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HomeMy WebLinkAbout02-27-2017 Council Minutes MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. ROLL CALL The Orono City Council met on the above-mentioned date with the following members present: Mayor Dennis Walsh,Council Members Richard Crosby,II,Wendy Dankey,Aaron Printup,and Victoria Seals. Representing Staff were City Administrator poug Reeder,Community Development Director Jeremy Barnhart,Public Works Director/City Engineer Adam Edwards, Senior Planner Michael Gaffron,City Planner Melanie Curtis,City Attorney Soren Mattick,and Recorder Jackie Young. Mayor Walsh called the meeting to order at 7:00 p.m.,followed by the Pledge of Allegiance. APPROVAL OF AGENDA Item Nos. 3,4,5,6,9, 12,and 14 were added to the Consent Agenda. Item No. 2 was removed from the Consent Agenda. Printup moved,Seals seconded,to approve the Consent Agenda as amended. VOTE: Ayes 5, Nays 0. APPROVAL OF MINUTES 2. CITY COUNCIL MEETING OF FEBRUARY 13,2017 Walsh requested the minutes on Page 17 be corrected under Item No. 18 to read that one of the bonds was closed out in 2013. Walsh moved,Cosby seconded,to approve the minutes of the Orono City Council meeting of February 13,2017,as submitted. VOTE: Ayes 5,Nays 0. PUBLIC COMMENTS Jay Nygard, 1386 Rest Point Road,stated he read on the Internet that there would be no comments or discussion at the time Item No. 17 is discussed. Nygard noted most of the people in the audience are here to talk about the docks on Big Island. Walsh indicated that item will be open for public discussion. Nygard asked if he changed what it said on the Internet. Walsh stated he is not aware of what Mr.Nygard is talking about but that they will open it for public discussion. Gabriel Jabbour,985 Tonkawa Road,questioned whether the Mayor is really going to wait until Item No. 17 comes up for discussion to allow all these people to speak. Jabbour noted he has provided correspondence to the City Council regarding this item and the history of Big Island. Jabbour commented most people will do things for the betterment of the community unless they are proven otherwise and that he believes the Council is trying to better the community. Jabbour stated from the early 1970s,it was the goal of the City to acquire the island. When it came up for sale in the 1980s, Page 1 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. PUBLIC COMMENTS(continued) the City made sure that it was not sold. A bill was introduced and passed in the MN Legislature giving the public sector one legislative year to get the money together for the purchase. Since that time the City has spent several hundred thousand dollars providing services, such as water boats,firefighters,and water tanks buried on the island. Jabbour stated the City cannot simply refuse to provide 911 services to Big Island. Jabbour stated at the same time,the City got challenged on the Pazk Dedication Fund and they came up with a plan. Jabbour noted he is repeating this for the audience. Jabbour stated the purchase of Big Island was a phenomenal opportunity for the City,and in the hallway there is a picture of the island signed by a conservative Republican Governor telling the City what a great job they did. Jabbour stated at that time the City made an absolute commitment to the veterans. The veterans had another buyer for the Island but they reversed that sale and allowed the City two years to come up with the money. Jabbour stated he is absolutely dumbfounded that with all the resources,the knowledge,the engineers,the marina owners,etc.,that the Council did not reach out to someone and ask for an explanarion of why the purchase happened. Instead,the Council just arbitrarily made a decision on it, with very little discussion. Jabbour noted he personally testified,along with Mayor McMillan,in front of the legislature,and that the City received the funding. Jabbour stated the Council gave no hint about a commitment made to the veterans when they voted on the docks. Jabbour stated the City Council should look at the last 11 years. The veterans were given this island in the 1930s by a private individual who was sympathetic to all the veterans coming home from World War I with shellshock. For the last 11 years,the veterans have enjoyed use of the island every single year,and that he could personally tell the Council about the thousands of people that went out with him to the island. Jabbour indicated they put those docks in there so people could enjoy the$7 million investment. In addition,the Water Patrol responds and uses those docks. Jabbour stated they have to be a floating dock because as the water goes up or down,the dock needs to be at a certain height. Jabbour noted the docks are identical to the dock the sheriff put out. Jabbour stated it amazes him that Orono,the richest city in the five-state area,is having a hiccup over a measly$8,000. Jabbour stated it is unfortunate the City does not feel they owe it to the veterans. Mayor Walsh noted there is a five minute limit on public comments and that he would like that limit to apply to everybody. Jabbour stated he would strongly encourage the City Council to reverse their decision on the docks and move on like life never missed a beat. Jabbour stated he cannot imagine the City begging for$8,000 when they had a$635,000 surplus in the budget last year. Jay Nygard, 1386 Rest Point Road,stated he is a lifetime resident of Orono and that he has served on the City Council,on the Planning Commission,and served in the Navy. Nygard stated he is ashamed and that he cannot believe what this has come to. Nygard stated he could go in depth about it,but that the City Council will be here for a few years leading the community and that they have to be able to think ahead and know what they are actually voting on. Nygard stated they are following a guy who has been backpedaling for a week and saying stuff that is not true. Nygard stated that is not what they came here to do. Page 2 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. PUBLIC COMMENTS(continued) Nygard noted the decision will not affect any of the Council since none of them are veterans. Nygard stated there are approximately 8,000 people in Orono,which amounts to a dollar a person per year. Nygard stated he would authorize the City Council to raise his taxes a dollar a year to help pay for the docks. Bob Brown, 5453 Point Road,Mound,stated as a past Council member,he knows the Council can move items around on the agenda and that he would ask that they move Item No. 17 up on the agenda. Brown stated some of the veterans are pretty elderly and that they should not be kept waiting until the end of the meeting. Walsh moved,Printup seconded,to set Item No. 17 as the next agenda item. VOTE: Ayes 5, Nays 0. CITY ADMINISTRATOR'S REPORT 17. BIG ISLAND DOCK PARTNERSHIP ANNOUNCEMENT Dean Acheman,Rosemount,stated he was involved with the original veterans' board of governors and that he was involved with the sale of the island. At the time of the sale,the veterans had other interested parties. Acheman stated what went on at that time was very impressive and that the veterans,the City of Orono,different legislators,and the Minnehaha Watershed District all came together to come up with an agreement where the island would be accessible to the veterans for the long-term and that the accessibility would be safe and easy. As a result,the veterans quickly turned their attention to the offer from the City and the veterans sold the island. Acheman noted there was a state statute in place that said once the sale was made,the money would go into an irrevocable trust,a new board would be formed to oversee that,and that the money would be disbursed for veterans' projects. The$5.3 million that was granted is still in that fund. In the meantime, the veterans have granted$1.6 million to state projects around the State of Minnesota in support of veterans. Acheman stated he is very proud of what happened. Acheman stated for the past 11 years,Gabriel Jabbour has attended their V4V meetings and that he has given them periodic updates on what is happening with the island. Acheman noted in 2007 through 2009 a plan was put in place addressing ADA compliance. Acheman stated he was amazed at what happened in the meeting two weeks ago and that he could not believe that a motion was made to remove the docks and sell them. Acheman stated that is the wrong thing to do and is going backwards on accessibility. Acheman noted he was part of the V4V Trust Fund and that they organized just a few months ago a trip for 36 veterans, 18 of them World War II veterans,to go out to the island and have lunch. Acheman stated the veterans really enjoyed it. Acheman stated he wants the Council to rethink the action that was taken and put it on a course where the veterans can expect safe and easy accessibility as well as to keep the commitment made to the veterans. Walsh thanked him for his service. Page 3 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. 