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HomeMy WebLinkAbout09-10-2012 Council Minutes , • W O � MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. ROLL CALL The Orono City Council met on the above-mentioned date with the following members present: Mayor Lili Tod McMillan, Council Members Cynthia Bremer, Doug Franchot,Aaron Printup, and David Rahn. Representing Staff were City Administrator Jessica Loftus,City Clerk Lin Vee,Finance Director Ron Olson,Assistant City Administrator of Long-Term Strategic Planning Michael Gaffron,Planning Coordinator Melanie Curtis,City Engineer/Public Works Director Jesse Struve, 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 Allegiance. APPROVAL OF AGENDA 1. CONSENT AGENDA Item Nos. 7-11 and 16 were added to the Consent Agenda. Bremer moved,Franchot seconded,to approve the Consent Agenda as amended. VOTE: Ayes 5, Nays 0. APPROVAL OF MINUTES *2. COUNCIL WORK SESSION OF AUGUST 27,2012 Bremer moved,Franchot seconded,to approve the minutes of the Orono City Council Work Session of August 27,2012,as submitted. VOTE: Ayes 5,Nays 0. *3. REGULAR CITY COUNCIL MEETING OF AUGUST 27,2012 Bremer moved,Franchot seconded,to approve the minutes of the Orono City Council Meeting of August 27,2012,as submitted. VOTE: Ayes 5,Nays 0. PRESENTATION 4. LAKE NIINNETONKA COMMUNICATIONS COMMISSION(LMCC)2013 BUDGET- SALLY KOENECKE Koenecke addressed the Orono City Council regarding the proposed budget for the LMCC,noting that Orono is a member of the joint powers agreement along with 16 other cities. Koenecke noted a summary of the budget as well as the actual budget is included in the City Council packet. Koenecke pointed out that the studio salaries and franchise expenses were combined a few years back due to an FCC ruling. Due to the possibility that the PEG fee may only be used for capital expenditures,the LMCC budget committee designated studio salaries as an operating expense. The other funds needed for the studio are classified as access studio capital as the expenses incuned result in a product. The capital Page 1 of 26 , MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. (4. LAKE MINNETONKA COMMUNICATIONS COMMISSION(LMCC)2013 BUDGET, Continued) budget this year includes the purchase of some new cameras to record city council meetings as well as an ENG kit. The ENG kit will be used to tape the Orono candidates'forum on October 9th and other government taping. Approximately 80 percent of the capital budget is used for taping city council meetings and taping of other government type events. Printup asked if there is a way that the LMCC can send out notification of an outage via a listserv. Printup noted that currently complaints go to the LMCC and that it would be nice if the LMCC could send out an en masse e-mail notifying customers of the anticipated resolution of the outage. Koenecke stated they have done that on occasion in the past when it is a major outage but that normally they do not send a message when the outage is limited to a small specific area. Franchoi�noted it took a great deal of effort over the years to get Mediacom to notify the LMCC of the � problems associated with outages but that the situation has now been improved. McMillan stated she has received a number of positive comments regarding the taping of the city council meetings since the taping started two years ago. McMillan indicated she has also received some negative complaints from the people in the northwest corner of the city requesting that they be provided with cable. McMillan stated expanding the service is something she would like to explore but that she does not know how much Orono's build-out would be compared to some of the other cities and that she does not expect the other cities to help pay for Orono's build-out. McMillan stated she would like to find some way that more citizens can have access to cable and that this is something she would like to look at in the coming months. Koenecke indicated the LMCC is currently engaged in the process of franchise renegotiation,and part of that process is looking at the density requirement for a build-out. Orono's City Administrator,Jessica Loftus,has received an invitation to a stalceholders meeting taking place on September 21 st. Koenecke stated she would like to have a representative from Orono there because the meeting will be very informative on how the process works and the services provided. The meeting is being headed by some consultants to the LMCC who will compile the information into a report that can then be used during franchise negotiations. The information will allow the LMCC to better impress upon Mediacom that they need to expand their service area. Koenecke stated the LMCC has been recently speaking with Mediacom about doing some wireless testing. The LMCC has also started web streaming so some users can get service that way. The Commission will be discussing the density issue with Mediacom and they welcome Orono's assistance in that process. Koenecke stated the LMCC provides the programming through the funding by the cities and that the issues are how to get the best possible franchise for the cities in terms of equipment,facilities, service to the residents,build-out, and better density. Franchot stated higher density and added coverage is the top priority of the LMCC. The current contract requires Mediacom to provide service if there are more than 30 residents per mile. Industry trends currently are to go with less density and the LMCC is working to gather information and input from the residents so the LMCC can present that data to Mediacom. The LMCC has also discussed a possible Page 2 of 26 � MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, September 10,2012 7:00 o'clock p.m. (4. LAKE MINNETONKA COMMUNICATIONS COMMISSION(LMCC)2013 BUDGET, Continued) partnership with Mediacom in the past but Mediacom has not had an interest in doing a partnership. Franchot commented it would be worthwhile to have a workshop with the LMCC on how to address these issues. Loftus stated she has been contacted by Medina and that in theory the cities of Medina,Minnetrista and Orono all have the same issues with density. Loftus stated she would like all three of the larger cities to be on the same page to help ensure that the density issue is addressed. Koenecke noted the franchise renewal committee put together a stakeholder meeting on October 3rd and that she will be sending out notification of that meeting and information to the five cities who are interested in discussing an increase in density. The LMCC feels that each of the cities may not have really understood all of the issues involved with increasing service and the LMCC consultant has suggested that each city come individually to the LMCC to discuss the situation and then come together as a group to have a brain storming session on how the issues can best be addressed. McMillan asked what the anticipated schedule is for the upcoming months as it relates to the renewal process. McMillan indicated she would like to have the franchise renewal process added to the October work session for further discussion. Koenecke indicated the City Administrator has some information and that she would provide additional franchise renewal information tomorrow. Printup asked how many households are currently being served. Koenecke stated she does not have that information available tonight. Franchot indicated to his understanding it is less than 50 percent. Franchot stated there is a number for houses that cable runs past and then another number for the citizens who actually utilize the service. Koenecke stated Mediacom is required to do a site survey to determine whether a particular residence meets the density requirements. Koenecke commented sometimes the cable can be run through the back yard from another resident's property. During the franchise negotiation the LMCC will need to tell Mediacom that they need to look at some of these homes that do not currently have service and have their engineers determine if any of these neighborhoods are close to an existing connection. Koenecke noted Mediacom does have the right to charge residents for a connection but that most residents are not willing to pay those costs. Koenecke noted that Mediacom is looking at various locations to conduct wireless studies,and that if the LMCC has a choice in which locations are chosen,the LMCC can approach the City to see if those locations are spots where the City would like tested. Franchot moved,Rahn seconded,to approve the 2013 Lake Minnetonka Communications Commission budget. VOTE: Ayes 5,Nays 0. Page 3 of 26 MINUTES OF THE " ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. LMCD REPORT-ANDREW MCDERMOTT,REPRESENTATIVE McDermott reported La1ce Minnetonka is at approximately the same level as last year at this time but that the dam has been closed and the lake continues to drop due to the lack of rain. The harvesting of the milfoil has been completed for the year and a report will be compiled on how much milfoil has been harvested. This is the final year of the herbicide treatment on the three bays and the LMCD should be receiving a report from the Army Corps of Engineers in November or December. The LMCC is close to completing its lake vegetation management plan and they are looking at how each bay should be handled in the future with whatever issues they are facing. McMillan stated she has received a number of comments of how clear the lower bay is this year. McDermott stated that water quality increases until the zebra mussels reach a certain population. PLANNING COIVIIVIISSION COMII�NTS-DEIVISE LESKINEN,REPRESENTATNE Leskinen stated she had nothing to report but would be available for questions. PUBLIC COMMENTS Ralph Kempf, 3675 Togo Road,thanked Mayor McMillan,the Staff