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HomeMy WebLinkAbout12-08-2014 Council MinutesMINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 1 of 26    ROLL CALL The Orono City Council met on the above-mentioned date with the following members present: Mayor Lili Tod McMillan, Council Members Cynthia Bremer, James Cornick, Jr., Lizz Levang, and Aaron Printup. Representing Staff were City Administrator Jessica Loftus, Finance Director Ron Olson, Community Development Director Andrew Mack, Senior Planner Michael Gaffron, City Engineer/Public Works Director Adam Edwards, City Attorney Soren Mattick, and Recorder Jackie Young. Mayor McMillan called the meeting to order to 7:00 p.m. OATH OF OFFICE 1. JIM CORNICK, JR. City Administrator Loftus administered the oath of office to newly elected City Council Member James Cornick, Jr. PLEDGE OF ALLEGIANCE The City Council recited the Pledge of Allegiance. APPROVAL OF AGENDA 2. CONSENT AGENDA Item Nos. 9, 13, 15, 16, 17, 19, 21, 24, and 25 were added to the Consent Agenda. Item No. 14 was removed from the agenda. Bremer moved, Levang seconded, to approve the Consent Agenda as amended. VOTE: Ayes 5, Nays 0. APPROVAL OF MINUTES *3. CITY COUNCIL WORK SESSION OF NOVEMBER 24, 2014 Bremer moved, Levang seconded, to approve the minutes of the Orono City Council Work Session of November 24, 2014, as submitted. VOTE: Ayes 5, Nays 0. *4. REGULAR CITY COUNCIL MEETING OF NOVEMBER 24, 2014 Bremer moved, Levang seconded, to approve the minutes of the Orono City Council meeting of November 24, 2014, as submitted. VOTE: Ayes 5, Nays 0. PRESENTATION – 6:30 P.M. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 2 of 26    5. 2015 BUDGET HEARING Finance Director Ron Olson stated the purpose of the public hearing tonight is to discuss the 2015 budget and tax levy. Olson noted tonight’s meeting is not to discuss property values, which will be done in the spring at the truth-in-taxation meeting. Olson stated the valuation of someone’s home is set by the Hennepin County Assessor and is usually around 95 percent of what the market value is. In addition, a number of tax rates have been set by the Minnesota Legislature. Based on the City’s annual property valuation, the County Assessor will provide an annual calculation of the City’s tax capacity. Olson stated the City’s taxable market value is $2,431,508,871, with a tax capacity of $27,217,909. Compared to last year, the City’s taxable market value has increased by 3.7 percent and the tax capacity by 0.88 percent. As a result of the City’s overall increased tax capacity, the tax capacity rate will decrease from 17.81 percent in 2014 to 17.38 percent in 2015. Assuming a two percent increase in someone’s property value, the City’s share of the property tax bill would be a decrease of $5.31 on a home previously valued at $250,000, an increase in tax of 0.48 on a $500,000 home, and a decrease of $4.35 on a $1,000,000 home. Olson stated the Orono City Council has tended to be very conservative over the years and as a result has had a lower tax levy than most of the cities in Minnesota. Olson noted Orono is approximately half of what the Hennepin County average is. Olson indicated on the Council handout provided that the blue on the chart depicts the City’s tax capacity, which is one of the factors used in calculating someone’s tax rate. Olson noted the housing market is starting to move up again and that house valuations in the Twin Cities for last year increased by 3.4 percent. The green line depicts the City’s tax rate. Since 2010, Orono’s tax increase has been significantly below the state’s average and Orono’s taxes have increased by 8.02 percent less than the state average. Olson stated the City attempts to keep the levy as small as possible, and that if Orono had increased at the same rate as other cities in Minnesota, they would be levying almost $400,000 more every year. Olson noted the majority of the tax levy goes into the General Fund, which is the City’s operating budget, and accounts for 52.9 percent of the revenue budget. The other portion received from property taxes goes towards the City’s debt service on existing loans or general obligation bonds and other expenses of the City. The City’s current debt service is $755,500. The total tax levy required to fund the 2015 budget is $4,772,000, which is an increase of $70,240 or 1.5 percent over the 2014 levy. Olson noted the total tax levy required to fund the 2015 budget is $4,772,000, which is an increase of $70,240 or 1.5 percent over the 2014 levy. Olson noted this is the first increase in the tax levy since 2011 and that during the same time period, inflation has increased by 8.34 percent. Olson stated in the City’s 2015 budget, the total general fund expenditures are increasing by approximately $246,000 or 3.3 percent over the 2014 budget. The majority of the increase is for the police department and reflects a 2.5 percent increase in police officer wages, which the contract calls for. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 3 of 26    (5. 2015 BUDGET HEARING, Continued) The next big increase is $73,000 in building and zoning, which had to do with the addition of a new employee in that department. Olson stated the City Council determined that the City had a need for a Community Development Director, which was then added to the Building and Zoning Department. The next increase is for street maintenance of 19 percent and is to allow the City to start doing preventative maintenance on the roads to keep them in good shape. The other big increase is in the Parks Department, which is being increased by $39,879 to allow for additional maintenance to be performed. Olson stated the City pays for these expenditures primarily through property taxes, which is increasing by $70,000 or 1.8 percent. However, the City’s budget is going up $246,000. Olson stated 28 percent of the revenue increase is due to the increase in property taxes. The biggest increase in revenue is being projected for building permits, which are estimated to go up $81,500. Olson stated as the housing market dropped, the City cut back on what it budgeted for permits, and with the increase in building activity, the City felt confident increasing the amount being budgeted. Another anticipated increase in revenue is general service charges, which is projected at $35,800 or an 11 percent increase, and are pass-through charges. Total anticipated public safety charges are increasing by $66,000, which encompasses the contract services the Orono Police Department provides to nearby cities. The revenue from those contracts is increasing by 3 percent even though the police budget did not increase by three percent. Olson noted the City Council and Staff has been working on the 2015 budget since June and that tonight is another chance for the public to speak on the budget. Mayor McMillan opened the public hearing at 6:55 p.m. There were no public comments. Mayor McMillan closed the public hearing at 6:55 p.m. Levang noted the City has been working on the budget for the past six months and that the final budget has been honed down to the essential areas that are in need of attention. Levang stated she feels very comfortable with the budget. McMillan noted the 2015 CIP should include the reclaim of Stubbs Bay and the eastern section of Watertown Road, with the western section of Watertown Road being planned for improvements in 2016. McMillan stated the City Council can also amend that later. Engineer & Public Works Director Adam Edwards stated the spreadsheets included in the CIP were updated a couple of weeks ago and that he has included Stubbs Bay Road, Watertown Road - over two years, and Baldur Park. McMillan stated the Council can also work on that next year as they begin to discuss road projects. Printup asked if the recycling is a year-by-year contract. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 4 of 26    (5. 2015 BUDGET HEARING, Continued) Olson stated to his recollection it is a four-year contract and that Orono is in the third year of the contract. The rate of inflation this year is 2.5 but this year’s increase was 1.9 percent. Cornick asked if the parks budget includes Big Island. Olson indicated it does. 5a. ADOPT FINAL 2014 LEVY COLLECTIBLE IN 2015 – RESOLUTION NO. 6466 Levang moved, Cornick seconded, to adopt RESOLUTION NO. 6466, a Resolution Adopting the Final 2014 Tax Levy Collectible in 2015. Printup stated he is not comfortable increasing the levy since there are other areas within the General Fund and budget that could be reduced further. Printup indicated he is in favor of the increase in the park and street maintenance budgets. VOTE: Ayes 4, Nays 1. Printup Opposed. 5b. ADOPT 2015 GENERAL FUND BUDGET – RESOLUTION NO. 6467 Levang moved, Bremer seconded, to adopt RESOLUTION NO. 6467, a Resolution to Adopt the Final 2015 General Fund Budget. VOTE: Ayes 5, Nays 0. 5c. ADOPT THE 2015 SPECIAL REVENUE FUNDS BUDGETS – RESOLUTION NO. 6468 Levang moved, Cornick seconded, to adopt RESOLUTION NO. 6468, a Resolution to Adopt the 2015 Special Revenue Fund Budgets. VOTE: Ayes 5, Nays 0. 