HomeMy WebLinkAbout11-13-1984 Council Minutes � •
M+-NUTES OF THE REGULAR ORONO COUNCIL MEETING HELD NOVEMBER 13 , 1984 PAGE 1
ATTENDANCE 7 :00 PM The Orono Council met on the above date. The following
Councilmembers were present: Mayor Butler , Council-
members Adams and Hammerel . Councilmembers Frahm and
Grabek were absent. City Administrator Benson was
absent. City Attorney Radio, City Engineer Cook,
Public Works Coordinator Gerhardson, Assistant Zoning
Administrator Gaffron , Finance Director Kuehn, Police
Chief Kilbo, and Recorder Sutton represented the City
staff .
CRYSTAL BAY SEWER PROJECT
CONTINUATION OF PUBLIC
HEARING 7 :00 - 9 :14 PM Mayor Butler announced the continuation of the Crystal Bay
publi� hearing. Butler noted for the record a petition
that was received from the neighbors. The following
neighbors were present for the continuation of the
Crystal Bay public hearing:
John Story of 1233 Briar Street
Charlie Dobson of 1290 Arbor Street
John & Patti Worre of 1270 Arbor Street
Duane Glew of ]_135 Brown Road South
Richard & Ardella Johnson of 1241 Brown Road South
Randolph & Peggy Lukanen of 1085 Brown Road South
Karen Bjerkeng of 1245 Arbor Street
Fred & Mar_garet Curtis of 2180 Prospect Avenue
Hilda & Olai Hanson of 1290 Railroad Avenue
Frank & Barbara Peterson of 1261 Arbor Street
Wayne Quast of 1205 Brown Road South
Alex & Diann Jentilucci of 1295 Briar Street
Steve Carlson of 1205 Arbor Street
Rick, Jan, & Bob Johnsan of 2170 Prospect Avenue
Norma Schnoon of 1210 Lakeview Avenue
Phyllis & Lawrence Symoniak of 1155 Brown Road So.
Niar� & Jack Spence of 2040 North Shore Drive
Mary & Dan Crear of 1980 Spates Avenue
George & Susan Rovegno of 2010 Shoreline Drive
Curtis & Katherine Quady of 1223 Brown Road So.
LaDean McWilliams of 1130 Willow Drive South
Marvel and C.H. Sandgren of 1215 Arbor Street
Bob & Barb Braun of 1230 Arbor Street
Karin Zeeb of 1245 Lakeview Avenue
Judy Christenson of 1251 Brown Road So.
Maybell Kohl of 1224 Briar Street
Mindy Pattee of 1355 Arbor Street
Rick Kieman of 1212 Briar Street
Oliver Engstrom of 1145 Willow Drive
Linda & Gary Printup of 1261 Briar Street
David Liesen of 1140 Willow Drive
Kevin Derry of 1115 Brown Road
Dianne Mattila of 1270 Briar Street
Patricia Drummond of 2160 Prospect Avenue
Mr. and Mrs. Herb Shepherd of 1335 Briar Street
Gail Stowe of 1250 Briar Street
MINUTES OF THE REGULAR ORONO COUNCIL MEETING HELD NOVEMBER 13, 1984 PAGE 2
CRYSTAL BAY SEWER PROJECT
City Engineer Cook reviewed with the public the
proposed sewer line and lift station locations in the
Crystal Bay area.
One man suggested that the City assume the cost of
maintenance of the lift station thereby reducing the
cost of the whole sewer project.
City Engineer Cook stated that it costs the City
approximately $4 , 500 a year for the maintenance of each
lift station.
George Rovegno of 2010 Shoreline Drive suggested that
the when installing the sewer pipe, that the
contractors to be careful not to tear up the road which
would reduce the cost of the project.
City Engineer Cook stated that it is impossible to
install piping without tearing up the roads. Cook
stated that the City can just restore the roads to their
original state now rather than eatending the roads .
. Cook stated that this would cut the cost of the project.
Cook noted that the City could save money if they didn' t
have to pay for easements on private property. Cook
explained that it could cost approximately $10 , 000 per
unit if the City could cut the cost on the roads ,
easements , and have cooperationfrom the neighborhood.
One lady suggested putting in water at the same time as
the sewer.
City Engineer Cook responded that only sewer is planned
for the Crystal Bay area. Cook reminded the neighbors
that to put in water at the same time would increase the
cost of the project.