of Orono, and the Council and Planning Commission members for attending the meeting on August 28th at the Freshwater Institute in Navarre. These meetings were offered by Hennepin County to interested communities to gather local input into the first ever Hennepin County pedestrian plan and to identify issues with safe walking and biking along county roads. The Navarre meeting was initiated by the Navarre Community Initiative and co-hosted by Hennepin County's Community Design Group. The Navarre meeting had the largest turnout of any of the planning meetings to-date. There were 49 participants who signed in,with many more arriving as the meeting progressed. Kempf commented it was a great meeting with the local residents as well as representatives from the various government entities. During the meeting the participants had an opportunity to identify walking destinations,points of safety concerns,and could describe specific walking and biking issues in this area. Kempf stated the intersection of County Roads 15 and 19 is a defining element in creating a bike/pedestrian friendly and safe Navarre. The unfinished connection along County Road 19 that would safely connect the Dakota Rail Trail with the Navane business district,the Navarre park and the city-owned parking lot is also a Hennepin County issue. Many crucial Orono safety issues, and especially Navarre safety issues,are Hennepin County issues as well. Kempf stated this meeting may well be the building block for creating a pedestrian welcome Navane. Kempf stated according to the Hennepin County website, the draft of the Hennepin County pedestrian plan will be released this fall and is expected to be completed in mid 2013. The Navarre Community Initiative is thrilled to have had the opportunity to facilitate this event happening in the Navane community and are optimistic that with continued city support Hennepin County will respond to the issues of the Navarre neighborhood and Orono. Kempf stated on behalf of the Navarre Community Page 4 of 26 � MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. (PUBLIC COMMENTS, Continued) Initiative,he would like to thank the City Council again for their continued support of Navarre and thank all of the residents who attended the meeting. Mayor McMillan thanked Ralph Kempf for helping to organize the meeting and that in her view the consultant group did a good job of running the meeting. PLANNING DEPARTMENT REPORT 5. #10-3491 CITY OF ORONO-FIARDCOVER REGULATIONS AMENDMENT Ben Gozola stated basically three main changes have been made since the last City Council meeting. The DNR standards were discussed with staff at a Council work session. At the direction of the City Council, the City Attorney has reviewed and provided comment on the draft ordinance. Staff also incorporated some minor ordinance edits based on Council feedback and feedback by the City Attorney. The first changes are specific to the definition of hardcover. At the direction of the City Attorney,two words were removed from that definition. The first word was the word construction before the word hardcover and the second word was impervious before the word patio. Both changes were to shorten and clarify the definition. The next change was to remove some remaining hardcover exclusion language in the ordinance and that change again was for clarity. Following that change, Staff was asked to include definitions for two different terms. The first term was pervious paver and the second term was pervious surface. The City Council will be able to find language on both of those terms in the draft ordinance. Further,the City Council suggested that Staff remove a sentence within the suggested purpose section that seemed to be more related to the performance based approach,and that has been done. As it relates to the hardcover exclusion section,the City Attorney suggested Staff remove the word public before the word roads to make sure that all roads,regardless of the ownership status of those roads,would receive an exclusion if they were properly placed. Based on discussion at the last Council meeting, Staff also made an amendment to the way the ordinance would look at retaining walls. Instead of having a difference between required retaining walls and decorative retaining walls,all retaining walls would be excluded. Gozola stated the biggest change in the ordinance relates to Tier 1. It is now proposed to be regulated at a straight 25 percent rather than being split into two different zones depending on the distance from the lake. Gozola indicated it is his belief that that was a topic at the work session meeting and that the City Council should have a two-page handout that was prepared by Mr.Gaffron regarding that proposed change. In addition,the City Attorney had recommended some minor text changes to the tier assignment methodology,which has been incorporated into the draft ordinance. As it relates to Division 4,which Page 5 of 26 . MINUTES OF THE � ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. (S. #10-3491 CITY OF ORONO-HARDCOVER REGULATIONS AMENDMENT, Continued) dealt with legal nonconformities, some existing language from the City Code was eliminated as other recent code changes made that language unnecessary. Gozola staxed in order to address one of the questions that were posed at the last meeting,he compiled a map to help illustrate the impact of having Step 5 within the tier methodology. Gozola indicated this particular map provides a good visualization that Step 5 is not an unreasonable expansion of the regulations that are currently in place. By filling in the gaps, it creates new regulations on 102 parcels within the community but most, if not all of those parcels, are entirely surrounded or almost entirely surrounded by parcels that are already regulated. Almost half of those parcels that are being added are in the Navarre area. Since the beginning of these discussions,people have looked at that particular area of the city as being important to close those particular gaps since all of the water in Navarre is basically ending up in approximately the same area regardless of the distance from the lake. Rahn commented he is becoming more receptive to the tiers, and that if Staff is in favor of the tiers,he would also be in favor of them. Rahn stated in going back to the beginning of this process,his thought with going to a single percentage number on the smaller lakeshore lots was to figure out what the average hardcover number was and that he had the impression the number would be around 17 percent. Rahn noted by allowing 25 percent hazdcover on a 60-foot wide lakeshore and by including the 0-75 area in the hardcover,the property owner would be allowed over 1,100 squaxe feet of additional hardcover. On a 100-foot wide lot,the property owner would be allowed almost 1,900 square feet of additional hardcover. Rahn noted under the draft ordinance,the City is allowing quite a bit more hardcover,which was one of the reasons he was opposed to the tier system on the longer lots. Rahn stated based on the large amount of additional hardcover that would be allowed,he is hesitant to allow the additional 100 square feet of patio or deck. Rahn stated his understanding also was that the City was going to include retaining walls as hardcover. Rahn noted by just including the 0-75 foot zone,the City is allowing a lot more hardcover on each lot,and questioned whether the City needs to do the 100 square feet of deck and/or pervious surface. Rahn suggested the City try the new regulations without the 100 square feet allowance and that it can always be added later if the City Council thinks it is necessary. Printup stated his thought on the items that were considered "low hanging fruit" such as the decks was that they should be allowed and not considered hardcover. Printup indicated he is in favor of the retaining walls and decks not being considered hardcover and that citizens frequently question why they should be considered hardcover when the water goes through or around them. Printup stated he does understa.nd what Council Member Rahn is saying about inclusion of the 0-75 foot zone allowing additional hardcover,but that he is still in support of allowing the 100 square feet of deck. Printup indicated he does not want to see more stringent rules placed on the small lots in Orono. Franchot stated the process has been a good one and that he is a believer in pervious and permeable hardcover. The difficulty with where the City Council ended up is that there are so many different lots but that in his opinion they have reached the best compromise. Franchot stated he also believes it is better to simplify the regulations and not have people figure out which part of their lot is allowed what percentage of hardcover. Franchot stated the current regulations on the 0-75 foot zone help protect the lakeshore and that he is comforta.ble with the ordinance. Franchot stated there will likely be instances where there are issues but Page 6 of 26 � MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. (S. #10-349I CITY OF ORONO-HARDCOVER REGULATIONS AMENDMENT, Continued) that in his view this ordinance is better for Orono citizens without impinging upon the water quality. Franchot stated he is in support of the ordinance as written. Bremer stated her first and foremost question was whether Staff supports the ordinance because Staff has dealt with the current code more than the City Council has and every Council Member has had their own experiences with the regulations. Bremer noted she dealt with hardcover issues on the Planning Commission and that their overall view of the regulations reflected a powerful philosophy of preserving Lake Minnetonka. Bremer indicated part of the struggle she has today is acknowledging that it is better for staff and hoping