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HomeMy WebLinkAbout10-24-2016 Council MinutesMINUTES OF THE ORONO CITY COUNCIL Monday, October 24, 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 Jim Cornick, Jr., Lizz Levang, Aaron Printup, and Dennis Walsh, Representing Staff were City Administrator Jessica Loftus, Community Development Director Jeremy Barnhart, Public Works Director/City Engineer Adam Edwards, City Attorney Soren Mattick, and Recorder Jackie Young. Mayor McMillan called the meeting to order at 7:02 p.m., followed by the Pledge of Allegiance. APPROVAL OF AGENDA Item Nos. 5, 6, 8 and 9 were added to the Consent Agenda. Levang moved, Cornick seconded, to approve the Consent Agenda as amended. VOTE: Ayes 5, Nays 0. APPROVAL OF MINUTES *2. CITY COUNCIL MEETING OF OCTOBER 10, 2016 Levang moved, Printup seconded, to approve the minutes of the Orono City Council meeting of October 10, 2016, as submitted. VOTE: Ayes 5, Nays 0. PRESENTATION 3. BOND SALE — SALE OF GENERAL OBLIGATION REFUNDING BONDS SERIES 2016A — RESOLUTION NO. 6684 Finance Director Olson noted on September 12, 2016, the City Council adopted a resolution calling for the sale of $2,800,000 of General Obligation Refunding Bonds, Series 2016A. Nick Anhut, Ehlers, Inc., stated the action before the City Council is a resolution authorizing the final issuance and awarding of sale of the City's bonds. The bonds will be utilized to refinance existing debt of the City, which consisted of the 2008 bonds that were used for street reconstruction projects throughout the City. Anhut noted he assisted the City in putting together an official statement and offering documents to solicit bids. The City also underwent a review of their rating through Moody's Investor Service, who affirmed the City's AAA rating, which is the highest credit rating and translates into a low risk profile. Anhut noted there is a report in front of the Council this evening that provides a summary of the results of the sale and included within that report is the rating report from Moody's. Anhut stated Moody's noted that the City on a per capita exceeds a number of their benchmarks, which points to a strong and stable history. Anhut stated they received seven different bids from various underwriting firms throughout the country. The winning bid came from Doughty & Company at 1.1935 percent, which equates to a savings of $18,209 from the high bid. Page i of 9 MINUTES OF THE ORONO CITY COUNCIL. Monday, October 24, 2016 7:00 o'clock p.m. 3. BOND SALE — SALE OF GENERAL OBLIGATION REFUNDING BONDS SERIES 2016A — RESOLUTION NO. 6684 (continued) Anhut stated while it might sound like a small difference, it will add up over a six year period. The bid from Dougherty also included a reoffering premium, which basically means that Dougherty is willing to pay the City higher than face value for the bonds. As a result of that premium, the final amount of principal outstanding is $2,086,000, which is a substantial decrease from the $2,795,000 that was originally anticipated. There were also some reductions in the cost of issuance and fees. Anhut stated the bottom line is that it means greater savings to the City than what was anticipated. Council Member Levang asked if receiving seven bids is typical for that amount of money. Anhut stated they would generally expect five for a City that has a AAA rating and that seven exceeded their expectations. Anhut stated more bids means more competition. McMillan commented she was delighted to see that Moody's has reaffirmed the City's AAA rating and that they were able to obtain a very good interest rate. Levang moved, Printup seconded, to adopt RESOLUTION NO. 6684, a Resolution Awarding Sale of $2,705,000 General Obligation Street Reconstruction Refunding Bonds, Series 2016A, Fixing the Form and Specifications Thereof, Providing for Their Execution and Delivery and Providing for their Payment. VOTE: Ayes 5, Nays 0. PUBLIC HEARING 4. PUBLIC HEARING REGARDING THE CERTIFICATION OF DELINQUENT UTILITIES — RESOLUTION NO. 6685 Olson stated each year the City certifies to Hennepin County all unpaid annual service charges for the septic program, the recycling program, and all delinquent sewer and water accounts of $50 or more, to be collected with the following year's taxes. In addition to the outstanding delinquent amounts, 8 percent interest is added to all accounts and an administrative fee of $25 is added to all accounts. The total amount to be assessed is $129,210.71, which is a slight increase from 2015. The amount will be decreased by any payments received up to the final payment date of November 23, 2016. State statutes require the City hold a public hearing regarding the assessment of these fees prior to certifying the assessment roll to the county. Notices of the public hearing have been sent to all delinquent properties. Mayor McMillan opened the public hearing at 7:12 p.m. There were no public comments received. Mayor :McMillan closed the public hearing at 7:12 p.m. Page 