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HomeMy WebLinkAbout07-11-2011 Council MinutesU 4 . MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 11, 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 Lih Tod McMillan and Council Members Cynthia Bremer, Doug Franchot, Aaron Printup, and Doug Franchot. Representing Staff were City Administrator Jessica Loftus, 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. APPROVAL OF AGENDA 1. CONSENT AGENDA Item Nos. 6, 7, 8, and 10 were added to the Consent Agenda. The first two license applications under Item No.-1 1 were added to the Consent Agenda. Franchot moved, Rahn seconded, to approve the Consent Agenda as amended. VOTE: Ayes 5, Nays 0. is APPROVAL OF MINUTES *2. REGULAR CITY COUNCIL MEETING OF JUNE 27, 2011 Franchot moved, Rahn seconded, to approve the minutes of the Orono City Council meeting of June 27, 2011, as submitted. VOTE: Ayes 5, Nays 0. PRESENTATION 3. 2010 COMPREHENSIVE ANNUAL FINANCIAL REPORT Craig Popenhagen and Michelle Hoffman, representatives from Larson, Allen, were present. Craig Popenhagen addressed the Orono City Council regarding the 2010 Comprehensive Annual Financial Report. Popenhagen noted under the required communications for this year's audit it was found that the audit provides reasonable but not absolute assurance of the city's financials since it is impossible to look at every single item. The City has not had any changes to any accounting policies. The significant accounting estimates include useful lives of capital assets, valuation of investments, and post - employment benefits. Popenhagen noted his firm received full cooperation from management during the audit. The City was issued an unqualified opinion on the financial statements. There were some exceptions to • the internal controls that were noted, such as preparation of financial statements and segregation of duties. Legal compliance with Minnesota regulations was looked at and there were no exceptions noted. Page 1 of 19 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 11, 2011 7:00 o'clock p.m. • (3. 2010 COMPREHENSIVE ANNUAL FINANCIAL REPORT, Continued) Popenhagen noted the internal controls are based on the number of staff currently employed by the City and that their comments concerning that area are fairly common for the majority of smaller cities they audit. As it relates to the City's revenue, the majority of the City's revenue is generated through property taxes, followed by user fees, licenses and permits, and intergovernmental transfers. The City's general fund - unreserved, other government funds reserved, and other government funds - unreserved were looked at during this year's audit. Popenhagen noted the yellow bar on the chart basically is reserved for debt service and that the majority of the increase seen in 2010 is from the refunding bonds issued in December of last year, which were used to pay off the 2003 fire hall bonds in February of 2011. The purple shaded bar also depicts an increase due to the 2010 bond issue, with the proceeds being expended in 2011 on such projects as the Old Crystal Bay Road project and Orono Orchard Road. The chart covering government funds — revenue consists of basically the same set of funds. These funds are fairly consistent from year to year and in 2010 total approximately $7.3 million. On the expenditure side of the governmental funds, those are also fairly consistent from year to year. In 2006 there was a spike in spending due to the purchase of the Big Island park. The red bar depicted on the chart will fluctuate from time to time depending on the projects that are ongoing in that year. The enterprise funds basically consist of the assets the city owns, what the city owes, and then what is left • over. Revenues in the utility funds were flat from the prior year at about 1.5 million. There are some rate increases built in, but the rate increases in the water fund were offset by consumption decreases. Popenhagen commented that a couple of advantages with the enterprise funds are the water tower leases, which contribute $100,000 per year, and connection fees for the storm water fund also contributed $100,000 in revenue in 2010. Popenhagen noted the golf course fund again had an operating loss. The most noteworthy item is that on November 1, 2010, the golf course fund was folded back in the general fund and will be reported as part of park and recreation expenditures in the general fund moving forward. As it relates to government -wide financial data, that basically consists of the City's assets, such as infrastructure, buildings, streets, bridges, and also includes long -term debt. The top line on the chart basically reflects cash investments, which is expendable net assets. Normally that line will trend almost exactly with the change in cash investments but you will not see that relationship in 2010 due to the bond that was issued in December of 2010. The red line depicts the operating expenses of the City, including approximately $750,000 in depreciation on capital assets. It is a slightly downward trending line due to some controls, that were put in place, which has resulted in a stable financial performance by the City. The last graph is a snapshot of future debt service and is based on 2010 expenditures. The future debt service from 2011 through 2015 has been projected based on outstanding debt that existed as of December 31, 2010. Michelle Hoffinan noted there were some new standards issued which the City will be required to comply with beginning in 2011. GASB No. 54 relates to fund balance reporting and will go into effect in 2011. It regulates the delegation of authority and special revenue bonds. Currently there are three categories and this will increase. it to five. Hoffman noted that it will be necessary for the City Council to approve • someone in the finance department to work with that category of fund balance. Page 2 of 19 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 11, 2011 7:00 o'clock p.m. (3. 