5d. ADOPT THE 2015 ENTERPRISE FUNDS BUDGETS – RESOLUTION NO. 6469 Levang moved, Cornick seconded, to adopt RESOLUTION NO. 6469, a Resolution to Adopt the 2015 Enterprise Fund Budgets. VOTE: Ayes 5, Nays 0. 5e. ADOPT THE 2015 CAPITAL IMPROVEMENT PLAN (CIP) Levang moved, Cornick seconded, to adopt the 2015 Capital Improvement Plan (CIP). VOTE: Ayes 5, Nays 0. RECOGNITION 6. YEARS OF SERVICE AWARDS 6a. SCOTT BORIS, 20 YEARS – RESOLUTION NO. 6470 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 5 of 26    (6. YEARS OF SERVICE AWARDS, Continued) Mayor McMillan presented a resolution of appreciation to Scott Boris for his 20 years of dedicated service. Levang moved, Bremer seconded, to adopt RESOLUTION NO. 6470, a Resolution of Appreciation to Employee Scott Boris for his 20 Years of Dedicated Service. VOTE: Ayes 5, Nays 0. 6b. LYLE OMAN, 30 YEARS – RESOLUTION NO. 6471 Levang moved, Bremer seconded, to adopt RESOLUTION NO. 6471, a Resolution of Appreciation to Employee Lyle Oman for his Thirty Years of Dedicated Service. VOTE: Ayes 5, Nays 0. 6c. RON STEFFENHAGEN, 40 YEARS – RESOLUTION NO. 6472 Mayor McMillan presented Ron Steffenhagen with a resolution of appreciation for his 40 years of service. Levang moved, Bremer seconded, to adopt RESOLUTION NO. 6472, a Resolution of Appreciation to Employee Ron Steffenhagen for his Forty Years of Dedicated Service. VOTE: Ayes 5, Nays 0. 7. SPECIAL THANK YOU TO CITY COUNCIL MEMBER CYNTHIA BREMER – RESOLUTION NO. 6473 Mayor McMillan presented a plaque and certificate of appreciation to Council Member Cynthia Bremer for her four years of service on the Planning Commission and eight years on the City Council. Bremer thanked Mayor McMillan, the Council Members, and City Staff for their support through the years. Bremer welcomed Jim Cornick and Dennis Walsh to the City Council and encourage everyone to continue to work together as a team. Bremer also thanked the Orono Police Department for their hard work in making Orono a great place to live. Levang moved, Cornick seconded, to adopt RESOLUTION NO. 6473, a Resolution of Appreciation to Cynthia Bremer for Distinguished Service as a Member of the Orono City Council. VOTE: Ayes 4, Nays 0, Bremer Abstained. 8. CERTIFICATES OF APPRECIATION FOR BIG ISLAND CLEANUP McMillan noted there was a major cleanup that occurred recently on and around Big Island. McMillan thanked the Lake Minnetonka Association, the Lake Minnetonka Power Squadron, and Gabriel Jabbour for all their hard work. McMillan noted they have performed this duty every year for the past several years. Levang stated the City is very lucky to have these organizations supporting the community and that without these individuals, the work would likely not have gotten done. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 6 of 26    PLANNING COMMISSION COMMENTS – KEVIN LANDGRAVER, REPRESENTATIVE Planning Commission Representative Kevin Landgraver stated he had nothing to report but would be available for questions. Landgraver stated he would like to thank Cynthia Bremer for her years of service. PUBLIC COMMENTS None PLANNING DEPARTMENT REPORT *9. COUNCIL LIAISON CALENDAR FOR PLANNING COMMMISSION Bremer moved, Levang seconded, to approve the schedule for Council attendance at Planning Commission meetings in 2015. VOTE: Ayes 5, Nays 0. 10. #14-3691 SOURCE LAND CAPITAL, LAKEVIEW PROPERTY, 405 NORTH ARM DRIVE, PRELIMINARY PLAT WITH PRD OVERLAY – RESOLUTION NO. 6474 Planning Consultant from Northwest Associated Consultants, Steve Grittman noted the City Council reviewed this item at their November 24 meeting. One of the items discussed at that time was a request by the applicant that the City consider a reducing of the storm water and drainage trunk fee. Grittman indicated the applicant has made some proposals as to how to calculate that fee and those proposals are included in the Council’s packet. Grittman stated a second change from the previous plan that went before the City Council on November 24 relates to onsite septic systems. Staff met with the applicant and their engineers to tweak their plan to ensure that the septic systems would be in compliance. The City Engineers feel those sites will meet regulations. The tested sites located north of Ms. Hager’s property comply with all requirements for soil types, setbacks, slopes, and other regulations. An additional site located further from her home is likely but is subject to additional testing. Staff has met with the property owner and reviewed that information. Staff believes that the development plans have met the requirements for preliminary plat approval. Grittman indicated the Resolution before the City Council has been updated and that Staff is recommending approval of the resolution for preliminary plat for the Lakeview Golf Course. Grittman noted this application will eventually lead to final plat approval and a development agreement. Printup asked how the meeting with the property owner went a couple of days ago. Community Development Director Andrew Mack stated Staff reached out to the landowner and reviewed the site following a prior meeting regarding septic sites with Staff, developers, septic designer, and the City’s consulting engineer. Based on that review and those discussions, revisions were made to the septic site. The revisions have been reviewed by the City Engineer and septic inspector. Staff has looked at the alternative site that the applicant’s designer suggested would be an appropriate primary site. That site would be positioned closer to the residence for that particular lot and would be located further away from Ms. Hager’s property. Mack stated once the perc tests are completed next spring, Staff will be able to MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 7 of 26    (10. #14-3691 SOURCE LAND CAPITAL, LAKEVIEW PROPERTY, 405 NORTH ARM DRIVE, PRELIMINARY PLAT WITH PRD OVERLAY – RESOLUTION NO. 6474, Continued) make a final determination on a change in location. At this time the other site will be reserved for an alternative site. McMillan noted the trails are to be privately maintained and asked whether that includes the park as well. Senior Planner Mike Gaffron stated if the outlot becomes a park, it will also be owned by the homeowner’s association. The trails within individual lots and the outlot will be privately owned and maintained. Mattick stated the homeowner’s association intends for those trails to be open to the public but that they will be controlled and owned by the homeowner’s association. McMillan opened the meeting for public comment at 7:25 p.m. Donna Hager, 4580 West Branch Road, stated she met with Community Development Director Mack on December 5. She was advised that he had been in attendance at a meeting where septic systems in general were discussed as well as the proposed septic system next to her property. Hager indicated she was assured her that the septic site will be moved to the north slope rather than the south slope, which is by her home. Hager stated she would like to thank the City for doing that and that she can now have more peace of mind. Hager stated she did notice on Sunday that the septic area had been wrapped with black plastic and that perhaps the contractor did not know there was another site. Hager stated that is not a big deal but that the plastic is already falling apart due to the wind. Brenda Johnson, 520 North Arm Drive, stated last week she saw what appeared to be someone’s car that had left the road and knocked off some of the railing. Johnson noted it has been stated previously that there have been no reported accidents in the area, but this is one accident that likely was not reported. Johnson noted there has been previous discussion about the drain tile and how the water would be diverted off of the property across North Arm. Johnson stated she has not really seen any follow-up or discussion regarding that issue. She would like to hear what is happening and what the City Engineer has decided about the drain tile. Johnson stated the final item is when the packet from the City came out, there were some asterisked things that could be requested. Johnson stated she would like to know about the service water runoff simulation for a 100-year rain event. Johnson stated in her view it seemed like there could be a significant runoff, and asked whether Staff has looked at that and whether the applicant’s design actually takes into consideration managing that water. Gaffron stated it is on a punch list of items that the developer will address. He is not familiar with the specifics of the drainage plan other than the fact that the applicant has indicated the water will be diverted. Pat Hiller stated the culverts will be included in the final drainage plan but one culvert located in the low area will have to stay as is. Hiller stated the drainage plan will be part of the final plat application and that the water will be diverted from the culverts with the exception of that one culvert. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 8 of 26    (10. #14-3691 SOURCE LAND CAPITAL, LAKEVIEW PROPERTY, 405 NORTH ARM DRIVE, PRELIMINARY PLAT WITH PRD OVERLAY – RESOLUTION NO. 6474, Continued) Brenda Johnson stated the culverts were one item but the culverts are a little different than the drain tile. Johnson stated she has previously asked if there was drain tile from the golf course over North Arm. Hiller stated their engineers have informed them that there is no drain tile in that area. Hiller stated Lot 21 has a low depression that tends to puddle in the spring, which will be re-graded into a normal drainage path. Hiller stated it is their intention at this time to relocate the septic site near Ms. Hager’s property but that it is subject to the perc test results. Hiller stated their septic designer is 90 to 95 percent certain that it will pass the perc testing. Hiller stated that is the best they can do at this point given the weather. McMillan noted the City has been working on this application for the past year, and while it is sad to see open space become developed, great effort has been made to keep the area more natural. Levang stated she appreciates the neighbors’ patience and respect during the application process and that the City Council has attempted to see that the neighbors’ concerns have been addressed as best as possible. Brenda Johnson stated she also appreciates the cooperation from the developer as well. Johnson stated she is disappointed, however, that the City is not accepting ownership of the outlot as a park, but that she would like to thank the City for keeping the residents up to date on the progress. Bremer moved, Levang seconded, to adopt RESOLUTION NO. 6474, a Resolution Approving a Preliminary Plat for Lakeview, a Residential Subdivision at: 405 North Arm Drive (a/k/a Lakeview Golf Course), Property Identification Nos. 06-117-23-32-0003; 06-117-23-33-0005; 06-117-23-33- 0007; 06-117-23-34-0002; and 07-117-23-12-0001. VOTE: Ayes 5, Nays 0. 11. #14-3697 GARY AND JOAN MARQUARDT, 2617 CASCO POINT ROAD – VARIANCES City Planner Melanie Curtis stated at the last Council meeting that the applicants requested approval of variances to permit a second-story and deck additions to their existing home. At that time there appeared to be support for granting the second-story additions but the majority of the Council did not support the requested structural coverage variance to permit the new lakeside deck and stair. The application was tabled to allow the applicants’ time to reconsider a redesign or reduction in their plan to be considered tonight. The applicants have provided a revised plan with a reduced deck consisting of 190 square feet in area and extending approximately nine feet from the house. The applicants continue to propose the removal of the 60 square foot landing area and the existing patio on the lakeside of the house and the pergola, which accounts for 60.27 square feet of structural hardcover. The current requested approvals are for 18.6 percent structural coverage, which is 203 square feet over the 2001 approval, and 27 percent hardcover where 28.4 percent currently exists. The applicants’ plan results in a 242.5 square foot reduction in hardcover. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 9 of 26    (11. #14-3697 GARY AND JOAN MARQUARDT, 2617 CASCO POINT ROAD – VARIANCES, Continued) The applicants would like the City Council to consider their reduced deck proposal tonight. Staff has prepared two resolutions for consideration tonight. The first option approves the revised variances as requested by the applicants. The second option is split into a denial of the structural coverage and hardcover variances and approval of the setback variances permitting the second story additions. Staff recommends approval of the variances for the second-story improvements but continues to recommend denial of the structural coverage variance. The Council should review the applicants’ revised proposal and consider adopting or amending one of the resolutions. Gary Marquardt, the applicant, stated they have tried to understand where the City Council is coming from on the structural coverage limit. Marquardt indicated he has looked at the appeals and adjustment rules, and the salient factors in there are ones that he can reconcile in his head. Marquardt stated he is wondering, in light of what they have done, how they apply. The rules state that variances shall be permitted when they are in harmony with the general intent and purposes of the ordinance. Marquardt stated in his view the intent of the ordinance was to try to have 75 percent of Orono to be green space in total, but when you have lots that were deeded long ago that are pie-shaped and narrow in the front, it can become an issue. Marquardt stated in his view those define a practical difficulty. Marquardt stated the next items talks about it being a reasonable use, and that he has heard no arguments that this would not be a reasonable use of the property. Marquardt stated they have personal reasons for the deck that the Council cannot consider but that they are worth noting. Marquardt noted the essential character of the locality consists of a deck on every home in the neighborhood except this house. Marquardt stated they did not create this nonconforming lot, which is the biggest issue they have in defining the practical difficulty. Marquardt stated since the last meeting, they have looked over their property looking for additional items that can be removed. Staff displayed an aerial photo of the property. Marquardt pointed out the narrow area where their dock is located and the larger oval in the middle of the property where the deck will be tucked in. Marquardt stated every neighbor is in favor of the deck. Marquardt stated they felt it would be good faith to remove other areas of hardcover on the property wherever possible and that they have ended up with 67 square feet net gain in overall hardcover, which seems to be a very small request. Marquardt stated in their view there is the barest justification for denial of their request. Marquardt stated he understands the Council has to make a decision, but that in his view if every single citizen in Orono would see what is being proposed, the only people who might vote against it are in this room. Marquardt stated the biggest fear appears to be that somebody else or a number of other people will request a deck. Marquardt stated if someone has a similar situation and asked to increase the hardcover by 67 feet, in his view that should be granted, and that he would encourage the Council to approve their proposal. McMillan noted in 2001 a decision was made to remove the deck. McMillan asked if the applicant could provide some background information on that. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 10 of 26    (11. #14-3697 GARY AND JOAN MARQUARDT, 2617 CASCO POINT ROAD – VARIANCES, Continued) Marquardt stated the house was built in the 1960s. They were told if a sunroom was added, they had to remove the deck. Marquardt stated at that time they had only one grandchild and did not anticipate eight grandkids and one who has special needs. Marquardt stated the reason for the deck is to be able to confine them in one area. Marquardt noted they gave up more hardcover than what was gained with the sunroom. Bremer stated she likes the new plan more than the old plan and that she appreciates the applicant’s efforts in reducing the size of the deck. Bremer stated in her view the impact will be minimal and that the applicant has responded to the Council’s concerns. Bremer stated she used to live on that bay and did not have a deck. Bremer indicated she lived there for many years without a deck and only a stoop. Bremer stated the house was 100-years old and the previous owners had enclosed the porch, but that she never requested a deck because she knew how difficult it would be to get it approved. Bremer stated not having a deck was not ideal and that she can understand how circumstances change over time. Marquardt stated he would like to remind everyone that in the Planning Commission session they agreed to never build over the sunroom. Marquardt stated they have a narrow garage that was built in 2001, which seemed like a reasonable accommodation that they could make at the time, but that he is repeatedly banging his car door on the garbage cans. Marquardt stated this is a decision that will impact them for the rest of their lives and that there will not be a next time. Alan Greene, 2645 Casco Point Road, stated in 2011 or 2012, the City Council approved the improvements to Casco Point Road, which are fantastic. Greene stated in that instance the City held a number of meetings for public input and that the improvements have corrected the drainage that used to end up in their basement at no cost to him personally. Greene stated they have a deck but the Marquardt’s do not have a deck. The Marquardt’s have a gorgeous house that will be there probably long after they are gone. Greene stated the house is not going to be torn down and that there will be many families in that home over the next 100 years. Greene stated the house is crying for a deck. Greene stated the deck on their home is probably the second most important room in their house next to the kitchen. Greene indicated they love to entertain, as do the Marquardt’s, and a deck is terribly important. Greene stated he heard it said that there is want and need, that the Marquardt’s want a deck but do not need it. Greene stated the house needs a deck and that the next several families that purchase that house will probably make a decision on whether they want a deck and that a new Council will be faced with the same question of whether a deck should be put on the house. Greene stated following the budget hearing earlier this evening, it became very obvious that the City of Orono has an interest in seeing that property valuations in the community are set appropriately, which makes the community more valuable. Greene stated the houses are a city’s assets and that this house on Casco Point is an asset to the community of Orono, not unlike an asset for a corporation. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 11 of 26    (11. #14-3697 GARY AND JOAN MARQUARDT, 2617 CASCO POINT ROAD – VARIANCES, Continued) Greene reiterated that the house not only needs a deck, but is crying for a deck, and believes the variance is minor compared to the need for a deck on this house. Levang stated she has not changed her mind since the last meeting and that she agrees with Staff’s recommendation for the second-story addition, with a small landing off the front and stairway down to the lake, which is Option B. McMillan noted the Council is also talking about structural coverage and whether the deck will become enclosed at some point in time, which is important to consider. McMillan stated whenever the Council grants a structural coverage variance; it is for something that is very essential, such as a garage. McMillan stated the general feeling has been that the use of a home is reasonable even without a deck. McMillan indicated she also would be in favor of Option B Bremer indicated she is in favor of Option A. Printup stated two weeks ago he made comments regarding hardcover and how the City has changed the rules to allow more hardcover. Printup stated with this application, he is happy to see the hardcover reduced, but if you go with the black and white on the practical difficulty, it does not meet that standard. Printup stated there have been compelling arguments made for the deck, but that the City’s Code says otherwise, which is what he is struggling with. Printup stated he is not sure if the applicants are willing or able to reduce the deck any further, but that he does not see a practical difficulty for the deck. Cornick stated he has not visited the property and does not have enough information at this point to comment on the application. Marquardt stated in terms of wrestling with should we or shouldn’t we, the Council should ask themselves what price will be paid for allowing this. Marquardt stated he understands that terms get made up in laws to cover the bases, such as the term massing. Marquardt stated he has a hard time understanding how a deck creates a lot of mass and that he understands the concept of hardcover but it is rather nebulous when you look at the spirit and intent of the law. Marquardt asked what the price paid would be if the City were to say yes to this. Printup stated he wants to error on the side of the homeowner, and if you go back to the phrase of whether it is a need or a want, the ordinance says it is a want and that it will become a question of what the next homeowner will desire. Printup indicated he lives on a very small lot and that there is a lot he would like, which gets into the position of what integrity the City Council will have in going through the variance process. Marquardt stated the shape and size of this lot is a hardship, and that if someone else has a similar situation, he would not be opposed to it. Marquardt stated to his understanding the City’s Code provides a baseline that the City Council needs to use when it makes a decision based on the different circumstances. Marquardt stated the City Council gets to decide what they are allowed to do with their property and he is trying to understand what the rationality is for the City saying no. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 12 of 26    (11. #14-3697 GARY AND JOAN MARQUARDT, 2617 CASCO POINT ROAD – VARIANCES, Continued) Printup noted if he votes yes, it would be back to 2-2 and the motion would fail. Marquardt stated he is working on one vote at a time. McMillan stated if it was just a hardcover issue, the decision would be easy, but that structural coverage is a bigger issue than just hardcover. Marquardt asked why there should be a difference between those two at all. McMillan stated it has more to do with how much space the house takes up on the lot, which is massing and size. Marquardt asked what the detriment of the deck would be. McMillan noted Mr. Greene talked about the City’s valuations increasing and she would credit some of the increase to the fact that the City has some codes that have made Orono a desirable place to live and by not allowing certain areas to become overbuilt. McMillan stated she periodically hears about massing problems in Edina and other communities and many people can go around the Lake Minnetonka and recognize when they are in Orono and not somewhere else. McMillan stated the City Council creates a community through their code, which is why the planning code is important. McMillan stated if you repeatedly let things go there is no longer a code. McMillan stated that is a difficult balancing act for the City Council. Marquardt stated this deck will not deter anyone from moving into Orono. Levang moved, Printup seconded, to approve Option B, and to adopt RESOLUTION NO. 6475, a Resolution Granting Setback Variances from Orono Municipal Code Sections 78-350, and Denying Variances from Orono Municipal Code Sections 78-1403 and 78-1700, for the property located at 2617 Casco Point Road. VOTE: Ayes 3, Nays 1, Bremer Opposed, Cornick Abstained. 12. #14-3698 SHARRATT DESIGN CO., ON BEHALF OF JAY HULBERT – 3035 CASCO POINT ROAD – VARIANCE – RESOLUTION NO. 6476 Curtis stated the applicant is requesting a side setback variance to permit a portion of an addition to be situated as close as 8.5 from the side property line where a 10-foot setback is required. The home addition is proposed to replace an existing elevated deck. The applicant’s proposal results in 157 square feet less hardcover than what currently exists. However, because the property exceeds the Tier I limitation of 25 percent and because the proposal involves new structural hardcover, a hardcover variance is required in order to reduce the level from 34.2 percent to 33.6 percent as proposed. At the November meeting, the Planning Commission voted 5 to 0 in favor of the variances for the addition. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 13 of 26    (12. #14-3698 SHARRATT DESIGN CO., ON BEHALF OF JAY HULBERT – 3035 CASCO POINT ROAD – VARIANCE – RESOLUTION NO. 6476, Continued) Staff recommends approval of the side setback variance to allow to the existing home over the existing structural deck in conjunction with this addition resulting in 33.6 percent hardcover. A resolution has been drafted for the City Council’s consideration. McMillan indicated she is fine with the application. Mike Sharratt, the applicant, stated the issue is that there was significant frost heave on the deck and porch. This resulted in the entire structure being lifted over a foot. The porch and deck have settled a little during the spring but that there is still an issue with the structure. The property owners have decided to remove the porch and deck and replace it with a more permanent structure. Sharratt stated during the design process, he tried to make sure that the improvements would result in a better situation than what existed prior to his client purchasing the house by reducing hardcover and structural coverage. Levang moved, Printup seconded, to adopt RESOLUTION NO. 6476, a Resolution Granting Variances from Orono Municipal Code Sections 78-350 and 78-1700, for the property located at 3035 Casco Point Road. VOTE: Ayes 5, Nays 0. *13. #14-3699 WJM PROPERTIES, LLC, 2605 WAYZATA BOULEVARD WEST – INDUSTRIA SITE PLAN AND CONDITIONA L USE PERMIT – RESOLUTION NO. 6477 Bremer moved, Levang seconded, to adopt RESOLUTION NO. 6477, a Resolution Granting Industrial Site Plan and Conditional Use Permit Approval Pursuant to City Code Sections 78-142 and 78-823 for WJM Properties, LLC. VOTE: Ayes 5, Nays 0. 