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HomeMy WebLinkAbout04-25-2011 Council Minutesi • • MINUTES OF THE_ ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. ROLL CALL The Orono City Council met on the above - mentioned date with the following members present: Mayor Lili Tod McMillan, Council Members Cynthia Bremer, Doug Franchot, Aaron Printup, and David Rahn. Representing Staff were City Administrator Jessica Loftus, City Attorney Soren Mattick, Finance Director Ron Olson, City Clerk Lin Vee, Assistant Administrator of Long -Term Strategic Planning Mike Gaffron, Planning Coordinator Melanie Curtis, City Engineer Tom Kellogg, and Recorder Jackie Young. Mayor McMillan called the meeting to order at 7:00 p.m., followed by the Pledge of Allegiance. CONSENT AGENDA Item Nos. 9, 12, and 13 were added to the Consent Agenda. Bremer moved, Rahn seconded, to approve the Consent Agenda as submitted. VOTE: Ayes 5, Nays 0. APPROVAL OF MINUTES *2. COUNCIL WORK SESSION OF APRIL 11, 2011 Bremer moved, Rahn seconded, to approve the minutes of the Orono Council Work Session of April 11, 2011, as submitted. VOTE: Ayes 5, Nays 0. *3. REGULAR COUNCIL MEETING OF APRIL 11, 2011 Bremer moved, Rahn seconded, to approve the minutes of the Orono City Council meeting of April 11, 2011, as submitted. VOTE: Ayes 5, Nays 0. PRESENTATION 4. THREE RIVERS PARK DISTRICT - DAKOTA RAIL TRAIL PARKING Boe Carlson, Three Rivers Park District, addressed the City Council on the Dakota Rail Regional trail, its current levels of use and existing support facilities, and the possibilities and challenges for developing parking opportunities for trail users. Carlson noted he has been involved in this project since its beginning stages. The trail corridor is owned by the Hennepin County Regional Railroad Authority, which owns the right -of -way from downtown Wayzata all the way out to Carver County. It was a joint purchase done with Carver County, Hennepin County, and McLeod County. Three Rivers Park District negotiated essentially a use arrangement with the Railroad Authority that it can be operated as a regional trail for a period of approximately 20 years. That arrangement essentially allows the Three Rivers Park District to use 16 feet of the corridor right -of- way. Some of the right -of -way was sold off to adjacent property owners and in some areas there is only a Page 1 of 25 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. - • (4. . THREE RIVERS PARK DISTRICT -DAKOTA RAIL TRAIL PARKING, Continued) 12 foot right -of -way. The main focus was development of that 13 mile trail corridor from downtown Wayzata out to St. Bonifacious. In 2006 a master plan was developed, which recognized that there are property limitations. Three Rivers solicited input from each of the communities along the trail to help identify where some of the trail amenities should be located. Amenities include such thing as bathrooms, signage, water fountains, and kiosks. The design task force also identified that there should be some parking provided as part of the trail and recommended that up to six parking spaces in each community should be provided. The task force also identified areas where they may be able to develop some new parking on available city property near the trail. In 2006, when the project was commenced, it was felt the trail would be popular and it has, in fact, surpassed those estimates. In 2010, which is really the first full season of operation, it is estimated that there were a total of 300,090 visits to the trail. During the 2010 season, extensive user surveys were conducted to find out how people were utilizing the trails. The primary activity on the trail is biking, followed by walking, skating, and skiing. Of the people that are accessing the Dakota Trail, approximately 46 percent are driving to the trail, parking, and then utilizing the trail as part of their recreational experience. They also arrive in a variety of other methods such as by foot, in -line skates, and bikes. The majority of the users are coming from the Cities of Mound, Minnetrista, St. Bonifacious, Orono, Spring Park, Wayzata, and Minnetonka Beach. There are also a small number of people that are from greater Minnesota, out of state, and other metro cities. The majority of the people traverse the trail from Minnetrista to Mound, followed by Mound to Spring Park, Minnetonka Beach, and then up to Wayzata. The least used section is from St. Bonifacious to Minnetrista. Carlson indicated that one of the changes that will occur in the coming years is a pedestrian bridge that will travel over Highway 7, along with a secondary bridge near Highway 92, which will connect to the portion of the corridor that is located in Carver County. The trail in Carver County will be opening up this May. Three Rivers is anticipating that there will be a different disbursement of the users after those bridges are completed. Carlson illustrated the locations of the different kiosks and current parking. There are six parking stalls within the City of Wayzata that are specifically designated for regional trail use only. In addition to the designated stalls, Wayzata also sells parking passes to a nearby parking lot. The City of Orono does not have any identified parking in the eastern portion of the city and the City of Minnetonka Beach has indicated they cannot support any parking within their community. The Navarre area has no recognized or identified areas of parking but some people are parking in the business area. The City of Spring Park has some parking located near their city hall and Three Rivers is looking to expand that parking. Users of the trail also utilize the park- and -ride area located in Mound. In addition, Three Rivers is working with Mound to transfer an old railroad depot building and convert it into a bathroom. That facility will be open this season and will also have water and potentially some vending machines. As you travel further to the west, there is some parking in the Gale Woods Park area, which offers some • parking next to the trail. A little further west to the south side of County Road 110, Three Rivers has some unidentified parking available at the ball field parking lot. There is a small six car parking lot located in St. Bonifacious and the City is interested in expanding that area. With the development of the Page 2 of 25 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 • 7:00 o'clock p.m. (4. THREE RIVERS PARK DISTRICT - DAKOTA RAIL`TRAIL PARKING, Continued) bridge over Highway 7, the City of St. Bonifacious is looking to add some parking in that area. There is also the potential for a park- and -ride location in St. Bonifacious on Highway 7. Carlson indicated Three Rivers has looked at different areas in Orono to develop parking but the number of areas is limited. Orono Orchard Road is one area that is being looked at but there are sight line issues on that road: Carlson indicated they have also seen in some cases that people are utilizing the Crystal Bay Post Office parking lot. There is not a lot of available space in this area. There is a neighborhood area close by which will make it difficult to introduce additional parking. There is no additional parking from the Crystal Bay area to Minnetonka Beach and County Road 19, which is approximately four miles. Navarre has been an appealing location given its businesses. The challenge is how to connect the business district with the trail since there is some distance between the two areas. The Navarre Fire Station is also being considered for parking and there may be some opportunity to offer a connection to the trail at that location. Extra caution will need to be taken to ensure that trail use does not impede fire station use. Another location that has been talked about since day one is the Hennepin County public works facility located in Orono adjacent to Spring Park. People have typically been parking in this area. One of the challenges in this area is the terrain and providing parking that will not impede boat trailer parking. That • area may still be a possibility but there is currently a problem with the traffic flow through that area. Spring Park also has some denser population areas. Three Rivers has looked at a number of parking options but they are fairly limited in this area. The Spring Park City Hall parking lot offers some parking and options for expanding the number of stalls at that site are being considered. One of the disadvantages to the city hall is that the drivers have to be fairly familiar with Spring Park in order to find the city hall parking lot. Rahn commented he would look at which areas are most conducive and that parking near the business districts would be the most advantageous for everybody. Rahn asked whether a sidewalk would be sufficient from the Navarre business district to the trail. Carlson stated there are a lot of opportunities that can be looked at but that they would like to find the best solutions for each individual community. If parking is provided along County Road 19, Hennepin County would need to be brought in but they could look at adding some striping on the shoulders and perhaps a sidewalk along the side of the road. Carlson stated they would not want pedestrians and bicycle users utilizing the same surface and they would have to combine the striping and the sidewalk. The challenge would be to determine the flow of the traffic and Three Rivers would need Hennepin County's assistance on that aspect. Bremer noted the width of the road in that area is not ideal and that it would be a huge expense to widen the road. Bremer stated in her opinion County Road 19 is an unsafe location at the present time and that the police department has done a good job of reminding people that the speed limit in