2010 COMPREHENSIVE ANNUAL FINANCIAL REPORT, Continued) GASB No. 61 relates to the financial reporting entity and becomes effective in 2013. It does modify some previous requirements for inclusion of component units such as the City's HRA. The method for including the HRA will need to be re- evaluated. GASB No. 62 relates to the codification of accounting and financial reporting guidance and becomes effective in 2012. This will potentially impact accounting policies followed by the proprietary funds such as water, sewer, storm water, and internal service funds. Hoffman noted the City received the GFOA Certificate of Achievement for Excellence in Financial Reporting for 2009. Franchot noted sometimes in the audit report they refer to taking a test sample. Franchot asked if they are also making any projections to the whole financial picture. Popenhagen stated the audit is a combination of both and that they also do some projections on revenues, particularly in the enterprise funds. Franchot asked how big of a sample they test. Franchot asked whether they only test 10 percent and not the other 90 percent. isPopenhagen indicated that is not necessarily true. When samples are pulled, they are looking at basically controls of approval and supporting documentation for the selected transactions.. Based off of that sampling, a financial analysis will be done on the other 90 percent. Printup inquired as it relates to the dollar amount threshold mentioned in the report, what that means for a city of this size. Franchot commented it relates to a segregation of duties and that the auditor made a recommendation that certain expenditures should be approved by the council. Franchot noted there was no number attached to that and that Council Member Printup's question related to whether that should be a $500 limit or a $25,000 limit. Franchot asked whether a double signature system would meet those requirements. Popenhagen stated a two signature system would work and that typically city councils approve individual transactions over $5,000. Olson noted Staff currently brings any expenditure over $5,000 to the council for approval. McMillan noted the audit also found that the city's accounting manual is very outdated and that it is something the City should look at updating. Popenhagen recommended the manual be reviewed periodically. The City is about two years in on the current accounting system and some processes have changed during that time. The Council will have to make some decisions about how much authority they would like to delegate as well as possible changes to some of the funds. The City Council took no formal action on this item. Page 3 of 19 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 11, 2011 7:00 o'clock p.m. LMCD REPORT — ANDREW MCDERMOTT, REPRESENTATIVE McDermott reported that the government shutdown has affected the herbicide treatment. All the bays were treated, but any spot warranty treatment will not able to be done without the presence of the DNR. As it relates to the milfoil harvesting, that has also stopped due to the DNR not being present to issue the necessary permits. The LMCD will hold its first meeting on Wednesday since the government shutdown. There has been a little push to close the boat launches, but that in his opinion it is not a hard effort at this time. As it relates to inspections, a portion of the inspection is done by the state and a portion is done under contract. At the present time the LMCD is doing 100 percent of the inspections under contract, which can be done for a little while but the LMCD will not be able to do that long -term. The LMCD was initially anticipating a two or three week shutdown but that may be extended, which will impact the inspections at the various public boat launches. The number of inspections being conducted has remained the same but the LMCD has been picking up 100 percent of the costs. Bremer asked what the situation is with the zebra mussels. McDermott stated the zebra mussels have definitely expanded throughout the bays at a faster pace than what was originally anticipated. It is likely they will see more in the fall when people's docks are brought in. McMillan asked if the herbicide treatments have been completed. McDermott indicated they have been completed except for the warranty spraying. McDermott indicated he has heard good comments about the treatment, especially on Carman's Bay. PLANNING COMMISSION COMMENTS — LIZZ LEVANG, REPRESENTATIVE Levang stated at the June meeting the Planning Commission reviewed four variances, a CUP and a text amendment. The next Planning Commission meeting is scheduled for July 18'h and will be addressing a number of variances and a CUP. PUBLIC COMMENTS None PLANNING DEPARTMENT REPORT *4. #08- 3355/ #09 -3413 CLEMENT AND WINIFRED KROLL, 60 STUBBS BAY ROAD SOUTH — PRELIMINARY PLAT APPROVAL EXTENSION — RESOLUTION NO. 6057 Franchot moved, Rahn seconded, to adopt RESOLUTION NO. 6057, 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. Page 4 of 19 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 11, 2011 • 7:00 o'clock p.m. 5. #10 -3479 PHILLIP WIMPLE, 3095 CASCO POINT ROAD — VARIANCE Phillip Whipple, Applicant, and Mike Sharratt, Designer, were present. Curtis stated the applicant is requesting lot area and hardcover variances in order to remove the existing principal structure and construct a new residence within the 75 -250 foot zone and a new detached garage in the 250 -500 foot zone. The majority of the existing blacktop driveway will be maintained. However, the circle drive configuration will be eliminated. A rain garden is also proposed, which will infiltrate most of the storm water from the driveway hardcover in response to the Planning Commission's direction. The applicant originally made an application for similar variances in 2010 and was scheduled to appear before the Planning Commission in July 2010. However, the 2010 Krummenacher ruling resulted in the City's inability to review and grant variances as had been done in the past. The applicant requested their application be tabled until July 2011 to allow for modifications in the statute and/or City Codes. The variance standstill afforded the applicant time to slightly redesign his plan. The applicant now presents a plan which results in a 583 square foot overall reduction in hardcover from the previous request. The Planning Commission at its June meeting voted 6 to 0 to recommend approval of the hardcover and lot width variances as proposed in conjunction with a rain garden to mitigate the excess hardcover from the driveway. • Planning Staff recommends approval of the variances consistent with the Planning Commission recommendation. Submittal of a detailed rain garden design and conformance with the City Engineer's recommendations will be required with the building permit application. Rahn noted 194 square feet of hardcover was listed in Staffs report within the 0 -75 foot zone, and asked whether that is being removed. Curtis indicated the hardcover within the 0 -75 foot zone will be remaining as it currently exists. Rahn noted a deck is typically not allowed in that zone. Curtis stated the deck is nonconforming and that Staff was