Alex Jentilucci of 1295 Briar Street suggested putting
in the water pipe, dry piping, in case it would be used in
the f uture.
City Engineer Cook noted that when a dry pipe sits for
one winter, the joints begin to compress .
Gary Printup of 1261 Briar Street asked what would be
the cost if the City didn ' t replace the roads with 3" of
asphalt and just used 2" and also just paved the
existing size of the streets now.
City Engineer Cook explained to reduce the proposed
roads from 24 ' to 18 ' it would reduce the cost of the
project approximately $100 , 030 . Cook stated another
$50 , 00(3 could be reduced if the City were to use 2" of
asphalt. Cookinformed theneighborhood that it would
be approximately $2 , 000 less per unit for reducing the
street replacement proposal. Cook noted that another
area the City could reduce the sewer project cost by
$40 , OOQ is to seed grass areas that will be torn up
ratherthan using sod . Cook stated that the neighbors
could also take care of their own vards and recluce the
, MINUTES OF THE REGUI.AR ORONO COUNCIL MEETING HELD NOVEMBER 13, 1984 PAGE 3
CRYSTAL BAY SEWER PROJECT
Mayor Butler received a letter from the residents of the
Crystal Bay area noting their ideas for reducing the
proposed sewer project. Such letter is attached to
these minutes on page 13 .
George Rovegno of 2010 Shoreline Drive asked who bears
the debt of the deferred assessments .
Mayor Butler replied the general tax payer .
One lady stated that according to the appraisals that
were done, there are still going to be a lot of people
con��ing below that appraised valuation. She stated
that in order for the City to avoid lawsuits , the City is
going to have to pick up part of the unit cost. She
stated that the option to assess the project 50-50 , is
still going to be too much for each individual to pay.
She asked the Council to consider 30-70 option.
George Rovegno of 2010 Shoreline Drive presented a
' letter in which he had commented on the appraisals that
were done on some of the properties in the Crystal Bay
area. Such letter is attached to these minutes on page
14.
Randolph Lukanen of 1085 Brown Road South stated that
when he bought his lot he called City Hall to see if there
was any potential sewer proposed for this area.
Lukanen stated that he was told that he would most
likely not be included in any potential sewer project.
One lady stated that they just put in a new septic sYstem
under the direction that sewer would not be put in for
sometime.
Ass� stant Zoning Administrator Gaffron stated that
when people have called City Hall for information
regarding sewers in the Crystal Bay area, they have been
told consistently that there was no set timetable for
� ! sewer installation and that there was no immediate plan
to install sewer in this area, but it would definitely
be sewered if federal grant monies became available .
Gaffron stated that the situation has now changed, no
funding appears to be available, and there are problems
now which the neighbors who attended the previous
meetingsfelt warranted proceeding with the process to
determine the actual cost of sewering the area.
Alex Jentilucci of 1295 Briar Street stated that the
majority of the people want the sewer, but not the high
assessments that the City is thinking of imposing.
Jentilucci stated that when they moved in it was their
distinct understanding that sewer would be installed
approximately 5 years from the date they moved in.
Jentilucci stated it has been 6 years and the City is
still talking about potential sewer, but has taken no
action. Jentilucci stated that. the Crystal Bay area
needs sewer .
MINUTES OF THE REGULAR ORONO COUNCIL MEETING HELD NOVEMBER 13, 1984 PAGE 4
CRYSTAL BAY SEWER PROJECT
One lady wanted to clarify the petition that was signed
by many Crystal Bay residents . She noted that the
petition was not any indication that the residents
don' t want sewer, but that the neighborhood was opposed
to the method of assessment that the City is considering
(Example 50-50 option ) .
One man noted that there are many people who are
included in the sewer project that don ' t want sewer
because they don ' t have problems with their existing
septic systems .
Mayor Butler remarked that at the last meeting, one of
the Councilmembers asked staff to investigate how much
the general tax payer would have to pay if a portion of
the project was spread across the general tax rolls .
Butler used an example of an Orono resident who had a
household income of $25 , 000 and if the property was
worth $75 , 000 , the addition to that individuals tax
bill would be $29 . 50 per year over the life of the bonds
(15 years ) . Butler used another example of an Orono
resident who had a net tax per year of $50 , 000 and lived
in a $200 , 000 home; his tax increase for picking up half
the bill for this sewer project would be $41 . 19 a year.
Butler noted these examples would be if the City was to
choose the 50-50 assessed option for the project.