that area is 35 miles an hour. • Bremer indicated she did look at the topography along the trail this weekend and that it is almost impossible to continue a sidewalk due to the steep topography. Three Rivers would need to look at perhaps utilizing part of the roadway, which is not the best option given its narrowness. Bremer stated Page 3 of 25 MINUTES OF THE ORONO CITY COUNCIL MEETING v Monday, April 25, 2011 - 7:00 o'clock p.m. • (4. THREE RIVERS PARK DISTRICT - DAKOTA RAIL TRAIL PARKING, Continued) improving County Road 19 is not a very high item on the list for Hennepin County given its current demand for roads and that widening of the-road likely will not happen in the foreseeable future. McMillan commented that biking on County Road 19 is not a good idea even with striping and a sidewalk. McMillan stated in her opinion there would be a fair.amount of bike traffic on the sidewalk, which would also need to be considered. Carlson stated the user patterns would need to be examined closely and that an on -street bike lane might be fine for avid bikers but not for family recreational bikers. If the City Council is interested in that option, Three Rivers would need to do a further analysis of that area. McMillan commented the City would also have to have a discussion with the business and residential owners to see whether they are interested in a connection to the trail. McMillan stated Blaine Avenue looks to be a natural connection but that she is not sure what the Navarre community would like and that she would like to get more input from the community on that issue. McMillan asked how the number of 300,090 was determined. Carlson indicated Three Rivers performs counts throughout the entire year except for winter. Their research staff goes out about 25 times throughout the year for two hour spans at various times of the day • and they attempt to get a snapshot of the number of users on the trail within that two hour window. They then use a formula that was arrived at by Hennepin County to come to an approximate number. Based on that, the research staff looks at the demographic data of where the users are coming from. Bremer commented she has a concern with using the city lot,due to the fact there would not be enough parking left for official city use. In addition, the city lot is currently not striped appropriately and some of the land is owned by private land owners, which would reduce the amount of available land. Bremer expressed a concern that if something is not done, the situation would only get worse and that in her view the trail will become more and more popular as time goes on. Carlson commented typically for the first couple of years after a trail is developed there is a lot of interest and then it tends to plateau off. One of the things they have seen with the opening of the Dakota Trail is a decline in the number of users on some of the other trails to the south. The result has been a more generalized spreading out of the existing users. Carlson stated he anticipates the Luce Line Trail has also seen a slight decline since the Dakota Trail opened. One of the issues that will be encountered by a trail that is highly popular is that you will see less people use it if it becomes too heavily populated. Bernier asked if the situation with bikers crossing in front of traffic has improved. Carlson indicated they have attempted to get the message out to bikers to exercise better caution when crossing roadways and that they must stop for oncoming traffic. Printup stated he would like to see more discussion regarding the sidewalk connecting Livingston up to the trail. Printup commented the Shorewood Trail up to Navarre would help complete the trail • connection. Printup noted he was not part of the discussion regarding the hillside topography, but that working with Hennepin County would be a good idea. Page 4 of 25 • MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7 :00 o'clock p.m. (4. THREE RIVERS PARKDISTRICT - DAKOTA RAIL TRAIL PARKING, Continued) Printup stated as it relates to this trail, he is in agreement with Council Member Rahn that parking near the commercial area would offer great opportunity for the Navarre business owners. Printup noted that the Hennepin County storage lot for their snow plows is seasonal and that may also be an option. Franchot commented the data that has been gathered and presented tonight is interesting and confirms that this trail gets a lot of use. Franchot stated he is saddened, however, that the conversation has not gone further to finding solutions. Franchot noted the Council had this "exact same description and the exact same set of problems presented to them approximately two years ago but just the numbers have been added. Franchot stated he would hope in the near future the City decides whether there actually is a problem and where it is and then start to move forward to solve the problem or admit that nothing can be changed from what currently exists. Franchot commented he is optimistic that there are solutions and that in his opinion Brown Road and North Shore Drive is a location that could continue to be discussed. He added that the Navarre area has been frustrating with equally positive and negative reasons for trail parking locations. Franchot recommended the City start nailing down what it can do and needs to do. McMillan commented it is good to have Three Rivers check in periodically with the City and to obtain the comments of the residents along the trail. • Franchot stated his point is that if there are problems out there, the City is not moving forward at a very rapid pace. . McMillan opened the meeting up for public comment at 7:52 p.m. Rick Meyers, 2195 Bayview Place, indicated the area he resides in has become an ad hoc parking area for the trail and that it is currently not being maintained by anybody. Meyers indicated he has filled a number of potholes personally and picked up garbage. Meyers indicated he did attempt to address some of these issues with the Railroad Authority and he was told to talk to Three Rivers, who then told him to talk to the Railroad Authority, who then told him to talk to the city. Meyers stated if Three Rivers is going to use that spot for parking, they need to do something to level the area out because there is currently a drainage ditch there. In addition, the kids go out onto County Road 19 to access the trail, which is a bad situation. There is also not enough room for vehicles to pull all the way in to park, which also causes problems. Meyers stated the other issue is the sidewalk down County Road 19, which is a good idea. Meyers noted the City did receive some funds to construct two blocks of the sidewalk down by the park but it was never finished. Meyers stated in his view the sidewalk could be finished even with the poor topography but that it would cost some money. The businesses in Navarre are generally against parking for the trail in the city -owned lot since it would take away from their customer parking. Meyers pointed out a section of land that the City could develop on the overhead display. The City would need to spend the money to fix the terrain and put in a level parking lot but that would provide parking for the trail, extra parking for an emergency or a big event, and possibly a landing for a helicopter. Meyers commented the problem with using the fire station parking lot is that there is a big fence and a hill that goes straight up. It currently is also being used for overflow boat trailer parking and it is crowded in the Page 5 of 25 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. (4. THREE RIVERS PARK DISTRICT - DAKOTA RAIL TRAIL PARKING, Continued) summer. Meyers stated the City will need to provide more than six parking spots given the number of users. Bremer asked how many spots would fit in that area. Meyers stated in his opinion there are three to five acres available in that area, which would easily provide 50 to 100 parking spaces. Meyers encouraged the City Council and Three Rivers to think on a bigger scale rather than six or fewer. Bremer commented if the parking lot is filled up, people will still park near his house. Meyers noted Minnetonka Beach has erected signage saying no trail parking and that the same thing could be done in Orono if necessary. Orono has done a tremendous amount of work to help make this trail come to fruition and that the residents of Orono should not be punished with people parking in residential areas. Bremer noted the area where Spring Park starts and Orono ends was also discussed as an option for parking. • Meyers stated there is a road right -of -way that runs from Spring Park to that flat area, which would keep them off the city streets and out of the municipal parking lots. Meyers stated there also are not enough . trash containers and doggie bag dispensers along the trail. Terry Morse, 2080 Spates Avenue, indicated he has resided in this area for approximately 31 years and that he is very supportive of the trail. The trail has changed their environment because of the traffic. Within one block there are two major intersections of cars and trail, which are located at Spates and County Road 51. They also have the parking situation that has been created because of the trail. The intersections are getting better but there are still some concerns. The field used for soccer has also been getting busier and busier. Unless no parking signs are erected in their neighborhood, trail users will continue to park there. Morse suggested looking at the area north of the basketball court, which would help direct the traffic from the problem areas. Morse indicated he had also heard from last year's discussions that they were looking at Railroad Avenue: If that is the case, a substantial amount of grading