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8.1. SR 06-17-2019Request for Action To Item Number Mayor and City Council 8.1 Agenda Section Meeting Date Prepared by General Business June 17, 2019 Amanda Bednar, Environmental Coordinator Brandon Wisner, Stormwater Coordinator Item Description Reviewed by Orono Lake Improvement District Peter Beck, City Attorney Reviewed by Cal Portner, City Administrator Action Requested Consider the Orono Lake Improvement District (OLID) Resolution and Order Establishing District. Background/Discussion On April 10, 2019, the City of Elk River received a petition seeking approval for the establishment of a lake improvement district for Lake Orono. Per state statute, all required noticing requirements were completed. On June 3, 2019, a public hearing was held to discuss the OLID formation. Comments were received and the boundary was questioned. Council asked staff for clarification and continued the discussion to June 17. Council must make a decision within 30 days of the public hearing. A Resolution of Denial and a Resolution Approving an Order establishing the OLID are drafted for consideration. Petition signatures were verified by the city clerk and guidance provided by Sherburne County. Properties with two owners (Partners /married couples) were counted as two potential signatures. Parcels under common ownership (one owner, multiple parcels) were counted as one. Trusts, legal entities and companies were counted as one potential signature. The boundary includes 260 possible property owner signatures and the application contained 143 valid signatures, representing approximately 54%. State statute requires a majority of property owners, 50% plus 1, which was met. The establishment of the OLID is intended to provide for long-term, continuous maintenance for the overall health of the lake and benefit to lakeshore owners and visitors. The OLID would allow lakeshore property owners to plan and budget for water quality improvements, habitat enhancement, herbicide treatment, etc. OLID members would be eligible to vote during the annual meeting on the OLID budget and goals. Budgets are approved annually by OLID members and provided to the City Council for final approval. All figures and budgets submitted with the OLID petition are placeholders and need a membership approval by simple majority. Residents questioned whether the properties along 1891h Avenue are within the lake boundary. The DNR determines the public water boundary based on hydrological effect of the reservoir on the channel. City staff requested the DNR review the hydrologic boundary again. Per the DNR response letter on June 12, 2019, they concluded that the properties are in fact affected by the operation of the reservoir. This is based on a The Elk River Vision A PehoMing community Pitb revolutionary and spirited resourcefulness, exceptional P,` 01 W E H E 8 6 T service, and community engagement that encourages and inspires prosperity INAMIRE1 hydraulic model, which according to the DNR, the water levels abutting the properties along 189th Avenue NW would be significantly lower without the dam. The OLID petition also included information about the Lake Orono Restoration and Enhancement (LORE) dredging project. The proposed OLID and the LORE are related but are two separate topics. The City Council could proceed with the LORE dredging project and assess a portion of the costs of the LORE project to lakeshore properties whether or not the OLID is established. When the lake was dredged in 1998, the Council determined the property owners on the lake received a greater benefit than the rest of the community and those property owners were assessed 50% of the project costs. The current proposed $3 million budget for the LORE project includes $1.5 million funded through a State of Minnesota Grant and $1 million funded through the local option sales tax. A study performed by the University of Minnesota Extension Service showed that 45% of sales taxes paid in Elk River will be paid by non -Elk River residents; therefore visitors to the city would be contributing approximately $450,000 to the LORE project, with Elk River households contributing the remaining $550,000 of sales tax revenue. Of the final $750,000, approximately $100,000 would be assessed to the City of Elk River and paid by all of Elk River through property taxes. The final $650,000 (20%) of the total LORE cost would be assessed to the benefitting property owners. State law provides a remedy for property owners not in support of the OLID, which is a second petition for a referendum with a required 26% of the proposed district's signatures. That second petition would initiate an election. If the OLID is approved, the property owners within the OLID boundary would meet annually and vote on an annual budget. This budget would then be required to be considered by the city prior to September 15 of each year in accordance with normal budget timelines the city currently follows. Financial Impact None Attachments ■ Certification of Orono Lake Improvement District Signature Verification ■ Proposed OLID Boundary Map ■ DNR Advisory Report on the Formation of the Lake Orono Improvement District in Sherburne County ■ DNR Comment Letter Regarding Lake Boundary ■ Draft Resolution of Approval and Order Establishing the Orono Lake Improvement District ■ Draft Resolution of Denial ■ Comments from Public N:APublic Bodies\Agenda Packets\06-17-2019\Final\x8.1 sr Orono Lake Improvement District (OLID).docx 13065 Orono Parkway Elk River, MN 55330 State of Minnesota County of Sherburne City of Elk River Certification for Orono Lake Improvement District Signature Verification May 24, 2019 In the matter of the formation of the Orono Lake Improvement District (OLID), per MN Statute 103b.521, a petition must be signed by a majority of the property owners within the proposed lake improvement district described in the petition. Within the OLID there are 258 possible property owner signatures. In order to meet MN Statute 103b.521, 130 signatures are required to meet the majority requirement. There are 139 valid property owner signatures in the petition. I, Tina Allard, City Clerk, do hereby certify 139 property owner signatures have been verified as having ownership of the parcels within the proposed Orono Lake Improvement District; therefore the petition meets the required number of signatures and is valid. .,w Tina Allard City Clerk (Seal) . 0W 1 11 i. III Phone: 763.635.1000 www.ElkRiverMN.gov Validated Signatures on Petitions Potential Signatures PIN BLDG_NUM STREETNAME STREETTYPE SUFFIX_DIR UNIT_INFO CITY_MAIL ZIP OWNER_NAME OWNER_ADD OWNER_ADD1 OWNER_ADD2 1 1 75-132-1210 13284 ISLAND VIEW DR NW ELK RIVER MN 55330 HUFF, DONALD J -TRUSTEE 13284 ISLAND VIEW DR NW ELK RIVER MN 55330 1 1 75-129-3310 13590 ISLAND VIEW DR NW ELK RIVER MN 55330 KRATZKE,M ERLE A& MARILYN F -TRUSTEE 135901SLANDVIEW DR NW ELK RIVER MN 55330 2 75-535-0210 1797 TIPTON CIR NW SUITE 103 ELK RIVER MN 55330 RASM USSON, GARY&PATRICIA 25830 HICKORY BLVD N 202 BONITA SPRINGS FL 34134 2 2 75-626-0134 13407 185TH LN NW ELK RIVER MN 55330 MAXWELL, JOHN S & NEESHA R 13407185TH LN NW ELK RIVER MN 55330 2 75-626-0126 13423 185TH LN NW ELK RIVER MN 55330 WYROWSKI, DANIEL& SCHULZ, JEFFREY 1554 SPARROW RD WACONIA MN 55387-4513 1 75-626-0128 13419 185TH LN NW ELK RIVER MN 55330 PETERSON, PATRICIA 13419185TH LN NW ELK RIVER MN 55330 1 75-626-0112 13455 185TH LN NW ELK RIVER MN 55330 ANDERSON, LESTER H 13455185TH LN NW ELK RIVER MN 55330 2 2 75-132-2225 13492 ISLAND VIEW DR NW ELK RIVER MN 55330 HALGREN, DAVID &JUDITH 13492 ISLAND VIEW DR NW ELK RIVER MN 55330-1126 2 75-402-0211 1738 5TH ST NW ELK RIVER MN 55330 KOPP, ALLEN 1 & LINDA A 1738 5TH ST NW ELK RIVER MN 55330 2 2 75-466-0150 18613 SIMONET DR NW ELK RIVER MN 55330 FARNSWORTH, TOM &JULIEA 18613 SIMONET DR NW ELK RIVER MN 55330 2 75-465-0650 12916 188TH AVE NW ELK RIVER MN 55330 OMITES, SHANNON & METZ, MELANIE 12916188TH AVE NW ELK RIVER MN 55330 1 1 75-411-0530 1707 5TH ST NW ELK RIVER MN 55330 TJW INVESTMENTS LLC 13002 ISLAND VIEW DR NW ELK RIVER MN 55330 2 75-132-2440 13211 US HIGHWAY 10 NW ELK RIVER MN 55330 GOOSSEN, DONAVAN D&SHERRON 18034 SUNRISE CIR NW ELK RIVER MN 55330 2 2 75-469-0020 13184 ISLAND VIEW DR NW ELK RIVER MN 55330 PLANT, PATRICK 1 & CINDI 13184 ISLAND VIEW DR NW ELK RIVER MN 55330-1122 2 75-465-0620 18890 CONCORD ST NW ELK RIVER MN 55330 KUHL, BRIAN &JESCA 18890 CONCORD ST NW ELK RIVER MN 55330 2 2 75-469-0040 13162 ISLAND VIEW DR NW ELK RIVER MN 55330 GIFFORD, BRIAN & LAURA 13162 ISLAND VIEW DR NW ELK RIVER MN 55330 2 2 75-469-0060 13130 ISLAND VIEW DR NW ELK RIVER MN 55330 WELCH, ALAN K & MARGARET A 13130 ISLAND VIEW DR NW ELK RIVER MN 55330 2 75-469-0050 13146 ISLAND VIEW DR NW ELK RIVER MN 55330 CRABTREE, TIMOTHY & KIMBER 13146 ISLAND VIEW DR NW ELK RIVER MN 55330 1 1 75-469-0070 13116 ISLAND VIEW DR NW ELK RIVER MN 55330 WEISS,THOMASJ-TRUSTEE 13116 ISLAND VIEW DR NW ELK RIVER MN 55330 2 2 75-469-0100 13070 ISLAND VIEW DR NW ELK RIVER MN 55330 TACHENY, JAMES R&JOANNE 13070 ISLAND VIEW DR NW ELK RIVER MN 55330-1121 2 75-469-0090 13084 ISLAND VIEW DR NW ELK RIVER MN 55330 OSS, L MAYNARD & ELAINE 130841SLAND VIEW DR ELK RIVER MN 55330-1121 2 75-469-0080 13100 ISLAND VIEW DR NW ELK RIVER MN 55330 ANTI LLA, PAM ELAJ &TIMOTHY F 13100 ISLAND VIEW DR NW ELK RIVER MN 55330 2 75-469-0110 13054 ISLAND VIEW DR NW ELK RIVER MN 55330 STARKWEATHER, EMERYC & BRANDY L 13054 ISLAND VIEW DR NW ELK RIVER MN 55330 1 1 75-469-0130 13024 ISLAND VIEW DR NW ELK RIVER MN 55330 CLEMONS,JANET L REVOCABLETRUST 13024 ISLAND VIEW DR NW ELK RIVER MN 55330 2 75-469-0140 13008 ISLAND VIEW DR NW ELK RIVER MN 55330 DRYER,JOHN E & ELAINE M 13008 ISLAND VIEW DR NW ELK RIVER MN 55330 1 75-465-0640 18852 CONCORD ST NW ELK RIVER MN 55330 NGUYEN, NGHIEP V 18852 CONCORD ST NW ELK RIVER MN 55330 2 2 75-413-0340 1904 MAIN ST NW ELK RIVER MN 55330 BRIXIUS, AARON P &JESSICA M 1904 MAIN ST NW ELK RIVER MN 55330 2 75-413-0420 1854 MAIN ST NW ELK RIVER MN 55330 HOSKINS, KELLI & SHANE 28080 LAKEWOOD DR NW ISANTI MN 55040 1 1 75-413-0410 1862 MAIN ST NW ELK RIVER MN 55330 NOVAK, KAREN 1862 MAIN ST NW ELK RIVER MN 55330 1 1 75-413-0510 1828 MAIN ST NW ELK RIVER MN 55330 SCHWEND, DARIN 1828 MAIN ST NW ELK RIVER MN 55330 2 2 75-402-0191 1911 6TH LN NW ELK RIVER MN 55330 DONNELLY, PATRICK & PAULA 19116TH LN NW ELK RIVER MN 55330-1103 1 1 75-411-0610 1718 MAIN ST NW ELK RIVER MN 55330 HERMANSON, CRAIG 1718 MAIN ST NW ELK RIVER MN 55330 2 2 75-458-0230 0 0 LUNDEEN, JEFFREY A&MARY M 12876 ORONO RD NW ELK RIVER MN 55330-1740 1 75-458-0220 12897 ORONO RD NW ELK RIVER MN 55330 KLEMZ, MICHAEL & PATRICIA REVCBL TR 12897 ORONO RD NW ELK RIVER MN 55330 1 1 75-132-4405 0 0 THOMAS, KAREN 18366 BOSTON ST NW ELK RIVER MN 55330-1709 1 1 75-773-0110 441 UPLAND AVE NW ELK RIVER MN 55330 VANDERMEY, MITCHEL 441 UPLAND AVE NW ELK RIVER MN 55330 1 1 75-466-0100 18565 SIMONET DR NW ELK RIVER MN 55330 GREY HAIR INVESTMENTS LLC 13002 ISLAND VIEW DR NW ELK RIVER MN 55330 1 75-466-0090 18560 SIMONET DR NW ELK RIVER MN 55330 RICKMAN, RICHARD T -TRUSTEE 3348 MCCORMICK BLVD BULLHEAD AZ 86429 2 75-466-0110 18575 SIMONET DR NW ELK RIVER MN 55330 SPAULDING, STEVEN & MARY 18575 SIMONET DR NW ELK RIVER MN 55330 1 1 75-466-0120 18583 SIMONET DR NW ELK RIVER MN 55330 ANDERSON, KAREN &HOFFMAN, K -TRUSTEE 18583 SIMONET DR NW ELK RIVER MN 55330 1 75-466-0050 18604 SIMONET DR NW ELK RIVER MN 55330 RULE, BONITA L 18604 SIMONET DR NW ELK RIVER MN 55330 2 2 75-466-0190 18645 SIMONET DR NW ELK RIVER MN 55330 WALLER, JOSEPH G & FRANK, TANYA L 18645 SIMONET DR NW ELK RIVER MN 55330 2 2 75-466-0130 18593 SIMONET DR NW ELK RIVER MN 55330 KREUSER, DANIEL P &JODY 18593 SIMONET DR NW ELK RIVER MN 55330-1132 1 1 75-466-0160 18621 SIMONET DR NW ELK RIVER MN 55330 LINDBERG, LANCE 18621 SIMONET DR NW PO BOX 877 ELK RIVER MN 55330-0877 2 75-466-0030 18648 SIMONET DR NW ELK RIVER MN 55330 SNETSINGER, JAMES L&CHERYL L 18648 SIMONET DR NW ELK RIVER MN 55330 1 1 75-426-0230 1943 6TH LN NW ELK RIVER MN 55330 PETERSON, ROBERTA L 1943 6TH LN NW ELK RIVER MN 55330 1 75-466-0020 18660 SIMONET DR NW ELK RIVER MN 55330 18660 SIMONET DRIVE NW LLC C/O JACOB NELSON 830 W MAIN ST ANOKA MN 55303 1 1 75-426-0220 1933 6TH LN NW ELK RIVER MN 55330 MCCHESNEY, JOANNE - REVOCABLE TRUST 19336TH LN NW ELK RIVER MN 55330 1 75-466-0070 18586 SIMONET DR NW ELK RIVER MN 55330 BUECHLER, JOHNS 18586 SIMONET DR NW ELK RIVER MN 55330 2 2 75-466-0140 18603 SIMONET DR NW ELK RIVER MN 55330 SCHMIT, TIMOTHY J & LISA M 18603 SIMONET DR NW ELK RIVER MN 55330 2 75-466-0010 18670 SIMONET DR NW ELK RIVER MN 55330 SMITH, VAUGHN F & MICHELE 18670 SIMONET DR NW ELK RIVER MN 55330-1135 1 75-466-0230 18679 SIMONET DR NW ELK RIVER MN 55330 HALL, GEORGIANNE M 18679 SIMONET DR NW ELK RIVER MN 55330-1134 1 75-132-1200 13161 US HIGHWAY 10 NW ELK RIVER MN 55330 ON THE SHORES LLC 6500 LABEAUX AVE N G040 ALBERTVILLE MN 55301 1 1 75-132-1111 18816 BOSTON ST INW ELK RIVER MN 55330 PEPEK MCULLOUGH, LIANE-TRUSTEE 18816 BOSTON ST NW ELK RIVER MN 55330 1 1 75-498-0120 12891187TH CIR JNW ELK RIVER MN 55330 BUTTWEILER, EDWARD&RICKIE - TRUST 12891187TH CIR NW ELK RIVER MN 55330 2 2 75-767-0110 18862 CONCORD ST JNW ELK RIVER MN 55330 HULSE, ANDREW & BUNCH-HULSE, GAY E 18862 CONCORD ST NW ELK RIVER MN 55330 1 1 75-426-0210 19106TH LN NW ELK RIVER MN 55330 WEITNAUER, ANDREW 19106TH LN NW ELK RIVER MN 55330 1 75-626-0146 0 0 LAKE ORONO TWINHOM ES ASSOC. I NC. 280 EVANS AVE ELK RIVER MN 55330 2 2 2 1 1 1 1 2 1 1 2 2 1 2 2 1 2 2 1 1 1 2 1 2 2 2 1 2 1 2 1 1 2 1 1 2 2 2 1 1 2 1 1 