advised by the City Attorney to not request removal of legally nonconforming structures. Rahn asked what the practical difficulty is for allowing the excess hardcover in the 250 -500 foot zone where 30 percent is allowed. Rahn indicated he understands the need for the driveway but that it appears to be over by 600 or 700 square feet. Rahn asked whether the driveway area to the left of the tree will be removed or what will remain in that area. Curtis noted the dotted line is the area that will be removed. Rahn stated the area is not acting as a turnaround and is simply excess hardcover. The applicants are constructing a brand new home and that in the past the City has typically required the property owner to start with a clean slate. If that area is removed, a variance may not be required. Rahn stated he is attempting to figure out what the practical difficulty would be to not have that since it does not seem to affect the turnaround for the garage and seems to be excess parking. Page 5 of 19 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 11, 2011 7:00 o'clock p.m. • (5. #10 -3479 PHILLIP WHIPPLE, 3095 CASCO POINT ROAD, Continued) Curtis stated the topography in that area has somewhat directed the design of the driveway due to the steepness and the ability to access the garage. Whipple stated it is a very steep driveway, which creates problems in the wintertime, and that they are attempting to retain as much driveway as possible for safety reasons. It is very difficult to maneuver and to get a snowplow in there. Rahn stated the end result with this project will be two garages that are the size of four car garages. Rahn asked what the practical difficulty would be for the second detached garage. Rahn stated in his opinion some hardcover should be removed since they are over on their hardcover. Whipple stated basically the garage is for a vintage car collection. They are attempting to have a place to store them on the property versus off site. Rahn commented the City Council will need to keep in mind future applications. Rahn noted the applicant is reducing hardcover on the site by two percent and that they are no longer talking about hardship anymore but rather practical difficulty. Rahn noted in the past the City has not considered something like this. Rahn stated they have at times recommended a snow melt system in order to reduce the amount of • hardcover. Rahn stated in his view there are other options that could be explored. Rahn commented he did visit the site and that it seems the whole upper area is a parking lot. Rahn stated he does not see how it would make it a safer driveway since the applicant could still have a pad in front of the garage. Mike Sharratt, Designer, stated it is not a full 60 -foot diameter but that it does act as a turnaround and would serve as parking for guests. Sharratt noted that area is existing and that they have taken a portion of the driveway out already. Sharratt commented he is not sure a modification can be made to the driveway. From the garage down to the road is approximately a 14 percent slope. Rahn stated he understands how turnarounds work but that he does not see a need for that much driveway. Rahn reiterated that in his view the hardcover should be reduced further with new construction and that he is not sure when or if the City went away from requiring new construction to meet all hardcover requirements. Rahn asked what the practical difficulty is for allowing the deck to remain in the 0 -75 foot zone. Whipple noted it serves as storage for the dock equipment and is existing. Bremer commented that is more of a legal analysis based on a case a number of years ago where the City does not require the removal of legal nonconforming structures. Rahn stated historically the City has not allowed those items to remain. Rahn indicated he is attempting to figure out why that would now be allowed. Rahn asked if the City currently has driveway standards. Page 6 of 19 • MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 11, 2011 7:00 o'clock p.m. (5. #10 -3479 PHILLIP WHIPPLE, 3095 CASCO POINT ROAD, Continued) Curtis stated the City has required minimum standards for driveways. The driveway must be at least eight feet wide. Bremer indicated she is in agreement with Council Member Rahn. Bremer stated if there was only one turnaround, she would understand the need for it, but that there are a lot of houses on the lake that have worse situations. If the applicant would like to go with the garage, the other turnaround should be removed. Rahn stated it appears the zone is over by 645 square feet and that either the driveway or the garage could be made smaller in order to reduce the hardcover. Rahn noted he would not be willing to approve the application as it is presented. Franchot noted he was in attendance at the Planning Commission meeting when this was approved and that as it relates to the practical difficulty, the Planning Commission looked at the narrowness of the lot, which automatically creates a higher percentage of driveway coverage. The practical difficulty was the fact that the shape of the lot created the need for the additional hardcover. Bremer pointed out the City has had numerous applications in the past where the City has not allowed this size of garage if they were over on their hardcover. • McMillan noted there is a two -car attached garage, and that to go over the hardcover in the 250 -500 foot zone to construct a storage shed is not a practical difficulty associated with living in a residential zone. McMillan stated whether it is the driveway or the detached garage, something has to be reduced in order to bring it into conformance. Whipple stated they can perhaps make the one turnaround work with the descent of the driveway. McMillan commented all property owners would love to have storage on their lots but at some point it becomes a luxury. McMillan recommended the applicant look at reducing either the driveway or the garage and that'a practical difficulty would be something related more with day -to -day living, such as having space for your everyday car. Rahn stated he would be willing to approve it based on the condition that the variance is eliminated and that the applicant can decide what he wants to eliminate. Sharratt stated the upper area skews the hardcover numbers. Rahn stated adding another four -car sized garage is a luxury that everyone will want to have and that the City will struggle with these in the future if this one is allowed. Sharratt stated the Planning Commission requested that they consider a way to mitigate the runoff and requested