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HomeMy WebLinkAbout09-12-2016 Council MinutesMINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 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 Lizz Levang, Aaron Printup, and Dennis Walsh. Representing Staff were City Administrator Jessica Loftus, Community Development Director Jeremy Barnhart, Finance Director Ron Olson, Planner Michael Gaffron, Public Works Director/City Engineer Adam Edwards, City Attorney Soren Mattick, and Recorder Jackie Young. Mayor McMillan called the meeting to order at 7:00 p.m., followed by the Pledge of AIlegiance. APPROVAL OF AGENDA Item Nos. 4, 5, 6, 7, 8, 9, 11, 12, 14, 15, 18, and 19 were added to the Consent Agenda. Levang moved, Walsh seconded, to approve the Consent Agenda as amended. VOTE: Ayes 4, Nays 0. APPROVAL OF MINUTES *2. ORONO CITY COUNCIL MINUTES OF AUGUST 22, 2016 Levang moved, Walsh seconded, to approve the minutes of the Orono City Council meeting of August 22, 2016, as submitted. VOTE: Ayes 4, Nays 0. *3. ORONO CITY COUNCIL WORK SESSION OF AUGUST 22, 2016 Levang moved, Walsh seconded, to approve the minutes of the Orono City Council work session of August 22, 2016, as submitted. VOTE: Ayes 4, Nays 0. PUBLIC COMMENTS None PUBLIC WORKS/CITY ENGINEER REPORT *4. FOX STREET ENGINEERING SERVICES Levang moved, Walsh seconded, to authorize the project engineering and design and approve Bolton and Menk's proposal for a fee not to exceed $139,000. VOTE: Ayes 4, Nays 0. *5. VICES MUNICIPAL I&I GRANT PROGRAM PARTICIPATION — RESOLUTION NO. 6667 Levang moved, Walsh seconded, to adopt RESOLUTION NO. 6667, a Resolution Approving Participation in the 2014 State Bond Funded Municipal I&I grant program. VOTE: Ayes 4, Nays 0. Page 1 of 34 MINUTES OF THE ORO -NO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. *6. 2016 CRACK SEALING — PAY REQUEST NO. 1 Levang moved, Walsh seconded, to authorize payment of $43,764.79 to Allied Blacktop Company for 2016 street maintenance crack sealing project. VOTE: Ayes 4, Nays 0. *7. BROWN ROAD TRAIL REHABILITATION — PAY REQUEST NO. 1 Levang moved, Walsh seconded, to approve Pay Request No.1 to Advanced Wall Structures in the amount of $13,599.25 for the Watertown Road Phase 2 rehabilitation project. VOTE: Ayes 4, Nays 0. *8. WATERTOWN ROAD AND STUBBS BAY ROAD REHABILITATION — PAY REQUEST NO.3 Levang moved, Walsh seconded, to approve Pay Request No. 3 to Valley Paving in the amount of $164,950.88 for the Watertown Road Phase 2 rehabilitation project. VOTE: Ayes 4 Nays 0. *9. PUBLIC WORKS MAINTENANCE WORKER APPOINTMENT Levang moved, Walsh seconded, to appoint Mr. Ronald Rice as a Public Works maintenance worker. VOTE: Ayes 4, Nays 0. PLANNING DEPARTMENT REPORT — Chad Olson, Representative 10. #16-3847 CHARLES CUDD, LLC, ON BEHALF OF DDK, LLC, 2525, 2535, AND 2545 SHADYWOOD ROAD, PRELIMINARY PLAT AND REZONING — RESOLUTION NO. 6668 Community Development Director Barnhart stated at last month's meeting, the City Council directed Staff to draft an approval resolution for this application. This is a 7 -lot single-family development located on the south side of Shadywood Road and east of Kelly Avenue. In drafting the resolution, Staff identified two key issues and one relatively minor issue. During the review of the preliminary plat, there was a discussion regarding the buckthorn and the natural area that separates the developed area on the outside of the wetland. At that time there was some thought that the existing vegetation provides a screen between the development and the adjacent residential properties. The discussion revolved around whether the buckthorn should be removed as part of the City's normal practice or whether it should be maintained. Barnhart stated he heard conflicting direction from the Council over the last couple of months regarding the buckthorn. The direction heard last time was to keep the buckthorn in that area. Barnhart noted buckthorn is an invasive species and will spread to the adjacent neighborhood area. At this time Staff is looking for clarification on whether the buckthorn should be removed. The other issue identified by Staff is the trail location. Historically the City has a trail along the county road to accommodate bike and pedestrian movement. Hennepin County has identified the need for an additional right-of-way, which Staff does not support since it will remove some additional Iots. The developer is proposing a trail within the Hennepin County right-of-way along County Road 19. As a result, Staff is looking for direction on the trail. Page 2 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 10. #16-3847 CHARLES CUDD, LLC, ON BEHALF OF DDE, LLC, 2525, 2535, AND 2545 SHADYWOOD ROAD, PRELIMINARY PLAT AND REZONING — RESOLUTION NO. 6668 (continued) The third issue relates to Lot 4 and the floor area ratio. Barnhart noted the floor area ratio for that lot will be above 0.5. The maximum allowed under the ordinance is 0.5 and the applicant is asking for some flexibility on that lot. Barnhart stated Staff is asking for Council approval of the resolution subject to any changes. McMillan asked whether the proposed trail would be inside the Hennepin County right-of-way. Barnhart stated the developer is proposing it be outside the property area and inside the county right-of- way. Historically the County has requested that trails be located outside of the right-of-way and within the developed area. Relocating the trail would impact the proposed berm and landscaping for this development. Barnhart indicated he spoke with the applicant and in their view they can provide pedestrian and bicycle movement as well as buffering. McMillan asked if approval from Hennepin County would be required if the trail is within the right-of- way. ight-ofway. Barnhart stated based on the developer's proposal, they would have to. Council Member Walsh stated his understanding from the meeting was that Staff was going to obtain some feedback from Hennepin County on this issue. Walsh stated there should be plenty of room if there is only going to be a two-lane road but that it will probably be an issue if they decide to construct a four - lane road. Barnhart stated Hennepin County is looking at options to improve that intersection and that at least a three -lane roadway will be created at some point in the future. Hennepin County has requested additional right-of-way above and beyond what already exists, which is why Staff is supporting the trail be located within the development. Council Member Levang asked how wide the trail would be. Barnhart stated Staff is requesting a I0 -foot easement. Walsh stated if it is only a three -lane road, there would be plenty of room, but that it makes sense to have the additional right-of-way just in case a four -lane road is constructed. McMillan noted the right-of-way within the development would be bermed and would require extensive retaining walls if a trail is located there. Barnhart stated Staff would work closely with the developer to provide grading plans that best accommodate a trail. Barnhart stated at this stage Staff believes they can accommodate future planning improvements without retaining walls. Page 3 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 10. #16-3847 CHARLES CURD, LLC, ON BEHALF OF DDK, LLC, 2525, 2535, AND 2545 SHADYWOOD ROAD, PRELIMINARY PLAT AND REZONING — RESOLUTION NO. 6668 (continued) McMillan asked whether any large trees will be planted in that area. Barnhart stated the plan would show the trail and any landscaping. Walsh stated anyone can plant stuff within the right-of-way but that there is a potential risk it might need to be removed at some point. Barnhart indicated Staff would use similar type of language in the resolution that was used in the Eisinger resolution. McMillan noted Hennepin County is looking at possibly redoing the 19115 intersection sometime in 2020. Hennepin County is looking at realigning the intersection and possibly adding some improvements, such as a trail. Barnhart stated the direction he has heard is to provide the easement within the development. Walsh noted the developer also wanted some flexibility on the FAR. Walsh stated if everything is factored in, such as the outlot square footage and road square footage, it would not be over the 0.5, and so he is willing to give them some flexibility on that. Levang and Printup indicated they are fine with that. McMillan asked whether there is enough landscaping being proposed to protect those homes if the buckthorn is removed. Barnhart stated Staff can ensure that the landscaping plan reflects that if the buckthorn is removed. McMillan noted she has not seen a landscaping plan and that this is a sensitive area. McMillan noted the wetland buffer should not be disturbed even though there is buckthorn in there. Walsh stated his recollection is that the residents were fine with leaving the buckthorn since it provides a lot of screening. Walsh stated from his perspective, the neighbors' desires outweigh the need to get rid of the buckthorn. Levang noted the revised plan preserves 14 more trees and that the developer has been sensitive to the desires of the residents. Council Member Printup stated he would caution against leaving the buckthorn in this development since the City would be opening itself up to having to allow buckthorn to remain on other properties. Levang noted this is an RPUD and the City is allowed some flexibility. John Stein, Charles Cudd Company, commented that there is currently a preserved buckthorn area in Creekside that was done years ago. Page 4 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 10. 016-3847 CHARLES CUDD, LLC, ON BEHALF OF DDK, LLC, 2525, 2535, AND 2545 SHADYWOOD ROAD, PRELINHNARY PLAT AND REZONING — RESOLUTION NO. 6668 (continued[) Walsh stated when it comes to the issues of the residents, the Council needs to weigh which ones have more weight. Walsh noted visibility is a big concern for the residents. Printup stated he just wants the Council to be prepared to tell other people that they can leave the buckthorn. Printup stated in his mind the Council is sending a mixed message by allowing the buckthorn here to remain. Levang commented since this is an RPL"D, the City has a leg to stand on. McMillan stated she is sensitive to the Iand clearing of this area since this lot was clear cut once in the past. McMillan stated it is best over time that the buckthorn is removed and other vegetation planted and that it will now be the homeowners who have to take that on. McMillan stated she does not want another round of extensive clear cutting given the impacts on the area. Printup stated it is setting the City up for other requests in the future. Rick Denman, Charles Cudd, stated they have done a lot to keep the neighbors happy and that they have taken steps to preserve as many trees as possible. Denman noted the neighbors are okay with leaving the buckthorn but that he will leave the issue up to the City Council. McMillan asked whether this is something that the homeowners association could address long-term. Denman stated it would be hard for Charles Cudd to monitor it over time, but if the Council is open to allowing the residents who move in here having an organized way to buffer the area, that could be an option. Printup stated the comment that the neighbors are okay with it implies that they do not care that it is in the code. Printup questioned whether the City should eliminate it from the code and leave it up to individual property owners. Printup stated he does not want to put a future Council in the position where this situation is brought up. McMillan stated that might be a good topic of discussion when the City Council discusses code issues in November. John Stein stated the Minnehaha Creek Watershed District will be adverse to removing any buckthorn in the wetland or wetland buffer areas. Stein stated the buckthorn will go into the wetland area a lot further than what everyone believes. Denman stated as it relates to the trail, they want to be careful to retain the buffer and that they are debating possibly