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HomeMy WebLinkAbout04-14-2014 Council MinutesMINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 1 of 30   ROLL CALL The Orono City Council meeting met on the above-mentioned date with the following members present: Mayor Lili Tod McMillan, Council Members Cynthia Bremer, and Lizz Levang. Representing Staff were City Administrator Jessica Loftus, Finance Director Ron Olson, Assistant City Administrator of Long-Term Strategic Planning Michael Gaffron, Planning Coordinator Melanie Curtis, Public Works Director/City Engineer Jesse Struve, City Attorney Soren Mattick, Consulting City Engineer David Martini, 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 Item Nos. 7, 9, 13, 14, 15, 16, and 17 were added to the Consent Agenda. Levang moved, Bremer seconded, to approve the Consent Agenda as amended. VOTE: Ayes 3, Nays 0. APPROVAL OF MINUTES *2. CITY COUNCIL WORK SESSION OF MARCH 24, 2014 Levang moved, Bremer seconded, to approve the minutes of the Orono City Council work session of March 24, 2014, as submitted. VOTE: Ayes 3, Nays 0. *3. REGULAR CITY COUNCIL MINUTES OF MARCH 24, 2014 Levang moved, Bremer seconded, to approve the minutes of the Orono City Council meeting of March 24, 2014, as submitted. VOTE: Ayes 3, Nays 0. PRESENTATIONS 4. MEDIACOM BUILD OUT UPDATE – BILL JENSEN Bill Jensen, Regional Vice President, stated Mediacom installed fiber into the City Hall building, and that their interpretation of the original agreement was to build out 19.5 miles by October, 2015. After designing the build-out and laying it out on the map, it was discovered that the actual number of miles of cable was 16.6 miles. Jensen indicated based on their original agreement, Mediacom is willing to expand the area of build-out by two miles to meet the 19 miles that was agreed to. Jensen noted Mediacom would like to accelerate the build-out in 2014 and is now planning on building 9.17 miles this year. Jensen noted the build-out planned for 2014 is depicted in green on the map and consists of the upper left quadrant on the map illustrates the area that will be built out. Construction should commence in the next week or ten days. The plan is to wrap up the total build-out of 16.6 miles by the late summer/early fall of 2015. Jensen stated somewhere between now and this coming fall, Mediacom would like to get together with the City to decide where the additional 2 plus miles should be built out. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 2 of 30   (4. MEDIACOM BUILD OUT UPDATE – BILL JENSEN, Continued) Jensen indicated the construction manager will be visiting City Hall in the near future to work with Staff on obtaining the appropriate permits. Jensen noted the bulk of the construction will be underground but there will be some aerial attachments and that they do not anticipate any major issues during the construction. Jensen stated the major issue is to make sure the soil is not saturated, which would cause additional damage to the yards of residents. McMillan stated a number of citizens have inquired about when the build-out will occur in front of their properties. McMillan asked what the City should tell them about Mediacom’s schedule. Jensen stated generally speaking it takes approximately a week to build a mile of cable. The planned 9 plus miles will take between two to three months depending on the weather. Jensen stated what has worked out in the past year or so is when the City Administrator gets a request from a customer who is not sure if they will be covered by the 2014 build-out, the City Administrator will send an e-mail to Mediacom and an answer will be provided within 24 hours. Jensen stated Mediacom can also provide the City with a list of addresses to the City Administrator that will be included in the build-out. McMillan stated she would like to see an update from Mediacom twice a month. Jensen indicated that would be fine. Jensen stated if there is underground work involved, restoration will also need to occur. A few days prior to activation, Mediacom will notify the City Administrator and the resident that the cable is ready to be activated. Jensen noted the resident does not need to buy cable or bundle their services if they do not want to. Levang stated in her view it would be helpful for the City to know where Mediacom is in the construction process so they can alert any interested residents when construction will be occurring on their street. Jensen stated Mediacom will provide the address list, including the house number, that will be covered in the first 9.17 miles, and then provide an update on what has been activated in that area. Jensen stated it is Mediacom’s goal that every customer is satisfied with the restoration; and if not, Mediacom will come back out and fix it to the customer’s satisfaction. Jensen stated the construction crew will also speak with the residents prior to commencing construction and that they will inform any resident if there will be an extra charge due to the length of their driveway. Jensen stated Mediacom also has 105 megabit per second high-speed Internet service and that just today down in Iowa they activated that 305 megabit Internet service. That high-speed service is expected to be in the Twin Cities area sometime this summer. Jensen noted Mediacom also provides home security. Jensen suggested the City Council begin to think about where they would like the additional two miles built out. Jensen noted the first combined franchise fee payment and PEG fee payment to the City of Orono will be cut next week and will be delivered to City Hall within the next week or two. McMillan commented the residents are happy to receive the service and that so far the City’s partnership with Mediacom has been a win/win situation. McMillan noted the City Council meetings are now being live streamed and that they hope the partnership continues to be a success. The City Council took no formal action on this item. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 3 of 30   5. ORONO POLICE DEPARTMENT ANNUAL REPORT Police Chief Correy Farniok stated he would like to provide the City Council with a snapshot of what occurred with the Police Department in 2013. Farniok stated Orono currently provides contract police services to Minnetonka Beach, Mound, and Spring Park. Farniok stated the police department’s organization chart has changed slightly, with some of the part-time officers moving up into full-time positions due to retirements and with the addition of the deputy chief position. There are currently 27 full-time officers and four part-time officers. Farniok noted as it relates to calls for service, the police department has attempted to determine what days and times of the week require the most on-duty officers. The majority of the activity occurs on Friday nights as well as Tuesday and Wednesday evenings, but it also is dependent on what is happening within the City. Farniok noted there were slightly over 26,000 calls for service in 2013, with a lot of those related to traffic enforcement and traffic calls related to someone’s driving. There were 414 calls related to property and animal service as called in through dispatch. Farniok stated the police department also monitors its response time to the various calls, and the overall average response time in 2013 for priority one calls was 4.65 minutes. Farniok noted the service area is approximately 31 square miles. The response time is also broken down by the various contract cities and that overall response time is between 3.5 and 4 minutes. Farniok stated the police department uses the response times to determine whether the patrolled areas should be expanded. Farniok noted Orono and Mound receive around 41 to 42 percent of the services among the contract cities. Farniok noted as it relates to Part I crimes, the police department responded to one homicide in Orono, which was the first homicide in the City in over a decade. Farniok noted the City did experience a spike in thefts, with the vast majority of those being crimes of opportunity where someone has left their car or house unlocked. The police department is attempting to increase its education component to help raise the level of awareness among the residents to help deter crime. Farniok noted robberies in the area decreased last year as well as aggravated assaults. Farniok stated the biggest concern received from the citizens is why the police department does what it does in connection with traffic enforcement. Farniok noted the police department issued 84 DUIs in 2013, with four of those DUIs resulting in substantial injuries to various parties. Overall the police department issued slightly over 3,000 citations, with 359 of those being seat belt violations and 691 speeding citations. Farniok noted there were 273 traffic crashes in the area, with two involving pedestrians and 29 of the accidents resulting in injuries. Farniok noted there is a huge campaign going on currently to crack down on distracted drivers. Farniok noted as it relates to cases being investigated by the police department, there were 645 cases that were referred to the investigation unit and 312 of those resulted in arrest. The police department also investigated 24 deaths, with four of those determined to be suicide. Farniok noted there was one officer involved shooting in 2013, which was the first for the police department. Farniok stated in addition there were 576 alarms, with 483 of those being false alarms. Farniok stated the number of false alarms resulted in a huge time commitment for the police department and that steps are being taken to educate the residents on false alarms. Fines are also imposed on multiple false alarms. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 4 of 30   (5. ORONO POLICE DEPARTMENT ANNUAL REPORT, Continued) The police department also responded to 875 medicals, 223 welfare check fraud investigations, and 123 lockouts. Farniok stated the police department also awarded two life-saving awards to two police officers who rendered first-aid to two different individuals. Farniok stated as it relates to the West Metro Drug Task Force, 83 search warrants were served, which resulted in 19 arrests and 19 handguns being seized. The Drug Task Force seized 20,738 grams of marijuana and dismantled five grow operations. The amount of methamphetamines seized was 183 grams. Farniok noted so far this year the Drug Task Force has already seized 10 pounds, which is a significant increase. Farniok stated they are also seeing an increase in the use of prescription drugs by teenagers. Overall, the Drug Task Force seized 1.7 million grams of drugs last year. Farniok stated the Drug Task Force has already seized that amount so far in 2014. The total amount of drugs seized off the street last year amounted to $1.7 million. Farniok stated the area is seeing an increase in the use of methamphetamines, heroin, and large batches of marijuana. Farniok noted the police department is looking to expand its education component in 2014, by exploring the possibility of opening up a Facebook page and a Twitter account to help provide crime alerts to more residents in a timely manner. Levang asked as it relates to the traffic crashes, whether the police department feels there are different sections of roadways that are more dangerous than others. Farniok stated overall the crashes relate to driver activity or weather and not to the layout or design of the roads. Farniok stated if the police department does notice something on a roadway that may contribute to a crash, such as the wrong placement of a sign; they work with the Minnesota Department of Transportation to resolve that issue. McMillan asked if the police department is seeing an increase in the number of distracted drivers in the area. Farniok indicated they are, but that it is difficult to issue a ticket for texting or navigation because the officer has to actually observe the person doing that. Farniok stated currently the police department is attempting to address that through education but that it is likely in a few years the laws may change and become stricter involving the use of cell phones in a car. Bremer stated she would like to thank Police Chief Farniok for his excellent work. Bremer noted the Police Commission met last week with the contract cities and that they received a slightly more detailed report on the police activities. Bremer stated in her view the efforts of Police Chief Farniok have helped make the Police Commission a more cohesive and efficient group. McMillan stated in her view the contract cities are happy with the response times and that the police department is doing an excellent job. Levang stated she has heard a number of positive comments from the residents and that Mound residents are happy with the number of police cars patrolling and the increased visibility of the police in their area. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 5 of 30   PLANNING COMMISSION COMMENTS – JOHN THIESSE, REPRESENTATIVE Thiesse stated he had nothing to report but would be available for questions. PUBLIC COMMENTS None PLANNING DEPARTMENT REPORT 6. WILCOX, 4550 WOLVERTON PLACE – VACATION OF CONSERVATION EASEMENT – PUBLIC HEARING – RESOLUTION NO. 6380 Curtis stated on April 10, 2013, pursuant to City Council Resolution 6136, the City received a Permanent Tree Stand and Native Grassland Preservation and Conservation Easement over the property located at 4550 Wolverton Place. The easement is currently the subject of litigation pending in Hennepin County District Court and its continuing viability has been brought into question, which has resulted in Staff and its legal counsel to re-evaluate the easement. Curtis noted the Conservation Easement was granted in conjunction with the subdivision of the 4500 Wolverton Place parcel. The grassland south portion of the easement exists over most of the current property at 4550 Wolverton Place. The grassland south area is primarily grass and it appears as a yard area surrounded by a private fence. There is no public use of the property covered by the grassland south area. Due to the nature and viability of the grassland south area, including its utility for the citizens of Orono, Staff finds that there is limited to no public interest in maintaining the grassland south portion of the conservation easement. Curtis stated the City Council should open the public hearing, consider comments from the public, and then make a determination on whether to adopt or amend the attached resolution vacating the conservation easement. Mayor McMillan opened the public hearing at 7:34 p.m. Revis Stephenson, 1850 Fox Ridge Road, stated he owns the parcel adjoining this property and that he is in favor of vacating the easement. Stephenson asked why the entire conservation easement is not being vacated if it is no longer needed for public purpose and it is in the public’s interest to vacate the conservation easement. Stephenson encouraged the City Council to vacate the entire conservation easement. Mattick stated in order to vacate an easement, public notice has to be given and that the conservation easement over Mr. Stephenson’s property has not been noticed for a hearing tonight. Mattick stated it would not be possible to amend the resolution to include Mr. Stephenson’s parcel. Stephenson stated he wished he had been notified prior to this about the vacation so they could have addressed that. McMillan indicated that would need to be a separate legal action. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 6 of 30   (6. WILCOX, 4550 WOLVERTON PLACE – VACATION OF CONSERVATION EASEMENT – PUBLIC HEARING – RESOLUTION NO. 6380, Continued) Mattick stated it would be a separate request from this application. Stephenson indicated he was never notified of that. Mattick asked if he received notice about tonight’s hearing. Stephenson stated he did receive notice about this application but that he did not get a notice that he could also vacate his easement. Bremer noted the City Attorney was speaking about notice for this application. Stephenson asked what he would need to do to vacate his easement. Mattick indicated he would need to file a separate application. Mayor McMillan closed the public hearing at 7:37 p.m. Bremer moved, Levang seconded, to adopt RESOLUTION NO. 6380, a Resolution Vacating a Portion of a Conservation Easement Located on 4550 Wolverton Place in the City of Orono. VOTE: Ayes 3, Nays 0. *7. #14-3655 BRIAN BUTTERFIELD ON BEHALF OF JOE AND DONNELLE FELDMANN, 805 FOREST ARMS LANE – VARIANCE – RESOLUTION NO. 6381 Levang moved, Bremer seconded, to adopt RESOLUTION NO. 6381, a Resolution Granting Variances to Municipal Zoning Code Sections 78-78-1279(6) and 78-1605 for the property located at 805 Forest Arms Lane. VOTE: Ayes 3, Nays 0. 8. #14-3656 NELCO LANDSCAPING ON BEHALF OF THOMAS RANGAARD, 2765 SHADYWOOD ROAD – AFTER-THE-FACT VARIANCE AND CONDITIONAL USE PERMIT Curtis stated last March the property owner received a permit from the City to remove a legally non- conforming porch, also known as a hot tub room, from the south side of the home within 75 feet of the lake. In February of 2014, the applicant met with Planning Staff to discuss City requirements and the various aspects of some grading and construction projects that were already underway. The projects include construction of two south facing elevated patios to replace an existing deck on the east and an existing porch with an on-grade patio on the west side of the property which have been removed; repaving the existing sidewalk with paver stones; and installing two rain gardens on the north side of the property. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 7 of 30   (8. #14-3656 NELCO LANDSCAPING ON BEHALF OF THOMAS RANGAARD, 2765 SHADYWOOD ROAD – AFTER-THE-FACT VARIANCE AND CONDITIONAL USE PERMIT, Continued) Curtis stated creation of the rain gardens and installation of the elevated patios result in filling and grading within 75 feet of the lake, which would require a conditional use permit. The eastern patio is not an exact in-kind footprint replacement and appears to be larger and extend closer to the lake. Measurements from the 2007 survey and the current survey show the deck to be 319 square feet and the proposed patio to be 377 square feet. According to State Statute, an existing non-conforming structure may be reconstructed in-kind. The sidewalk, the west porch conversion to a patio and pavers appear to be in-kind replacements and can be approved administratively. The existing paver patio in the space between the former porch and the home was initially proposed to be removed by the applicant. After conversations with the homeowner, the patio is now proposed to remain. Curtis noted on March 17, the Planning Commission held a public hearing and voted 6-0 to recommend approval of the after-the-fact variances and conditional use permit with conditions. The applicant has met the majority of the conditions at this time. Staff supports approving the conditional use permit for construction of the rain gardens and the grading involved with construction of the two elevated patios. During the public hearing, the neighbor to the west voiced opposition to the plan and has also submitted written comments. Curtis noted that Staff has spoken with the applicant today and on Friday about the eastern patio. The applicant indicated that the east patio was constructed to the extent of the existing deck footings and suggested that the survey may not accurately reflect the pre-existing deck. The applicant is asking the City Council to grant the hardcover variance for the as constructed patio which, according to the survey, is approximately 60 square foot survey than the 2007 deck. This patio extends 15 feet from the house where the previous deck, according to the survey, extended 13.5 feet. Curtis noted Staff recommends denial of the variance for hardcover expansions shown in the proposed east patio footprint but the plans for the patio should be revised to match what previously existed. If the east patio is revised as noted above, none of the hardcover improvements will require variances as they will be considered in-kind replacements. The Council should consider directing the applicant to revise the plans for the east patio and consider directing Staff to draft a resolution for consideration at the April 28 meeting. Samuel Geer, Designer, stated the original design intent was to build the east deck or patio C within the same footprint of the previously existing deck. Nelco Landscaping began construction of the project last fall and completed the footings of that deck prior to the onset of winter and temporary closure of the construction site. Nelco was not aware that construction of the proposed paver deck constituted fill within 75 feet of a water body. Upon notification by the City that a variance and conditional use permit was required, Nelco filed the appropriate paperwork to start the process. Geer stated the goal was to receive a variance that would allow the project to be built as initially designed with the steps extending beyond the previous footprint of the previous existing structure. As Staff has described, this was not recommended by the Planning Commission, and as a result, changes were made to follow the recommendations of the Planning Commission and Staff to the letter. Geer indicated they have completed a stormwater pollution prevention plan and have been conducting weekly site inspections. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 8 of 30   (8. #14-3656 NELCO LANDSCAPING ON BEHALF OF THOMAS RANGAARD, 2765 SHADYWOOD ROAD – AFTER-THE-FACT VARIANCE AND CONDITIONAL USE PERMIT, Continued) Geer stated in essence their original designs were created from the site survey which was provided as a reduced sized scan which was then scaled up. The deck designs were designed at 3 inches to a foot. As a result of resizing the survey, an error may have occurred. The scaling difference was minor enough that it escaped everyone’s notice until very recently. As a result, the amended plans reflect the design changes necessary to meet the recommendations of the Planning Commission. Geer stated they are open to removing some of the other hardcover on the site in order to build the deck as designed since at this stage redoing the plans for a major revision would cause them to have to go through the public hearing process again, which would cause an undue hardship. Geer stated the overall project is designed to have a positive water quality benefits, such as a rain garden and restoration of the shoreline. In addition, the decks have been designed to be permeable decks and not add to the amount of runoff leaving the site. Geer stated their goal has always been to design a beautiful landscape that will serve their client’s needs and improve the quality of the runoff. The goal has also been to make a good faith effort to work with the City to find an acceptable solution. Geer indicated they have made every effort to comply with the recommendations of the Planning Commission and that they are humbly requesting the City Council approve the variance and conditional use permit in recognition of the challenging zoning conditions given the fact that this property has shoreline on both sides which makes it impossible to make improvements to the hardcover without some sort of variance. McMillan asked if the applicant would be able to remove hardcover from some other piece of the project if the elevated patios remain. Curtis stated the flattened area that is labeled as pavers is designed to fill in that spot and is not part of the elevated patio area. Curtis stated the pavers could easily be removed. Levang asked for clarification on the hot tub room. Levang noted at the Planning Commission meeting there was a question regarding the accurate size of that structure. Curtis indicated Staff does not have a question about the size of the hot tub room and that the initial question came from the adjacent property owner who thought it was a deck. Curtis stated the City does have a permit calling it a hot tub addition. Levang asked if the footprint is going to change. Curtis indicated it will not. Levang noted the west patio appears to be an in-kind replacement and asked if it actually will be an in-kind replacement. Curtis stated for all practical purposes it appears to be an in-kind replacement. Levang asked if there is some question about the eastern patio. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 9 of 30   (8. #14-3656 NELCO LANDSCAPING ON BEHALF OF THOMAS RANGAARD, 2765 SHADYWOOD ROAD – AFTER-THE-FACT VARIANCE AND CONDITIONAL USE PERMIT, Continued) Curtis stated according to the 2007 survey, the new patio appears to be shaped slightly differently at the corner and does not appear to be quite as deep as the existing patio. Curtis stated it appears to be 13.5 feet versus 15 feet and is not very noticeable. Levang asked if Staff is suggesting that if the applicant wants to increase the eastern patio/deck, that he then remove some of the paver in between the two patios to adjust for that. Curtis stated if the City Council is considering approving the eastern patio at the size proposed a satisfactory solution would be to remove an equivalent amount of hardcover. Levang and Bremer indicated they would be fine with that solution. Levang moved, Bremer seconded, to direct Staff to draft an approval resolution for Application No. 14-3656, 2765 Shadywood Road, with the condition that an equal amount of hardcover be removed as what is being added for the eastern patio/deck. VOTE: Ayes 3, Nays 0. McMillan noted the resolution will be back before the City Council in approximately two weeks. *9. #14-3657 REVISION, LCC ON BEHALF OF LUCAS AND ELIZABETH DETOR, 1065 FERNDALE ROAD WEST – VARIANCE – RESOLUTION NO. 6382 Levang moved, Bremer seconded, to adopt RESOLUTION NO. 6382, a Resolution Granting Variances from Municipal Zoning Code Section 78-1279(6) for the property located at 1065 Ferndale Road West. VOTE: Ayes 3, Nays 0. 10. #14-3658 SUNCREST BUILDERS – WAUSAU HOMES ON BEHALF OF JOHN AND ALICE REINMANN, 440 BIG ISLAND – VARIANCES AND CONDITIONAL USE PERMIT – RESOLUTION NO. 6383 Curtis stated in August of 2013, the subject property was involved in a lot line rearrangement to combine three nonconforming Big Island Record Lots into two Record Lots. The property currently contains a 700 square foot seasonal cabin. The property owner would like to construct a new 2,400 square foot seasonal cabin and maintain the use of the existing 700 square foot cabin as a guest cabin. Guest cabins are a permitted accessory use, but a guest cabin which exceeds 600 square feet requires a conditional use permit. Curtis noted in 1987, permanent lot area and width variances were granted for a number of the non- conforming lots on Big Island. The subject property has Record Lot status and the property can be used for a one-family seasonal recreational use without a structure; i.e., a dock, or one new seasonal dwelling may be built, or an existing seasonal dwelling may be used, improved, expanded or replaced. Because the property owner wishes to maintain use of the existing cabin as a guest cabin, a lot area variance is required in order to construct the new cabin since it is expanding the use. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 10 of 30   (10. #14-3658 SUNCREST BUILDERS – WAUSAU HOMES ON BEHALF OF JOHN AND ALICE REINMANN, 440 BIG ISLAND – VARIANCES AND CONDITIONAL USE PERMIT – RESOLUTION NO. 6383, Continued) Curtis stated Staff’s initial recommendation regarding the plumbing within the guest cabin was for removal. Since the Planning Commission meeting, Staff has done additional research into the little-used provision of the RS-District Zoning Code and has determined the 700 square foot accessory guest cabin must be served with plumbing. Curtis noted since the Planning Commission’s review, the applicant has revised the plan so as to not encroach into the average lakeshore setback and they will be removing the loft area from the cabin. Curtis noted due to the winter conditions, the applicant has been unable to provide a conforming septic system design to serve the four bedroom cabin, which includes the basement and the existing two bedroom cabin. Curtis indicated it is her understanding the applicant will be meeting the septic designer this week. If it is determined that the site cannot support the necessary 6-bedroom septic treatment area as well as the required alternate site, the applicant will need to make additional bedroom reductions in the proposed cabin, remove all plumbing from the existing 700 square foot cabin, or a combination of both. If the plumbing is removed from the 700 square foot cabin, it will no longer be considered a guest cabin or bunk house and must only be used as a non-habitable building. Curtis noted the Planning Commission reviewed this application at their March meeting and voted 6 to 0 to recommend approval of the guest cabin conditional use permit and lot area variance. There were no public comments regarding this application. Curtis stated that Staff recommends approval and has drafted a resolution reflecting approval of the lot area variance permitting construction of the new seasonal cabin and approval of the conditional use permit to allow maintenance of the 700 square foot guest cabin subject to strict adherence to all applicable environmental codes and all building and zoning codes. Curtis noted once septic testing is completed, if a 6-bedroom sized treatment area is not feasible, the application may change. If the solution involves a combination of reducing bedrooms in the main cabin and/or the existing 700 square foot cabin, the lot area variance and conditional use permits will be necessary. However, if the solution the applicant chooses is to remove the plumbing from the existing cabin and convert it to non-habitable storage, the conditional use permit and variance for lot area are no longer necessary. Curtis noted the Council should consider amending or adopting the resolution which is conditioned on confirmation that a viable 6-bedroom septic treatment area and alternate site are feasible. If the approvals are no longer necessary, the resolution will not be recorded. McMillan stated she does not have a problem with the application. Levang asked what the difference is in the location of the new cabin so that it is now out of the average lakeshore setback. Curtis indicated they rotated it slightly and moved it a little further back. Curtis illustrated the portion of the cabin that encroached into the average lakeshore setback and the new proposed location. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 11 of 30   (10. #14-3658 SUNCREST BUILDERS – WAUSAU HOMES ON BEHALF OF JOHN AND ALICE REINMANN, 440 BIG ISLAND – VARIANCES AND CONDITIONAL USE PERMIT – RESOLUTION NO. 6383, Continued) Levang stated she would like to hear from the property owner on how he feels about the conditions being imposed relating to the septic. John Reinmann, 440 Big Island, stated they are removing the loft part of the guest cabin off but that he is unsure how the City is calculating it as six bedrooms between the two cabins since only three bedrooms are being proposed for the new structure and the existing cabin is one bedroom. Curtis stated it is Staff’s understanding that it is a two-bedroom cabin that exists, but that if additional information is provided to Staff reflecting otherwise, they can work with the septic design. Curtis indicated state septic code considers a basement a bedroom regardless if there is a bedroom proposed, which is something that Staff has only learned recently. Bremer stated if there are three bedrooms on the main floor and a basement, the structure would then be considered a four-bedroom structure. Reinmann indicated the basement would have one door from the outside and will be used for storage and not a bedroom. Curtis stated it is Staff’s understanding of the septic code that it has the potential to be a bedroom. Curtis stated she understands the logic behind the state statute but that it was not something that Staff had considered prior to this point. McMillan noted this will be a seasonal cabin and will not be occupied year-round. Curtis stated a seasonal cabin may get more intense use in a shorter period of time than a normal residence which is why it is important to understand the sizing of the structures. Reinmann stated he would have preferred to leave the cabin where it was since it was a natural clearing and that relocating the cabin will require additional trees be removed. Reinmann indicated they are fine with the conditions and that they are willing to work with the City on the septic. Reinmann noted the existing septic system is relatively new and the cabin can only be used 180 days out of the year. Bremer moved, Levang seconded, to adopt RESOLUTION NO. 6383, a Resolution Granting Variances from Municipal Zoning Code Sections 78-565(2)(b), 78-566(3), 78-568, and a Conditional Use Permit Pursuant to Municipal Zoning Code Section 78-565(2), with the understanding that the resolution will not be filed if the plumbing is removed from the guest cabin. VOTE: Ayes 3, Nays 0. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 12 of 30   PUBLIC WORKS DIRECTOR/CITY ENGINEER’S REPORT 11. REQUEST TO ACCESS 2629, 2627, AND 2625 CASCADE LANE FROM KELLEY PARKWAY Struve stated the developer who purchased 32 lots in the Stonebay Development has made a request with Staff to access 2629, 2627, and 2625 Cascade Lane from Kelley Parkway for a limited period of time. These lots currently have access from Cascade Lane, which is a private road and maintained by the homeowners association. Due to load restrictions, the builder requests access to the lots from Kelley Parkway. The developer has indicated he intends to replace all damaged sidewalk, curb, and landscaping. The developer also offered to give the City an escrow in this amount to ensure the work is taken care of appropriately. Staff has evaluated their request and is recommending denial for the following reasons: 1. The properties have access from Cascade Lane. The homeowners association is enforcing the load restrictions until the State removes them. Since their access is limited because of road restrictions, it is Staff’s opinion that this does not fall into an emergency situation where the City would allow access to the lots from a different roadway. Typically the City never issues exemptions to road restrictions unless there is an emergency such as well failure or septic or sewer system failure posing an imminent threat to public health. There is also an exemption for utility company service vehicles for power outages, gas leaks, emergency communication, line down, or line severed. 2. Potential impact to the traveling public. 3. Kelley Parkway is a major route for emergency vehicles. By allowing the contractor to use this area as access, there is potential for the roadway to be blocked when they are bringing in or taking out materials and equipment. 4. There are trees in this area and their root structure will be impacted. This can take years before the affects would be visible and the City would not have an escrow to replace them. 5. There are light poles or wiring in this area that could be damaged. 6. While they can replace broken curb and sidewalk, there will be a very noticeable color difference between the new and the old. It is the viewpoint of Staff that this would be a visual impairment for many years to come. 7. There will be damage to the roadway that cannot be feasibly corrected by their equipment. For instance, the excavator will more than likely create indents into the pavement that cannot be easily repaired. Bill Gleason, Developer, stated they now own 32 lots in the Stonebay neighborhood and would like to construct model homes on three of the lots that are adjacent to Kelley Parkway. Gleason stated one of the difficulties they have run into is that the model home that currently is located on one of the lots is not the type of home that can be built on the remaining lots since they are smaller sized lots. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 13 of 30   (11. REQUEST TO ACCESS 2629, 2627, AND 2625 CASCADE LANE FROM KELLEY PARKWAY, Continued) Gleason stated the other difficulty they have is that Cascade Road is a 7-ton road and is being treated as a 4-ton road with the road restrictions. Gleason stated they are proposing that they would enter off of Kelley Parkway, which is a 9-ton road. Gleason indicated the lot they would be entering on as well as the adjacent lot is owned by them. Gleason stated it would be necessary for the equipment to cross over the sidewalk, which will then need to be replaced. Gleason stated they would be utilizing smaller trucks to haul in the concrete forms and rock and sand. Another option would be to air lift in the forms, which is not very feasible since the forms are rather heavy. Gleason indicated the homeowners association is not opposed to this and that in his opinion Cascade Road would not be damaged by the equipment. Gleason stated if they do damage any portion of the road, they would be willing to repair it. Gleason stated the other reason they are requesting this new access is that given the housing market currently, there is a limited number of subcontractors available to do the work, and if they are not able to start the work in the next week or two, they would miss their window of opportunity and would have to wait another 30 days before the subcontractors become available to do the work. Gleason noted the current property owners in Stonebay are required to pay dues to the homeowners association over the entire development and that if more homes are constructed within the development, those dues would decrease. Gleason reiterated they do have the wherewithal to fix any damage that is caused by bringing in the forms off of Kelley Parkway, and noted that they own the remaining lots so they will be involved with this development for the next couple of years. McMillan asked if they are planning to pour concrete between now and May 15. Gleason indicated they would be pouring the concrete over the berm. Gleason stated they would like to dig and pour the foundation and then begin framing the homes. Gleason stated the other option is to bring in the forms one at a time, which will cause more pressure and traffic on the road than if the forms were all hauled in at one time. McMillan asked if the majority of the work would be completed between now and May 15. Gleason indicated the homes would likely be framed by the time the road restrictions are lifted. Gleason asked if the road restrictions would be lifted by May 15. Struve indicated the road restrictions are in effect for eight weeks. Gleason stated in his view they could drive on Cascade without causing any damage but that he cannot change the way the road is rated. Struve noted the homeowners association could grant access on Cascade but that most residential streets without Orono are rated at 4-ton during road restrictions. Struve stated the road could be rated higher but that if it was a city street, it would be viewed as a 4-ton road. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 14 of 30   (11. REQUEST TO ACCESS 2629, 2627, AND 2625 CASCADE LANE FROM KELLEY PARKWAY, Continued) Gleason stated the original developer is present tonight and that he has indicated the roads were constructed close to the same standards as Kelley Parkway. Gleason stated the only damage they foresee happening is to the sidewalk, which they would be able to fix right away. Levang asked if there is any way the rating for Cascade could be verified. Struve stated the City knows what the road was originally designed for but that he does not know what the underlying soil conditions are. Struve stated he personally would classify it as a 4-ton due to the high water table and the poor soil conditions in the area. Struve noted he just received the information late this afternoon and has not had time to thoroughly review it. Gleason stated the homeowners association is going by whatever the City enforces. McMillan noted the homeowners have to pay for the maintenance. Gleason stated if the road is going to be classified as a 4-ton by the City, he cannot go back to the homeowners association and say it should be rated higher. Gleason stated in his view access off of Kelley Parkway is their only option at this point. McMillan asked how they could access Cascade from Kelley Parkway. Gleason pointed out the area they would be accessing Cascade off of Kelley Parkway. McMillan asked when they would like the model home to be completed. Gleason indicated they would like to finish it as soon as possible. Gleason stated they ran into some complications from the beginning because they had to redesign the house plans and that they are anticipating the model home would be completed within 90 days. Gleason noted they would only need to access Cascade from Kelley Parkway to bring the concrete forms and rock and sand in. Levang asked if there are any other options that would be available. Struve stated if the Council deems this option is okay, the City could obtain an escrow. Struve stated it is not an ideal situation on a busy road and that it has emergency vehicles traveling on it on a fairly regular basis. Struve stated he does not know if the equipment would be blocking the road at any time. Levang indicated she has those same concerns with the emergency vehicles and that there is school traffic as well. Gleason indicated they would not be blocking the road but that he understands what Council Member Levang is saying. Gleason stated the equipment would be smaller than what they would use if there were no road restrictions. Gleason stated the pump truck would be located in a parking area to pump over the berm and would not be blocking the road. Gleason stated they would avoid hauling anything in during the busy times for the schools and that he would work on a schedule with the Public Works Director. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 15 of 30   (11. REQUEST TO ACCESS 2629, 2627, AND 2625 CASCADE LANE FROM KELLEY PARKWAY, Continued) McMillan indicated she would be going with Staff’s recommendations and that a number of builders have to comply with the road restrictions. Bremer indicated she would be in favor of the developer putting up an escrow. Struve noted Mr. Gleason did indicate he would be willing to put up an escrow but that he does not know Mr. Gleason personally and that other developers have made promises that were not followed through on. Gleason stated they would be involved with this development for the next two years and would not be leaving any time soon. Gleason stated their commitment is stronger than a regular contractor and that they are building up the development that is in need of additional residents. Gleason stated there would only be two times they would need to access off of Kelley Parkway with the forms and that they are willing to put up an escrow. Struve stated he would still prefer they not access off of Kelley Parkway but that the City could require an escrow to cover any damage that might occur. Levang asked if there would only be two times or two trips. Tom Osfar, Builder, stated they would require two trucks to bring all the forms in on one day. Osfar stated the access would allow them to get off the road and into the lot next door, and if that is not allowed, they would need to unload on the boulevard and then make a number of trips with a bobcat, which would likely be more disruptive. Levang asked how many trips would be necessary to haul the rock in. Osfar stated in his opinion they will require ten loads of rock. Osfar stated the trucks would come in, drop their load off, and then leave. Osfar stated if the equipment is off the main road that would be better for everyone than if they have to stage the unloading. Levang stated it is difficult for the City Council to make a decision on the fly given the fact that new information has been provided tonight. Levang asked if they are only talking between 15 to 20 trips, whether that is something that can be managed on Kelley Parkway. Levang stated she has a concern about the emergency vehicles having access. Police Chief Farniok stated if they are only planning on having two trucks come in with the forms on one day that would not be a problem as long as they provided the police department with notice several hours ahead of time. Farniok stated he also would like the trips not to occur during the busy school hours. In regards to the escrow, he would recommend that language be included to the effect that an administrative fine will be imposed if the developer does not notify the police department ahead of time. Farniok stated he does not foresee it being a problem if the police department is given notification ahead of time and the debris is cleaned up immediately. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 16 of 30   (11. REQUEST TO ACCESS 2629, 2627, AND 2625 CASCADE LANE FROM KELLEY PARKWAY, Continued) Loftus stated philosophically the point of the road restrictions is that the City believes the soil conditions under the roadways are not ideal and that those assets need to be protected. Loftus noted Orono has a strong tradition of not waiving road restrictions except in the case of an emergency and that this has the possibility to set a precedent. McMillan stated the City has only granted exceptions in the past for emergencies. Struve noted the City Council would not need to grant an exemption to the road restrictions on Kelley Parkway and that the builder would still be held to the 9-ton rating. Struve stated the Council would be granting them access to a road that they feasibly do not have access to at the present time. McMillan stated it would not be an exact precedent but it would be a precedent to the extent that the Council is accommodating home building activity rather than an emergency situation. Bremer stated she would second the motion for purposes of discussion but that she would not be voting in favor of the motion. Levang moved, Bremer seconded, to deny access from Kelley Parkway to Cascade Lane. Osfar noted they are not asking for an exemption to the road restrictions but are merely asking for access to the developer’s property from a legal road. McMillan stated the exemption is to the city sidewalk. Osfar stated contractors typically drive over sidewalks and other city-owned land, and if any damage occurs, they are responsible to repair it. VOTE: Ayes 2, Nays 1, Bremer Opposed. 12. 2014 STREET IMPROVEMENT PROJECTS Struve stated in front of the City Council tonight are some proposed road projects for 2014. In 2013, the City Council discussed the City’s sanitary forcemain conditions on Rest Point Road and Rest Point Circle. Following that discussion, the Public Works Department explored the sub grade in those areas to determine whether the roads could be reclaimed rather than reconstructing the entire road. Also in 2013, the City had to repair a significant portion of West Lafayette Street. Struve indicated the sub grade on West Lafayette Road is not suitable for the reclaiming process and will need to be fully reconstructed. Based on the 2011 Pavement Management Update, the cost for this will be approximately $350,000 based on the assumption that the road would be widened from 20 feet to 28 feet. Struve stated during the design process, Staff will evaluate several options for West Lafayette Road and will provide Council with some options and the costs associated with those options. Struve indicated the City could utilize the remaining 2013 General Fund Balance and reduce the unreserved/undedicated fund balance to help pay for these projects. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 17 of 30   (12. 2014 STREET IMPROVEMENT PROJECTS, Continued) McMillan noted the City has been working on Rest Point and that they have a pretty good handle on those projects, but that there are certain areas on West Lafayette that are worse than other portions further west. Bremer asked if the Mayor is thinking that certain portions of West Lafayette could be reclaimed. McMillan stated in her view portions could be reclaimed and other portions reconstructed similar to Watertown Road. Struve stated with the reclaim operation, they would be able to strengthen the base and resolve some of the underlying soil issues. Struve stated the only difference with Watertown Road is that there was a considerable base underneath the pavement and that the samples taken on West Lafayette Road show there is little to no base under the roadway. Struve stated in his view a reclaim option or an overlay would not be a good solution or use of funds on West Lafayette due to the underlying soils. Struve noted they have not explored West Lafayette Road fully and that they could do a feasibility study on the road prior to preparing any plans and specifications. Levang asked whether the width of West Lafayette would need to be widened. Levang stated in her view since it is a dead-end road with limited homes located on it, it may not need to be widened. Struve stated the road is currently 20 feet wide and that if parking is allowed on both sides, the road would be a bit narrow and probably should be expanded, but that he is not aware of a past situation where vehicles were parked on both sides of the road and emergency vehicles could not gain access. Struve stated if the road is widened, it could be widened to 24 feet rather than 28 feet, or parking could be restricted to one side of the road. Struve stated Staff could explore those options and determine the costs for each of those options. Levang stated the lots on West Lafayette are fairly substantial with a number of the homes having longer driveways and that parking on one side would likely be adequate. Levang stated she would like to see a feasibility study done to give the Council a better idea of the costs. McMillan stated she is fine with updating the Pavement Management Plan and going forward with the work on Rest Point Road and Rest Point Circle. McMillan indicated she would like to see a feasibility study performed on West Lafayette. Levang and Bremer indicated they are in agreement with Mayor McMillan. Struve stated in his view it would be adequate to complete the feasibility study on West Lafayette along with a few plan sheets. McMillan asked if the Council should approve what is being proposed by Bolton and Menk tonight. Struve stated what Bolton and Menk is proposing is putting together the plans and specifications and that a feasibility study with a few plan sheets should be enough information to determine what direction the City Council would like to go. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 18 of 30   (12. 2014 STREET IMPROVEMENT PROJECTS, Continued) Levang moved, Bremer seconded, to accept the proposal from Bolton and Menk for the Rest Point Road and Rest Point Circle design phase services, to accept Bolton and Menk’s proposal for West Lafayette Road design phase services and feasibility study, and to accept the proposal from Bolton and Menk for the Pavement Management Plan Update. McMillan asked if the City Council wants to go forward with the design phase services on West Lafayette Road or just the feasibility study. Struve stated the motion should be for a feasibility study to be completed on West Lafayette Road and that it is likely approximately 80 percent of the plans would be prepared in conjunction with that. David Martini, Consulting Engineer, stated he would propose that Bolton and Menk conduct some geotechnical work to get an idea of the underlying soils and then work with the Public Works Director to put together a general scope of the project. Martini stated it would basically be a letter of recommendation to the City with some cost estimates. The City Council could then determine, based on that information, what the next step should be. Once there is an agreement on the scope of work, work would begin on the plans and specifications. Dennis Walsh, 1354 Rest Point Circle, stated he read the information on the general reclamation part of the project but would also like to talk about the plans and specifications and overall approach to the project. Walsh stated it is unlikely the City will redo Rest Point Circle once this work is done for another 15 to 20 years and that it is important for the City Council to be aware of some right-of-way issues that exist, some non-conforming use issues that exist inside the roadway, and the fact that these roads are one lane roads. Walsh stated the non-conforming use is a square curb that is located in the roadway that does not meet any city guidelines, engineering guidelines, or state guidelines. Walsh stated he was glad the City Administrator brought up the point about setting precedents because when precedents are set without public input, those can become an issue at some point in the future. Walsh stated there are also snow issues which create other problems. Walsh stated in his view this is a leadership issue in which the Mayor will either see it as important to take care or a non-leadership issue where the Mayor does not decide to take any action. McMillan noted a reclaim is not the same as a reconstruct and that the City Council will be looking at curb issues and other items as part of this process. McMillan stated the City Council will be relying on the Consulting City Engineer and the Public Works Director to review those items first and then present their findings to the Council. Walsh stated the City Council provides direction to the City engineers and that if the Council chooses, they can provide specific direction to the engineers to ensure that these issues are addressed. Walsh stated this is a one-lane road and that this is the City’s one opportunity to fix the encroachment that should not be there. McMillan asked if Mr. Walsh is talking about widening the road. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 19 of 30   (12. 