Butler stated if the City was to pick up 70 percent of the
project , that same person at $25 , 000 a year living in a
$75 , 000 home would have an increase of $35 . 40 per year
over 15 years . Butler reminded the audience if any
portion of the project is put on the general tax rolls ,
that they are also on the general tax rolls and would
also receive that increase in their basic real estate
tax.
George Rovegno of 2010 Shoreline Drive stated that
nothing says the City can' t just pay for a portion of
this project out of the general budget and not assess
the general tax payer. Rovegno stated that way it
would;.�.just mean that the City has to be mor� :
cons�r�ative in the rest of its operations .
John Ericson of 1620 Shadywood Road stated that he is in
the sewer and water construction business . Ericson
noted if this should come to the point where the City
asks the general tax payer to pay for a portion of the
project, he personally would have no problem with an
additional $30 a year. Ericson stated that he would
object if the City doesn ' t put in a water main along with
the sewer line at the same time. Ericson stated that it
would be a waste if the City put in sewer now, and f ive
years from now had to tear up the streets again to put in
water.
MINUTES OF THE REGUI.AR ORONO COUNCIL MEETING HELD NOVEMBER 13, 1984 PAGE 5
CRYSTAL BAY SEWER PROJECT
Mayor Butler replied that there is no reason to put
water in this area . Butler explained that there is no
water tower, and the City would have to build another
water tower. Butler asked the Public Works
Coordinator if there is any block grant monies
available.
Public Works Coordinator Gerhardson stated that the
City receives $28 , 000 a year in block grant monies .
Gerhardson stated that the City can use this money for
sewer projects .
George Rovegno of 2010 Shoreline Drive reviewed with
the Council his letter he submitted at the meeting.
Such letter is attached to page 14 of these minutes.
Rovegno stated that the appraiser used a theory to come
up with the appraisals . Rovegno reviewed his letter
with the Council in which he believed the appraisals
were facetious and fallacious.
One man stated that the Crystal Bay area is unique. He
noted that the value of the houses are such that they
aren' t going to increase $10 , 000 when they get ready to
sell their property.
Councilmember Adams stated that after seeing the
appraisals , he would be in favor of the 50-50 assessment
option. Adams noted that the Council should not take
any action until the other two Councilmembers can be
present.
Councilmember Hammerel stated that he would be in favor
of the 50-50 assessment option.
Gary Printup of 1261 Briar Street asked the Council to
approve the 70-30 assessment option.
Mayor Butler closed the public hearing :at 9 : 14 p.m.
, Butler asked staff to bring back the following
19`s�? i-- information for the meeting of December 10 , 1984 to
- continue the Crystal Bay sewer project discussion:
1. The dif f erence in cost if the City used a grinder
pump.
2 . The impact of the cost on the project if the City
doesn' t have to pay for easements .
3. Staff to be able to show where those easements are
to be taken from.
4 . Staff to bring back figures as to how much it will
reduce the sewer project cost to reduce the size of
the proposed streets .
MINUTES OF TnE ORONO COUNCIL MEETING HELD NOVEMBER 13, 1984 . PAGE 6
CONSENT AGENDA* Councilmember Hammerel moved, Councilmember_ Adams
secanded , to approve the Consent Agenda* , subject to
item number 11 being removed for discussion , with all
staf f reports concerning these items to be attached to
an original copy of these minutes on file in the City
Clerk' s office. Motion, Ayes ( 3 ) , Nays ( 0 ) .
APPRQ�.AL OF MINUTES* Councilmember Hammerel movedJ�`�Councilmember Adams
seconded , to approve the minutes of the regular Council
meeting of October 29 , 1984 . Motion, Ayes ( 3 ) , Nays
( 0 ) .
APPROVAL OF MINUTES* Councilmember Hammerel moved, Counci.lmember Adams
seconded , to approve the minutes of the Canvassing
Board Meeting of November 7 , 1984 . Motion, Ayes ( 3 ) ,
Nays (0 ) .
LAKE MINNETONKA CONSERVATION
DISTRICT REPORT There was no report from the Lake Minnetonka
Conservation District.
PLANNING COMMISSION
COMMENTS Gloria McDonald was not present. Planning Commission
member Rovegno was present but had no comments .
PUBLIC COMMENTS There were no comments from the public present.
#811 JOHN ERICSON
1620 SHADYWOOD ROAD
DENIAL OF APPEALS
PETITION REGARDING
INTERPRETATION OF SUBD
REGULATIONS
RESOLUTION John Ericson was present. Ericson noted that his
attorney has written a letter to the City of Orono.