would be needed to create a level parking area. Morse reiterated that the Council should look at the area north of the basketball court. McMillan noted that Crystal Bay Park is considered a neighborhood park and is not designed for a substantial number of people. McMillan indicated one of her concerns with trying to add more parking to an area like Crystal Bay is that it is a residential area and not designed to handle people coming in from outside the immediate area. McMillan stated in her view the trail parking belongs more m commercial areas so that people who come in from the outside would have access to other facilities. She added that if you announce there is trail parking available in the Crystal Bay area for the greater community, the neighbors will have a number of people coming into their neighborhood and that needs to be carefully considered. Sherry Evans, 1380 Railroad Avenue, asked why parking was not considered when the trail was being • initially discussed. A significant number of residents of Railroad Avenue are here tonight because they Page 6 of 25 • MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. (4. THREE RIVERS PARKDISTRICT - DAKOTA RAIL TRAIL PARKING, Continued) . are opposed to parking in that area. They have had people urinate along the road and leave garbage. Evans indicated there is not enough parking down at the marina and that they park in their neighborhood and then walk down to their boats. • Crystal Bay is an old neighborhood. The trail is located very close to their houses and is very beautiful, but the residents do not need a parking lot in this area. Ralph Kempf, 3675 Togo Road, indicated he will be giving a short presentation on Navarre following this item and that some of what he will be discussing is applicable to this-item. Kempf encouraged the residents to remain for his presentation. Kempf suggested the Three Rivers Park District consider requiring little bells on the handlebars of bicycles to help notify anyone walking on the trail that they are approaching. Carlson indicated Three Rivers has been giving away bells over the past year and that he would be happy to drop some off at city hall. - Deborah Lewis, 2350 Abingdon Way, stated the trail was built and they knew everyone was going to come but there is no parking available. 'Lewis stated in her view Wayzata does not get that much business from trail users. People, when they see the trail from the road, are going to park in an area where they can easily access the trail. Lewis commented she is in agreement that no parking signs should be erected in . the residential areas. Mike Lasher, 1360 Railroad Avenue, noted that Boe Carlson referred to this as a destination trail. Lasher stated he routinely sees bicycle clubs that have 20 to 30 bicyclists in a group that are blowing stop signs and speeding on Spates and County Road 51. Lasher stated in his opinion someone will get killed. Last May someone got hit in front of his house and he fortunately only broke his collar bone. Lasher stated the Council needs to address safety first and then the parking. They could erect speed bumps or zigzags to help slow the bicyclists down. The parents also are not setting a good example by not stopping at the stop signs. Lasher stated he also has a concern for his family about putting parking anywhere in a residential area. The City needs to consider safety on and off the trail when they designate areas for parking and benches. Lasher commented he is not Three Rivers' garbage collector but he collects a substantial amount of garbage from people who utilize the trail. Lasher noted he also has parking from the marina. One side of the street says resident parking only, but then they park on the other side of the street. McMillan closed the public comment portion at 8:15 p.m. McMillan thanked the residents for providing their comments on the trail and the parking situation. McMillan noted the trail was started in 2009 and that it is still a work in progress. McMillan stated the City will need to keep track of the parking within the City and that they should check in with the residents of Navarre on whether they are interested in trail parking in the business or residential areas. McMillan commented the clear impression she has gotten tonight is that people are not interested in adding to the parking, especially in the Crystal Bay area. Page 7 of 25 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. (4. THREE RIVERS PARK DISTRICT - DAKOTA RAIL TRAIL PARKING, Continued) Franchot commented that of course the residents have concerns but that it is premature to say that the community as a whole is against adding parking. Franchot stated it is great that the City Council has had this input from the residents but that it does not preclude the City from looking into it further. McMillan stated she wanted the residents to know right away that the Council's intention tonight is not to figure out the parking situation. McMillan stated the City needs to keep track of what is going on with the current parking situation but that adding a new parking facility at this time is not the City's intention. McMillan indicated she wanted the residents to know that the Council has heard their concerns and that perhaps there can be a consensus reached among the City Council members on how best to proceed forward. Franchot stated that was his point earlier and that the City Council needs to figure out what the problems are and in what direction the City is ready to proceed. Franchot stated in his view it is premature to declare that there will be no parking in that area. L] McMillan stated the City is aware there are parking issues there but that she would like the residents to know that she is not speaking about adding new parking facilities. McMillan commented she is concerned about people getting anxious that the City is going to create a new parking facility in Crystal Bay that is not there presently. If the City is going to pursue that path, the residents need to be aware of that before any decisions are made. • Franchot indicated he is in agreement with that and that the City needs to determine what kind of problems exist, look at the options, and then try to arrive at a solution. Franchot commented it is normal that the neighbors have concerns but that there needs to be a thorough discussion and examination of the options. Bremer stated in her view the City should look at a more commercial location for parking and that she would be in favor of looking at the fire station parking lot even though the topography is not great at that site. The City needs to know what the costs would be and who is going to pay for it. Bremer commented she would also like the city lot to be looked at and that it would be helpful if the City obtained some feedback from the business owners on that option. McMillan commented that the residents will likely continue to see cars pulling off on Orono Orchard Road, as well as other local roads, and that there needs to be better police enforcement. McMillan stated in her view that is a separate issue from creating a new parking facility. Printup commented that this is the beginning of the conversation and that no decisions will be made without a thorough discussion and review of the issues. One of the options is that no new parking will be added, but the City should look at finding the most appropriate place for trail parking. 5. RALPH KEMPF - NAVARRE AREA PLANNING Ralph Kempf, 3675 Togo Road, stated this evening he would like to briefly recap for the City Council the Navarre planning history to date and speak to priorities for Navarre in light of today's challenges and opportunities. Over the years there have been three major forays into planning for Navarre. The first i occurred from 1989 to 1990, then again in 2003, and once again in 2005 -2006. - Page 8 of 25 • MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. (5. RALPHKEMPF - NAVARRE AREA PLANNING, Continued) The 1989 -1990 planning efforts established what Navarre did not want to become. Phase one of a master plan proposed a dramatic redevelopment and land use similar to Mound's redevelopment. This plan, which is one of the alternative land uses that the City came up with, would have created new streets, would have required replacing existing buildings, and would have resulted in higher rents and franchised businesses replacing the local businesses. One of the issues identified at that time was that small parcels limit expansion and redevelopment, which was a major problem that was identified in Navarre at that time. Small parcels actually since that time have become a core value for Navarre. Navarre decided that it wanted to retain small, locally owned businesses that serve the local needs and a business district that allows for these small enterprises over larger franchise businesses that dominate the suburban landscape. There were many other issues identified at that time, such as lack of safe pedestrian crossings which divided the community and made it difficult to access different sections. This obsefvation applied all the way down the length of CR51 and CR19 and at Dunwoody and Casco Point Road as well. In 2000, the Orono Comprehensive Plan update acknowledged the major commercial center of Orono will continue to be the crossroad center of Navarre.