planting a couple rows of arborvitae or whether there will be fence. Denman indicated they will work with Staff to figure out the grading for a possible future trail. Denman noted that ten feet on this particular site will have an impact. Denman stated since there are only seven lots, he wants to be careful on what they are spending on landscaping but that he wants to have a nice buffer from Shadywood. Page 5 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 10. #16-3847 CHARLES CL -DD, LLC, ON BEHALF OF DDK, LLC, 2525, 2535, AND 2545 SHADYWOOD ROAD, PRELIMINARY PLAT AND REZONING — RESOLUTION NO. 6668 (continued) McMillan asked if anyone from the public would like to comment on this application. There were no public comments. Levang moved, Walsh seconded, to adopt RESOLUTION NO., a Resolution Granting Preliminary Plat and Rezoning Approval for Property Located at 2525, 2535, and 2545 Shadywood Road, File No. 16-3847, subject to approval of the Comprehensive Pian Amendment by the Metropolitan Council, and to allow some flexibility on the FAR for Lot 4, to require a 10 -foot trail easement, and that buckthorn removal will not be required. VOTE: Ayes 4, Mays 0. *11. #16-3848 PETER JOHNSON ON BEHALF OF MICHAEL AND JANELLE SHIELDS, 364 WESTLAKE STREET, CONDITIONAL USE PERMIT (After -the -Fact) — RESOLUTION NO. 6669 Levang moved, Printup seconded, to adopt RESOLUTION NO. 6669, a Resolution Granting a Conditional Use Permit Pursuant to Municipal Zoning Code Sections 78-966 through 78-968 and 78-1405, for the property located at 364 Westlake Street, File No. 16-3848. VOTE: Ayes 4, Nays 0. *12. #16-3853 MATT AND JENNIFER NYQUIST,1125 PINE VIEW DRIVE, EASEMENT VACATION (PARTIAL) — RESOLUTION NO. 6670 Levang moved, Walsh seconded, to adopt RESOLUTION NO. 6670, a Resolution Vacating a Portion of a Permanent Flowage and Conservation Easement and Restrictive Covenant Located on 1125 Pine View Drive, Orono. VOTE: Ayes 4, Nays 0. 13. #16-3856 SARYAN CUISINE DEVELOPMENT, LLC, ON BEHALF OF PAUL AGRE COMPANY, 2380 SHADYWOOD ROAD, CONDITIONAL USE PERMIT Barnhart stated the applicant is requesting a conditional use permit to operate a bakery cafd along with a commercial production kitchen at 2380 Shadywood Road. A similar use, coffee and bagel shop, is a conditional use in the B-5 zoning district. This is the former Snyder Drug building located north of Culver's and the Holiday Gas Station in Navarre. Minor changes to the building are proposed, such as signage, and restriping the parking lot. Barnhart displayed the interior floor plan of the building. As part of the review of this application, Staff looked at the following four criteria: 1. No more than 50 percent of the gross floor area of any single building shall be devoted to coffee and/or bagel retail store uses. The applicant is proposing 32.7 percent of the building will be devoted to food/beverage retail uses. Page 6 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 13. #16-3856 SARYAN CUISINE DEVELOPMENT, LLC, ON BEHALF OF PAUL AGRE COMPANY, 2380 SHADYWOOD ROAD, CONDITIONAL USE PERMIT (continued) 2. No individual coffee or bagel retail store use shall exceed 2,000 square feet of gross floor area. A combined coffee and bagel retail store use shall not exceed 4,000 square feet of gross floor area. The combined area of the food/beverage retail is 3,900 square feet. The number of incremental parking spaces required for the coffee and/or bagel retail store use shall be calculated using the parking requirement standard for restaurant uses. A restaurant requires one space per 80 square feet of public floor area or 49 spaces. The property provides 60 spaces, which exceeds the requirement. A portion of the parking area is subject to a cross parking easement with the property now occupied by Culver's. In practice, and based on observations, Culver's customers frequently use 10-12 spaces on the subject property. 4. An individual coffee or bagel retail store use shall be limited to a maximum of 45 seats. A combined coffee and bagel retail store use shall be limited to a maximum of 60 seats. The combined number of seats being proposed is 60. The site plan provided by the applicant shows 68 parking spaces. Based on parking requirements for 3,900 square feet of restaurant, 49 parking spaces are required. There are 18 parking spaces along the east property line, which are subject to a parking and access easement with the neighbor to the east. Both parcels have rights to these spaces. The restaurant parking requirements are based on the public areas of the restaurant. The use of the building for production bakery could generate additional parking demand. Applying a manufacturing designation to the production kitchen and backroom area would require 14 spaces. The site provides adequate parking for both uses since both uses occur at different times. Barnhart illustrated the parking areas and driveway on the overhead. The Planning Commission reviewed the proposal at their August meeting. Their approval included two conditions: outdoor seating would require a reduction in indoor seating, and liquor is not to be served. In both situations, these features would negate the designation of coffee/bagel retail, requiring an ordinance amendment. Barnhart stated the applicant has some additional information he would like to present time. Staff and the Planning Commission recommend approval. Terrill Fridley, Attorney -at -Law, stated they looked at this site and recognized that it had the right characteristics for a bagel/coffee shop. The back side of the building has a great vegetative buffer to the only single-family house in the area and to the east there is another vegetation buffer. There is no direct street connection between this commercial use and any of those residential access points. In addition, there is a bike trail on the northeast corner of the building to Olive Avenue, which will be maintained. Fridley commented the vegetation provides natural buffering from any vehicle lights and noise. Page 7 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 13. ##16-3856 SARYAN CUISINE DEVELOPMENT, LLC, ON BEHALF OF PAUL AGRE COMPANY, 2380 SHADYWOOD ROAD, CONDITIONAL USE PERNIIT (continued) Fridley noted that this building, when it existed as a drug store, had a drive-through. That drive-through will not be used for the cafd and the flow of the parking lot will remain the same with a point of access on the north and south. Fridley noted there is significant parking onsite. Fridley stated as they looked at the property, they realized this was located in the B-5 zone. Fridley noted this is the only parcel in that B-5 zone in this area. The entire building will be used for the bakery/cafe component and will be owner occupied upon completion of the project. Fridley indicated they looked at the alternatives for a B-5 zone. Section 80A of the conditional use section for the B-5 zone specifically defines coffee or bagel or retail stores and then sets forth the conditions. Fridley noted their proposal meets the 50 percent of the gross floor area condition, the square footage condition is met, the required parking spaces are met, and seating is limited to 60 seats. Fridley noted the bakery cafd/retail area will total 32 percent of the building. There will be a wall physically separating that from the production kitchen, which is where all the food will be prepared at night. The space at the bottom will consist of display cases and an area where customers can pick out products. The upper part to the right is the kitchen area, with counters in front of it. The portion marked with X's is anticipated to be ventilation hoods. Storage for those products will be below that. Fridley stated the indoor seating area will be limited to 60 seats and the ADA accessible bathrooms will be kept as well as the vestibule. The hallway allowing access to the offices and to the parking lot will remain. Fridley pointed out the parking area to the left closest to County Road 19 contains 20 regular parking spaces and three handicapped spaces as it is currently laid out. Each parking space is 9 -foot wide. Those spaces will remain. In addition, there is room behind the building for three parking stalls that employees can utilize. There is also room to create six parking spaces along the side of the building and still maintain the flow for emergency vehicles. The area to the northeast has nine parking spaces as well as the triangle. Counting all those spots, there are a total of 68 spaces with the current configuration. Fridley stated as they looked at the use, it requires 63 spaces. Fridley noted there is also an easement agreement on the chain of title for this property as well as the Voyageur property. Page 2 of that agreement provides for a cross -parking easement over the 18 parking spaces on the Culver's property. If those 18 spaces are added in, there are a total of 83 parking spots. Fridley stated in his view there is adequate parking for both businesses. Fridley displayed a photograph of what the fully stocked counter will look like. Walsh noted the Planning Commission recommended no liquor license be issued for the premises. Walsh asked what their plans are in that regard for the future. Fridley stated they initially requested a beer and wine license, which only accounts for between 2.4 and 4 percent of their sales and is not material to the business. Fridley stated if they were to look at it down the road, they would seek a complex change in the ordinance. Page 8 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 13. ##16-3856 SARYAN CUISINE DEVELOPMENT, LLC, ON BEHALF OF PAUL AGRE COMPANY, 2380 SHADYWOOD ROAD, CONDITIONAL USE PERMIT (continued) Walsh stated he would be open to that in the future. Walsh commented Wayzata has a number of restaurants for lunch that offer appetizers and drinks, which makes it more of a destination spot for groups of people. Walsh noted the City is working hard to make Navarre a good destination place and that a beer and wine license would help to make this more of a destination place. Levang asked if there needs to be two entrances for patrons into the building in regards to fire safety. Barnhart stated the building code does dictate certain access and egress requirements, which will have to be met. Barnhart noted the building permit review is not done at this stage but that those regulations would apply in this case. Levang noted the menu states that evening hours would be Thursday to Sunday only. Fridley stated that would be a different type of service on those evenings but that many of those meals would be available every evening, Fridley stated during the week patrons would walk in, place their order, and the food is brought to the table. Thursday through Sunday is more formal dining where the orders are taken from the table. Levang asked if the applicant is asking that the facility would be open every evening until 10 p.m. Fridley indicated weekday evenings would be 9 p.m. and then 10 p.m. on the weekends. Levang asked if the Council can put restrictions on those hours. Barnhart stated the Council can if there is a particular concern. Staff recommended 10 p.m. to limit impacts to the neighbors and that coffee/bagel retail stores are typically not open 24/7. Walsh commented some people don't go out to eat until 8 p.m. and that they probably would not be leaving until after 9 p.m. Walsh stated 10 p.m. seems like a pretty reasonable hour. McMilIan asked if he is okay with the proposed resolution. Fridley indicated they are. McMillan asked if they are okay with the 10 p.m, closing time and the no liquor license. Fridley indicated they are. Walsh stated he is not in favor of No. 3, which prohibits the liquor license. Walsh stated if the applicant wants to come back and request a liquor license, it would need to be amended. Fridley stated if they decide to request a liquor license, they would seek an amendment of the conditional use permit and whatever other modifications might be necessary. McMillan asked whether anyone from the public would like to comment on this application. Page 9 