14. #14-3701 CHARLES CUDD de NOVO ON BEHALF OF ROBERT RODEN, 460 ORCHARD PARK ROAD – SKETCH PLAN REVIEW This item was removed from tonight’s agenda at the request of the applicant. *15. #14-3703 PETER RENNEBOHM, 4565 BAYSIDE ROAD – FINAL PLAT – RESOLUTION NO. 6478 Bremer moved, Levang seconded, to adopt RESOLUTION NO. 6478, a Resolution Approving the Plat of Bayside Meadows. VOTE: Ayes 5, Nays 0. PLANNING DEPARTMENT REPORT, CONTINUED Mack stated the Navarre Area Demonstration Project training conducted by Blue Cross/Blue Shield will take place on Tuesday, December 9. At the present time 30 people will be attending the event. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 14 of 26    PUBLIC WORKS DIRECTOR/CITY ENGINEER’S REPORT *16. GREEN TREES ROAD SANITARY SEWER EXTENSION – PAY REQUEST NO. 2 – FINAL Bremer moved, Levang seconded, to approve Pay Request No. 2 – Final for the Contractor Ground Effects, in the amount of $3,139.37 for the Green Trees Sanitary Sewer Extension Project. VOTE: Ayes 5, Nays 0. *17. NAVARRE STREET LIGHT AND SIDEWALK PROJECT – PAY REQUEST NO. 4 Bremer moved, Levang seconded, to approve Pay Request No. 2 for the Contractor MP Technologies in the amount of $163,396.75 for the Navarre Street Light and Sidewalk Project. VOTE: Ayes 5, Nays 0. 18. PARK AND BEACH MAINTENANCE STANDARDS Public Works Director and City Engineer Adam Edwards reported the Park Commission voted 6 to 0 to recommend approval of the park and beach maintenance standards. McMillan stated that until the City knows the cost of the buoys and the issues associated with the maintenance, she has a concern with including that in the standards. Edwards stated in the past the City had swim buoys at the swim beaches and that they were very difficult to maintain and keep in place. Edwards stated a definite concern of the Parks Commission was with the safety of swimmers and keeping motor craft out of that area. The Parks Commission’s course of action was to recommend placement of a marker or a buoy. McMillan stated the City has discussed placing buoys in the past near Big Island but that they had a concern about maintaining them and subsequently elected not to install them. Printup stated he did receive a request from a resident asking that the buoys be put back in again and that he was happy to see that included in the standards. Printup stated the reason that stuck with him was the fact that it was totally unsolicited. McMillan stated she would like to see some further research on the buoys before including it. Levang stated she would like to know if there is some other way to mark or designate the area as a swimming beach, with no motorized craft being allowed. City Administrator Loftus stated the Council should also consider what the benefits of the buoys are and whether the City has lost anything by not having the buoys. Loftus stated she is not sure if that resident shared some lack of safety they experienced a number of years ago, but that the City has not had any buoys for quite some time and there have not been any incidents. Printup stated it brings up the issue of how well used the beaches are and that it is his impression the beaches are not as well used as in the past. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 15 of 26    (18. PARK AND BEACH MAINTENANCE STANDARDS, Continued) McMillan recommended Staff take a look at the buoys. Printup noted Finance Director Olson brought up maintenance at the parks and the need to trim tree branches. Printup stated just this weekend he sent a picture of a hanging limb to the Public Works Director and that it is just one example of things that need to be addressed and how the City needs some standards for their parks. Cornick asked if there are county or state standards that the City might be in conflict with. Cornick asked whether other cities have maintenance standards for their parks. McMillan stated she is aware the School District has standards and that to her knowledge other cities do as well. Loftus stated Staff had a difficult time obtaining any standards from the neighboring communities and that typically park maintenance is part of the Public Works Department and is not always documented. Loftus noted this Council, as one of their goals, recommended a set of standards be established in order to get everyone on the same page. Bremer moved, Printup seconded, to approve Orono Park Maintenance Standards and Orono Swim Beach Standards with the deletion of swim buoys being placed in front of each beach. VOTE: Ayes 5, Nays 0. Public Works Director and City Engineer Adam Edwards reported the trucks were out sanding the roads today. Edwards stated with the slight warmup in temperatures, the Public Works Staff was at Bederwood and cleaned up the area around the canoe landing on Long Lake. Edwards stated the Public Works Department has also been removing and clearing tree branches with the hope of being able to do that as long as the weather remains nicer. Edwards stated with the increased funding for park maintenance, the Public Works Department may contract some of that in the spring for what Staff is not able to do. Edwards reported the sewer lining phase of the project was due to start today but that the contractor will not be starting that project until January 5. Edwards noted the window for completion of the project is next July. McMillan asked if the City has its own chipper. Edwards indicated the City does have its own chipper and that the chips are available to the residents. *19. ACCEPT QUOTATION FOR DUMP BOX AND SPREADER REPLACEMENT FOR TRUCK #431. Bremer moved, Levang seconded, to approve the replacement of dump box and spreader for Truck No. 431. VOTE: Ayes 5, Nays 0. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 16 of 26    MAYOR/COUNCIL REPORT Printup noted later on this week the Highway 12 Safety Coalition is meeting. Printup suggested a letter or some kind be sent to the Safety Coalition in support of the rumble strips. Printup noted there was another bad crash on Highway 12 this past week. Police Chief Farniok stated the Safety Coalition has been meeting regularly and that at the meeting on Thursday he is hopeful MN/Dot will bring a resolution with a recommendation for rumble strips. Farniok noted there are several areas of the highway that are set for reconstruction in the next few years and that will be the time to implement the recommendations of MN/Dot. McMillan thanked the Council and Staff for another productive year. McMillan stated everyone did a good job of working through the Lakeview application and that in her view the City is getting a good product. McMillan stated the Planning Department has done a good with staying on top of all the new building permits and applications. McMillan stated she would also like to thank the Public Works Department for their work during the flooding and cold weather last winter. McMillan noted the Public Works Department has gotten caught up with some outstanding maintenance issues throughout the City and that they have also been working on the water treatment project and putting together the bonding package. McMillan noted the Public Works Department will continue to work on the road issues, which will be ongoing. McMillan stated she wants to thank the finance department and administration for putting together another smart budget and addressing some of the maintenance issues as well as the police department for another good year of service to Orono and its contract cities. McMillan stated she has heard nothing but good things about the police service and that the police project appears to be going well. McMillan stated she knows the City Administrator and Police Chief have been working hard to make that project run smoothly. McMillan stated she would also like to thank the Members of the City Council for their great attendance at the meetings, which allowed the Council to have a quorum at each meeting. McMillan stated in her view the residents will be pleased with the dedication demonstrated by the Council. CITY ADMINISTRATOR’S REPORT 20. WAYZATA FIRE SERVICE AGREEMENT Loftus stated Orono has a long history of obtaining fire protection through the City of Wayzata for a small section of Orono. This year Orono ended up being 7.5 percent of their calls. Loftus stated the fee is determined by taking the percent of calls and applying that to Wayzata’s budget. This year’s allocation will be $29,000. Loftus stated over the past eight years the percentage has ranged anywhere from six to nine percent of Wayzata’s calls and the costs have varied. Loftus stated the contract is the same as it has been in the past and that Wayzata has provided a good level of service through the years. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 17 of 26    (20. WAYZATA FIRE SERVICE AGREEMENT, Continued) Printup stated he would encourage the new Council to take a hard look at this. Printup noted Orono is looking at $1,000 per call and that the City needs to be mindful of tax dollars. Printup stated he would like to make it a higher priority for next year and perhaps make some changes if necessary. Printup stated based on an average of 20 to 30 calls a year; he cannot make sense of the cost. Levang stated she respects Council Member Printup’s comments but that she would like to see some neighborhood meetings before anything is changed. Levang stated there is a lot of unknown in the numbers and that the number of calls could go up, which would require the City to look at it as a flexible number. Levang noted with that contract the City also receives a commitment by the Wayzata Fire Department to respond in an efficient and timely manner and that the service is providing safety for Orono citizens, which is an important issue to be looking at. Levang moved, Bremer seconded, to approve the Wayzata Fire Service Contract with the City of Wayzata and approve payment for fire protection services. Cornick asked what type of calls they include. Loftus stated they include fire calls, medicals, and false alarms. Loftus stated the City does receive a printout of the calls which Staff reviews for accuracy. Farniok stated the majority of the calls relate to medicals and fire alarms, which tend to be false alarms or are canceled in route but ones the City still gets billed for. Cornick asked if the homeowners pay for the false alarms. Farniok indicated they do not. Farniok stated they had six calls to the Wayzata Country Club, which is split between Orono and Wayzata, and that some have been false alarms and some have been medicals. Cornick stated recovering some of those costs for a false alarm could be something to think about. McMillan stated she is assuming the City is also sharing in some of the fixed costs of the fire department. Bremer stated it is likely similar to the arrangement with the Long Lake Fire Department. VOTE: Ayes 4, Nays 1 Printup Opposed. *21. AUTHORIZATION TO PURCHASE 2015 SQUAD CARS Bremer moved, Levang seconded, to approve the purchase of one 2015 Dodge Police Charger AWD for $26,478.00, plus tax, registration and other miscellaneous fees, from Dodge of Burnsville, and three Ford Interceptor SUVs for $26,650.00 each, plus tax, registration and other miscellaneous fees from Nelson Auto Center in Fergus Fall. VOTE: Ayes 5, Nays 0. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 18 of 26    22. 2015 NON-UNION EMPLOYEE COMPENSATION ADJUSTMENTS – RESOLUTION NO. 6479 Loftus stated each year the City adopts a non-union employee compensation adjustment and an adjustment in the monthly insurance contribution. Loftus noted the City Council has discussed this item in a number of work sessions related to the budget and in the current budget there is a 2.5 percent wage increase allocated for non-union wages. Loftus noted the main discussion at the work sessions was whether that should be a lump sum payment or a cost of living adjustment. An adjustment to the monthly insurance contribution has been less of a discussion topic. Staff has provided the City Council with a draft resolution. Loftus noted Staff did not want to be presumptuous with the numbers and that it will be necessary for the City Council to denote which numbers should be inserted in the resolution. Staff’s recommendation is a 2.5 percent COLA increase to keep equity among union and non-union employees. McMillan asked what the dollar amount increase was for the insurance. Loftus indicated it was $75. Bremer stated in her view this is the right way to go and that she did not like the direction the City went in the last few budget cycles. Bremer stated she understood the rationale the Council used for the last few years but that in her view the City should commit to a 2.5 pay adjustment this year to reward fantastic service and to encourage fantastic service in the future. Bremer noted the City heard from a departing employee that one of the reasons that person looked for other work was the pay freeze, which put him in a worse position than what he had bargained for. Bremer stated the City is behind on wages given the pay freezes compared to where they would have been without the pay freezes. Levang stated Orono is a small city and that the City Council owes it to the taxpayers to act like a small city. Levang noted one of the things talked about last year was to stop the compounding of wages because over time it will become more difficult to be able to keep the wages as high as they become with an annual increase. Levang stated it takes courage to hold the line on the budget and that it is difficult to say that she is not in favor of COLA, but that she would propose a 1 percent lump sum and a 1 percent raise, which would be 2 percent. Levang indicated she does not want to go above 2 percent and that the 1 percent would give the City the ability to save in the long-term but yet allow for Staff to have an increase in their base wage. Printup stated he likes the creativity of Council Member Levang’s suggestion and that he would have liked to have seen it six months ago when this item was first discussed. Printup stated the recession in 2008 was a time to focus in on the annual increases and that he was happy to see the City was able to do something like that last year. Printup stated heading into 2015 times are different and that he would agree with Council Member Bremer. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 19 of 26    (22. 2015 NON-UNION EMPLOYEE COMPENSATION ADJUSTMENTS – RESOLUTION NO. 6479, Continued) Printup stated the route proposed by Council Member Levang gives the City some flexibility and stabilization going into the future. Printup indicated for 2015, however, he is in favor of the traditional COLA and following the City Administrator’s recommendation of 2.5 percent. McMillan stated the City needs to be careful with COLA since it is a permanent raise hike. McMillan stated if COLA is not kept in check, it can get high and then cities get in a position where salaries take up a lot of the General Fund and not much money is left over for other items. McMillan stated she understands for a while the wages of union and non-union employees were kept the same. McMillan noted the City has kept the benefits the same both classes of employees, which is a good policy, but that she is a little concerned about the compounding wages. McMillan indicated she likes the hybrid approach proposed by Council Member Levang with the 1 percent pay raise and the lump sum increase, which helps keep the salary increases down. McMillan noted Orono cannot compete with the bigger cities and that they have to stay mindful of that. McMillan stated it is important that Orono’s rates are comparable to other primarily residential cities Orono’s size. McMillan stated in her view 2.5 percent is too big of an increase and that she would like to find some compromise. McMillan stated if the City starts doing 2, 3, or 4 percent increases on a regular basis, in the not-too-distant future the salaries will be pretty high. McMillan stated she would like a more moderate pay raise with a lump sum to further compensate the employees without increasing the pay ranges. McMillan opened the meeting up for public comment. There was no public comment on this item. Bremer stated at this point she trusts the due diligence that has been done by the City Administrator, which was done at the direction of the Council, and that they are talking about a minimal number of employees. Bremer noted they are talking about a difference of $7,400 between 2 percent and 2.5 percent. Bremer stated having been an employment lawyer for 20 years; she has never heard anybody say compounding in relation to a salary. Bremer stated the City does need to carefully look at their budget, but that in her view the City may be pennywise and pound foolish in this instance. Bremer noted the City Council approved on the Consent Agenda tonight five squad cars but yet they are spending tons of time nickeling and diming $7,400, which can send the wrong message. Bremer stated she would encourage the City Council to continue to be diligent in trying to save money in areas where they should, but that this is one of the areas the City Council has already taken the knife to for the last couple of years and that this is not an area where they should continue to do that. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 20 of 26    (22. 