that they look at the concept of a potential rain garden in the area near the bottom of the driveway. Sharratt noted the Council has a plan for that in their packet. The applicants chose not to place it in that area and have submitted a revised plan for a rain garden. That rain garden would be located right off the bottom of the driveway at the top of the steep slope. The applicants felt that catching the runoff was equal to reducing the hardcover. If they are required to go to 30 percent, the applicants may decide not to put in the rain garden. Sharratt asked which solution would be better in the Council's mind. Page 7 of 19 MINUTES OF TEE ORONO CITY COUNCIL MEETING Monday, July 11, 2011 7:00 o'clock p.m. (5. #10 -3479 PHILLIP WHIPPLE, 3095 CASCO POINT ROAD, Continued) Rahn stated his assumption with the rain garden was that the rain garden was going to be mitigating some of the overage. Rahn noted the applicant is also over in the 0 -75 foot zone as well as the 250 -500 foot zone. Sharratt noted there is some overlap. Rahn stated a lot of the rain gardens are typically eastward of the residence. McMillan stated in addition to the runoff, the hardcover also relates to the massing. Rahn concurred there is an aesthetics issue as well. McMillan stated the City Council could vote on this application or table it if they would like to look at making some revisions. Rahn stated they could move it forward with the condition that X amount of hardcover be removed. Bremer commented that they are really speaking about three different turnarounds and that typically there is only one turnaround. Sharratt stated the one by the detached garage is an apron and not a turnaround. • Bremer stated it could also be used as a turnaround, especially if they are speaking of long -term storage for classic cars. Whipple stated the issue is that they would have to calculate how they can get to the 30 percent. Sharratt asked if the City Council is requesting that the hardcover be reduced to 30 percent. Rahn stated in his view that variance should be eliminated, which would make the hardcover no greater than 30 percent. Franchot asked if the Council could approve the proposed resolution without the variance. Sharratt indicated he does not see that it would cause any harm. Franchot stated that would require the applicant to stay under 30 percent however they choose to do it. Curtis asked if the rain garden requirement would still be a part of the resolution. Franchot stated in his view it was contingent on the hardcover so it would go away if the applicants choose not to put one in. Rahn stated in his view there should be a rain garden on site to mitigate the areas that are over in hardcover and that no other changes should be made to the plan except in the one zone. Rahn asked if the drainage would be impacted if the driveway is changed. Page 8 of 19 • MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 11, 2011 7:00 o'clock p.m. (5. #10 -3479 PHILLIP WHIPPLE, 3095 CASCO POINT ROAD, Continued) Kellogg stated it would depend on where the hardcover would be removed. McMillan indicated she is in agreement with Council Member Rahn. McMillan asked whether the specific amount of hardcover in the 0 -75 foot zone should be put in the resolution to help prevent additional hardcover from appearing in that zone at some point in the future. Rahn noted a deck is not allowed in that zone. Bremer noted that area does not require a variance since it already exists. McMillan requested the 0 -75 foot zone hardcover be included in the resolution. Sharratt asked if the application is tabled and they make the necessary changes, whether it would be necessary to go back before the Planning Commission or whether they could come directly back to the City Council. Curtis stated they could come back before the City Council but noted that an extension would be required if the application process goes beyond the next city council meeting. Rahn moved, Printup seconded, to table Application #10 -3479, Phillip Whipple, 3095 Casco Point Road, for redesign, at the request of the applicant. VOTE: Ayes 5, Nays 0. *6. #11 -3507 WILLIAM AND CYNTHIA BOWMAN, 450 WILLOW DRIVE SOUTH — VARIANCES — RESOLUTION NO. 6056 Franchot moved, Rahn seconded, to adopt RESOLUTION NO. 6056, a Resolution Granting a Variance to Municipal Zoning Code Section 78- 420(B), for the property located at 450 Willow Drive South. VOTE: Ayes 5, Nays 0. *7. #11 -3508 LEE AND LINDA WOTIPKA,1205 DICKENSON STREET — VARIANCES — RESOLUTION NO. 6058 Franchot moved, Rahn seconded, to adopt RESOLUTION NO. 6058, a Resolution Granting Variances to Municipal Zoning Code Section 78- 420(B) for the property located at 1205 Dickenson Street. VOTE: Ayes 5, Nays 6. CITY ENGINEER'S REPORT *8. APPROVE REHABILITATION OF LIFT STATION #29 (754 TONKAWA ROAD) AND GRINDER STATION #30 (998 PARTENWOOD ROAD) Franchot moved, Rahn seconded, to accept the quotations in the amount of $57,342.75 from Quality Flow Systems, In., of New Prague, Minnesota, for the upgrade to Grinder Stati on 30 (988 • Partenwood Road) and Lift Station 29 (754 Tonkawa Road). VOTE: Ayes 5, on 0. Page 9 of 19 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 11, 2011 7:00 o'clock p.m. 9. PAVEMENT MANAGEMENT PLAN UPDATE Kellogg stated in 2006 the City undertook the pavement management plan that encompassed five years. This winter was exceptionally hard on the roads in the city and the usage of the roads change over time. His office met with the City Council a year ago in order to reprioritize the road improvements. Watertown Road was on the CIP for 2011 originally since Watertown Road acted as a detour for motorists going east and west when Highway 12 was under construction. Traffic has diminished considerably since the new highway has been completed. The public works department has driven all of the public streets and state aid routes and has re- evaluated them based on the PACER system, an industry standard system that ranks the roads from one to ten. Ten is a brand -new roadway and one requires immediate attention. Once the roadway system was rated, the Council was provided with an updated spreadsheet that lists the public streets and state aid routes. Kellogg indicated the spreadsheet is color coded, with red being the roads in the worst condition and where road reconstruction is being recommended. Green is good as is and yellow denotes a seal coat is being recommended. Generally his office recommends a five year cycle on the seal coat. The City did go through a series of three construction cycles where every eligible roadway in town was seal coated. The