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HomeMy WebLinkAbout09-26-2011 Council Minutesn U U MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 26, 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 and Council Members Cynthia Bremer, Doug Franchot, Aaron Printup, and David Rahn. Representing Staff were City Administrator Jessica Loftus, Finance Director Ron Olson, City Clerk Lin Vee, Planning Coordinator Melanie Curtis, City Attorney Soren Mattick, City Engineer Darren Amundsen, 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. 4, 7, 8, 12, 13, and 14 were added to the Consent Agenda. Rahn moved, Printup seconded, to approve the Consent Agenda as amended. VOTE: Ayes 5, Nays 0. APPROVAL OF MINUTES • *2. COUNCIL WORK SESSION OF SEPTEMBER 12, 2011 Rahn moved, Printup seconded, to approve the minutes of the Orono Work Session of September 12, 2011, as submitted. VOTE: Ayes 5, Nays 0. *3. REGULAR COUNCIL MEETING OF SEPTEMER 12, 2011 Rahn moved, Printup seconded, to approve the minutes of the Orono City Council meeting of September 12, 2011, as submitted. VOTE: Ayes 5, Nays 0. PLANNING COMMISSION COMMENTS — DENISE LESKINEN, REPRESENTATIVE Leskinen stated she had nothing to report but would be available for questions. PUBLIC COMMENTS None PLANNING DEPARTMENT REPORT *4. #10 -3490 JOHN ROEDEL, 4725 NORTH SHORE DRIVE — LANDSCAPE PLAN CHANGES • Rahn moved, Printup seconded, to approve the proposed changes to the finished landscape plan. VOTE: Ayes 5, Nays 0. Page 1 of 10 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 26, 2011 7:00 o'clock p.m. *5. #11 -3513 RYAN COMPANIES US, INC., 450 AND 550 OLD CRYSTAL BAY ROAD NORTH — DEVELOPMENT AGREEMENT AMENDMENT Rahn moved, Printup seconded, to approve the Second Amendment to Development Agreement for the Crystal Bay Business Center. VOTE: Ayes 5, Nays 0. *6. #11 -3518 WILLIAM H. KOCH, 3251 CASCO CIRCLE, VARIANCE AND CONDITIONAL USE PERMIT — RESOLUTION NO. 6078 Rahn moved, Printup seconded, to adopt RESOLUTION NO. 6078, a Resolution Granting a Conditional Use Permit and Hardcover Variances per Municipal Zoning Code Sections 78 -966, 78- 967, 78 -1247, 78 -1283, 78- 1286(B) & (D) and 78 -1288, for the property located at 3251 Casco Circle. VOTE: Ayes 5, Nays 0. *7. #11 -3514 ROGER AND MEGAN REMARK, 141 CHEVY CHASE DRIVE — VARIANCE Rahn moved, Printup seconded, to direct Staff to draft a resolution approving a wetland and buffer setback variance for the property located at 141 Chevy Chase Drive. VOTE: Ayes 5, Nays 0. *8. RECOGNITION OF PLANNING COMMISSION MEMBER LINDA FEUSS — RESOLUTION NO. 6079 i� . e • Rahn moved, Printup seconded, to adopt RESOLUTION NO. 6079, a Resolution of Appreciation to • Linda Feuss for Dedicated Service to the City of Orono. VOTE: Ayes 5, Nays 0. 9. PLANNING COMMISSION MEMBER APPOINTMENT Printup commented he has spoken with Kevin Landgraver about the Planning Commission appointment and that he was excited to fill the vacancy. Printup noted that Landgraver is on vacation and was unable to attend tonight's meeting. Printup moved, Franchot seconded, to appoint Kevin Landgraver to the position of Planning Commission member effective immediately. VOTE: Ayes 5, Nays 0. CITY ENGINEER'S REPORT 10. OLD CRYSTAL BAY ROAD UPDATED COST ESTIMATES AND FINANCIAL INFORMATION Amundsen stated the majority of the information contained in his report was discussed at the last meeting and that Ron Olson will be providing some additional information on the financial side. Olson stated as it relates to the MSA bonds that were sold last November, the City sold $1,660,000 in bonds to fund the Old Crystal Bay Road project. The other question that was raised at the last Council meeting was regarding when the funds would have to be used. Olson indicated he spoke with the MSA • Office but they did not have a definite timeline for when the funds would need to be used. The MSA had indicated they had one city that had paid off the bonds for a project but actually never completed the project. Page 2 of 10 9 `r s, • MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 26, 2011 7:00 o'clock p.m. (10. OLD CRYSTAL BAYROAD UPDATED COST ESTIMATES AND FINANCIAL INFORMATION, Continued) Olson stated he would recommend that the funds be allocated to a specific project or projects. The arbitrage rule governs the amount of interest that can be earned by the investment of bond proceeds. As long as the funds are used within three years, the City is not subject to the arbitrage requirements. However, if the funds are not used within three years, the City would be subject to additional reporting requirements and they would be prohibited from earning interest at a rate greater than the interest rate paid to the bond holders. Olson indicated his preference would be that the City apply the money within the next couple of years