Ericson stated that he didn ' t receive the resolution
until today. Ericson stated that in his opinion, the
lotsarecombinedfortax purposesonly. Ericson noted
that on the tax statements there is a legal for each lot.
� ,; �. Ericson stated that he doesn ' t consider this a
� � ���::~ subdivision. Ericson stated that it is consistent
with the neighborhood and is not a detriment to the
neighborhood.
City Attorney Radio stated since Ericson ' s attorney
didn' t have time to review the resolution and that the
City hasn' t received the attorney' s letter, the City
should table action on the resolution.
Councilmember Adams moved, Councilmember Hammerel
seconded, to table the Ericson application until
November 26 , 1984 , Councilmeeting. Motion, Ayes ( 3 ) ,
Nays (0 ) .
MINUTES OF THE REGULAR ORONO COUNCIL MEETING HELD NOVEMBER 13 , 1984 PAGE 7
#861 STEVEN PAULY
3980 DAHL ROAD
VARIANCE Steve and Suzie Pauly were present. Assistant Zoning
Administrator Gaffron stated that at the last Council
meeting, Council asked Steven Pauly to reduce the
hardcover on the property by reducing some gravelled
areas and existing shed.
Councilmember Adams stated that he wou ld pref er to have
zero percent increase in hardcover.
Mayor Butler suggested trading off hardcover in the 75-
250 ' setback zone and crediting this trade off to the 0-
75 ' setback zone.
Mayor Butler moved, Councilmember Adams seconded, to
table action on the approving Resolution for Steven
Pauly to allow applicant time to reduce hardcover so ,
that there is a zero percent increase in hardcover.
Motion, Ayes ( 3 ) , Nays ( 0 ) .
#869 JAMES PHELAN
1231 WILDHURST TRAIL
PRELIMINARY SUBDIVISION James Phelan was not present at the time the Council
reviewed his application, but he was present at the
beginning of the Council meeting. Recorder Sutton
noted that James Phelan had called the office and noted
that he would not be able to attend the meeting.
Nlayor Butler moved, Councilmember Adams seconded, to
grant preliminary approval of a two lot plat
application of James Phelan finding all standards of
the LR-1B zoning district have been satisfied and that
the property has been assessed two sewer units and sewer
is available; such approval is subject to the following
conditions :
l . Future owners of Lot 1 must apply for a land use
permit from the City if a guest home use is proposed
for structure referred to as shed on preliminary
plat.
2. Payment of park fee for newly created Lot 2 at
$1Q0 . 00 .
3 . Future owner of Lot 2 must have new access to site
approved by the Public Works Department .
4 . Plans for sewer connection to Lot 2 must be reviewed
prior to assurance of a building permit for new
residence by the Public Works Department.
5 . Sewer unit fee of $225 must be paid with building
permit for Lot 2 .
Mot.ion, Ayes ( 3 ) , Nays ( 0 ) .
' MINUTES OF THE REGULAR ORONO COUNCIL MEETING HELD NOVEMBER 13, 1984 PAGE 8
�871 WILLIAM MIELENZ
3435 CRYSTAL BAY ROAD
VARIANCE
RESOLUTION #1696 William Mielenz was not present.
Mayor Butler noted that when the Planning Commission
reviewed this application, there were some comments
from the neighbors as to the drainage problem
surrounding this property. Butler noted that she
would like this cleared up before building permits are
issued.
Mayor Butler moved, Councilmember Adams seconded , to
approve Resolution #1696 , A Resolut.ion Approving A
Variance to construct a deck within the 75-250 '
lakeshore setback zone. Motion, Ayes ( 3 ) , Nays ( 0 ) .
#872 BRECRENRIDGE DEVELOPMENT CORP
1200 OLD CRYSTAL BAY ROAD
PRELIMINARY SUBDIVISION
RESOLUTION #1697 James Bartlett was present to represent Breckenridge
Development Corporation. Asst Zoning Administrator
Gaffron noted that the Council must first approve a
Resolution to allow hookup to MWCC ' s sewer line .
Councilmember Adams moved, Mayor Butler seconded, to
approve Resolution #1697 , A Resolution Approving a
Special Exception to Rural Sewage Treatment Folicy No.
7 of Orono' s Comprehensive Sewer Policy to permit one
sewer connection at120001d CrystalBay Road. Motion,
Ayes (3 ) , Nays ( 0 ) .