seal coating cycle should be started this year. Kellogg noted they did not include resealing Old Crystal Bay Road since the Council over the past year was discussing possible reconstruction of the roadway but that he would recommend that be considered for some type of improvements next year. The annual costs for the seal coating are approximately, $100,000. Kellogg noted the costs for the seal coating have gone up since they first undertook the seal coating due to the increased oil prices. Franchot noted it is approximately a 70 percent increase in five years. Kellogg stated in 2006 McCulley Road was reconstructed and then also seal coated a number of other roads. These improvements have been documented in the pavement management plan. The Council was also provided with a couple of five year ClPs that have been separated into two parts. The first CIP covers the state aid roads and represents the direction that was received from the City Council last year. Xrecommended improvements to Old Crystal Bay Road in 2011 and Willow Drive in 2016. The other CIP looks at the local streets and is based on their condition. The ratings for a mill and overlay range from four to five or six, with four being worst than five. They also looked at the annual costs that the City would expend on the mill and overlay. Based on a 20 -year CIP, if the City did all the roads over a course of 20 years and divided that by the total estimated cost, which was $12 million, it came up to $600,000 annually that the City should expend to keep up with the roadway reconstruction that is being recommended. Those costs are the basis of the five year CIP and that information has been provided to the City Council. Franchot asked if West LaFayette Road is included in the table. Jared Ward, Bonestroo, indicated that road is not included in the local CIP but is included in the table of local streets that they recommended for a seal coat. • McMillan noted that the CIP includes 300 feet of Watertown Road to Brown Road for 2014. McMillan asked what section that would consist of on Watertown Road. Page 10 of 19 AIIlVUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 11, 2011 7:00 o'clock p.m. (9. PAVEMENT MANAGEMENT PLAN UPDATE, Continued) Franchot stated to his understanding it is the section of Watertown Road that starts at Brown Road going west. Franchot asked if that is the section shared with the City of Long Lake. Kellogg indicated it is. McMillan noted Watertown Road from Willow to Brown is a reconstruct. Kellogg indicated they have been in discussions with Long Lake as well as Medina in attempting to coordinate these recommendations with what is on their CIPs. Long Lake originally had Watertown Road between Willow and Broad Road scheduled on their CIP for this year but that has been pushed out to 2013 and possibly even later. DeBaere indicated it is two years out to his knowledge. Kellogg stated there is also the possibility that it could be moved even further out and that his office will remain in contact with them. McMillan asked if the 300 feet west goes all the way to Willow. Kellogg stated the ownership of the Watertown roadway between Willow Drive and Brown Road is difficult to list on the map since parts of it are located entirely in Long Lake and a portion is located half in Orono and half in Long Lake. Kellogg noted the colors on the overhead do not represent ownership. Kellogg illustrated the portion of Watertown Road that is located within Long Lake. McMillan asked if there is a mill and overlay piece to Watertown Road. Kellogg indicated that notation is incorrect and that it actually is being recommended for a reclamation project rather than a mill and overlay. In approximately 1977, the City reconstructed McCulley Road and built it to state aid standards at the time. Approximately four or five years ago, the City performed a reclamation project on that street, which they were able to do since it had a gravel base underneath the roadway. A reclamation project consists of grinding up the existing bituminous and mixes it with the aggregate base below. The roadway is then reshaped and paved. In a reconstruct project, they would actually remove a foot or a foot and a half of material, which is more costly. According to the calculations for McCulley Road, the total project cost was approximately a third of what it would have been if it had been reconstructed. Kellogg pointed out that Watertown Road is on the state aid road system. One of the state aid rules is that if it is a full reconstruct project, then there are higher standards that have to be met. There was a discussion at the City Council level approximately four or five years ago regarding this roadway and what should be done. The guidance from the Council was for them to pursue reclassifying Watertown Road as a local street rather than a state aid road. Soil borings were completed to determine the sub base of the road and it was found that in certain areas there was adequate base but in other areas there was not adequate base. A mill and overlay project was performed to help the road last longer. 0 McMillan asked if a reclamation project is more expensive than a mill and overlay. Page 11 of 19 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 11, 2011 7:00 o'clock p.m. • (9. PAVEMENT MANAGEMENT PLAN UPDATE, Continued) Kellogg indicated it is since during a mill and overlay only an inch and a half of bituminous is removed rather than down to the aggregate base. The duration or life of the roadway is completely dependent on the base of the road. Willow Drive South last year was a mill and overlay and was a candidate for that type of work because there was a better aggregate base under that roadway. Kellogg requested direction from the City Council on how they should proceed with the CIP. Franchot commented that this is really good data on the condition of the roads within the City and that it is part and parcel of the discussion that the City Council had during their work session earlier this evening concerning the City's available road funds. Kellogg noted Orono Orchard Road is on the C]P for next year because the Metropolitan Council has indicated an interest in partnering with the City on that project. The latest agreement is at the Metropolitan Council for their review and that in his opinion there will only be minor changes to it The Metropolitan Council should pick up approximately 30 percent of the costs on that project since they have an interest in installing a new parallel force main. There is an existing force main but there are aging and capacity issues with that