given the possible effect on the City's bond ratings for fixture bond sales. As part of the conference call with Moody's, an outline of the projects that the City is planning to undertake is provided. Olson stated he would rather not be in a situation where he has to explain why the City did not use the bonds. McMillan asked if the City would need to identify a specific road for use of the funds. Olson indicated they would. Franchot commented the information is helpful and stated the City should determine what project it would like the funds allocated to. Franchot noted the time table on the Orono Orchard Road project is • tight and that given the number of steps the City has to undergo in order to commence an MSA project, he would recommend that the Council make a decision in the near future or have Staff make a recommendation. Printup moved, Rahn seconded, to approve mill and overlaying two inches of the existing roadway of Old Crystal Bay Road. Franchot commented in his view the Council does not have sufficient information to proceed forward on the mill and overlay project and that he would like to learn more about the infrastructure in that area. Franchot indicated he was not implying that the City Council should make all those decisions tonight. McMillan asked the City Engineer to describe the process that would need to be undertaken for the mill and overlay. Amundsen stated one option would be to include some bid items in the City's annual materials bid. The numbers received this year were not all that favorable but the City could perhaps inform the contractors that there will be larger quantities next year, which could bring the cost down. Another option would be that this could be a Public Works project. If the Council would like to explore a state aid funded project, it would require a longer timeline given the state aid review and bidding process. Bremer noted the City would not receive state aid funds for the mill and overlay. Amundsen stated they could apply for the state aid funds but in his opinion it is unlikely they would be approved and it would likely extend the process. The third option would be to bid it out as a stand -alone • project. Page 3 of 10 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 26, 2011 7:00 o'clock p.m. • (10. OLD CRYSTAL BAYROAD UPDATED COST ESTIMATES AND FINANCIAL INFORMATION, Continued) Rahn stated it was his understanding the City could not use state aid money if it did not meet the MSA standard. Rahn commented he wished he had known three months ago that they could have submitted the project for state aid funds. Rahn asked when the City would hear back from the MSA. Amundsen indicated they would likely hear back from the state within three months and that it would probably be sometime in November or December. Amundsen stated they would still need to submit a set of plans and calculations to MSA for review. Bremer asked what the realistic expectation would be for approval of the state aid dollars. Amundsen stated the likelihood is fairly small. McMillan asked if the mill and overlay project would require plans regardless if they submit it to MSA. Amundsen stated there may be ways to structure the City's material bid process to ensure that all the public bidding laws are followed. Mattick noted the threshold for bidding is $100,000 and that the bidding process is implemented when the project is expected to be over $100,000. Sometimes parties will break it into two pieces to keep it under • $100,000, but that he would recommend keeping it as one project. Mattick stated he is not sure the City has ever had a project where the materials have come in over $100,000. At the beginning of the year the City approves a materials bid but typically it does not include an entire stretch of road and it would typically be a separate process and be subject to the bidding requirements. In order to bid the project, plans would be required. Mattick stated the bidding process does require some time, and the City Council is probably looking at a 35 to 40 day bidding process. Rahn asked if they go down the state aid path, whether they would still be able to bid the project in January. Amundsen stated that is dependent on how soon a decision is made by the MSA. Franchot asked how the project would be paid for if they do not use state aid funds. Olson stated the City has three options it can consider. There is a fund called a permanent improvement revolving fund. Its purpose is to provide temporary funding for projects that have no other source of funding. In the years prior to the pavement management plan, the City was levying at the end of each year $200,000 into that fund. The City currently has $250,000 in the PIR fund that was originally levied for additional road overlays, and those funds could be used for this project. Olson noted