-The scale and type of retail uses in a pedestrian friendly environment is the most important development parameter for the Navarre commercial area. • In March 2003, as the Dakota Rail to Trail project approached approval, the City hosted a town hall meeting. The first part of the meeting was seeking citizen and resident input on what needs to be improved in Navarre. Responses were wide ranging and included a need for trees and for Navarre to define itself, a need for continuity and to give a sense of passing through a special place. Of all the people who got up and spoke during the meeting, more than half of them raised concerns with traffic and pedestrian safety. The minutes of the March 13th meeting on Page 6 reflect that Mr. Omley questioned whether there was a way to construct a sidewalk along CR19. Mayor White at that time responded that the City would like to get a sidewalk from Navarre to the Dakota Rail Trail. Greg Gappa, who was then the public service director, stated that the City hopes to complete sidewalk construction along the first block of Shadywood Road this year using some state aid funding. He indicated that attempts will be made to complete consecutive blocks as resources become available. Kempf stated to his knowledge that is the sidewalk that is now in place running north along the Navarre playground down to Livingston Avenue. Then in 2005 -2006, Orono placed a moratorium on Navarre development and hosted a second town hall meeting. The concept plans coming out of this process retained the footprints of Navarre businesses and the current lots but enhanced the CR15 corridor, expanded the sidewalks, enlarged safe haven pedestrian islands at the intersection, strengthened the visual impact of crosswalks, added trees, bushes and pedestrian seating and meetings areas to acknowledge to traffic in no uncertain terms that Navarre is a pedestrian zone. Kempf stated when he needs to visit Navarre and go to the hardware and then the grocery store, he will take Highway 19 from the north, park in front of the hardware store. After he comes out of the hardware store and goes to Lunds, he will get back in his car, do a U -turn, drive 200 feet into the Lunds parking lot, park there and do his business, and then drive away. Kempf stated even on the nicest of days that is the way he will do it because no one in their right mind would navigate that street. Page 9 of 25 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. (5. RALPH KEMPF - NAVARRE AREA PLANNING, Continued) Kempf commented that this plan makes Navarre a special place. When you enter Navarre from the east, there are special sidewalks and trees. The trees go along CR15 and continue down to the western edge of the city. Kempf stated in his view those are effective things to do to calm the traffic, which will result in pedestrian flow increasing dramatically. Kempf noted given today's economy, now is not the time for such grand plans. 2011 is the time to pursue the most critical priorities and those that are the most attainable. Existing sidewalks along County Road 15 from the west edge of the city to County Road 19 are almost eight feet wide or more. Even though the sidewalks are not particularly beautiful or in good condition, they are generally safe and serviceable for the time being. Kempf commented that trees and greenery should certainly be a part of any parcel being redeveloped but is probably in no one's budget today. Establishing safe crosswalks as well as safe passage for bikes and pedestrians from the Dakota Rail Trail to Navarre seems worthy of more time and attention. Kempf indicated he does not know the details, but that he seems to recall that the City has had difficulties with the county on crosswalks. Currently the crosswalk running across CR15 between the bus stop and the city parking lot where people park to hop on the bus, go to their job in Minneapolis and come back and do the same thing in reserve, is marked with a stick figure on a sign. The crosswalk is painted with strips in the midst of all kinds of other white paint. There are right turn and left turn areas and it is a mess • of white paint to the point that you ignore the markings. They also had brightly colored pylons in that area at one time. Kempf stated one day he decided to stand by the pylons and stood there as cars flew by the pylons and him. Kempf stated the pylons were rubber and that he ended up taking one of the pylons and waved it repeatedly but the cars kept flying by. Kempf stated his point is'that what is there now is not effective and that the pylons are no longer there. Kempf stated at the intersection of CR19 and CR51, the walkway stripping is also gone. Kempf stated as it relates to the sidewalk connection to the trail, the bottom of the screen depicts the Navarre playground. Kempf stated in his view there may be adequate space to construct a sidewalk. When you are looking at the pavement of CR19, there is a white line down the middle of that street and that is probably where sand or salt has accumulated. On either side of that white line is the traffic lane. There is another white area that is still pavement but just looks white. At the lot to the north end of those four lots, you will see there is a building that encroaches on the property lines toward CR19. That building has since been razed. In the right -of -way there may be adequate space to construct a retaining wall and a sidewalk. Kempf stated in his view it would make sense to explore the option of putting in a trail in that area before that lot gets redeveloped. Kempf noted that Three Rivers Park District provided information on parking proposals earlier tonight. Kempf proposed that the City consider offering Three Rivers six spaces at the north side of the city lot for daylight parking from March through October for the exclusive use of trail users. In return, the City should ask Three Rivers for their assistance in completing the sidewalk. For Three Rivers, this would make the trail more accessible and solve the parking issue. It would also invite trail users to the shops in Navarre. The playground might be a further draw to get people to shop in Navarre. Information on the shops could be provided at the kiosks. Kempf proposed that the City allow for signage in the city parking lot depicting all the shops of the area and their locations. If the business community recognizes the efforts of the City on their behalf, the City Page 10 of 25 • MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. (S. RALPH KEMPF - NAVARRE AREA PLANNING, Continued) will have successfully re- engaged the business owners, which is the first step in successful future planning efforts. Finally, if 'the Orono City Council approved a signage plan that included all of the businesses, it would require that the business owners talk to each other to figure out how to create and finance a sign that works for all. There is no business community without dialogue; and without a business community, there is very little hope of community planning. If these proposals were implemented, the City could possibly get some help from Three Rivers in financing a much needed project and the City will have taken a proactive position in meeting the stated goals of the 2005 -2006 Navarre planning guide, which is to encourage a functional, thriving business district. Kempf stated in his view a connection between the Dakota Rail Trail and the shops of Navarre will produce a recognizable increase in business. Families will stop long enough in Navarre to visit the various businesses and possibly make purchases. If these efforts are successful, the business district of Navarre will recognize the City as a potential partner in promoting a viable business community. Kellogg stated back in 2002 to 2003, they did look at the piece of land between Livingston and the trail for construction of a sidewalk. Some of the problems they ran into were the grade elevation differences. At that time they did talk to the property owners that would have been affected. • Kellogg indicated another problem they encountered was the need for removal of significant trees on top of the slopes in order to construct the retaining wall. They looked at a modular type retaining wall and a sheet pile retaining wall, but both of those walls would have required them to go down into the soil so far that sanitary water and sewer would have been impacted. Kellogg stated it appeared at the time the only realistic option would be to construct a wall that would not impact those services, but that a retaining wall that high up would need to have reinforcement that goes back into the soil behind it, which necessitates the removal of trees. Kellogg noted his office has done a fair amount of preliminary work on that sidewalk already. Bremer asked what the height of the wall would have been. Kellogg indicated based on the cross - sections, the maximum height of the wall would have been seven feet. There is one fairly significant stretch where the wall would have been about six feet. Bremer asked what would be the width of the sidewalk. Kellogg indicated the width of the sidewalk and curb would have been seven feet. The work did fit into the right -of -way but would have required some easements. Bremer asked whether the wall was priced out. Kellogg indicated they did not price it out at that time since a final wall design was not determined. Kellogg stated to his recollection the property owners were somewhat interested in the project. Kempf commented it is a busy street and the majority of the current screening is seasonal. Kempf recommended a row of arborvitae be included if the sidewalk and retaining wall is constructed. Page 11 of 25 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. (S. RALPH KEMPF - NAVARRE AREA PLANNING, Continued) Kellogg'indicated they also did some soil borings so a good deal of the preliminary work has been done. McMillan opened the meeting for public comment at 8:52 p.m. Rick Meyers, 2195 Bayview Place, stated a good example of a block wall is over by Tonka Bay and another one is along Highway 101, which also has some nice fencing located on top of it. Penny Saiki, 2874 Casco Point Road, asked how the bike trail would connect on the narrow