that it is better for the citizens but also balancing the City's commitment to Lake Minnetonka. Bremer stated if the City starts seeing a pattern of some extreme building that the Council was not envisioning, that she hopes the Council will have the ability and power to rectify that number. Bremer sta.ted she does . not know what the magic number is and that the number may vary depending on the lot. Since there is no perfect system,the Council needs to find the best solution they can to simplify and protect Lake Minnetonka. Bremer indicated she would be supportive of a number less than 25,but that the Council has to rely on City Staff and the Planning Commission to be watching for new patterns that they are not envisioning today. Bremer stated in her view part of what they are gaining here is stopping a pushing of the boundaries and to set a rule that people can live with and get what they want while at the same time still meeting the City's standards for protecting the lake. Bremer stated she will support the ordinance and that she likes the idea of potentially removing the 100 square feet of deck and pervious material and reviewing it at some point in the future. Bremer stated she has the same understanding as Council Member Rahn with respect to the retaining walls and that the City Engineer would prefer they all be treated one way or the other. Bremer stated her understanding was that they would be included as hardcover, and that if all retaining walls are excluded from the hardcover calculations,the City Council needs to understand that exclusion. Franchot stated the thought that Council Member Bremer brought up is a good one and that there will be new patterns that occur because of the ordinance. Franchot stated the City could be passive and wait and see or the Council could ask that Staff come back to the Council by the end of next summer or some other reasonable time with their thoughts on how the new ordinance is working. McMillan stated she also has become receptive to the tiers and that the map would be very helpful to the citizens and other government entities. The map, for example,would show the Metropolitan Council that Orono citizens have a number of restrictions to comply with, and if the wetland buffers are added to the map,that would definitely help show that Orono is protective of its natural resources and that development should be limited to a certain degree. The map also simplifies the hardcover regulations for the residents and eliminates the requirement for a survey. McMillan stated in that way it benefits potential buyers and existing property owners. McMillan stated there will still be some imperfect situations but that she hopes this Council and future councils can work through those issues. McMillan stated her hope is that there will be fewer variance requests under the new ordinance. Page 7 of 26 � MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. *16. APPROVAL OF UPDATED LOGO Bremer moved,Franchot seconded,to approve the updated logo design to be used on city documents,signs,and other items that incorporate the city logo. VOTE: Ayes 5,Nays 0. CITY ATTORNEY'S REPORT Mattick had nothing to report. 17. LICENSES AND PERMITS ONE DAY GAMBLING PERMIT-RESOLUTION NO. 6167 1. Applicant: Minnetonka Center for the Arts Event: 60th Anniversary Celebration(raffle) Location: 2240 North Shore Drive(Minnetonka Center for the Arts) Date: � Saturday, October 6,2012 Time: 5:00 p.m. - 11:00 p.m. TEMPORARY ON-SALE LIQUOR LICENSE 1. Applicant: Goldstein Museum of Design Event: Fundraiser Location: 1780 Shoreline Drive(Nelson residence) Date: Friday, September 14,2012 Time: 6:00 p.m. - 9:00 p.m. 2. Applicant: Orono Rotary Event: Taste of Long Lake Location: 2350 Wayzata Boulevard West(Otten Brothers) Date: Friday, September 28,2012 Time: 6:00 p.m. - 9:00 p.m. SPECIAL EVENT PERMIT 1. Applicant: Orono Rotary Event: Taste of Long Lake Location: 2350 Wayzata Boulevard West(Otten Brothers) Date: Friday, September 28,2012 Time: 6:00 p.m. -9:00 p.m. Rahn commented he believes in treating all people fairly and asked if the special event permit fees are being waived for all charitable organizations. Rahn stated in his opinion the waiver of the fee should be consistent. Lin Vee,City Clerk, stated the only way the fee is waived is if the City Council approves it. Staff does not have the authority to waive the fee. The City on occasion has waived fees in the past but it typically Page 25 of 26 MINUTES OF THE � ORONO CITY COUNCIL MEETING Monday, September 10,2012 7:00 o'clock p.m. (SPECIAL EVENT PERMIT, Continued) is not requested. Vee stated since the event is expected to attract over 300 people,the fee is$200 while most special event permit fees are$50. Loftus stated she also asked City Clerk Vee that same question and that the City Council can follow a simple philosophy of requiring all organizations to pay the fee. Rahn stated there is a reason for the fee schedule and that there needs to be uniformity regardless of the organization that is hosting the event. Rahn moved,Bremer seconded,to approve the gambling permit and liquor licenses listed above, and to adopt RESOLUTION NO.6167,a Resolution Approving a Lawful Gambling Application for Exempt Permit Submitted by the Minnetonka Center for the Arts,and to deny the request from the Orono Rotary to waive the special event permit fee of$200. VOTE: Ayes 4,Nays 1,Printup opposed. *18. BILLS Bremer moved,Franchot seconded,to approve payment of the All Funds Account. VOTE: Ayes 5, Nays 0. ADJOURNMENT Bremer moved,Franchot seconded,to adjourn the Orono City Council meeting at 10:07 p.m. VOTE: Ayes 5,Nays 0. ATTEST: ' - (/ � �� `_ � Lin a S. Vee, City Clerk Lili Tod McMillan,Mayor Page 26 of 26 MINUTES OF T�iE ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. (S. #IO-3491 CITY OF ORONO-HARDCOVER REGULATIONS AMENDMENT, Continued) McMillan stated as it relates to Step 5,her question was whether those properties needed to be included, and that she does not have a strong feeling one way or another on whether they should be included. McMillan indicated her thought was that they may be getting too much regulation in the code but that she understands the environmental value. McMillan stated her second concern was the retaining walls and whether they should be counted as hardcover. McMillan noted boulder retaining walls do not retain much of anything and that it is difficult to consider a rock as hardcover since it seems to be a more natural feature. Rahn asked if Mayor McMillan would like the walls to be excluded or included. Rahn stated excluding retaining walls from hardcover may prompt more residents to have them. McMillan stated some of the more natural boulder walls or keystone should not be included. Bremer stated retaining walls are typically keystone or boulder. McMillan stated she would rather keep them as an exclusion. McMillan asked if Staff envisions a number of people coming in and requesting a 100 square foot patio or deck. Curtis stated it is a mix and that there are a number of new homes that may not have a patio. Curtis noted they have had two variance requests this past year for a patio and the 100-foot exclusion would allow those types of requests to have a small patio. Rahn stated in his view it is important to revisit this issue in 12 months. Rahn moved,Bremer seconded,to approve Application#10-3491,City of Orono-Hardcover Regulations Amendment,with Item No.4-Retaining Walls,being removed from the hardcover exclusions and to count them as hardcover. McMillan indicated she would like to see if there is any public comment regarding the hardcover prior to voting on the motion. McMillan opened the meeting for public comment at 7:57 p.m. Todd Kimmis,2660 Casco Point, stated he has attended meetings regarding this item for the past two or three months and that in his opinion retaining walls and rock outcroppings should not be counted as hardcover. Kimmis stated he has not heard one person against the ordinance. In addition,the 0-75 foot zone is a killer,and if the Council is worried about people pushing the limits,there already are people who do that because the regulations are so restrictive. Kimmis stated he does not feel that will change and people will always try to get as much hardcover as they can. Orono has a staff that is very attentive to that,which is good and will help ensure that Lake Minnetonka is protected. Kimmis noted this process has gone on for over a year and that it is time to make some headway on this ordinance. The City Council can go back and forth for another two months but in his view it needs to be resolved at some point. Ralph Kempf,3675 Togo Road, stated as it relates to retaining walls, if you have a slope that runs from the house down to the lake,that water will hit the ground and start to move toward the lake. If you have the same front yard with a retaining wall halfway to the lake, all of the water that hits above the retaining Page 8 of 26 ' MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. (S. #IO-3491 CITY OF ORONO-HARDCOVER REGULATIONS AMENDMENT, Continued) wall will not continue down the slope but will start to be absorbed into the gound at that point. Kempf stated it would not be a situation where the runoff gains momentum toward the lake. For that basic reason it would seem that retaining walls are hardcover that has a real benefit to what the Council is attempting to achieve. City Engineer Struve stated Mr.Kempf does have a point with the retaining walls,and that if the grade is reduced,the speed of the water will potentially slow down and allow infiltration prior to the lake. Struve stated there can also be instances where you have a steep slope and they place rock up and down the slope to help stabilize the slope but that it does not necessary slow down the runoff. Rahn