2 1 2 2 2 1 1 2 2 1 2 2 1 2 2 2 2 1 2 75-535-0230 1797 TIPTON CIR NW SUITE 111 ELK RIVER MN 55330 BERGETH, ROBERT & STEINER-BERGETH,B 1797 TIPTON CIR NW STE 111 ELK RIVER MN 55330 75-535-0235 1797 TIPTON CIR NW SUITE 113 ELK RIVER MN 55330 JARMOLUK, SCOTT M & PATTI L 1797 TIPTON CIR NW STE 113 ELK RIVER MN 55330 75-535-0225 1797 TIPTON CIR NW SUITE 109 ELK RIVER MN 55330 TRUNNELL, MICHAEL & MARY 1797 TIPTON CIR NW N 109 ELK RIVER MN 55330 75-535-0215 1797 TIPTON CIR NW SUITE 105 ELK RIVER MN 55330 FORBES, KATHLEEN 1797 TIPTON CIR NW STE 105 ELK RIVER MN 55330 75-535-0220 1797 TIPTON CIR NW SUITE 107 ELK RIVER MN 55330 HEBEISEN, DOUGLAS & SUSAN -TRUSTEE 1797 TIPTON CIR NW STE 107 ELK RIVER MN 55330 75-626-0144 13387 185TH LN NW ELK RIVER MN 55330 BISEK, JEROME H -TRUSTEE 5351161ST AVE NW ANOKA MN 55303 75-535-0205 1797 TIPTON CIR NW SUITE 101 ELK RIVER MN 55330 LARSON, LOU ANN M 1797 TIPTON CIR NW STE 101 ELK RIVER MN 55330 75-626-0142 13391185TH LN JNW ELK RIVER MN 553301 KINGSBORO, WILLIAM&CAROL -ETAL 13391185TH LN NW ELK RIVER MN 55330 75-626-0140 13395 185TH LN NW ELK RIVER MN 55330 SCHLOSSER, MARY E 13395 185TH LN NW ELK RIVER MN 55330 75-626-0136 13403 185TH LN NW ELK RIVER MN 55330 BLASKA, WILLIAM H & SHARON LTRUST 13403185TH LN NW ELK RIVER MN 55330 75-626-0122 13431 185TH LN NW ELK RIVER MN 55330 JOHNSON, HENRY ALFRED &JOLENE M 13431185TH LN NW ELK RIVER MN 55330 75-626-0118 13443 185TH LN NW ELK RIVER MN 55330 FRIESEN, ALAN 1 & PENNY L 13443 185TH LN NW ELK RIVER MN 55330 75-626-0132 13411 185TH LN NW ELK RIVER MN 55330 KLOSTREICH, DONALD E 13411185TH LN NW ELK RIVER MN 55330 75-626-0138 13399 185TH LN NW ELK RIVER MN 55330 KEITH, DONALD & MARY ANN 13399 185TH LN NW ELK RIVER MN 55330 75-626-0114 13451 185TH LN NW ELK RIVER MN 55330 HAYES, GEORGE D & AUDRY L 13451185TH LN NW ELK RIVER MN 55330 75-626-0130 13415 185TH LN NW ELK RIVER MN 55330 KURTH, RICHARD W 19650 IRONTON CIR NW ELK RIVER MN 55330 75-626-0120 13435185TH LN NW ELK RIVER MN 55330 EKEGREN,JEFFREY W&JULIE A 13435185TH LN NW ELK RIVER MN 55330 75-626-0124 13427185TH LN NW ELK RIVER MN 55330 JENSEN, ALLEN & JULIA A 13427185TH LN NW ELK RIVER MN 55330 75-626-0116 13447185TH LN NW ELK RIVER MN 55330 PERRIN BURTNESS, BEVERLY A - TRUST 13447185TH LN NW ELK RIVER MN 55330 75-626-0108 13463 185TH LN NW ELK RIVER MN 55330 HAUGDAHL, NANCY - TRUST 13463185TH LN NW ELK RIVER MN 55330 75-131-1450 13653 186TH AVE NW ELK RIVER MN 55330 OLSON, LINDA L 13653186TH AVE NW ELK RIVER MN 55330 75-131-1455 13631186TH AVE NW ELK RIVER MN 55330 SOLA, SUGURD & LILLIAN A 10519 E LAGUNAAZULAVE MESA AZ 85209 75-131-1435 0 0 RICKMAN, MICHAEL 1 & CAROL A -TRUSTE 1699 ST CLAIR AVE ST PAUL MN 55105 75-626-0106 13467 185TH LN NW ELK RIVER MN 55330 SWANSON,JAMES A & PATTI 13701185TH AVE NW ELK RIVER MN 55330-1607 75-626-0148 0 0 DHOOGE, DALE GERALD &JODIE LYN 18647 LANDER ST NW ELK RIVER MN 55330 75-717-0105 18660 LANDER DR NW ELK RIVER MN 55330 KINNEY, COLLEEN &JOHN B 18660 LANDER DR NW ELK RIVER MN 55330 75-131-1445 13701 186TH AVE NW ELK RIVER MN 55330 MANELLI, ANTONIO LUCIANO UMBERTO 13701186TH AVE NW ELK RIVER MN 55330 75-678-0260 18681 LANDER ST NW ELK RIVER MN 55330 BANACK, CHAD M &JACQUELINE P 18642 LANDER DR NW ELK RIVER MN 55330 75-678-0255 18684 LANDER DR NW ELK RIVER MN 55330 LYNAS, TERRI SUE 18684 LANDER DR NW ELK RIVER MN 55330 75-678-0135 18665 LANDER ST NW ELK RIVER MN 55330 ROCK, CHRISTOPHER D & KARI T 18665 LANDER ST NW ELK RIVER MN 55330 75-678-0040 0 0 FOX HAVEN HOMEOWNERS ASSOCIATION 18684 LANDER DR NW ELK RIVER MN 55330 75-132-2120 0 0 CENTRAL MN COUNCIL BOY SCOUTS OF AMERICA 1701 NINTH AVEN SAINT CLOUD MN 56303 75-132-2210 13530 ISLAND VIEW DR NW ELK RIVER MN 55330 WELDER, JOSEPH & WOLFF, BERNADETTE 4122 E CAPRI AVE MESA AZ 85206 75-132-2275 13360 ISLAND VIEW DR NW ELK RIVER MN 55330 KREUSER, CHAD M 13360 ISLAND VIEW DR NW ELK RIVER MN 55330 75-132-2235 13416 ISLAND VIEW DR NW ELK RIVER MN 55330 DRAXLER FAMILY LEGACY TRUST 13416 ISLAND VIEW DR NW ELK RIVER MN 55330 75-132-2245 13448 ISLAND VIEW DR NW ELK RIVER MN 55330 SANDENO, RANDALL S & LAURA 13448 ISLAND VIEW DR NW ELK RIVER MN 55330 75-132-2220 13470 ISLAND VIEW DR NW ELK RIVER MN 55330 GRUPA, RYAN S & KAREE 13470 ISLAND VIEW DR NW ELK RIVER MN 55330 75-132-2250 13400 ISLAND VIEW DR NW ELK RIVER MN 55330 STRUBLE, VINCENT& KAMI N 13400 ISLAND VIEW DR NW ELK RIVER MN 55330 75-132-2255 13384 ISLAND VIEW DR NW ELK RIVER MN 55330 BURLEY, RONALD & HARRIET REV TRUST 13384 ISLAND VIEW DR NW ELK RIVER MN 55330 75-132-1220 13330 ISLAND VIEW DR NW ELK RIVER MN 55330 WEIGHT, SANDRA 13330 ISLAND VIEW DR NW ELK RIVER MN 55330 75-678-0245 18672 LANDER DR NW ELK RIVER MN 55330 HICKMAN, LARRYS&FLORENCE ) 15612 JARVIS ST NW ELK RIVER MN 55330 75-132-2230 13514 ISLAND VIEW DR NW ELK RIVER MN 55330 JONES, ROBERT E 13514 ISLAND VIEW DR NW ELK RIVER MN 55330 75-132-2240 13538 ISLAND VIEW DR NW ELK RIVER MN 55330 PALMER, CATHERINE REVOCABLE TRUST 13538 ISLAND VIEW DR NW ELK RIVER MN 55330 75-132-2200 13546 ISLAND VIEW DR NW ELK RIVER MN 55330 OLSON, MICHAEL) & TERA B 13546 ISLAND VIEW DR NW ELK RIVER MN 55330 75-132-1211 13324 ISLAND VIEW DR NW ELK RIVER MN 55330 SCHUCHTER, ROBERT&JOANN- TRUTEE 13324 ISLAND VIEW DR NW ELK RIVER MN 55330 75-132-2205 13542 ISLAND VIEW DR NW ELK RIVER MN 55330 UNDENFELSER,TAMI C & BERG, D 135421DLAND VIEW DR NW ELK RIVER MN 55330 75-590-0020 18850 OGDEN ST NW ELK RIVER MN 55330 NEWBERGER, NICOLE E & MATTHEW S 18850 OGDEN ST NW ELK RIVER MN 55330 75-132-2110 13238 ISLAND VIEW DR NW ELK RIVER MN 55330 MELCHIOR, DAVID 1 & KRISTIN 13238 ISLAND VIEW DR NW ELK RIVER MN 55330 75-129-3325 13558 ISLAND VIEW DR NW ELK RIVER MN 55330 FOSTER, JAMES SETON 13558 ISLAND VIEW DR NW ELK RIVER MN 55330 75-590-0010 18862 OGDEN ST NW ELK RIVER MN 55330 HABERMAN, GALEN R 18862 OGDEN ST NW ELK RIVER MN 55330 75-129-3410 13230 ISLAND VIEW DR NW ELK RIVER MN 55330 BINSFELD, THOMAS & MICHELLE 13230 ISLAND VIEW DR NW ELK RIVER MN 55330 75-462-0240 13726 189TH AVE NW ELK RIVER MN 55330 PERSON, MARK R & LEONORA M 13726189TH AVE NW ELK RIVER MN 55330 75-623-0518 18674 QUEEN CIR NW ELK RIVER MN 55330 PARK, JUNG SOCK 18674 QUEEN Cl R NW ELK RIVER MN 55330 75-623-0514 18658 QUEEN CIR NW ELK RIVER MN 55330 CANFIELD, DANIEL & WEIS, KATIE 18658 QUEEN CIR NW ELK RIVER MN 55330 75-623-0520 18682 QUEEN CIR NW ELK RIVER MN 55330 KRUGER, KENDRA & DANIEL 18682 QUEEN CIR NW ELK RIVER MN 55330 75-623-0516 18668 QUEEN CIR NW ELK RIVER MN 55330 CASEMENT, RICHARD A 18668 QUEEN CIR NW ELK RIVER MN 55330 75-623-0522 1 18688 QUEEN ICIR NW ELK RIVER MN 55330 CHRISTIANSON, KENT1 & NICOLE K 118688 QUEEN CIR NW JELK RIVER MN 55330 75-623-0524 18696 QUEEN CIR NW ELK RIVER MN 55330 YEAGER, TIMOTHY E & CAREYA 113209 SMART RD BRAINERD MN 56401-6464 75-462-0220 13800 189TH AVE NW ELK RIVER MN 55330 ANDERSON, ROBERT A & HEIDI 113800189TH AVE NW ELK RIVER MN 55330 75-462-0215 0 0 SCDERBERG, JOHN &BIANCHI, GEORGEANN 13842 189TH AVE NW ELK RIVER MN 55330 75-462-0225 13776 189TH AVE NW ELK RIVER MN 55330 BOEKLEY, KATHLEEN L 13776189TH AVE NW ELK RIVER MN 55330 75-462-0165 13862 189TH AVE NW ELK RIVER MN 55330 DUGGAN, RICHARD & NANCY 113862 189TH AVE NW ELK RIVER MN 55330-1002 139 258 Signature Required=130 1 75-462-0235 13742 189TH AVE NW ELK RIVER MN 55330 CUNDI FF, SCOTT 13742189TH AVE NW ELK RIVER MN 55330 1 75-462-0140 13866 189TH AVE NW ELK RIVER MN 55330 BERGSTROM, SUSAN 13866189TH AVE NW ELK RIVER MN 55330 2 75-402-0210 1766 5TH ST NW ELK RIVER MN 55330 SHEETS, PAUL D & HELLING, CHARLENE 1766 5TH ST NW ELK RIVER MN 55330 1 75-411-0550 1721 5TH ST NW ELK RIVER MN 55330 CORROW,JEAN 17215TH ST NW ELK RIVER MN 55330 2 2 75-411-0540 1713 5TH ST NW ELK RIVER MN 55330 BLESENER, CHARLES & KATHLEEN 1713 5TH ST NW ELK RIVER MN 55330 1 75-535-0260 0 0 BAILEY BECK HOMEOWNERS ASSOC 2 2 75-466-0180 18637 SIMONET DR NW ELK RIVER MN 55330 SCALISE, PETER & JACKI 18637 SIMONET DR NW ELK RIVER MN 55330 1 1 75-132-2400 13291 US HIGHWAY 10 JNW ELK RIVER MN 553301 ENRIGHT, JAMES& DARLENE REVTRUST 1141542ND ST SE CLEAR LAKE MN 55319 2 75-466-0200 18663 SIMONET DR NW ELK RIVER MN 55330 NELSON, KIM M & MARY 18663 SIMONET DR NW ELK RIVER MN 55330-1134 2 2 75-498-0140 12884 187TH CIR NW ELK RIVER MN 55330 FULLER, DAVID & KAY 12884187TH CIR NW ELK RIVER MN 55330 2 75-767-0105 18872 CONCORD ST NW ELK RIVER MN 55330 MOLITOR, BRUCE & SQUIERS, DORIS 18872 CONCORD ST NW ELK RIVER MN 55330 2 2 75-465-0630 18880 CONCORD ST NW ELK RIVER MN 55330 CARLSON, BENJAMIN & KRISTA 18880 CONCORD ST NW ELK RIVER MN 55330 1 75-130-4415 0 0 MODERN CONSTRUCTION OF MN INC 637 MAIN ST NW STE A ELK RIVER MN 55330 2 2 75-465-0470 18920 CONCORD ST NW ELK RIVER MN 55330 ZEHRINGER, VANCE & BETTY 18920 CONCORD ST NW ELK RIVER MN 55330-1120 2 2 75-469-0010 13194 ISLAND VIEW DR NW ELK RIVER MN 55330 MI KOLS, TONY & PATRICIA 13194 ISLAND VIEW DR NW ELK RIVER MN 55330-1122 2 2 75-129-3415 13216 ISLAND VIEW DR NW ELK RIVER MN 55330 ROBINSON, CHRISTOPHERI.R.&BRIANA 13216 ISLAND VIEW DR NW ELK RIVER MN 55330 1 75-469-0120 13038 ISLAND VIEW DR NW ELK RIVER MN 55330 LUCAS, ROBERT REVOCABLE TRUST 13038 ISLAND VIEW DR NW ELK RIVER MN 55330 2 2 75-411-0640 1706 MAIN ST NW ELK RIVER MN 55330 GRANROS, DONN R & VICKI C 1706 MAIN ST NW ELK RIVER MN 55330-1831 1 75-411-0560 1731 5TH ST NW ELK RIVER MN 55330 MAROHN, HARLEYA 17315TH ST NW ELK RIVER MN 55330 2 2 75-132-1110 18810 BOSTON ST NW ELK RIVER MN 55330 SORENSEN, GREGORY &JENNIFER 18810 BOSTON ST NW ELK RIVER MN 55330 1 2 75-413-0220 1958 MAIN ST NW ELK RIVER MN 55330 BURY, EDWARD & KRISTIN JARMOLUK 1958 MAIN ST NW ELK RIVER MN 55330 2 2 75-413-0440 1836 MAIN ST NW ELK RIVER MN 55330 JOHNSON, KARL R & COX, CHRISTINE L 1836 MAIN ST NW ELK RIVER MN 55330 2 2 75-413-0240 1946 MAIN ST NW ELK RIVER MN 55330 HAGLUND, BRIAN 1 & KRISTINE 1946 MAIN ST NW ELK RIVER MN 55330 1 75-413-0310 1932 MAIN ST NW ELK RIVER MN 55330 BURGOYNE, JAMES A 1932 MAIN ST NW ELK RIVER MN 55330-1728 1 2 75-413-0520 1820 MAIN ST NW ELK RIVER MN 55330 MCKEOWN, WILLIAM G SR&DEBBIE L 1820 MAIN ST NW ELK RIVER MN 55330 1 75-413-0530 1808 MAIN ST NW ELK RIVER MN 55330 BISCHOEN PROPERTIES LLC 1895 MEADOWVIEW RD BLOOMINGTON MN 55425 2 75-413-0430 1844 MAIN ST NW ELK RIVER MN 55330 JUDE, VIVA JEAN & H 1844 MAIN ST NW ELK RIVER MN 55330-1726 2 2 75-426-0240 1953 6TH LN NW ELK RIVER MN 55330 JOHNSON, DAVID & MORRIS, ANN 1953 6TH LN NW ELK RIVER MN 55330 2 2 75-413-0320 1920 MAIN ST NW ELK RIVER MN 55330 DENUCCI, DANIEL & LAUREN 1920 MAIN ST NW ELK RIVER MN 55330 2 75-466-0082 18570 SIMONET DR NW ELK RIVER MN 55330 ERICKSON, ERIC & CAROL 18570 SIMONET DR NW ELK RIVER MN 55330-1133 1 75-402-0192 1903 6TH LN NW ELK RIVER MN 55330 FRANK, ANNA MAE 1903 6TH LN NW ELK RIVER MN 55330 2 2 75-466-0170 18629 SIMONET DR NW ELK RIVER MN 55330 BUNCE, NATHANIEL & MICHELE L 18629 SIMONET DR NW ELK RIVER MN 55330 2 75-466-0060 18636 SIMONET DR NW ELK RIVER MN 55330 NELSON, JACOB M & LORI A 18636 SIMONET DR NW ELK RIVER MN 55330 2 2 75-498-0130 12888 187TH CIR NW ELK RIVER MN 55330 COOPER, ROBERT& ANDREA 12888187TH CIR NW ELK RIVER MN 55330 1 75-535-0110 1790 TIPTON CIR NW ELK RIVER MN 55330 OWENS, ROBERT MELVIN 1790 TIPTON CIR NW ELK RIVER MN 55330 2 75-465-0670 18822 BOSTON ST NW ELK RIVER MN 55330 WATZKE, MICHAEL & LUANN 18822 BOSTON ST NW ELK RIVER MN 55330-1195 1 75-131-1440 13707 185TH AVE NW ELK RIVER MN 55330 ROYAL OAKS REALTY, INC 1000 COUNTY ROAD E W STE 150 SAINT PAUL MN 55126-8089 2 2 75-458-0110 12967 ORONO RD NW ELK RIVER MN 55330 HELLE, AARON&JAYMIE 12967 ORONO RD NW ELK RIVER MN 55330 1 1 75-413-0330 1912 MAIN ST NW ELK RIVER MN 55330 DUBAY, ROMONA M 1912 MAIN ST NW ELK RIVER MN 55330 1 75-458-0210 12911 ORONO RD NW ELK RIVER MN 55330 MORTENSEN, KARL N 12911 ORONO RD NW ELK RIVER MN 55330-1741 2 75-458-0165 18390 BOSTON ST NW ELK RIVER MN 55330 LORD, CHRISTOPHER A&JEANINEM 18390 BOSTON ST NW ELK RIVER MN 55330 1 75-458-0120 12943 ORONO RD NW ELK RIVER MN 55330 DILLEY, ROBERT 12943 ORONO RD NW ELK RIVER MN 55330-1789 1 75-458-0160 1 184021 BOSTON IST NW I ELK RIVER MN 55330 DIRKES, DAVID A &JUDITH A-TRUSTEES 118402 BOSTON ST NW ELK RIVER MN 55330 2 2 75-132-4110 0 01 BAYERL, RANDOLPH L & SUSAN 1 112860 ORONO RD NW ELK RIVER MN 55330 1 1 75-465-0460 18930 CONCORD ST JNW ELK RIVER MN 55330 ANDERSON, LLOYD 18930 CONCORD ST NW ELK RIVER MN 55330 1 1 75-413-0110 1980 MAIN ST NW ELK RIVER MN 55330 JARMOLUK LIVING TRUST 1980 MAIN ST NW ELK RIVER MN 55330 2 2 75-132-4100 12808 ORONO RD ELK RIVER MN 55330 STRITESKY, GARY & DIANE 112808 ORONO RD ELK RIVER MN 55330 139 258 Signature Required=130 30 Legend OLID Parcels (188) Tax Exempt (10) Lake Orono Local Roads 0 437.5 875 1,750 2,625 Source: Lake Orono Water Quality Committee Date: 4-10-2019 29 Note - Entire area is within T33N, R26W L 5 1 4 � Feet 3,500 N W+E 5 DEPARTMENT OF NATURAL RESOURCES May 23, 2019 John Dietz, Mayor Elk River City Council City of Elk River 13065 Orono Parkway Elk River, MN 55330 MINNESOTA DEPARTMENT OF NATURAL RESOURCES CENTRAL OFFICE 500 LAFAYETTE ROAD, BOX 25 SAINT PAUL, MN 55155 651-296-6157 888-646-6367 Re: DNR Advisory Report on the Formation of the Lake Orono Improvement District in Sherburne County Dear Mayor Dietz and City Council Members: I am writing to inform you that the Minnesota Department of Natural Resources (DNR) has reviewed the petition submitted to create the Lake Orono Improvement District (LID) and prepared this Advisory Report in accordance with Minnesota Rules, part 6115.0970, subp. 5. We conclude that: • we approve of the proposed boundary for the Lake Orono LID for the purposes of dredging, lake drawdowns, aquatic plant management, in -lake water quality projects, and shoreline projects; and • we recommend that the LID proposers work with the DNR, along with the MPCA, Elk River Watershed Association, Sherburne County Soil and Water Conservation District (SWCD), and other local and regional partners on larger watershed projects as is feasible. Goals of the Proposed Lake Improvement District The goals of the Lake Orono LID, as stated in the LID proposal, are to manage water quality, sedimentation, existing aquatic invasive species (AIS), nuisance vegetation, algae, and to be positioned to cope with future AIS threats. To attain these goals, the LID proposes to engage in the following projects: • Investigate the feasibility for dredging and a partial lake drawdown and carry out those actions. • Dredge approximately 130,000 cubic yards of sediment from Lake Orono to return it to its historic baseline depth. • Manage the invasive aquatic plant curlyleaf pondweed (CLP, Potamogeton crispus), as well as other detected AIS. • Manage native plants and algae if they increase to nuisance levels. • Improve water quality by reducing excessive nutrients in the lake. • Undertake lake research projects and other lake management projects as future needs arise. Background Information on Lake Orono 1. Lake Orono (Lake ID Number 71001300) is classified as General Development (GD). Per the Elk River's Shoreland Overlay District, GD lakes have structure setbacks of 50 and 75 feet above the Ordinary High Water Level (OWHL) for sewered and unsewered properties, respectively. 