 for water. In addition, the costs were determined to provide water to the Montessori School at 850 Wayzata Boulevard, which amounted to $35,000, and water main improvements to 875 Wayzata Boulevard, which amounted to $70,000. Kellogg indicated as part of the plans and specifications, sewer and water was designed to serve the Myrtlewood neighborhood as well as 850 and 875 Wayzata Boulevard. Kellogg noted notice of tonight's meeting was given to all 10 of the Myrtlewood neighborhood as well as the property owners of 850 and 875 Wayzata Boulevard. Kellogg stated he met with the developer of the 875 Wayzata Boulevard site, who indicated they would be moving forward with their application and are requesting that sewer and water be extended to the site. Item No. C is change order number one. The proposed assessments were discussed with the Council for 850 and 875 Wayzata Boulevard and it was • determined that the fairest methodology to split the costs for the additional work was a one- third/two- thirds split, which is represented by the $35,000 and $70,000 assessment. PAGE 1 of 9 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, June 22,2009 7:00 o'clock p.m. (3. MYRTLEWOOD UTILITYIMPROVEMENTS PROJECT ASSESSMENT HEARING, Continued) ,Mayor White opened the public hearing at 7:08 p.m. Mike Kuruvilla, Montessori School, 850 Wayzata Boulevard, stated he would like to know what the timeline for the project is. Kuruvilla indicated he is working with another state agency that requires the information be provided in order to proceed forward with his discussions. Kuruvilla indicated he also is concerned about the costs but that he would like to proceed forward with the work if he determines he is able to financially. Kellogg stated the best information he has currently is if the project is awarded tonight, the contractor would start work in July and the specifications require that the work be completed by approximately the middle of September. Kellogg noted this project has been delayed slightly and that it may be necessary to extend the deadline to the end of September. Kellogg stated as it relates to the sewer service to the Montessori School, a sewer stub to the property was included in the design and a separate quote was received from the contractor. Kellogg indicated he is not 100 percent sure how the costs would be assessed between 850 and 875 Wayzata Boulevard but that it likely will be a one - third/two- thirds split. I • Kuruvilla requested someone from the City contact him regarding the school's usage and the costs. Kuruvilla commented his water and sewer usage is not very high. 0 Mayor White suggested the City Engineer contact Mr. Kuruvilla. Mattick stated to his understanding the specifications require the contractor complete the project within 30 to 35 days of commencing work in the field. Kellogg indicated the contractor was given a window of opportunity for when the project has to be commenced and that once the work starts, they are then given, 30 to 35 days to complete the project. Kellogg noted the contractor would have to be given some additional time to complete the work to 850 and 875 Wayzata Boulevard and that his office will need to ensure that the extra work is completed timely. Murphy noted the assessments are for the construction costs and are not based on estimated usage. Kellogg stated the assessments are based on the cost of the project and the number of SAC units that would be required as determined by the Metropolitan Council. The City Council should decide whether they would like to proceed forward with the project and whether they would like to include the additional work. Steve Ryan, 25 Myrtlewood Road, indicated he did a survey of the neighborhood and that the support for the sewer is unanimous and that there were six in favor of the water project. The concern with the water main improvements related to whether they would have to use city water to water their yards as they would like to retain their private wells for that purpose. • PAGE 2 of 9 ,A • MINUTES OF THE ORONO CITY .COUNCIL MEETING Monday, June 22, 2009 7:00 o'clock p.m. (3. MYRTLEWOOD UTILITYIMPROVEMENTS PROJECT ASSESSMENT HEARING, Continued) Gaffron stated the City does not have an ordinance requiring property owners to abandon their wells if water main improvements are completed on their property but that state laws require either a well be maintained and operated or abandoned and properly sealed. Ryan asked if the exact assessment would be determined this evening and noted that the Myrtlewood neighbors do not want to have to bear any portion of the costs to extend the service to 850 and 875 Wayzata Boulevard. Kellogg stated the bid form contains a breakout of the costs for both the water and the sewer mains and that the Council has the option tonight to adopt the assessment roll and then approve the bid and award the work. Kellogg noted the work for 850 and 875 Wayzata has been separated out and is included in a