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09-05-2017 Council Packet
WORK SESSION AGENDA CITY OF LINO LAKES Tuesday, September 5, 2017 CITY COUNCIL WORK SESSION Community Room (not televised) The work session will begin at 5:30 p.m. for the Shoreview Public Works Tour (Item 1) The remainder of the meeting will commence upon return of the council from the tour (at approximately 6:30 p.m.) 1. Shoreview Public Works Tour – Depart City Hall at 5:30pm 2. West Shadow Lake and LaMotte Project Update, Diane Hankee 2.5 Trunk Utility Connection Fee Report, Diane Hankee 3. Police Body Worn Cameras, John Swenson 4. Textile Recycling/Reuse, Marty Asleson and Maddy Pelon 5. Proposed Asphalt Plant in City of Columbus, Katie Larsen 6. Prepay General Obligation Improvement Note of 2009, Sarah Cotton 7. City Hall Phone Coverage, Jeff Karlson 8. 2018 Budget & Tax Levy, Sarah Cotton 9. 2040 Comprehensive Plan Update, Michael Grochala 10. Council Updates on Boards/Commissions, City Council 11. Monthly Progress Report, Jeff Karlson 12. Review Regular Agenda 13. Adjourn WS – Item #2 WORK SESSION STAFF REPORT Work Session Item No. 2 Date: September 5, 2017 To: City Council From: Diane Hankee, City Engineer Re: West Shadow Lake and LaMotte Project Update Background On August 14, 2017 the City Council authorized the preparation of plans and specifications for the West Shadow Lake and LaMotte Project. WSB, City Engineer, has begun collecting data for the project including topographic survey, well and septic system survey, sump pump investigation, soil borings and evaluation, and culture resources review. Once the data is evaluated, a neighborhood meeting will be scheduled. We anticipate this meeting will be held towards the end of September, 2017. Notices will be sent to the residents. Both neighborhood meetings are be held on the same night. The LaMotte neighborhood meeting will be held from 6:00 to 7:00 pm, and the West Shadow Lake neighborhood meeting from 7:00 to 8:00 pm. A project website is being set up and will be linked to the City’s website. The website will be available in the first couple weeks of September, 2017. Requested Council Direction None, information only. WS – Item #2.5 WORK SESSION STAFF REPORT Work Session Item No. 2.5 Date: September 5, 2017 To: City Council From: Diane Hankee, City Engineer Re: Utility Connection Fee Study Background The City of Lino Lakes established utility fees in 1988 to fund sanitary sewer and water system trunk improvements. Sanitary sewer trunk improvements include: lift stations, forcemains, oversized sewer mains, and highway crossing casing pipes. Water system trunk improvements include: wells, pump houses, storage tanks, oversized water mains, and highway crossing casing pipes. The utility fees are charged to new users. This method of financing trunk system improvements is a common practice for cities. The current fee for sanitary sewer connection is $3,073 per residential unit, and for water connection is $4,069 per residential unit. Commercial and Industrial properties are determined based on a residential equivalency. Fees are collected at the time of development, connection or building permit. With the current fee structure there is a concern regarding fees applied when a building use changes. Also, it is good practice to review fees approximately every 5 years. At the request and approval of City Council, a Utility Connection Fee Study was completed. The Study recommends the City consider breaking the fee into two components: a Water and Sewer Availability Charge (WAC and SAC, respectively) and a Water and Sewer Trunk Utility Fee. The trunk fee would be charged at the time of development approvals and the SAC/WAC at the time of connection. This would reduce the burden on the end user. The study also incorporates updated costs based on the City’s system and planned development. The two types of fees are summarized below. • Trunk Utility Fees: o Based on the cost of expanding the system to accommodate growth. o Collected at the time of plat. o Recommended fee: Sewer: $1,505 per unit Water: $2,162 per unit • SAC and WAC Fees: o Based on the value received by the customer in connecting to the utility. o Collected at the time of connection. o Recommended fee: SAC: $1,408 per unit WAC: $1,360 per unit • Total Fees: o Sewer: $2,913 per unit o Water: $3,522 per unit The difference between the existing fees and the proposed fees is -$707. Examples of the proposed fees will presented by staff at the work session. Requested Council Direction City Council to consider accepting The Utility Connection Fee Study at the September 11, 2017 regular Council meeting. Attachments 1. Utility Connection Fee Study JUSTIFICATION REPORT UTILITY CONNECTION FEES ANOKA COUNTY | LINO LAKES, MINNESOTA September 11, 2017 Prepared for: City of Lino Lakes 600 Town Center Parkway Lino Lakes, MN 55014 WSB PROJECT NO. 2988-26 Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 JUSTIFICATION REPORT UTILITY CONNECTION FEES WSB PROJECT NO. 2988-26 FOR THE CITY OF LINO LAKES, MINNESOTA September 11, 2017 Prepared By: 477 Temperance Street | St. Paul, MN 55101 | (651) 286-8450 Building a legacy – your legacy. Equal Opportunity Employer | wsbeng.com September 11, 2017 Honorable Mayor and City Council City of Lino Lakes 600 Town Center Parkway Lino Lakes, MN 55014 Re: Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 Dear Mayor and City Council Members: The enclosed justification report presents the proposed connection fee structure and proposed utility connection fee methodology for both the sanitary sewer and water distribution systems. We would be happy to discuss this report with you at your convenience. Please contact me at (763) 287-8319 if you have any questions or concerns. Sincerely, WSB & Associates, Inc. Jay Kennedy, PE Erin Heydinger Vice President Project Engineer Enclosure cc: Michael Grochala, City of Lino Lakes Diane Hankee, WSB & Associates, Inc. Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 CERTIFICATION I hereby certify that this plan, specification, or report was prepared by me or under my direct supervision and that I am a duly licensed professional engineer under the laws of the State of Minnesota. James W. Kennedy, PE Date: September 11, 2017 Lic. No. 24490 Prepared By: Erin Heydinger, EIT Date: September 11, 2017 TABLE OF CONTENTS Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 TITLE SHEET LETTER OF TRANSMITTAL CERTIFICATION SHEET TABLE OF CONTENTS 1. EXECUTIVE SUMMARY .................................................................................................1 2. BACKGROUND .................................................................................................................2 2.1 Existing System ..........................................................................................................2 3. CONNECTION FEES ........................................................................................................3 3.1 Trunk Fee ...................................................................................................................3 3.2 Calculation of Trunk Units .........................................................................................4 3.2.1 New Developments ............................................................................................4 3.2.2 Unserviced, Developed Properties................................................................4 3.2.3 Redeveloped Properties ................................................................................5 3.3 Sewer/Water Availability Charge ..............................................................................5 3.4 Calculation of SAC/WAC units .................................................................................5 3.4.1 New Developments ............................................................................................5 3.4.2 Unserviced, Developed Properties ....................................................................6 3.4.3 Redeveloped Properties ................................................................................6 4. FEE CALCULATIONS ......................................................................................................8 4.1 2030 Unit Projections .................................................................................................8 4.2 Trunk Fee ...................................................................................................................8 4.3 Sewer/Water Availability Charge ..............................................................................9 4.4. Nonresidential Fee Determination .............................................................................9 5. EXAMPLES ......................................................................................................................10 5.1 Low Density Residential ..........................................................................................10 5.2 Medium Density Residential ....................................................................................10 5.3 New Commercial – Example One ............................................................................10 5.4 New Commercial – Example Two ...........................................................................11 5.5 Commercial Use Change ..........................................................................................11 6. RECOMMENDATION ....................................................................................................12 Appendix A Figures Appendix B Opinion of Probable Cost for the Trunk Sanitary Sewer System Appendix C Opinion of Probable Cost for the Trunk Water Distribution System Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 Page 1 1. EXECUTIVE SUMMARY The City of Lino Lakes’ current connection fee ordinance was passed in 2008, where the Sewer Access Charge (SAC) and Water Access Charge (WAC) are based on estimated utility usage and are collected at the time of development, connection, or building permit. The City’s current SAC and WAC fees are $3,073 and $4,069, respectively, or $7,142 total. The City Council authorized a study be conducted to evaluate the current water and sewer connection fee structure and recommend changes. Based on the City’s system costs and trunk facility needs, the justification report recommends a revised fee structure whereby the existing fees are broken into two categories: • Trunk Water and Sewer fees due at the time of platting or development, and • Water Access and Sewer Access charges due at the time of connection to the system The trunk sewer and water fees are derived from the costs associated with constructing the trunk systems needed to support the anticipated growth through 2030. Trunk facilities include trunk mains (over 8-inch diameter), as well as designated lift stations, wells, and water towers that are required to accommodate the anticipated growth. The total costs to build the 2030 trunk sanitary sewer and 2030 trunk water systems are approximately $12,400,000 and $18,704,600 respectively. The total costs to build the systems are divided by the projected number of residential equivalent units to be developed to obtain a uniform trunk fee per unit. The availability charges are derived from the value of the existing respective sewer and water systems. The present-day value of the existing sanitary sewer and water systems are approximately $23,064,159 and $22,271,449, respectively. The recommended sanitary sewer and water utility connection fees per unit are as follows: Water Trunk Fee: $2,162 per unit Water Availability Charge (WAC): $1,360 per unit Water Total: $3,522 Existing WAC Fee: $3,073 Sewer Trunk Fee: $1,505 per unit Sewer Access Charge (SAC): $1,408 per unit Sewer Total: $2,913 Existing SAC Fee: $4,069 Grand Total: $6,435 Existing Fee Total: $7,142 Difference: -$707 The difference between the existing and proposed fee marginal; the recommended changes will primarily change the way in which the fees are charged, rather than the total dollar amount. It is recommended that the fees be reevaluated every five years. Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 Page 2 2. BACKGROUND On February 12, 2016, the Lino Lakes City Council authorized the preparation of a report to evaluate and make recommendations regarding the City’s current utility connection fee structure. 2.1 Existing System The City currently collects SAC and WAC fees to finance improvements to the utility systems. The 2017 connection fees are $4,069 per SAC unit for water, and $3,073 per SAC unit for sewer. Connection fees are collected at the time of development or building permit, typically in the following instances: • New Residential Development • New Commercial/Industrial • Expanded Commercial/Industrial • Properties served by private wells/septic systems • Redeveloped property, determined based on the increase in SAC units related to the new use if applicable The vast majority of connection fees are derived from new development projects of varying land uses. The other circumstances listed above are less common, but do occur. Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 Page 3 3. CONNECTION FEES 3.1 Trunk Fee The City’s sewer and water trunk fees are based on the costs associated with constructing the trunk systems needed to support the anticipated growth through 2030. The additional trunk sanitary sewer and water system infrastructure is based on the Land Use Plan included in the City’s Comprehensive Plan. The timing of future trunk sanitary sewer and water system improvements will be influenced by several parameters including development in specific areas, failing on-site septic systems, regulatory requirements, availability of funds, etc. As a result, it is difficult to accurately predict the timing of future improvements, especially those which may occur far into the future. Therefore, the Capital Improvement Plan outlined in the Comprehensive Plan is intended to serve as a guide only for future fiscal planning and should be reviewed on a regular basis as more current planning and cost data becomes available. The trunk sanitary sewer and water system fees will be applied as a uniform trunk fee per total projected 2030 units. The value used for projected 2030 units was the average of the projections based on land use and predicted water usage. Trunk facilities include sewer and water pipe oversizing and sewer overdepth, as well as the designated municipal wells, water towers, and lift stations. The designated future trunk facilities are shown on the comprehensive sanitary sewer and water system maps contained in Appendix A. The following items are general policy guidelines to be considered when reviewing and/or revising the City’s sanitary sewer fee structure: Overdepth and Oversizing The cost of additional depth for sanitary sewer only shall be defined by differences in cost for the depth required to serve the property within the development and the depth required for trunk facilities. No watermain overdepth will be paid for with trunk fees. Trunk oversizing is defined as the differential of pipe costs between the required oversized pipe and the minimum pipe size required to serve property within a development. Pipe oversizing is generally considered as pipe sizes that are larger than 8 inches in diameter. Bid pricing shall not be the sole determinate in defining a developer credit. The City shall determine if a credit will be given for a project. Sanitary Lift Stations, Water Storage, and Water Supply Trunk lift stations will be defined as those included as part of the Comprehensive Sewer Plan as designated on the comprehensive plan sanitary sewer system figure in Appendix A. The cost of trunk lift stations will be financed by the City. Additional lift stations may be required to serve developments and lift stations that do not fit the definition for a trunk lift station will be constructed and financed privately as needed to serve individual developments. All lift stations will be designed and constructed in accordance with City standards. Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 Page 4 Trunk storage and supply facilities are defined as the City supply wells and water storage facilities that serve the City as a whole as designated on the comprehensive plan water system figure in Appendix A. These improvements will be constructed and financed by the City. All storage and supply systems shall be designed and constructed in accordance with City standards. No private wells and water storage will be paid for with trunk fees. 3.2 Calculation of Trunk Units 3.2.1 New Developments Residential Residential fees will be applied on a per unit basis at the time of plat, regardless of residence type. One unit will be assigned to each new residence, regardless of density. High wastewater generators and water users will be evaluated on a case-by-case basis. Non-Residential Non-residential fees, such as commercial, industrial, or institutional land uses, will be applied based on the assumed number of units per acre for each respective land use category as designated in Appendix C. In the case of mixed use developments, the trunk fee will be applied based on the sum of all respective land uses within the development at the time of plat. High wastewater generators and water users will be evaluated on a case-by-case basis at the time of plat and will have higher fees applied if deemed necessary by the City Council. 3.2.2 Unserviced, Developed Properties There are a number of existing developed areas that do not receive utility service within the City limits. The trunk systems have been designed to accommodate all existing developed unserviced properties within the City, but it is not the policy of the City to force individual property owners to connect to City services immediately. Lino Lakes ordinance 401.02 states that any building shall connect to City water when its present on-site water system fails, and connection to the sanitary sewer shall be required within seven years from the date of connection to the water system or sewer system availability. Therefore, properties may not connect to municipal utilities for ten or more years after those utilities become available. If an individual property owner or group of neighboring property owners wish to connect to City services where it is not yet available, the City will review whether or not it is an economically viable alternative to provide services to the area at the time of the request for connection. Residential Properties Existing developed unserviced residential properties will be treated as new development and be required to pay the uniform trunk fees per residential unit at the time of connection. Each residential property will be charged per unit regardless of the number of acres for the respective property. In developed, unserviced areas where individual sewage treatment systems are in place, those units will be charged the trunk fee at the time of connection. Non-Residential Properties Existing unserviced commercial/industrial or other non-residential properties wishing to connect to municipal utilities will be treated as new development. Each newly connected property will Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 Page 5 be required to pay all trunk fees according to the assumed number of units per acre outlined in the appendices of this report at the time of connection. In the case of mixed use developments, the trunk fee will be assessed based on the sum of all respective land uses within the development. High wastewater generators and water users will be evaluated on a case-by-case basis at the time of connection. 3.2.3 Redeveloped Properties In instances where existing developed areas already serviced with City utilities wish to redevelop within the City limits, it will be up to the City to evaluate whether the trunk systems can accommodate the redeveloped sewer flows and water demand. If additional trunk facilities are required to provide the added service to the redeveloped area, the City will review whether or not it is an economically viable alternative to provide additional services to the area during the redevelopment approval process. Residential Properties In cases where new residential lots are created from the subdivision of a currently serviced property, the new lots created will be assessed a trunk fee at the time of subdivision approval. Each additional lot will be charged per unit regardless of the number of acres for the respective property. Non-Residential Properties Existing serviced commercial/industrial or other non-residential properties wishing to expand will be evaluated on a case-by-case basis by the City. If the existing sewer and water service is sufficient to serve the redeveloped property, no trunk fee will be assessed to the redeveloped property. If the existing sewer and water system must be expanded and/or upgraded to serve the redeveloped property, the cost of such upgrades will be borne by the property owner. 3.3 Sewer/Water Availability Charge The City’s sewer and water availability charge (SAC/WAC) are based on the value of the existing sewer and water systems. Values of each system were taken from the depreciation schedules supplied from the Finance Department which are calculated on an annual basis. The SAC/WAC charges will be applied as a uniform fee per total future 2030 units. All availability charges are to be collected at the time of connection when a building permit is requested. 3.4 Calculation of SAC/WAC units 3.4.1 New Developments Residential Developments Because the number of residential units is known at the time of platting, the number of units assigned will be based on the number of homes. Each residential connection to the City’s sewer or water systems will be weighted the same regardless of land use density. Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 Page 6 Commercial Developments The non-residential SAC/WAC charges will be determined based on the actual number of SAC units calculated by MCES during the building permit process for each connection to the sanitary sewer and water system. In the case of mixed use developments, the SAC/WAC charges will be assessed based on the sum of all respective land uses within the development at the time of connection. High wastewater generators and water users will be evaluated on a case-by-case basis at the time of connection and will have higher fees applied if deemed necessary by the City Council. 3.4.2 Unserviced, Developed Properties There are a number of existing developed areas that do not receive utility service within the City limits. As stated previously, it is not the policy of the City to force individual property owners to connect to City services immediately upon availability; however, if an individual property owner or group of neighboring property owners wish to connect to City services where it is not yet available, the City will review whether or not it is an economically viable alternative to provide services to the area at the time of the request for connection. Residential Properties Existing unserviced residential properties will be required to pay the SAC/WAC charges per residential unit at the time of connection. Each residential property will be charged per unit regardless of the number of acres for the respective property. In developed, unserviced areas where individual sewage treatment systems are in place, those properties will be charged a SAC/WAC charge per unit at the time of connection. Non-Residential Properties Existing unserviced commercial/industrial or other non-residential properties wishing to connect to municipal utilities will be treated as new development. Each newly connected property will be required to pay all SAC/WAC charges according to the actual number of SAC units as calculated by MCES during the building permit process. The charges will be collected at the time of connection. High wastewater generators and water users will be evaluated on a case-by- case basis at the time of connection. 