pipe. Printup asked when they expect to hear back from the Metropolitan Council Kellogg indicated the person who was dealing with this issue was on maternity leave and she has just returned this week. Kellogg stated he anticipates hearing back within the next two weeks. Kellogg noted Orono Orchard Road is not a state aid route and that the road will basically remain the way it is. McMillan commented at the present time there are some different opinions on the City Council regarding the roads within the City and how they should proceed forward but that she would like to proceed forward with designating certain roadways for improvements next year. Kellogg noted it was the City Council's decision approximately one year ago to look at Old Crystal Bay Road to address the deteriorating condition of the roadway as well as safety issues. If the Council's direction is to relax some of those standards that were addressed in the design, they can still go back and put together a revised design that is cheaper but it may not accomplish all the goals. Kellogg noted there were some comments by the residents that a mill and overlay would solve the problem. Kellogg indicated he would not recommend that based on how the road was originally constructed in 1962. Those findings were presented to the City Council last October in the feasibility study. Following the direction of the Council, five soil borings were conducted, with results that one of the soil borings showed four inches of bituminous and six inches of aggregate base but that the other four soil borings showed no aggregate base at all. Kellogg indicated that if they take off an inch and a half or two inches of surface, they will not have any structural integrity to support that roadway due to the lack of the aggregate base. Kellogg indicated the City probably will not get five years out of it.. There is also some petroleum contamination in the area that will need to be addressed. Kellogg noted the City undertook a process eight or nine years ago to replace the water main from Willow Drive along Old Highway 12 on the north side which goes to Old Crystal Bay Road. There has been a • fairly significant break frequency of that water main over the years and the fear is that potentially the users of the water system on the south side of Highway 12 would be out of service for a period of time should that water main break. The City has undertaken three projects over the years to replace part of that Page 12 of 19 • MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 11, 2011 7:00 o'clock p.m. (9. PAVEMENT MANAGEMENT PLAN UPDATE, Continued) water main and the remaining pipe was slated for replacement as part of the Old Crystal Bay Road improvement project. McMillan asked what utilities are in the existing roadbed at the present time. Kellogg "stated the sewer pipe is located on the east side and the water main is located on the west side. There are no utilities directly underneath the roadway but if you replace the utilities, it would be necessary to dig out into the middle of the roadway due to the width of the trench that would be required. Franchot asked if there is any technology available that would allow them to replace the utilities without digging up the roadway. Kellogg indicated there is directional drilling and other technologies that can be used but most of them rely on a gravity pipe system that has a continuous grade to it. If there are offset joints or sags in the pipe, that technology will follow the same path as the pipe. Kellogg indicated they have utilized some technology for replacement of the water main located on Old Highway 12 that could be utilized in this area but that he would have to review the plans. Kellogg noted there are also technically areas in the middle of Old Crystal Bay Road where the City does not have an easement for the utilities. At the present time the school district owns the whole right -of -way. Printup asked when the season would end for doing a mill and overlay project or a reclamation project. Kellogg indicated each year the City puts out a request for material bids and the bid includes different components of materials. If the City were to undertake a mill and overlay project on a local street, that would be a rather quick project. Depending on the size of the project, something like that could be coordinated rather quickly and from start to finish would probably last about a month to a month and a half. A state aid route would take much longer since plans and specs would need to be prepared and the project would need to be publically bid. Kellogg estimated the planning process would last anywhere from two to three months on a state aid mill and overlay project. Kellogg noted the costs for various projects have also been gradually increasing. Printup asked if costs could be brought down if the City undertakes two road projects at the same time. Kellogg stated you would need a separate plan set for each project but that the bid could be combined. McMillan asked what year Watertown Road is slated for reclamation and what the costs would be. Jared Ward stated the spreadsheet in the Council packet reflects the costs. Kellogg indicated those costs would need to be updated since it reflects a reconstruct and not a reclamation. McMillan stated she would like to get the costs down on Old Crystal Bay Road and then include Watertown Road and Old Crystal Bay Road on next year's schedule. McMillan commented the input she • received from residents was that $3.2 million on one roadway was too much but that she does not want to incur significant engineering costs to come up with a new design. McMillan stated in her view the roundabout design for Old Crystal Bay Road is too costly and that the City has other MSA roads that are Page 13 of 19 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 11, 2011 7:00 o'clock p.m. (9. PAVEMENT MANAGEMENT PLAN UPDATE, Continued) in poor shape where some of the funds could be used. McMillan indicated she would like to get citizen involvement, feedback, and comment early in the process. Bremer asked what the City Engineer's involvement should be going forward on Old Crystal Bay Road and if this should be discussed further in a work session or in a city council meeting. McMillan stated this discussion could be held at a City Council work session or meeting but that she would like the engineer to look at some alternatives. Franchot commented in his view better direction needs to be given to the City Engineer and that it would be helpful if the Council could come up with some preliminary questions for the City Engineer