road. Saiki . asked how the two trails would connect on County Road 19. Carlson noted Three Rivers Park District does not have a plan for a trail connection between the Dakota Trail and another trail'at this point. McMillan commented the fishing pier on County Road 19 was part of a separate feasibility study that was done by Hennepin County. • Loftus stated to her knowledge the study was done by Hennepin County Transit and it was determined the trail project was not feasible until the road was redone. The costs to construct the trail were found to be rather high unless it was done in conjunction with the reconstruction of the road. Loftus indicated the trail would need to be located pretty close to the existing road and in the places that are near the pier a boardwalk would need to be constructed. • McMillan noted there is no near term plan to complete the County Road 19 trail. Bremer stated it was her understanding it was slated for completion in 2030 or thereabouts. The County actually designed a number of different ways to do the project but the end result was that it was too expensive and could not be done until 2030. Bremer commented it sounds like there is a lot of support for a sidewalk in that area but that she is not sure how that would limit their ability in the future to construct a trail along County Road 19. (A recess was taken from 8:58 p.m. to 9:07 p.m.) PLANNING COMMISSION COMMENTS - JOHN THIESSE, REPRESENTATIVE Thiesse stated he had nothing to report but would be available for questions. McMillan noted there is a hardcover open house coming up on May 4"' at 5:30 p.m. Curtis indicated it would be an overview of the work performed by the Planning Commission and City Council. The open house will be from 5:30 to 7:00 p.m. and will give the public an opportunity to provide input and volunteer for the task force. A representative from the DNR and the Minnehaha Creek Watershed District will be available at the open house. McMillan asked whether a notice has been posted for the open house. Curtis stated they can post a notice on the City's web site and that the local newspaper has also done a write -up on the open house. Page 12 of 25 • MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. PUBLIC COMMENTS Dennis Walsh, 1354 Rest Point Circle, thanked Aaron Printup for bringing some fiscal sanity to the City Council. Walsh commented that Printup, being the top vote getter in the last election, vindicated his stance on fiscal responsibility and that Mayor McMillan also brings with her fiscal responsibility. Walsh thanked David Rahn for indicating that no budget item is too small to look at. Walsh commented that those two council members and the mayor are a good team and will bring some foresight to the Council. Walsh thanked Mayor McMillan for bringing in transparency to the City Council meetings by televising the meetings. The old council did not want transparency and they did not want the residents to know what was going on. Hopefully this new council will change those attitudes. Walsh commented that when you observe a council member and the city attorney eating lunch together one day, it makes you wonder what is going on behind the scenes. Franchot stated as the council member who was having lunch with the city attorney, both on their own nickel, there was nothing unusual going on. Franchot commented he is aware of Mr. Walsh's opinions about the budget, but that he would remind the Council they are simply opinions and that a lot of the things Mr. Walsh is assuming are not true. Mattick noted they did have lunch together and that it is good for the public to know that he routinely receives phone calls from the council members and the mayor and that he does occasionally meet with • city council members. Mattick noted there is an attorney - client privilege that exists between himself and the council on certain matters and that not all of his conversations will be held in an open forum. PLANNING DEPARTMENT REPORT 6. #09 -3411 DAVID FOX, 1095 FERNDALE ROAD WEST - VARIANCE EXTENSION - RESOLUTION NO. 6038 McMillan noted that typically you have 60 days to file for an extension prior to expiration of a variance. The variance expired in October of 2010 and it is now six months later. McMillan stated she would like to know how this should be handled from a legal point of view. Mattick commented that the 60 day provision is a relatively new ordinance provision and that it is intended to avoid an applicant coming in after their variance has expired and getting a full year renewal. The function of a variance or a CUP expiring is not something that is required by state statute or case law and it is something that has been implemented by Orono. The Council has codified that notion and said that if you apply within a year of the variance expiring, staff has the right to .grant it. The language does not say that after that year it is automatically expired and you cannot do anything with it. After the 60 days have expired, Staff loses the ability to grant that extension. If Staff denies the extension, then the applicant can appeal it to the City Council. The City Council does have the option to deny the extension. Mattick stated the City Council does have the option not to hear these sorts of appeals and not grant the extension if the application is past the 60 days. Mattick stated in his opinion the ordinance was put in place to try and streamline the extensions and to avoid bringing them before the Council. Mattick stated . in his opinion this is an extension that would have been granted by the Council without much fuss at all and it is truly a timing issue. Mattick noted they have not encountered this situation before where someone misses a timeline. Page 13 of 25 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. • (6. #09 -3411 DAVID FOX, 1095 FERNDALE ROAD WEST, Continued) McMillan commented she has a concern with granting the extension and setting a precedent. McMillan commented the last thing she wants to do is not grant an extension for a variance given how difficult it is to grant a variance now following the Supreme Court decision. McMillan noted the request is six months past the expiration date. Bremer noted the extension would only be good for six months. Rahn moved, Printup seconded, to adopt RESOLUTION NO. 6038, a Resolution Granting an Extension of the Variances for a Conditional Use Permit Established Per Resolution No. 5872, for the property located at 1095 Ferndale Road West. VOTE: Ayes 4, Nays 1, McMillan Opposed. *7. #10 -3458 JUDSON DAYTON, 825 OLD CRYSTAL BAY ROAD SOUTH - PRELIMINARY PLAT - EXTENSION - RESOLUTION NO. 6039 Bremer moved, Rahn seconded, to adopt RESOLUTION NO. 6039, a Resolution Granting a One - Year Extension to the Effective Period of Preliminary Plat Approval Established Per Resolution No. 5935, for the property located at 825 Old Crystal Bay Road South. VOTE: Ayes 5, Nays 0. 8. #11 -3502 PUBLIC HEARING - VOLUNTEERS OF AMERICA NATIONAL SERVICES AKA VOA ORONO WOODS SENIOR LIVING, 2040 WAYZATA BOULEVARD • WEST - AMEND PUD NO. 2B AGREEMENT REGARDING SIGNAGE Curtis stated in January of 2011 the Volunteers of America made an application to re -face existing signage and install a new ground sign along Wayzata Boulevard and a new wall sign under the tower clock at the Orono Woods Senior Living property. In 2001, the property was rezoned from RR -1B to RPUD and a 62 -unit senior living facility was constructed. The signage allowed for the site is governed by the PUD agreement and includes a monument sign at each entrance, traffic control signs, but no wall signage was allowed. Only refacing of existing signage is permitted without amending the agreement. Staff therefore denied portions of VOA's sign permit application regarding new signs and provided options to resolve their need for additional signage. In March, VOA made an application to amend the existing PUD No. 2B Agreement to allow one new ground/monument sign and install a sign on the building. This change in allowed signage is not a variance as the site is a PUD. VOA is requesting to reface the existing eastern (Brown Road) entrance monument sign, remove the existing western entrance monument sign, and replace it with a new, 48- square foot monument sign along Wayzata Boulevard, and install a 33- square foot wall sign under the clock. McMillan opened the public hearing at 9:25 p.m. Mark Raiche, Volunteers of America, stated he would be available to answer any questions of the Council or public. There were no other public comments regarding this application. Page 14 of 25 • MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. (8. #11 -3502 PUBLIC HEARING - VOLUNTEERS OF AMERICA NATIONAL SERVICES AKA VOA ORONO WOODS SENIOR LIVING, 2040_ WAYZATA BOULEVARD WEST, Continue McMillan closed the public hearing at 9:25 p.m. McMillan commented the signage looks great and asked if the signage was originally prohibited on the building. Curtis indicated it was not prohibited. Gaffron stated signage on the clock tower was never proposed. Bremer commented she is fine with the request. Raiche indicated they are willing to work with Staff on the design of the signage and the landscaping. McMillan asked whether the City Council is fine with the verbiage on the sign, such as the senior living portion of the language. McMillan questioned whether the language on the sign would be considered advertising. • Franchot and Rahn indicated they do not have a problem with the language. Debra Perry, Volunteers of America, stated they have registered Orono Woods Senior Living as a title. Bremer moved, Franchot seconded, Application #11 -3502, Volunteers of America National Services aka Orono Woods Senior Living, 2040 Wayzata Boulevard West, to direct Staff to draft an amendment to PUD No. 