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 13. #16-3856 SARYAN CUISINE DEVELOPMENT, LLC, ON BEHALF OF PAUL AGRE COMPANY, 2380 SHADYWOOD ROAD, CONDITIONAL USE PERMIT (continued) John O'Sullivan, stated he owns Voyageur's and Culver's. O'Sullivan stated while the parking may not be a concern, he would Iike to give the Council a little bit of history. O'Sullivan indicated he opened Culver's in 1996 and co -developed the Snyder building. O'Sullivan noted his project was only approved on the basis that there was a cross -easement over those 18 parking stalls, with the City requesting the cross -easement. O'Sullivan indicated during the summer they utilize all 18 of those parking stalls, and that his concern is if Patrick's does a great business, he could lose those parking spots. O'Sullivan indicated he spoke with Patrick and his attorney after the last meeting and that they assured him that parking would not be an issue. O'Sullivan stated he would ask that the Council and the applicant consider, at his expense, putting up signs along the 18 stalls in yellow that says these parking spots are reserved for Culver's during the lunch hour. O'Sullivan stated he is not concerned about parking during the dinner hour. O'Sullivan stated if he loses those parking stalls, he would not qualify for the parking that his site requires and that he does not want a neighbor that he is going to be in constant contention with over parking. Walsh stated he appreciates that suggestion but that he is not sure the City can impose parking on someone else's property. Walsh stated keeping the cross -easement should not change the parking needs. O'Sullivan stated if they do more business than anyone thinks they will do, he will lose the availability of 18 parking spaces, which is a big issue in their industry. O'Sullivan stated since the applicant is requesting a conditional use, in his view the City could have a discussion about that. Levang asked if Mr. O'Sullivan has any more capacity to create more parking on his site. O'Sullivan indicated he does not. Levang stated she sees the possibility for the other property to create additional parking. O'Sullivan stated even with the signs, in his view there would be plenty of parking on the applicant's property. O'Sullivan stated no one would be monitoring the people who park in those spots to see which restaurant they go into. Mattick stated if the parking is restricted on the cross -easement portion, the Council needs a justification to do that. Mattick stated he understands the neighbor's concern but that there is no demonstrated need for the restricted parking. Levang stated what it would take is a friendly agreement between the two adjacent landowners to cooperate with each other. O'Sullivan commented he raised the issue with Patrick and that it is harder to deal with the issue after the fact. O'Sullivan stated he visited the Richfield restaurant last week and that they utilized a number of parking spots at 1 p.m. Page 10 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 13. #16-3856 SARYAN CUISINE DEVELOPMENT, LLC, ON BEHALF OF PAUL AGRE COMPANY, 2380 SHADYWOOD ROAD, CONDITIONAL USE PERMIT (continued) McMillan commented this building has been vacant for a long time and that the neighbors would like to see the building utilized. McMillan stated this is a good opportunity and that she is in favor of the proposal. Walsh stated in his view it is a positive for the residents of Navarre. Printup stated his understanding is that the owner could come back before the City for a liquor license, which would reopen the parking issue. Mattick indicated that is correct. Mattick stated the conditional use permit would be reopened at that point and that the City could look at the parking again at that time. Levang noted with a conditional use permit, the City is saying that this is a coffee/bageI shop forever. Mattick stated it will be recorded against the land and that the use can last forever. Walsh moved, Printup seconded, to adopt RESOLUTION NO. 6671, a Resolution Granting a Conditional Use Permit for Coffee Bagel Retail Store Pursuant to Orono Municipal Code Section 78-764, File No. 16-3856. Levang requested both property owners do their best to work out the parking situation to avoid any long- term animosity. VOTE: Ayes 4, Nays 0. *14. #16-3857 GEORGE FUNK AND JUDY ROGOSHESKE, FINAL PLAT, CRYSTAL BAY RETREAT (540 OLD CRYSTAL BAY ROAD) — RESOLUTION NO. 6672 Levang moved, Walsh seconded, to adopt RESOLUTION NO. 6672, a Resolution Approving the Plat of Crystal Bay Retreat, 540 Old Crystal Bay Road South, File No. 16-3857. VOTE: Ayes 4, Nays 0. *15. #15-3749116-3858 PAUL CAMERON ON BEHALF OF CHAMBERLAIN CAPITAL, LLC, 185-225 OLD CRYSTAL BAY ROAD NORTH — FIliAL PLAT — RESOLTTION NO.6673 Levang moved, Walsh seconded, to adopt RESOLUTION NO. 6673, a Resolution Approving the Plat of Crystal Bay Estates, 185 and 225 Old Crystal Bay Road North, File No. 15-3749 and #16- 3858. VOTE: Ayes 4, Nays 0. 16. #15-3763116-3860 CHRISTOPHER BOLLIS, 200-250 STUBBS BAY ROAD NORTH — FINAL PLAT REVIEW Gaffron noted last September the Council adopted Resolution No. 6536 granting preliminary approval for a 7 -lot residential plat. The property is located at 200-250 Stubbs Bay Road North. Page 11 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 16. #15-3763/16-3860 CHRISTOPHER BOLUS, 200-250 STUBBS BAY ROAD NORTH — FINAL PLAT REVIEW (continued) The applicants have applied for final plat approval in order to finalize the project. Earlier this year the applicants brought forth to the Planning Commission a 5 -lot plat but have chosen to go forward with the 7 -lot plat. Gaffron indicated there are a few questions that have come up for discussion and are listed as follows: 1. Road design. The City's consulting engineer review has indicated that certain horizontal curves in the road design do not meet the City's 275 -foot minimum radius requirement for a 30 mph road. The long curve leading to the new cul-de-sac has a 250 -foot radius and is not an issue in Staffs opinion. However, the wobble configuration just north of the existing cul-de-sac has a series of nonconforming curves in an attempt to save trees in this area and maintaining a screening buffer to the neighbors to the south. The question is whether saving trees is a justification. The stronger justification might be that the wobble in the road will have a traffic calming effect, which addresses speeding concerns voiced by the neighbors during the preliminary plat review. 2. Road construction process. Condition 8 of the preliminary plat resolution is a requirement that road construction equipment gain access via Stubbs Bay Road through Outlot A to avoid traffic on Kintyre Lane. The applicants' road contractor has advised them that the equipment for the paving process, including asphalt hauling, must use existing Kintyre for access to avoid damage to concrete curbing that will be installed prior to paving. The southerly 250 feet of the new road will have curb and gutter, while the northerly 450 feet will be a rural section with ditches. Staff would recommend that the existing condition of Kintyre Lane be carefully documented prior to road construction, and any damage due to that construction be repaired by the developer. If Kintyre Lane cannot be used, the paving contractor will have to find an alternative access route through Outlot A. 3. Future use of the driveway in Outlot A, Tamarack Hill. The applicants have requested that the gravel driveway currently serving the existing homes at 300 and 350 Stubbs Bay Road North be allowed as access for Lots 5 and/or 6 for some indeterminate amount of time, potentially related to construction of homes on either lot prior to completion of the new road and cul-de-sac rom the south. Lots 5 and 6 cannot have accesses to both the north and south based on a code requirement. Additional issues for consideration include: a. If both Lots 5 and 6 gain access from the outlot driveway, that is a total of three homes using a shared driveway, which is not allowed and which triggers an upgrade of that driveway to private road standards. b. Temporary use of the existing 600 -plus feet long gravel driveway for new construction on a new Iot should be, at a minimum, be subject to review by the Fire Department for emergency accessibility. Page 12 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 16. #15-3763116-3560 CHRISTOPHER BOLLIS, 200-250 STUBBS BAY ROAD NORTH — FINAL PLAT REVIEW (continued) C. There is concern regarding the creek crossing at the east end of that driveway, which is fairly narrow. d. Any permanent use of that driveway as access suggests that Lots 5 and 6 must be treated as `through' lots, abutting roads at opposite lot boundaries, which affects setback requirements for accessory structures. e. The City Attorney has commented that the driveway access easements and covenants should be reviewed by the applicants. If lots 5 and 6 abandon access to the driveway in favor of the new cul-de-sac, they might still be responsible for maintenance of a driveway they are not using. f. If the driveway is abandoned, it should be revegetated to eliminate unnecessary hardcover. Gaffron stated Staff will bring a final plat resolution in two weeks but would like direction on the three issues noted above. Chris Bollis, 350 Stubbs Bay Road, stated the purpose of the wobble in the road is to preserve additional trees. If the road comes directly off the outlot, 18 trees versus 14 trees will be impacted. The trees in red are the ones that will be saved due to the wobble. Bollis stated when they were Iooking to subdivide the property, they were looking at conservation and preservation, which is what they are attempting to meet. The second benefit of the wobble is that it slows traffic down. Bollis noted they are not asking for the road construction equipment to come up Kintyre Lane and that they want all the traffic to come down the existing gravel driveway. The contractor has said he has no problems with that but that the special paving equipment has to come down Kintyre. As a result of grading the road and putting in cement curb and gutter, there will be a two -foot drop and that the paving equipment cannot go over that drop. Bollis indicated they are talking about one day where the paving equipment will be there. Bollis submitted a letter from the contractor. Walsh noted the first 250 feet will have curb and gutter and the rest will not. Walsh stated in his opinion the road will have an unfinished look to the road. Bollis noted there will be two lifts of asphalt put down and that one will be done this fall and the other will be in the spring. Bollis stated there is a curb and gutter cul-de-sac which that portion of the road will connect to. The curb and gutter allows more trees to be preserved rather than grading out for ditches. Bollis stated there is a natural transition going into it and is also part of the stormwater management plan. Bollis noted it is easier if the runoff is directed towards a filtration area rather than going to one specific point on a curb and gutter road. McMillan commented Orono has always preferred less curb and gutter, but that there are points where the water needs to be channeled a certain direction. Gaffron asked if the bituminous trucks wi1l also be going up and down Kintyre. Page 13 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. M. #15-3763/16-3860 CHRISTOPHER BOLLIS, 200-250 STUBBS BAY ROAD NORTH — FINAL PLAT REVIEW (continued) Bollis stated if the trucks can access through Stubbs Bay, they will do that. Bollis stated the goal is to eliminate use of Kintyre Lane for construction as much as possible. Bollis stated as it relates to the third issue, future use of driveway, he has a proposal for that use. Gaffron displayed an aerial view of the driveway. Bollis indicated he is proposing that that driveway be used for temporary access until primary connections are made to Kintyre Lane for Lots 5 and 6. There is an existing house on Lot 5, and if the plat is recorded as is, they will lose access over the outlot. Bollis