2. Lake Orono has an area of approximately 300 acres, almost all (94%) of which is considered to be littoral (15 feet deep or less per Minnesota Rules, part 6280.0100, sub 9). Generally, the littoral DNR Advisory Report on Lake Orono Lake Improvement District Page 1 zone is the part of a lake where rooted aquatic plants can grow, though the maximum depth at which plants can grow depends on water clarity and so varies from lake to lake and even from year to year within the same lake. Lake Orono's maximum depth is 18 feet, and its current mean depth is 3.1 feet, although the historic mean depth is approximately 5 feet.' 3. The lake is a reservoir of the Elk River, created when a dam was constructed on the river in 1916. Water outlet level is maintained by the City of Elk River at 871 feet MSL. 4. Lake Orono is at the downstream end of the Elk River watershed. The immediate catchment has an area of approximately 5,943 acres, and the total upstream watershed has an area of approximately 388,456 acres, or 611 square miles. These yield land:lake ratios of approximately 9.8:1 for the direct catchment and 1,295:1 for the total watershed. 5. Agriculture covers almost half the area in the upstream watershed. Pasture and grazing land cover about 18% and row crops 27% of the watershed area. Forest, almost entirely deciduous, covers approximately 20%2. 6. Both basins of Lake Orono are considered to be impaired for mercury, water clarity, and nutrients. 7. The Elk River Watershed has multiple impairments in various lakes and along various stretches of the river. The water quality impairments on the Elk River all have a target Total Maximum Daily Load (TMDL) completion year of 2023, and consist of three bacteria (E. coli), two fish, and one aquatic macroinvertebrate bio -assessments. 8. In 2015, a TMDL was completed for Upper and Lower Lake Orono as part of the Mississippi River St. Cloud (MRSC) Watershed Restoration and Protection Strategy (WRAPS) and TMDL project (https://www.pca.state.mn.us/sites/default/files/wq-iw8-46e.pdf). The second cycle of the WRAPS process for the MRSC watershed began in May 2019. Through the WRAPS process, partners throughout the watershed will be working together to further evaluate the MRSC watershed and continue the ongoing efforts to restore and protect its surface water resources. This effort will include the review of existing and development of new restoration strategies within the Elk River Watershed (e.g., TMDL development and evaluation of implementation efforts for existing TMDLs). 9. Lake Orono is in the North Central Hardwoods Forest Ecoregion. The lake's water quality parameters are outside the means for this ecoregion, with water clarity lower and chlorophyll -a and total phosphorus higher than the means. 10. Lake Orono is considered to be eutrophic. The mean Trophic State Index (TSI) for Lake Orono is 61; values from 50 to 60 are considered to be mildly eutrophic and higher values are eutrophic. 11. Lake Orono is infested with curlyleaf pondweed (CLP), an aquatic invasive plant. In addition, the invasive emergent plants purple loosestrife (Lythrum salicaria) and yellow iris (Iris pseudacorus) grow along the lake's shoreline. 12. The City of Elk River maintains a concrete boat ramp in Lake Orono Park, on the western shore just south of US Hwy 10. A public fishing pier and public beach are located south of the boat ramp. 13. The proposed LID will include all properties with direct or deeded lake access. 14. The proposed method of the LID formation is by city resolution in response to citizen petition. 1,2 Lake Orono Lake Management Plan 2017-2020 DNR Advisory Report on Lake Orono Lake Improvement District Page 2 Issue Analysis Sedimentation Lake Orono is a reservoir at the downstream end of the Elk River, and receives approximately 3 to 7 million pounds of sediment' from the Elk River watershed each year, resulting in a net deposition of approximately 8000 cubic yards of sediment annually3. This reduces the overall depth of the lake and reduces navigation, aquatic recreational opportunities, and user safety in the lake, and covers vegetation, rocks and gravel, and other underwater structures important for vegetation and wildlife. In 1998, approximately 120,000 cubic yards of sediment was removed from Lake Orono. However, given the lake's position at the bottom of a large, heavily agricultural watershed, sedimentation will continue to be a problem for the lake and dredging to remove excess sediment and restore lake depth will need to be conducted periodically. The study that formed the basis for the sedimentation removal project in 1998 predicted that sediment removal would need to be undertaken again in approximately 20 years, and that prediction has proven accurate. Over the past two decades, mean lake depth has been reduced from 5 feet to approximately 3.1 feet. To restore lake depth to its state after the last dredging activity, the LID proposes to remove approximately 130,000 cubic yards of material. The proposal also states that the dredged sediments will be reused, and it proposes to create a deeper water (up to 10 feet in depth) area near the lake inlet to trap and store sediment. Water levels in the lake may be temporarily lowered by opening the dam to facilitate sediment removal. Sedimentation studies by Wenck Associates suggest that the rate of sedimentation has increased slightly over the past twenty years. In 2011, sedimentation rates were calculated to be approximately 6400 to 6900 cubic yards of sediment, while accumulation rates since 2011 seem to be approximately 8000 cubic yards. This may be the consequence of more accurate and more comprehensive data collection since 2011, or it could reflect an actual increase in sediment accumulation in Lake Orono. Water quality and water flow modeling by the Sherburne County Soil and Water Conservation District suggests that total suspended solids (TSS) in the watershed increased dramatically between 2009 and 2016, due to increased precipitation; this could have been the source of the apparent increase in sedimentation. MPCA is planning to conduct an intensive water quality monitoring program in the Mississippi River St. Cloud watershed, and the information gathered in this program may better address this question. Sedimentation is a known, expected, and predictable ongoing problem for reservoirs such as Lake Orono. The only choices are: 1) let the lake fill in, 2) modify the dam to reduce head and allow more sediment to be transported downstream, 3) stop the sediment upstream of Lake Orono, or 4) periodically remove accumulated sediment. The LID has determined that the periodic removal of sediment is the most practical solution for Lake Orono at this time. The lake management plan states that the removed sediment will be reused. The removed sediment will likely contain curly pond leaf (CLP) turions, and therefore should be used only in upland areas so the turions cannot be introduced into a new water body. The activities proposed to address this lake problem are heavily regulated and require several permits: • Any sediment removal below the OHWL requires a DNR Public Waters (PW) permit, Minnesota Pollution Control Agency (MPCA) sediment disposal permits, and other applicable permits. • Lake drawdowns require consent of at least 75% of affected landowners, a permit amendment, and are regulated under Minnesota Statutes § 103G.408. 3. 2010 Wenck Associates Report on Lake Orono Sedimentation Study. DNR Advisory Report on Lake Orono Lake Improvement District Page 3 The LID will need to work closely with: • DNR Area Fisheries Supervisor Joe Stewig (joe.stewig@state. mn.us, 320-223-7867) for guidance on minimizing impacts to flora and fauna from the drawdown, dredging, water level restoration, and related activities. • DNR Area Hydrologist James Bedell (lames.bedell@state.mn.us, 320-223-7850) for overall guidance on the activities and PW permits. • DNR Dam Safety Program Supervisor Jason Boyle (iason.boyle@state.mn.us, 651-259-5715) for guidance on any activities requiring operation of the dam. • US Army Corps of Engineers (USACE) and Board of Water and Soil Resources (BWSR) for guidance and to clarify applicable standards. • The MPCA on permits to ensure the safe and appropriate disposal of dredged sediment. • The City of Elk River on the drawdown, sediment removal, and sediment disposal work. Both the City of Elk River and various individuals associated with Lake Orono Improvement Association and the Lake Orono Water Quality Committee have experience with these activities from the lake's first sediment removal in 1998, and the DNR is encouraged by this experience and previous success. MN DNR also notes that Upper Orono, the area with the greatest amount of sediment deposition, n1cn hac tha mnct nhiinrlan+ r1 Q Tho rI�IR nvnnr+c +ho I Irl �nii +hof +i n� GIL Qiior +.. rc.n7 ., dredging contractors to take every sensible precaution to avoid spread of the CLP plants or turions during these operations. The proposers should consult with the DNR Aquatic Invasive Species Program staff for further guidance on avoiding CLP spread from dredging and sediment. • The Lake Orono Water Quality Committee proposes to extend the time span between sediment removal projects from the current expected 20 years to at least 30 years. This will be challenging because most of the sediment comes from the upstream watershed. Since this area is outside of the LID boundary, there is very little that the LID can do directly. However, the Lake Orono Water Quality Committee is working closely with several other groups that have more direct opportunities to promote Best Management Practices (BMPs) in the upstream watershed and reduce sediment loading. MN DNR encourages the LID to continue with these partnerships. The LID also proposes projects besides dredging to reduce sediment input to the lake. Available data suggest that total suspended solids (TSS) contribution from the area immediately surrounding Lake Orono is minor; however, it is easy for the LID to directly pursue sediment reduction projects in this area. Such projects would consist of encouraging property owners to plant native vegetation and vegetative buffers along the shoreline to reduce runoff into the lake. The DNR encourages the LID to promote these projects among the LID's members. The City of Elk River can also engage in actions to reduce the sediment load in city runoff carried by drainage ditches into the lake. These actions may include continuing its practice of dredging material accumulated in front of drainage areas and sweeping the streets near the lake regularly, especially before forecast storm events. The LID will also educate citizens on the importance of keeping lawn waste out of streets, ditches, and areas prone to runoff. The DNR would like to remind the LID proposers that increased precipitation, and particularly an increase in more intense rainfalls and storms, is predicted for Minnesota due to climate change. The observed increase in precipitation (and accompanying increase in TSS) could be part of this predicted trend. The DNR encourages the LID proposers to continue to monitor TSS and water flow into and out of Lake Orono so this question can be explored further. The DNR also encourages the LID proposers to take into account DNR Advisory Report on Lake Orono Lake Improvement District Page 4 the predicted more intense rainfalls when planning sedimentation removal projects, because such rainfall patterns will increase TSS, and therefore sediment accumulation, in Lake Orono. Invasive Plants Management Lake Orono has three invasive plant species: the submersed plant curly -leaf pondweed (CLP) and two emergent plants, purple loosestrife and yellow iris. CLP has been present in the lake since 2003 and currently covers approximately 33% of the lake. The LID proposes to reduce abundance of CLP with herbicide applications and possibly mechanical removal. The two emergent aquatic invasive species, purple loosestrife and yellow iris, can be managed by manual