separate bid. Lori Paulson, 30 Myrtlewood Road, asked whether this contractor has done work in Orono previously. Kellogg stated this contractor has not done any work in the City before but that their references are very good and that they have done a number of similar projects. Ryan asked if the work would entail any damage to landscaping and who would bear the costs to repair . the damage. Kellogg noted the majority of the work would be done via directional boring and that they would be contacting each individual property owner about where the work will be completed on their lot and that there is some leeway on where the services would go. Restoration of disturbed areas is included in the contract. Mayor White closed the public hearing at 7:31 p.m. a. Adopt Assessment Roll — Resolution No. 5844 Murphy moved, McMillan seconded, to adopt RESOLUTIO NO. 5844, a Resolution Adopting the Proposed Assessment for the Myrtlewood Utility Improvements Project. Kellogg noted all ten residents would be assessed for the water main project as part of this motion. McMillan stated she has some concerns regarding the costs for both projects, and noted that there are also additional costs for the grinder pump and the sewer connection, which could increase the total costs to over $17,000. McMillan noted the water main would add another $10,000 on top of that. Kellogg stated the City has historically allowed the resident to pay all the costs at the time of hook -up if they do not want to connect now or to have the costs assessed over a number of years. Ryan indicated that all the residents in the Myrtlewood neighborhood::are in agreement with the sewer • work but that not everyone is in agreement on the water portion of the project. Ryan stated in his opinion the best solution would be to allow the residents to opt out of the project if they so choose. . PAGE 3 of 9 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, June 22, 2009 7:00 o'clock p.m. • (3.. MYRTLEWOOD UTILITYIMPROVEMENTS PROJECT ASSESSMENT HEARING, Continued) McMillan asked if there is the option to opt out of the water project. Kellogg noted the residents do have the option to opt out of the water main project but that they would need to pay all the costs up front if they decide at some point in the future to connect to the water main rather than have the costs assessed over a period of time. Kellogg stated if four of the residents choose not to proceed with connection to the water main at this time, the cost to the City would be $40,000. Mattick stated to his understanding the property owner had to attend the assessment hearing tonight and state that they would like to opt out. Ryan noted four of the residents are represented tonight. Ryan noted there are also three properties currently for sale. Mattick concurred that immediate hook -up is not mandatory, but that if they choose to go forward with the water project at a later point in time, they would be required to pay the entire costs up front. Franchot asked how the City funds the portion that they would be required to contribute Olson indicated it would come out of the water fund. VOTE: Ayes 5, Nays 0. • b. Award Construction Contract — Resolution No. 5845 Bremer moved, Franchot seconded, to adopt RESOLUTION NO. 5845, a Resolution Awarding the Bid for the Myrtlewood Utility Improvements Project to GM Contracting, Inc., in the amount of $215,774.03. VOTE: Ayes 5, Nays 0. C. Approval of Change Order No.1 Kellogg noted Change Order No. 1 is the additional work necessary to provide sewer and water to 850 and 875 Wayzata Boulevard. Kellogg stated no assessment notices for the additional work were sent to these two property owners since the exact costs were not determined until recently. Mattick stated the City would expect the property owners to bear the costs associated with this change order and that it makes economic sense to proceed with the work in conjunction with the Myrtlewood project. A waiver of assessments could be drafted for the two property owners' signature and the change order could be approved at the next council meeting. The developer of 875 Wayzata Boulevard indicated he met last Thursday with Kellogg and that they would like to proceed forward with their project and that at the present time they do not have any other way to provide sewer and water to the property. Kellogg stated if the Council awards the contract tonight, the soonest the work would commence would • be the week after the 0 of July, and that if change order number one is approved at the July 13'h City Council meeting, the work would not be delayed. PAGE 4 of 9 • MINUTES OF THE , ORONO CITY COUNCIL MEETING Monday, June 22, 2009 7:00 o'clock p.m. (3. MYRTLEWOOD UTILITYIMPROVEMENTS PROJECT ASSESSMENT HEARING, Continued) Kuruvilla commented he would like a chance to understand the project more completely as it relates to the costs and discuss the timeline with the state agency he is working with. Kuruvilla indicated he is