stated he is also asking for temporary access for the purpose of constructing a house on Lot 6, which will give the builder the entire winter to construct the house in the event the road is not completed this fall. Bollis noted they exceed the fire requirements for the current driveway and use of the driveway over the outlet will just be temporary. Bollis stated he would propose that the permanent access be established within 60 days following the final lift of asphalt on Kintyre Lane. Bollis stated in this situation he feels it would be appropriate the driveway remain as a secondary access point. There is an accessory building on Lot 5, which has its entrance off the current driveway. Bollis stated if the house on Lot 5 is demolished, it would be difficult to navigate a driveway back to the accessory building would be virtually impossible given the topography. Lot 6 would also have that temporary secondary access. Bollis stated he does not see how that triggers a corner lot. Walsh commented it appears the driveway access is on Lot 5 but not Lot 6 and that they would need to go through Lot 5 into Lot 6. Bollis indicated it actually splits the lot line. Bollis noted there would be an appropriate easement for vehicles to cross Lot 5 into Lot 6. Levang asked if he is suggesting that that will be permanent. Bollis indicated he would like the secondary access to be permanent if those lot owners wanted that in the future. Bollis stated he does not want to take that option away and that the infrastructure is already there. The accessory building would be accessed off of that on Lot 5. Levang asked what the accessory building is. Bollis indicated it is a small barn. McMillan stated her concern is the neighbor to the west having more activity on the road than what was originally anticipated. '_McMillan stated in her view it is okay short-term but not long-term. Bollis noted it would be a secondary access and that the actual use in the future versus today would go down considerably once the new road is in. Levang asked how long the road has existed. Page 14 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 16. #15-3763116-3860 CHRISTOPHER BOLLIS, 200-250 STUBBS BAY ROAD NORTH — FINAL PLAT REVIEW (continued) Bollis stated it has been a driveway since approximately 1978. Gaffron noted the house to the west was constructed five to seven years ago. Gaffron stated those two lots were previously one lot. McMillan commented she is not sure she would allow a secondary access for the accessory building only. Walsh stated if Lots 5 and 6 access that, it triggers an upgrade of the road and that the applicant is looking to keep it as a secondary access. Walsh stated the question is whether that is acceptable without the upgrades. Bollis noted those two lots do not technically have frontage along Stubbs Bay Road. McMillan stated her concern with the wiggle in the road is that people will likely drive down the middle of the road, which is something to think about with regard to sight lines. Walsh stated the neighbors feel that anything that potentially has the ability to slow traffic down is a positive and that he is definitely supportive of the wiggle to help that. McMillan indicated she is supportive of it as well as long as it works. McMillan asked if private roads can install their own speed bumps. Gaffron stated the City would not be opposed to it but that he is not sure whether the neighbors would be in favor of it. Walsh commented he now understands the concept of the curb and gutter as it relates to runoff. Walsh stated if the construction traffic can just be limited to the paving equipment, that would be okay, and that in his view the asphalt trucks can handle the drop-off. Printup asked if the secondary access could be a construction road. Bollis stated he is proposing to use it to either remodel the existing house or build a new house on Lot 5. Bollis noted it is actually a driveway and not a road. Walsh stated he would be supportive of that since he has not heard of any issues why that would be a problem outside of the rule requiring an upgrade of the driveway. Levang asked whether the applicant has any comments on the other items listed in Staff's report. Bollis indicated he does not. Levang asked if Staff was looking for something specific. Gaffron stated he wanted to bring those to the attention of the applicant and the Council. Gaffron indicated Staff will bring the final plat resolution before the Council in a couple of weeks. Page 15 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 16. #15-3763116-3860 CHRISTOPHER BOLLIS, 200-250 STUBBS BAY ROAD NORTH — FINAL PLAT REVIEW (continued) McMillan asked whether anyone from the public would like to continent on this application. Tom Fleming, 300 Stubbs Bay Road, stated he believes it makes sense to have the ability to construct homes on the lots but that his concern is if something happens over time and the road is not constructed, whether that will bleed into Lots 4 and 7. Fleming noted there is soil compaction that takes place with road construction and there are mature trees. Fleming stated there has to be some timeline and that it cannot go on forever. FIeming stated he is a little concerned about a secondary access since it is not part of what Orono typically does. FIeming noted the City has very specific ordinances about multiple access points. Fleming indicated he is the third owner on Outlot A and that he does have concerns about how it is plotted. Fleming noted Tamarack Hill will be superseded by Kintyre. Fleming commented he is not sure how the ownership will go as well as the requirements of maintenance. Fleming indicated he would prefer to see the secondary access eliminated since there is a road being built. Fleming stated ultimately he is willing to take responsibility for his portion of the outlot. Walsh noted the City Council really does not have much control over the driveway since both Mr. Bollis and Mr. Fleming own the driveway and that it will need to be an agreement between the two of them. Walsh asked if he would have any problem to allowing them to use the access to construct the homes. Fleming indicated he would not but that he does not want to see it bleed into more homes Gaffron noted the development agreement does not allow a home to be built until there is one lift of asphalt laid. Gaffron stated it is reasonable to use the driveway to construct homes on Lots 5 and 6. McMillan concurred that there needs to be some closure to the road. Walsh commented it might be five years before both homes are constructed and that perhaps there should be a sunset clause on it. Gaffron stated what the City typically requires is that the secondary access be graded out so it is not usable once the two homes are built. Gaffron indicated Staff will bring back the approval resolution at the next Council meeting. The City Council took no formal action on this item. (The City Council took a recess from 8:48 p.m. to 8:53 p.m.) 17. LEVEL II HOME OCCUPATION LICENSE, 4415 FOREST LAKE LANDING Barnhart stated the property owners at 4415 Forest Lake Landing would like to use their property for indoor piano concerts for 15 events per year for up to 40 people per event. The patrons would be shuttled to the event using a commercial shuttle. Since the events will go later than 7 p.m., it triggers a Level II home occupation. Page 16 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 17. LEVEL II HOME OCCUPATION LICENSE, 4415 FOREST LAKE LANDING (continued) Barnhart stated home occupations are permitted in residential districts but they must meet the 16 regulations outlined in city ordinance. If a home occupation does not meet those requirements and is not listed as a prohibited home occupation, the business is eligible to receive a Level II home occupation Iicense granted by the City Council after a public hearing. Level II licenses are annual licenses, expiring at the end of September each year. The applicants are proposing to hold 15 piano recitals in their home. The 15 events will occur during Friday, Saturday and Sunday evenings in June and August. The proposed dates are June 2, 3, 4, 9, 10, 11, and August 4, 5, 6, 11, 12, 13, 18, 19, and 20. These events will occur from 7-9:30 p.m. Similar events were held the summer of 2016. The property owners received a special event permit and then discovered that a special event permit was not necessary because it did not meet the definition of a special event. The applicants will sell tickets to the event, with a maximum capacity of 40 patrons. Patrons are shuttled to the site to manage traffic and parking congestion on Forest Lake Landing. The shuttle leaves at 9:45 p.m. The shuttle will minimize the impact to the neighborhood. During the event, the shuttle bus parks on the applicant's property, with patrons parking at a nearby church with the church's approval. Staff is recommending approval the Level II home occupation license. Tim Line, Applicant, stated they have been touring and traveling for 27 years and have performed on over 2,000 stages. Line stated Lorie has produced over 40 albums and music books that are marketed across the United States. Last year Lorie was introduced into the Minnesota Music Hall of Fame. Line stated when they are touring and traveling, it is very physical, especially when it comes to moving the piano. Line stated they are proud to be residents of Orono for the past 27 years. Line stated this year they came up with the great idea to hold piano recitals in their home. Line indicated they wanted to share the music with the community, friends, fans, friends, and neighbors. The goal was simply to enrich people's lives. Line stated for those in attendance, it was very well received and that they would like the opportunity to do so again next year. Line stated in their view the application is very complete and thorough and that he would ask the Council to consider a Level 11 home occupation license. Line noted two Ietters were presented. In the petition that was presented to the neighbors, Planning Commission Schoenzeit states we are going to use our home as a concert hall, which was communicated to other neighbors. Line stated that has never been their intent and that they have been very mindful of the neighbors. Line stated in the letter dated June 13, Planning Commission Schoenzeit stated to the City that they were selling alcohol, which is absolutely not true. In addition, Planning Commissioner Schoenzeit stated in that same letter that they had turned their home into a concert hall. Line noted this is not a rock and roll event but a piano recital where they have opened up their home to people who enjoy music. The event consists of Lorie at the piano, himself welcoming the guests, and Michelle who helps manage the event. Line stated his son also helped with the people. Line stated lastly, Planning Commissioner Schoenzeit's main complaint centers around parking and traffic. Line noted their request minimizes traffic by utilizing a van, with two trips in and two trips out. Page 17 of 34 MINUTES OF THE ORO -NO CITY COUNCIL MEETING Monday, September 12, 2015 7:00 o'clock p.m. 17. LEVEL II HOME OCCUPATION LICENSE, 4415 FOREST LAKE LANDING (continued) Line stated there have also been some misrepresentations in a Ietter dated September 12 that he would like to address. Line stated the shuttle van is not a commercial concert bus and is instead a van that seats 20 people. In addition, Commissioner Schoenzeit's wife refers to traffic on Tonka View that has been created from these events. Line noted the driver of the shuttle van never drove down that road and was specifically told to drive down County Road 19. The same driver was utilized on all evenings. Line indicated he also was on the van to ensure safety and consideration for the neighborhood. Line stated Commissioner Schoenzeit's wife also states that they misled the church, which is absolutely the farthest someone can get from the truth. Line indicated he would like to submit a letter from the pastor of the church. In the letter the pastor clearly confirms