17. BIG ISLAND DOCK PARTNERSHIP ANNOUNCEMENT(continued) Mike McElhaney,Maple Plain,stated he is here tonight on behalf of the Commissioner of the Department of Veteran Affairs and that he is here to read a letter from him. "Dear Members of the Orono City Council. This letter is in reference to Minnesota Veterans for Veterans efforts and the retention of the big island docks. It has been brought to my attention that a generous donor has come forward with an offer to cover the incurred costs involved in putting in and removing the docks for the coming season. The docks have been essential in enabling Minnesota veterans and their families to share in the beauty of Big Island. The core of my concern remains with the necessity of adequate accessibility for our veterans who need assistance due to mobility issues. Hopefully this new financial support will allow sufficient time and resources for an in depth study to find ways to make the docks and Big Island accessible to all Minnesotans. Big Island is a crown jewel of Lake Minnetonka and a recreational destination for thousands of people in the region. As such,all citizens and communities that enjoy all the island has to offer should be encouraged to contribute and continue to support the increased costs that are being incurred by the City of Orono. After almost nine years of use,disabled veterans should not be the victims of any operational cost in the scope of things that are so minimal. Finally,I would be supportive of a joint venture that enables all citizens of Minnesota to enjoy and preserve the beauty of our lakes and,in particular,Big Island on Lake Minnetonka. Sincerely signed Larry Shellito,Commissioner of the Minnesota Department of Veterans Affairs." Van Erickson noted he sent the Mayor and Council an email this afternoon and that he would like to read it so everyone would have a chance to hear it. Erickson stated he is here on behalf of his father-in-law, Bill Lurton,who donated property which is now the dog park just west of here. "As a long-term resident of Orono and to honor the memory of my wife,I gifted 49 acres of land to Orono for use as a passive park. A short while after making this gift numerous years ago,part of the property was condemned by MN/DOT. Subsequently,I modified the gift covenant to allow the City of Orono to utilize some of the proceeds from the condemnation for a portion of the purchase of Big Island Park. I worked with Jim White and Gabriel Jabbour,who were both very honest and upfront and made sure that I was totally in agreement with designating where these proceeds were going,which was in excess of a million dollars. I was then and am now supportive of the City's actions to purchase Big Island with the help of the condemnation money. As a major contributor in the purchase of Big Island,I was excited in 2006 that the Big Island Park would be open and available to all people. As a veteran myself,I was excited that the veterans will still be able to access and enjoy the park. If the docks were not there,I would not be able to access the park myself nor many of my family members who live in and around the Lake Minnetonka area. I cannot imagine too many veterans or people in general going to Big Island if the docks were not there. The docks and the accessibility they bring to all the citizens are one of the main reasons I agreed to have the condemnation money from my wife's park used to help purchase Big Island Park. The other purpose for me being here tonight is at the last City Council meeting Mayor Walsh said that my father-in-law had threatened to sue the City. To set the record straight, I have never sued the City of Orono or threatened to sue the City of Orono,and I do not appreciate being mischaracterized for doing so. Page 4 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. 17. BIG ISLAND DOCK PARTNERSHIP ANNOUNCEMENT(continued) The only thing that I was upset with was the way the City of Orono had treated Susan E.Lurton Park and not taken of it in the early years. It took several meetings with the Orono city employees and getting Mayor McMillan and Gabriel Jabbour to get things corrected. Our family gratefully appreciates all that Mayor McMillan,Gabriel Jabbour and all the other city employees have done in helping to make the Susan E.Lurton Park what it is today. My wife loved animals and she would be very happy to see the park being used as a dog park. So I want to thank each of you responsible for that becoming a dog park today,but I also needed everyone to hear this. I sat in each of those meetings with Gabriel Jabbour,Jim White,Barb Peterson,and my father-in- law. The whole thing was that it was always going to be open and accessible to all people. So to hear what was said in the last meeting was very upsetting. Ross McGlassan,Tonka Bay,stated he is a Vietnam veteran,served seven years on the Minnetonka School Board,served on the LMCD for three years,worked on the Minnehaha during its restorarion and was its first captain. McGlassan stated they held many,many successful events out at the campground and that he thoroughly enjoyed that. McGlassan stated he is also one of the founders and past presidents of the Lake Minnetonka Rotary Club. When the Rotary Club was formed,a commitment was made that the differentiator of our club would be the stewardship of Lake Minnetonka. McGlassan stated the first thing they did was they got a law passed outlining phosphate fertilizer from running into the lake. McGlassan stated he then met with former City Administrator Ron Morse where the Rotary Club offered to build an ADA adaptable asphalt trail up the hill from the end of the dock. McGlassan stated it is one thing to have a dock there,but if it simply stops at a pile of sand,wheelchairs cannot make it through. McGlassan stated from the beginning they were thinking forward about a11 the possibiliries that could happen out there. McGlassan stated little did they expect that they would be put into a negative position by the City Council. McGlassan stated they are all constituents of the lake and that he would like to thank the City of Orono for assuming the responsibility for being the owner. McGlassan encouraged the City Council to find a solution to this,noting there are multiple groups of people that can help come up with a viable,long-term solution to protect this most precious asset. Bill Cochrane,Eden Prairie,stated he was born and raised in this part of the country and that he srill has extended family in Orono. Cochrane noted his brother-in-law just recently moved away but that he still has friends on the lake. Cochrane stated he and a grade school friend were drafted after graduating from college and that when they were younger,they would go to Big Island in the wintertime. Cochrane commented it is a special spot for him. Cochrane noted he is the vice chair for the Veterans for Veterans Trust Fund and also the senior hospital representative at the VA Hospital. Cochrane indicated he has put in approximately 7,500 hours of service time there. Page 5 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. 