2 of 8 MINUTES OF THE ORONO CITY COUNCIL Monday, October 24, 2016 7:00 o'clock p.m. 4. PUBLIC HEARING REGARDING THE CERTIFICATION OF DELINQUENT UTILITIES — RESOLUTION NO. 6685 (continued) Levang moved, Printup seconded, to adopt RESOLUTION NO. 6685, a Resolution for the Collection of Delinquent 2016 Water and Sewer Utility Service Charges, Recycling Program Fees, On-site Sewage Treatment (Septic) Program, Storm Water Charges. VOTE: Ayes 5, Nays 0. PUBLIC COMMENTS Penny Rogers, 1380 Rest Point Road, stated they attended the last Council meeting and that they listened to City Attorney Mattick talk about the legal fees associated with the lawsuit with the Nygards. Rogers noted the attorney indicated the fees were awarded to the City in that situation and that the Court also ruled in favor of the City as well with regard to the fence. Rogers stated the Court has pretty much affirmed the neighbors' and the City's lawsuits against the Nygards, which in her view means that they are doing the right thing. Rogers stated it was the right thing to sue the Nygards for installing a wind turbine along the property line, and that turbine is now gone. Rogers stated during that five and a half year period, Mr. Nygard put six more poles up on his property and they all violate the same City ordinances. Rogers stated they now have three more turbines on the property and the poles are on the neighbors' property lines. None of the poles are outside of the 10 -foot setback and are located within the 0-75 foot setback. Rogers stated the right thing to do is what the City has already been doing, which is to make the Nygards take them down. Rogers stated the poles and turbines are a nuisance to the neighbors. Rogers stated if the City is not going to enforce their ordinances, then the City should remove them from the books. Rogers stated they were told when the big turbine came down in January that the City was going to take action on the other turbines. In January, Council Member Walsh made a motion to vote on this issue and three of the council members abstained. Rogers stated they were floored by that action and that they did not understand it. Rogers noted Council Member Levang abstained from the vote and Council Member Printup indicated he was voting no because citizens move to Orono to be left alone. Rogers stated they want to be left alone but they do not want neighbors violating their property rights. Rogers stated Mayor McMillan has always been a firm supporter of the 0-75 foot setback, which is supposed to be sacred. Rogers noted Mr. Nygard has six poles in the 0-75 foot setback and that two of them have turbines on them. Another pole has a clothesline on it. Rogers stated his neighbors have to look at clothes when they want to look at the lake. Rogers stated all of the poles are in violation of the 0- 75 foot setback. Rogers stated something happened where the City went from pursuing the violations to ignoring them and that she does not understand what is going on. Rogers stated she is not sure if there is a third party influence that is going on but that it is not right. Rogers stated if the City is not going to enforce ordinances, they should get rid of them. Rogers stated the City is setting a really bad precedent regarding all these violations and that Mr. Nygard is being really defiant. Rogers stated she is not sure what their action plan will be going forward, but at some point the neighbors may be looking at legal recourse as well. Page 3 of 8 MINUTES OF THE ORONO CITY COUNCIL Monday, October 24, 2016 7:00 o'clock p.m. PUBLIC WORKS/CITY ENGINEER REPORT *5. KELLY AVENUE DRAINAGE (CARMEN OUTLET) PAY REQUEST NO. 2 -FINAL Levang moved, Cornick seconded, to approve Pay Request No. 2 -Final to Kusske Construction in the amount of $18,929.23 for the reconstruction of the Kelly Avenue storm sewer outfall project at Carmen Road. VOTE: Ayes 5, Nays 0. *6. BULK FUEL CONTRACT Levang moved, Cornick seconded, to authorize Staff to enter a contract with the State of Minnesota Fuel Consortium. VOTE: Ayes 5, Nays 0. 7. OLD BEACH ROAD RIGHT-OF-WAY ENCROACHMENT Director of Public Works/City Engineer Edwards stated this item deals with an encroachment on the ROW along Old Beach Road and that the property owners are here to ask for an encroachment agreement. The encroachment consists of a retaining wall inside of the street right-of-way. Edwards noted the actual pavement sits off center from the right-of-way (ROW) so there is a great deal of unimproved ROW in between the edge of the pavement and where the applicants' property line begins. The applicants have partially constructed the retaining wall prior to the City issuing a stop work order. City Code does allow for retaining walls in front yards as long as they are at least ten feet from the traveled roadway. Encroachments into the public ROW are normally allowed in order to overcome a practical difficulty such as a driveway approach. Edwards stated the City typically likes to keep the ROWs clear of immovable