the dates and times of the events and that she prays that their event will be a success. Line stated that does not sound like there was a fair representation in the letter. Line stated he would like the Council to consider the petition null and void as it is since it misrepresents their request and distorts the facts. Line stated he simply would like an opportunity to inform the neighbors of the facts and the true usage. ?Mayor McMillan opened the public hearing at 9:05 p.m. Julie Close, 1214 Wildhurst Trail, stated she lives on the path towards the Line's house. Close stated she thinks Lorie is an incredibly talented musician, but that she would like to say a few things about the entire presentation that the opposition of the neighbors is based on perception but not on the actual events. Close stated with the first go around there was a lot of traffic on Wildhurst. Close stated there are a lot of questions about having 40 people attend the events. Close stated even with a commercial bus, there are questions whether there will simply be two runs down the road or more. Close stated they can call it a recital but that it is also a concert. Close stated this is a money making opportunity for the Lines, which is why they are here under the home occupation license. Close stated there are questions about whether the patrons will be waiting up at the parking lot or whether there will be more shuttle busses running back and forth. Close stated a business owner would make sure no one is waiting, but what if it is raining. Close stated a 20 person bus is a pretty good sized bus and that Wildhurst is quite narrow with a lot of families that have young children who ride their bikes and walk down the street. Close noted these are prime summer weekends and prime summer hours. Close stated they are trying to enjoy their neighborhood outside and that they are talking about adding a big vehicle driven by someone the residents don't know. Close noted Orono ordinances provide reasonable limitations, which limits the use to no more than five customers at a time. Close stated this use is not within the character of the neighborhood and that the neighbors are outside trying to enjoy where they live. Close stated she appreciates the Line's desire to do this but that the rest of them have homes that they are trying to enjoy with their families. Close stated the characterization that the neighborhood does not understand this is false since the neighbors have already experienced it this summer. Page 18 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 17. LEVEL H HOME OCCUPATION LICENSE, 4415 FOREST LAKE LANDING (continued) Close stated now that they know it is a business, it raises a lot of concern. Chris Morgant, 1003 Wildhurst Trail, stated he lives at the end of the road and that he has to travel down the road to get to his house. Morgant indicated he does not care what the Lines do but that he does care about how they do it. Morgant stated when the road is unduly clogged, it is inconvenient for the residents. Morgant stated if this is going to happen often, he is not a fan of it. Morgant stated if the City would fix the road, he probably would not object to it and that there has to be a good way to do this. Gail Blackstone, 4465 Forest Lake Landing, stated she and her husband are here to support the request for a Level H home occupation. Blackstone noted they are one of the three closest homes to the Line's house. In regards to the concerns about the regulations not being met, Blackstone stated she can personally say that they have not had any issues with the valet that was originally there. Blackstone indicated in June she had a graduation party for her daughter and that she was concerned about the number of people coming and whether the residents would be confused with one of these events which it wasn't. Blackstone stated the commercial shuttle bus has improved the parking situation. Blackstone stated in regards to the hours of operation, her bedroom faces out on the street and she and her husband have not experienced any problems with noise. Blackstone stated in her view there could be some confusion in regards to the petition and that she spoke to one of the neighbors who was wondering whether there could also be a restaurant in the neighborhood. Blackstone stated she would like the Council to know that she and her husband are very much in support of this license. Stacey Schoenzeit, 4480 Forest Lake Landing, stated she would like to tell the Council that the initial letter was not created or known by her husband and was created by a group of neighbors. Schoenzeit stated the neighbors came to her asking what is going on given all the parking in the neighborhood. Schoenzeit stated for the first two weeks in June, there were cars everywhere and that the Lines sent the neighbors a note informing them that they were having a private event. Schoenzeit noted the Lines have told the neighbors in the past that they are having an event but that it is usually one night. Schoenzeit stated one time she saw some people walking down the street who were excited about going to a concert and that the person showed them her ticket. Schoenzeit stated if you go on the Line's website, you can see that they are selling tickets to the events. Schoenzeit commented this is a neighborhood of dozens and dozens of children and that her husband had no clue about what was being written or going on until the neighbors approached here. Schoenzeit stated some of the other neighbors that live closer to the Lines are empty nesters and no longer have children living in the homes. Schoenzeit stated in her view the Lines do not understand that some of the other neighbors are worried about traffic and safety. Schoenzeit reiterated that her husband was not the instigator in this situation. Tim Line stated he thought it was from Loren since he was the person who took the documents around and that the petition was included with the letter. Line stated he would like to apologize to Loren. Page 19 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 17. LEVEL II HOME OCCUPATION LICENSE, 4415 FOREST LAKE LANDING (continued) McMillan stated it appears there was some confusion about the events held earlier this summer. McMillan asked Mr. Line to explain how the events were run. Line stated for past events they always used valets and that the people parked on the north side of the road, which is what they were told should happen. McMillan asked when the shuttle service started. Line indicated it was in August. Line stated it literally was two trips in and two trips out. Tom Bart, 4464 Forest Lake Landing, indicated he lives three houses down from the Lines and two houses down from the Schoenzeits. Bart noted they were out of town in June and so they did not experience the traffic or the valet. Bart indicated they were here in August and that they did not know the events were going on. Bart stated he did not see any difference in traffic. Bart noted there is a lot of traffic on these streets and that there are garbage trucks, mail service, and neighbors traveling down the road. Bart stated in his view this does not add significantly to the traffic. Bart noted they have only lived there a couple of years but that the Lines have been great neighbors and that he supports what they are trying to do. Gail Blackstone stated she does support the desire to fix the road. Blackstone noted she has three children, with the youngest being 18. Blackstone stated she has noticed in the past that the biggest problem with cars on the road is the neighbors who drive very quickly or friends. Blackstone stated she has seen this van and that it was going very slowly down the road. Blackstone stated perhaps the neighborhood might be interested in adding speed bumps to slow the traffic down. Rick Zechman stated he Iives on the corner of Wildhurst Trail and Forest Lake Landing. Zechman stated he has not noticed any problems with traffic and that there are not a lot of kids playing on Wildhurst Trail. Zechman indicated he is here to support the Lines. Loren Schoenzeit, 4480 Forest Lake Landing, stated this is not personal against the Lines and that if any family, friends, and neighbors were going to open a business or a commercial concert hall in their neighborhood, they would also say no and that it is not part of the code. Schoenzeit stated this is a quiet street on a dead end. Schoenzeit stated it is important to note that the name of the application is misleading and that the Lines are holding private concerts, 15 a year. The tickets are $150 apiece on Ticket Master like website. Schoenzeit stated if 40 tickets are for sale for 15 concerts, this is not a private event. Schoenzeit stated so far this summer there have been 15 concerts but that there is also another seven that the Lines have sold tickets to in November. Schoenzeit stated that adds up to 22 concerts. Schoenzeit stated the other thing is, when someone goes through an application before the City, the City looks at whether they meet the standards. To be a home occupation business, someone needs to meet all 16 of those criteria. If you do not, you can apply for a Level II license. Page 20 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 17. LEVEL II HOME OCCUPATION LICENSE, 4415 FOREST LAKE LANDING (continued) Schoenzeit stated in the case of a quiet residential neighborhood, the residents of the neighborhood have to take precedent, but if the events could take place without causing any disturbance to the neighborhood, then the City should grant the license. Schoenzeit stated the diesel bus that they use is not able to take the turn onto Forest Lake Landing and stay on the correct side of the road. When the bus does their drop-off, they have to back up slowly with the beep, beep, beep. Schoenzeit stated the bus arrives at dinnertime and leaves at bedtime. Schoenzeit stated while some of the neighbors might be empty nesters, it is important to the families with children. Schoenzeit noted criteria number five is whether traffic in any way will affect the adjacent neighboring properties, and the answer is yes. Schoenzeit stated this is a commercial use of a property that is zoned residential. Criteria number eight states no noise at the property line. Schoenzeit indicated the bus beeps and smells. With regard to criteria number 12, the business has to operate between 8 a.m. to 7 p.m. but these events go from 6:30 to 9:00 or 9:45. Schoenzeit noted a home business is also allowed five customers per day, with two at the same time. Schoenzeit stated this is eight times the limit and that the homes are close together. Schoenzeit stated in order to be a legitimate, by the book home occupation, someone needs to meet all 16 of these criteria, and if you do not meet those criteria, you apply for a Level I1. Schoenzeit stated that there will be a minimum of 15 concerts, 40 customers, and it does not work. As a result, the neighbors circulated a petition and they called the police. The police, in turn, gave them a little plastic sign to slow the traffic down. Schoenzeit noted a while back in 2001, the neighbors attended a public hearing on October 22, 2001, for a more intense use down at the end of the street. The question would be, if someone besides the applicant was trying to open an intense home business of this type, what they would say. Schoenzeit noted in that situation, the Lines submitted a letter to the City about what this means to our quiet neighborhood, which was increased traffic, parking concerns and, most of all, safety concerns for the children in our area. Schoenzeit stated this was when the City was proposing to open the public landing at the end of the street where there might be two swimmers and a canoeist once a week. The Lines stated because there is no parking at the end of the street, this will not work. Schoenzeit commented now it appears to be okay with the Lines and that he is at a loss for the flip-flop. Schoenzeit stated if the Council thinks this is a great idea and approves it, they should question certain things. Schoenzeit