Mayor Butler moved , Councilmember seconded, to grant
preliminary approval of a two lot plat application of
Breckenridge Development Corporation finding all
standards of the RR-1B zoning district have been
satisfied and that the City approved a sewer connection
to existing metro gravity line based on the findings in
Resolution #1697 ; such approval is subject to the
following conditions :
l . Payment �of a $225 sewer unit charge with building
permit application.
2. Dedication of right-of-way in addition to the
triangle ( 25 ' ) at the intersection of County Roads
84 and 51 as shown on plat.
3 . Designation and dedication of 20 ' drainage
easements along east and south property lines--
City to acquire Flowage and Conservation easement
over drainage easements .
MINUTES OF THE ORONO COUNCIL MEETING HELD NOVEMBER 13, 1984 . PAGE 9
#872 BRECKENRIDGE DEVELOPMENT CORP
4 . Payment of park fee for newly created lot of
$200 . 00 .
5 . Access to new lot must be approved by Hennepin
County Highway Department--access permit must be
- submitted with building permit application.
Moti.on, Ayes ( 3 ) , Nays ( 0 ) .
#873 LEO CLIFFORD
4760 NORTH SHORE DRIVE
VARIANCE
RESOLUTION #1698 Leo and Neila Clifford were present .
Nlayor Butler asked if this property had been offered to
the adjacent property owners .
Leo Clifford stated that the property has been for sale
for two years and is currently for sale .
Councilmember Adams stated that the City should
distinguish this variance from the other variance they
are reviewing and planning on denying. Adamsnoted the
following to distinguish the Clifford ' s application
from other variances :
l . No alternate use for the property.
2 . Not a self imposed hardship.
3 . Adjacent property owners were offered the lanc� for
sale.
Councilmember Adams moved , Councilmember Hammerel
seconded, to approve Resolution #1698 , A Resolution
approving a Variance to construct a new home, subject to
changing item #3 in resolution to read "No other
adjacent land is available and there appears to be no
alternate use of the property" and subject to staff
adding language to include additional right of way to be
acquired in resolution. riotion, Ayes ( 3 ) , Nays ( 0 ) .
ALEX JENTILUCCI
DRAINAGE TILE PROBLEM Alex and Diann Jentilucci of 1295 Briar Street were
present. Jan and Bob Johnson of 2170 Prospect Avenue
and Fred and Margaret Curtis of 2180 Prospect Avenue
were also present.
Mayor Butler noted for the record that the Jentilucci ' s
have been added to the agenda as item #10A.
Public Works Coordinator Gerhardson explained that
this is a underground drainage tile in the Crystal Bay
area which runs from Jentilucci ' s under the road to
Dayton' s property. Gerhardson stated that it is on
private property. Gerhardson noted that the drainage
ditch gets all the drainage from the Crystal Bay area .
MINUTES OF THE ORONO COUNCIL MEETING HELD NOVEMBER 13, 1984 _ PAGE 10
Gerhardson stated that a couple of years ago the City
repl.aced the culvert and created a ponding area for the
drainage. Gerhardson stated that the Jentilucci ' s
want something done with� the tile line.
Alex Jentilucci of 1295 Briar Street showed the Council
pictures of the drainage problem. Jentilucci noted
that the drainage ditch is being used by all of Crystal
Bay, approximately 10 acres . Jentilucci noted that
the City did put in the drainage ditch and the City
should have to maintain the ditch. Jentilucci stated
that at one time the City was maintaining the ditch and
then quit the maintenance of the ditch after replacing
the culvert a couple of years ago. Jentilucci asked
the City to take care of the problem and clean out ditch
area. Jentilucci noted that all he wants is the street
to disappear from his survey.
Jan Johnson of 2170 Prospect Avenue stated that she used
to call the City to come and clean out ditch area.
Johnson stated that when she stopped calling the City
� stopped maintaining the ditch area.
Margaret Curtis of 2180 Prospect Avenue stated that the
City caused the water flow problem when the City
replaced the culvert. Curtis stated that the City put
in the culvert along time ago and the City should have to
maintain it.
Councilmember Adamsexplainedthat Dayton hasbeen told
by the City to maintain his end of the culvert, and the
neighbors here should have to maintain their end.
Adams noted that this is private property.
Diane Jentilucci of 1295 Briar Street stated that the
City should clear up their legal description problem.