removal and replacement with native wetland plantings and shoreline vegetation restoration. Herbicide treatment of CLP started in 2017 and was repeated in 2018. In 2017, 4.27 acres were treated, and in 2018, 22 acres were treated. CLP was found at a far lower frequency in 2018 than in 2017 (35% of the littoral zone vs. 71% of the littoral zone). With so few data points, no conclusions can be drawn. Pesticide treatments also may not be as effective if flow rates are high and the pesticides move downstream. Therefore, timing and concentration exposure time is essential when considering a pesticide treatment. Full lake point intercept surveys of aquatic vegetation in Lake Orono have been conducted in May 2012, by MN DNR staff, and in 2017 and 2018 (early June to evaluate CLP, and July to evaluate the native plant community) by a private consultant. The 2012 DNR survey was conducted to learn the extent of CLP, while the two later surveys were conducted to assess the native aquatic plant community in addition to CLP. The 2012 DNR survey found CLP at 14% of sampling points, and the 2017 and 2018 surveys found higher occurrences of CLP. The July surveys found aquatic plant growth at 46% and 72% of points sampled, with 18 to 22 native species. The surveys found plants to a maximum depth of 8 feet in 2017 and 5.5 feet in 2018, with the vast majority between 3 and 5 feet. The dominant native plant species are coontail (Ceratophyllum demersum), 'common waterweed' (Elodea canadensis) and duckweeds. The DNR notes that the dredging and partial lake drawdown, which are expected to be implemented as soon as 2019-2020, may have a profound effect on the distribution and abundance of CLP. Additional CLP plants and turions would be removed during sediment dredging. The DNR notes that the heaviest CLP growth occurs in Upper Orono, where most sediment deposition occurs and which will be most heavily dredged. If done properly, the dredging could help to alleviate the CLP abundance. The proposed lake drawdown could also help to reduce CLP. A winter drawdown would expose sediments to freezing and kill many of the exposed plants and turions, likely reducing the "seed bank" for CLP. Areas that do not maintain a hard freeze may be more suitable for pesticide treatments. It is important to note that, while a winter drawdown would freeze out CLP, it can also have an undesirable effect on other plants as well as hibernating animals. Drawdowns should be timed to avoid or minimize these effects, especially any possibility of taking endangered or threatened species, or impacting Species of Special Concern. The DNR suggests that the LID re-evaluate the lake's vegetation community after any drawdown and dredging, then base its vegetation management activities on the new community structure. The drawdown and dredging may significantly reduce the need for herbicide application. In addition, CLP has unique life history patterns (emergence and growth early in the spring, followed by midsummer senescence) that must be taken into account when treatments and monitoring surveys are conducted. DNR Advisory Report on Lake Orono Lake Improvement District Page 5 Any AIS management should be accompanied by regular lake vegetation surveys, and with the guidance of the DNR's Aquatic Invasive Species Program. It is important to recognize that although CLP is invasive, this plant is still beneficial to fish and wildlife, especially in the early spring when it may be the only plant that can provide cover, habitat, and foraging areas. A balance of managing plant communities and nuisance vegetation should be carefully considered. Overall, lakes need aquatic vegetation for a variety of ecological purposes and it would not be favorable to remove the majority of vegetation without implementing restoration efforts, especially if the stated goals are to improve wildlife habitat, improve algal growth, promote fishing, reduce erosion, and improve water quality. Some vegetation is preferable to no vegetation, even if that vegetation is CLP. The petition also states that the LID will engage in additional actions to monitor, manage, and prevent additional AIS infestations. These actions include contracting for AIS inspections at the public boat landing, educating property owners and lake users about AIS detection and prevention. The DNR strongly supports these practices. The most efficient way to manage AIS is to address it early, before it rises to nuisance levels. Eurasian watermilfoil (Myriophyllum spicatum; EWM) is present in four basins in Lake nrnnn'c iinctraam watarcharl [Ria Faala I ittla File and Mitrhall I nleac• all in rhorhimno r'niintvl cn FSA/nn could get into Lake Orono as well. The DNR encourages the LID to work with the City of Elk River, Sherburne County, and local DNR Watercraft Inspection Program staff to promote these additional activities. The DNR cautions the proposers that AIS growth is lower than it could be. Most of the lake is less than 15 feet deep, and therefore theoretically capable of having vegetation growth. Current vegetation distribution is limited by the lake's low water clarity, but if water quality improves and clarity increases, it may spark increased vegetation growth, including CLP. If this occurs, the LID should remember that this may be a consequence of improved water quality and not necessarily negative. The LID should therefore continue to work very closely with the DNR Aquatic Invasive Species Program to ensure that any AIS management remains in balance with overall water quality improvement goals. The LID should contact the local Aquatic Invasive Species specialist Christine Jurek (christine.iurek@state.mn.us, 320-223-7847) for further guidance on AIS management. Native Vegetation Management The LID proposes to manage native aquatic vegetation and algae, should these rise to nuisance levels. The DNR recognizes that management of nuisance levels of native vegetation is sometimes necessary for navigation or recreational purposes, but in Lake Orono, reduction of native plant overgrowth may not be necessary or beneficial. The majority of the areas where plant growth is common are areas that are less than five feet in depth and are not ideal for recreation due to these shallow depths. These areas should be maintained for habitat instead. In addition, the removal of native aquatic plants may result in more algal growth and an increase in turbidity in the water and is thus inconsistent with plans to reduce algae proliferation and improve water quality. The dredging plans may also have adverse impacts on the lake's native plant community. Many of the areas targeted for dredging may include floating -leaf or emergent vegetation that provides high quality DNR Advisory Report on Lake Orono Lake Improvement District Page 6 wildlife habitat. The LID should work with the DNR's Aquatic Plant Management Program to survey aquatic and wetland plants in the areas under consideration for dredging and come up with a strategy to avoid or minimize destruction of desirable native vegetation due to dredging activity, and to design restoration projects in dredged areas where harm to native vegetation cannot be avoided. Lake Orono has several complex and interrelated problems, and measures taken to address these problems will have impacts on the lake's native vegetation. These include impacts from dredging, drawdowns, and herbicide treatment or mechanical removal of CLP. Balancing all of these measures while protecting the integrity of the aquatic vegetation community will be very challenging, but necessary. The DNR strongly encourages the LID to include consideration of the impacts of all of these problems and their proposed solutions on the vegetation, and propose a viable strategy to protect or restore the native vegetation community from the consequences of these solutions, in any Lake Vegetation Management Plan that it adopts. Water Quality Lake Orono is eutrophic, with elevated total phosphorus concentrations and low water transparency. Mean summertime TP is around 100-111 µg/L, and mean Secchi depth is about 3.1 feet. Threshold values for lakes similar to Lake Orono in the same ecoregion (North Central Hardwood Forest Shallow Lakes) are considerably less: <60 µg/L TP, <20 pg/L chi -a, and >3.3 feet Secchi depth. According to the MPCA, internal nutrient recycling and nutrients from stormwater runoff are a small part of the lake's water quality problems. Four sediment cores collected and analyzed for phosphorus in 2018 showed one sample slightly above the median for Minnesota lakes; one within the lower 25% of values expected for Minnesota lakes; and two with no phosphorus release. These results support the hypothesis that most of the excess phosphorus comes from the watershed. Lake Orono has a very large watershed:lake ratio, most of which is agricultural or otherwise developed in some fashion. The watershed is itself considered impaired for water quality characteristics in numerous stretches. These characteristics increase the lake's vulnerability to pollution from the watershed. Because these phosphorus sources are largely outside the boundaries of the proposed LID, it will be challenging for the LID to remediate them; nevertheless, reducing phosphorus inputs from the watershed is the most effective way to help Lake Orono with its eutrophication problems. To achieve this goal, the DNR strongly encourages the LID to pursue any erosion control, landscaping and ecosystem restoration projects within the boundary of the LID, and to pursue partnerships and collaborations with private property owners, Sherburne County, the Sherburne County SWCD, BWSR, the Elk River Watershed Association, and the MPCA to indirectly influence those sources of phosphorus outside the LID's boundaries. According to the Orono Lake Management Plan, the Lake Orono Water Quality Committee (LOWQC) already has a long history of working with many of these groups to pursue water quality enhancement projects in the Elk River Watershed. The DNR also suggests that the LID undertake a survey to determine whether any septic systems on the lake are noncompliant and, if so, bring them into compliance. Noncompliant septic systems can be a significant contributor of nutrients to the lake. The high mercury concentration in fish tissue is being addressed with the Statewide Mercury TMDL. DNR Advisory Report on Lake Orono Lake Improvement District Page 7 Other The proposal includes a statement that the LID may restore, establish, or maintain upland vegetation buffers to enhance wildlife habitat and deter Canada geese. This is a suitable goal for the LID and the DNR supports it. In addition to wildlife benefits, buffers along the shoreline will also improve water quality as they trap runoff into the lake, reducing sediment, nutrients, chlorides, and other pollutants. Recommendations & Conclusions Proposed LID Boundaries The boundaries of the proposed LID include only properties with direct or deeded access to Lake Orono. Minnesota Rules, part 6115.0920, subp. 5 requires that the boundaries include all lands and waters within the direct drainage basin of the lake (shown on the attached map). However, the rules also allow the County Board or City Council to create a boundary less than the entire drainage basin with written Commissioner approval if the boundary selected includes a sufficient amount of the lake's watershed to develop and implement feasible solutions to the problems the LID intends to address. Restriction of the district's boundary to these properties is sufficient to address the in -lake and shoreline water quality and vegetation management activities for which the LID is being proposed. Therefore, in accordance with these rules, the DNR approves the proposed boundaries identified in the resolution. Advisory Comments & Recommendations As a reservoir at the bottom of a large and heavily developed watershed, Lake Orono has a chronic water quality and sedimentation problem, yet the causes of these problems largely lie outside the proposed LID boundary. The proponents of the LID appear to be aware of the complexity and magnitude of this problem, and are including in the proposal both projects that the LID can carry out directly within its boundaries, and projects outside the LID's boundaries that will require coordination and cooperation with other parties, including the Sherburne County SWCD, Elk River Watershed Association, DNR, other area lake associations, and the MPCA. The DNR is pleased that the LID proposers recognize and acknowledge the importance of working with these other groups, because it is unlikely that problems of the nature and magnitude of Lake Orono's sedimentation and eutrophication problems can be alleviated solely through in -lake and shoreline projects. The LID proponents have also worked very closely with a large number of city, DNR, and MPCA staff people to elicit feedback, comments, and suggestions on the LID's proposed projects and goals before proceeding with the LID formation process. This proactive work has resulted in a very well -thought out product. The DNR commends the proposers for their efforts in this regard, and encourages the LID to continue with these collaborations should the LID be approved. These partnerships are the most effective means of improving water quality and reducing sediment loading in Lake Orono. Finally, many of the proposed projects to address one problem may have adverse effects on other desirable aspects of the lake (e.g., drawdown and dredging will affect the native vegetation and