stated the Council should know whether the building is sprinkled. Schoenzeit stated if this is going to be a brand new concert hall in Orono, the City will want to make sure that it is handicap accessible, with ADA bathrooms. Schoenzeit stated the City should want the building to be safe. Schoenzeit stated he is guessing that this residential house does not meet the codes. Schoenzeit stated the other concern is if this is allowed, what is there to stop anybody else with a big house from opening up their house as a commercial concert hall. Schoenzeit stated for the sake of the children, the neighbors, the petition against it, he would strongly request that the City Council deny this business license. McMillan closed the public hearing at 9:33 p.m. Page 21 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 17. LEVEL H HOME OCCUPATION LICENSE, 441.5 FOREST LAKE LANDING (continued) Printup asked whether No. 12 would be eliminated if the hours were noon to 3:00. Barnhart indicated it would as long as they closed their doors before 7 p.m. Barnhart noted home occupations are generally 40 -hour weeks and this is 15 days a year. Barnhart indicated it is kind of a trade-off. McMillan commented it is kind of a hybrid between a special event and a home occupation and blurs both of the lines. Printup asked for some examples of delivery of products that the City has had in the past. Barnhart stated what he has seen in his career is delivery of wood product for a wood worker to the delivery of the finished product requiring straight line trucks or larger vehicles. Barnhart stated the question is whether a piano recital is a product to be delivered. Typically what someone might expect is some sort of product that is manufactured or reconditioned on the property that does not require a lot of nonresidential equipment. Barnhart stated generally true manufacturing is not permissible since it tends to be more intense and that what is being sold here is the music. Printup asked if a music teacher would be comparable. Barnhart indicated that would be a Level I unless they have 40 students at a time. Walsh stated the Lines live close to him and that once you jog up the hill, it is a very steep hill and goes all the way down past Forest Lake Landing. Walsh stated the sight lines are not very good and that there are always kids playing basketball and riding bicycles. Walsh stated there is plenty of activity in the neighborhood. Walsh stated the reputation of the Lines as a music phenomenon speaks for itself and that the City can debate the details of the bus runs, the number of people, etc., but in the end what he is seeing is an event center. Walsh stated from his perspective, he does not care what neighborhood an event center is in since it changes the character of the neighborhood. Walsh stated the Lines could perhaps hold the event at the church. Walsh stated there are other issues with event centers that have different impacts, but to create an event center in a neighborhood completely alters the character of the neighborhood. Levang indicated she drove the streets earlier today and that they are very narrow. Levang stated she saw the idea that there would be a shuttle bus and neighbors attempting to get in and out, as a problem. In addition, this is a quiet, residential neighborhood, the street is a dead-end, and there is not any off-street parking. Levang indicated she had difficulty turning around and had difficulty parking. Levang stated she sees safety concerns with that. Levang stated in her view the hours are not appropriate. Levang stated even though she is an empty - nester, she has kids and other people at her house quite frequently. In addition, the noise from ticket holders going in and out is difficult to control. People will be excited when they come and when they leave. Page 22 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 17. LEVEL H HOME OCCUPATION LICENSE, 4415 FOREST LAKE LANDING (continued) Levang stated she is not sure how the City can allow this type of use in a quiet residential neighborhood and that it perhaps needs to be done in another place. Levang indicated she will be voting against it. McMillan stated she senses when the concerts are happening that there is not a problem with the noise but that the issue is getting the people to the event. McMillan indicates she lives on two dead-end streets and people have to be shuttled in for certain things. McMillan stated she understands this involves only four or five shuttle trips, but the feeling is that there are shuttle buses in the neighborhood, which gives a different feel to the neighborhood and that there is something commercial going on. McMillan stated when she looks at some of these dates, they can be an entire weekend, which can have , pretty big impact to the neighborhood since there will be 120 people going to and fro in the neighborhood for a commercial event. McMillan stated that is the issue she is struggling with. McMillan commented she is not sure if there is a compromise, but that what she sees is a lot of June and August weekends, which is pretty intense. McMillan stated she is not sure if there is a way to dial it back to the point where the neighborhood can tolerate it. Mc.%4illan stated people value their privacy, especially on private roads. Printup stated he is leaning the other way a little bit. Printup stated the traffic issue can be a bummer for people corning in and out but that it sounds like it is pretty well organized. Printup stated it is too bad the hours cannot be adjusted to the daytime. Printup stated it sounded like it was pretty well planned and prepared for but that he is just one vote. McMillan asked if the applicants would like to table their application. Line stated they are not hard and fast on 15 events and that they do have four dates booked in November but that they did not sell the other shows. Line indicated they did that under the fact that they had previously obtained a special event permit. Line stated they have been very straight forward on all of this and that the dates are not hard and fast. Line indicated the Sunday shows can go during the day. Line stated the overall goal is not to make the neighbors mad but to share Lorie's music with others. Line indicated they will abide by the Council's decision. Barnhart stated the Council could deny or table the application and that the applicants could amend their proposal based on the feedback. Walsh asked how this application came before the City Council after 15 events have already occurred. Barnhart stated a special event permit was requested in June, which goes through the clerk's office. That permit was issued for that event and the City later learned it was multiple events. Barnhart stated the application said several events but staff reviewed it as one event. Barnhart stated the clerk perhaps misread the application and that once Staff learned it was multiple events, they informed the Lines that they needed a different type of permit and Staff has been working with them since. Barnhart indicated the Lines were out of the country in July but that they have been forthright with Staff. Walsh asked who said it was okay. Page 23 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 17. LEVEL II HOME OCCUPATION LICENSE, 4415 FOREST LAKE LANDING (continued) Barnhart indicated it was the City Clerk. Loftus stated the City Clerk works through the criteria on the special event permit, which includes working with the Police Chief to ensure there is a plan to handle the number of people parking. Loftus stated if it meets those criteria, it gets approved. Loftus stated the City Clerk believed there was a series of three concerts over the weekend in June but then the City learned from the neighbors that there were additional concerts being sold online. The applicant was then contacted. Printup asked whether the Council would be open to allowing it in November since it has gotten to this point and something fell through the cracks. Levang stated that sounds flexible but the concern is what the neighbors would think since they are the ones being burdened by this. Levang stated in her view it would be unfair to them to not take their comments into consideration. Loftus noted the special event permit did not grant permission for the November events. McMillan stated the Council would require additional information on the November events and that they are not sure what days of the week they are. McMillan stated the Council may not be able to resolve that tonight. McMillan stated Staff needs to know about this so the City can deal with it. Walsh stated in his view it is still an event center. Printup moved to table the Line's application. The motion died for lack of a second. Walsh moved, Levang seconded, to deny a Level H license for Lorie and Tim Lane, 4415 Forest Lake Landing. VOTE: Ayes 3, Nays 1, Printup Opposed. *18. NUISANCE BUILDING ABATEMENT, 325 CRESTVIEW AVENUE —RESOLUTION NO. 6674 Levang moved, Walsh seconded, to adopt RESOLUTION NO. 6674, a Resolution Ordering Repair or Removal of Nuisance Conditions for the property located at 325 Crestview Avenue. VOTE: Ayes 4, Nays 0. * 19. RELEASE OF AGREEMENT Levang moved, Walsh seconded, to direct the Mayor and City Clerk to sign the release agreement as drafted for the property located at 3423 Shoreline Drive. VOTE: Ayes 4, Nays 0. 20. #16-3854 ASHISH AGGARWAL ON BEHALF OF APEX HOLDINGS, LLC, 2635 KELLEY PARKWAY, SKETCH PLAN REVIEW Gaffron stated this is a sketch plan review for a 70 -unit, 2 -story residential facility including 24 independent living, 24 assisted living, and 22 memory care units. Page 24 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 20. #16-3554 ASHISH AGGARWAL ON BEHALF OF APEX HOLDINGS, LLC, 2635 KELLEY PARKWAY, SKETCH PLAN REVIEW (continued) The property is serviced with City sewer and water, with access off of Kelley Parkway. Development of the property would require rezoning to RPUD, an amendment to the Comprehensive Plan, and re -platting from an outlot to a lot per the provisions of the Stonebay PUD No. 4 Agreement. The goal of the review is to provide the developer with an overview of the pertinent City ordinances and how they affect the proposed development. The property is located directly across Kelley Parkway from the Stonebay Lofts at the west end of the long stormwater pond. The property is governed as part of the Stonebay Master Development Agreement and is guided and planned for commercial office use. This property has the potential to assist in meeting the City's residential urban density goals in order to allow continued development of Orono's sewered lakeshore areas as intended. Staff recommends the City Council's review of the sketch plan address the following: Is there justification for the necessary CMP amendment and rezoning to allow the guiding of this property to be converted from commercial to resident? If that conversion is not allowed, what other uses for this site might be acceptable? 2. Is the Council comfortable with the density of the development at 20 units per acre gross? 3. If the developer had to construct a third story over part of the building in order to meet required setbacks and hardcover limits while maintaining the same 70 units, how would the Council react? Gaffron noted the applicant is not proposing three stories at this time. 4. Is there sufficient justification for flexibility in terms of hardcover and proximity of the building to Wayzata Boulevard. The Council should discuss whether this development should be required to create the RPUD standard 10 percent private recreation space. Staff recommends that a 10 -foot trail easement be retained along the south boundary of the property. 