2B Agreement Regarding Signage, subject to the additional staff suggestion of complying with the monument regulation. VOTE: Ayes 5, Nays 0. *9. JOINT USE DOCK LICENSE RENEWALS - RESOLUTION NOS. 6040 - 6048 Bremer moved, Rahn seconded, to adopt the following resolutions to issue Joint Use Dock Licenses for the Period of January 1, 2009, to December 31, 2011: Resolution No. 6040 — Bohns Point Lane Homeowners Resolution No. 6041— Forest Arms Country•Club Addition Homeowners Association, Inc. Resolution No. 6042 — Foxhill Homeowners Association Resolution No. 6043 — Kelly Cove Homeowners Association of Orono Resolution No. 6044 — Minnetonka Power Squadron Resolution No. 6045 — Pheasant Lawn Homeowners Association Resolution No. 6046 — Owners of Property Located at 460, 500 and 550 Tonkawa Road Resolution No. 6047 — Victoria Estates Homeowners Association Resolution No. 6048 — Walter's Port Maintenance & Improvement Association VOTE: Ayes 5, Nays 0. rI Page 15 of 25 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. CITY ENGINEER'S REPORT Kellogg stated he had a conversation with Mr. Barrett of the Forest Arms Homeowners Association. The concern he had was the delta that was forming and the sediment that was being deposited in that area which conflicted with their boats gaining access to the docks. Kellogg indicated he has completed that survey work last Friday and he will be downloading that information into the system and putting a drawing together. He will also be looking at some preliminary cost estimates and will have that information available for the Council in approximately one month. The Council will need to determine whether this is a project that should go forward this year or placed on the C1P. Kellogg provided an update on what the Public Works Department is planning to do for street repairs this year. Don Debaere has put together a memo describing their anticipated work as well as a list of items that are ongoing, such as pothole repairs. The Public Works Department is conducting pothole repair on Willow Drive North, East Long Lake Road, Orono Orchard Road, Fox Street, Watertown Road, Tamarack Drive, Wildhurst Trail, and the Rest Point street system. • The Public Works Department will also be conducting street repairs. Street repairs are where there is stress beneath the bituminous, which will require removing bad material and adding asphalt for streets including Willow Drive North, Hunter Drive, Willow Brook, Watertown Road, Wildhurst Trail and Rest Point Road. Public Works estimates that work will continue until the middle of June. The other work that is currently being done is to re- evaluate the City's Street CIP, which is done annually by Public Works. - • The only other project that is ongoing this year, aside from Old Crystal Bay Road Reconstruction, is that Bonestroo's office is continuing to work with the Metropolitan Council on the Orono Orchard Road project. They currently have a cost sharing agreement in place and are working on a scope of work. Kellogg indicated he hopes to have that to the Council in the near future. MAYOR/COUNCIL REPORT Rahn stated he would like to get some Council input on whether the current signage entering Navarre should be replaced. Rahn stated in his view they look rundown and could look nice again without major reconstruction. Rahn stated he would like to see it accomplished before Memorial Day weekend if at all possible. Rahn stated in his opinion the City needs to maintain some of the items they currently have. McMillan noted Ralph Kempf has also called her attention to a couple of park benches that need repair. Rahn commented that the City needs to maintain what they have to prolong its lifespan. Printup indicated he has talked with Don DeBaere and he had indicated those benches would be fixed along with the slide at the Navarre Park. The slide is currently blocked off to prevent children from using it and the Public Works Department is aware of needed repairs. McMillan noted she attended a Fire Advisory Committee meeting last week and that it was noted the Navarre Fire Station became part of Long Lake's Fire Department in 2007 and there is still not a legal • document that shows the Navarre Fire Station as operating under the Long Lake Fire Department. McMillan stated the'City will need to do a little more work on that agreement and review the history of the operation and ownership of the Navarre station. Long Lake has indicated they would like to have Page 16 of 25 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 • 7:00 o'clock p.m. (MAYORICOUIVCIL REPORT, Continued) something signed between the two cities and are willing to work toward an agreement. McMillan suggested the Council discuss this further at the June work session. Bremer asked if the Mayor has received any comment on the 2007 draft agreement. McMillan commented there is some confusion about the joint ownership issue and that she is unsure who even wrote up the draft agreement. Franchot stated he would agree that this needs to be discussed and that it is long overdue. Franchot commented it would be helpful to understand the joint ownership issue if Staff could provide what the rationale was for that originally. Franchot noted the City of Orono paid to construct the fire station and that Long Lake did not contribute to that cost. Franchot stated the obvious question is what the thought process was about giving half of it to Long Lake, and that he would like an answer to that if at all possible. CITY ADMINISTRATOR'S REPORT 10. YEAR TO DATE GENERAL FUND BUDGET INFORMATION • Olson noted this is the first general fund budget information for the year. On the expenditure side, they like to see those at 25 percent for this time of the year. Olson noted the revenues will not be at 25 percent since the City does not receive the majority of those until later in the year. Olson stated the numbers are partially adjusted, which basically means that they have been reviewed as to whether there are any big items that should be adjusted for the year. The City is only at 7.29 percent for the year for revenues. The main reason for that is the City's tax settlement payment is not received until June and they are the largest percentage of revenue contained in'the City's budget. Approximately $174,000 of revenue comes from the State of Minnesota in the form of various grants and $120,000 of that will not be received until October. In addition, the golf course was not open from January through March so those revenues are currently at zero. Olson pointed out that licenses and permits is over 25 percent of its budgeted revenue amount for the year. January through March is typically the slowest time for building permits but this year they are slightly ahead of what was projected. Olson noted there is not enough data yet for the year to make real conclusions on the majority of the budgeted items. The graph on the overhead depicted 2010 revenues versus 2011 revenues. At the end of the first quarter in 2010, revenues were at approximately 8 percent. This year the City revenues are at 7.29 percent. Olson stated he is estimating at the end of the year revenues will be around 100 percent. As it relates to expenditures, those are at 22.48 percent overall. There are a couple of departments that are slightly over, such as mayor and council at 28 percent. Olson indicated those will end up pretty much at 100 percent by the end of the year. The reason for the higher percentage for that category is the City has • to pay the membership fees at the beginning of the year and it is reflected in this quarter's expenses. Olson noted $60,000 of the mayor /council budget is for the Lake Minnetonka Watershed District. Page 17 of 25 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. (10. YEAR TO DATE GENERAL FUND BUDGET INFORMATION, Continued) The other department that needs to be discussed is law and legal services, which is currently at 28.41 percent of budget. That department is over budget because of some code enforcement issues. This is the first year the City has budgeted for code enforcement issues and that item was under budgeted. The City does have a few code enforcement issues pending and that item will be over budget for the year. The other department over budget is the Public Works Department at 29.3 percent. The Public Works Department is already at 85 percent of their overtime budget for streets given the amount of snowfall this past winter. Olson commented that hopefully the City will not have any more plowable snow this year until November or December. In addition, the increased fuel costs are playing a part in the Public Works department being over budget. Diesel fuel is up over $1.00 a gallon from last year, which may also negatively impact the police department. Olson pointed out the majority of the budget relates to personnel expenses. The police department has some discretionary spending that can possibly be adjusted to help offset that increased cost. Printup asked what would fall under special services and special projects. r� U Olson indicated that would relate to pass - through engineering bills and legal bills. It would also include security provided for special events. The police department bills the applicants for those charges. The police department periodically provides security for Lord Fletchers. • Franchot commented he is not worried that-the City will come in on budget, but that the language referring to the fact that a couple of line items will need to be monitored should be better identified. , Franchot stated the City should figure out how to address those at some point. Olson indicated he was referencing the fuel and the legal fees when he made that notation. Franchot stated at some-point the City will need to address it rather than