3.4.3 Redeveloped Properties As stated in the Trunk Fee section, in instances where existing developed areas already serviced with City utilities wish to redevelop within the City limits, it will be up to the City to evaluate whether the sewer and water systems can accommodate the redeveloped sewer flows and water demand. For redevelopment, WAC/SAC fees are based on the difference in the current number of units versus the new number of units. Additional fees will be charged if infrastructure improvements are required as a result of the redevelopment. Residential Properties In cases where new residential lots are created from the subdivision of a currently serviced property, the new lots created will be assessed SAC/WAC charges at the time of utility connection. Each additional lot will be charged per SAC unit where one residential connection equals one SAC unit regardless of the number of acres for the respective property. Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 Page 7 Non-Residential Properties Existing serviced commercial/industrial or other non-residential properties wishing to expand will have both a SAC and WAC charge applied at the time a building permit is obtained. Each redeveloped property will be required to pay all SAC/WAC charges according to the differential between the existing number of SAC units and the redeveloped number of SAC units as calculated by MCES during the building permit process. If a redeveloped property has a lower number of SAC units, a refund will not be issued. High wastewater generators and water users will be evaluated on a case-by-case basis at the time of connection. Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 Page 8 4. FEE CALCULATIONS 4.1 2030 Unit Projections The 2030 units are based on the average of the projected units based on land use and the projected residential equivalents based on approximate future water use. Currently within the City of Lino Lakes, there are approximately 6,828 developable acres proposed to be developed by the year 2030 as identified in the City’s 2030 Comprehensive Plan. Of that amount, 5,174 are residential acres; 1,090 are commercial or industrial acres; and 564 are mixed-use acres. The total number of units projected is the assumed number of SAC units per acre for each land use designation, multiplied by the remaining acres to be developed by 2030, resulting in approximately 12,790 equivalent units developing by the year 2030. The assumed density for each land use category is included in Appendix C. The projected units based on water usage is a residential equivalent unit volume determined by dividing average annual water usage by the number of gallons residential users demand on average. The projected 2030 water usage was divided by the residential equivalent volume to determine the additional residential equivalents by 2030, resulting in approximately 6,537 additional residential equivalents developing by 2030. The units used in this report were determined by the average of the two methodologies, resulting in an assumed additional 9,663 units to connect to the City’s water and sewer system by 2030. As development proceeds, this number should be tracked and updated to adjust fees every five years, with adjustments made incrementally to address inflation. 4.2 Trunk Fee Capital Improvement Plans (CIP) for both the sanitary sewer and water supply systems were developed based on the City’s 2030 Comprehensive Plan. The CIPs were based on building the trunk facilities to accommodate the 2030 estimated growth. The trunk sanitary sewer CIP includes sanitary sewer pipe upgrades, new main installations, and designated lift station improvements within the 2030 Urban Service Area. The trunk sanitary sewer improvement projects and associated costs included in the trunk fee calculation are detailed in Appendix B. The trunk water system CIP includes water main upgrades, new main installations, and designated water supply wells and storage tanks within the 2030 Urban Service Area. Additionally, it was assumed that the Trunk Fees would cover the cost of half of the water treatment plant planned for construction. Because the 2030 Comprehensive Plan was written in 2009, those projects already constructed were removed, and five percent was added to the estimated costs to address inflation. The trunk water system improvement projects and associated costs included in the trunk fee calculation are detailed in Appendix B. The total costs to construct the 2030 trunk sanitary sewer and 2030 trunk water systems are estimated at $12,400,000 and $10,864,350, respectively. The total costs to construct the systems were divided by the total number of 2030 units remaining to be developed to obtain a uniform trunk fee per SAC unit. The calculated trunk sewer fee is $1,505 and the calculated trunk water fee is $2,162. Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 Page 9 The current trunk fee calculation only accounts for growth within the 2030 Urban Service Area. To serve areas of the City that are currently outside of the City’s 2030 MUSA, the trunk sewer collection and water distribution systems will need to be extended. Trunk facilities will include the construction of additional trunk mains, lift stations, and water supply and storage. Piping, lift station, supply, and storage requirements will be dependent on the expected population and land use of the areas. Costs to construct the trunk facilities outside of the 2030 MUSA will be evaluated when service is extended. It is recommended that this study be updated every five years, with incremental increases annually based on inflation. 4.3 Sewer/Water Availability Charge The SAC/WAC charges were based on the 2016 value of the existing sanitary sewer and water systems. Values of each system were taken from the depreciation schedules supplied from the Finance Department which are calculated on an annual basis. The 2016 value of the existing sanitary sewer and water systems are $23,064,159 and $22,271,449, respectively. The total 2016 values of the sewer and water systems were divided by the total estimated 2030 units to obtain a uniform SAC/WAC charge per unit. The calculated SAC charge per SAC unit is approximately $1,408 and the calculated WAC charge per SAC unit is approximately $1,360. 4.4. Nonresidential Fee Determination The fee charged to non-residential developments is based on acreage and SAC determination. At the time of plat, an estimate of 2.92 units per acre is assigned to the development. This number is based on the assumption that an average commercial or industrial building will use 800 gallons per acre per day. Metropolitan Council guidance recommends an assumption of 274 gallons per day per residential unit. Therefore, a residential equivalence of 800 gallons per day, divided by 274 gallons per per unit, results in the assigned value of 2.92 units per acre for non-residential development for the determination of the Trunk Fee. At the time of connection, non-residential developments are charged the SAC and WAC fee based on actual usage type. The fees assigned are determined based on the Metropolitan Council’s SAC Procedural Manual, which provides estimates for a wide variety of commercial, industrial, and institutional uses. Depending on the ultimate use, the proposed fees can be either lower or higher than the existing fees. Overall, commercial fees will be lower than existing when high-use commercial development goes into a small parcel or when the assumed usage based on density is close to the actual usage; fees will be higher when a low-volume user develops a large parcel. Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 Page 10 5. EXAMPLES 5.1 Low Density Residential For an unserviced low density residential development, the fees would be calculated as shown below. This example assumes that 2.16 acres are planned for development into six residential units. Because the residential units are known, acreage is not considered. Utility Units Fee Per Unit Total Sewer Trunk Fee 6 $1,505 $9,030 Water Trunk Fee 6 $2,162 $12,972 Sewer Availability Charge 6 $1,408 $8,448 Water Availability Charge 6 $1,360 $8,160 Total $38,610 Existing Fee Structure $42,852 Difference -$4,242 5.2 Medium Density Residential This example outlines the fees assigned to a new, medium density residential development. Similar to the low-density residential example, the number of units is used to calculate the fee. Utility Units Fee Per Unit Total Sewer Trunk Fee 78 $1,505 $117,390 Water Trunk Fee 78 $2,162 $168,636 Sewer Availability Charge 78 $1,408 $109,824 Water Availability Charge 78 $1,360 $106,080 Total $510,930 Existing Fee Structure $557,076 Difference -$46,146 5.3 New Commercial – Example One This example demonstrates the calculations to determine the fees charged to a new commercial development 28 acres in size. The acreage is used to determine the Trunk Fees at the time of platting, based on an assumed unit density of 2.92 units per acre . The SAC units, determined at the time of connection, is used to calculate the Availability Charges. Utility Units Fee Per Unit Total Sewer Trunk Fee 82 $1,505 $123,410 Water Trunk Fee 82 $2,162 $177,284 Sewer Availability Charge 65 $1,408 $91,520 Water Availability Charge 65 $1,360 $88,400 Total $480,614 Existing Fee Structure $464,230 Difference +$16,384 Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 Page 11 5.4 New Commercial – Example Two This example outlines the calculations to determine the fees charged to new development 15 acres in size. In contrast to the previous example, the number of units estimated during preliminary plat is lower than the actual SAC units calculated by usage prior to connection to the system. This example is in place to demonstrate that depending on the ultimate use, the proposed fees can be either lower or higher than the existing fees. Overall, commercial fees will be lower than existing when high-use commercial development goes into a small parcel or when the assumed usage based on density is close to the actual usage; fees will be high when a low- volume user develops a large parcel. Utility Units Fee Per Unit Total Sewer Trunk Fee 44 $1,505 $66,220 Water Trunk Fee 44 $2,162 $95,128 Sewer Availability Charge 51 $1,408 $71,808 Water Availability Charge 51 $1,360 $69,360 Total $302,516 Existing Fee Structure $364,242 Difference -$61,726 5.5 Commercial Use Change This example demonstrates the calculations to determine the fees charged to a commercial use change. The only charge assessed is the Availability Charge based on the increase in usage. In this example, the SAC units increase from three units to six units. The trunk fee is not charged because the water distribution and sewage collection systems are already in place. Utility Increase in Units Fee Per Unit Total Sewer Availability Charge 3 $1,408 $4,224 Water Availability Charge 3 $1,360 $4,080 Total $8,304 Existing Fee Structure $21,426 Difference -$13,122 In this example, infrastructure has already been extended to the property. Therefore, the new user pays for the value received from the system, but is not expected to pay for infrastructure expansion, which is paid for by new users. If the commercial use change requires infrastructure upgrades, the City will work with the property owner on a case-by-case basis to determine an appropriate Trunk Fee. Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 Page 12 6. RECOMMENDATION It is recommended to update the way in which utility fees are charged as outlined within this report. The recommended fees are summarized below. Utility Trunk Fee per Unit SAC/WAC Charge per Unit Total Utility Fee per Unit Sanitary Sewer System $1,505 $1,408 $2,842 Water Distribution System $2,162 $1,360 $3,522 The proposed fees provide a funding source for the construction of improvements to serve the anticipated growth outlined in the 2030 Comprehensive Plan. Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 APPENDIX A Figures 7-6 8-39 Figure 8-12: Future Water System Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 APPENDIX B Water and Sewer Capital Improvements Plan City of Lino Lakes Water and Sanitary Sewer Systems 2030 Capital Improvement Plan Adapted from 2009 Comprehensive Plan Item No.Description Cost 1 Lake Drive Trunk Watermain Strengthening (Phase 2)$346,500 2 Construction of Storage Tank and Well No. 7 $3,144,750 3 Complete Raw Watermains from Multiple Wells $1,653,750 4 Redundant 16" Watermain to Replace North Loop $2,100,000 5 Construction of Water Treatment Plant*$7,840,250 6 Complete Raw Watermain from Additional Wells $1,575,000 7 Lake Drive Trunk Watermain Strengthening (Phase 3)$658,350 8 Improve Distribution Watermain - Southwest Corner $1,386,000 $18,704,600 *50% of the Water Treatment Plant capital to come from utility connection fees Item No.Description Cost 1 Upgrade Lift Station No. 7 $73,500 2 Upgrade Lift Station No. 8 $73,500 3 Gravity Sewer, 77th Street/Country Lane $367,500 4 Gravity Sewer, Lift Station & Forcemain, Area 1G $1,050,000 5 Gravity Sewer, Lake Drive Norht of Main Street $1,260,000 6 Upgrade Lift Station No. 10 $73,500 7 Northeast Area Trunk Sewer, Stage 2 $367,500 8 Lift Station & Forcemain, Area 3D $252,000 9 Gravity Sewers, North of Century Farms, Stage 2 $1,050,000 10 West Side Relief Sewer $3,360,000 11 Replace Lift Station No. 4 & Forcemain $840,000 12 Upgrade Lift Station No. L53 & Forcemain $210,000 13 Lift Station & Forcemain, Area 3B West of 20th Avenue $367,500 14 Lift Station & Forcemain, Area 4A $1,260,000 15 Lift Station & Forcemain, Ash Street/Area 1E $735,000 16 Lift Station & Forcemain, Pine Street/Sunset Avenue $1,207,500 18 Lift Station & Forcemain, Rondeau Lake Road/Main Street $472,500 $13,020,000 GRAND TOTAL GRAND TOTAL Justification Report Utility Connection Fees City of Lino Lakes, MN WSB Project No. 2988-26 APPENDIX C Densities Assigned by Land-Use Type City of Lino Lakes Water Utility Connection Fee Study Land-Use Densities Land Use Units Per Acre per Acre Commercial 2.92 Industrial 2.92 Low Density Residential 2.75 Manufactured Home Park 4.95 Medium Density Residential 4.95 High Density Residential 8 Mixed Use 4.95 Note: Residential units per acre are the average of the low and high value provided in the City's 2030 Comprehensive Plan The densities shown in the table above were used to estimate the number of new units and residential equivalent units that will be developed over the lifetime of this analysis. This number was used to calculate the trunk fee. WS – Item 3 WORK SESSION STAFF REPORT Work Session Item 3 Date: September 5, 2017 To: City Council From: John Swenson, Public Safety Director Re: Police Body Worn Cameras (BWC) Background The Police Division is in the process of researching and testing camera systems that would be worn by officers while responding to calls for service, during police initiated interactions, and other relevant interactions with members of the public. This tool will enable police personnel to record police public interactions to • further enhance the documenting of these interactions; • use the video footage for investigative purposes; • assist with any decisions related to prosecution; • assist with court procedures; and • provide a resource in the handling of any civil litigation. During the 2016 Minnesota Legislative session, statute 626.8473 was adopted and requires that law enforcement agencies provide an opportunity for public comment related to police BWC. This legislation also requires law enforcement agencies to have a written policy governing the use of police BWC. Attached to this staff report is MN Statute 628.8473. Once staff has completed the evaluation of BWC systems, a draft policy governing the use of police BWC will be posted on the Public Safety Department webpage seeking public comment. Staff will also request that Council conduct a public hearing during a regularly scheduled Council meeting as required by MN statute 626.8473. Staff anticipates this public comment period will begin this fall with a public hearing taking place in November or December of 2017. The cost for the purchase of the BWC system will be covered by the Federal Narcotics Forfeiture Fund, which is a permissible use of this fund. This report is for Council information only; no Council action is needed at this time. Attachments Minnesota Statue 626.8473 626.8473 PORTABLE RECORDING SYSTEMS ADOPTION; WRITTEN POLICY REQUIRED. Subdivision 1. Definition. As used in this section, "portable recording system" has the meaning provided in section 13.825, subdivision 1. Subd. 2. Public comment. A local law enforcement agency must provide an opportunity for public comment before it purchases or implements a portable recording system. At a minimum, the agency must accept public comments submitted electronically or by mail, and the governing body with jurisdiction over the budget of the law enforcement agency must provide an opportunity for public comment at a regularly scheduled meeting. Subd. 3. Written policies and procedures required. (a) The chief officer of every state and local law enforcement agency that uses or proposes to use a portable recording system must establish and enforce a written policy governing its use. In developing and adopting the policy, the law enforcement agency must provide for public comment and input as provided in subdivision 2. Use of a portable recording system without adoption of a written policy meeting the requirements of this section is prohibited. The written policy must be posted on the agency's Web site, if the agency has a Web site. (b) At a minimum, the written policy must incorporate the following: (1) the requirements of section 13.825 and other data classifications, access procedures, retention policies, and data security safeguards that, at a minimum, meet the requirements of chapter 13 and other applicable law; (2) procedures for testing the portable recording system to ensure adequate functioning; (3) procedures to address a system malfunction or failure, including requirements for documentation by the officer using the system at the time of a malfunction or failure; (4) circumstances under which recording is mandatory, prohibited, or at the discretion of the officer using the system; (5) circumstances under which a data subject must be given notice of a recording; (6) circumstances under which a recording may be ended while an investigation, response, or incident is ongoing; (7) procedures for the secure storage of portable recording system data and the creation of backup copies of the data; and (8) procedures to ensure compliance and address violations of the policy, which must include, at a minimum, supervisory or internal audits and reviews, and the employee discipline standards for unauthorized access to data contained in section 13.09. History: 2016 c 171 s 6 NOTE: This section, as added by Laws 2016, chapter 171, section 6, is effective August 1, 2016, provided that a law enforcement agency using a portable recording system on that date must adopt the policy required under this section no later than January 15, 2017. Laws 2016, chapter 171, section 6, the effective date. Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 626.8473MINNESOTA STATUTES 20161 WS – Item 4 WORK SESSION STAFF REPORT Work Session Item No. 4 Date: September 5, 2017 To: City Council From: Marty Asleson and Maddy Pelon Re: Textile Recycling/Reuse Background EPA estimates 70 lbs. / person of clothing are thrown away each year. 85% of textiles are not recycled or donated. Simple Recycling is providing a free residential curbside pickup service to collect all types of clothing, shoes, accessories, and household goods. A mailer will be sent out to residents including specially designed recycling collection bags and informational materials. Residents need to bag the acceptable items and place bags at the curb on the recycling collection day by the recycling cart. Simple Recycling will collect the bags with a small truck (utility or appliance repair-type truck). The drivers will leave extra bags after collection, either on the recycling cart or by resident’s door. Simple Recycling is an Ohio Corporation that grew out of a third generation thrift store chain; the collected materials will be graded and a lot of the clothing and household goods will be sent to thrift stores. The rest will be recycled and converted for reuse to industrial wiping rags and home insulations. The program is free for the city and the residents. The City will receive a tonnage report quarterly, which can be included in SCORE tonnage report. Also, the city will be compensated $20 per ton for the material collected by Simple Recycling. Simple Recycling wishes to enter into agreement for the Collection of Soft Recyclables with the City of Lino Lakes. The Simple Recycling Agreement is attached. The Simple Recycling Agreement is a contract. This method of curbside recycling is different from city code requirements. In City Code, (4) Curbside Solid Waste/Recycling companies are allowed to operate in the City of Lino Lakes and must pay a yearly license fee. Simple Recycling is asking for a (5) year renewal agreement. Simple Recycling has agreed to an initial (1) year trial contract. If the Council is interested in perusing the agreement with Simple Recycling, then our City Attorney would need to review and make comments on the agreement. This program was reviewed at the February and March Environmental Board meeting, there was no action taken at both times. Recommended changes were made to the Agreement document for your review. This would be the second look at the document. Requested Council Direction Staff is requesting City Council consideration to enter into a contract agreement with Simple Recycling for textile recycling/reuse. This is an initial introduction to Simple Recycling proposal. If the Council would like to go further, the Staff will send the agreement to the City Attorney for review and bring back for the Councils consideration to be placed on a City Council Agenda. Attachments 1. Agreement of Collection of Soft Recyclables 2. Simple Recycling Feedback AGREEMENT FOR COLLECTION OF SOFT RECYCLABLES This Agreement for the Collection of Soft Recyclables (“Agreement”) is made and entered into this___ day of _________, 20____, (the “Date of Execution”) by and between the City of Lino Lakes a municipal corporation with an address at 600 Town Center Parkway, Lino Lakes, MN 55014 (herein referred to as “Lino Lakes”), and Great Lakes Recycling, Inc. d/b/a Simple Recycling, an Ohio corporation with a business address at 5425 Naiman Parkway, Solon, OH 44139 (together which with its successors and assigns, herein referred to as "Contractor"). W I T N E S S E T H: WHEREAS, Contractor is skilled and experienced in the collection and efficient recycling and disposition of Soft Recyclables; and WHEREAS, Lino Lakes desires to limit and restrict the quantity of Soft Recyclables which are deposited in the landfill; and WHEREAS, Lino Lakes has selected Contractor to collect, identify, haul, recycle and/or dispose of Soft Recyclables in Lino Lakes’s Service Area; and WHEREAS, Contractor can provide such services and is in the business of and has the expertise, experience, resources and capability to perform the collecting, identifying, packaging, hauling, recycling and/or disposing of Soft Recyclables; and Now, THEREFORE, in consideration of the premises and material promises set forth below and other consideration the receipt and sufficiency of which is hereby acknowledged by the parties, Contractor and Lino Lakes (herein collectively called the “Parties”) hereby agree as follows: 1. Term. This Agreement shall begin upon the Date of Execution and continue for an initial term until September 30, 2018 (the “Initial Term”). At the end of the Initial Term Contractor and Lino Lakes have the right to renew for additional five (5) year terms upon mutual agreement (each such term an “Extension Term” and collectively, the “Term”). Unless either Party provides written notice to the other Party at least sixty (60) days prior to the end of the Initial Term or any Extension Term, the Term shall automatically renew for an unlimited number of five-year terms. During the Term, Contractor shall have the sole and exclusive right to pick up Soft Recyclables in Lino Lakes’s Service Area through municipal contracted pick up. 2. Contractor’s Program Commencement. During the Term, Contractor agrees to begin providing program services on the earlier of the following: (1) a date no later than the 13th day of February, 2017, or; (2) a date on which Contractor provides written notice to Lino Lakes that sufficient population density has been achieved in a Service Area to support program services (the “Date of Commencement”). In either event, the Date of Commencement will be no later than twelve (12) months from the Date of Execution of this Agreement. On the Date of Commencement, Contractor agrees to furnish all labor, equipment, tools, and services required and necessary for the collection and disposal of Soft Recyclables within Lino Lakes and the 2 Service Area and provide qualified supervisory personnel to direct the activities of Contractor under this Agreement. 