7. The conceptual landscaping layout does not provide any buffering from Wayzata Boulevard. Gaffron displayed a sketch of the proposed building and interior layout. Gaffron noted the stormwater pond was originally sized to accommodate all elements of Stonebay and no additional ponding will be required on this site. Because the site is so flat, the assumption is that in order to make drainage function adequately and allow for underground parking, the site will require some amount of fill, likely raising the main floor above the level of Kelley Parkway. An internal storm sewer system is likely to be constructed on the site which will discharge to the pond. Page 25 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 20. #16-3854 ASHISH AGGARWAL ON BEHALF OF APEX HOLDINGS, LLC, 2635 KELLEY PARKWAY, SKETCH PLAN REVIEW (continued) Gaffron indicated he would like to turn it over to the applicant so he can explain his proposal in more detail. Ashish Aggarwal, Applicant, stated he has owned the property for a number of years and that they have looked at a number of possibilities for the site. Aggarwal noted commercial at the present time is more concentrated to Wayzata and that senior housing is one of the things that Orono lacks. Aggarwal stated one of the characteristics of Orono is that people who live in Orono love to stay in Orono. Aggarwal stated they have looked at the future and what could be done with the site and that in their view this is a great site for senior housing. Aggarwal noted 72 units is the minimum size that they can have in order to be financially viable, The building was kept at two stories so the building will not be too tall and will blend in nicely with the townhomes and condominiums. Aggarwal noted he is an investor for this land and that once the plans are approved by the City Council, he will have a builder for the site. Levang asked if he intends to own the building and run the facility. Aggarwal indicated it would be run by a management company. Aggarwal indicated Apex Holdings are the investors and that the facility would be run by a professional senior housing management company. Levang asked how they will find a management company. Aggarwal indicated Mr. Gori constructs this type of development all over the country and that he would be able to help them. Levang asked if they would be constructing the building. Aggarwal stated they would have one of the commercial builders in the area construct it and that the next step would be to work with the management company and the builder. Levang stated in her mind there is a disconnect between them designing the building and the management company. Aggarwal stated the next step would be to work with the builder and the management company. Aggarwal stated Mr. Gori has designed a number of these buildings over the past 20 years and that he is very familiar with what is needed. Aggarwal stated there are some tweaks that will need to be made to the plan. McMillan asked what is located on the east end of the building by the pond. Viren Gori, Architect, stated it is similar to a band shell and is a pavilion. Gori indicated it was designed with the neighborhood in mind as an amenity to Stonebay. Gori indicated it would help engage the seniors living in the facility with the rest of the community. Page 26 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 20. #16-3854 ASHISH AGGARWAL ON BEHALF OF APEX HOLDINGS, LLC, 2635 KELLEY PARKWAY, SKETCH PLAN REVIEW (continued) Levang asked what type of recreational space will be inside the building. Gori stated on the first floor the larger units to the right are the independent living units, the kitchen is down the middle with dining rooms on either side, and on the left-hand side is the assisted living. To the south is the secure memory wing. Gori indicated they have all the major dining activities on the first floor. The second floor would have a fitness area with an open terrace and outdoor patio overlooking Wayzata Boulevard. Gori indicated they tried to create a lot of interior spaces for the residents to comingle. Entry into the facility would be in the independent wing and not so much the assisted since that will have more security. Gori indicated there will be one movie and one recreation room, with the memory care unit being completely separate. McMillan noted the City already has Presbyterian Homes, Trails of Orono, as well as some other facilities in the nearby areas. McMillan asked how they see this competing against some of the product that has already been built. Gori stated it is close to the highway and has great visibility. Gori stated it would have a different client base since it is a smaller facility and that their preliminary estimates seem to suggest that 72 is a good number. Gori stated they are in the process of doing a detailed study and that they should have the results in about 30 days. Walsh asked if they have a specific organization in the Cities who have performed an actual study. Gori indicated they are looking at Maxfield Research. Aggarwal stated they have performed an initial study and not a full-blown study at this time. Aggarwal stated as the population ages, there will be a greater need for this type of facility. Walsh stated when he goes to a city and requests to rezone something, the first thing they ask him is if he has a research study they can look at. Walsh stated he would like to see that before something is entirely rezoned. Aggarwal stated they will be doing a full-blown study since this is a big project and that they would be glad to share that with the City. Aggarwal stated their initial study found 70 to 90 units would be feasible. Levang asked if the units would be rented. Aggarwal indicated they would be rental or fee based. Levang stated the part that is difficult for her is the views of the outdoors. Levang stated if you go to Orono Trails, it is surrounded by woods on two sides and there is something to look at. Levang stated in this situation there is not much to look at and is not very appealing. Page 27 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 20. #16-3854 ASHISH AGGARWAL ON BEHALF OF APEX HOLDINGS, LLC, 2635 KELLEY PARKWAY, SKETCH PLAN REVIEW (continued) Aggarwal stated there is always a trade-off with any property. Aggarwal stated they wanted to create a quiet community. Aggarwal noted land in Ramsey would be cheaper than Orono and that there is always a trade-off. Aggarwal stated people will have their own preferences and that this facility does not cater to everyone but is available to people who want to stay in Orono. Aggarwal noted there are some trails in the area and that they are close to the schools and some of the businesses. McMillan stated she understands the need for 72 units but that she has a concern about the density and the lack of open space. McMillan stated she is not sure what the right density is for this site and that she would need to consider that a little bit more. McMillan commented she gets a number of people asking about rental property and not senior citizen facilities. McMillan indicated she is torn about having a more intense care facility on this site. McMillan noted Trails of Orono has expanded their memory care and that she is concerned about the hospital or critical care piece of the facility. Gori noted this is not critical care and not a hospital but rather an assisted living facility. Gori noted the memory care is also part of the assisted living. Gori stated if anyone requires critical care, they are moved to the hospital. Gori stated the reason he fords this site appealing for senior housing is the location. Gori indicated there was a study done by Maxfield Research that shows a trend for seniors moving toward areas with high visibility, which keeps seniors actively engaged with what is going on. Gori stated seniors would rather look at traffic than deer. Walsh noted some of the units at Stonebay look at the same view as this building would and that he does not have a problem with the use and the density. Walsh stated Maxfield Research type of information would be helpful in determining whether the site should be rezoned. Walsh stated open space and parking are not as big of a demand for this type of use and that they might want to consider reducing the parking. Walsh noted there are three stories across the street and that he would be more comfortable with two stories. McMiIlan stated there is a feeling of open space at Stonebay given the wetlands and that even though the use is intense, it does not give that appearance since there is a lot of open space. McMillan commented she would like to have a dense development but not necessarily a big building with a little bit of green space around it. McMillan stated she is a little bit concerned about packing the site full. McMillan asked if the City would receive credit for all the units. Gaffron noted the City would receive credit for 48 based on the facility having kitchen facilities. McMillan stated that also concerns her. McMillan stated unfortunately the Metropolitan Council does not count memory care as a residential unit, which is also a concern. Levang asked whether underground parking is a possibility. Gori indicated there is underground parking on the east side under the independent living side. Page 28 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 20. #16-3854 ASHISH AGGARWAL ON BEHALF OF APEX HOLDINGS, LLC, 2635 KELLEY PARKWAY, SKETCH PLAN REVIEW (continued) Levang asked if that would just be for the residents. Gori stated it would primarily be for the residents. Gori noted the parking on the plan is excessive and can be reduced. Gori stated the driveway at the back can be reworked and that they will probably have some delivery/unloading areas. Gori noted a lot of the parking on the south side can be eliminated and that he will be refining the plans. Walsh stated if the memory care is converted to independent living, additional parking would be required. Levang asked what the land next to this site is. Gaffron indicated it is a little bit smaller and not part of Stonebay. Gaffron stated it is owned by the same group that owns the adjacent dental clinic property. That site is guided for office use, which is how this parcel is guided. Aggarwal stated one of the good things with this type of facility is that it promotes other commercial businesses in the area. Gori stated an office building on this site would completely change the character of the neighborhood McMillan commented she would like to see a residential development on this site and that she would hate to put in 72 units and only get credit for 48. Gori stated if the memory care is eliminated and they go with independent care, it would still be the same size of building but the City would get credit for more units. Aggarwal commented there is no demand for an office building in this area and that it Iikely would be a warehouse. Gaffron stated the developer is looking for support on this proposal so they can take the next steps. Gaffron asked whether the Council is comfortable with rezoning the property. Levang and Walsh indicated they are amenable to that. McMillan stated she is also interested in looking at the market piece for this type of development. Aggarwal stated they will look at the demand for this type of facility again and see what kind of changes can be made to the building. Aggarwal asked if they could have a resolution that the Council is open to residential use on this site. Aggarwal stated they are open to tweaking the units but that they want to make sure that there is support for residential before they incur a lot of expenses. Gaffron stated in general the City does not make any formal commitments on a sketch plan and that they go by what is contained in the minutes. Page 29 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 20. #16-3854 ASHISH AGGARWAL ON BEHALF OF APEX HOLDINGS, LLC, 2635 KELLEY PARKWAY, SKETCH PLAN REVIEW (contanued)Walsh commented it appears the Council is in agreement that it should be residential. The City Council took no formal action on this item. 21. #16-3841 CITY OF ORONO, TEXT AMENDMENT: FLOOD PLAIN REGULATIONS — ORDINANCE NO. 177 Barnhart stated the proposed ordinance would modify the existing floodplain ordinance to be consistent with National Flood Insurance Program's model ordinance, Inclusion in the NFIP allows Iocal property owners to obtain flood insurance. The DNR has reviewed the draft ordinance and