wildlife). DNR Advisory Report on Lake Orono Lake Improvement District Page 8 Balancing and mitigating these effects will require ongoing collaboration with natural resource professionals. Thank you for consideration of these comments. Please contact Kathy Metzker, DNR Land Use Hydrologist, at kathleen.Metzker@state.mn.us or 651-259-5694 if you have any questions. If approved, please provide the name and address of the primary contact of the Board of Directors for the LID and remind the LID of its obligation to provide DNR notice of annual meetings and copies of annual reports per Minnesota Statutes, § 1036.571. Sincerely, DIVISION OF ECOLOGICAL AND WATER RESOURCES Steve Colvin Director, Division of Ecological and Water Resources Attachment Jennifer Shillcox, DNR Land Use Programs Supervisor James Bedell, DNR Area Hydrologist (Sherburne County) Christine Jurek, DNR Aquatic Invasive Species Specialist Daniel Petrik, DNR Land Use Specialist Jason Boyle, DNR Dam Safety Program Seth Goreham, MPCA North Central Watershed Unit Supervisor Phil Votruba, MPCA Project Manager -Mississippi -St. Cloud Watershed Audrey Kuchinski, DNR Aquatic Plant Specialist Joe Stewig, DNR Area Fisheries Supervisor Patrick Plant, Chair, Lake Orono Water Quality Committee Christy Cox, President, Lake Orono Improvement Association Calvin Portner, City Administrator Amanda Bednar, Environmental Coordinator, City of Elk River DNR Advisory Report on Lake Orono Lake Improvement District Page 9 1� �175ti1 1 _ � The watershed data presented here are part of the Dams 0 0.5 1 National Watershed Boundary [dataset (WBO) —1110- Flow Path R Hydrologic Unit (HU) is the smallest division in the nested. Catchment MII@S herarchtcal watershed classification system of the WBD. Electronic data for use in a GIS (Geographic Information System) Upstream Watershed N can be downloaded from the DNR Data Deli. http:Ndeli drinstate.mn.usl - Orono _z F= 1 Area Watershed Acns square Miles Lake Orono DOW lake No. 71001300 300 0.47 Direct Catchment Watershed Elk River 5943 9.3 Total Upstream Contributing Watershed 308458 fi07 MI u.;A T," I.cc,0norcc June 12, 2019 Amanda Bednar City of Elk River 13065 Orono Parkway Elk River, MN 55330 Dear Ms. Bednar, The Minnesota Department of Natural Resources (DNR) understands that, at the public hearing regarding the establishment of the proposed Orono Lake Improvement District (OLID), several residents living along 189th Avenue NW, at the upstream end of Lake Orono, stated opposition to their properties being included in the OLID boundary, and that the City of Elk River would like clarification from the DNR before the city makes its decision regarding establishment of the OLID. Specifically, you requested that we confirm whether the properties along 189th Avenue NW are affected by the operation of the reservoir. The DNR has concluded that the properties are in fact affected by the operation of the reservoir. Lake Orono is a reservoir created by a dam on the Elk River, and without the dam the lake would not exist in its current condition. Therefore, the DNR considers the upper extent of the reservoir to be the point at which the presence of the dam stops exerting a discernible influence on water levels at low flow conditions. Fortunately, the DNR has a hydraulic model for this stretch of water and we were able to use this model to determine what water levels look like under existing conditions, and what the water levels would look like if the dam were removed. Results indicate that the water levels abutting the properties on 189th Avenue NW would be significantly lower without the dam. Therefore, the DNR considers the waterbody abutting these properties to be part of Lake Orono. If you have any further questions please feel free to give me a call at 651-259-5694. Thinks, Kathy Metzker C: Jennifer Shillcox, DNR Land Use Programs Supervisor James Bedell, DNR Area Hydrologist (Sherburne County) Tom Hovey, DNR Water Regulations Unit Supervisor Jason Boyle, DNR Dam Safety Program Patrick Plant, Chair, Lake Orono Water Quality Committee Christy Cox, President, Lake Orono Improvement Association Calvin Portner, City Administrator Brandon Wisner, Stormwater Coordinator, City of Elk River Minnesota Department of Natural Resources • Ecological & Water Resources Box 25, 500 Lafayette Road, St. Paul, MN, 55155-4025 City of Elk River City of Elk River City Council Resolution 19- A Resolution of the City Council of the City of Elk River Making Findings of Fact and Approving an Order Establishing the Orono Lake Improvement District in the City of Elk River, Minnesota WHEREAS, the Lake Orono Water Quality Committee ("Applicant") has submitted a petition ("Application") to the city for the establishment of a Lake Improvement District to be known as the Orono Lake Improvement District (OLID) which would include properties along the shore of Lake Orono; and WHEREAS, the record in this matter shall include all of the materials submitted to the City Council in connection with the April 10, 2019, Application, including staff reports and all attachments thereto, all other written materials submitted to the City Council, and all staff presentations and other testimony taken at the public meetings and public hearings considering the Application, all of which is incorporated and made a part of the findings of fact and this resolution; and WHEREAS, the City Council held a work session on May 6, 2019, to receive information from city staff and the Applicant regarding Minnesota Statutes, Sections 103B.501 — 103B.581 and Minnesota Rules, Sections 6115.0900 — 6115.0980, which together sets forth the purpose, criteria, and standards for establishing lake improvement districts; and WHEREAS, per Minnesota Statutes, Section 103B.521, the Office of the City Clerk certified 143 property owner signatures out of 260 possible and determined that the petition to establish the OLID meets the required number of signatures and is valid; and WHEREAS, the City Council held a public hearing on June 3, 2019, to receive testimony and evidence from city staff, the Applicant, and any other persons regarding the Application; and WHEREAS, the Applicant and all others wishing to speak were given the opportunity to present testimony to the City Council; and WHEREAS, the City Council closed the June 3, 2019, public hearing on the Applicant's Application and directed staff to gather additional information regarding the Application, including information from the Minnesota Department of Natural Resources ("DNR") regarding the appropriate boundaries of the OLID, and continued the item to the June 17, 2019, City Council meeting; and WHEREAS, on June 12, 2019, the DNR responded to the city's request for a review of the proposed boundaries of the OLID and advised the city that the boundaries as proposed in the petition for the OLID are appropriate; and WHEREAS, the City Council held their meeting on June 17, 2019, to review the Application and all materials submitted for the public record, and to ask additional questions of city staff and the Applicant; and WHEREAS, the City Council, at the conclusion of its June 17, 2019, meeting on the Applicant's Application adopted this resolution making the following Findings of Fact and Decision and adopting the attached Order Establishing the Lake Orono Improvement District. NOW, THEREFORE, the City Council of the City of Elk River, Minnesota, makes the following findings of fact and decision with respect to the Petition by the Lake Orono Water Quality Committee for the establishment of a lake improvement district: FINDINGS OF FACT 1. Minnesota Statutes, Section 103B.515, Subd. 4, provides that a lake improvement district may be established if the City Council determines that: a. The proposed district is necessary or that the public welfare will be promoted by the establishment of the district; b. Property to be included in the district will be benefitted by establishment of the district; and c. Formation of the district will not cause or contribute to long-range environmental pollution. 2. The City Council finds that the proposed OLID is necessary and that the public welfare will be promoted by the establishment of the OLID because: a. The OLID will help achieve an equitable and stable ongoing funding means to manage water quality, sedimentation, existing aquatic invasive species (AIS), nuisance weeds, algae, and to be positioned to cope with future AIS threats; and b. The OLID will provide funds which will complement city, county, state, and Lake Association investments that alone are not sufficient; and c. The OLID could fund the expansion of curly -leaf pond weed remediation to all infested public and private areas lake -wide; and d. The OLID could improve water clarity and quality by pinpointing harm sources and implementing a reduction plan; and e. The OLID could help manage fisheries and habitat and maintain and improve their quality; and f. Establishing the OLID will help facilitate the proposed Lake Orono Restoration and Enhancement (LORE) Project; and g. Establishing the OLID will facilitate a comprehensive plan to monitor and improve water quality within the OLID as needed. 3. The City Council finds that property to be included in the OLID will be benefitted by establishment of the OLID because: a. Implementation of a comprehensive program will work to alleviate current ecological stressors and recreational impairment on Lake Orono; and b. Property owners within the OLID, and all Elk River residents, will enjoy a cleaner, clearer, safer -to -navigate lake that will provide better recreational opportunities and improve wildlife habitat; and c. A managed lake will maintain and improve property values as well as add to residents' enjoyment; and d. The OLID will leverage property owners' investment in their properties and the lake by providing an added way to be eligible for public grants; and e. The OLID will give property owners within the OLID the opportunity to participate in management and funding decisions regarding the lake. 4. The City Council finds that establishment of the OLID will not cause or contribute to long-range environmental pollution and improvements to water quality, reduction in invasive aquatic plants and encouragement of Best Management Practices for lakeshore owners contemplated by the OLID will, in fact, mitigate environmental pollution. 5. Therefore, the City Council finds that the proposed OLID meets the state statutory criteria for establishment. DECISION Therefore, the City Council of the City of Elk River adopts the attached Order Establishing Orono Lake Improvement District, based on the findings of fact set forth above. Passed and adopted this 171h day of June 2019. John J. Dietz, Mayor i ATTEST: Tina Allard, City Clerk i Order Establishing Orono Lake Improvement District This matter came before the Elk River City Council on June 17, 2019, on a petition to establish a lake improvement district for Lake Orono. The City Council, having considered the petition for a lake improvement district, the comments made at the public hearing held on June 3, 2019, the advisory report from the Department of Natural Resources and all other written comments submitted, makes the following Findings and Order. FINDINGS 1. The City of Elk River received a petition ("The Petition") on April 10, 2019, requesting the establishment of a lake improvement district for Lake Orono. 2. The signatures on the Petition have been verified by the Elk River City Clerk, and the Petition meets the requirements of Minnesota Statutes, Section 103B.521. 3. Notice of the June 3, 2019, public hearing on the Petition was published in the Star News on May 11 and May 18, 2019. 4. Notice of the public hearing was mailed to all property owners within the proposed Orono Lake Improvement District (OLID) on May 10, 2019. Notice of the public hearing was also emailed to the Minnesota Department of Natural Resources, Minnesota Pollution Control Agency, Minnesota Board of Water and Soil Resources and the Sherburne County Soil and Water Conservation District on May 9, 2019. 5. The Petition and supporting documents were made available to the public on the city's website and at Elk River City Hall. 6. Lake Orono is included on the Minnesota Pollution Control Agency's list of impaired waters for mercury contamination and for excessive nutrients. 7. Lake Orono has experienced chronic problems with aquatic invasive species, including curly leaf pondweed. 8. The reasons to create the OLID include: (1) Implement a comprehensive program to alleviate current ecological stressors and recreational impairment on Lake Orono, brought about by excessive aquatic invasive species, native plant overgrowth, algae proliferation, excess nutrients and sedimentation; (2) Maintain, restore or establish natural upland buffers to encourage wildlife, help prevent decline in species, deter Canada geese, and provide enjoyment for future generations; (3) Increase public awareness and use of Best Management Practices targeting the reduction of sedimentation, phosphorus and salt inputs from upstream and shoreline sources to Lake Orono; (4) Build the public perception and "brand" of Lake Orono as a quality recreation destination, valuable community asset and safe lake; (5) To maintain and improve water quality in Lake Orono; and (6) To obtain financial assistance through public land and private grants and other funding sources for these activities. 9. The property included within the boundaries of the lake improvement district will benefit by the establishment of the district. 