9.1. SR 09-16-2019 EGty1� ,.,�� Request for Action
River
To Item Number
Mayor and City Council 9.1
Agenda Section Meeting Date Prepared by
Work Session September 16, 2019 Brandon Wisner, Stormwater Coordinator
Item Description Reviewed by
Lake Orono Improvement District Relationship to Amanda Bednar,Environmental Coordinator
City Reviewed by
Cal Portner, City Administrator
Action Requested
Discuss the OLID relationship to the city and provide guidance to city staff.
Background/Discussion
The Order Establishing Orono Lake Improvement District (OLID) details programs and services, authority,
financing and duties of the OLID and Board of Directors. The city administrator or such other person shall
serve as the liaison between the city and OLID. The Order details tasks the OLID included in their petition
to the city for formation. Other programs,plans, studies and activities may be approved by the City Council
from time-to-time.
The OLID may request the Council approve funding sources via assessment of costs of projects,impose
service charges on users of the OLID or levy of an ad valorem tax on properties within the OLID.
With limited Lake Improvement Districts established in Minnesota, the roles and relationships between
LIDs and governing agencies are not well established. The League of Minnesota Cities has advised staff that
as a separate legal entity, the OLID has the authority to retain its own staff and legal counsel but that
nothing prevents the city from providing these services for the OLID. Services could be provided for a fee
to the OLID.
The city will manage the Lake Orono Restoration and Enhancement project as a public improvement
project.
Financial Impact
N/A
Attachments
■ Order Establishing OLID
■ LID Summary Memo (LMC)
The Elk River Vision
A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By
service, and community engagement that encourages and inspires prosperity INAMIRE1
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.
Lake Orono has experienced chronic problems with aquatic invasive species, including curly leaf
pondweed.
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.
3. 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;
Enter into cooperative agreements with federal/state/local agencies to effectuate water
quality programs;
£ 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 103B.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;
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.
3
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:
i. 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 Aged 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
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.
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.
Q/4 4
JoEV J. Dietz, May(
ATTEST:
---�d2
Tina Allard, City Clerk
Dated:
ATTACHMENT A
LID BOUNDARIES
11
0 437.5 875
Source: Lake Orono Water Ouslity Committee
Date: 4-10-2019
ae
Note - Entire area is within T22N, R26W
30
a
Il
I
-31—
t—Legend
5—
Legend
OLID Parcels (1 a8)
Tax Exempt (10)
Lake Orono
Local Roads
11
LAKE IMPROVEMENT DISTRICTS
Lake Improvement Districts, LIDs, provide a method to address lake problems and
concerns at a local level that may not be addressed by other governmental bodies. A LID is a
local unit of government which provides the opportunity for greater landowner involvement in
lake management activities.
Powers of a LID:
Cities may delegate certain powers to the board of directors of a district. Examples of powers
that may be delegated to the district board of directors include:
1) acquire by gift or purchase an existing dam or control works that affects the level
of waters in the district;
2) construct and operate water control structures approved by the DNR;
3) undertake projects to change the course current or cross section of public waters
that are approved by the commissioner of natural resources;
4) acquire property, equipment, or other facilities to improve navigation;
5) contract with a watershed district or soil and water conservation district within the
LID for improvements;
6) undertake research to determine the condition and development of the LID;
7) develop and implement a comprehensive plan to eliminate water pollution;
8) conduct a program of water improvement and conservation;
9) construct and maintain water and sewer systems;
10) enter into contracts with federal and state agencies for the study and treatment of
pollution within the LID;
11) make cooperative agreements with the United States or state government or other
counties or cities to effectuate water and related land resource programs;
12) maintain public beaches, public docks, and other public facilities for access to the
body of water;
13) provide and finance city services within the LID; and
14) regulate water surface use.
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Establishing an LID
1) A city council may, with respect to any body of water situated wholly within its
boundaries, establish and administer lake improvement districts.
2) A LID may be initiated by a petition to the city council. The petition must be
signed by a majority of the property owners within the LID. Acceptance of
electronic signatures is at the City's discretion. The petition must contain:
a) name of the proposed LID;
b) the necessity of the proposed district to promote public health or welfare;
C) the benefits to the property from the establishment of the LID;
d) a map and description of the boundaries of the proposed LID which should
be as consistent as possible with natural hydrologic boundaries;
e) the number of directors for the proposed district (must be 5-9);
0 a request to establish the district as proposed.