2014 STREET IMPROVEMENT PROJECTS, Continued) Walsh stated the City should bring the road width to what it is supposed to be and that the encroachment goes into the roadway for approximately 40 yards. McMillan stated a curb in the right-of-way and widening the road are two different issues and that she is somewhat confused by what Mr. Walsh is saying. Walsh stated the curb was put into the roadway and that the Mayor is aware of what he is talking about. Struve indicated Staff will be looking at all options for the roadway, including the curb, and that that information will be brought back before the City Council prior to the plans and specifications being approved. Struve stated there will also likely be a neighborhood meeting to discuss design issues prior to any plans and specifications being brought back to the City Council. Struve stated Staff will also be notifying all the residents on the roadway when this item comes back before the Council. Walsh commented that he hopes the City provides more notice of that meeting than what was provided for this meeting. Walsh stated he received notice on Friday about tonight’s meeting and that he would appreciate more notice. Walsh stated he did inform his neighbors about the meeting but that they were unable to attend. Walsh stated he is speaking for a number of his neighbors. VOTE ON MOTION: Ayes 3, Nays 0. PUBLIC WORKS DIRECTOR/CITY ENGINEER’S REPORT, CONTINUED Struve stated towards the end of April and the beginning May the Public Works Department will be flushing the City’s fire hydrants. Information was e-mailed out to the residents as well as posted on the City’s website detailing the sequencing order of the hydro flushing. Struve reported the painting of the water tower is progressing and that the temporary pole is now in place. The contractor will be removing all of the antennas off of the water tower and on to the temporary tower in the near future. Equipment is scheduled to be delivered to the site in approximately two weeks, with the work starting shortly thereafter depending on the weather. Struve stated the city crews are also in the process of patching the potholes throughout the City, and that if any resident notices a pothole that has been missed, they can contact him directly. Levang asked if there are fewer potholes this year than normal and whether the streets sustained more damage or less damage than usual. Struve indicated this spring has not been good on the roads and that there is still frost in the ground. Struve stated as a result of the cold weather, the roads have sustained more damage than usual. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 20 of 30   MAYOR/COUNCIL REPORT McMillan noted the City will be celebrating its 125th anniversary and that this item is on the agenda for the next Council work session. McMillan stated the medical marijuana forum was very informative but occurred during the City’s last snow storm which resulted in a smaller turnout. McMillan stated that will probably be the last forum prior to the fall, and that she would welcome any input by the residents on possible topics for future forums. McMillan stated in her view the forums are good for the community and that it is nice to be able to utilize some of the local experts. McMillan stated she would like to thank Staff for their fine work on posting information to the City’s website and the work they have done in live streaming the City Council meetings. CITY ADMINISTRATOR’S REPORT *16. DISPOSAL OF POLICE DEPARTMENT SQUAD CARS Levang moved, Bremer seconded, to approve the liquidation of a 2008 Ford Crown Victoria, VIN #2FAFP71V08X126113; a 2009 Ford Crown Victoria VIN #2FAHP71V19X141486; and a 2008 Ford Crown Victoria, VIN #AFAFP71V58X151623. All vehicles will be auctioned through the Minneapolis Auto Auction or other similar public auction. VOTE: Ayes 3, Nays 0. *17. REQUEST TO HIRE PART-TIME POLICE OFFICER – RESOLUTION NO. 6384 Levang moved, Bremer seconded, to adopt RESOLUTION NO. 6384, a resolution to authorize the hiring of Joshua Raze as a part-time police officer at a pay rate of $24.07 per hour with a start date of April 21, 2014. VOTE: Ayes 3, Nays 0. 18. POLICE GARAGE AND ADDITION PROJECT, 2750 KELLEY PARKWAY (a) Site Plan Review and Variance (Public Hearing) Steve Kleineman, SKD Architects, stated he would like to talk about the process the City went through to get to the plan that was eventually developed. In the spring of 2013, SKD Architects was asked to evaluate the Orono Police Department’s space needs as well as some maintenance issues associated with the City offices and provide a scope of work for what the project would entail. Kleineman noted SKD Architects first sat down with Staff and the Police Chief to develop a program regarding their space needs. The first issue evaluated was the break room space and the lack of a large meeting space that would provide some privacy. The building was originally in approximately 1992 or 1993 and no updates have occurred since that time. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 21 of 30   (18. POLICE GARAGE AND ADDITION PROJECT, 2750 KELLEY PARKWAY, Continued) (a) Site Plan Review and Variance (Public Hearing), Continued Kleineman pointed out the exit corridor on the overhead. Kleineman stated the Police Department is in need of additional storage space. The locker room is used by both the Staff and the police officers and consists of small lockers that are not big enough to adequately house their uniforms and equipment. Kleineman stated the bathroom areas should be separated from the locker room area. In addition, the garage currently only has three stalls, with one stall being used to store evidence. Kleineman stated currently the police officers are required to remove all their equipment from the squad cars every shift because the equipment cannot be left outside exposed to the weather. Kleineman stated they looked at expanding the garage area to accommodate 14 to 16 squad cars. Kleineman indicated the front entryway to the city hall building consists of a large counter that provides little privacy and allows anyone who comes into the building to see Staff’s desks and equipment. Kleineman stated following their review of the available space, they identified various areas that could be improved upon. Other site issues reviewed involved possibly eliminating one of the entrances off of Old Crystal Bay Road, developing a better entrance off of Kelley Parkway, and improving the parking lot. Working sessions were held with the City Council members at various times and a concept plan was developed as well as a possible budget for the project. Kraus-Anderson was then brought on to the project and cost estimates were developed. Kleineman stated during this process, they went through a number of different renditions looking at different possibilities. Kleineman stated there were also issues associated with theft and vandalism that needed to be addressed. Kleineman noted the existing buildings are brick and concrete with metal roofs and that they wanted to match the existing facilities as close as possible, with a number of materials being looked at. Kleineman stated during this review, a brick façade on the building was eliminated, the overall size of the proposed garage was reduced, and the existing floor space in the police department was made more efficient. Kleineman stated the overhead depicts the existing layout of the site. Kleineman stated it was important to provide a secured area for the squad cars and an emergency operating center that could also double as a large meeting space. Under the current plan, a multi-purpose meeting room was added, the bathrooms were expanded, and additional lockers were added. On the south end of the parking lot, a separate entrance off of Kelley Parkway into the public parking lot was added, with the middle access being eliminated. A private secure area is proposed to the east that would provide the Police Department with storage and parking. Kleineman displayed the proposed plan of the site. Kleineman noted the parking area for the Police Department includes space for 14 vehicles and approximately six feet was added to expand the lockers and meeting area. In addition, the space was reorganized to provide more efficiency. Kleineman stated a small mezzanine area was also added into the roofline for storage and mechanical equipment. Kleineman displayed a picture of the exterior of the buildings. Kleineman indicated the new areas match the existing façade as closely as possible without being brick. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 22 of 30   (18. POLICE GARAGE AND ADDITION PROJECT, 2750 KELLEY PARKWAY, Continued) (a) Site Plan Review and Variance (Public Hearing), Continued Kleineman stated the entryway into the City Hall has been changed to provide one small central counter with three work areas that are separated with dividers to provide more privacy. Visitors to the City Hall building will also no longer be able to look into the area occupied by Staff. Kleineman noted the cost associated with the site work is a significant number due to the soft soil conditions and the deteriorating condition of the parking lot. The other factor that is important to point out is that the project also includes the installation of new mechanical equipment that will help improve the overall temperature control in the building. Bremer asked whether there would be any benefit to phasing the project or whether the City would experience more cost savings by completing the entire project at one time. Kleineman stated in order to do the floor plan for the Police Department in the most efficient manner, it would be best to do the project all at one time. Kleineman stated the soil conditions need to be improved and phasing of the project would make it difficult to store the soil and would require the soil to be dug up and moved. Mark Kotton, Kraus-Anderson, stated given the current site layout, the proposed garage expansion is over a portion of the existing parking lot and approximately half of the parking lot would be eliminated during the construction. Cotton stated in order to make the site flow properly during construction, phasing of the project would be difficult. Cotton stated the soils are very challenging on this site based on the geotechnical information and that they would like to be able to utilize whatever they can. Cotton stated otherwise the soil would need to be hauled off the site, which would be very expensive. Cotton stated the overall duration of the project is approximately three months, and if it is completed in phases, it would extend out over six months. McMillan stated a number of good solutions have been arrived at. Levang stated she appreciated seeing the photographs of the interior police department building and that they help illustrate for the residents how chaotic the space really is. Levang noted the addition will be very minimal. Loftus suggested Planner Curtis present the wetland and land use information at this time. Curtis stated the garage addition comprises approximately 7,800 square feet of the proposed new structure that is depicted on the overhead. Although the City Hall campus is located in the RR-1B District, the project is non-residential in scope and requires a site plan review to add the addition to the building and improve the parking areas. The site plan approval also includes a wetland setback variance due to the existence of a small wetland extending as close as 20 feet to the proposed new parking lot on the southeast parking area. All other hardcover and structural improvements either meet the City’s 35-foot setback from the wetland or are pre-existing. Curtis noted the Planning Commission has not reviewed this application. Pursuant to City Code 78-122, the City Council is authorized to waive reference of the variance review to the Planning Commission for the public hearing. Curtis noted a unanimous vote is required in order to waive the Planning Commission’s review. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 23 of 30   (18. POLICE GARAGE AND ADDITION PROJECT, 2750 KELLEY PARKWAY, Continued) (a) Site Plan Review and Variance (Public Hearing), Continued Curtis stated City Code requires a 35-foot setback from the delineated edge of wetlands. There are existing portions of the City Hall building and parking lot that do encroach into that setback but they are allowed to remain as they exist as legal nonconformities. The current single access off of Kelley Parkway will be separated into a public access and a designated police access. The existing police access will move 50 feet to the east and the new access for the public will be located in line with the western access to the medical building across Kelley Parkway approximately 120 feet from Old Crystal Bay Road. Curtis stated the necessary reorientation of the police access point and the curve of the existing parking area serving the Police Department today serve as practical difficulties and makes it difficult to avoid encroaching into the 35-foot wetland setback on the southernmost point of the wetland. Curtis stated the City Council should consider a motion to waive the Planning Commission’s review of the application. The City Council should then open the public hearing, consider any comments from the public, and, if deemed appropriate, direct Staff to draft a resolution granting approval of the site plan and the wetland setback variance for adoption at the April 28 meeting. Levang moved, Bremer seconded, to waive Planning Commission review of Application No. 14- 3651, Steven Kleineman with SKD Architects, Inc., on behalf of the City of Orono, 2750 Kelley Parkway. VOTE: Ayes 3, Nays 0. Mayor McMillan opened the public hearing at 9:19 p.m. Dennis Walsh, 1354 Rest Point Circle, stated he realizes the City published a notice approximately a week ago and after seeing the notice he came to City Hall to review the plans but no plans were readily available. Walsh indicated the City Administrator found some old plans for him to look at and also gave him a tour of the facilities. Walsh stated he also met with the Police Chief and he provided an update on what is being proposed and the rationale behind the improvements. Walsh stated in his view the changes are a good improvement but that he is questioning why there has not been a public hearing prior to tonight. Walsh noted the City will be spending approximately $4 million on this project, which equates to approximately $5,000 per resident, and that he has gotten the impression that the City Council has to approve this application before the public gets to find out what is in it. Walsh stated he would like to see more transparency and input from the public before these large projects are approved. Walsh stated he is assuming there will be another public hearing on the finances and that he would like to hear what the finance director has to say about the funding of the project. McMillan asked if the City Council has any questions on the wetland setback variance. McMillan noted the City Council has not discussed possible rain gardens. McMillan asked if the City Council should be looking at any sort of mitigation on the site. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 24 of 30   (18. POLICE GARAGE AND ADDITION PROJECT, 2750 KELLEY PARKWAY, Continued) (a) Site Plan Review and Variance (Public Hearing), Continued Curtis stated at this point she would follow the lead of the engineer or the Watershed District. Curtis noted a piece of the parking lot on the north end will be removed, which is hardcover encroaching right up to the wetland. The parking lot will be relocated to provide for more functionality and to move the hardcover out of the wetland setback area. Struve stated in terms of mitigation, the City will be following Minnehaha Creek Watershed District rules regarding treatment of any additional hardcover. Struve stated he understands the plan does not show the stormwater plans but that he has seen a preliminary review of it. Struve stated there are some ponding areas that will likely be created. Struve stated the City will be meeting those requirements on the site. McMillan noted the site is fairly flat and has a high water table. McMillan commented it is difficult to divert water into any type of rain garden on this site. Struve stated there will be a series of different stormwater mitigation throughout the site and will not be simply one rain garden to treat everything. Struve stated it has yet to be determined whether a rain garden will be utilized. McMillan stated she knows the City Council has discussed a possible rain garden or other type of demonstration project. Struve stated Staff is evaluating different scenarios. If the City treats runoff above and beyond what is required, the Watershed District has some grants available that Staff will be exploring. McMillan stated the problem is the very saturated soils, which makes it difficult to direct stormwater away and towards treatment areas that have some sort of flow to them. McMillan commented it is more likely for the site to get flooded than having runoff leaving the site. Levang moved, Bremer seconded, Application No. 14-3651, Steven Kleineman and SKD Architects, Inc., on behalf of the City of Orono, 2750 Kelley Parkway, to direct Staff to draft an approval resolution for the site plan and the wetland setback variance. McMillan noted the resolution will be before the City Council in two weeks. VOTE: Ayes 3, Nays 0. (b) Supplemental Capital Improvement Plan and Confirm Intent to Issue Bonds - (Public Hearing) – RESOLUTION NO. 6385 Bruce Kimmel, Ehlers & Associates, stated he thought it would be helpful to review a few key points from the presale report that was included in the Council packet. The report is an overview of the overall bond issue that is being proposed for the police/city hall project, the water improvements, and the refinancing of the City’s existing debt that was used to purchase the Big Island Park project. Kimmel noted a public hearing is required for the capital improvement plan and then the City Council can take action on the three resolutions. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 25 of 30   (18. POLICE GARAGE AND ADDITION PROJECT, 2750 KELLEY PARKWAY, Continued) (b) Supplemental Capital Improvement Plan and Confirm Intent to Issue Bonds - (Public Hearing) – RESOLUTION NO. 6385, Continued Kimmel stated the overall bond issue for all three purposes is approximately $5,388,000. The last four maturities on the existing bond issue have interest rates ranging from 3.75 to 4 percent. It is projected that the refunding portion of the new bond issue will have interest rates ranging from .5 to 1.05 percent. The significant drop in interest rates will save the City an approximate $46,000 over the remaining four years of the bond issue. Kimmel stated they are not proposing to change the term of the bonds in any way for the refunding and that it is basically swapping new interest rates for the old interest rates. Kimmel pointed out the police portion and the water portion of the bonds is for a 15-year term and will be paid in the years 2015 through 2029. The bonds maturing on and after February 1, 2014, will be subject to call at the City’s option with no prepayment penalty. Those six maturities total $2.15 million of the proposed bond issue, which is almost 40 percent. Kimmel stated the City will have some significant flexibility in future years to either refinance if interest rates permit or to pay off the bonds. Kimmel stated as it relates to the method of sale, he would recommend a competitive bid process, which is what the City has utilized for previous bond issues. Kimmel stated with the City’s AAA credit rating, they anticipate strong interest in the bonds. A discount bid will be allowed, which is like allowing points on a mortgage and is basically an allowance for an underwriter’s commission. Kimmel stated they actually expect a premium bid and on the date of sale the City will likely see coupons on the bonds that are higher than the actual yields, which means there should be some extra proceeds that can be used to reduce the amount of the bond issue. Kimmel stated instead of having a bond issue for $5.38 million, they expect it to be closer to $5 million. Kimmel stated as part of the bond sale, Ehlers is obligated to list any and all risk factors. One such risk factor is if the City did not have sufficient water revenues to pay the water portion of the debt, the City may have to raise the property tax levy or generate other revenues to pay that debt. Kimmel stated he does not envision that being a problem. Following the action by the City Council tonight, Kimmel stated he would propose to work with the City’s Finance Director and City Administrator on moving forward with the bond issue, organizing a rating agency conference the week of May 19, take bids, and then award the bonds on May 27. The proceeds would then be to the City by the end of June. Kimmel noted they have also included a number of bond schedules that show the use of the funds, the total of the bonds, and the estimated coupons, which are related more to the yields that are being anticipated. The City’s all inclusive interest costs will be 2.75 percent for this 15-year bond issue. Kimmel stated the bond issue is also broken out for the CIP portion, which includes the police project, the water portion, and the refunding. Kimmel noted the refunding is four years in duration. McMillan asked as it relates to the water funds, whether the City has a time period in which the projects need to be completed. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 26 of 30   (18. POLICE GARAGE AND ADDITION PROJECT, 2750 KELLEY PARKWAY, Continued) (b) Supplemental Capital Improvement Plan and Confirm Intent to Issue Bonds - (Public Hearing) – RESOLUTION NO. 6385, Continued Kimmel stated there are some arbitrage date requirements that specify the bond proceeds should be used within a three-year period. Kimmel stated that is basically a requirement to avoid arbitrage restrictions, but in today’s market, since it is difficult to invest bond proceeds at yields above the bond yield, it becomes more of an academic issue. Ron Olson, Finance Director, stated one of the purposes of tonight’s hearing is to establish the need for the improvements to the police department, which was covered in depth earlier. The other purpose is to determine whether bonding should be used to finance this project. Olson stated if the City is interested in pursuing this project, bonding is the only way the City can finance it. Olson stated the graph on the overhead depicts the bond repayment schedule and is also available on the City’s website. Olson stated one of the reasons Staff is comfortable with the bond sale is when the Mound police service contract is included the City’s revenue, the City receives more in revenue than what it costs to provide the service. Olson stated the second graph demonstrates the amount of revenue the City expects to receive from Mound going into the future. Olson stated the amount received in 2013 was $330,000, which has already been transferred out of the General Fund for this particular project. In 2014, there is an additional $160,000 budgeted to be transferred for use in this project. Olson stated after two years of the Mound contract, the City has $490,000 of funds available for the project. Olson stated in 2015, Staff is estimating receiving $125,000, and from 2016 and on, that number is estimated at $100,000. Olson stated the numbers are conservative and that he does not anticipate it dropping below $100,000. Based on the estimated figures, the City will have $1.315 million in money received from the service contract to help fund this project. Olson stated the next graph depicts the actual interest and principal payments that will be made by the City on the bond issue. Olson stated when the City sets the tax levy for debt service on bonds, state law requires the City to levy for 105 percent of the debt service, which is designed to offset tax delinquencies. Olson stated in Orono’s case, they collect between 98 and 99 percent, and when delinquent tax payments are included, the City is over 100 percent. Olson stated the fourth column depicts the Mound service contract, with those monies being applied to the debt service payments to help keep the debt levy flat. Olson noted it was important to the Council that the debt levy will not spike as a result of this project. Olson noted the majority of the revenues received from the service contract will be applied toward the bond debt in the later years. Olson stated $1.315 million is anticipated being used from those service contract revenues. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 27 of 30   (18. POLICE GARAGE AND ADDITION PROJECT, 2750 KELLEY PARKWAY, Continued) (b) Supplemental Capital Improvement Plan and Confirm Intent to Issue Bonds - (Public Hearing) – RESOLUTION NO. 6385, Continued Olson stated in the 2008 general obligation street reconstruction bonds, those bonds were sold for $4.5 million. As part of that project, some water and sewer work was completed. In 2013, the tax levy was $178,150, but the City also had contributions totaling $155,000 from the water and sewer funds. The total debt service that was paid for on those bonds amounted to $333,000, with the tax levy only being increased by $178,000. Olson stated that is the exact same scenario that is being discussed here, with the general obligation bonds being backed by taxes but with the City having a fairly stable alternate funding source that is being taken advantage of. Olson stated the next slide shows the City’s annual debt levy that is anticipated with the new bond issue. In 2014 the debt levy will be $755,500, fairly flat in 2015 and 2016, and then increase to $760,000 in 2017 all the way through 2022 where it then starts dropping down again. Olson stated the total debt service levy is slightly higher with the project. McMillan opened the public hearing at 9:41 p.m. Dennis Walsh, 1354 Rest Point Circle, stated he would reiterate that this is a fast public process with little public input. Walsh stated what strikes him after speaking with the City Administrator and the Police Chief and then hearing the Finance Director’s comments is that there are a number of assumptions being made on the revenue to be generated from the police service contract, especially in the latter years. Walsh noted the police station project is estimated to cost $3 million but that no one from the public has seen the math on how that breaks out and that he would be interested in seeing that information. Walsh noted the $330,000 that was used upfront to pay for this project was also used to reduce the levy, which means that it is being counted twice. Walsh stated the $330,000 artificially reduces the levy and is somewhat disingenuous. McMillan noted the $330,000 is in a CIP fund currently and has not been used. Walsh asked why that $330,000 is not being used to pay down the debt. McMillan indicated it will be used to pay for the debt service on the police garage. Walsh stated he was told that it was already used to reduce the levy. Loftus indicated it will be used in 2014 and 2015 to keep the levy level. McMillan stated every year that money is made on the police contract it will go into that fund. Walsh noted that is an assumption that is being made. Walsh asked why the police bond is not being separated out and paid for early if the department is making money off of the service contract. McMillan stated 15 years is a common term for bonds and that the City is also attempting to capitalize on the low interest environment. In addition, the City’s water fund is being tied into the project. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 28 of 30   (18. POLICE GARAGE AND ADDITION PROJECT, 2750 KELLEY PARKWAY, Continued) (b) Supplemental Capital Improvement Plan and Confirm Intent to Issue Bonds - (Public Hearing) – RESOLUTION NO. 6385, Continued Walsh noted the contract remains for eight years and that bonds are extending it out to 15 years. Walsh stated it will be more difficult in the later years to levy additional debt. Walsh stated the City is spreading the debt out for a longer period to make it look better in the early years. McMillan stated in 2023, the 2008 street reconstruction bonds will be finished, which will amount to approximately $480,000. McMillan stated the City has to make periodic investments in its infrastructure. Walsh stated he was attempting to be more transparent with where the dollars are going and not grouping it in with something else. Walsh stated the plan is a good plan, but that he wants to be clear that the City should not champion it as a 10-year service contract when the bonds are being spread out over 15 years. Bremer stated the contract could be renewed. McMillan stated the City has to make some calculated assumptions. Walsh stated his personal goal is to lower debt rather than extend it simply to make the upfront years look better. Walsh stated if the City requires more money for the project, they should look at doing something different rather than making it look artificially lower in the early years. McMillan closed the public hearing at 9:46 p.m. Kimmel stated the City Council should have the capital improvement plan in their packet and that the Council should consider the supplemental capital improvement plan, followed by a public hearing for the tax abatement. Levang moved, Bremer seconded, to adopt RESOLUTION NO. 6385, a Resolution Calling Public Hearing on the Intention to Issue General Obligation Capital Improvement Plan Bonds and the Proposal to Adopt a Supplemental Capital Improvement Plan for 2014 through 2019 under Minnesota Statutes, Section 475.521. VOTE: Ayes 3, Nays 0. (c) Property Tax Abatements Relating to Big Island Financing (Public Hearing) – RESOLUTION NO. 6386 Nick Anhut, Ehlers & Associates, stated there is a requirement for the City Council to open the public hearing to allow for public input on the issue of authorizing property tax abatement bonds for Big Island. The purpose of the bonds is to refinance the HRA’s existing 2005 public project revenue bonds that are outstanding for the next three to four years. Tax abatement Chapter 469 authorizes municipalities to issue a general obligation pledge for public projects, which requires that the City hold a public hearing. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 29 of 30   (18. POLICE GARAGE AND ADDITION PROJECT, 2750 KELLEY PARKWAY, Continued) (c) Property Tax Abatements Relating to Big Island Financing (Public Hearing) – RESOLUTION NO. 6386, Continued Anhut indicated the individual parcels identified are to be abated. Anhut stated abatement in this instance is a bit of a misnomer since the taxes are not actually being reduced but the City is rather allocating those existing resources towards a specific public project, which in this case is the refinancing of the acquisition of the fire hall from the HRA. In doing so, the City will be able to refinance and swap interest rates as was discussed previously. Included within the resolution is a list of physical properties that are affected. McMillan asked if there is a difference between tax abatement and general refunding. Anhut stated the existing bonds are a different security and are an annual appropriation debt, which makes them subject to lease payments to the HRA. The HRA takes those lease payments to make the bond payments. Anhut stated with the abatement, the City is will be accessing its general obligation pledge and its AAA rating to secure a lower interest rate. Kimmel stated the only reason this was not done in 2005 is that this tool was not available then. Mayor McMillan opened the public hearing at 9:50 p.m. There were no public comments regarding this item. Mayor McMillan closed the public hearing at 9:50 p.m. Levang moved, Bremer seconded, to adopt RESOLUTION NO. 6386, a Resolution Authorizing Property Tax Abatement for Big Island Acquisition Financing. VOTE: Ayes 3, Nays 0. (d) Sale of Capital Improvement, Water, and Big Island Bonds – RESOLUTION NO. 6387 Kimmel stated this resolution authorizes Ehler’s & Associates to move forward with the sale of the bonds. Levang moved, Bremer seconded, to adopt RESOLUTION NO. 6387, a Resolution Providing for the sale of $3,385,000 in Capital Improvement Bonds; $1,305,000 in Water Bonds; and $690,000 in Tax Abatement Bonds for Big Island. VOTE: Ayes 3, Nays 0. CITY ADMINISTRATOR’S REPORT, CONTINUED Loftus stated last week the City opened their leaf and grass disposal site at the Public Works Department. The site will be available Monday through Saturday. Loftus stated Hennepin County has issued a burning ban for the next four to six weeks. Camp fires will be allowed but the City will not be issuing any burn permits. Loftus stated a 3’ x 3’ recreational fire is allowed. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, April 14, 2014 7:00 o’clock p.m. _____________________________________________________________________________________       Page 30 of 30   (CITY ADMINISTRATOR’S REPORT, CONTINUED) Loftus noted market valuation notices were sent to property owners back in March, and if a property owner has a question regarding their valuation, they have an opportunity this Wednesday from 4:00 to 6:30 to meet with one of the Hennepin County assessors. CITY ATTORNEY’S REPORT Mattick stated he had nothing to report. *19. CLAIMS/BILLS Levang moved, Bremer seconded, to approve payment of the All Funds Account. VOTE: Ayes 3, Nays 0. ADJOURNMENT Bremer moved, Levang seconded, to adjourn the Orono City Council meeting at 9:55 p.m. VOTE: Ayes 3, Nays 0. ATTEST: ________________________________________ _______________________________________ Rachel Dodge, City Clerk Lili Tod McMillan, Mayor