Nlayor Butler asked there are other people with drainage
problems in, the City that would want their problems
solved if �h&�:.City was to maintain this culvert.
Butler also asked the City Attorney to research to see
if the City would be setting an adverse precedent by
taking over the maintenance of this drainage tile .
Public Works Coordinator Gerhardson stated that there
are several other drainage prob]_ems in the City.
City Attorney Radio asked that the matter be tabled so
that he may do a review and submit a legal opinion to the
Council. Radio noted that this could be setting an
adverse precedent if the City was to take over
maintenance of this when it is on private property.
Radio noted that it is not up to the City to clear up
Jentilucci ' s legal description.
MINUTES OF THE ORONO COUNCIL MEETING HELD NOVEMBER 13, 1984 . PAGE 11
Mayor Butler moved, Councilmember Adams seconded, to
table action on this drainage problem until December
10 , 1984 , to allow the City Attorney to review this and
submit a legal opinion. Motion, Ayes ( 3 ) , Nays ( 0 ) .
SALARY ADJUSTMENT -
SUE BOBZIEN & CAROL
HANSING Police Chief Kilbo was present. Councilmember Adams
explained that he had this item removed from the Consent
Agenda* because he wanted to clarify the policy on
salary adjustments . Adams asked why she just doesn' t
get a raise after the first of the year .
Chief Kilbo exp].ained that Sue Bobzien was not given a
raise after her one year of performance which was in
August.
Mayor Butler noted that the raise should go into effect
as of her first year anniversary date in August.
Niayor Butler moved, Councilmember Adams seconded, to
approve a salary adjustment for Sue Bobzien effective
August 15 , 1984 from $7 . 53 to $7 . 83 per hour and Carol
Hansing salary adjustment from $6 . 00 an hour to $6 . 24 a
hour effective November 19 , 1984 . Motion, Ayes ( 3 ) ,
Nays ( 0 ) .
JULY, 1984 MONTHLY &
YEAR-TO-DATE SUMMARIES
OF RECEIPTS* Councilmember Hammerel moved, Councilmember Adams
seconded, to approve the July, 1984 Monthly and Year-
to-Date Summaries of Receipts , Disbursements and
Balances prepared by Finance Director Kuehn. Motion,
Ayes ( 3 ) , Nays ( 0 ) .
AUGUST, 1984 MONTHLY &
YEAR-TO-DATE SUMMARIES
OF RECEIPTS* Councilmember Hammerel moved, Councilmember Adams
seconded, to approve the August, 1984 Monthly and Year-
. to-Date Sumn�af�i��u�f Receipts, Disbursements and
Balances prepar�dYln�� Finance Director Kuehn. Motion,
Ayes (3 ) , Nays ( 0 ) .
AUGUST LIQUOR STORE
OPERATING REPORT* Councilmember Hammerel moved, Councilmember Adams
seconded, to approve the monthly August Liquor Store
Operating Report prepared by Finance Director Kuehn.
Motion, Ayes ( 3 ) , Nays ( 0 ) .
SEPTEMBER LIQUOR STORE
OPERATING REPORT* Councilmember Hammerel moved, Councilmember Adams
seconded, to approve the monthly September Liquor Store
Operating Report prepared by Finance Director Kuehn.
Motion, Ayes ( 3 ) , Nays ( 0 ) .
MINUTES OF THE ORONO COUNCIL MEETING HELD NOVEMBER 13, 1984 . PAGE 12
CASH & INVESTMENTS
AS OF SEPTEMBER, 1984* Councilmember Hammerel moved, Councilmember Adams
seconded, to approve the cash and investments as of
September 30 , 1984 , report preparedby Finance Director
Kuehn. Motion, Ayes ( 3 ) , Nays ( 0 ) .
ARBITRATION AWARD
(LELS) LAW ENFORCEMENT
LABOR SEKVICES - CONTRACT
APPROVAL* Councilmember Hammerel moved, Councilmember Adams
seconded, to approve the report and contract prepared
by Police Chief Kilbo (LELS ) Law Enforcement Labor
Services . Motion, Ayes ( 3 ) , Nays ( 0 ) .
CARMAN STREET SEWER
PROJECT REIMBURSEMENT* Councilmember Hammerel moved, Councilmember Adams
seconded, to approve the Carman Street Sewer Project
Reimbursement of $3 , 500 to Richard Edwards of 2480
Carman Street and Edward Lehman of 2470 Carman Street.
Motion, Ayes ( 3 ) , Nays ( 0 ) .