just monitoring it. 11. APPEAL OF ASSESSMENT FOR UNPAID BLLS - CREEKSIDE IN ORONO Gaffron stated there is a request from the property owner at 115 Creek Ridge Pass regarding unpaid development costs that were certified last fall. Gaffron noted he has provided the City Council with a fairly extensive background on it in his report. Gaffron stated in approximately 2003 the development got started and eventually there were foreclosures and various banks involved. It became apparent after a period of time that Staff needed to do something with the development since there was about $9,000 in unpaid engineering and legal billings that needed to be paid for by the developer. When the City initially looked at this development, it consisted of seven vacant lots with two outlots. One of the outlots encompasses a road, and from a tax perspective it is a K classification, or a commons area, as well as a conservation outlot. Those outlots are normally lots that do not have a tax value and do not get taxed. After some discussion with the City Attorney, Staff chose to divide the unpaid • development costs equally between the seven buildable lots that would normally be taxed. Dean Johnson is the owner of five of the seven lots and Mr. Marceau is the owners of one of the other lots. The parties have expressed a concern that these costs were assessed after their purchase of the property. At the time Page 18 of 25 • MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. (II. APPEAL OF ASSESSMENT FOR UNPAID BLLS - CREEKSIDE IN ORONO, Continued) of his purchase, the City did a pending assessment search and found no pending assessments at the time. In September 2010, the City did make a decision to assess this back to the effective properties approximately one year after the purchase. From the City's perspective, the City of Orono is not in the business of developing property and it is has also held that each development must pay for itself. Based on that, the City decided to let a future developer come in and finish the development. Staff does not recommend that the Council make any changes to what was certified last fall. Franchot asked if all of the other property owners are requesting a forebearance. Gaffron recommended each property owner be asked that question. Franchot asked if anyone has paid the assessment. Gaffron indicated each person's share has been assessed to their taxes and he has not checked to see whether anyone has paid those. • Tom Gonya indicated he represents Orono Creek, LLC, who is the owner of one of the lots. The lot was for sale and they purchased it in approximately September of 2009. They went through the work of getting the title insurance and checked to verify that there were no pending assessments or levied assessments by the city or county. They owned the lot for approximately one year when a letter came in the mail last fall regarding this assessment. The letter indicated the assessment was for things that had happened prior to when they had purchased the lot and even going back into 2008. Gonya commented it does not seem fair to put this burden on him after they have gone through the proper channels and asked the City prior to purchase whether there were any unpaid charges out there. Gonya stated the report in his view shows that the City knew there were outstanding charges but yet nobody from the City said there was a pending assessment. Gonya indicated he had no way of knowing that there was this looming charge that would be assessed. Gonya stated last fall was probably a more appropriate time to address this but that he neglected to do so. Gonya requested the Council not put these charges against this lot. Gonya reiterated the City was asked prior to purchase about outstanding bills and nobody responded that there was a pending assessment. Dean Johnson indicated he is the owner of five of the lots and that after they bought the lots, they worked with Tom Kellogg and Mike Gaffron on the development. As the engineering bills came in, they found they had old costs and current costs being charged to them. Johnson indicated he is certainly willing to pay for the costs that they incurred when they started doing the development work. Johnson noted he met with Mike Gaffron last October and he laid out what all the costs were. During this process they were in the midst of constructing a house and so all of these old costs, as well as the new charges, were put into one bucket. Their plan was to pay all of the current costs and then assess the lots. Johnson stated he does not want to pay for the costs that were incurred prior to his purchase and that he • was told by Mike Gaffron that the City is not willing to let up on the old costs. Page 19 of 25 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. (11. APPEAL OF ASSESSMENT FOR UNPAID BLLS - CREEKSIDE IN ORONO, Continued) Johnson reiterated that he does not feel they should be responsible to pay those costs. It was an entity that went bankrupt and that the City has ways to handle old debts. Johnson indicated he is agreeable to paying the current costs and requested that the charges be split out. In approximately the first part of December, Johnson indicated he spoke to Mike and requested an invoice. The total charges were approximately $10,000. The City agreed to reduce it by approximately $1,000. There are approximately $5,600 in old costs that they do not feel they should have to pay. Bremer asked how many lots they still own. Johnson indicated they owned five lots at the point they did the development but have since sold one of those lots. Rahn asked if there is a breakdown between what they are conceding to and what has been assessed. n U Gaffron noted Exhibit G shows the original combined billing statement was a little over $10,000. The City reduced it by approximately $1,000 after the subdivision improvements were considered completed. That reduced the bill down to approximately $9,200. The subdivision was $8,800, which was split between seven homes. Under the developer's agreement, each of the property owners has inherited the obligations of the developer. Staff divided the $8,800 by seven so each of the lots ended up with approximately a $1,400 bill by the time the extra fees and interest are included. • Gaffron reiterated that the City expects developers to pay for developments and that the rest of the taxpayers should not pay for the cost of this development. The Council in the past has not given Staff any direction that taxpayers should pay for the costs of development. The letter of credit was clearly for a different purpose other than collecting on the bills for engineering or consulting services that the City incurred and is a separate line item in the development agreement. At the time this development was approved, the City was not requiring escrows. From Staff's perspective, the Council should not approve any waiver. Johnson stated it would be $5,300 rather than $8,800. Johnson displayed on the overhead the costs that they were assessed. Johnson indicated they had nothing to do with those costs prior to 2008. They purchased the property and closed with the bank. Then they found out there were old costs that were not part of the title. Johnson commented he is not a developer but it strikes him that this is not the way it should be done. Johnson indicated he is willing to pay the costs that have been incurred since they purchased the property. Since the purchase they have been paying all of their current bills. Johnson noted they had approximately $7,000 in escrow and have since gotten all of that back. Johnson reiterated he does not want to pay for the old costs and that in his opinion the Council would take the same position if they were in this situation. Mattick stated the City's old development agreements used to require a letter of credit for all the improvements within the subdivision and then the City would bill for any engineering and legal fees that were incurred. There is a provision in the statutes that allows cities to asses a benefitted property for any professional services: that have been rendered to that property as part of an application. • Page 20 of 25 • MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. (11. APPEAL OF ASSESSMENT FOR UNPAID BLLS - CREEKSIDE IN ORONO, Continued) Mattick stated he understands the point that those costs were incurred before these parties purchased the lots but that the issues are, number one, that the request amounts to the City, in essence, absorbing that $5,300, which is an unbudgeted expense; and two, the property did benefit from those services, which helped get it to the point that it was at when it was purchased by the new buyers. Mattick stated he understands those costs were not spelled out at the time of purchase but that they were expenses that were incurred that helped to improve the property to the condition it was in at the time of purchase. McMillan asked. how the purchaser would have known of these costs prior to purchase. Mattick stated the county would not necessarily show it and that it is hit and miss on pending assessments. When someone calls city hall, it is Staff's hope it would be caught at that time, but at the time these gentlemen called, Staff did not realize these costs were out there. Mattick indicated he is not suggesting that the new owners did not do their due diligence, but that the decision is whether the City should pick up these cost or assess the owners. Johnson stated they purchased the lots at what they thought was a fair market price at the time and then were later told about the old charges. Gonya noted in Staff s report it talks about the fact that in April of 2009 these things were discussed. He purchased it in September of 2009, so the City was well aware of the costs at