2015 NON-UNION EMPLOYEE COMPENSATION ADJUSTMENTS – RESOLUTION NO. 6479, Continued) Bremer stated she would encourage the City Council approve the 2.5 percent increase with a pledge commitment on the part of the City Council to get assistance to analyze the appropriate pay brackets for each job and the competitive nature of the pay scale. Bremer stated if one of the concerns is that the pay ranges are getting out of line as compared to the rest of the market, the City Council should have that data. McMillan noted the City is not talking about cutting wages but rather stabilizing the wages going into the future. McMillan stated in her view Orono has the right mixture of employees but that they also need to do some other projects as the tax base grows that the citizens want the City to do that have been deferred. McMillan stated the budget is a balancing act and that it needs to be sustainable for the City going forward. Levang indicated she is in agreement with Mayor McMillan. Levang asked if a decision needs to be made tonight and what the ramifications would be if it is not approved tonight. Mattick noted typically the City’s raises have taken effect January 1. Mattick stated the Attorney General has issued an opinion on retroactive payments and that a collective bargaining agreement can account for retroactive payments if the City is in the process of negotiating with the bargaining unions. Mattick stated the City does not have the same ability to do the retroactive payment with non-union employees and that the Attorney General has said that that payment essentially amounts to a bonus or a gift. Mattick stated if the Council is looking to have the rate go into effect January 1, the decision needs to be made tonight. Loftus stated what would happen on January 1 is the employees would actually revert to 2013 wages. The resolution adopted last year was explicit and said at the end of 2014 the lump sum goes away, which has been accommodated for in the budget. Loftus stated it would not be status quo come January 1 and that the employees would revert back to their 2013 wages. McMillan stated if there was a hybrid that totals 2.5 percent, she would be willing to consider that. Bremer suggested 1.5 percent COLA and 1 percent lump sum. Printup stated it would be a disservice to everybody if the Council did not approve something tonight. Levang stated what the Council is leaning towards is having a total of 2.5 percent but part of that would be a lump sum and part would be COLA. Loftus stated her preference would be that the 1.5 percent be the COLA since it would allow the 2014 wages to continue and not revert back to 2013 wages. Printup stated he is comfortable with that. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 21 of 26    (22. 2015 NON-UNION EMPLOYEE COMPENSATION ADJUSTMENTS – RESOLUTION NO. 6479, Continued) Printup moved, Levang seconded, to establish the 2015 non-union employee compensation adjustments at 1.5 percent COLA and 1 percent lump sum payment, and Adopt RESOLUTION NO. 6479, a Resolution Approving Pay Plan Adjustments for Non-Union City Employees for 2015. VOTE: Ayes 3, Nays 1, Bremer Opposed, Cornick Abstained. 23. FIRST AMENDMENT TO EMPLOYMENT AGREEMENTS Loftus noted the Police Chief and City Administrator have employment contracts, which is not common for most non-union employees, but it is extremely common for like positions in other cities. Loftus stated she has received a request for full family medical, along with a salary comparison from area cities. Loftus noted the City has been working on this for a few months for both contracts and that it is up for consideration this evening. Loftus noted only HSA plans are offered in the City and that the amount of the deductible would be deposited directly into the employees’ Health Care Savings Plan since the City does not offer a co-pay/Cadillac plan. Loftus noted this would be the first amendment to both contracts. Printup asked what would happen in the future 30 years from now and the City has new hires in these positions. Loftus stated the existing contracts would go away when a new city administrator or police chief is hired. Levang asked if past history would have any impact on the new contracts. Mattick stated the contracts are public documents and that any new hire would have access to them if they chose to look at them. Loftus noted the former city administrator had full family medical. Mattick stated the City Council is not legally bound to provide the same benefits and that it would be a newly negotiated contract. Printup stated he is uncomfortable with these amendments in light of the preceding conversation for non- union compensation and that he is not in favor of the amendments. Levang stated she is also struggling with it. Levang stated if you take the person out of the equation, in her view it would be difficult to explain why the Council is doing this. Cornick asked if other city administrators and other police chiefs have similar agreements. Loftus indicated they do. Dennis Walsh, 1354 Rest Point Road, stated this is a great time for the City to have a conversation about these kinds of payments. Walsh stated the City is talking about defined contribution type of plans versus open-ended kind of plans where the City could be on the hook for whatever it happens to be. Walsh stated he knows, based on what he pays his employees in terms of family and individual coverage, the City is definitely on the high end of that to begin with. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 22 of 26    (23. FIRST AMENDMENT TO EMPLOYMENT AGREEMENTS, Continued) Walsh indicated he looked up the statistics for family income. Walsh stated if the top 10 percent of family incomes are greater than $120,000 a year and the top 5 percent of family incomes are $153,000 a year, in his view the City is doing pretty good in terms of what they pay their employees. Walsh stated the City Council needs to get back to what Mayor McMillan said about Orono being a small city. Walsh noted Orono is not bound to do what everybody else does and that employee benefits that continue to grow is one reason why a lot of cities around the country went bankrupt. Walsh stated he does not want to see Orono find itself in that kind of position and that this is a conversation that needs to be had from a long-term perspective. Police Chief Farniok stated within the salary schedule that was provided to the Council, there are some examples where they have no cap for medical. Farniok stated currently the police chief of Loretto has 1500 hours where Orono’s is capped at 900 as it relates to compensation. In addition, some of the salaries in other neighboring cities allow their police chiefs to have full medical or a higher benefit. Farniok stated the schedule shows that Orono’s compensation and benefits are well behind some of the neighboring cities even though Orono is one of the larger police departments around Lake Minnetonka. Farniok stated a number of the other police chief positions also do not have as many responsibilities that he holds, such as director of emergency management. Farniok stated when you compare that to South Minnetonka, which has several contract cities and joint power agreements, Orono would be about equal with the package that has been presented tonight. McMillan stated one of the struggles she is having is with the deductible piece of it since the City has attempted to base the insurance on what is used. McMillan noted in the past the City got into a situation where they were paying more for a deductible than what was being used and that she is struggling with paying for that up front when it may not all be used. McMillan noted the City has also capped the single premium for other employees. McMillan stated the goal with the union contract was to increase the family insurance payment piece and that she is struggling with the deductible piece of the proposal, which is a benefit that nobody else has in the City. Printup stated dollar for dollar it comes out to $16,000, and based on the preceding drawn-out conversation about $7,400, he is not comfortable with it for a variety of reasons. Printup noted the City Council just received the information two weeks ago and that he would like a more thorough discussion on this next year rather than having two weeks to think about it. Bremer stated she is fine with that and that she understands the rationale. Bremer stated in her view the question is a philosophical question and that it is important and beneficial to all parties to know what the market rate is. Bremer noted previously the philosophy of the City was to be competitive in order to attract the top talent. Bremer noted the City ended up hiring these two candidates and that the City likely was able to negotiate a really good contract because it was done at a time when the economy was not in the best of shape. Bremer stated she would like to remind the Council that the past long-term city administrator had what is being proposed tonight and that it was relatively standard at that time. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 23 of 26    (23. FIRST AMENDMENT TO EMPLOYMENT AGREEMENTS, Continued) Bremer stated this has been done before in Orono but that it is a philosophical question. Bremer stated in her view Orono should be competitive and that they should compensate these individuals for who they are and what they bring to this role. Cornick stated everyone knows that insurance companies raise their premiums periodically, and asked what it would cost in 2016. Cornick asked whether the City can limit it in some respect in the future since that is kind of an unknown area going into the future. McMillan stated medical care has become expensive and that the City-paid premium part has increased over the years. McMillan stated that has been a good effort on the part of the City and that maybe that in itself is a good enough effort. Printup stated he is not comfortable or able to make a decision tonight when they are talking about $20,000 for compensation adjustments for two individuals and $15,000 for the amendments. Levang moved to table Item No. 23, amendment to employment agreements, to the February City Council work session. McMillan stated in her view the City Council can discuss this at a future work session and that it does not necessarily need to be discussed in February. Mattick stated given the nature of the request, it would be preferable to have a set date for when it will be discussed again so it will not be so staff driven. Levang indicated she would prefer to discuss it at a work session. Printup stated he would prefer to discuss it during the budget talks for 2016 and that in his view the amendment has come too late this year. Levang indicated she would prefer to discuss it at a work session, and asked when the budget discussions typically start. Olson stated they typically start in late May, early June. Printup stated he does not want to give a false impression that the City Council is going to talk about this and make a decision in February. Bremer stated if the City Council is looking for cost of insurance and other variables, Staff should be directed to obtain that information. Levang stated she wants to be respectful to the City Administrator Loftus and Police Chief Farniok about not pushing this out too indefinitely. Levang indicated she would prefer that it put it on the February work session agenda and that the City Council can determine where they go from there. Levang stated in the mean time the City Council could ask the City Administrator for additional information. Levang stated the chart that was provided was helpful and the City Council could review that again. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 24 of 26    (23. FIRST AMENDMENT TO EMPLOYMENT AGREEMENTS, Continued) McMillan asked when the City typically reviews its health care plans. Loftus stated all the rates are set for January 1 and that the City has a four-year plan with Blue Cross. Olson stated it is a four-year contract and that this will be the third year. Loftus stated Logis will be going out for RFPs next year and that by mid-summer they should have a good idea of the response. Printup concurred that it is kind of an unknown number in future years. Levang stated her motion to table to the February work session still stands. Bremer seconded the above motion. VOTE: Ayes 4, Nays 0, Cornick Abstained. *24. PROPOSED 2015 OFFICIAL CALENDAR Bremer moved, Levang seconded, to approve the 2015 Orono Official Calendar. VOTE: Ayes 5, Nays 0. *25. 2014 INTERFUND TRANSFERS Bremer moved, Levang seconded, to approve the transfers and loan payments as outlined in the 2014 Interfund Transfers and Loan Payment Schedule. VOTE: Ayes 5, Nays 0. *26. LICENSES AND PERMITS Annual Liquor Licenses Club On Sale and Sunday Liquor 1. Orono Liquor D/B/A Narrows Saloon 3380 Shoreline Drive 2. Orono Golf Course Bremer moved, Levang seconded, to approve the above-listed licenses. VOTE: Ayes 5, Nays 0. *27. CLAIMS/BILLS Bremer moved, Levang seconded, to approve payment of the All Funds Account. VOTE: Ayes 5, Nays 0. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 25 of 26    (CITY ADMINISTRTOR’S REPORT, Continued) Loftus stated she would like to run through some of the FEMA numbers associated with the flooding experienced this past summer. Loftus noted the City did receive funds from FEMA for the work that was performed in the amount of $28,000. The funds covered just the emergency work performed by the City during the 100-year flood event. Loftus noted Baldur Park Road experienced significant flooding and a sand berm was installed. Loftus stated a significant amount of time and effort was spent by City Staff on controlling the flooding. Loftus stated FEMA has what is called a force account, which is the City’s equipment rate along with Staff’s hourly rate. FEMA takes that dollar amount and then reviews the City’s time sheets to determine how much time was spent on those efforts. FEMA then calculated that the City incurred approximately $28,000 in costs. Loftus noted the City did not actually incur much overtime in dealing with the flooding. Loftus stated the City also had contract work done to handle the flooding and that Bolton & Menk spent quite a bit of time working as well. Loftus indicated approximately $18,000 of those funds were placed into the City’s equipment overlay fund, which was approved earlier tonight. At Council’s direction, Staff looked at acquiring a high- volume pump since the local rental agencies were out of pumps. Loftus indicated the City spent $3,900 on a high-volume pump. Loftus stated Phase 2 of the FEMA reimbursement process included reimbursement for damage to culverts and roadways during the flooding. Loftus stated the City received notice that they would be eligible to receive reimbursement in the amount of $115,000. Staff compiled eight different sites for possible reimbursement and five sites were improved, including Starkey Road, Casco Point Road, Crestview Road, Baldur Park Road, and Stubbs Bay Road. Loftus stated reimbursable repairs to Starkey Road amounted to approximately $21,000. Casco Point’s reimbursable costs will be determined once bids are received in the spring to repair the damaged pavement, and once the work is actually done, it will be submitted for reimbursement. Loftus stated Crestview Road had a culvert that was destroyed, which has essentially been repaired except for a final patch that will be completed in the spring. Stubbs Bay Road also had a failed culvert, which was approved for repair by the Council in August, and the City will be reimbursed $12,000 for that work. Loftus stated the City could be reimbursed $59,000 for repairs to Baldur Park Road. Loftus noted the City also received a petition from the residents to improve Baldur Park Road following the flooding. Loftus indicated the portion in yellow on the map is the part that sustained the most damage and qualifies for reimbursement. Loftus stated if the City were to do a complete reconstruction with full flood mitigation, the project would be over $200,000. Loftus indicated the $59,000 received from FEMA would only cover about 27 percent of the project costs. Loftus stated the City Council will receive from Staff a couple of different options that will be presented in January or February. Loftus noted there is an 18-month requirement from the declaration date so the project would need to be completed in 2015. Loftus stated she would also like to thank Staff for all the hard work they did in dealing with the flooding and that it was a really successful group effort. MINUTES OF THE ORONO CITY COUNCIL MEETING Monday, December 8, 2014 6:30 o’clock p.m. _____________________________________________________________________________________   Page 26 of 26    (CITY ADMINISTRTOR’S REPORT, Continued) Cornick stated to his understanding a number of people were complaining about the flooding behind Lund’s along Kelly Avenue and that he is curious why that is not included. Loftus stated according to FEMA, there was no sustained damage. Loftus stated the culverts in that area were clogged but that the area experienced no sink holes or permanent damage. Edwards stated a drainage study was recently conducted in the Kelly Avenue area and the drainage system in that area is significantly undersized for the amount of water that it needs to handle. Edwards indicated he is still finalizing that study with Bolton & Menk before bringing proposals to the City Council. Cornick asked if that would be a candidate for this funding. Edwards stated it would be difficult to say that this infrastructure was damaged by the flooding and would likely not be approved. Loftus stated there was also an incident on Olive Avenue and East Long Lake Road that did not qualify as well. Farniok stated FEMA has strict criteria on what qualifies for reimbursement and just the fact that there is water over the roadway does not mean it meets the criteria. Farniok stated FEMA looked at the wave action that constantly occurred on Baldur Park and that the flooding experienced on Kelly Avenue and East Long Lake Road did not undermine the pavement. Cornick asked if this would be a path for any homeowner that had a basement full of water. Farniok stated those individuals were given references and resources in order to contact the state for anything that was not covered by insurance. Loftus stated in some of the surrounding cities that experienced sewer backups, some of those claims were denied because the property owners had insurance. Loftus stated the private property owners were given contact information to pursue a claim. CITY ATTORNEY’S REPORT Mattick stated he had nothing to report. ADJOURNMENT Bremer moved, Levang seconded, to adjourn the Orono City Council meeting at 9:35 p.m. VOTE: Ayes 5, Nays 0. ATTEST ________________________________________ _____________________________________ Diane Tiegs, City Clerk Lili Tod McMillan, Mayor