10. The establishment of the lake improvement district is appropriate and will promote public welfare and will protect, preserve and improve the quality of the lake. ORDER Now therefore, the Elk River City Council hereby orders the establishment of a lake improvement district for Orono Lake as follows: 1. Name. The name of the lake improvement district shall be: Orono Lake Improvement District (OLID) 2. Boundaries. The boundaries of the OLID shall include all parcels as shown on Attachment A, which are the District Boundaries as determined by the Minnesota Department of Natural Resources (DNR) in accordance with Minnesota Statutes, Sections 103B.511 and 103B.535 and Minnesota Rules, Part 6115.0920, subparts 4 and 5. Programs and Services. The water and related land resource management programs and services that may be undertaken by the OLID include: a. Develop and implement a comprehensive plan to monitor and improve water quality within the OLID as needed; b. Apply for and receive public or private grants and/or enter into agreements with federal/state/local agencies or private contractors for the study and treatment of issues related to pollution, aquatic invasive species and water level related issues; c. Undertake research to determine the water quality within the OLID and coordinate and share such research with the Department of Natural Resources, the Pollution Control Agency, and other interested agencies, including the Soil and Water Conservation District and the Elk River Watershed Association; d. Conduct programs for water quality monitoring, water quality improvement and conservation, including, but not limited to, programs to prevent, monitor and/or control the infestation of aquatic invasive species; e. Enter into cooperative agreements with federal/state/local agencies to effectuate water quality programs; f. Pursue adoption of the 2017-2020 Lake Orono Management Plan by the Elk River City Council; g. Implement a comprehensive program to alleviate current ecological stressors and recreational impairment on Lake Orono, brought about by excessive aquatic invasive species, native plant overgrowth, algae proliferation, excess nutrients and sedimentation; h. Maintain, restore or establish natural upland buffers to encourage wildlife, help prevent decline in species, deter Canada geese, and provide enjoyment for future generations; i. Increase public awareness and use of Best Management Practices targeting the reduction of sedimentation, phosphorus and salt inputs from upstream and shoreline sources to Lake Orono; J. Build the public perception and "brand" of Lake Orono as a quality recreation destination, valuable community asset, and safe lake; and k. Such other programs, plans, studies or activities as may be approved by the City Council from time -to -time. 4. Authority. Pursuant to Minnesota Statute, Section 10313.551, subd. 3, the City of Elk River delegates to the OLID the authority to: a. acquire equipment, or other facilities, by gift or purchase to improve navigation; b. contract with a board of managers of a watershed district or the board of supervisors of a soil and water conservation district for improvements under chapters 103C and 103D; c. undertake research to determine the condition and development of Lake Orono and the water entering it and to transmit the results of the studies to the Pollution Control Agency and other interested authorities; d. develop and implement a comprehensive plan to reduce water pollution; e. conduct programs of water improvement and conservation; f. receive financial assistance from and participate in projects or enter into contracts with federal and state agencies for the study and treatment of pollution problems and related demonstration programs; g. make cooperative agreements with the United States or state government or other counties or cities to effectuate water and related land resource programs. 5. Financing. Funding for the OLID shall be from any combination of the following: a. Receipts of private and public donations and public or private grants. b. The OLID may request that the City Council approve one or more of the following funding sources, which approval may be granted, revoked, or modified by the City Council annually: Assessment of costs of projects upon the benefitted property within the district in the manner provided in Minnesota Statutes Chapter 429; and ii. Imposition of service charges on the users of OLID services; and iii. Levy of an ad valorem tax on property within the OLID, to be appropriated and expended solely in projects of special benefit to the OLID. 6. Board of Directors. The Board of Directors of the OLID shall consist of five members. The Board members must own property within the OLID and a majority of the Directors must reside within the OLID. The initial Directors will be appointed by the City Council with designated alternating terms of one, two and three years. No Director may serve more than two consecutive complete terms. Directors may be removed by two-thirds vote of the remaining Board members, or by a majority of the property owners present at the next annual meeting. A vacancy may be declared if a Director is unable or unwilling to serve, if a Director fails to attend three consecutive meetings, or if a Director no longer owns property within the district. A Director elected to fill a vacancy shall serve the remaining unexpired term. Property owners not present at the annual meeting may participate in the election of the Board of Directors by absentee ballot. Absentee ballots must be received at the office of the OLID no later than the business day prior to the date of the annual meeting. Absentee ballots received after that date shall be void. 7. Duties of the Board of Directors. The Board of Directors shall have the authority to direct the activities and programs of the OLID only to the extent such authority has been granted to the OLID in this Order. The Board of Directors may adopt rules of procedure for conducting meetings and shall maintain a public record of all meetings, reports and financial activities. Such reports and records shall be forwarded to the City at the request of the City Liaison. The Board of Directors shall coordinate the efforts of the OLID with the City, the Soil and Water Conservation District, the Elk River Watershed Association, the Department of Natural Resources, the Pollution Control Agency and other interested agencies, as applicable. a. Annual Meeting. The Board of Directors shall hold at least one annual meeting. The first annual meeting shall be held in July or August and shall continue to be held annually during that period unless changed by a vote at the previous annual meeting. Notice of the annual meeting shall be published and shall be mailed to the City of Elk River, the Department of Natural Resources and the Pollution Control Agency as required by Minn. Stat. 103B.571, subd. 2. b. Annual Meeting Agenda. In addition to other business that may be conducted at the annual meeting, the property owners who are present at the annual meeting shall: (i) elect Directors to fill any midterm vacancies; (ii) approve a budget for the fiscal year; and (iii) approve or disapprove proposed projects by the OLID having a cost to the OLID :i of $5,000 or more. In addition, all property owners in the OLID, including absent members, shall elect Directors to fill positions created by expiring terms. c. Annual Report. Each year the Board of Directors shall prepare and file with the city a report of the financial conditions of the OLID, the status of all projects in the OLID, the business transacted by the OLID, other matters affecting the interests of the district, and a discussion of the directors' intentions for the succeeding years. Copies of the report shall be transmitted to the City Council, the Commissioner of the Department of Natural Resources, and the Pollution Control Agency no later than four months after the annual meeting. 8. City Liaison. The City of Elk River City Administrator or such other person as the City Council may designate from time -to -time, shall be the liaison between the City and the OLID and may review, on behalf of the City, the OLID's programs. The City liaison, or designee, and the Commissioner of the Department of Natural Resources, and their designees, shall be given prompt access to and inspection of all records, structures, facilities and operations of the OLID at reasonable times. The City liaison, or designee, will make an annual report to the City Council on the activities and programs of the OLID. 9. Publication and Notice. This Order shall be published in the official newspaper of the City and the effective date of establishment of the OLID shall be 30 days after publication. A copy of this Order shall be filed with the Secretary of State, the Pollution Control Agency and the Commissioner of Natural Resources. John J. Dietz, Mayor ATTEST: Tina Allard, City Clerk Dated: ATTACHMENT A LID BOUNDARIES Feet 0 4375 875 1,750 2,625 3,500 Source: Lake Orono Water Quality Committee N Date: 4-10-2019 w+a 29 Note - Entire area is within T33N, R26W s 30 �- r v � L - Z" - J /\ 3\ 31 32 33�. ~ J Legend OLID Parcels (188) Ute" Tax Exempt (10) Lake Orono Local Roads 6 s City of Elk River City of Elk River City Council Resolution 19- A Resolution of the City Council of the City of Elk River Making Findings of Fact and Denying the Orono Lake Improvement District in the City of Elk River, Minnesota WHEREAS, the Lake Orono Water Quality Committee ("Applicant") has submitted a petition ("Application") to the city for the establishment of a Lake Improvement District to be known as the Orono Lake Improvement District ("OLID"), which would include properties along the shore of Lake Orono; and WHEREAS, the record in this matter shall include all of the materials submitted to the City Council in connection with the April 10, 2019, Application, including staff reports and all attachments thereto, all other written materials submitted to the City Council, and all staff presentations and other testimony taken at the public meetings and public hearing considering the Application, all of which is incorporated and made a part of the findings of fact and this resolution; and WHEREAS, the City Council held a work session on May 6, 2019, to receive information from city staff and the Applicant regarding Minnesota Statutes Sections 103B.501 — 103B.581 and Minnesota Rules, Sections 6115.0900 — 6115.0980, which together set forth the process, criteria, and standards for establishing lake improvement districts; and WHEREAS, per Minnesota Statutes Section 103B.521, the Office of the City Clerk certified 143 property owner signatures out of 260 possible and determined that the petition to establish the OLID meets the required number of signatures and is valid; and WHEREAS, the City Council held a public hearing on June 3, 2019, to receive testimony and evidence from city staff, the Applicant, and any other persons regarding the Application; and WHEREAS, the Applicant and all others wishing to speak were given the opportunity to present testimony to the City Council; and WHEREAS, the City Council closed the June 3, 2019, public hearing on the Applicant's Application and directed staff to gather additional information regarding the Application, including information from the Minnesota Department of Natural Resources ("DNR") regarding the appropriate boundaries of the OLID, and continued the item to the June 17, 2019, City Council meeting; and WHEREAS, on June 12, 2019, the DNR responded to the city's request for a review of the proposed boundaries of the OLID and advised the city that the boundaries as proposed in the petition for the OLID are appropriate; and WHEREAS, the City Council held their meeting on June 17, 2019, to review the Application and all materials submitted for the public record, and to ask additional questions of city staff and the Applicant; and WHEREAS, the City Council, at the conclusion of its June 17, 2019, meeting on the Applicant's Application, adopted this resolution making the following Findings of Fact and Decision, denying the Application. NOW, THEREFORE, the City Council of the City of Elk River, Minnesota, makes the following findings of fact and decision with respect to the Petition by the Lake Orono Water Quality Committee for the establishment of a lake improvement district: FINDINGS OF FACT 1. Minnesota Statutes Section 103B.515, Initiation and Establishment by County Board, provides in Subd. 4. Establishment, that a lake improvement district may be established if the City Council determines that: a. The proposed district is necessary or that the public welfare will be promoted by the establishment of the district. b. Property to be included in the district will be benefitted by establishment of the district; and c. Formation of the district will not cause or contribute to long-range environmental pollution. 2. The City Council finds that the proposed OLID is not necessary because: a. The Lake Orono Improvement Association already undertakes many of the activities proposed to be undertaken by the OLID. It is therefore unnecessary to establish a new entity to undertake these activities; and b. The proposed Lake Orono Restoration and Enhancement Project ("LORE") can proceed without establishment of the OLID because: i. In 1998, the city completed a similar dredging project without a lake improvement district in place; and ii. The city has the authority to proceed with the LORE project, and to assess benefitted properties for a portion of the cost of the LORE project, without the establishment of the OLID. 3. The City Council finds that establishing the proposed OLID will not necessarily promote the public welfare because most of the activities proposed to be undertaken by the OLID can be untaken by the Lake Orono Improvement Association and other civic groups and governmental agencies. 