3. Collection Vehicles. All collection vehicles used in performance of the Agreement shall be duly licensed and inspected by the State of Minnesota and shall operate within the weight allowed by Minnesota statutes. Contractor shall obtain all pertinent licenses from the City, County and State. In addition, all vehicles must be: a) Clean and maintained in proper working order b) Clearly identified on both sides with Contractor’s name and customer service telephone c) Equipped with a two-way communications device, first aid kit, appropriate equipment for cleaning up spills and/or leaks, and all safety equipment required by the Federal, State of Minnesota, and local governing bodies, including federal and state Departments of Transportation 4. Collection Procedures. During the Term and after the Date of Commencement, Contractor shall collect all acceptable Soft Recyclables set-out for recycling and collection by Residential Customers in approved Containers. The decision of what is an "acceptable" Soft Recyclable shall be made in the sole reasonable discretion of Contractor. However, in no event shall Contractor be required to accept any Excluded Items which include, but are not limited to the following items: garbage, hazardous waste, carpet, newspapers, mattresses, large furniture, large appliances, yard waste, and electronic waste considered to be “covered electronic devices” under M.S. 115A.1310 (computers, peripherals, facsimile machines, DVD players, video cassette recorders, and video display devices) and in no event shall Contractor provide service to Commercial Customers. Contractor shall not be responsible for collecting Soft Recyclables which have fallen or been placed Curbside but are not in a Container. Contractor agrees to operate collection vehicles in such a manner to prevent materials from being blown from the vehicle. If at any time during collection and transport, Soft Recyclables are spilled onto a street, sidewalk, or private property, Contractor shall clean up and place in the collection vehicle all Soft Recyclables before the vehicle proceeds to the next stop on the collection route or shall promptly make all other reasonably necessary arrangements for the immediate clean-up of spilled Soft Recyclables. Contractor agrees to remove and dispose of all Soft Recyclables at no cost to Lino Lakes. 5. Collection Events. Contractor shall provide services for collection of Soft Recyclables at annual spring and fall Citywide Clean-up events on dates specified by Lino Lakes. Contractor will provide collection container or vehicle and personnel to run the collection of Soft Recyclables. 6. Ownership. Soft Recyclables set out for collection on the regularly scheduled collection day remains the responsibility and ownership of the property owner or tenant until handled by the Contractor at which point they become the responsibility and ownership of the Contractor. 7. Set Out Procedures. Residents shall place Soft Recyclables into Containers and place Containers at Curbside for collection. Overflow material shall be placed adjacent to the 3 Container(s) in plastic bags or other easily handled container. Soft Recyclables shall not be set out in tied bundles. Contractor must collect all Soft Recyclables that are set out in this manner and are placed within seven (7) feet of the Curbside. Containers shall be placed in a manner that will not interfere with or endanger the movement of vehicles or pedestrians. When construction work is being performed in the right-of-way, Containers shall be placed as close as practicable to an access point for the collection vehicle. Contractor may decline to collect any Soft Recyclables not set out in accordance with this paragraph. 8. Contamination and Improper Set Out. If Contractor encounters any improperly packaged Soft Recyclables or other contaminants in the Container, Contractor may leave those materials in the Container or remove them from the Container and leave them Curbside. Contractor must place a tag on the contaminant(s) that is not collected, collect the acceptable items, and leave contaminants at Curbside. 9. Collection Schedule. Contractor shall divide the Service Area into collection areas to coincide with Lino Lakes collection dates, between the hours of 7 a.m. and 6 p.m., Monday through Saturday. Collections shall be made from Service Recipients on a regular schedule in accordance with the existing Lino Lakes recycling pickup schedule. However, Contractor has the option to alter the frequency of the scheduled pickups if requested in writing by the Contractor and approved by Lino Lakes. Contractor shall not be required to perform any service under this Agreement on Holidays. Following all Holidays, each Residential Customer shall receive collection service on the day following its normally scheduled collection with the weeks work to be finished by Saturday. Contractor may interrupt the regular schedule and quality of service because of street repairs, snow or other closures of public routes, which in Contractor's sole reasonable discretion makes the pick-up of the Soft Recyclables from a Service Recipient impracticable under the circumstances. 10. Inventory of Containers. During the term of this Agreement, Contractor shall purchase (at its sole cost) and maintain an inventory of acceptable and approved Containers for distribution to Service Recipients. Prior to commencement of service under this Agreement, Contractor shall provide new Containers to each Service Recipient. Containers shall initially be delivered to Service Recipients with an informational brochure on the recycling collection program described herein that is produced and printed by the contractor and approved by Lino Lakes, which approval shall not be unreasonably withheld (the “Program Brochure”). 11. Missed Collections and Complaints. Service Recipients shall be instructed by Lino Lakes to report missed collections and complaints to Contractor. The Program Brochure and other program information shall include contact information for the Contractor to facilitate communication from Service Recipients. Contractor shall give prompt and courteous attention to all reported missed collections and complaints. 12. Inventory of Containers. During the term of this Agreement, Contractor shall purchase (at its sole cost) and maintain an inventory of acceptable and approved Containers for distribution to Service Recipients. Prior to commencement of service under this Agreement, Contractor shall provide new Containers to each Service Recipient. Containers shall initially be delivered to Service Recipients with an informational brochure on the recycling collection 4 program described herein that is produced and printed by the contractor and approved by Lino Lakes, which approval shall not be unreasonably withheld (the “Program Brochure”). 13. Contractor’s Fee. After the Initial Term, beginning October 1, 2018, Contractor shall pay to Lino Lakes a contract fee of One Cent ($0.01) per pound of gross receipts of Soft Recyclables in Lino Lakes’s portion of the Service Area. Payments shall be made to Lino Lakes not more than thirty (30) days following the close of each calendar month during the term of this Agreement. Weight shall be collected and documented upon completion of each collection day. 14. Publication Information and Education Program. Lino Lakes shall provide public information in the normal course to inform Service Recipients of this recycling program. The content and timing of Lino Lakes public information shall be coordinated with and approved by Contractor. Contractor may prepare and distribute its own promotional materials subject to Lino Lakes approval, which approval shall not be unreasonably withheld. Contractor shall participate in Lino Lakes directed promotion and education efforts as outlined below: a. During the course of the routine recycling pick up, provide and distribute notices regarding rejected materials and proper set out procedures. b. Training of employees to deal courteously with customers on the telephone and on-route to promote the collection service and explain proper material preparation. c. Coordinate with Lino Lakes for distribution of written promotional and instructional materials directly to Service Recipients. d. Be available a minimum of two times per year to participate in promoting the collection service at an area fair, neighborhood association program, school, or community event. e. Provide advice to Lino Lakes on promotion and education material content and presentation. 15. Telephone and Customer Service. Contractor shall maintain and staff a local toll- free telephone number where complaints of Service Recipients shall be received, recorded and handled by Contractor, between the hours of 9:00 AM and 4:30 PM Monday through Friday, excluding Holidays. Typically, all "call backs" shall be attempted a minimum of one time prior to 6:00 p.m. on the day of the call. If the caller is not contacted on the first attempt, Contractor shall make subsequent attempts on the next working day after the original call. Contractor shall make a minimum of three (3) attempts within twenty-four (24) hours of the receipt of the call. All attempts to contact the caller shall be recorded on a log kept by Contractor. 16. Marketing and Disposition of Recyclable Material. Contractor shall be solely responsible for the marketing and sale of collected Soft Recyclables, and shall be solely responsible for the storage and disposition of the Soft Recyclables in the event it is unable to sell the Soft Recyclables in a timely manner. If Excluded Items or materials banned from disposal in municipal solid waste by the State of Minnesota are collected, knowingly or unknowingly, the Contractor shall be solely responsible for recycling or disposal of items as required by the State of Minnesota. 5 17. Insurance. During the term of this Agreement Contractor agrees to keep in force, with an insurance company licensed to transact business in Minnesota, an "occurrence basis" insurance policy or policies indemnifying, defending and saving harmless Lino Lakes from all damages (except for damages caused by Lino Lakes's own negligence, willful misconduct or failure) which may be occasioned to any person, firm, or corporation, whether damages are by reason of any willful or negligent act or acts on part of Contractor, its agents or employees, with limits no less than: a. General Liability: One Million and no/100 Dollars ($1,000,000.00) combined single limit per occurrence for bodily injury, personal injury, and property damage. b. Vehicle Liability: Two Million and no/100 Dollars ($2,000,000.00) combined single limit per accident for bodily injury and property damage. c. Worker's Compensation/Industrial Insurance: Limits as required by the State of Minnesota. The general liability provisions in automobile liability policies are to contain, or be endorsed to contain, the following provisions: (i) Lino Lakes, its officers, officials, employees, and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of Contractor; products and completed operations of Contractor; premises owned, occupied, or used by Contractor; or automobiles owned, leased, hired, or borrowed by Contractor. (ii) Contractor's insurance coverage shall be primary insurance as to Lino Lakes, its officers, officials, employees, and volunteers. Any insurance or self- insurance maintained by Lino Lakes, its officers, officials, employees, or volunteers shall be in excess of Contractor's insurance and shall not contribute with it. (iii) Any failure to comply with reporting provisions of the policy shall not affect coverage provided to Lino Lakes, its officers, officials, employees, or volunteers. (iv) Contractor's insurance shall apply separate to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. (v) Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, nor reduced in coverage or in limits except after thirty (30) days' prior written notice has been given to Lino Lakes. 