that would be his preferred method of funding the mill and overlay project. Olson indicated they could transfer the money out of the PIR fund into the pavement management fund. The second option would be to pay it directly out of the pavement management fund, which has a balance • of $1.5 million. Olson indicated the City sold approximately $1.4 million worth of bonds for the Orono Orchard Road project. The current estimates are that that road project will cost the City $1.25 million Page 4 of 10 y' • MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 26, 2011 7:00 o'clock p.m. (10. OLD CRYSTAL BAYROAD UPDATED COSTESTIMATES AND FINANCIAL INFORMATION, Continued) after the Metropolitan Council pays its share, which would leave $235,000 that could be used to pay for the mill and overlay. The third option would be to use the community investment fund, which has slightly less than $2 million. This fund has primarily been used for the Navarre Fire Station and the Big Island bonds. The idea of that fund was to fund projects that benefitted the community. McMillan stated at a minimum she would like to resurface the road in the next 12 months and that the mill and overlay is a good alternative since it avoids the need to work with the underlying utilities and improves the road surface. It also gives the City some time to figure out what they want to do long -term with that road. McMillan stated after Orono Orchard Road is completed, that perhaps they could look at identifying the other MSA roads, such as Watertown Road or Willow Road, and determine how much money they should apply to each road. McMillan commented that it appears likely the City will be able to complete two MSA roads out of the funds that were originally allocated for one road. Bremer stated in her view this project will not be approved for state aid funds and that she is not • supportive of a mill and overlay project because the Council has been told that Old Crystal Bay Road is the worst road within Orono and that in her opinion the state aid funds should be used on that road. Bremer noted the Council has been told on several occasions that Old Crystal Bay Road is the worst road in the City and that at some point the sub base will be in such poor condition that it will not be feasible to do a mill and overlay. Rahn stated the Council discussed the soil samples at the last council meeting and that out of the five soil samples, the worst soil sample met 70 percent of a 7 -ton road. Amundsen stated there are different standards depending on what work is being done to the road. With a mill and overlay project, there would be a 7 -ton minimum standard and a road reconstruction project would require a 10 -ton road. Amundsen reiterated that it is not very likely this project would be able to be completed with state aid dollars. Rahn stated tonight is the first time he has heard there is a possibility that the road could be funded using state aid dollars. McMillan noted the prior engineering costs have been covered by MSA. Franchot stated he is in agreement with Council Member Bremer that the money is being spent in the wrong place and that he is not sure why the City should wait two years to decide where the state aid dollars should be used. McMillan commented that the RFP is out for engineering services and that she would like to have that process completed. In order for these projects to go out for bid, the City has to start almost a year ahead of time. Page 5 of 10 A- P MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 26, 2011 7:00 o'clock p.m. • (10. OLD CRYSTAL BAYROAD UPDATED COST ESTIMATES AND FINANCL4L INFORMATION, Continued) Franchot noted the Mayor had indicated the Council should look at it after the Orono Orchard Road project was completed. McMillan stated she should have stated the planning process and not the actual road construction. Rahn commented that process could be started the first of the year. McMillan stated it is unlikely construction would start before 2013 on the other MSA projects. VOTE: Ayes 3, Nays 2, Franchot and Bremer Opposed. 11. ORONO ORCHARD ROAD PROJECT UPDATE Amundsen stated the schedule before the Council tonight is the same schedule that was presented previously and that he is looking for input from the Council on what they would like to see as far as public comment. McMillan asked when the feasibility study would be ready. Amundsen indicated they could have something ready by October 101' and that there would be two • portions to the feasibility study. The majority of the road project would be funded by the City. The Metropolitan Council pipe project is fairly straight forward but there are some technical details that will need to be worked out on a longer term schedule. That work would not have much impact on the City's portion of the cost. Those details would not