4. The City Council finds that property to be included in the OLID will not necessarily be benefited by establishment of the OLID because most of the activities proposed to be undertaken by the OLID for the benefit of the lake can be undertaken by other civic groups of government NATUREJ Although formation of the OLID would not cause or contribute to long range environmental pollution, establishment of the OLID is still not necessary for the reasons set forth above and, therefore, the statutory criteria for establishment for the OLID has not been met. DECISION Therefore, the City Council of the City of Elk River denies the petition for the establishment of the proposed Orono Lake Improvement District, based on the findings of fact set forth above. Passed and adopted this 171h day of June 2019. John J. Dietz, Mayor ATTEST: Tina Allard, City Clerk i From: Jean Corrow Sent: Thursday, June 06, 2019 12:19 PM To: Allard, Tina Subject: [EXTERNAL] OLID and Property tax assessment Hi Tina, Could you distribute this email to all City Council members prior to their next meeting? Thank you, Jean Corrow Re: OLID and Property tax assessment Jean Corrow 1721 5th St NW Elk River MN 55330 Dear Council Members, I attended the public hearing on Monday, June 3 and intended to speak, but with the lengthy discussion already, I decided to put it in writing. It appears that there is much confusion about the 2 separate situations regarding lake Orono. If we understand correctly, the topics are forming the OLID and the potential property tax increase assessment to fund the dredging project. First, I'd like to address the OLID: From what I experienced and heard from several other property owners, the manner in which the petition was presented to gather signatures, was malicious. Important, valid information was withheld and deliberately rephrased when representatives went house to house. We we told and I quote: "This won't cost you a dime!" Of course this statement is untrue on many levels. I understand there are many residents who would like to remove their names from the petition now that they are better informed. If a petition was presented today, I believe the outcome would be very different; the total would be well below the 50% + I signature needed. Also, several residents whose properties are in a trust, were allowed 2 signatures. We were deceived by the group pushing to form this committee, yet some signed it in good faith. As taxpayers we deserve the right to be fully informed before making any decisions that affect our properties. I think we all agree that lake improvement is necessary. However, starting the OLID with this negative attention is not a good idea for anyone who lives in Elk River. It will continue to be a heated topic and the committee will likely have constant opposition. Let's throw out that biased, unlawful petition and start a new one that we all can feel good about, with a group that we trust and will consider all lake shore owners. It's obvious that the focus of the OLID, is the potential dredging project and getting funds in place for it. This seems to be overshadowing the good things that the committee could do in the future. The second point is the potential assessment for lake dredging: it seems clear that no one approves of the unbalanced and extreme tax increase/assessment that could be placed on each property owner. It was expressed by council members and OLID supporters, that lake improvements would benefit everyone, including the entire city of Elk River, plus visitors. So it doesn't make sense that this burden should be placed so heavily on the lake property owners. We will already be funding the projects through the sales tax increase and normal increases in property taxes. Collectively, we certainly hope that both of these items are postponed for further investigation and discussion. There is obviously more to be done. Jean Corrow JUN 11 2019 Cindi Edwards -Plant 13184 Island View Drive Elk River, MN 55330 June 6, 2019 City Council c/o City of Elk River 13065 Orono Parkway Elk River M N 55330 Dear Mayor Dietz and Council, I volunteer on the Lake Orono Water Quality Committee (LOWQC), the board of the Sherburne County Coalition Of Lake Associations (SC COLA) and the Lake Orono Improvement Association (LOIA). The formal LGLI Orono Lake Improvement District (OLID) is needed to achieve an equitable and stable ongoing funding and planning mechanism to complement City, County, State and Lake Association efforts and investments that are insufficient to cover the needs of the lake. Currently a handful of dedicated LOIA volunteers, City staff and a representative from the SWCD help manage the lake via the LOWQC. However, this process does not fully provide uniformity in funding, planning nor person power. For instance, occasionally this group has been without a SWCD or City representative, and volunteers have come and gone. I believe the OLID is for the public good and gives every lakeshore property owner a chance to voice their opinion as to its management. Past any LORE assessment, it would provide annually at minimal cost consistent additional funds and planning for a variety of projects in our lake management plan. It would also be a structure set in place for the future. Projects the OLID could do: • Consistently address curly -leaf pondweed and its treatment in public areas • Consistent funding of point -intercept plant surveys to determine success of herbicide treatments and the need for future applications • Effectively address future additional aquatic invasive species, participate in the DNB's rapid response for new invasives and provide inspections of boats at the landing • Address nuisance native aquatic plants and algae lake -wide • Provide lake depth testing to measure sedimentation reoccurrence • Create a lake maintenance fund that complements other funding sources to periodically remove accumulation from a sediment catch basin every few years • Educate homeowners as to Best Management Practices (BMPs) on their property to improve the lake • Help pinpoint problematic issues (such as the increased nutrient level in the middle and lower sections) and pursue actions to remedy • Fish stocking and creating and/or maintaining fish and wildlife habitat • Work with others upstream and complement or perform projects that are not being addressed such as erosion control, septic compliance, horse pasture management, etc. I was at the hearing on June V, and would like to address a couple of issues people brought up. Herbicide treatment. The herbicide used is Aquathol-K, deemed safe by the EPA and the only product that is DNR allowed. It targets curly -leaf, does not kill fish or wildlife, and in fact you can swim in treated waters immediately after application. It is not Roundup nor contains glyphosate. Aside from highly targeted use, I, too, am against unnecessarily putting chemicals in our lake. We have a large natural vegetative buffer that filters nutrients and also practice other BMPs to keep runoff and phosphorus out of the lake and ditches. In the mid -2000s, we and others hand -pulled curly -leaf pondweed in public areas. However, this process was then and is now overwhelming—there is so much of it that it is impossible to make a dent. The LOWQC has looked at mechanical harvesting, but it is very expensive, there are logistics issues, and depending on how clean a used harvester is, may introduce new invasive species into our lake. However it could be revisited if that is what OLID members would like. Currently, chemical treatment is the most effective way to handle curly -leaf. Homeowners' treatments of their property along with treatment of public areas using SWCD grants, thousands of dollars of donations and some LOIA and City funds the past few years have helped. In addition, with a vegetative management plan the OLID could create, the DNR will allow a much larger treatment area. Financial hardship. If the LORE project property assessment is to be rolled into the OLID, some people expressed concern that they cannot afford it. The amount is an estimate based on a conservative formula. It depends on the final properties included and what the interest rate will be if property owners choose extended payments. There is a special assessment deferral process in the City of Elk River that could be promoted for those over 65, have a disability or are in the military, and meet income guidelines. In addition, the City perhaps could provide an option that is financed for more than five years to reduce the separate payments. I encourage you to vote FOR the Orono Lake Improvement District. Sincerely, Cindi Edwards -Plant STATE OF MINNESOTA COUNTY OF SHERBURNE Kathleen L. Boekley; Scott Cundiff, Denise Cundiff; Nancy E. Duggan; Richard T. Duggan; John Soderberg; Georgeann Bianchi; Mark Person; Leonora Person Plaintiffs, VS. Lake Orono Improvement Association, Defendant. Case No: Case Type: OTHER SUMMONS DISTRICT COURT TENTH JUDICIAL DISTRICT THE STATE OF MINNESOTA to each person named above as Defendant: You are hereby notified that the Plaintiff named above has field a lawsuit or other legal action against you. The attached complaint states the nature and basis of the legal action. Within twenty days of receiving this Summons, you must respond with a written response, called an Answer, to the Complaint, The Court may reject or disregard an answer that is not submitted timely. The Answer must be sent or delivered to Plaintiff's attorney, Gregory M. Miller, whose address is: Trepanier MacGillis Battina P.A. 8000 Flour Exchange Building 310 Fourth Avenue South Minneapolis, MN 55415 You may have an attorney help or represent you. If you do not provide a proper answer within twenty (20) days, the Court may grant 1 judgment against you for the award of money or other legal action requested in the Complaint, and you may lose your right to object to anything that is or may be incorrect in the Complaint. A judgment may be enforced as provided by law. A judgement awarding money may become a lien against any real estate you own now or in the future and may also be enforced by garnishment or seizure of property. Dated: June 14, 2019. TREPANIER MACGILLIS BATTINA P.A. Attorneys for Plaintiff By: G'regory M. Miller, Atty. Reg. No."2 gmiller@trepanierlaw.com 8000 Flour Exchange Building 310 Fourth Avenue South Minneapolis, MN 55415 Phone: 612.455,0500 Fax: 612.455.0501 www.trepanierlaw.com 2 STATE OF MINNESOTA COUNTY OF SHERBURNE Kathleen L. Boekley; Scott Cundiff, Denise Cundiff; Nancy E. Duggan; Richard T. Duggan; John Soderberg; Georgann Bianchi; Mark Person; Leonora Person Plaintiffs, Vs. Lake Orono Improvement Association Defendant. COMPLAINT DISTRICT COURT TENTH JUDICIAL DISTRICT Case No: Case Type: OTHER NOW COMES the above-named Plaintiffs bytheir attorneys, Trepanier MacGillis Battina P.A., by Gregory M. Miller, and as for their Complaint against the above-named Defendants, alleges and shows to the court as follows: Parties 1. Plaintiff Kathleen L. Boekley is a natural person and a resident of Sherburne County, Minnesota, residing at 13776 189 Avenue NW, Elk River MN 55330. 2. Plaintiffs Scott Cundiff and Denise Cundiff are natural people and residents of Sherburne County, Minnesota, residing at 13742 189 Avenue NW, EII< River MN 55330. 3 3, Plaintiffs Richard Duggan and Nancy Duggan are natural people and residents of Sherburne County, Minnesota, residing at 13862 189 Avenue NW, Elk River MN 55330, 4. Plaintiffs Mark Person and Leonora Person are natural people and residents of Sherburne County, Minnesota, residing at 13726189 Avenue NW, Elk River MN 55330. 5. Plaintiffs John Soderberg and Georgeann Bianchi are natural people and residents of Sherburne County, Minnesota, residing at 13842189 Avenue NW, Elk River MN 55330, 6. Defendant, The Lake Orono Improvement Association ("LOIA") is, upon reasonable information and belief, a nonprofit organization. 7. Upon reasonable information and belief, the correct mailing address for Ms. Christy Cox, President of the LOIA, is 1836 Main Street, EII< River, MN 55330. Jurisdiction and Venue; 8. Pursuant to Minn. Stat § 542.02, venue is appropriate in the Tenth District Court because the claims alleged herein arose in Sherburne County, Minnesota. Furthermore, the parties reside and/or conduct substantial business in Sherburne County, Minnesota. 9. Pursuant to Minn. Stat § 542.02, the Tenth District Court retains jurisdiction over the parties and the subject matter of this action because the claims involve the determination of the legal status of real property within Sherburne County, Minnesota herein. Factual Allegations 10. The Plaintiffs incorporates by reference paragraphs 1-4 above as fully set forth 4 11. That, on April 10, 2019, the Defendant LOIA submitted before the mayor and city council members of Elk River, MN a petition to approve the formation of a proposed `.'Orono Lake Improvement District" ("OLID"). 12, That the petition and documents therein were submitted to meet the statutory requirements of Minn. Stat § 10313.521, as well as the requirements of Minnesota Rules, parts 6115.0970 and 6115.0960. 