18. Indemnification and Hold Harmless. Except for Lino Lakes’s own negligence, willful misconduct or failures, Contractor shall save, keep, and hold harmless Lino Lakes, its officers, agents, employees, and volunteers from all damages, costs, or expenses in law or equity that may at any time arise or be set up because of damages to property or personal injury received by reason of or in the course of performing work which may be occasioned by any willful or negligent act or omission of Contractor, any of Contractor's employees, or any subcontractor. In the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of Contractor and Lino Lakes, its members, officers, employees, and agents, Contractor's liability hereunder shall 6 be only to the extent of Contractor's negligence. The provisions of this paragraph shall survive the expiration or termination of this Agreement. 19. Compliance with Law. Contractor agrees to comply with all published ordinances, laws, rules, and regulations, together with amendments thereto, of the STATE, the United States of America, or City of Lino Lakes pertaining to the services to be performed hereunder. 20. Taxes. Contractor agrees to save Lino Lakes harmless from any and all taxes or assessments of any kind or nature levied by any political subdivision upon Contractor by reason of services rendered for Soft Recyclables and disposal for Lino Lakes. 21. Employee Conduct. All Contractor personnel must maintain a courteous and respectful attitude toward the public at all times. At no time may they solicit, request or receive gratuities of any kind. Contractor must direct its employees to avoid loud and/or profane language at all times during the performance of duties. Any employee of Contractor who engages in misconduct or is incompetent or negligent in the proper performance of duties or is disorderly, dishonest, intoxicated, or discourteous must be removed from service under this contract by Contractor. 22. Monthly Reports. Contractor shall provide monthly project status reports. These reports will be due within fifteen (15) days of the close of the month being reported. At a minimum, the reports shall include detailed data to allow analysis of collection and processing efficiencies including pounds of Soft Recyclables collected in the prior month, the payment of the required fee to Lino Lakes, missed pick-ups, tagging, and complaints. 23. Inspections. Upon reasonable advanced request to Contractor, Lino Lakes may inspect the facilities, equipment and operations of Contractor to assure itself of the appearance and compliance with provisions of this Agreement. Upon reasonable advance request, Lino Lakes may review the records kept on the Soft Recyclables collected under the terms of this Agreement to test and validate the weights claimed. Lino Lakes agrees to notify Contractor, in writing, at least forty-eight (48) hours prior to any such inspection and shall indicate the reasonable basis for requesting the inspection. 24. Meetings and Communications. In order to minimize misunderstanding and to provide thereafter a forum for discussing and resolving any issues that may arise, the parties agree to meet on a regular basis and hereby adopt communications procedures as follows: Meetings After Collection Begins. After Collections begin, meetings shall be held no less frequently than a quarterly basis, unless otherwise mutually agreed, between representatives of the parties. Such meetings will be held for the purpose of reviewing and discussing day-to-day operations, promotion, public information and public relations. Designation of Representatives. Each party shall send at least one representative to each meeting. Lino Lakes shall send to each meeting at least one staff member with operation expertise. Each party shall designate one, and only one, representative as its Lead Representative. If a party sends only one representative to any meeting, that person shall be conclusively presumed to be its Lead Representative. 7 25. Owner not Barred from Donating or Selling Soft Recyclables to Others. Nothing in this Agreement shall abridge the right of an individual or household to give or sell their Soft Recyclable materials to any recyclable materials program. 26. Compliance with Laws and Regulations. Contractor agrees that, in performance of work and services under this contract, Contractor will qualify under and comply with any and all applicable federal, State and local laws and regulations now in effect, or hereafter enacted during the Term, which are applicable to Contractor, its employees, agents or subcontractors, if any, with respect to the work and services described herein. 27. Termination and Breach. Either party may terminate this Agreement without cause upon one hundred eighty (180) days written notice. Should Lino Lakes elect to terminate this Agreement without cause under the aforementioned provisions or if Contractor terminates this agreement for-cause, Lino Lakes shall not enter into any other Soft Recyclables program in Lino Lakes’s Service Area for the remainder of the contract term unless undertaken with the Contractor, unless said restriction is waived in advance, in writing by the Contractor. However, should Lino Lakes elect to terminate this Agreement for-cause due to an uncured breach by the Contractor, Lino Lakes shall not be precluded from entering into any other agreement for the collection, identification, packaging, hauling, recycling and/or disposing of Soft Recyclables. In the event of a breach of the terms and conditions of this Agreement by either Party hereunder, the non-breaching Party may elect to terminate this Agreement by providing the defaulting Party with a written notice of such default, and allowing the breaching Party a period of thirty (30) days from and after the date of such notice to cure the breach complained of to the satisfaction of the non-breaching Party. In the event said breach is not cured within the thirty (30) day period, this Agreement shall be terminated (for-cause) as of the last day of the period. In the event Lino Lakes is the non-defaulting party, Contractor agrees to furnish services under this Agreement until such time as another Soft Recyclables collection and disposal contractor can be selected by Lino Lakes. 28. Severability. Should one or more of the provisions of this Agreement be held by any court to be invalid, void or unenforceable, the remaining provisions shall nevertheless remain and continue in full force and effect, provided that the continuation of such remaining provisions does not materially change the original intent of this Agreement. 29. Independent Contractor Status. In the performance of services pursuant to this Agreement, Contractor shall be an independent contractor and not an officer, agent, servant or employee of Lino Lakes. Contractor shall have exclusive control over the details of the service and work performed and over all persons performing such service and work. Contractor shall be solely responsible for the acts and omissions of its officers, agents, employees, Contractors and subcontractors, if any. Neither Contractor nor its officers, agents, employees or subcontractors shall obtain any right to retirement benefits, Workers’ Compensation benefits, or any other benefits which accrue to Lino Lakes employees and Contractor expressly waives and claim it may have or acquire to such benefits. 30. No Assignment. This Agreement, or any interest herein, shall not be transferred, sold, nor assigned by either Party to any person, firm, or corporation, without the prior written consent of the other Party. 8 31. Entire Agreement. This Agreement supersedes any prior or contemporaneous representation or agreements, whether written or oral, between the Parties and contains the entire agreement 32. Amendments. Any modification or amendment of this Agreement shall require a written agreement signed by both parties. 31. Nondiscrimination. In the hiring of employees to perform work under this Agreement, the Contractor shall not discriminate against any person by reason of any characteristic or classification protected by state or federal law. 33. Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Minnesota. All proceedings related to this Agreement shall be venued in Anoka County, Minnesota. 34. Access to Records and Data. Contractor shall provide access to Lino Lakes, to review collection and customer service records related to Lino Lakes, produced by the Contractor that are directly pertinent to this Agreement for the purpose of making an audit, other examination and preparing excerpts and transcriptions. 35. Government Data/Privacy. The Contractor agrees to abide by the applicable provisions of the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13. HIPAA requirements, and all other applicable state or federal rules, regulations, or orders pertaining to privacy or confidentiality. The Contractor understands that all of the data created, collected, received, stored, used, maintained, or disseminated by the Contractor in performing those functions that the City would perform is subject to the requirements of Chapter 13, and the Contractor must comply with those requirements as if it were a government entity. This does not create a duty on the part of the Contractor to provide the public with access to public data if the public data is available from the City, except as required by the terms of this Agreement. 36. Waiver. The waiver by either party of any breach or failure to comply with any provision of this Agreement by the other Party shall not be construed as or constitute a continuing waiver of such provision or a waiver of any other breach of or failure to comply with any other provision of this Agreement. 