17. BIG ISLAND DOCK PARTNERSHIP ANNOUNCEMENT(continued) Cochrane stated the action that was taken at the last City Council meeting was mind boggling and that what came out of that last meeting was kind of jaw dropping. Cochrane stated in his view the Council and the mayor acted in a manner where they did not give a lot of thought to what they were doing. Cochrane stated it was pretty immediate the way it went down. Cochrane stated in the scheme of life it is pretty simple and that for every action there is a reaction. Cochrane stated in his view during the past two weeks the Council got a good sense of the reaction. Cochrane stated he feels very strongly that the City Council needs to restore the maintenance fees of putting the docks in and out and that it needs to stay a line item in the City's budget. Cochrane stated the City should not be relying on private donations for that since it is an integral part of the community. Cochrane stated he would like to see his fellow veterans and especially people with disabilities be able to use that park. Willie Pargo stated he has been listening to people speak about the convenience of the docks at Big Island. Pargo questioned the liability for the City of Orono if someone got hurt on that island. Pargo noted one life helicopter ride would probably cost the price of those docks and that he would ask the Council to rescind the order and replace the docks. Brad Erickson,2160 West Wayzata Boulevard,noted that he owns the Orono service station and that his late father served during the Cuban missile crisis. Erickson stated what it boils down to is the City made a deal with the veterans prior to this City Council to keep access open in perpetuity. The City last year spent$150,000 to$160,000 to put the fence around the dog park,which indicates to him that dogs are important to the City. Erickson stated having heard what he has heard already tonight,he believes the Council is moving in the right direction already,but that he just wants to say that a deal is a deal with the veterans. The veterans held up their end of the agreement and that it probably is not legal to let them down at this point. If that were even possible,there would be a stain on the City as far as whether the City cares more about dogs and taking care of dogs than the veterans. Erickson stated he dcesn't think so and that he would really urge the Council to reconsider. Erickson stated he realizes there are other problems with vandalism and such but that they should put on their problem solving hats. Erickson stated the City Council does work for these people whether they are Orono citizens or not and that they just have to figure it out. Bob Brown,Mound,asked whether the Mayor would like to keep the discussion going or whether they would like to vote on it now. Walsh indicated he will let the veterans go for as long as they would like to go. Brown stated the veterans were part of an organization back in 1992 to take over the maintenance of Big Island Park. With the help of Mr.Jabbour,the veterans took care of the island while it was a veterans camp. Brown indicated he has the City of Orono Nature Management Plan and on Page 26 it says,sites and facilities management goal,improve access to mobility within the park. Objective,provide docks and landing areas to allow for the public access by boats. Brown noted that is one of the goals outlined in Orono's plan. Page 6 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. 17. BIG ISLAND DOCK PARTNERSHIP ANNOUNCEMENT(continued) On page 37 it says the City should establish a budget for ongoing maintenance and improvement of the Big Island Natural Nature Park. Brown stated it is his understanding that the City of Orono has done that up until now when they voted to take away the docks. Brown noted Mr. Crosby did not raise his hand when they asked if anyone was a veteran but that it is his understanding he served in the fire department. Brown thanked him for his service. Brown stated he has his whole honor guard here and that there are weekly funerals where they are burying his fellow veterans. Brown stated whenever they present a flag,it means another veteran is gone. In past years they had the ability to take veterans out to the island and that once a year they clean the whole island. Brown stated the Council needs to decide if they want the veterans to continue to visit the island. Brown stated the$8,000 is minimal when they are serving people who served them. Brown stated he would ask someone on the Council to make a motion to reconsider their previous action. Pam Sawchuk,4105 Watertown Road,stated she read in the Pioneer what was going on and she could not believe it. Sawchuk stated there are a lot of gray areas in life,but when it comes to our veterans that put their lives on the line,they should not worry about$8,000. Sawchuk stated people owe them some beauty for the hell they likely witnessed. Sawchuk questioned how this could be one of the richest communities in not only Minnesota but in the country and they cannot come up with$8,000 for the veterans. Len Freeman, 190 Cygnet Place,stated he has lived here for 19 years and that he heard and read about this. Freeman stated as a resident of Orono,it makes sense to come up with the money to support the veterans unless there are some other serious issues going on. Todd Kemery,Veterans Drive,Minneapolis,stated he is the vice president of the Paralyzed Veterans of America,Minnesota Chapter, as well as the advocacy director and ADA coordinator. Kemery stated after reading the City's management plan,he applauds the City's design to include those people with mobility issues and the disabled. Kemery stated there are probably other people who will be more articulate in expressing the needs and desires of the veterans,but that the history of the Paralyzed Veterans includes not only advocating for disabled veterans and all veterans but that they are in a unique position in being part of the disability community in Orono. Kemery stated he has been asked to lend a presence and a voice to some of the most vulnerable of our population. It is the City Council's responsibility and challenge to be inclusive of those that need that extra bit of help. The disabled cannot do anything unless there is an agreement that there are things that would make it easier for the disabled segment of the population. Kemery stated he would challenge the Council to include accessibility at the front end with the management of Big Island. Dennis Libby, 1000 Heritage Lane,stated he has spent about 20 years living on Lake Minnetonka and am an avid boater and a hobby historian. Libby indicated he has spent countless hours studying the history of Big Island amusement park and the veterans park. Libby stated periodically he has been here at odds with the City Council and that once again he finds himself at odds with a very sensitive subject matter. Libby stated in his officership for the Foxhill Ownerships Association has been partially responsible for the fourth or fifth largest commercial dock on Page 7 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. 17. BIG ISLAND DOCK PARTNERSHIP ANNOUNCEMENT(continued) the lake. The dock system is seasonal and has to be brought in and out every year. The homeowners association got a little tired of some of the costs and also the maintenance. Libby stated as part of the resolution of their dock problems,the homeowners association purchased maintenance-free,low cost,low upkeep dock systems to replace the dock that was more expensive. Libby stated in the City's vision and planning,they should think about accommodating the Minnehaha, which is a historical land cruiser that went back and forth to Big Island. The boat originally took 2500 people per trip to Big Island. Libby stated the Minnehaha is a wonderful historic remnant of Orono's history. Libby stated to have a dock that large and impractical and expensive is foolish. If the dock has value, even half the value that it had when it was purchased approximately ten years ago,the Council's original idea of looking at the value of that and possibly selling it is a creative alternative. Libby stated the City needs to look at something that services the community and also allows the veterans easy access. Libby stated the City should look at the revenue that they have and think about it in this collective effort that they are trying to put together. Libby stated the City should find something that is practical and economical that works better both for the city budget and the people who enjoy and use the park. Lindsay Freeman, 190 Cygnet Place,stated she wants to be a resident of a City who is kind and compassionate and shares their assets with others. Freeman stated the veterans have fought for us and that anything they can do to make Big Island more accessible to them is the kind of City she wants to be a part of. Cindy McDonnell, 1420 Baldur Park Road,stated she was shocked and frankly embanassed at what has transpired in Orono with this decision. McDonnell stated they broke with standard protocol on this, violated the Comprehensive Plan,broke the agreement with the vets,and did not receive public input on this issue despite being advised by the City Administrator that that was part of the protocol. McDonnel stated that is not what the citizens expect from their elected leaders and they do not expect them to be so myopic and short-sighted in their decision making. McDonnell stated in the future it is her hope that the Council takes the time to think fully about these issues and follow established protocol before making willy-nilly decisions such as removing access to a public park for large groups of people. This park is used by many families,seniors,and Orono residents in addition to the vets who have served our country so valiantly. McDonnell stated she does not see any good reason why the Council cannot re-establish the$8,000 to put the docks in and out every year since it is paltry in comparison to some of the other costs the City has. Brad McDonnell, 1420 Baldur Park Road,stated he served six years in the Navy and that a veteran's service is a very personal thing and that they all have their challenges. Each veteran went through different challenges and experiences but they all have a common bond for our brothers and sisters. McDonnell stated when he goes to Big Island with his family,he is able to get in touch with himself and nature. A lot of the veterans do not have the money to get there but they can get there if there is a dock. McDonnell stated they cannot have access to the island without a dock and that he would ask the Council to please rethink their decision and let their children enjoy this treasure. Page 8 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. 