the City has also received their initial letter of support. Barnhart stated he is asking for the Council to approve the ordinance and then to also approve the summary ordinance, which has also been approved by the DNR. Levang moved, Printup seconded, to adopt ORDINANCE NO. 177, Third Series, an Ordinance Amending the Code of Ordinances Pertaining to Floodplain Regulations in all Zoning Districts, and to adopt the SUMMARY ORDINANCE NO. 177, Third Series, an Ordinance Amending the Orono _Municipal Code by Amending Article VIII Floodplain Management (Sections 78-1101 through 78- 1140) Regarding Floodplain Regulations by Establishing Flood Districts, Defining Development, and Regulating Development in These Districts. VOTE: Ayes 4, Nays 0. PUBLIC WORKS DIRECTOR/CITY ENGINEER REPORT, CONTINUED Edwards reported that Phase II of the Watertown Road project is currently underway and that the Public Works Department has finished the flushing and cleaning of the sewers in Zone 3. Edwards indicated they will be transitioning to inspection of the storm sewers in Zone 3 later this week. In addition, the mill and overlay on Tamarack is being completed. MAYOR/COUNCIL REPORT Walsh stated he participated in the parade at James J. Hill Days and that the event has expanded tremendously over the years and is a great success. Levang reported the Public Works Department has been busy getting the Navarre Park and Livingston Tower Park ready for the weekend festivities. In addition, the fencing in Lurton Park has been marked. Levang noted this Sunday is the Great Navarre Community Festival and ribbon cutting ceremony at Livingston Tower Park. Levang indicated they have designed a t -shirt for the festival that will be on sale. In addition, the Navarre street banners have been made into a 3 -foot size and will be available for sale, with the artist being there to sign the banners. Levang stated they will also have other Orono merchandise for sale, free food, activities for the kids, and heart safe training by the police department. Page 30 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. MAYOR/COUNCIL REPORT (continued) McMillan noted there was a police commission meeting in August and that everyone seems happy with the amount of policing in their city. McMillan reported the Highway 12 safety coalition had a meeting in September and that the bids for the concrete barriers had to be rebid. McMillan stated at some point between October 10 and November 5 the bypass will be closed for the work. Traffic will be rerouted on 112. MnDOT is also looking at future funding for Highway 12 from County Road 6 to County Road 29 in Maple Plain and extending the concrete barrier on that stretch of roadway. McMilIan noted West Hennepin's police chief, who serves as the leader of the coalition, recently received a leadership award for creating the coalition. McMillan reported Long Lake Waters, which is a newly formed lake association created for monitoring issues on Long Lake, has two meetings coming up. The first meeting will be held on Wednesday, September 14, at 6 p.m. at the Orono Fire Station, and the second meeting will be held Wednesday, October 19, 6-7:30, same location. McMillan stated the association is looking at doing a water summit and that they would like to have the DNR, MN Pollution Control, and the Minnehaha Watershed District in and talk about water quality issues on Long Lake. CITY ADMINISTRATOR'S REPORT 22. 2017 BUDGET AND PRELIMINARY LEVY Olson stated this is the first public presentation of the budget. The preliminary tax levy will be adopted at the next City Council meeting and the final levy and budget will be adopted at the December 12 Council meeting. Olson noted public input is allowed prior to the adoption of the budget. The Council has discussed the preliminary budget as part of the last three Council work sessions. At the August work session, the Council expressed agreement with the General Fund expenditure budget and revenue budgets as they were presented. At that meeting the Council also expressed support for refunding the Series 2008 Pavement :Management Bonds. The 2017 revenue budget is projected to increase 3.8 percent, which does include an increase in the property tax levy for the General Fund of $180,744 or 4.5 percent. The biggest reason for the increase has to do with contract and step wage increases as well as an increase in public safety charges of $61,000. Olson noted the Mound police contract has an inflator of 2.5 percent. Olson reported the expenditure budget will increase $279,294, which is a 3.62 percent increase. Olson stated the City's expenditure budget consists largely of wages and contracted services, with 64 percent of the budget being personnel services followed by professional services. Olson commented Orono budgets very conservatively and does not have a lot of discretionary items in the budget. Olson noted supplies and maintenance is only 8 percent of the budget and that the other expenses category- includes electricity and gas and things like that. Olson stated in this year's budget wages have a lot to do with the increase. Page 31 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 22. 2017 BUDGET AND PRELIMLTTARY LEVY (continued) Non-union step increases equal $18,000. Olson noted non-union wages has a two percent COLA increase which adds $32,000 to the budget, and union step/longevity increases amount to $45,000. Olson noted the City had more senior police officers that have retired and that they were replaced with younger officers, which has resulted in the increased step increases. In addition, workers comp for the police department adds $36,000. Olson noted the City's rating went from a .75 to a 1 and that the City did have a couple of very expensive workers comp claims, which resulted in an increase if the workers comp premium. Other increases in the General Fund include software licensing at $8,000, cloud backup at $6,000, LOGIS application at 58,000, Comprehensive Plan update at $18,700, professional services for the Navarre Plan at $30,000, for a total amount of $60,700. Olson stated also included in the tax levy is the debt service levy, which is staying the same in 2017. The pavement management levy is being increased to $401,506. The total of all proposed levies is $5,353,730. Olson noted there has been some discussion about whether to bond or not bond and that the Council will need to make those decisions in the next couple of weeks. Olson stated since 2011, Orono has been well below the average state-wide for property tax increases. On average other cities have increased their taxes by 9.44 percent more than the City of Orono. That number amounts to $475,000. Olson noted since 2010, Orono's levy has increased 6.18 percent, which is lower than a number of other local cities. Olson noted the City of Medina increased their taxes by 36 percent since 2010. Olson stated overall Orono has done a very good job at controlling the tax rate but that the City Council will need to decide how to fund some necessary road improvements. Olson stated if there is no change in property values, the tax levy increase would be 8.06 percent, which increases the pavement management levy to $401,000. On a $250,000 home, that would result in a savings of $10.82. On a $500,000 home, that would result in a savings of $23.00, on a million dollar home the property owner would save $51.75, and on a $2 million home the property owner would save $109.00. If a 5 percent increase is assumed on property valuations, taxes on a $250,000 home would increase by $12.00 per year and on a $2 million property the taxes would go up by $101.50. Olson stated his understanding after the last work session is the Council needs to decide whether to bond and how much the pavement management levy should increase. Edwards reviewed the City's options for bonding. Edwards stated if the City chooses to bond, starting in 2018 a source of funding will need to be identified. Olson stated if the City chooses to bond, the City would need to pass a revised pavement management plan, which was originally done back in 2008. Olson stated the pavement management plan does not have to be unanimous but the decision to go out to bond has to be unanimous by all attending Council members. Short of having a 4-0 vote or a 5-0 vote, the City would be required to have a hearing. Page 32 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. 22. 2017 BUDGET AND PRELIMINARY LEVY (continued) Olson stated if the Council approves the pavement management plan, there is a 30 -day period where a petition can be brought requesting a referendum or a vote on it by the general public. If that happens, that 30 days would delay the bonding process. McMillan noted the City has utilized the bonding process to complete a number of road projects in the past. McMillan stated to her understanding the City has spent over $400,000 in budget surpluses, which is not sustainable, and that the other part of the budget surplus was used to fund the streetlights in Navarre. 'McMillan stated the City has a number of roads that need to be addressed and the Council is now at a point where something else can be considered Printup asked whether cities ever look at Ionger terms and bond in bigger amounts. Olson stated that is a strategy that is sometimes employed. Loftus stated there should be a minimum of a three-year bonding plan since it is not favorable for the City to go out more frequently than every three years. Olson stated larger bond issues tend to draw more bids and that more bids generally translate into better interest rates. Olson stated if the City does decide to bond for roads, a pavement management plan would need to be approved identifying how the money will be spent. McMillan stated the levy can be lowered if the City decides to go out for bonds but that they cannot go above the preliminary levy. McMillan stated the City needs to make sure there is a little bit of a cushion. McMillan asked how long it would take to complete a pavement management plan. Olson stated the pavement management plan can be updated fairly quickly and that it is more a matter of identifying the roads to be completed. Loftus stated the purpose of tonight's hearing was to present the information to the public. Loftus stated the number one complaint Staff hears at City Hall is the condition of the roads. McMillan stated the City has an opportunity with the refunding to Iook at bonding, which the City has not done in a while, and that repairing the roads with the budget surplus is not sustainable going into the future. McMillan requested the preliminary levy discussion occur near the top of the agenda at the next Council meeting, 23. AUTHORIZATION TO ISSUE 2016 GO REFUNDING BONDS, SERIES 2016A — RESOLUTION NO. 6675 Walsh moved, Printup seconded, to adopt RESOLUTION NO. 6675, a Resolution Providing for the Sale of $2,800,000 General Obligation Refunding Bonds, ,Series 2016A. VOTE: Ayes 4, Nays 0. Page 33 of 34 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 12, 2016 7:00 o'clock p.m. CITY ADMINISTRATOR'S REPORT, CONTINUED Loftus stated the City has purchased some recycling bins if any resident would like to stop in and pick one up. As of September 23, absentee ballots will be available at City Hall. Levang noted a person must sign up for the compost program in order to receive one of the compost bins. *24. LICENSES & PERMITS Game Animals Limited Use Permit Three Rivers Park District Deer hunt Baker Park Reserve October 7-9 and November I 1-13, 2016 Liquor License 8 to A Lamp Taste of Long Lake Special Event Saturday, October 8, 2016 6 — 9 p.m. Levang moved, Walsh seconded, to approve the above -listed licenses. VOTE: Ayes 4, Nays 0. *25. CLAIMSBILLS Levang moved, Walsh seconded, to approve payment of the All Funds Account. VOTE: Ayes 4, Nays 0. CITY ATTORNEY'S REPORT Mattick had nothing to report. ADJOURNMENT Printup moved, Walsh seconded, to adjourn the Orono City Council meeting at 11:28 p.m. VOTE: Ayes 4, Nays 0. ATTEST 4� ISianet legs, City Clerk Jgk f 4P4A;5,fL Lili Tod McMillan, Mayor Page 34 of 34