objects for safety and maintenance. Whenever objects are necessary or allowed within the ROW, typically they are 10 feet or more from the travel way. James Craig, 2560 Old Beach Road, stated he has resided at his property for over 27 years and that he has maintained that area the entire time he has lived there. Craig staffed that area has become more difficult to mow and maintain given the slope. Craig stated the retaining wall has now leveled the elevation so they can maintain it safely. Craig stated the plan for the area in front of the boulder wall was to have some river rock, sod or low mow grass. Craig stated in any case, in order to conform to the City's normal recommendation of ten feet, they do not need a retaining wall in that 10 -foot area. Craig indicated they have also been removing some buckthorn for a number of years now. Craig stated he is asking the City Council to grant the permit so he does not have to remove the retaining wall. Craig stated in regards to safety, he would also like to put in some low voltage lighting along the upper part of the wall since there is no streetlight. Craig noted he is not proposing any mercury or bright lights and that he prefers the quiet nature of the area. Craig stated his neighbors are in favor of the retaining wall. Craig noted another consideration raised by the City was snow removal and storage. Craig indicated he spoke with two private snow removal crews who maintain the driveway on the other side as well as the road that is in front of his property. Page 4 of 8 MINUTES OF THE ORONO CITY COUNCIL Monday, October 24, 2016 7:00 o'clock p.m. 7. OLD BEACH ROAD RIGHT-OF-WAY ENCROACHMENT (continued) The snow removal crews indicated they have no problem with the wall. Craig stated he also spoke with Bob in Orono's Public Works Department and he said he had no issue with snow removal. Craig stated if need be, he will install reflective markers to alert anyone about the wall. Craig stated as far as the boulders in the area are concerned, someone cannot see them when they are up on the cul-de-sac or on the property to the right. Craig stated the boulder retaining wall blends in well with the boulders that the neighbors have and that he does not see any compelling reason not to grant the permit. Levang stated her only concern was the dirt that was there along the retaining wall and that the idea of low mow or no mow grass sounds pretty reasonable. Craig indicated that is part of the project and that putting sod there would be aesthetically pleasing and would be able to be mowed. Levang asked if Staff is comfortable with the plan. Edwards stated his only concern is the location of the wall to the edge of the pavement. Edwards stated as far as snow storage capacity, the snow will have to be thrown above the wall. Edwards indicated he brought this to the Council given the closeness of the wall to the traveled roadway. Craig stated he has noticed when the snow is being cleared from the neighbor's driveway that the contractor has a tendency to push it over to the left where the boulder wall now is. Craig stated as a result, when someone comes out of the driveway, they could not see over the snow and that this will deter that. Craig indicated they will have to push the snow further over by the mailboxes. McMillan asked if the soil was built up that way previously before the wall was there and that was the reason for the erosion. Craig indicated the slope is approximately 2:1 and that the dirt has been brought up to the top of the retaining wall, which allows it to be maintained. McMillan commented it is a very attractive wall and that she can see why erosion might have been a problem. McMillan noted approximately 18 months ago the City put an article in the City newsletter about what is allowed in ROW. McMillan commented this is a tough situation for the Council because the intentions are good. Craig stated he totally appreciates the ROW concept. Craig stated since he has to maintain it, he kind of forget about the ROW, which he apologizes for. Council Member Walsh stated it appears to be a reasonable accommodation for what is intended to be accomplished. Walsh asked what the height of the wall is. Craig stated it is approximately three feet at the highest point and that it gradually drops down to two feet and then one foot. Page 5 of 8 MINUTES OF THE ORONO CITY COUNCIL Monday, October 24, 2016 7:00 o'clock p.m. 7. OLD BEACH ROAD RIGHT-OF-WAY ENCROACHMENT (continued) Walsh commented it will make the neighborhood look very nice and help Mr. Craig maintain that area. Craig stated some cascading junipers along the wall might also help to soften the wall. Walsh stated he is not sure whether grass will grow in the area near the wall given the salt that is used during the winter. McMillan asked if there are any utilities in that area and whether there is any possibility the wall may need to be tampered with. Edwards stated every encroachment agreement contains language that allows the City to go into that