17. BIG ISLAND DOCK PARTNERSHIP ANNOLTNCEMENT(continued) Joe Wytovick,Bloomington,stated he read in the paper about the last Council meeting that one of the Council Members insinuated that it would be alright for the veterans to jump off the boat onto the shore. Wytovick stated the only place he knows where servicemen jumped off a boat was at Normandy and Omaha Beaches and that half of them got killed. Wytovick stated he just wants to remind the Council of the veterans with this forget-me-not flower. Wytovick requested the Council put their forget-me-not where they can see it every day just so they can remember what the veterans have done for this country and them individually. Doug Schmidt, 1475 Shoreline Drive,stated he is not a veteran but he appreciates all their great service. Schmidt stated he uses the docks and the island for pleasure and he would like to propose the City add two more docks. Schmidt commented going to Big Island is similar to going to the Apostle Islands. Michael Mason, Spring Park,stated a frequent term that is used is thank you for your service. These are the words that people recognize veterans with. Mason stated when he grew up,he learned that actions speak louder than words. Mason stated having said that,he would like to thank the Council for their service but that they should do it with actions that honor the veterans in the community. Lloyd Day,25 Pleasant Avenue,Tonka Bay,stated he is here tonight representing Clarence Cloffer,Post 259,Shorewood. Day stated what the audience is trying to do tonight is gain some opporiunity. Day stated he works at the American Legion and that he has an opportunity to do some wonderful things to help the veterans that come through the door. Day stated a large number of veterans suffer from TBI and PTSD and that one of the best things to do for them is to get them outdoors. Day stated they need to have this opportunity for the veterans to utilize Big Island and that these docks will allow that. Day stated the docks are not exclusive to the Minnehaha and that this is about veterans and the opportunity to give veterans what they need. John Kakenaut,Brooklyn Park,stated he grew up in Minnetonka and was on the lake all the time as a child. Kakenaut stated he wants to say that he appreciates everyone bringing this up and that it was a heck of a hornet's nest that was stirred but it is good it is being discussed. Kakenaut stated in his view the Council is not antimilitary by any chance and that he knows the mayor has hired veterans,has a veteran for a partner,and takes it seriously with the Wounded Warriors. Kakenaut stated he is sorry the Council is getting a lot of flack but that he knows they will do the right thing. Michael Stedman,Coldwell Banker,stated in 2006,he had the privilege and honor of representing Dean Acheman,Bill Ruly and the veterans of the state to help them sell Big Island. Their main goal at the time was to help the GIs as they came back with health care needs. Stedman stated as was referenced by Gabriel Jabbour,the veterans had a very solid transaction to sell the island but they took a step back and worked with the City and Gen Olson and the state to do the right thing. Stedman stated it was a win/win situation and they were able to keep it as a park. Stedman requested the Council do the right thing. Walsh stated he would like to thank all the veterans here tonight and that it is nice to see such a great group of people. Walsh stated as a six-year-old he received his grandfather's flag and that it sits in his house every single day. Walsh stated he also had a relative who fought in the Revolutionary War. Walsh stated he takes the veterans and their service very seriously. Page 9 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. 17. BIG ISLAND DOCK PARTNERSHIP ANNOUNCEMENT(continued) Walsh stated the intent was never to have a dock at Big Island and that the whole issue has never been a financial issue. Walsh stated it has never been about the$8,000 and that he would like to set the record straight on that matter. Walsh stated he does applaud the Veterans Affairs gentleman and that he completely agrees with him on getting a partnership moving forward. Walsh stated the whole issue has been more of a philosophical issue and that it is not a right or wrong question. Walsh stated what has been proven here today by all the different people that are here from the different parts of the community is that Big Island is a community asset and it needs to be inclusive of everybody. Walsh stated the philosophical part of that to him is it screams for a public-private partnership and that the intent was to see if there are people who want to give back to the community to celebrate this community asset. Walsh stated he has more people knocking down his door from different parts of the community who want to be involved in this and to give back. Walsh stated the second part that he wanted to talk about with the Council is looking back at that 2007 plan. What that plan talks about as well is having community participation and trying to figure out how to best use this island as a community.Walsh stated he is proposing to the Council that they form a Big Island committee of people from the City Council,the Planning Commission,the Park Commission,and as many people from the general public that want to be involved in order to figure out how we can make this island more accessible and usable to the public. Walsh stated over the past ten years what they have seen is vandalism,which has resulted in the veterans having fewer things to enjoy. Crosby commented there is also missing people and that he partook in a search on Big Island that took over eight hours. Crosby stated the thought was that she was probably murdered but she was finally found. Crosby stated at night the island can propose a problem,but that he agrees with what the mayor is saying. Walsh stated this is really about getting the community back involved in Big Island and figuring out whether these are appropriate docks,are there too few,too many docks. Walsh stated he is not a dock expert,and if you look back at the minutes in 2008,the docks were purposely configured for the Minnehaha. Walsh stated he wants to get as many people from the public involved as possible. Walsh stated he also wants to see how they can bring more visibility and attention to this island. Walsh stated he does not have all the answers on how to do that,which is why he would like to get this group together to figure out different ideas and how to implement them and how to fund them. Walsh stated there is a lot of people who would like to give back and that money has never been an issue.Walsh stated the issue is bringing it to the public since it is a public island and to let the public back into it. Bob Brown stated he is the one who referred to the City of Orono Big Island Nature Management Plan, which says that the City should establish a budget for ongoing maintenance and improvements. Brown asked whether the Council has already voted to remove the docks. Walsh indicated the Council voted to remove the docks and then they also talked about a public-private partnership after that. Brown stated he understands that but that the Council has already voted to have them removed. Brown stated the plan refers to ongoing maintenance and improvements of the island. The plan also says to Page 10 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. 