37. Notices. All notices and other communications pursuant to this Agreement must be in writing and must be given by registered or certified mail, postage prepaid, or delivered by hand at the address set forth below: Notice to City: Marty Asleson City of Lino Lakes Environmental Coordinator 600 Town Center Parkway Lino Lakes, MN, 55014 Notice to Contractor: Adam Winfield 9 President Great Lakes Recycling, Inc. d/b/a Simple Recycling, 5425 Naiman Parkway, Solon, OH 44139 38. Definitions. a. Commercial Customer: The term "Commercial Customer" means non-residential customers, including businesses, public or private schools, institutions, governmental agencies and all other users of commercial-type Garbage collection services. b. Container: The term “Container” means a bag supplied by Contractor for use by the Residential Customer to set out Soft Recyclables. c. Curb or Curbside: The words "Curb" or "Curbside" relate to the homeowners' property, within seven (7) feet of the Public Street or Private Road without blocking sidewalks, driveways or on-street parking. If circumstances preclude, a Curbside shall be considered a placement suitable to the resident, convenient to Contractor's equipment, and mutually agreed to by Lino Lakes and Contractor. d. Excluded Items: The term “Excluded Items” means Garbage, Hazardous Waste, large furniture, large appliances such as refrigerators, stoves, washers and dryers, magazines, newspapers, car seats, cribs, mattresses, paint, tires, cleaners, electronic waste considered to be “covered electronic devices” under M.S. 115A.1310 (computers, peripherals, facsimile machines, DVD players, video cassette recorders, and video display devices), etc. and any item heavier than fifty (50) pounds. e. Garbage: The term “Garbage” means all putrescible and non-putrescible solid and semi-solid wastes, including, but not limited to, rubbish, ashes, industrial wastes, grass, yard debris, leaves, swill, demolition and construction wastes, dead animals, piles of debris, car parts, construction or demolition debris, any item that would be considered Hazardous Waste, or stumps. f. Hazardous Waste: The term "Hazardous Waste" means any hazardous, toxic or dangerous waste, substance or material, or contaminant, pollutant or chemical, known or unknown, defined or identified as such in any existing or future local, state or federal law, statute, code, ordinance, rule, regulation, guideline, decree or order relating to human health or the environment or environmental conditions, including but not limited to any substance that is defined as hazardous by 4 0 C .F .R. Part 2 61 and regulated as hazardous waste by the United States Environmental Protection Agency under Subtitle C of the Resource Conservation and Recovery Act ("RCRA") of 1976, 42 U.S.C. § 6901 et seq., as amended by the Hazardous and Solid Waste Amendments ("HSWA") of 1984; the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq.; or any other federal statute or regulation governing the treatment, storage, handling or disposal of waste imposing special handling or disposal requirements similar to those required by Subtitle C of RCRA or any Minnesota statute or regulation governing the treatment, storage, handling or disposal of wastes and imposing special handling requirements similar to those required by federal law. g. Holiday: The term “Holiday” means the following days: New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day, unless otherwise specified by Lino Lakes recycling holiday schedule. 10 h. Residential Customer: The term “Residential Customer” means an individual or individuals residing in a single-family home or multi-unit residence up to 8-plex that is rented, leased or owned. i. Service Area: The term "Service Area" means the municipal corporate limits of Lino Lakes plus, if necessary, one or more adjacent municipalities within a forty (40) mile radius with a minimum of forty thousand (40,000) households and be scalable to a minimum of one hundred thousand (100,000) households within a forty (40) mile radius, based on the municipalities’ collection censuses. The Service Area will encompass all of Lino Lakes’s trash and recycling collection area, as it may be amended from time to time. j. Service Recipients: The term “Service Recipients” means Residential Customers of Lino Lakes in the Service Area. k. Soft Recyclable: The term “Soft Recyclable” means items of an individual weight less than fifty (50) pounds and can be carried by one person. Soft Recyclables include primarily men’s, women’s and children’s clothing as well as items such as jewelry, shoes, purses, hats, toys, pictures, mirrors, blankets, drapes and curtains, pillows, rags, sewing scraps, sleeping bags, small furniture, small appliances, irons, radios and audio equipment, , cameras, lamps, hairdryers, tools, toasters, coffee makers, silverware, dishes, pots and pans, glasses and the like. The definition of Soft Recyclable is subject to modification in the discretion of Contractor based upon experience gained during the term of this Agreement. IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the Date of Execution first written above. City of Lino Lakes By: Its: City Manager Great Lakes Recycling, Inc. d/b/a Simple Recycling By: _______________________________ Adam Winfield, President Cities Feedback with Simple Recycling Currently, Simple Recycling is providing curbside textile recycling service in five cities within the metropolitan area, including Brooklyn Park, Brooklyn Center, New Hope, Crystal and St. Louis Park. All these cities started service approximately six months ago. Overall, the cities have received positive feedbacks from residents. The city recycling managers are also satisfied with the service and that Simple Recycling has been great to work with on issues that come up and are very responsive. It is reported that the cities collected more material than was anticipated and Simple Recycling provides high quality data monthly to cities. Specific feedback from other cities: St. Louis Park • Simple Recycling collection bags are collected at the front curb only. In St. Louis Park, recycling is picked up from the ally. It caused some confusion. In Lino Lakes, the recycling is collected from the curb, so it won’t be a problem. • Residents in certain areas did not receive a mailer. Simple Recycling then hand delivered to households that were missed in the initial bag delivery. • Simple Recycling worked directly with the driver or replaced the driver in some situations when there was a spike in missed pick-ups. • Collection tonnages for 3 months Feb (partial month) – 3.00 tons March – 4.61 tons April – 4.15 tons Brooklyn Park, Brooklyn Center, Crystal, and New Hope • Residents liked how Simple Recycling takes all clothing that some organizations might turn away due to being out of date or style, or not light weight enough to ship overseas. • Some residents were concerned this program was taking away from material going to charity. It was explained to the residents that this was an opportunity to capture the 85% of clothing that gets disposed of into the trash. Residents are still encouraged to donate. The material accepted will be recycled and manufactured into industrial wipes or insulations. WS – Item 5 WORK SESSION STAFF REPORT Work Session Item No. 5 Date: September 5, 2017 To: City Council From: Katie Larsen, City Planner Re: City of Columbus Proposed Asphalt Plant Background At the August 28, 2017 City Council Meeting, a Lino Lakes resident spoke during open mike expressing concerns regarding an asphalt plant being proposed in the City of Columbus on CSAH 54/20th Avenue. The proposed site location is 13345 & 13363 West Freeway Drive, Columbus, MN and immediately abuts the municipal boundary of the City of Lino Lakes. Staff has been requested to provide more information to the City Council regarding the proposal. In June 2017, staff drafted a letter to the City of Columbus in response their public hearing notice regarding Bituminous Roadways preliminary plat, conditional use permit and rezoning. Staff expressed concerns regarding the industrial use and increased traffic. City staff has also furthered these conversations with Columbus city staff. On July 26, 2017, the City of Columbus received a petition from the Minnesota Racing Commissioner and citizens to the Minnesota Environmental Quality Board requesting that Bituminous Roadways, Inc. be required to prepare an Environmental Worksheet. This petition is currently under review. Attached is the 9 page petition. The exhibits exceed 120 pages and are not included. Whereas, the City of Lino Lakes has concerns regarding the proposed development, we have no avenue to prevent the City of Columbus from pursuing this project. Requested Council Direction None. Discussion Only. Attachments 1. Site Plan 2. June 21, 2017 Lino Lakes Staff Correspondence Letter 3. July 26, 2017 Petition to EQB for EAW (exhibits not included) WS – Item 6 WORK SESSION STAFF REPORT Work Session Item No. 6 Date: September 5, 2017 To: City Council From: Sarah Cotton, Finance Director Re: Prepay General Obligation Improvement Note of 2009 Background In October 2009, the City of Lino Lakes approved a Joint Powers Agreement (JPA) with Anoka County for the reconstruction of the 35E/CSAH 14 Interchange. The city’s share of the project was financed through the issuance of a $3,695,000 General Obligation Improvement Note payable to Anoka County over 15 years. The debt service payments on the note were to be paid by special assessments to benefitting property owners. Over 80% of the proposed assessments were deferred due to green acres, senior citizen, or unplatted/undeveloped land deferrals. Because a majority of the assessments were deferred, the City’s municipal state aid street funds were used as an interim funding source to cover debt service until deferred assessment amounts were received. To date, the City has collected approximately $2.1M in current and deferred assessments. In addition, $1,050,783 of municipal state aid street funds has been utilized to cover debt service on the notes. The City note includes an optional redemption provision in which the City may pre-pay the note in whole or in part on any date. The City exercised this provision in part in 2014 when approximately $1.6M in deferred assessments was paid. The current principal balance on the note is $955,000. Total debt service remaining is $1,060,339.77, which includes $51,270 of interest and $54,069.77 of administrative fees payable to Anoka County for financing the debt. Staff is requesting council consideration to prepay the note utilizing municipal state aid street funds. The city will realize approximately $100,000 in savings. The municipal state aid streets fund will be paid back as deferred assessments are received. Requested Council Direction Authorize prepayment of General Obligation Improvement Note of 2009. Attachments None WS – Item 7 WORK SESSION STAFF REPORT Work Session Item No. 7 Date: September 5, 2017 To: City Council From: Jeff Karlson Re: City Hall Phone Coverage Background Mayor Reinert has received complaints from residents about not getting to a live person when calling city hall. As much as staff tries to prevent this from occurring, it does happen occasionally when city hall is short-staffed due to vacations, sick days, doctor/dentist appointments, extended FMLA leaves, and when support staff is helping other people at the front counters. I have discussed this with the management team and will be prepared to address it during the work session. WS – Item 8 WORK SESSION STAFF REPORT Work Session Item No. 8 Date: September 5, 2017 To: City Council From: Sarah Cotton, Finance Director Re: 2018 Budget & Tax Levy Background The following adjustments have been made to the 2018 Budget based on Council direction during the August 14, 2017, Special Budget Work Session. • Increase Use of Reserves to $325,000. This will maintain the City’s General Fund reserve balance at 50% of annual expenditures. • Increase operating transfers by $100,000 for park & trail improvements. • Reduce Personal Services $8,754. Staff also updated the Net Tax Capacity Rate Calculation for preliminary Fiscal Disparities data received. Based on these updated amounts, the City’s Net Tax Capacity Value is estimated to have increased by $1,633,268, or approximately $813,160 at the current Tax Capacity Rate. The preliminary levy would increase 3.00% given the needs and requests included in the draft budget. The projected Tax Capacity Rate would decrease to 42.474% in 2018 from 45.140% in 2017. Staff has reviewed 2017 YTD Expenditures and anticipates being under budget by approximately $70,000, primarily because of position vacancies and fewer legal expenditures. In addition, staff is anticipating revenue surpluses of approximately $230,000. Since the gap to maintain a flat Tax Capacity Rate is negative (no gap), and the City will need to levy approximately $450,000 for debt service associated with the West Shadow Lake/LaMotte Street Reconstruction Project, this provides an excellent opportunity for the Council to consider funding additional projects to avoid a future tax rate spike. For example, the estimated $300,000 budget surplus this year could fully fund a Phase I development of the rec complex land. In addition, the Council could levy $100,000 for Capital Equipment Replacement and thereby reduce future debt service associated with issuing Capital Equipment Certificates. The Council could also levy $50,000 to fund Municipal Building Maintenance and Repair. The General Fund levy impact would be $150,000, resulting in a projected tax capacity