stated he is agreeable with retaining walls that run parallel to the shoreline or the width of the lot but that the City sometimes sees walls that are utilized for other reasons. McMillan commented that would then become a design issue. Bremer stated that is how the question came about on whether a retaining wall should be considered necessary or aesthetic. Bremer stated the City Council has the discretion to determine whether a retaining wall is truly a retaining wall and that Staff will need to enforce that. The Council has seen situations where people are constructing a number of retaining walls and that one factor that has to be considered is the visual impact of those walls from the lake. Rahn noted retaining walls could also change how people descend down the lake. Allowing retaining walls might make people construct them so they can traverse down the slope rather than having a straight stairway down to the lake. Curtis noted the City does permit walls differently depending on whether they meet the need for engineering,which would require a building permit, and that some walls require a zoning permit. Gozola stated if they are removing Item No. 4 with the motion,he would recommend putting the definition of retaining wall back into the definitions so it is clear that they are to be considered hardcover. Rahn stated his motion is to approve the draft ordinance as written with the removal of Item No. 4, retaining walls. Bremer stated retaining walls would be included as hardcover under that motion. Gaffron stated the Council appears to be comfortable with the 25 percent for the entire Tier 1, including the area past the 250 foot line. A few months ago in the process the area behind the 250 foot line was not being regulated and then the Council elected to regulate it at 30 percent. Gaffron noted the latest draft puts it at 25 percent but does not include any requirement that would disallow use of the 250-1000 hardcover within the 0-250 foot zone. Gaffron stated for the last 40 years the City has had a system of zones that was intended to make sure that properties that are very deep do not push all of their hardcover up to the 75-foot line. Without language in the ordinance that would require hardcover in the 250-1000 foot zone to be used in that zone rather than allowing it up at the 75-foot line,the City is not meeting their goal of having equal or better protection than what we started with originally. Gaffron stated that has been his position from day one Page 9 of 26 MINUTES OF TIiE � ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. (S. #10-3491 CITY OF ORONO-HARDCOVER REGULATIONSAMENDMENT, Continued) and that he wants to make sure the Council is okay with allowing people to take their hardcover from the 250-1000 foot zone up to the 75-foot line. McMillan staxed on narrow lots,the side setbacks might come into play if someone would like to construct a big house at the 75-foot line. On a wide,deep lot,they will have more room to put hardcover at the 75-foot line and still meet setbacks. McMillan noted on the long, deep lots,a lot of the hardcover tends to consist of driveway. Gaffron stated that is the reason why he provided some examples to the Council last week. A 500-foot deep lot will have twice as much hardcover as a 250-foot deep lot. Gaffron noted under the new ordinance they can talce all of that hardcover and put it within the 75-250 foot zone. The Council has not asked for any mitigating measures or performance measures in that scenario. Gaffron noted the City has followed that practice for 40 years so they do not end up with a lot of hardcover fairly close to the lake. Bremer stated that goes back to Council Member Rahn's comment at the beginning that the numbers are quite a bit higher than what the City would normally allow. Bremer noted the average lakeshore setback is intended on the lake lots to push the house further back from the 75-foot line. Gaffron stated the fact that the City Council is going to review the impacts of the ordinance changes in a year does provide some comfort. Rahn commented it may not take a year if a certain pattern develops that Staff finds problematic and adjustments can be made prior to 12 months. Bremer stated she would like to hear Staffls comments regarding the retaining wall issue. Gaffron stated it is likely regulating retaining walls evolved over the years and became more significant in the scheme of things as time went on. Gaffron stated in his view there is some value to reducing the slope and slowing down the runoff. A flat terrace will hold more water than a 15 percent slope with a retaining wall. Gaffron indicated he can go either way with the retaining walls but that it would be simpler if they do not count retaining walls as hardcover. Curtis stated some applications have walls that meander rather than being a straight staircase and there are applications that request grading in the 0-75 foot area,which can result in the creation of a little retaining wall to hold the stairs up. The City now has an engineer in-house that can evaluate those applications. Curtis stated in her view those are the areas where the City can make it easier for the residents and that residents are limited to stairways that are no wider than four feet. Rahn amended his motion,Bremer seconded,to adopt,as written,an Ordinance Amending Regulations Governing the Regulation of Hardcover and Establishing the Stormwater Quality Overlay District. Mattick noted it is still the City's intention to not allow those items in the 0-75 foot zone even though they have been excluded from the hardcover calculations in other zones. Mattick suggested the Council may want to consider revising the exclusion introductory language by amending Section 78-1680 to basically say that you cannot put any hardcover except for these following items in order to clarify that Page 10 of 26 ' MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. (5. #10-3491 CITY OF ORONO-HARDCOVER REGULATIONS AMENDMENT, Continued) those items are still not allowed in the 0-75 foot zone. Mattick stated in his opinion it is not the intention of the Council to allow retaining walls in the 0-75 foot zone. McMillan asked if the City Attorney would like to draft some language prior to adopting the ordinance. Mattick stated the Council could approve the draft as written with the direction that that language be clarified. Mattick noted the ordinance would come back before the Council for final approval. McMillan noted the local newspapers have not covered the City's work on the hardcover ordinance and that she would like Staff to put together something that can be submitted to the newspapers. McMillan stated the Council could do the final vote in two weeks. Franchot asked whether Council Member Rahn would be agreeable to amending his motion to include the direction that Staff will provide a report 12 months after formal adoption of the ordinance concerning the impacts of the changes. Rahn stated the Council could require a report not to exceed 12 months. Rahn moved,Bremer seconded,to conditionally approve,as written,an Ordinance Amending Regulations Governing the Regulation of Hardcover and Establishing the Stormwater Quality Overlay District,with the direction that the City Attorney revise Section 78-1680 to clarify that retaining walls will still not be allowed in the 0-75 foot zone and to direct Staff to submit a report to the City Council within 12 months following the adoption of the ordinance detailing the impacts of the new hardcover regulations. VOTE: Ayes 5,Nays 0. *6. #12-3568 JIM SNIITH OF CONCEPT LANDSCAPING ON BEHALF OF WILLIAM AND ANITA ROUSE,4051 HIGHWOOD ROAD-CONDITIONAL USE PERMIT AND VARIANCE-RESOLUTION NO. 6164 Bremer moved,Franchot seconded,to adopt RESOLUTION NO.6164,a Resolution Granting a Conditional Use Permit and Hardcover Variance Per Municipal Zoning Code Sections 78-1282,78- 1283,and 78-1288,for the property located at 4051 Highwood Road. VOTE: Ayes 5,Nays 0. PUBLIC WORKS DII2ECTOR/CITY ENGINEER'S REPORT Struve reported that work is beginning at the trail crossing on Orono Orchard Road. The weather has been favorable and once the work gets past Smith Avenue things should progress more quickly. As it concerns the 2012 mill and overlay plan,the contractor was out last week and performed the crack filling on all the seal coat roads,which include Old Long Lake Road,Ferndale Green, Chevy Chase and Spring Hill Road. The contractor was out this morning replacing some of the sanitary sewer manhole covers in those areas. By the end of the week the contractor will perform the oil and rock placement. The rock will remain in place for approximately one week and then they will come back and sweep up the excess. The mill and overlay projects will be moving forward until the end of September. Page 11 of 26 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. *7. WINTER MAINTENANCE OF TRAILS Bremer moved,Franchot seconded,to direct Staff to send a response to Three Rivers that Orono will not be authorizing winter use of the regional trail segments in the City and will not be maintaining them during the 2012-2013 winter season. VOTE: Ayes 5,Nays 0. *8. MEDINA MUNICIPAL UTILITY SERVICE AGREEMENT Bremer moved,Franchot seconded,to approve the Municipal Utility Service Agreement with the City of Medina. VOTE: Ayes 5,Nays 0. *9. JOINT POWERS AGREEMENT WITH CITY OF MEDINA FOR WILLOW DR1VE TRAIL Bremer moved,Franchot seconded,to approve the Joint Powers Agreement with the City of Medina for a trail on the west side of Willow Drive from CSAH 6 to Morningside Road. VOTE: • Ayes 5,Nays 0. *10. MCES GRANT OPPORTUNITY FOR INFILTRATION AND INFLOW REDUCTION Bremer moved,Franchot seconded,to direct Staff to proceed with submitting an application to MCES for their 2012 Municipal I&I Grant Program. VOTE: Ayes 5,Nays 0. *11. PAY REQUEST NO.2-ORONO ORCHARD ROAD RECONSTRUCTION PROJECT Bremer moved,Franchot seconded,to approve Pay Request 2 for the contractor Minger Construction,Inc.,in the amount of$277,272.04 for the Orono Orchard Road Reconstruction Project. VOTE: Ayes 5,Nays 0. MAYOR/COUNCIL REPORT Printup noted James J. Hill Days was held this past weekend and was a good success. Printup stated tomorrow is September 11`�'and that he would encourage everyone to stop by the memorial in Mound located across from the VFW. Printup stated he recently read something where the Sheriff's Department has prescription medicine drop box locations,with one being located in Spring Park. Printup asked if that is something that can be implemented at the police deparhnent in Orono. Loftus noted the City does advertise the locations of the drop boxes. Police Chief Farniok stated they have discussed that with Hennepin County but that there are a number of restrictions with how the drop boxes need to be regulated and mandated,which prohibits a lot of agencies from having drop boxes. The Hennepin County Water Patrol has had very good luck with the one located in Spring Park and there are also mobile prescription drug drop-off boxes located at the Hennepin County Maintenance Shop as well as at the West Hennepin Police Department. Hennepin County,rather than looking at installing permanent drop-off boxes, is looking at expanding their mobile prescription drop- offs for various communities. Page 12 of 26 � MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. (MAYOR/COUNCIL REPORT, Continued) McMillan noted the Willow Drive trail application was placed on the Consent Agenda tonight but that the property owner is in attendance. McMillan stated her and her husband have allowed Medina to connect one of their neighborhoods with Orono's trail on Willow Drive. McMillan stated she would like them to know that it was a very nice thing for the community to allow the trail connection to happen on their property and that it shows a lot of support for the community. McMillan stated trails do not happen without the cooperation of residents such as the Leskinens. McMillan reported that Norina Dove, a former Spring Park Council Member,has assembled a forum on the use of heroin in this area. Dove felt it would be nice for the community to have some type of awareness/prevention forum and she has asked the mayors and police chiefs from Spring Park, Mound and Orono to attend the forum. The group is actively working on a heroin awareness project and will be meeting this coming Friday. McMillan stated she should have some more information on this project by the next council meeting. CITY ADMINISTRATOR'S REPORT 12. CONTRACT FOR LAW ENFORCEMENT SERVICES Loftus noted the City received a request from Mound approximately two months ago for the Orono Police Department to provide a proposal for police services to their community. On August 27,this item was on the Orono City Council agenda where it was discussed and to provide information to the public. On August 28,the Mound City Council voted to approve the contract. Loftus stated it is a 10-year contract and would add 10 current o�cers from Mound as well as one additional officer,and that they would be using the Mound facility as a satellite station. The draft contract has been reviewed by the City Attorney and is before the Council tonight for approval. The contract will restructure the police department and also requires the approval of an organizational chart, which would take effect in 2013 and would add a deputy chief position. Loftus indicated part of the benefit to this effort is the savings and efficiency by eliminating two upper management positions. The restructuring would also add an administrative support position to assist with transcription, data entry, and community contact. Loftus noted those two positions have been placed as separate items on the agenda depending on how the Council chooses to act on the contract. Loftus noted this contract would not impact the zero percent tax levy that the Council is considering. Printup noted he sent an e-mail today to City Administrator Loftus citing some concerns he has with the contract after he further scrutinized the contract. Printup stated with the hardcover ordinance,there has been a considerable amount of discussion by the City over the last 18 months involving the changes but not one mention of the police proposal in the local newspapers. There have been maybe three articles in the Mound newspaper concerning the new police contract. Printup noted a recent article in the Star Tribune talked about the Mound Police Department disbanding and the Orono Police Department taking over even though the Orono City Council has not voted on it yet. Printed indicated he has had some citizens approach him and ask him about it in light of the articles and they were shocked to learn that the Orono City Council has not even voted on it yet. Printup stated in his Page 13 of 26 MINUTES OF THE � ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. (l2. CONTRACT FOR LAW ENFORCEMENT SERVICES, Continued) view the City could have done some more outreach to the community. Printup stated he would entertain the idea of postponing this for two weeks to solicit public response. Printup moved,Rahn seconded,to table Item No. 12,the Coutract for Law Enforcement Services, for two weeks and to direct Staff to submit arlicles regarding this item to the local newspapers. Rahn stated in his view Orono has contracted services for police services with other cities in the past but that this is on a larger scale than what has been done in the past. Rahn indicated he does not have any issues with the contract itself but that he does have an issue with the organizational chart. Rahn noted the contract is different from the organizational chart and that he would like to separate the two items. Rahn stated to his knowledge the organizational chart has no affect on the contract. Loftus stated the City Council is free to discuss the two items separately but noted that the City cannot provide service to Mound without the additional police officers and they cannot do that without a new � organizational chart being approved. Rahn stated in his view the Council should discuss the organizational chart in a work session and whether the new positions would be included in the insurance waiver program. Rahn indicated he is not sure how the police department came up with the decision to have a deputy chief in lieu of a lieutenant as well as an administrative assistant. Franchot asked when the City Administrator stated that Orono cannot provide services without the organizational chart, if she was referring to adding the Mound police officers or refening to adding the deputy chief and the administrative position. Loftus stated there will be increased patrol and administrative work loads and the City Council, as the governing body,has the discretion to approve who is in those positions. Loftus stated the City Council can change what is being recommended but at some point a new organizational chart needs to be completed if they decide to provide services to Mound. Franchot stated he wanted to clarify whether the City Administrator was referring to the fact that Orono cannot provide services to Mound without a deputy chief and without the new administrative person or whether she was referring to including their officers. Franchot stated in his view the Orono Police Department will need a couple more positions but that he is not sure why they would have a deputy chief. Franchot indicated he has an aversion to one person reporting to one person and that he would like to have further discussion about that. Franchot stated in his view it is important that the Council vote on the contract tonight since Mound has already voted on the contract. Loftus stated what is before the City Council is Staffs recommendation but that the Council could elect to designate it as a lieutenant rather than a deputy chief. This is Staff's recommendation on the staffing levels needed. The administrative assistant position falls in line with what the police department needs to provide the additional services. Police Chief Farniok stated in conducting research on other police deparhnents,they found that there is no rhyme or reason to a lot of the structures. A lot of the police depariments have a chief of police,a second in command, and then supervisors. The titles varied between deputy chief,captain and lieutenant. In doing the research on police deparhnent structures, it was found that captain and lieutenant refer to Page 14 of 26 � MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. (12. CONTRACT FOR LAW ENFORCEMENT SERVICES, Continued) supervisors,which can fall into the same union as a sergeant and therefore they would be in the same supervisory union. Farniok stated there can be some issues if the second in command wants to take disciplinary action on a person at the same supervisory level rather than a subordinate. Farniok indicated they looked at other similar sized departments such as Crystal,Hopkins, and Maple Grove, and a number of them had deputy chiefs. Minnetonka had a deputy chief position but then switched it to lieutenant and is now looking at switching it back to deputy chief. Farniok stated they did not want the deputy chief position in the supervisory union and that they wanted it as an administrative position so they can avoid overtime situations. Farniok stated this position will be more than 40 hours per week in the beginning and that they wanted this to be an exempt position. The deputy chief would be the second in command and would be an individual who can step into the chief role. Franchot asked what the difference is between a chief and a deputy chief in Orono's