17. BIG ISLAND DOCK PARTNERSHIP ANNOUNCEMENT(continued) provide docks and landing areas to allow for public access. Brown stated voting to remove them is not ongoing maintenance or improvement. Brown noted the Mayor said it is not about the$8,000. Brown stated the docks are being stored for free and that the only maintenance the City has to do is put the docks in and take them out. After that there are other people who take care of the island. Brown asked why the Council has already voted to remove the docks instead of saying they will look into things if it is not the $8,000. Gabriel Jabbour,985 Tonkawa Road,stated the City might go backwards if everyone starts sending the City the bills of what the private sector has been doing on the island. Jabbour stated the public sector is paying hardly any money for Big Island. Jabbour noted the LMA sends a crew out there to clean twice a year and they are a hired crew. Jabbour stated he takes them out to the island and that they bring all the garbage back,which is two days' worth of time. Jabbour indicated he also took his tractor out there to mow the lawn for many years. Jabbour stated at the time the docks were purchased,the City did make sure the dock accommodated the Minnehaha in case public transportation was needed. Jabbour stated his boat requires those docks and that he strongly disagrees with Mr.Libby. Jabbour indicated he owns the most docks in Minnetonka and that he does not need a dock but the veterans need a dock. Jabbour stated he applauds the Council for trying to do a mid-course correction,but that there was not a lot of thought about who uses the docks prior to the Council's decision. The Minnetonka Yacht Club utilizes the docks. Minnetonka Portable Dredging has donated its labor. Jabbour noted he has sent the Council photographs of some of the work being done on the island. Jabbour commented Aaron Printup has been on the Council for six years and Mayor Walsh has been on the Council for three years. Jabbour noted he reported to the Council on Big Island and that there were never any questions. Jabbour stated he is now dumbfounded by the Council. Jabbour stated he will be more than happy as long as he owns property on Lake Minnetonka to store the docks for free. The docks are located strategically next to the dredging company and are identical to the docks the sheriff's department just put in. Jabbour commented he has never ever gone to the moon,he has never ever charged a dollar or have gotten reimbursed one dollar for his work. Jabbour cautioned the Council to be careful since they might have to provide inside trails compliant with ADA and they might end up finding they need four more docks. Jabbour stated he knows the Council would like to go to docks made for a residence,but if that is the case,anytime someone needs decking,they can go out to Big Island get it. Jabbour stated he owns property on the island and that he is more experienced than anybody about what happens on the Island. Jabbour noted both Council Member Printup and Mayor Walsh voted for the sheriff's dock. Jabbour stated they tried to figure out how to get an ambulance to roll things in and out from the dock. Jabbour stated these are not fancy docks but are simple commercial docks. Jabbour stated he would challenge the Council to see if there is zero maintenance in ten years with a different type of dock. Jabbour stated a private/public partnership has existed and is what Orono was founded on. This island was given to the veterans by a gentleman that also gave Three Rivers 70-plus acres that is now a wildlife refuge Jabbour stated the private-public partnership is nothing new but that the Council had better be careful because they might have to come up with a lot more money. Page 11 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. 17. BIG ISLAND DOCK PARTNERSHIP ANNOUNCEMENT(continued) Walsh thanked Gabriel Jabbour for his past service to the City and that what he has said underscores his point about having a committee talk about what is appropriate. Walsh stated he is not in the dock business and Dennis Libby is not in the dock business. Walsh stated this is about having the conversation about Big Island,which has been missing in the past. Walsh stated he would like to get a group together to talk about it and then document the conversation about what to do moving forward. Jay Nygard stated to summarize,Gabriel Jabbour is absolutely right about putting a residential dock out there. In addition,the decks are going to be disappearing left and right and the City will never have any idea who took them. Nygard stated the current docks are the best solution. Nygazd stated what he has heard tonight is that everybody is frustrated with the Council for acting without thinking first. Nygard stated the Council can go ahead and figure out what might work better but that they shouldn't pull the rug out from under these people. Nygard noted these people made a commitment to this country and gave their word. The City of Orono gave its word to these people and it is time for the Council to make a motion to rescind what they did,which will honor your word,and then the City can work on a better change. Nygazd stated he would ask the Council to make a motion to do it and that they can do whatever else they want to,but the docks are the crux of the situation. Walsh commented that was preaching to the choir as well and that he appreciates the grandstanding a little bit there. Walsh noted he has already said the docks are going to stay there. Walsh stated the issue is what is the appropriate dock and that this has been a good conversation. Nygard asked if he is saying that the City is not going to stand up to their agreement. Walsh stated he does not understand what he is referring to. Bob Brown asked for some clarification since there appears to be some confusion. Brown asked if the City has removed the current docks or if they are going to keep the current docks. Walsh stated that was the discussion about whether they are the appropriate docks. Brown asked if they are going to keep the current docks if this is not resolved. Brown stated the current docks are really nice docks. Brown asked why this is an issue and why they are thinking of removing the docks. Walsh stated the docks are not there right now since this is winter. Walsh stated they are not talking about not putting the docks there and that he has already made that statement. Walsh stated it is more about the conversation if these are the appropriate docks. Walsh stated if you go back and read the minutes from 2008,the purpose of the docks was to accommodate the Minnehaha;and if they are the appropriate docks,then they stay. Walsh stated that's why he wants to put together a committee to discuss it. Jabbour stated it is painfully obvious that they have already made up their mind and that there is a plan that has been articulated by Mr. Libby. Jabbour stated he heard it a few days ago at the LMA and that in his view they may have violated the open meeting law by doing that. Jabbour stated he does not understand it. Life went wonderful for 11 years. Jabbour noted he was the custodian of the island during Page 12 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. 