3) The completed petition must be filed with the city and addressed to the city
council requesting the establishment of a LID. The city must verify the signatures
and notify the city council of the petition.
4) Within 30 days of receiving notification, the city council must hold a public
hearing to determine whether the LID should be established.
5) Within 30 days of holding the public hearing, the city council shall, by order,
establish or deny the establishment of the LID. The order shall include:
a) name of LID;
b) boundaries of the LID;
c) water and related land resources management programs and services to be
undertaken;
d) manner of financing programs and services; and
e) number, qualifications, terms of office, and method of election, removal,
and filling of vacancies of the board of directors, including a method for
property owners not present at the annual meeting to participate in the
election of the district board.
6) The order shall be published in the official newspaper of the city and filed with
the secretary of state, the pollution control agency and the commissioner of
natural resources. The order is effective 30 days after publication unless specified
otherwise in the order.
7) Before the effective date, 26 percent of the property owners within the lake
improvement proposed district may petition for a referendum on establishing the
district. Upon receiving this petition, the council must issue an order staying the
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establishment until a referendum vote is taken of all qualified voters and property
owners within the proposed LID.
a) The council shall conduct a special election in July or August after
receiving the referendum petition. The election must be held within the
proposed LID.
b) The question must be stated substantially as follows:
"Should a lake improvement district be established to provide
(description of intended water and related land resources
improvements) and financed by (description of revenue sources)?"
C) If the majority votes in favor, the stay on establishing the LID is lifted.
If a majority does not favor establishing the district, the establishment
is denied.
Alternative methods to establishing a LID
1) The County may initiate the establishment of a LID.
2) If the city council disapproves a petition for creation of a LID, the petition may be
forwarded to the commissioner of natural resources for consideration.
3) Where the natural hydrologic boundaries of a proposed district extend into more
than one county, the county boards of the counties affected may form a joint
county authority and establish and maintain a LID.
4) With respect to any body of water situated wholly within the contiguous
boundaries of two or more municipalities, the governing bodies of those
municipalities may enter into a joint powers agreement to establish and administer
lake improvement districts.
Financing a LID
1) The city council may undertake projects of improvement consistent with the
purposes of the LID. To finance projects the city council, after seeking other
sources of funding, may:
a) assess costs to the benefited property;
b) impose service charges on users of LID services within the district;
C) issue general obligation bonds;
d) levy an ad valorem tax solely on property within the LID; and
e) may impose a combination of any of the above.
2) The LID may receive financial assistance from federal and state agencies to
participate in projects for the study of pollution problems and related programs.
3) The district, with approval of the city council expressed in a resolution identifying
each specific improvement to which the approval applies, may exercise the
powers of a city including, but not limited to:
(1) the levy of special assessments;
133358v1
(2) the imposition of rates and charges; and
(3) the issuance of bonds
to finance improvements that the district may undertake.
Annual meeting of LID
1) Time - The LID must have an annual meeting. The first annual meeting shall be
scheduled during July or August and be held annually in that period unless
changed by vote of the previous annual meeting.
2) Notice—The annual meeting shall be preceded by two weeks published notice.
Written notice must be mailed at least 10 days in advance of the meeting to the
county board, town boards, statutory and home rule charter cities within the
district, the pollution control agency, and commissioner of natural resources. In
the event there is a proposed project by the LID having a cost in excess of$5,000,
all property owners within the assessment area shall also receive written
notification 10 days in advance of the meeting.
3) Agenda —The LID property owners present shall:
a) elect one or more directors to fill vacancies in the board of directors;
b) approve a budget for the fiscal year;
C) approve or disapprove proposed projects having a cost in excess of
$5,000;
d) take up and consider other business.
4) At the annual meeting all district property owners, including absent members as
provided in the order establishing the district, shall elect one or more directors for
board positions with expiring terms.
5) Annual Report—Each year the board of directors shall prepare a report of the
financial conditions of the LID, status of all projects, business transacted in the
LID, other matters affecting the LID and a discussion of the director's intention
for the succeeding years.
Board of Directors
1) Membership —Upon formation of the LID, the city council shall appoint persons
to serve as the initial board of directors. The initial and all subsequent boards of
directors must include persons owning property within the district, and a majority
of the directors must be residents of the district.
2) Compensation—The directors shall serve with compensation as determined by
the property owners at the annual meeting and may be reimbursed for their actual
expenses necessarily incurred in the performance of their duties.
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