structure. Farniok stated the deputy chief would do the scheduling, payroll,assisting with the budget,and handle personnel issues. Franchot asked if the police chief currently performs those functions. Farniok indicated they currently have an administrative sergeant who is performing most of those duties already along with an investigative sergeant. Farniok noted they are retaining the investigative sergeant and changing the administrative sergeant to deputy chief. Franchot stated in essence the new structure is collapsing the lieutenant,administrative sergeant and administrative supervisor into deputy chief. Farniok indicated that is correct. Rahn asked if the deputy chief would work the opposite shift of the police chief. Farniok indicated it would be a daytime position. Farniok stated they realize that having four cities can be a great deal of responsibility with the day-to-day operations and meetings, so it will be a shared responsibility between the police chief and deputy chief. Rahn asked whether this would be a non-union position. Farniok indicated it would be non-union, exempt position. Rahn stated in his view the City needs to resolve the insurance waiver issue. Rahn stated he personally thinks the insurance should be a grandfathered type of thing and should not be offered anymore or reduced. Rahn asked if the administrative assistant would also be a non-union position. Farniok indicated the administrative assistant would be a non-union position. Rahn stated he would like the insurance waiver issue resolved before they vote on the organizational chart but that they could vote on the contract tonight. Rahn stated there needs to be further discussion of the Page 15 of 26 MINUTES OF THE " ORONO CITY COUNCIL MEETING Monday, September 10,2012 7:00 o'clock p.m. (l2. CONTRACT FOR LAW ENFORCEMENT SERVICES, Continued) organizational chart. Rahn asked if there is a reason they ran the surveys without the number of employees. Farniok stated there were several options available for the survey and that he elected to put in a number for the population but he did not put in the number of officers. Farniok stated he cannot remember what the options were to choose from and whether there was something that was close to what Orono has. Farniok stated a lot of the surveys use population size and community size and that he used the combined populations of Orono and Mound. Rahn asked how the Police Depariment is dealing with the possible temporary status of some of these positions. Rahn stated 10 years from now when the contract ends there will likely be some issues to deal with and that there needs to be some due diligence done tonight. Rahn asked what would happen if one of Orono's sergeants moves to the deputy chief position and in ten years the contract is not renewed. Loftus noted there is a three year notice provision in the contract and a mutually punishing provision that requires Mound to pay half of any unemployment or termination costs if the contract is terminated. Loftus indicated that should help with the planning into the future. Rahn commented that helps somewhat but that there should be some language that the position could only be a 10-year position. Bremer stated that is true with any position. Orono has two other contract cities currently and those issues could arise with those contracts. Overall staffing goes up when your contracts go up and staffing goes down when the contracts go down. Rahn stated as it concerns the officers, if the contract is not renewed ten years from now,would it become an issue for the union of who would be terminated. Farniok stated it would depend on seniority and that to his recollection the deputy chief individual would move down to a lower position and the least senior person would be let go. Mattick stated they have worked out a memorandum of understanding with LELS that says that in the event of a layoff,they will start with anyone hired after the effective date of the contract, second would be any Mound officers,and third would be existing Orono officers. Rahn stated he has a concern that if the contract is not renewed,the Police Deparhnent is required to keep the deputy chief position. Mattick noted the City is not bound contractually with that position and that the City has the right to restructure the department. Farniok stated they would restructure the organizational chart when given a three-year notice and that the positions would be eliminated once the contract expires. Franchot commented he is very comfortable with the due diligence that has been done and that the contract is sri-uctured well. Franchot stated his only question related to understanding why a deputy chief Page 16 of 26 ' MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. (I2. CONTRACT FOR LAW ENFORCEMENT SERVICES, Continued) would be designated rather than a lieutenant or some other position and that in his view the police commission has addressed all of the issues. Rahn asked why the administrative position is a Level 4 and not a Leve13. Farniok stated in speaking with Staff,when they considered that position,they felt that this position would most likely be doing office support work and not just doing transcription work. When you look at the pay scale for a Leve13 position, it is fairly low and there were concerns about whether they would be able to attract someone with those skills as a full-time position. Farniok indicated they looked at the job description and felt it was very similar to the office support staff versus a transcriptionist. Printup stated in his view the work load for the police department would be increased significantly with the new contract. Loftus stated she is not sure whether the police department has the time with this proposal to wait on the waiver issue. Loftus stated she did not get the sense in the last budget meeting that the Council was ready with a position to make that decision. Rahn noted that decision does not need to be made until the jobs are posted. Loftus noted the City will need to post the positions in the near future. Rahn stated it was his understanding the City was in the process of discontinuing or reducing the insurance waiver program. Franchot stated he is not sure what the City is committing to because if the program is changed,the new position would be changed as well and that they were not talking about grandfathering anyone. Printup stated in his view this is a good time to start discussing the insurance waiver because the City is having some non-union individuals coming on board. Franchot stated he does not see where the City's commitment would be. McMillan stated that is something that the City is looking at administratively and that she does not want to focus too much on the insurance waiver issue at this time. Rahn commented that was the reason he stated the organizational chart is different from the contract and that they should be voted on separately. If the City hires two new employees,now would be the time to make a decision on the benefits package. McMillan stated they could do that at their Council work session in two weeks. Loftus noted the Police Department needs to be ready by January 1 if they wish to service Mound under this contract. Bremer stated she personally would like to move on the contract and the organizational chart and then discuss the benefits package at the next City Council work session. Page 17 of 26 MINUTES OF THE � ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. (12. CONTRACT FOR LAW ENFORCEMENT SER i�ICES, Continued) Mayor McMillan opened the hearing to public comment. Denny Walsh, 1354 Rest Point Circle, stated in his view this process has gone really fast and that the City Council is talking about a large budget item. Staff and the City Council have worked hard to keep their budget levy at zero and they are now talking about buying a business from Mound that is having financial problems. Walsh stated one of the issues not discussed and not considered is the fact that people will want raises because they will be overseeing more people. Walsh noted the contract has some long-term low percentages, such as two percent,and questioned what the City would do if inflation rises to 7 percent or 10 percent. Walsh also questioned what the City would do if the proposed savings of$150,000 becomes a deficit of$150,000. Walsh noted they are potentially spending Orono citizens' money on this and the City Council should take sufficient time to ensure that all the issues are addressed. Walsh stated Orono does not need to be in a hurry to approve the contract and that they should review it carefully and make sure everything has been addressed properly. Walsh commented it sounds like the City is trying to grow their business and that all issues need to be considered. (A recess was taken from 9:00 p.m.to 9:05 p.m.) Rich Wysocki,2770 Rainey Road, stated he became aware of this issue just today and that he has read the contract. Wysocki noted he has been involved in a lot of public contracts and that in order for it to be a good contract for Orono, it must be revenue neutral with no added costs to the Orono residents. With added patrols, increased supervision will be required,which needs to be considered. Wysocki stated his next area of concern relates to the term of the contract and that he is surprised it is a 10-year contract. Wysocki stated in his experience public contracts axe typically limited to three years with a 30-day cancellation for cause and sometimes a 10 day cancellation period. Wysocki stated his other concern relates to pension funding and possible shortfalls. Wysocki commented he is not sure whether that is a consideration in this situation. Wysocki stated in his view it is a contract that he would love to sign if he was Mound but that he is not sure it is in Orono's best