17. BIG ISLAND DOCK PARTNERSHIP ANNOUNCEMENT(continued) that time and none of this was a crisis. Jabbour stated the Council should just admit they were wrong and then leave it alone. Walsh stated he would like to bring this item back to the Council. Todd Kemery,Paralyzed Veterans of America,stated the reason he is here is the accessibility factor. Kemery asked whether there will still be accessibility to the island while the committee is being formed. Walsh indicated there will be. Seals stated many people have reached out to her and shared powerful stories about being a veteran. Seals stated she does not mean to speak for the Council or the Mayor,but that it never came to their minds that they should take away the docks to prevent access for the veterans. Seals stated she has had a lot of phone calls and emails and lots of great conversations. Seals stated from listening to everyone tonight,it sounds like a solution would be to keep the docks where they are,and then the second part would be to have a committee to say what else can we do to make it more accessible. Seals stated the reason why she is recommending this is because she can see there are many joys associated with the island but that the Council was thinking of all the challenges. Seals stated it's hard to manage since it's in the middle of the lake and that the docks need to be stored somewhere. Seals stated the Council was thinking there has to be a better way. Seals stated maybe the solution is to keep the docks right now and then the second part would be to enact a committee from the community that includes many from the room. Pam Sawchuk stated she has the Pioneer article right here. Sawchuk asked whether the Mayor is going to ask for a retraction or ask them to clarify and amend what they have reported. Walsh indicated he will be because they never called any of the Council Members. Sawchuk stated the article says they are specifically being removed because of the costs. Walsh stated the intent all along was what Council Member Seal has said. Bob Brown stated that was a great suggestion and would eliminate the idea that any of us have that the docks are going to be removed. Brown stated the Council's other motion was to remove the docks. Walsh stated the intent was wrong and they will correct that. Walsh stated the Council would like some time to make three motions. Walsh stated he wants the veterans to have time to finish but that he needs time for three motions. Seals moved,Crosby seconded,to keep the current Big Island docks and to install them in the spring. VOTE: Ayes 5,Nays 0. Walsh moved,Printup seconded,to accept the private donations from the following individuals and groups: Shawn Foy,Orono resident;Michael Williams,a St.Louis Park resident;Orono Lions, Page 13 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. Richie Anderson,North Shore Marina;the Tim Stevenson family;the John Kakenaut family; and the Denny Walsh family. VOTE: Ayes 5,Nays 0. Walsh moved,Seals seconded,to create a Big Island committee consisting of inembers from the Orono City Council,the Orono Park Commission,the Orono Planning Commission,and as many people from the general public,as well as veterans,as possible to figure out how to make Big Island better and more acceptable. Printup stated he was glad to hear from a number of people on this item and that he had a good conversation with Mr.Brown. Printup stated he also spoke with Bill Anderson,who could not be here tonight,but that they went over a packet of material on the history of Big Island. Printup stated he was against the purchase of the park originally but that he will step back from that at this time since they appear to be making some pretty good progress. VOTE: Ayes 5,Nays 0. (Recess taken from 8:30 p.m.to 8:33 p.m.) PUBLIC WORKS/CITY ENGINEER REPORT *3. LONG LAKE CREEK SUBWATERSHED PARTNERSHIP—RESOLUTION NO. Printup moved,Seals seconded,to adopt RESOLUTION NO.,a ResoluNon to Partner with Other Intergovernmental Agencies to Pursue and Show Support in Pursuit of a Grant to Improve Water Quality in the Long Lake Creek Subwatershed by Studying the Impact of CARP. VOTE: Ayes 5, Nays 0. *4. SEASONAL WEIGHT RESTRICTIONS—RESOLUTION NO. Printup moved,Seals seconded,to adopt RESOLUTION NO.,a Resolution Establishing Seasonal Weight Restrictions on Orono Public City Streets. VOTE: Ayes 5,Nays 0. *5. SEWER AND WATER EXTENSION—701 DICKEY LAKE ROAD Printup moved,Seals seconded,to approve the sewer and water extensions and to waive the connection fees. VOTE: Ayes 5,Nays 0. *6. INSULATION OF THE PUBLIC WORKS BUILDING Printup moved,Seals seconded,to accept the quotation in the amount of$7,415 from Foam-It, LLC,for spray foam insulation of the Public Works building. VOTE: Ayes 5,Nays 0. Page 14 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. 7. PARK COMMISSION APPOINTMENTS—RESOLUTION NO. Walsh noted the Council interviewed three candidates before tonight's meeting for the Park Commission and that he would recommend Natalie Williams and Brian Roath be appointed as commissioners,with Beth Davis and Rick Carter being appointed as alternates. Printup moved,Dankey seconded,to adopt RESOLUTION NO.,a Resolution Designating Appointments to the Orono Parks Commission. VOTE: Ayes 5,Nays 0. (The Orono City Council recessed from 8:35 p.m.to 8:38 p.m.for the HRA meeting) PLANNING DEPARTMENT REPORT 8. #16-3814 ALEXANDER DESIGN GROUP ON BEHALF OF PETER AND MELISSA SANTRACH, 1700 BOHN'S POINT ROAD,REVISED HOUSE LOCATION—RESOLUTION NO. Sven Gustafson, Stonewood,LLC,and Kathryn Alexander,Architect,were present. Gaffron stated in April of 2016,the applicants were granted a variance to allow construction of a new residence to replace the existing residence on a lot consisting of 0.62 acres in area where 1.0 acres in area is normally required. Since that approval the applicants have made revisions to their plan to change the footprint and location of the structure to be lakeward of the average setback line. In addition,the applicants are requesting 16.70 percent structural coverage rather than the 14.99 percent originally proposed. Hardcover will remain at the previously approved percentage. The increase in structural coverage results in the need for an additional variance that was not originally applied for nor granted. In the opinion of Staff,the minor building size and location changes lakeward of the average lakeshore setback line will have a minimal impact on the lake views enjoyed by the adjacent properties. Staff does not recommend granting any approval for the increase in structural coverage pending Council action regarding the structural coverage ordinance. If Council action results in eliminating the need for a variance,no further review is necessary. If a variance is ultimately required,Staff would recommend that a new application be filed. Walsh stated he could not tell on his map if a deck is going into the 0-75 foot area. Alexander stated the whole building is behind the 75-foot line. Alexander stated to her understanding that is an elevation. Walsh stated he did not have any issues with anything else. Gustafson stated the elevation of the patio is the same as previously. Gustafson indicated the area is all raised up above grade with foundation retaining walls. Previously that area was filled in with dirt and now it will be excavated out. Page 15 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. 8. #16-3814 ALEXANDER DESIGN GROUP ON BEHALF OF PETER AND MELISSA SANTRACH, 1700 BOHN'S POINT ROAD,REVISED HOUSE LOCATION—RESOLUTION NO.(continued) Printup stated he is fine with the average lakeshore setback. Walsh noted the applicants did not request a structural coverage variance so the City Council cannot grant a variance. Gustafson noted the square footage of this house is actually smaller than what was originally approved even though the structural coverage number is higher. Dankey moved,Crosby seconded,to adopt RESOLUTION NO.,a Resolution Amending Resolution No.6613 Regarding Variances Granted for Property Located at 1700 Bohn's Point Road,File No. 16-3814. VOTE: Ayes 5,Nays 0. *9. #17-3901 MIKE DEMENGE,4380 SIXTH AVENUE NORTH,VARIANCES— RESOLUTION NO. Printup moved,Seals seconded,to adopt RESOLUTION NO.,a Resolution Approving Variances from Municipal Code 58-47 and Municipal Zoning Code Section 78-395,for the property located at 4380 Sixth Avenue Nort6,File No. 17-3901. VOTE: Ayes 5,Nays 0. � 10. DEVELOPMENT PROCESS REVIEW COMMITTEE RECOMMENDATIONS Barnhart stated the Development Process Review committee has met twice since the beginning of the year. This committee is comprised of builders,users of City services,staff,and two Council Members. The goal of the committee is to review the City's processes to see whether any improvements can be made. Some of the recommended changes can be implemented immediately and some changes will require an amendment to the City Code. Most of the changes to City Code require a review by the Planning Commission and a public hearing. The Committee is recommending the following: 1. Removal of the escrow agreement for projects that do not include a new building or an addition to a building. The escrow agreement basically guarantees that the builder is going to pay their bills , as part of their permit. Staff does not suggest removing the protection between buyers and sellers found in Section 58-77. 2. Removal of the requirement for an escrow deposit. Staff does not recommend this change since this is an effective tool in completing and maintaining erosion control issues and providing the as- built surveys and other documentation,as well as payment of pass-through engineering and legal fees,to the benefit of the general taxpayer. 