PUBLIC HEARING
DECEMBER 10, 1984
7 :00 PM* Councilmember Hammerel moved, Councilmember Adams
seconded, to approve the public hearing to be scheduled
for December 10 , 1984 , at 7 : 00 p.m. concerning the
Transfer Funds of CDBG. Motion, Ayes ( 3 ) , Nays ( 0 ) .
CITY ATTORNEY' S REPORT
COLLECTION OF FEES City Attorney Radio asked that this be discussed in
executive session.
BILLS* Councilmember Hammerel moved, Councilmember Adams
seconded, that the AIl Funds Accounts and Liquor Store
Accounts be paid. Motion, Ayes ( 3 ) , Nays ( 0 ) .
ADJOURNMENT 11 :19 PM Mayor Butler moved, Councilmember Adams seconded, to
adjourn the regular Council meeting at 11 : 19 p.m. and to
enter into executive session. Motion, Ayes ( 3 ) , Nays
(0 ) .
ATTE T:
�� � �\��`= C �.
0 othy . Ha 11 n, �11��J}a���/¢"���z'k Mary C. Bt�t ,r, Mayor
City Cle
. �eee���ed �1-� 3-B� C6unr�t �ted-:
. `�
MINUTES OF THE REGULIIR ORONO COUNCIL MEETING HELD NOVEMBER 13 , 1984 PAGE 13 .
,TTI�,,T-is ��r i-�; . CC1�:C�"�I,;I.�,; �,E
,,,.
r;t?YSi'AT U"Y S�'':''�,?? �i�GJFCT
;s rer:l:,_rs ef ti,e Cr���tal P�T.- Ccm�,urity af.rected 'r�� the proposed
sei;er pr�iect for 19�iS, ��e nave eutlined f.ive c�,jectives we feel
tl�e Cit,y of C:r�n� must achieve �efere procee?ir�- wit}': the nro;ect.
Cur petitior, anainst the prcp��ed se�aer project, ��nder the three
pa�ment opti.ns, reflects the opinicn of b� cut of n3 rouseholds.
�•'e t:elieve t^iG is a si�r,�_ficant numl:er and ur�e the Cit�� of Crcno
te censider t!�.e fcliowin�- objectives:
l. :�'icenir;� �f trie road� ard ac�ding cur'�ir.,r should
bc eliminated
2. 9lternatire plans for the se�ter system that ma,.� be
le�s e:tipensive should be in»e�ti�at.ed
3. The City of Orcno must resolve to pa-T a �ertion of
• tti�e co�t s� as not to create ar. ur.do hardsL ip en
the residents �f Crystal Bay
U. Includin�: other area� in the project sheuld be
considered if this will lower the per unit coGt
o� tr�e Pro;;ect
5. :�n as�urance from the ;itv that provi�ions t�;il.i
be made Lor tho�e unacle to afforc' t':�e assess-�ent
As a ccmTunit;�, we ti�ish to express to the Citv ^cuncil our desire
to ceoperate in finoin�- reasona��le and Dractical solutions that tae
as h�ell. as the City car, accept.
• /-�C�i ✓t'U /i� - l,� ' , �T `'�,:.C✓i'���� ����C`i/�,�
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MINUTES OF THE REGUII�R ORONO COU2ICIL MEETING HELD NOVEMBER 13, 1984 PAGE 14
2010 Shoreline Drive
Orono, Minnesota
November 13, 1984
Orono City Council
Crystal Bay Minnesota
In the matter of the Public Hearing on Sanitary Sewer in the Crystal Bay Area:
Comments in addition to my letter of September 16, 1984.
Issues:
s.
1 . Compliance with Community Management Plan
2 . Design and Cost
3. Farrell appraisal "Theory"
4. Benefit Analysis
1 . Compliance with Community Management Plan (CMP)
The CMP directs that the installation of sanitary sewer shall not
impose hardship on the residents or city. This project may not be
undertaken without satisfying this requirement.
Z . Design and Cost
Table 1 - details some of these factors:
Table 1
A. 24 foot wide proposed roads A. 1. No one wants or needs wider
with berm curbs. roads or curbs .
�- i '>' 2. Wider roads have inherently
higher installation and
maintenance costs .
3. Increases hard cover
unnecessarily in Lakeshore
district.
B. Total gravity system proposed. B. 1. A limited number of residences
on low ground necessitate extra-
ordinarily deep piping at great
expense.