have much impact on the project schedule or the residents. McMillan stated she would like a press release to go out to the local paper to inform the residents that the Council will be discussing this road at the October 10"' meeting as well as have an executive summary available on the City's website. McMillan stated she would like to get the neighbors on board right from the beginning and then hold a neighborhood meeting to discuss the project after the feasibility study is available for review by the residents. At the October 24`'' council meeting, the feasibility study could be approved after the neighbors have had a chance to review the feasibility study. McMillan asked if October 24th would be too late to approve the feasibility study. Amundsen indicated that would still be within the schedule. McMillan stated she would like a couple of weeks for the residents to look at the feasibility study and gain their input prior to the Council approving the feasibility study. Rahn stated his recollection from past discussions is that the optimum bidding dates are January but yet the timeline says April. Rahn commented he was surprised to see the April bidding date and asked when this project would go out for bids. Amundsen stated the bid advertisement would be early March and that it is roughly a one -month process • from advertising the bids to Council approval. Amundsen indicated that was one of the requests from the Page 6 of 10 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 26, 2011 • 7:00 o'clock p.m. (11. ORONO ORCHARD ROAD PROJECT UPDATE, Continued) Metropolitan Council to allow them additional time to review the plans and that originally bids were scheduled to go out in February. Rahn asked if this is the same schedule that the Council has seen for the past few months. Amundsen indicated it is the same schedule that the Council has seen for the past two months but that a different schedule was presented prior to that. Amundsen stated they will work with the Metropolitan Council to expedite the process as much as possible. Rahn stated he would suggest that anything that can be expedited should be expedited. McMillan commented it would also be in Metropolitan Council's best interests to get the plans ready as soon as possible. The City Council took no formal action on this item. *12. FOREST LAKE DRIVE STORM SEWER FUNDING AGREEMENT Rahn moved, Printup seconded, to authorize Staff to finalize and execute the funding agreement • with Minnehaha Creek Watershed District. VOTE: Ayes 5, Nays 0. MAYOR/COUNCIL REPORT Printup noted there is a blood and marrow drive scheduled for Friday, September 30'h, at the Wayzata Children's Clinic. Printup indicated he spoke with Doug Franchot prior to the meeting and that he has also spoken to Chief Famiok about a letter the Council had received from a family concerned about school bus safety. Printup stated he wanted to make sure he did not offend Chief Farniok by giving a directive regarding that letter and that from his discussions with the chief it sounded like it was not an issue. McMillan asked whether there is any news from the hardcover task force. Curtis stated Ben Gozola will be presenting an update to the Council at the October 24th meeting. McMillan thanked Rachel Dodge for compiling the residents guide outlining the City's services that are provided. McMillan noted it is available on the City's website and there will also be hard copies available at the City Hall. McMillan noted she attended a storm water workshop that was held in Golden Valley. McMillan indicated they discussed TMDLs, which are mandated pollution goals dealing with phosphorus. The TMDLs are done to show that the City is making adequate progress towards storm water management. McMillan stated this is a big issue that will be coming up which requires cities to address storm water and isthe amount of money that will be required to fund storm water projects. Page 7 of 10 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 26, 2011 7:00 o'clock p.m. • PUBLIC COMMENTS, CONTINUED Dennis Walsh, 1354 Rest Point Circle, stated he has some concerns with the Council. Walsh commented being a city council member is a prestigious position and should be held in respect. Walsh noted two different times when Council Member Franchot made disparaging comments. Walsh stated in his view those types of comments bring disrespect to the person who says them and disrespect to the entire Council. He added that if Council Member Franchot does not feel this is a valuable place to be and has other things to do, perhaps he should do them and not be on the Council. CITY ADMINISTRATOR'S REPORT *13. TECHNOLOGY POLICY Rahn moved, Printup seconded, to approve the updated Technology Policy. VOTE: Ayes 5, Nays 0. *14. TONKA BAY RESOLUTION OF SUPPORT, RESOLUTION NO. 6080 Rahn