3. Modification to what is required in surveys or,at a minimum,when surveys are required. To meet the Committee goals, Staff recommends amendment to Section 86-68 which stipulates when a survey or site plan must be completed by a person registered by the state of Minnesota. Page 16 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. 10. DEVELOPMENT PROCESS REVIEW COMMITTEE RECOMMENDATIONS (continued) 4. The Committee further recommends the City's wetland management rules align with the Watershed DistricYs. One of the main differences is the City requires an additional setback from the Watershed's buffer. This additional setback is intended to allow people to walk in the area between the house and the wetland buffer area without impacting the buffer. This will require a modification to the wetlands protection ordinance. 5. The committee also recommends modification of where and when a wetland delineation is required to be more consistent with the Watershed District. With authorization,this will be handled at the same time as the wetland regulations above. 6. The Committee recommends modification of the permit forms,reducing the length to one page. Most of the length can be amibuted to information provided to the applicant,but Staff will work to reduce the length of the document. This does not require council authorization. Barnhart noted in 2016,the City Council adopted an ordinance that allowed Staff to certify a boundary line adjustrnent but only if both lots meet the lot area requirements of the district. The committee suggested reviewing that ordinance. Walsh stated this is about streamlining the process to make it easier. Barnhart noted the Council will see all of these requests again in the future and that Staff is looking for authorization of Staff resources to look into this further and to take these items to the Planning Commission. Crosby asked for clarification on the lot line issue. Barnhart stated a lot line rearrangement is not a subdivision by state statute since a new lot is not being created. Orono's Code currently reads that if both lots meet the minimum lot size requirements and lot frontage requirements,then Staff can certify that. Staff is finding,however,that there are quite a number of lots that do not meet the minimum lot requirements so they have to go through the variance process. The committee is suggesting that the language requiring that both lots meet the lot area requirements. Seals asked if this will be helpful to Staff to clean some of this up. Barnhart stated regardless of the community,every ordinance was established to correct or respond to a problem,and Orono is no different. Orono has requirements for surveys,wetland delineations,and buffers that the City has. Barnhart stated what this review is doing is pulling some of those regulations back,but at the same time,by pulling those regulations back,the City might be opening themselves up to those same issues that originally cause the language to be drafted. Walsh stated the philosophical issue is whether the City is guiding their code for the 5 percent who do not do things correctly or the 95 percent who are doing it correctly. Walsh stated he would prefer to guide the City's code to the 95 percent and that he would rather deal with the five percent differently. Walsh stated the objective is to make it easier for people who own small lots,which is something they talked about while campaigning. Page 17 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. 10. DEVELOPMENT PROCESS REVIEW COMMITTEE RECOMMENDATIONS (continued) Gaffron stated the City's Code has evolved over the past 60 years and it has resulted in a piling on over the years. Gaffron stated it is good to take a look at it and see where changes can be made without having unexpected impacts. Printup moved,Crosby seconded,to refer the recommendations of the Development Process Review Committee to the Planning Commission. VOTE: Ayes 5,Nays 0. 11. ONLINE PERMITTING SOFTWARE Barnhart stated one of the main goals of the City Council is to improve service to residents and contracts as part of the building and zoning activities. A well developed software system would be an opportunity to streamline the City's processes and improve communication between the public and City Staff. Staff has solicited information and quotes related to upgrading the City's permitting software to include the following services and features: - Online submittal of permits and land use applications - Online approval of certain permits - Submitted gatekeeping for permits and applications - Permit numbering and land use numbering system - Integrated property ownership records - Customizable reporting - Online status review for applicants Of the three, Staff would recommend Citizen Serve. This system can be expanded to include permitting and tracking of all permits,including Public Works,the dog park,special events,etc. Barnhart stated if the City does shift to an online building permit process,some changes may need to be made to the City's online payment system. Most of these programs do not correspond with PSN,the City's system provider,without additional costs. With Council support,Staff may review the City's needs with its current provider to determine if changes should be made. Barnhart noted this item was not budgeted for this year but that there are funds available in the Equipment Outlay Fund. Ongoing costs would come from a budgeted line item. A portion of the costs could be recouped through surcharges on permits or a convenience charge via online payments. Staff would recommend Citizen Serve since they are a more mature system, is more tailored to the City's needs,and had previously worked out the bugs in their system more completely. Seals asked what would happen if there is a homeowner that is computer illiterate. Barnhart indicated Staff would still accept paper permits but those would need to be entered into the system electronically at some point. Barnhart stated Staff is also looking at having a kiosk available at City Hall that people can use. Seals commented over time she anticipates people will see the value of doing it electronically. Page 18 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. 11. ONLINE PERMITTING SOFTWARE(continued) Walsh stated in Orono there are hundreds of permits applied for each year for windows,siding,roofs,etc., and whether it is the builder or the homeowner,the person will no longer need to come to the City to obtain a permit. Walsh stated a number of cities already have a system like this. Seals stated even if the builders were the main users of the system,it still would be an improvement. Crosby moved,Seals seconded,to approve the hiring of Citizen Serve to provide online permitting services. VOTE: Ayes 5,Nays 0. *12. AUTHORIZATION: TEXT AMENDMENT REGARDING CUP REPEAL Printup moved,Seals seconded,to refer this matter to the Planning Commission. VOTE: Ayes 5, Nays 0. MAYOR/COUNCIL REPORT Seals reported the Code Committee met and discussed some of the changes that were discussed this evening. Seals stated in her view the changes will help streamline the process and make it easier for the residents. Seals stated she also attended the Planning Commission meeting and that it is amazing the amount of time and thought the Planning Commissioners put into the applications. Seals stated she received lots of phone calls this week from residents and veterans and that all of the phone calls were very pleasant and nice with lots of ideas. Seals stated it is good for people to reach out and that she and Bob Brown had a very solution minded discussion. Seals stated her hope is that people can hear that those are the kind of conversations that drive more solutions and ideas than the more confrontational discussions. Printup welcomed Interim City Administrator poug Reeder to the City of Orono. Printup thanked everyone who showed up this evening for the Big Island discussion. Printup stated in her view positive things came of it and that he would like to thank Bill Anderson again for his kindness and friendship. Printup noted Bill Anderson was on the Board of Governors for the Veterans Camp and that he provided a good historical perspective. Crosby stated he would like to thank all the veterans that showed up tonight and that he deeply respects their service. Crosby stated he would like to congratulate Dave Benson for being named Man of the Year by the City of Long Lake. Mr. Benson has been a terrific principal for a number of years. Crosby commented that is another feather in Orono School District's