generally in favor of the project. Franchot asked if the issues relating to the comprehensive plan have been resolved. Gaffron noted there are two issues relating to the comprehensive plan. One is that the property at 850 would need to be requided from residential to institutional to be allowed into MUSA. The property at 875 also needs to berequided. Both of the amendments are currently before the Metropolitan Council and that in his view they are nonissues. Gaffron noted the lots would not be eligible to hook up to sewer until the Metropolitan Council approves the amendments. Kuruvilla pointed out that the water and sewer lines have to go through his property in order for 875 to have service. Kellogg stated the water and sewer mains would go through the right -of -way abutting 850 Wayzata Boulevard but would not go through the actual property. Bremer moved, Murphy seconded, to table approval of Change Order No. 1 to July 13, 2009. • VOTE: Ayes 5, Nays 0. PRESENTATION 4. 2008 COMPREHENSIVE ANNUAL FINANCIAL REPORT Craig Popenhagen and Scott Brown, Larson, Allen, were present. Popenhagen noted the Council has before them draft reports of the City's 2008 audit and that the final reports would hopefully be issued by the end of the week. The deadline for filing the reports with the state is June 306'. Brown stated the audit provides reasonable, but not absolute assurance that the financial statements are free of material misstatement. Two new accounting standards relating to environmental remediation and pension disclosures had no impact on this year's financial statements. In addition, the audit found no transactions entered into by the City during the year for which there was a lack of authoritative guidance or consensus. Brown noted bond issuance costs and discounts were understated by $48,000 and $52,000 respectively in 2007. Some difficulties were encountered during the audit due to obtaining supporting schedules and work papers necessary to audit the City in a timely manner. Brown stated three material weaknesses were noted and they relate to oversight of financial reporting, ® approval and review of transactions, and segregation of duties. As it relates to legal compliance, one exception was noted for lack of approved out of state travel policy. PAGE 5 of 9 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, June 22, 2009 7:00 o'clock p.m. (4. 2008 COMPREHENSIVE ANNUAL FINANCIAL REPORT, Continued) Popenhagen stated they would like to see a better audit trail as it relates to internal controls and that they would like to see better documentation denoting review by staff. Popenhagen stated overall the City is in very good financial health and that the City's unrestricted net assets represent approximately 22 months of expenses. Approximately 52 percent of its net assets are expendable. Unrestricted net assets represent approximately 15 months of assets. Franchot asked what would be best practices for things like coverages. Popenhagen stated 8 to 12 months of reserves would still be healthy. One advantage to having more in reserves is the ability to avoid the need to bond for different projects. Popenhagen noted governmental fund balances increased $3.8 million, which was primarily due to bond proceeds in the pavement management plan fund. Overall the City's net assets increased by $67,000 and there is no long -term debt. Popenhagen reviewed the City's fund balances, revenues, and expenditures. Popenhagen recommended the City implement a formal written business continuity or disaster recovery plan to be used in the event of a disaster. White commended Popenhagen and Brown for their work on the City's audit. Murphy asked if they had any issues with the timing of the audit. • Popenhagen stated a number of other cities have just recently finished up their audits and that the City of Orono is within the norm. Wells noted the audit was delayed slightly this year given the switch in auditors and that the audit work would likely start earlier next year. S PLANNING COMMISSION COMMENTS — LOREN SCHOENZEIT, REPRESENTATIVE Schoenzeit stated he had no questions but would be available for questions. PUBLIC COMMENTS None ZONING ADMINISTRATOR'S REPORT *5. #09 -3402 PHILIP F. KALEY, 1395 BROWN ROAD SOUTH — VARIANCES — RESOLUTION NO. 5846 Murphy moved, McMillan seconded, to adopt RESOLUTION NO. 5846, a Resolution Granting • Variances to the Orono, Minnesota, City Code Sections 78 -420, 78 -1403, and 78 -1436, for the property located at 1395 Brown Road South. VOTE: Ayes 5, Nays 0. PAGE 6 of 9 • 1�-] MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, June 22, 2009 7:00 o'clock p.m. *6. #09 -3413 CLEMENT AND WINNIFRED KROLL, 60 STUBBS BAY ROAD SOUTH — PRELIMINARY PLAT EXTENSION — RESOLUTION NO. 5847 Murphy moved, McMillan seconded, to adopt RESOLUTION NO. 5847, a Resolution Granting an Extension of the Preliminary Approval of a Class III Subdivision for Property Located at 60 Stubbs Bay Road South. VOTE: Ayes 5, Nays 