area to perform work with the understanding that any structure in the ROW might need to be removed at the property owner's risk. Craig indicated he is comfortable with that language. Council Member Cornick asked if the retaining wall has footings. Craig stated the lower course is buried somewhat into the ground and is very solid. Cornick asked if the wall meets the City's requirements. Edwards stated the City does not require engineering of walls that are less than four feet. Edwards stated the wall seems to be very typical of a rock retaining wall. Edwards stated a permit would be issued if approved and an as -built plan would be attached to the encroachment agreement. Walsh moved, Printup seconded, to approve the retaining wall in its current Iocation. VOTE: Ayes 4, Nays 0, Cornick Opposed. PUBLIC WORKS/CITY ENGINEER REPORT, CONTINUED Edwards reported on the following activities by the Public Works Department: * Tree trimming has been performed on Kelly Avenue, Prospect, and Loma Linda 4 Shoulder repairs were done on Stubbs Bay, Old Long Lake Road, Old Crystal Bay Road Speed bump removal on Woodhill and Crystal Bay • Storm structure improvements were performed on Casco Point Road Blockage removal completed on Ferndale Green The manhole on North Shore Drive was raised • Well construction on Well No. 4 is currently underway • Generator repairs performed at LS 26 • Fencing installation is underway at Lurton Park • Removed old sidewalk at Crystal Bay and reinforced shoulder on Arbor Page 6 of 8 MINUTES OF THE ORONO CITY COUNCIL Monday, October 24, 2016 7:00 o'clock p.m. PUBLIC WORKS/CITY ENGINEER REPORT (continued) Edwards noted the Watertown Road project has one layer of asphalt down and that the contractor will be laying the final layer of asphalt in the spring after the soil stabilizes. The road is currently paved and striped. 4. PUBLIC HEARING REGARDING THE CERTIFICATION OF DELINQUENT UTILITIES, CONTINUED Robin E.G. Johnson, 4730 North Arm Drive, stated she has received a notice that she is delinquent on her utilities. Johnson noted for the last six years, she has received her bills from the City of Orono with her previous last name and that she has requested that the City update her name to her accurate name for the past six years. Johnson indicated every year she supplies proper documentation of the name change but every year her property taxes and utility bills come in her prior name. Johnson stated she will pay her bill when her name is accurately reflected on her bill. MAYOR/COUNCIL REPORT Walsh reported the Fire Advisory Committee has unanimously voted to request changing the ordinance to allow the Long Lake Fire Department overnight boat storage and proceed with an application to the Planning Commission. Levang noted the City newsletter went out about a week and a half ago and that if anyone did not receive the newsletter, they should contact the City. Levang stated the Orono/Long Lake donation garden is closed down for the year. Levang stated they did not have the best season this year due to some rabbits and that they will be getting some help from Otten Brothers to amend the soil. Levang stated they are very grateful for that help. Council Member Printup noted last week was the first week of the work on the Highway 12 bypass. Printup stated due to the coordinated efforts of Police Chief Farniok of the Orono Police Department and City Staff, traffic has moved pretty smoothly. Printup noted work on the bypass will continue for a couple more weeks. McMillan reported the Long Lake Citizens Lake Association is having a meeting next Wednesday from 6:00 to 7:30 at the Country Cupboard located on Willow Road. McMillan stated the association would like to host a water summit at some point but that they are still in the planning stages for the association. CITY ADMINISTRATOR'S REPORT City Administrator Loftus noted there is an open house this Thursday from 4:30 to 6:30 at the Long Lake Fire Station to discuss the improvements on Highway 112 and that everyone is welcome to attend. *8. NON -WAIVER OF TORT LIMITS — RESOLUTION NO. 6686 Levang moved, Cornick seconded, to adopt RESOLUTION NO. 6686, a Resolution Making a Selection Not to Waive the Statutory Tort Limits for Liability Insurance Purposes. VOTE: Ayes 5, Nays 0. Page 7 of 8 MINUTES OF THE ORONO CITY COUNCIL Monday, October 24, 2016 7:00 o'clock p.m. *9. THIRD QUARTER FINANCIAL REPORT The City Council took no formal action on this item. *10. CLAIMS/BILLS Levang moved, Cornick seconded, to approve payment of the All Funds Account. VOTE: Ayes 5, Nays 0. CITY ATTORNEY'S REPORT City Attorney Mattick stated he had nothing to report. CLOSED SESSION 11. CLOSED MEETING — LABOR NEGOTIATIONS Levang moved, Printup seconded, to close the regular City Council meeting and go into closed session to discuss labor negotiation strategies. VOTE: Ayes 5, Nays 0. (The City Council went into closed session from 7:42 p.m. to 8:16p.m.) ATTEST: 'Diefir, Tiegs. City Cler Lili Tod McMillan, Mayor Page 8 of 8