13. That the proposed OLID would include as members "all riparian properties that abut Lake Orono, and property owners with deeded lake access, that are not tax exempt." (Proposal p. 4) 14. That the proposed OLID listed the following four items as its "Specific Actions" planned: i. Dredging of Lake Orono ii. Mitigation of invasive species known as Curly -leaf Pondweed iii. Improvement of water quality in Lake Orono iv. Management of fisheries (Proposal p, 10) 15. That the proposed budget included within LOIA's petition estimates an annual assessment of $905.48 on each property within the proposed district. (Proposal p.6) 16. That the annual assessments would continue over five years, totaling $4,527.38 in assessments per property owner. (Id.) 17. Upon information and belief, the total cost of the project exceeds $2,500,000 — most of which is the cost of the dredging. 5 18. The Minnesota Department of Nature Resources ("DNR") has confirmed that the subject body of water is in fact a Reservoir controlled by a dam. 19. The current dam, constructed in 1916, was originally constructed to hold water for the production. of hydroelectric power for the City of Orono, The dam was rebuilt in 1980. 20. The Reservoir has a history of silting up and has been dredged in 1980 when the dam was rebuilt, and again in 1998. 21. The silting of the Reservoir is an ongoing problem and will continue to be an ongoing problem for the owners of shoreline. 22. That the impoundment of water in the reservoir is subject to the continued operation of the dam. 23. That the impounded water is not a natural lake, but rather the retention of certain water produced by Elk River, 24, That Lake Orono's hydrological features, maintenance and preservation issues and concerns are very different from a naturally occurring lake. 25. That Minn. Stat § 1036.501- Minn. Stat § 1036.581 contemplates improvements that may be necessary for improving a naturally occurring lake. 26. While the proposed OLID contemplates the improvement of water quality and the removal of invasive pond weed, the inclusion of "dredging" as an aim of the OLID is not contemplated by Minn. Stat § 1036.501- Minn. Stat § 1036.581. 27, in preparing their petition to the council for the creation of the OLID, Defendant Lake Orono Improvement Association included Plaintiffs' properties as being lots on Lake Orono, The map submitted with the petition includes the Plaintiff's lots in the boundaries of the proposed OLID. 28, That the Plaintiffs' properties not riparian properties abutting Lake Orono, and are, in fact, located along Elk River, as demonstrated by the map submitted to support the OLID Petition, 29. That the Plaintiffs do not have deed access to Lake Orono. 30. That the Plaintiffs do not regularly access or use Lake Orono. 31. That the Plaintiffs' properties are not experiencing sedimentation issues or "Curly -Leaf Pondweed" infestation. 32. That the Plaintiffs do not fish on Lake Orono. 33. That the Plaintiffs do not suffer water quality issues. 34. That inclusion in the OLID will only diminish the value of the lots on Elk River as the result of the additional taxing obligation, which will serve to increase river lot owner's taxes by up to 50%. 35, That, for the reasons mentioned above, the Plaintiffs will not enjoy property value increase as a result of inclusion within the proposed OLID boundaries. 36. That, for the reasons mentioned above, the Plaintiffs are not substantive beneficiaries of the proposed OLID. 37. Long standing Minnesota law does not allow for assessments for improvements without the a "special benefit" to the land owners. 38. The OLID petition does not delineate any special benefit to the river lot owners. FA 39. The report of the DNR does not delineate and special benefit to the river lot owners. 40. That Defendant attempted to solicit support for the proposed OLID by disseminating signature forms to Elk River property owners. 41, Many of the Plaintiffs were not contacted during this time period and were unaware that the OLID was even being formed. There was no mailing of any materials to the land owners that would have otherwise alerted them to the anticipated OLID assessments. 42. That the above signature forms were to be used as part of the OLID petition, to demonstrate public approval for the proposed OLID. 43. That the above signature forms do not provide notice regarding the annual assessment of $905.48 on each property within the proposed OLID, a material fact that was known by the Ldke Orono Improvement Association and should have been disclosed at the time that signature were requested, 44. The authorizing statute requires that 50% of the unit owners must sign the petition. The subject petition was only signed by an officer of the current lake association and not by the supposed "signors" approving the petition. 45, The form that was signed by unit owners specifically excludes any reference to the intended assessment and signors were not provided with a copy of the petition to discover the budget information. 46. That the OLID petition goes on to cite percentages of signatures on the above forms as evidence of approval for the OLID. (Proposal p.11) 47. That the lack of notice on the above signature forms regarding the annual assessment renders signature percentages an inaccurate measure of support and approval for the OLID. 48, That Minn, Stat. § 1036.515 prescribes that lake districts boundaries should be as consistent with natural hydrological boundaries as is practical. 49, That the Minnesota Department of Natural Resources ("DNR") has, in maps, clearly indicated that Plaintiffs' properties are located along Elk River and are outside the natural hydrological boundaries of Lake Orono. 50. That, by including the Plaintiffs' riverfront properties within its boundaries, the proposed OLID does not comport with the natural hydrological boundaries of Lake Orono, thereby running afoul of Minn. Stat. § 1036.515. 51, That Plaintiffs will suffer substantial pecuniary hardship as a result of inclusion within the proposed OLID while obtaining no special benefit, 52, That, weighed against the substantial pecuniary benefits that will be enjoyed by riparian, lakefront properties within the proposed OLID, the pecuniary hardships that Plaintiffs will suffer are inequitable and unjust, 53, That Minn. Stat § 10313.501- Minn. Stat § 10313.581 does not contemplate the creation of improvement districts for reservoirs and the substantive water and soil control issues that they may incur, COUNT DECLARATORY JUDGMENT — "LAKE" ORONO IS A RESERVOIR AND INELIGIBLE FOR A LAKE IMPROVEMENT DISTRICT 54. Plaintiffs reallege and restate the allegations contained in Paragraphs 1-- 53, 55. Plaintiffs allege that Minn. Stat § 1036.501- Minn, Stat § 1036.581 are not intended for the protection of reservoirs, 56, Any attempt to create an OLID for reservoirs is void ab initio, 57. Plaintiff's pray that the court issue an order determining that Minn. Stat § 1036.501- Minn, Stat § 10313,581 do not apply to "Lake" Orono and directing that the petition for the OLID be denied. COUNT II DECLARATORY JUDGMENT — RIVER LOTS TO BE EXCLUDED 58, The Plaintiffs reallege and restate the allegations contained in paragraphs 1— 57, 59. The Plaintiffs' properties are located on Elk River and not Lake Orono, 60. Inclusion of the Plaintiff's properties in the OLID violates Minn. Stat § 10313.501 - Minn. Stat § 10313,581 and the requirements therein to only include properties that the OLID include only those properties within the hydrologic boundaries. 61. The map submitted with the OLID petition demonstrates that the properties are outside of the reasonable hydrologic boundaries. 62, The Plaintiffs prays and order declaring and directing the Defendant to amend its petition to remove the included Plaintiff's Properties. COUNT III DECLARATORY JUDGMENT - PETITIONER FAILS TO DEMONSTRATE A SPECIFIC BENEFIT 63. Plaintiffs restates and realleges the allegations contained in paragraphs 1-- 62, 64. Petitioner for the OLID fails to state a special benefit to the river lot as contemplated by the long-established Carson -Lang factors. 10 1) that the land must receive a "special benefit" from the improvement being constructed; 2) that the assessment must be uniform upon same class of property; and 3) that the assessment may not exceed the special benefit. -Carson-Lang Realty v. Windom, 307 Minn. 368, 369 (Minn. 1978) 66. Petitioner's stated goals for the OLID demonstrate significant value to owners of shoreline along the reservoir and the activities will probably significantly increase the value of their properties. 67. Petitioner's stated goals fail to demonstrate any appreciable property value increase to the Plaintiffs' river lots as a result of the proposed OLID. 68. Petitioner has therefore failed to demonstrate a "special benefit" that Plaintiffs' would enjoy as a result of the proposed OLID. 69. Plaintiffs pray the court for an order determining the Petition to be in violation of established Minnesota law, including, but not limited to the Carson — Lang factors. COUNT IV DECLARATORY JUDGMENT -FAILURE OF PETITION TO COMPLY WITH STATUTE 70. Plaintiff restates and realleges the allegations contained in paragraphs 1— 69 71. Defendant's Petition failed to comply with Minn. Stat. § 1036.501-581. 72. Defendant failed to include material facts in obtaining the signatures submitted with the petition. 73. Defendant failed to have the actual land owners sign the petition as specifically required in the authorizing statute. 74. The disclosure of facts contained in the signature pages collected specifically omit that each unit would be assessed no less than $ 905 annually. 11 75. Petitioner has failed to demonstrate that they would have successfully obtained the requisite signatures if they had disclosed all material facts relative to their petition. 76. Plaintiff prays for an order determining that the signatures obtained to support the petition were obtained in an insufficient manner and that the petition therefore falls to comply with Minn. Stat. § 10313.501-581. Prayer For Relief WHEREFORE, Plaintiffs respectfully request that the Court: 1) Enter a declaratory judgment adjudging: a. That "Lake Orono" is not a lake, but a "Reservoir", and therefore not eligible for creation of a Lake Improvement District as contemplated by the statute; b, That Plaintiffs are not material beneficiaries of the proposed OLID; c. That Plaintiffs are not lakefront property owners; and d. The Plaintiffs' properties do not receive any special benefit sufficient to authorize the assessments contemplated by the OLID. e. That the Petition is void for failure to have it signed as required by the authorizing statute, 2) An Order directing the Petitioner to remove the Plaintiffs' properties from their petition for an OLID. 3) An Order awarding the Plaintiff's costs and fees for the prosecution of this action including reasonable attorney's fees. 4) An Order awarding other such relief as the court determine to be fair and equitable. 12 4) An Order awarding other such relief as the Court determine to be fair and equitable. Dated: June 14, 2019 TREPANIER MACGILLIS BATTINA P.A. Gregory M. Miller, Atty. Reg. No. 249932 gmiller@trepanierlaw.com 8000 Flour Exchange Building 310 Fourth Avenue South Minneapolis, MN 55415 Phone: 612.455.0500 Fax: 612.455.0501 Attorneys for Plaintiffs Kathleen L. Boekley; Scott Cundiff; Denise Cundiff; Nancy E. Duggan; Richard T. Duggan; John Soderberg; Georgeann Bianchi, Mark Person; Leonora Person ACKNOWLEDGMENT The undersigned acknowledges that sanctions may be imposed pursuant to Minn. Stat. 549.211 for violation of such pleading requirements. DATED: June 14, 2019 M. Miller 13 City Council Consideration of Lake Orono Improvement District (OLID) Creation of a Lake Orono Improvement District (OLID ■ If approved, annual budget approved by City each year. The annual budget gets voted on first by OLID members in July/August each year ■ City appoints board of directors for first year only ■ Funding: does not have taxing authority, rather assess cost, service charge or tax to benefited properties ■ Boundary based on adjacent properties of Lake Orono public water Creation of a Lake Orono Improvement District (OLID ■ Signatures of petition verified — 260 possible signatures, 143 valid signatures accepted, representing 55% ■ Per state law, between 10-30 days after the public hearing is closed, the Council shall, by Order, make a decision on the OLID DNR Follow Up ■ The DNR sent the city a follow up letter June 12, 2019 and concluded that the properties included are in fact affected by the operation of the reservoir ■ Based on the hydraulic model, the water levels abutting the properties along 189,11 Avenue NW would be significantly lower without the dam r —�— -, Feet 0 437.5 875 1,750 2,C2t 3,500 Source: Lake Orono Water Quality Committee Date: 4-10-2018 4- Note -Entire area is wdvin T33M, R26W t TTI, r �r J 93 i1 I _ 5 Legend 0 OLID Parcels(188) Tax Exempt(10) 0 Lake Orono Local Roads s � LIDTimeline ■ Received Complete Application: April 10 ■ Verify Signatures: Completed and certified May 24 ■ Public Notice including direct mail: May 11 & 18 ■ Public Hearing: June 3, 2019 ■ Publish Order: 10-30 days after Public Hearing (this meeting or July 1 , 2019) ■ Potential for petition for referendum requiring 26% of property owners ■ Establishment of LID: 30 days after Publish Order and no petition received (at earliest July 17) ■ Annual meeting to be held July or August ■ Submit levies to City: September 15 • - r