in order to give the Council some better context on what it would cost to do a redesign of Old Crystal Bay Road or some other type of project. Franchot stated part of the problem was that when there was a shift on the Council, they did not keep track of what the expended engineering costs were on the project and that was not factored into the decisions. Franchot noted the City already has incurred approximately $350,000 in costs on the Old Crystal Bay Road project and that he would like some idea of what each of the alternatives would cost. Franchot noted the City Engineer has said that a mill and overlay is not something he could recommend for Old Crystal Bay Road. Kellogg commented a good starting point could be outlining what the minimum state aid standards are for that roadway. Kellogg stated it would not be worthwhile to pursue something that would not be allowed. From there the Council will need to decide if they are going to proceed forward with replacement of the utilities. McMillan commented she would also like some alternatives on how to deal with the I &I. Kellogg stated I &I is an immediate concern that needs to be addressed in the very near future. The exceedance the City was charged with occurred in June of 2010. Since that time the Metropolitan Council has been transitioning to a different program and has not been charging the City for any subsequent exceedances but they are still monitoring the situation. The Public Works Department felt the exceedances were occurring on the south side of Highway 12 with some manholes that were taking on water during the bigger water events and they took some steps to correct that problem. Kellogg indicated that the Public Works Department thought the situation was taken care of but he was recently contacted by the Metropolitan Council and informed that the problem has not been resolved and that there have been two more exceedances this year. Kellogg indicated this is the oldest section of pipe in the service area and that there are several options to deal with the I &I other than replacing the pipe. Kellogg indicated he will provide the minimum state aid requirements to the city administrator for distribution to the City Council. Printup stated he was prepared to make a motion tonight to do a mill and overlay on Old Crystal Bay Road. Kellogg stated he would recommend other options be looked at since the soil borings do not support that • treatment and the City will likely not get five years out of it. Kellogg pointed out that one of the standards of state aid is that you need to provide a street section or identify the strength of the tonnage for the street. The City did not have a problem meeting that requirement on Willow Drive South because Page 14 of 19 • MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 11, 2011 7:00 o'clock p.m. (9. PAVEMENT MANAGEMENT PLAN UPDATE, Continued) there was a better aggregate base under the roadway, but based on the results of the soil borings for Old Crystal Bay Road, it may be impossible to convince the state that the City will meet those minimum street designs. Kellogg indicated he will look into it further. Dennis Walsh, 1354 Rest Point Circle, stated he agrees with the City Engineer on the need for a good aggregate base. An overlay and seal coat makes the road look pretty but does not fix any problems. Walsh stated he would like to know from a historical perspective when bids are obtained for reclamation, reconstructs, and overlays, why the City is not receiving a 10 -year warranty. Walsh indicated a good contractor will give a 10 -year warranty on a mill and overlay project provided there is a good solid base. Walsh encouraged the City Council to obtain longer warranties on road projects. Kellogg indicated typically the City receives a two year warranty and that he is not aware of 10 -year warranties being given on municipal projects. Franchot commented the 10 -year warranty would likely come with a higher cost. McMillan indicated she does not want to approve the CIP tonight given the uncertainty about which road projects should be completed next year. McMillan asked if there are differences in the quality of bituminous. Kellogg indicated there are different types of bituminous available. Generally there is a low volume and a high volume bituminous depending on the amount of traffic on the roadway. Kellogg stated in his view his office does their due diligence in terms of ensuring that the quality of the work meets their expectations. Kellogg indicated he will do some further research on the extended warranties. Kellogg stated the next step would be for his office to come back to the City Council and have them authorize a feasibility report for Orono Orchard Road. Kellogg stated in his opinion he does not feel there is any harm or risk to the City by delaying approval of the CIP, but that by the end of the summer the City should have some idea of what they would like to do in 2012. Printup asked when the state aid standards can be provided. Kellogg indicated he will attempt to get it to the city administrator prior to Friday. Rahn asked if turn lanes are required on MSA roads. Kellogg indicated that would vary depending on the roadway. Rahn asked if street lights are also required. Kellogg indicated street lights are required with turnarounds and intersections. Franchot noted the City Engineer will provide the MSA standards and asked whether the City Engineer should be looking at other options for the roadway. • Printup commented he would like the City Engineer to delay looking at that until the Council receives the standards. Page 15 of 19 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 11, 2011 7:00 o'clock p.m. (9. PAVEMENT MANAGEMENT PLAN UPDATE, Continued) Kellogg indicated he would wait until the City has an opportunity to review the standards. The City Council took no formal action on this item. MAYOR/COUNCIL REPORT Printup stated the pancake breakfast sponsored by the Wayzata Children of the Revolution had approximately 1200 people in attendance and was a great success. McMillan noted there was a fire advisory meeting approximately ten days ago and that the information was included in the City Council packet. The group was in favor of adding the Navarre Fire Station to the operating contract. The Long Lake City Council will be reviewing the contract in the near future. Franchot asked if the contract includes the asset value or just the operating. McMillan indicated it is just the operating. The information also includes the cost formula for Long Lake, Orono, and Medina. Franchot stated he noticed that 70 