interests. Mattick stated the idea behind the 10-year contract is the fact that the City is adding police cars and they want the stability of the revenue to run the department. After Staff reviewed the issues, Staff recommended a 10-year contract and it is not something that Mound requested. Mattick noted there will be startup costs to provide service to Mound. Wysocki commented that capital expenditures on cazs are typically three years along with most everything else. Mattick stated another reason was that the City did not want to add employees or eliminate employees every three years. Mattick stated the contract does not need to be 10 years but that is what both cities agreed on. Wysocki stated businesses typically sign three-year contracts. Page 18 of 26 ' MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. (IZ. CONTRACT FOR LAW ENFORCEMENT SERVICES, Continued) McMillan stated in three years Mound could negotiate with another city and use that as leverage with Orono. McMillan noted this contract would basically double the size of the Orono Police Department and that when you start talking about career development,that takes time. McMillan stated there is commitment on the part of both cities to deliver quality public safety to both communities and the other contract cities,which is truly a commitment. There are benefits for both Mound and Orono. Exactly who benefits more and who benefits less will play out over time but that it is everyone's hope it will be mutually beneficial. McMillan noted Orono is taking on some operational risk but at the same time Staff has worked hard to find a price point that was attractive to Mound but would still allow Orono to gain some efficiency at that price point. If inflation is 10 percent in five years, it will be difficult for all of us. McMillan pointed out that one of the big efficiencies is having an extra patrol car in the Orono coverage area,which will also give the police department the ability to have more cars on the streets to react to crimes. Crime fluctuates around the area and patrol cars from other cities provide coverage when needed. McMillan stated a bigger department gives Orono the advantage of having better coverage in this area. Bremer noted that Spring Park and Minnetonka Beach are the two contract cities that Orono provides service to currently and that representatives from those cities have met with the Police Commission on a couple of occasions to discuss this proposal. They have been provided with an update on this proposal and both cities have expressed their support for this plan because they trust Police Chief Farniok and because Orono will be adding additional officers. Bremer stated one of the only ways Orono can afford to increase police presence is by increasing the coverage area,which this proposal does. Wysocki stated if in fact the City is looking for more officers,they could perhaps approach the Hennepin County Sheriff. Wysocki stated he is concerned about it being revenue neutral and also with the City committing to a 10-year contract. Wysocki noted it is Orono's ta�c dollars that are at stake. McMillan noted Mound is currently paying for two CSO o�cers and they will continue to pay for those. Mound will also be paying for their police facility to be used as a satellite location and Orono will not be paying any money toward debt or utilities for running that facility. Franchot asked what the term is of the fire contract. Ron Olson indicated it is 20 years. Franchot noted the LMCC franchise agreement is also a 10-year agreement and that it is not unusual to have a long-term contract. McMillan stated the City does not charge the residents for rescue operations and that Orono provides those services even though they are not exactly a dollar for dollar item. McMillan stated the City is not ' going to bill someone for how much service someone receives. McMillan stated the City has been in the contracting business over the years and unfortunately lost Long Lake's police business. Orono paid the unemployment for Long Lake but they have learned from that business change. McMillan stated the police chief and city administrator have spent a lot of time reviewing and drafting the contract and that Orono's police chief wants to provide the best service he can for all of the areas that are covered. Page 19 of 26 NIINi7TES OF THE ' ORONO CITY COUNCII.MEETING Monday, September 10,2012 7:00 o'clock p.m. (l2. CONTRACT FOR LAW ENFORCEMENT SERVICES, Continued) Douglas Lein, 580 Oxford Road, stated this is a business deal and that Mound is contracting these services for a reason,which is that they want to cut the fat from their budget as well as looking for protection for their citizens. Orono needs to look at this from the view of whether this is the best thing for Orono. Mound did not push for a 10-year contract. If they are not pushing for that specific number, Orono could sign a five-year contract with a two-year out. If it doesn't look good after three years,Orono would have the opportunity to opt out,which would allow Orono to control the destiny of the contract. Lein commented if it turns out to be a bad deal, five years is more doable. If it is a good deal and it works for Orono, it can be extended. Lein stated a shorter contract would give Orono more control and would be a better option. Mattick noted the revenue is guaranteed via the contract and that the City can control the costs through different methods. There is nothing in the contract that specifies the staffing levels. Mattick stated in Staffs view it is to the City's benefit to have a 10-year contract. The City is aware that Mound has had problems and they have looked at the costs associated with providing services to Mound. T'he City Council can correct any oversights. Lein asked how the union falls into it with the structure. Lein asked whether the City has obligations with the union to fulfill a certain amount of staffing. Mattick indicated they do not. Lein asked if the City contracts and eliminates positions, whether that will affect anything with the union. Mattick stated the City retains the right to structure the police department and to determine the appropriate staffing levels. Lein stated there were comments made by Council members questioning the organizational chart and that the organizational chart question was clarified and explained. Lein stated in his view pushing it through tonight has no benefit other than the fact that the police department needs time to prepare and be organized by January 1 st. Beyond that,the Council should review it as long as they can to make sure they are making the most educated decision for the future. Mattick stated when you talk about merging police services between two communities, it is not a matter of starting the services the next day and that these things do take some time. Police Chief Farniok stated they did look at a six month changeover and that January 1 is a rough transition date. Lein asked if Mound reyuested a specific changeover date. Farniok stated January 1 is the contract date and the date when the new positions will be filled. Farniok stated the o�cers will attempt to become familiar with the new patrol area prior to that time. Lein reiterated the City should consider a shorter contract period in order to test drive it prior to committing to it for a long period of time. Page 20 of 26 � MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. (12. CONTRACT FOR LAW ENFORCEMENT SERVICES, Continued) McMillan stated when you are talking about people's jobs and livelihoods,test driving is not really the best situation. Lein stated after three years the chief of police will know whether this is working out and Orono would then have the option to pull out of the contract. Lein stated he understands there are jobs involved but there is also the Orono community that has to be thought about. Farniok stated it was a tough decision. Since Mound is disbanding their police departrnent,they wanted a longer contract. Mound understands their police department will not be coming back because of the startup costs. Farniok noted Mound wanted a longer contract than five years and had requested either a seven or eight year contract. Franchot stated this is Orono's proposal to Mound and that Staff and the Police Deparhnent have looked at everything that Mr.Lien has raised. Franchot noted the contract guarantees the revenue and Orono retains control over the costs. Lein stated a lot of his questions are based on public perception and that some of it is coming from Mound. Franchot commented he did attend the Mound City Council meeting and that Mound has spent a lot of time thinking about this proposal as has Orono. Franchot sta.ted in his view the questions are valid but that the City Council and Police Chief have answered them. Franchot stated he can assure Mr. Lein that there was no rush to judgment. While it was done expeditiously, it was not a rush judgment and it was not a foregone conclusion. Franchot stated this contract has been looked at almost entirely from Orono's perspective. Printup stated in his view that is exactly why the vote tonight should be postponed for a couple of weeks to allow the public to comment on it. It is the public's view that this is already a done deal. Franchot noted this item was published beforehand. Printup stated it has not been publicized in the same way it was publicized in Mound. McMillan noted a motion has been made to table this item to the September 24th meeting. VOTE: Ayes 1,Nays 4,Bremer,McMillan,Rahn,and Franchot opposed. Rahn stated he would like separate motions on the contract and the organizational chart. McMillan asked if the police chief is comfortable with that option. Farniok stated they are looking at an internal candidate for the deputy chief position but that they need to start assigning tasks in the near future. Farniok indicated a two week delay could be managed but a four week delay would be difficult. Rahn stated in his view it would be good to table the other items for two weeks. Page 21 of 26 1VIINUTES OF THE � ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. (l2. CONTRACT FOR LAW ENFORCEMENT SERVICES, Continued) Franchot stated his understanding of the discussion was that the issues raised by Council Member Rahn are things that the Council will still have the ability to affect. Franchot moved,Bremer seconded,to approve the Contract for Law Enforcement Services and to approve the 2013 organizational chart,excluding the details of the actual positions to be posted. McMillan stated the Council can talk about the benefits at their next work session. Mattick asked if the motion is acting on Items 12, 13, and 14, or just Items 12 and 13. Franchot stated his motion related to Item No. 12. VOTE: Ayes 4,Nays 1,Printup Opposed. 