2. Addition of a limited number of
"grinder" pumps could reduce the
depth necessary and reduce capi -
tal expenditure.
TABLE 1
�. Proposed mains are located within C. 1. This increases road replacement
the paved roadway. costs and pipe installation costs .
2. This is unnecessary in many cases
since the 16 ft wide (average )
roads lie on 40-60 foot wide
rights-of-way.
3. The reasons presented for this
plan is that sewer accesses are
"easier to find in the winter" and
"will not require acquisition of
easements . "
D. Engineering, administrative fees of D. 1. Other cities, eg. Victoria pay 15%
25%. fees.
E . Exclusion of abutting properties E. 1. Raises per unit costs
served by project mains e.g. Art 2. MUSA line immaterial , ref. Old
- Center. Crystal Bay Road.
F. Other issues: 12 dead end pipes F. 1. w'e need a qualified review to
( Is this excessive?); double piping reduce costs.
in front of Council Chambers (Is
this necessary?); accuracy of cost
estimate (recent bidding has exceeded
engineering estimates . )
3 . Farrell Appraisal "Theory"
While substantial issue may be taken with the absolute numbers provided
and his choice of comparable properties is at tne very least seriously
flawed, Mr. Farrell has used a "Theory" to arrive at his conclusions
that has no basis in fact, reason, or real estate appraisal practice.
"The value conclusion estimate for the subject syste� is based on theory
that a property with a private system would sell in the lowest range of
th��, e�bi�mates. Conversely, a residence with a public sanitar�F,s����m
and�.�ne��J'�road ways sell �in the higher end of the range. ° (Empb�s�}�,, ;
added. )
In practice he concludes that if his three questionable private system
comparable properties have "values" of, for example, $50,000, $52,000
and $54,000 an the public system comparable properties have "values" of
$56,000, �58,000, and �60,000; the before and after values are $50,000
and �60,000. This is fallacious logic, has no basis in fact or practice
and is a self-admitted "theory. "
An equally reasonable (or unreasonable) theory would be to conclude;
based on housing demand in Orono both with and without public systems
that the private system property would sell in the highest range because
it is located near to Lake Minnetonka, the School District, and City of
Orono, with its excellent septic system administration, while the public
property would sell in the lowest part of the range since it really
offers no practical additional benefit. In practice, properties in the
un,�4�ered parts of Orono; the Farm at Long Lake, Green Trees, Webber
Hills, the developments along Old Crystal Bay Road and Willow Drive,
Foxhill and the Pink Palace property to name a few sell at premium
market prices when contrasted to nearby sewered areas in towns such as
Long Lake.
4. Benefit Analysis
Once a reasonable, rationale increase (or decrease) in property value is
determined the analysis of benefit accruing to the property can begin.
Positive benefits are:
1 . Increase in property value
2 . ?
Neqative benefits include:
l. capital costs
2, interest costs (less tax benefits )
3. installation costs
4. S.A.C. Fee, permits
5. loss of value in existing functioning septic system
6 . cost of decommissioning existing septic system
7, decrease in property value, e.g. , loss of trees, creation of
easements .
8, increase in operating expense
9, increase in property tax�s (less income tax benefits ) .
For �xample, obtaining an unrealized 510,000 increase in property value
at a cost of $20,000 is a 510,000 negative benefit.
Table 2 provides an illustration of the principl2 and does not purport
to be actual numbers.
TABLE 2
(ASSET) (LIABILITY)
Negative Benefit
Positive Benefit (over 15 years )
Increase in value $10,000 Assessment $5,000
Income tax benefit (33%) Interest 4,520
- interest expense 1,500 Instal�ation 1,000
- real estate tax 1,300 SAC fee 425
Loss of value of
functioning
Septic sy5tem (50%
depreciated ) 2,000
Decommissioning old
syste� 500
Increased operating
expense (net) 867
Increased property
taxes 4,000
Total $12,800 Total �18,312
Net Benefit (�5,512 )
(net aorth)
Conclusions
1 . The Crystal Bay Area should receive sanitary sewer.
2. Installation should not impose a hardship on the residents.
3. Design and cost must be carefully evaluated to assure that we obtain a func-
tional system at the lowest reasonable cost.
4. Property value conclusions should be drawn from real data not
"Theory. "
5. Benefit analysis must be total and complete, not piecemeal or selective.
Sincerely,
� �
George F. loveg o, Jr. Susan J. Rovegn�
-� , � ,�
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