percent of the calls were either false alarms or nonfire calls, which is not particularly in line with the cost sharing and places a bigger load on Orono. Franchot stated he would like that to be kept in mind as the discussions go forward. CITY ADMINISTRATOR'S REPORT *10. DISPOSAL OF POLICE DEPARTMENT SQUAD CAR Franchot moved, Rahn seconded, to authorize the sale of a 2007 Ford Crown Victoria, VIN # 2FAWP71W27X133986, with a minimum bid of $4,000; and to authorize the sale of a 2008 Dodge Charger, VIN# 2B3KA4311IX8H223539, with a minimum bid of $8,000 through a sealed bid process. If minimum bid is not reached, vehicles will be auctioned through Minneapolis Auto Auction or similar venue. VOTE: Ayes 5, Nays 0. CITY ATTORNEY'S REPORT None Page 16 of 19 LJ n U . MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 11, 2011 • 7:00 o'clock p.m. 11. LICENSES & PERMITS *ONE DAY GAMBLING PERMIT - RESOLUTION NO. 6059 Orono Basketball Association (raffle) Orono Basketball Midday Madness Orono Middle School, 800 Old Crystal Bay North Saturday, October 30, 2010 11:00 a.m. - 1:00 p.m. *MASSAGE THERAPY LICENSES 2. All Bodies Pilates and Wellness 3384 Shoreline Drive Franchot moved, Rahn seconded, to adopt Resolution No. 6059 approving the application of Orono Basketball Boosters for a One Day Minnesota Lawful Gambling Exempt Permit and to approve the massage therapy license for All Bodies Pilates and Wellness. VOTE: Ayes 5, Nays 0. RESIDENTIAL KENNEL LICENSES • 3. Mike Sweeney/Michael Beasley 1250 Lyman Avenue Sean Benson, 1220 Lyman Avenue, stated he would like to voice his displeasure at granting a kennel license to the residence on Lyman Avenue. Benson noted he sent a letter to the City highlighting some of the issues and that he has since started contacting other neighbors on whether they have encountered any problems with the dogs. Benson indicated his personal experience with this situation is that it does not appear that anyone is truly in charge of the dogs as it relates to the public safety of the neighborhood. While the dogs are being fed and taken care of generally, there have been a number of incidents over the past few months where the dogs were found loose running through the neighborhood. Benson indicated he has a lot of concern about the neighborhood, particularly since he has two young kids. Benson stated they have been put into a position where they have to watch the kids very closely because they are not sure when the dogs will come into their yard again. Benson stated he is not even sure the people who are applying for the license reside in the house. Beasley does not live there. Benson indicated the last communication he had was with Beasley's assistant back in May of this year when there were assurances that she would move the dogs off the property. The dogs are still there. Benson indicated he has attempted to follow up with Ms. McCauley but has not gotten a response back. In addition, a letter was sent to Mike Sweeney, who never responded. Benson stated Mr. Sweeney does not reside on the property and that to his knowledge Michael Beasley also does not live there currently. Benson indicated he was told that Mr. Beasley moved out for the • summer. Benson stated he has a concern that no one is taking ownership of these issues and that a new issue arises every four or five weeks. Page 17 of 19 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 11, 2011 7:00 o'clock p.m. (RESIDENTL4L KENNEL LICENSES, Continued) Benson stated he would prefer the City not issue a kennel license due to the safety issues and that the owners are not being responsible. McMillan commented she is aware that the neighbors have concerns. McMillan noted there is only a small fenced in area for the dogs and that the rest of the yard is not fenced. McMillan stated there should be a point person on site and taking ownership of the dogs. Franchot asked who actually owns the dogs. Bremer commented she is not sure they know that. Franchot stated he sees reference to five dogs and that the license application is for three dogs. McMillan noted there are also some other dogs that come and visit this property. Benson stated a couple of pit bulls will come periodically and that he has no good information about the number of dogs and/or the number of people who live there. • Rahn noted there are three tags that have been issued and that the names of the owners must be known by the City if they issued the tags. • Officer Barnes stated Michael Beasley is listed on the application. There is one pit bull that is occasionally there oq site along with another pit bull that used to belong to someone who moved back to New Jersey. Benson stated they know all the dogs in the neighborhood except for these dogs. Benson indicated that whenever he sees the dogs, they are running loose, which occurs approximately once a month. Rahn stated regardless of the size of the dogs, the owner needs to control his animals, and that if they are not controlled, the license should not be granted. Franchot asked what would happen if the license is not granted. Rahn noted they would be allowed to keep two dogs on the property. Franchot asked whether the City is going to pursue this matter to ensure that there are only two dogs on the property. Bremer stated it would then become a criminal issue for the police to enforce and that the City Council can control the number of dogs. Franchot stated the definition of a dangerous dog is scary since it deals with the situation after the fact. Unless the dog does bodily harm, it is not classified as a dangerous animal, which is just asking for something to happen whenever dogs are not controlled. • McMillan stated she is aware that the City's Code contains some language regarding dogs running at large and kennel licenses. Page 18 of 19 • • • MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, July 11, 2011 7:00 o'clock p.m. (RESIDENTIAL KENNEL LICENSES, Continued) Bremer noted the City Council did change that-language in the past couple of years and that she is in agreement the kennel license should be denied. Franchot moved, Printup seconded, to deny a residential kennel license for Mike Sweeney and Michael Beasley, 1250 Lyman Avenue. VOTE: Ayes 5, Nays 0. Franchot stated in his view this subject should be looked at in the future. *12. BILLS Franchot moved, Rahn seconded, to approve payment of the All Funds Account. VOTE: Ayes 5, Nays 0. ADJOURNMENT Franchot moved, Rahn seconded, to adjourn the Orono City Council meeting at 9:03 p.m. VOTE: Ayes 5, Nays 0. ATTEST: v Linda S. Vee, City Clerk Lill Tod McMillan, Mayor Page 19 of 19