13. DEPUTY CHIEF-POLICE DEPARTMENT Printup moved,Bremer seconded,to table Item No. 13,with the understanding that benefits will be discussed at the City Council work session. VOTE: Ayes 5,Nays 0. 14. ADMINISTRATIVE ASSISTANT-POLICE DEPARTMENT Printup moved,Bremer seconded,to table Item No. 14 to the City Council work session.VOTE: Ayes 5,Nays 0. 15. ADOPT PRELIlVIINARY 2013 TAX LEVY AND BUDGET-RESOLUTION NOS. 6165 AND 6166 Olson stated the preliminary tax levy has to be certified to Hennepin County by September 17. The final budget and levy will be adopted at the December 10 City Council meeting. Public input will be allowed at that meeting. Olson stated the budget process started at the beginning of June. At the work session on July 20,the City Council was provided with a draft budget. A second draft of the budget was provided to Council on August 27. The budget being presented for consideration tonight has been adjusted to reflect the Council's input from the August work session. Olson noted the City's tax levy has basically flattened out since 2010 with no increase being proposed for this year. Orono is still experiencing some declining property values, averaging around 7.92 percent. The total taac lery required to fund the preliminary 2013 budget is $4,701,760. That is the e�ct same overall tax levy the City had last year,which was one of the City Council's goals. Olson noted the City's ta�c capacity rate did increase, which is a reflection of the continuing decrease in property values. Olson stated the charts on the overhead compare the tax impact of the City's taaLes on various valued homes. Assuming a 7 percent decrease in property values, if you own a home that was valued at $250,000 in 2012,the city's share of the taaces would decrease by approximately$27. On a$2 million home,the taxes would decrease by$2.47,and on a$500,000 home, interestingly,you would see a$2.72 increase which has to do with the way the formula works. Page 22 of 26 ' MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. (IS. ADOPTPRELIMINARY2013 TAXLEVYANDBUDGET, Continued) With a 5 percent decrease in property values,the$250,000 home would decrease by approximately$18 and the$500,000 home would see a$20 increase. On a $2 million home, it would amount to an$85 increase. Comparing the taa�impact at a zero percent change in value,all property classes on the chart would show an increase, with a$250,000 home coming in at$6.28 and the$2 million home coming in with an increase of$304. Olson noted there are not a lot of homes that have not done some improvements that would reflect a zero percent change in value. Olson stated as it relates to the City's tax rate history, it shows that in the early 2000s the City's t�levy was increasing fairly significantly,but at the same time the City's ta�c rate was decreasing. From 2009 to 2010,the CiTy started seeing an increase in the tax rate even though the City's tax levy leveled out. Olson illustrated the City's debt service needs on the overhead and the amount of levy that will be required to fund the debt service on existing bonds. Between 2014 and 2015,there is a significant decrease of approximately$80,000 in the debt levy needed and in 2016 there is another significant decrease. Olson stated the City's preliminary tax levy is$4,701,760. This is the same amount that was levied in 2011 and 2012. Olson noted the approval of the Mound service contract will not affect the levy but the revenues and expenditures will change significantly with the Mound contract. The general fund tax levy did increase by$14,000,which was offset by a decrease of$9,000 in the debt service and elimination of the park levy of$5,000. Building permit revenue has been increased by $35,000,which is a significant increase but is approximately$100,0001ower than last year. Olson noted there are some minor changes ranging from $1,000 to$2,000 in the various budgets but that overall the City's revenue budget did not increase from 2012. In addition,conditional use and variance fees are being reduced by$19,000 to reflect the actual amounts received in prior years. Golf course revenues have been decreased by approximately$15,000. Engineering/legal fees are pass-through charges that are accompanied by a$10,000 decrease in the expenditure budget. The decrease of$10,000 in the Drug Task Force revenue is based on information supplied by the task force regarding what they anticipate Orono will receive in the way of distributions. The expenditure budget was built with a 1 percent increase in wages,which is what the union contract calls for. There is a$50 increase a month for families who choose to have health insurance. Inflation has increased at 3 percent,which was determined by using the CPI Urban for the Minneapolis/St. Paul region, which is from July 1 st of last year to June 30th of this year. The Council had indicated they would like to see an expenditure budget at the same level as the 2012 budget. Staff was able to meet this goal and the preliminary budget represents a 0 percent increase from 2012. Planning and zoning had a net decrease of$14,000,which includes an increase of$10,000 in wages and benefits. The decrease is due to the RFP for engineering services that the City underwent last year. The engineering department and the general fund have been decreased by$15,000. The funding to the Gillespie Center was reduced by $9,500. Olson stated as it relates to the engineering and attorney costs,the City experienced significant decreases this year as well as from 2011 to 2012, when the City decreased the engineering and attorney expenditures by$25,000. Page 23 of 26 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,September 10,2012 7:00 o'clock p.m. (IS. ADOPT PRELIMINARYZOI3 TAXLEVYAND BUDGET, Continued) The total levy for debt service for 2013 is$755,500,which is a decrease of$9,000 from 2011. This money has been added to the General Fund tax levy. The levy increases slightly in 2014 and decreases by $123,000 in the 2015 budget year. Olson noted throughout the budget process,the draft budget information used to create the preliminary budget has not included the additional expenditures associated with providing police services to Mound. This budget is included as Budget Package A. Since the Council approved the contract earlier tonight,the Council should adopt Budget Package B. Budget Package B includes updated revenue and expenditure information to reflect the new police service contract. Approval of this package does not affect the ta�c levy. ' Franchot stated he is not sure why the City would commit itself to a lower levy at this point even though the City's budget is lower when there could be things that come up in the next couple of months. Bremer thanked Staff and Finance Director Ron Olson for their fine work on the budget and the information that has been presented. Bremer commented that hopefully property values will increase in the coming years. McMillan stated in speaking with other mayors from the Twin Cities area,they have noticed that there has been an increase in building permits being applied for. McMillan noted this is the third year of decreasing home values and that the City needs to make sure home values have hit the bottom and are on the rise before increasing Orono's tax levy. McMillan commented she appreciates the work of Staff in keeping the flat levy. Franchot stated he was not criticizing the tax levy but that he merely wanted to add in a buffer in the event something comes up in the next couple of months. Franchot noted that buffer could then be eliminated at the time the final budget is approved. McMillan opened the meeting up for public comment. Ralph Kempf, 3675 Togo Road,asked what the elimination of the park levy is about. Olson stated the City Council has decided that while there has been a$5,000 levy for parks in the past,it is not enough to really do any improvements. In addition,the park fund does not need the $5,000, so it was eliminated. McMillan stated it was basically a token amount and there were always questions on why it was there. The City's projections for the Park Fund were carried out into the future for 20 years and the City Council will be revisiting the CIP in the coming months. The projections demonstrated the Park Fund would do well for a while and did not need the $5,000. McMillan stated if there is a certain project or land acquisition the City wishes to pursue,there are other financing options. Printup moved,Rahn seconded,to adopt RESOLUTION NO.6165,a Resolution Adopting the Preliminary 2012 Tax Levy Collectible in 2013,and to adopt RESOLUTION NO. 6166,a Resolution to Adopt the Preliminary 2013 General Fund Budget as presented in Budget Package B, with a public hearing set for the regular Council meeting of December 10,2012,at 6:30 p.m. VOTE: Ayes 5,Nays 0. Page 24 of 26