0. MAYOR/COUNCIL REPORT Murphy noted since the opening of the new Highway 12 corridor, there have been issues raised by the downtown area business owners. Murphy suggested the city administrator write a letter, signed by the mayor, to the Long Lake Area Chamber congratulating them for taking a proactive role in addressing the concerns of the business owners. McMillan asked if Kellogg has reviewed the plans for the Orono Orchard Road and County Road 15 intersection. Kellogg indicated he has not. McMillan commented that it might be in the interests of the City if the City Engineer would review those plans since it appears that some of the items that were discussed with Hennepin County are not being done. McMillan stated she was told by Police Chief Famiok that the yield sign should remain. Gaffron stated the County intends to install a raised porkchop and extend the turn lane and striping. It has been concluded that the trail was not going to jog south or north and was going to go straight across. Gaffron indicated that Police Chief Famiok was told not jogging the trail was a city decision, which is not his recollection of the discussions. Famiok has indicated he would follow up on the issues relating to that intersection. McMillan stated she would like to know the rationale for the changes. McMillan commented the striping for motorists taking a left on County Road 15 is somewhat confusing and that it directs the motorists towards Molly's Corner. McMillan stated the City will also need to address the fence issue on Big Island and suggested that a committee meeting be scheduled. Gaffron noted one quote has been received for the fencing and that they will likely obtain some additional quotes. CITY ENGINEER'S REPORT None PAGE 7 of 9 r, MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, June 22, 2009 7:00 o'clock p.m. • CITY ADMINISTRATOR'S REPORT *7. JOINT AND COOPERATIVE AGREEMENTjFOR THE USE OF LAW ENFORCEMENT PERSONNEL AND EQUIPMENT — RESOLUTION NO. 5848 Murphy moved, McMillan seconded, to adopt RESOLUTION NO. 5848, a Resolution Adopting the Joint and Cooperative Agreement for Use of Law Enforcement Personnel and Equipment. VOTE: Ayes 5, Nays 0. *8. NAVARRE FIRE STATION OWNERSHIP AGREEMENT Murphy moved, McMillan seconded, to approve the Addendum to the Contract for Fire Protection with the City of Long Lake. VOTE: Ayes 5, Nays 0. *9. ACCEPT DONATION Murphy moved, McMillan seconded, to accept donation of a Connelly life jacket from Excel Boat Club. VOTE: Ayes 5, Nays 0. *10. ADJUST 2008 GENERAL FUND BUDGET Murphy moved, McMillan seconded, to approve the 2008 General Fund Budget Amendment as presented. VOTE: Ayes 5, Nays 0. *11. ADJUST 2008 SPECIAL REVENUE FUND BUDGETS Murphy moved, McMillan seconded, to approve.the 2008 Special Revenue Funds budget adjustments as presented. VOTE: Ayes 5, Nays 0. *12. PAY REQUEST NO.2 — CASCO POINT RECONSTRUCTION PROJECT Murphy moved, McMillan seconded, to approve Request for Payment No. 2 for the Casco Point Reconstruction Project, Geislinger and Sons, Inc., in the amount of $339,719.13. VOTE: Ayes 5, Nays 0. *13. PAY REQUEST NO. 2 AND FINAL — TH 12 SEWER AND WATER SERVICE CONNECTIONS Murphy moved, McMillan seconded, to approve Request for Payment No. 2 and Final for the TH 12 Sewer and Water Service Connections Project, Burschville Construction, in the amount of $3,364.34. VOTE: Ayes 5, Nays 0. *14. PAY REQUEST NO. 2 AND FINAL —CRYSTAL BAY BUSINESS CENTER WATERMAIN IMPROVEMENTS Murphy moved, McMillan seconded, to approve Request for Payment No. 2 and Final for the Crystal Bay Business Center Water Main Improvement Project, Burschville Construction, in the • amount of $2,687.95. VOTE: Ayes 5, Nays 0. PAGE 8 of 9 A • • • MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, June 22, 2009 7:00 o'clock p.m. *15. PAY REQUEST NO.2 AND CHANGE ORDER NO. 1— STONEBAY WETLAND CORRECTIONS Murphy moved, McMillan seconded, to approve Change Order No. 1 and Request for Payment No. 2 and Final for the Stonebay Wetland Corrections Project, Burschville Construction, in the amount of $8,369.50. VOTE: Ayes 5, Nays 0. *16. APPOINTMENT OF 2009 GOLF COURSE EMPLOYEE Murphy moved, McMillan seconded, to approve the appointment of Elizabeth Delaney to a seasonal position with the Golf Course, effective June 23, 2009, at a pay rate of $9.50 per hour. VOTE: Ayes 5, Nays 0. *17. RESOLUTION OF SUPPORT FOR "LONG LAKE ORONO" SIGNAGE OPTION— RESOLUTION NO. 5849 Murphy moved, McMillan seconded, to adopt RESOLUTION NO. 5849, a Resolution Supporting the "Long Lake Orono" Signage naming Option for the Highway 12 Bypass Corridor. VOTE: Ayes 5, Nays 0. CITY ATTORNEY'S REPORT None 18. LICENSES & PERMITS None *19. BILLS Murphy moved, McMillan seconded, to approve payment of the All Funds Account. VOTE: Ayes 5, Nays 0. ADJOURNMENT Bremer moved, Murphy seconded, to adjourn the Orono City Council meeting at 8:42 p.m. VOTE: Ayes 5, Nays 0. ATTEST: Linda S. Vee, City Clerk g el 4 �, 06 s M. White, Mayor PAGE 9 of 9