cap. Crosby stated he would also like to congratulate the Orono Dance Team,who made it to state competition. Crosby stated the girls did a fabulous job. Crosby stated he would also like to congratulate Mound Westonka and Wayzata for making it to state. Page 19 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. MAYOR/COUNCIL REPORT(continued) Dankey commented she has had a very exciting couple of weeks and that she is trying to learn as much as possible. Walsh stated having the discussion tonight showed there is a lot of interest in wanting to remake the island and see what can be done with it. Walsh stated he already has a number of veterans groups that have said they want to be a part of it,which is the important thing that came out of all of this. Walsh stated the only part he was disappointed with was that the newspapers published a lot of stories but they never called the City for their side. Walsh reported he also met with the Communications Committee on the newsletter,which should be coming out shortly. Walsh stated he attended Dennis Libby's 70�'birthday and that it was fun to go out there and see all of his veteran friends. Walsh reported they welcomed Girl Scout Troop 19098 to City Hall today and they were given a tour of City Hall and the Police Department. Walsh stated they also had a mock City Council meeting,which was a lot of fun. Walsh stated he would invite any and all interested groups to do the same. Walsh stated he also attended the Lund's gand opening on Saturday with Council Member Crosby. The building looks absolutely fabulous and is now another go-to place for meeting people. Walsh stated they now have indoor seating and dining. Walsh commented it is nice to see companies in Orono beautifying their presence and investing in the community. CITY ADMINISTRATOR'S REPORT Reeder stated he appreciates being brought on board and is looking forward to working with the City Council. 13. 4`h QUARTER FINANCIAL REPORT Olson noted this is not a final report and that the auditors will be completing their final work later in March. As a result,there could be some minor changes. Current projects have revenues at 104.62 percent of budget and expenditures at 96.43 percent of budget. In net dollars,revenues are projected to exceed expenditures by$630,000. Olson noted 52 percent of the City's revenue comes from taxes and that the amount of taxes collected in 2016 is at 100.77 percent,which is a result of some interest being paid. In regard to the remainder of the General Fund revenues,licenses and permits were at 103 percent; building permits were actually slightly below budget;and mechanical permits and plumbing permits were well over budget. Other governmental revenue finished the year at 116.8 percent of budget,with a major portion of the overage being due to higher than anticipated Police State Aid. Charges for service came in at 105.6 percent,which is due to the fact that the construction related revenue lines were all over 100 percent of budget. Olson stated the City has experienced some good building activity with a few big subdivisions taking place. Page 20 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. 13. 4�"QUARTER FINANCIAL REPORT(continued) Olson noted 2016 was the second year of a rebound for the golf course and that revenues are now getting close to$200,000. Last year the golf course revenues came in at$188,000,which is a 50 percent increase in two years. Next year Staff will be increasing those revenue lines in the budget. The amount of money the City received in interest is pretty much the same as it has been in the past and will come in close to budget. In 2017,the City will likely see some improvement in that item as the economy improves and the Federal Reserve raises the interest rates. Olson noted the City is very restricted in what they can invest in,such as FDIC bonds,and that the City cannot buy stocks or anything risky. The City is able to purchase AAA municipal bonds. Olson displayed a graph depicting the City's revenues for the past five years. Olson noted the City's revenues have remained fairly consistent through the years. The overall General Fund expenditures are currently at 96.4 percent of budget. Five departments are over their expenditure budgets and will require budget adjustments. At 128.48 percent of budget,the special services department was significantly over budget,but this deparhnent is used to account for expenditures that are largely passed through to the parties that received the service. Olson noted the legal fees for 2016 were higher than normal because the City had to use a conflict prosecutor more often than usual. The City also had to pay$6,000 in jail charges to Hennepin County. The pazk budget was$1,720 over budget for the year and was in the maintenance area. All other deparhnents were either at or below budgeted amounts. As it relates to the City's investments,the City earned 2.44 percent on the bonds,which is one of the better bond rates the City has had over the last several years. Money market and operating is slightly higher due to some debt service that came due in February. The City probably has close to$2 million in money markets at the current time. Total investments are$20,181,147 versus $20,068,259 at the end of 2015. Interest earnings in 2016 went up by approximately$14,000 Walsh stated it is not like the City has$20,000,000 but it is funds collected for specific purposes. Olson stated that is correct and that approximately$4 million is in the City's Enterprise Fund and is needed to fund infrastructure going forward. The state auditor recommends a 50 percent fund balance, which means the City should have close to$4 million in reserves. Olson noted the City does have money on hand but that they will not receive another tax payment until June. Olson stated one other benefit of a good fund balance is the Aaa rating the City receives. Orono is one of only 17 cities in the country that has an Aaa rating,and one of the reasons the City receives a strong bond rating is the City's strong financial reserves. Olson stated they would not want the fund balance to decrease too much. Olson stated another requirement of the Fund Balance Policy is that the Council be informed of the City's new investments. Olson stated as the City's investments were going up,they had fewer bonds called and only had three new investments during the quarter. The Federal Home Loan Step Up is at 2.44 percent, which is the best that has been seen for quite some time. Page 21 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27,2017 7:00 o'clock p.m. 13. 4�h QUARTER FINANCIAL REPORT(continued) Olson stated Council Member Printup requested some information on vendor payments. During 2016, 711 different vendors are paid,with some of those being election judges. Overall the City paid out$9.7 million. The top 20 vendors consisted of 69 percent of all the expenditures or$6.665 million. Olson displayed a listing of the top 20 vendors and noted the$900,000 was actually security on a development. The developer wanted to provide the City with cash instead of obtaining a letter of credit. Seals asked what the Bond Trust and US Bank Wire are. Olson stated the Bond Trust Services Corp.would be the 2014 bonds,which were water,police,garage, and a refunding of the Big Island bonds. Olson stated he cannot recall what the 2010 bonds were for but that he can email that information to the Council. Olson stated he will also email the vendor information to the Council. Reeder asked what the City's budget surplus was in 2016. Olson stated it was approximately$650,000. � Walsh stated the City is going to be able to complete some road improvements this year with that money and that they will be in a good position for 2018. The City Council took no formal action on this item. *14. INTERIM CITY ADMINISTRATOR EMPLOYEE AGREEMENT Printup moved,Seals seconded,to authorize the Mayor and City Clerk to ezecute the Interim City Administrator Employment Agreement. VOTE: Ayes 5,Nays 0. *15. LICENSES/PERMITS None *16. CLAIMSBILLS Printup moved,Seals seconded,to approve payment of the All Funds Account. VOTE: Ayes 5, Nays 0. CITY ATTORNEY'S REPORT Mattick stated he had nothing to report. Page 22 of 23 MINUTES OF THE ORONO CITY COUNCIL MEETING Monday,February 27, 2017 7:00 o'clock p.m. ADJOURNMENT Printup moved, seconded,to adjourn the Orono City Council meeting at 9:58 p.m. VOTE: Ayes 5, Nays 0. ATTEST: , - � �� _,, �_ �_ ' � ,._ - � �� ' �'�L _, _. ........_..� �-, � Anria Carlson,City Cle Dennis Walsh,Mayor Page 23 of 23