moved, Printup seconded, to adopt RESOLUTION NO. 6080, a Resolution of Support for the City of Tonka Bay's Grant Application for Basketball Court Improvements. VOTE: Ayes 5, Nays 0. • 15. LIQUIDATION OF FORFEITED VEHICLE Printup asked how .the process works in determining which vehicles go to public auction and which vehicles go out for a city -wide bid. Correy Farniok, Orono Police Chief, stated he ran a report on the forfeited vehicles for 2010 and 2011 and that Orono has had approximately 30 vehicles that the police department sold through public auction or through ODESA. The majority of them, if not all, with the exception of the squad cars, were DWI forfeited vehicles. The ones marked in yellow on the report were agreed on through court action or through buy backs by the person who owned the vehicle or a plea agreement was reached that the vehicle should be sold. Farniok indicated those were the majority of the vehicles forfeited. The City sold 14 vehicles through that type of auction. Farniok indicated it is a long process prior to the vehicles being sold and that the majority of the seized vehicles have been sitting in public works in a state of disrepair for over a year. They usually have mechanical problems from sitting that long without being driven. Farniok stated in the past they have done a sealed bid process which is open to the public. The City posts a flyer at the post offices and on the city listserv. If the minimum bid is not received within a certain time period, it is then sent to the public auction. The City does lose some money on the vehicles by storing them. Rahn asked how many bids are typically received from the sealed bid process. • Page 8 of 10 • MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 26, 2011 7:00 o'clock p.m. (15. LIQUIDATION OF FORFEITED VEHICLE, Continued) Farniok indicated they typically do not receive many bids because the vehicles are in a state of disrepair and that the buyer of the vehicle is usually not allowed to drive the vehicle prior to purchase since the vehicle does not have insurance on it. Rahn commented he would rather have the police do police work than selling vehicles and asked why they are not simply towed to the Hennepin County Auction. Farniok noted the Hennepin County Auction is only held twice a year and that they tend to go through ODESA since they tow it for free. Farniok noted they had seven vehicles that were sold by sealed bid. The one that sold for $12,000 was a Lexus, but the majority of the sealed bids are for under $2000. Rahn commented it seems odd that the Police Department does not follow the same procedure every time. Farniok noted they follow what the City's Code requires. Farniok commented he will bring a recommendation back on how the code could be changed by the end of the year. Bremer noted in the past the City received more bids through the sealed bid process but that is probably not the case anymore. Mattick stated he also does the forfeiture work for the state and that by the time they are done with all the various fees and preparing the vehicle, they do not make much money off the sale of a forfeited vehicle. Getting competitive bids is the hard part of the process. Rahn stated it is a notification issue and that it might be beneficial to advertise it more. Bremer noted they are listed on the City's website. Printup moved, Rahn seconded, to approve the liquidation of a forfeited 1999 Chevy Suburban through public bid process and /or Minneapolis Auto Auction or similar business. VOTE: Ayes 5, Nays 0. CITY ADMINISTRATOR'S REPORT Jessica Loftus reported she has spoken with perhaps a half dozen engineering firms and that she will be delivering RFP proposals to the City Council next week. Loftus noted the deadline for responding to the RFP is this Friday. On October 100' the City Council will have an opportunity to vote on which engineering firm they would like to interview. Franchot asked whether the proposals are going to be screened to see whether they meet the RFP process. Loftus indicated she could do that. 0 Franchot commented it would be helpful to remove those proposals that do not meet the City's RFP. Page 9 of 10 I MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 26, 2011 7:00 o'clock p.m. • CITY ATTORNEY'S REPORT Mattick noted a closed session has been scheduled for this evening regarding litigation involving the Nygards. *16. LICENSES & PERMITS There were license or permit applications. *17. BILLS Rahn moved, Printup seconded, to approve payment of the All Funds Account. VOTE: Ayes 5, Nays 0. (The City Council went into closed session at 7:58 p.m.) I, oil III 0W, l►i 1:loll -1 Moved, seconded, to adjourn the Orono City Council meeting at 8:25 p.m. VOTE: Ayes 5, Nays 0. ATTEST: • 6e"-Z� J- - Imc &/L'� Linda S. Vee, City Clerk Lill Tod McMillan, Mayor • Page 10 of 10