that time. Gonya indicated • he is not sure who the title company talks to, but if the City would have said there was an outstanding amount and told them about it prior to purchase, that would have been the right way to do it. The title company did their work as they were supposed to and nobody said there was anything out there. Bremer asked if he is aware of the difference between an assessment and a non - assessment. Bremer noted this amount was not assessed at the time the title search was done. Gonya stated he does not understand the legal terms. Bremer commented the Council gets the point that these charges were not known at the time of purchase and that it is really a policy decision by the City Council on how this should be handled. Bremer stated everyone needs to be treated the same on this whether they are here tonight or at some point in the future and that she would like -to know whether they have been paid already. Johnson indicated the other property owner is the Gustafsons and that he does not feel they have paid the assessed charges. There is also another property owner who purchased a lot from the bank who is not here tonight and is currently building a house. Gaffron noted the City would know the payment status by May 15 since that is when taxes are due. McMillan asked when the old costs were billed to the previous developer. Gaffron stated the City billed the previous developer periodically during the construction. Based on the fact that Orono is classified as a MS4 city, they have the obligation to the state and others to continue to do inspections on an open construction site, and so the costs were accruing as the development proceeded forward. Page 21 of 25 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. (11. APPEAL OF ASSESSMENT FOR UNPAID BLLS - CREEKSIDE IN ORONO, Continued) Johnson indicated they purchased the lot and then looked at what it was going to take to complete the development. Johnson noted they did have a meeting with Tom and Mike shortly after the purchase. .McMillan asked when the property was purchased. Johnson indicated it was either April or May of 2009. Gaffron stated the entities that they purchased it from should have disclosed the contents of the letter from the City. Rahn asked whether this could still occur under the City's current escrow policies. Gaffron stated letters of credits used to expire and now the City writes them so they are automatically renewing. Escrows were not in place at this time and the City did not require escrows on a regular basis until approximately three years ago. Gaffron stated in his view the City has procedures in place currently that would prevent this from happening. Mattick stated currently, in addition to the cash escrow, the City also has a letter of credit that they can draw on to satisfy any outstanding consulting bills. Bremer asked whether there are any other developments like this that have outstanding bills. - • Gaffron indicated they closed out this development in May 2010 and that there should be no other bills relating to the development. Currently, as the houses get built, they will have an escrow account for that particular site. Johnson noted they have paid all the bills they have incurred since purchase. Bremer asked if there are any other similar developments in the City that might have this same problem in the future. Gaffron indicated there is the Stone Bay development and the office condominium project that have not been finished but that the City does have a letter of credit on file. It is the City's expectation that someday a developer will come in and complete the development. — Mattick stated the letter of credit spells out what can be drawn on the letter of credit. That letter of credit is then presented to the bank for payment on certain items. There was nothing in the letter of credit for this development regarding consultant fees. Mattick noted the City was sending out bills periodically to the developer for these costs but they were not paying them. Franchot stated it sounds like legally the City can charge the money to the new property owners but that he is struggling with whether it is right to charge people who made a good faith effort to find out what they owed prior to purchase. Franchot stated in his view the charges are fair and real but that he is not sure whether the new purchasers should pay them. Page 22 of 25 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. (II. APPEAL OF ASSESSMENT FOR UNPAID BLLS - CREEKSIDE IN ORONO, Continued) Mattick noted the City was sending invoices out to the entities that controlled the real estate and it was not a pending assessment at the time they purchased the property. Staff had not brought these bills to the Council to certify at that point. Franchot commented realistically there was not a pending assessment but the bills were still there, and if Staff had said that there were some outstanding bills, it would be a different matter. Gaffron noted Staff did regularly send bills out to the developer and that Staff did send a letter to the various entities notifying them of these outstanding charges. Johnson stated after they purchased the lots and they had the meeting, Mr. Gaffron did send them some information on the costs. Johnson indicated they proceeded to go about their business of getting the development done and it was towards the end of the construction that they sorted through the bills and then questioned why they should have to pay these old °costs. Gaffron stated in his opinion the City should not have to pay those costs and that the development agreement suggests that the new developer is obligated. Johnson stated he is not a developer and that he did not have a development agreement with the City. • Mattick noted the development agreement is a recorded document that runs with the land and is the document that allows the property to be developed. The new owners did their due diligence to find out what pending assessments there might be on the property. At the same time the City was sending out notices to the people who controlled the land. Mattick indicated he has no doubt that the new owners did not know about these charges and that it comes down to whether the City or the builders or the property owners should pay for it. Franchot commented it does not sound like there is a precedent issue here. Bremer asked why they did not appear before the Council last fall when these assessments were certified. She added that clearly the property owners would have received notice of the assessment. Johnson stated he did receive the letter from the City and that he figured he would speak with the County about the old costs and pay the current costs. Johnson indicated he did not realize that Hennepin County would refer him back to the City. Bremer noted Orono is an assessing authority as well as the county. Johnson stated at the time he received the notice he already knew he was not going to pay the full assessment because he was in disagreement with it and that he had asked Mike Gaffron to send him out a separate invoice with the house expenses listed and another invoice with the development costs. Johnson stated it was his intention to have the development costs split between the lots. Johnson noted he still has not received that invoice. 0 Bremer asked if they feel the assessed amount is the wrong amount. Page 23 of 25 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. (11. APPEAL OF ASSESSMENT FOR UNPAID BLLS - CREEKSIDE IN ORONO, Continued) Gonya stated it was probably a lack of understanding of the process from his end. Gonya indicated Dean did come to him after he purchased the lot and informed him that there were some costs above and beyond what was originally anticipated and that he agreed to pay those. Gonya stated he was not aware of the old charges at that time and that the first time he saw the charges listed on the sheet was October, which may have been the proper -time to look at it but that he did not do that then and is now before the Council. McMillan asked if the old costs were billed within 30 days to the previous developer. Gaffron indicated Staff would have to go back and look at the billings to verify billing dates. Rahn moved, Franchot seconded, to direct Staff to split the unpaid assessment of $5,342 in half between the City and the Creekside property owners. Franchot asked how much money is in the City's contingency fund at the moment. Bremer commented it is more than $2,300. Mattick noted the tax statements already show the full assessment and that someone from the City will need to call the county and provide the new number. • Gaffron stated it would probably be easier for the City to refund the property owners. VOTE: Ayes 4, Nays 1, Bremer Opposed. *12. DISPOSAL OF POLICE DEPARTMENT SQUAD CAR Bremer moved, Rahn seconded, to sell a 2007 Ford Crown Victoria VIN #2FAWP71W27X133986, with a minimum bid of $4000.00 through a sealed bid process. If minimum bid is not reached, vehicles will be auctioned through Minneapolis Auto Auction or similar facility. VOTE: Ayes 5, Nays 0. CITY ATTORNEY'S REPORT *13. HAZARDOUS BUILDING COSTS AT 200 HOLLANDER ROAD Bremer moved, Rahn seconded, to accept the quote from Burns Excavating at $22,300 for the work to be performed to clean up the property at 200 Hollander Road. VOTE: Ayes 5, Nays 0. *14. LICENSES & PERMITS There were no licenses. Page 24 of 25 C. *15. BILLS MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 25, 2011 7:00 o'clock p.m. Bremer moved, Rahn seconded, to approve payment of the All Funds Account. VOTE: Ayes 5, Nays 0. ADJOURNMENT Rahn moved, Printup seconded to adjourn the Orono City Council meeting at 10:37 p.m. VOTE: Ayes 5, Nays 0. ATTEST: Linda S. Vee, City Clerk • Lili Tod McMillan, Mayor Page 25 of 25