rate of 43.231% in 2018 compared to 45.140% in 2017. Finally, Administrator Karlson has prepared a report of wage adjustments from 2011- 2017 for council review. Staff is prepared to discuss the draft preliminary budget with the City Council during the work session. Attachments General Fund Forecast Gap Analysis Net Tax Capacity Rate Calculation Wage Adjustments from 2011-2017 6/30/20177/17/20177/31/20179/5/2017AdoptedEstimateProposedProposedProposed20172018201820182018Change% ChangeTax LeviesGeneral Fund Levy7,360,4318,412,8758,399,6138,399,6138,165,859805,42810.9%Debt Levies2,131,424 1,610,873 1,610,873 1,610,873 1,610,873 (520,551)-24.4%Total Tax Levy9,491,855 10,023,748 10,010,486 10,010,486 9,776,732 284,8773.00%Year-over-Year Change Levy $531,893 518,631 518,631 284,877 Drill-Down on Year-Over-Year Levy ChangesAdoptedEstimateProposedProposedProposed20172018201820182018Change% ChangeRevenuesProperty Taxes (Delinquent, Penalties/Interest)64,500 49,000 49,000 49,000 49,000 (15,500) -24.0%Intergovt Revenue681,409 658,988 646,526 646,526 646,532 (34,877) -5.1%Business Licenses/Permits126,229 125,779 130,515 130,515 130,515 4,286 3.4%Non-Business Licenses/Permits486,524 556,532 556,532 556,532 556,532 70,008 14.4%Charges for Services34,600 29,571 29,571 29,571 29,571 (5,029) -14.5%Public Safety Service Charges189,200 201,200 201,200 201,200 201,200 12,000 6.3%Municipal Fines175,600 160,600 160,600 160,600 160,600 (15,000) -8.5%Miscellaneous 317,348 307,848 307,848 307,848 307,848 (9,500) -3.0%Trf from Closed Bond Fund/Program Rec317,717 10,000 - - - (317,717) -100.0%Use of Reserves518,000 - - - 325,000 (193,000) -37.3%- Total Revenues/Funding Sources2,911,127 2,099,518 2,081,792 2,081,792 2,406,798 (504,329) -17.3%ExpendituresPersonal Services6,975,377 7,245,885 7,202,147 7,202,147 7,193,399 218,022 3.1%Supplies488,700 470,025 472,025 472,025 472,025 (16,675) -3.4%Other Services and Charnges1,311,140 1,262,950 1,264,200 1,264,200 1,264,200 (46,940) -3.6%Contracted Services758,526 712,587 672,087 672,087 672,087 (86,439) -11.4%Capital Outlay122,014 53,045 53,045 53,045 53,045 (68,969) -56.5%Others615,800 767,900 817,900 817,900 917,900 302,100 49.1% Total Expenditures10,271,557 10,512,392 10,481,404 10,481,404 10,572,657 301,100 2.9%Debt ServiceBonds1,494,292 1,046,341 1,046,341 1,046,341 1,046,341 (447,951) -30.0%Certificates of Indebtedness637,132 564,532 564,532 564,532 564,532 (72,600) -11.4% Total Debt Service2,131,424 1,610,873 1,610,873 1,610,873 1,610,873 (520,551) -24.4%Year-over-Year Change Levy $531,893 518,631 518,631 284,877 Total Levy Supported by Valuation Increase ($10,305,015)778,839 778,839 758,829 813,160 Gap to Maintain Flat Tax Capacity Rate(246,946) (260,208) (240,198) (528,283) GENERAL FUND FORECAST GAP ANALYSIS2017-2018 ActualActualAdoptedActualProposed20152016201720172018Taxable Market Value 1,694,366,064 1,699,288,883 1,810,747,853 1,808,417,118 1,962,740,842 Annual % Change 12.22% 0.29% 6.56% 6.42% 8.53%Total Net Tax Capacity Value 18,339,615 18,440,817 19,682,584 19,643,805 21,324,473 Less FD Contribution in Value 1,072,910 1,115,822 1,168,161 1,168,180 1,215,580 Less Captured Value for Tax Increment 236,559 261,525 294,599 293,970 293,970 Total Net Tax Capacity Value17,030,14617,063,47018,219,82418,181,65519,814,923Annual % Change 12.46% 0.20% 6.78% 6.55% 8.98%ActualActualAdoptedActualProposed20152016201720172018Total Levy 8,686,072 9,058,428 9,491,855 9,491,855 9,776,732 Less FD Distribution 1,232,171 1,206,188 1,284,902 1,284,902 1,360,629 Total Net Levy for Tax Rate 7,453,901 7,852,240 8,206,953 8,206,953 8,416,103Annual % Change 5.44% 5.34% 4.52% 4.52% 2.55%Projected City Tax Capacity Rate43.770%46.019%45.044%45.140%42.474%CITY OF LINO LAKES2018 Proposed General FundNet Tax Capacity CalculationNet Tax Capacity Rate Calculation 1 To: City Council From: Jeff Karlson, City Administrator Date: September 5, 2017 Re: 2018 Budget – Wage Adjustments from 2011-2017 One of my budget requests is to increase the Community Development Director’s salary by three percent. I have provided justification for this in the 2018 preliminary budget. To alleviate concerns that employee compensation is only adjusted upward, I put together a record of what has transpired since 2011. After the completion of an organizational assessment in 2011, the following positions (with the exception of the finance director) have seen a wage or salary drop as a direct or indirect result of the 2011 organizational analysis. Old Position New Position Department Year Change Occurred Wage/Salary Reduction1 Office Manager Office Tech. II2 Public Services 2012 $8,602 Streets Supt.3 Streets Supervisor Public Services 2012 $15,458 Dir. of Admin. (2011) HR Manager (2016) Administration 2011-2016 $9,240 Deputy Clerk Deputy Clerk4 Administration 2013 $7,968 CD Assistant Administrative Asst. Comm. Dev. 2014 $7,911 Community Relations Coordinator (2012)5 Administrative Asst. (2014) Public Safety 2012-2014 $7,829 Finance Director6 -- Finance 2015 $2,223 1 Numbers are based on the top step of compensation plan for each position. 2 Employee’s pay was “redlined.” Position was changed to Administrative Assistant in 2014. 3 Tim Payne was promoted to new Streets Supervisor position after retirement of Tom DeWolfe and two positions were eliminated: Environmental Specialist and Public Works Superintendent. 4 Position was restructured. 5 This was a .75 FTE position. 6 The City Council elected to freeze the finance director’s salary in 2015; an action I did not support. 2 Wages or salaries increased for the following positions since 2011. Old Position New Position Department Year Change Occurred Wage/Salary Increase Secretary B7 Records Technician Public Safety 2011 $1,617 CD Director -- Comm. Dev. 2015 $1,040 Public Safety Director8 -- Public Safety 2015 $1,149 The total wage or salary adjustments for positions seeing a decrease in the top step of compensation plan: $59,231. The total wage or salary adjustments for positions seeing an increase in the top step of compensation plan: $3,806. 7 Lori Hawkinson was performing the same duties as the Records Technician. 8 The justification for the Public Safety Director’s market adjustment was the addition of job responsibilities due to the incorporation of fire services in the Public Safety Department. WS – Item # 9 WORK SESSION STAFF REPORT Work Session Item No. 9 Date: September 5, 2017 To: City Council From: Michael Grochala, Community Development Director Re: Comprehensive Plan Update Background Staff will be giving the Council a verbal update on the August 9, 2017 Planning & Zoning Board Comprehensive Plan discussion. Main topics of discussion were: • Potential Land Use Study Areas and Land Use Issues • Housing Chapter Also attached is a copy of the Comprehensive Plan 2040 Meeting Schedule for your information. Requested Council Direction None Required. Discussion Only Attachments 1. Comprehensive Plan 2040 Meeting Schedule 2. August 9, 2017 Planning & Zoning Board Staff Report Lino Lakes 2040 Comprehensive Plan Update Meeting Schedule, Updated August 1 2017 Get Involved! Let’s talk about the future of Lino Lakes. There are many opportunities to participate in the 2040 Update. All meetings are open to the public. Mark your calendar and join us! Date Meeting Topic July 10, 2017 (6:30 p.m.) Park Board Parks & Trails July 12, 2017 (6:30 p.m.) Planning and Zoning Board Land Use July 13, 2017 (8:00 a.m.) Economic Development Advisory Committee Economic Development July 26, 2017 (6:30 p.m.) Environmental Board Surface Water/ Natural Resources August 7, 2017 (6:00 p.m.) City Council Land Use August 9, 2017 (6:00 p.m.) Planning and Zoning Board Land Use/ Housing August 19, 2017 Blue Heron Days Key Issues TBD September, 2017 Focus Group TBD September 11, 2017 (6:30 p.m.) Park Board Parks & Trails September 13, 2017 (6:00 p.m.) Planning and Zoning Board Transportation September 27, 2017 (6:30 p.m.) Environmental Board Surface Water/ Natural Resources October 2, 2017 (6:00 p.m.) City Council Transportation & Water October 11, 2017 (6:00 p.m.) Planning and Zoning Board Water (supply, sewer, surface) October 25, 2017 (6-8 p.m.) Open House / Workshop #2 Key Issues November 8, 2017 (6:00 p.m.) Planning and Zoning Board Parks, Trails & Natural Resources December 4, 2017 (6:00 p.m.) City Council Parks & Housing Lino Lakes 2040 Comprehensive Plan Update Meeting Schedule, Updated August 1 2017 Date Meeting Topic December 13, 2017 (6:00 p.m.) Planning and Zoning Board Economic Development, Community Facilities & Resilience January 10, 2018 (6:00 p.m.) Planning and Zoning Board Draft Plan February 5, 2018 (6:00 pm.) City Council Draft Plan February 21, 2018 (6-8 p.m.) Open House / Workshop Draft Plan March 14, 2018 (6:00 p.m.) Planning and Zoning Board Public Hearing March 26, 2018 (6:30 p.m.) City Council Approve Draft TBD (October or November, 2018) City Council Adopt Final Plan All meetings are held at Lino Lakes City Hall, unless otherwise noted. Starting times and topics of meetings are subject to change. Meetings may be added or cancelled, please check the website for the latest information. Questions? Contact Community Development Director Michael Grochala at 651-982-2427 or E-mail compplan@ci.lino-lakes.mn.us For more information and additional opportunities to engage in the Comprehensive Plan Process visit us online at www.ci.lino-lakes.mn.us 1 PLANNING & ZONING BOARD WORK SESSION AGENDA ITEM 1A & 1B STAFF ORIGINATOR: Michael Grochala, Community Development Director P & Z MEETING DATE: August 9, 2017 REQUEST: 2040 Comprehensive Plan Update Discussion CASE NUMBER: NA APPLICANTS: City REVIEW SCHEDULE: NA BACKGROUND Landform Professional Services will be presenting the following discussion items: • Potential Land Use Study Areas and Land Use Issues • Housing Chapter RECOMMENDATION Discussion item only. ATTACHMENTS 1. Landform Professional Services Report dated August 3, 2017 Lino Lakes 2040 Comprehensive Plan Update Planning & Zoning Board August 9, 2017 Date: August 3, 2017 for August 9, 2017 Meeting To: Lino Lakes Planning & Zoning Board From: Kendra Lindahl, AICP Landform Professional Services Subject: Comprehensive Plan Update On August 9, 2017 the Planning & Zoning Board will have its third work session on the Comprehensive Plan Update. Topics will be: Potential Land Use Study Areas and Land Use Issues—At the July 12th meeting, the Board discussed a preliminary list of study areas and general policy issues for the land use plan. Since that meeting, the same information was reviewed by the city’s Economic Development Advisory Committee (EDAC.) EDAC made some comments which have been added to the list, along with the P & Z board comments from July 12th. We have also added staff/consultant recommendations on each of the study areas and issues. The Board should discuss the recommendations and give its direction for drafting the Land Use Plan maps and text. Housing Chapter—The Housing Plan is Chapter 4 of the City’s Comprehensive Plan. Please see the separate memo and supporting materials, attached. Also attached is a memo summarizing the results of a “Meeting in a Box” recently completed by the Chain of Lakes Rotary Club. They completed a “SWOT” analysis similar to the exercise the City Council and Advisory Boards did at the May 15th kick-off meeting. Next meeting—On September 13th, the Planning & Zoning Board will discuss the Transportation element of the Plan. Please remember that the this and future meetings, the starting time will change from 6:30 p.m. to 6:00 p.m. The time from 6:00 p.m. to 7:30 p.m. will be reserved for the Comprehensive Plan Update, with the regular business meeting starting at 7:30 p.m. Attachments: •Potential Land Use Study Areas and Land Use Issues, August Update •Housing Plan Memo dated July 31, 2017, with Attachments •Summary, Chain of Lakes Rotary Club Meeting in a Box Lino Lakes 2040 Comprehensive Plan Update Planning & Zoning Board Meeting August 9, 2017 Page 1 Potential Land Use Study Areas, August 2017 Updates since July 12, 2017 Planning & Zoning Board Meeting Staff/Consultant Recommendations Area (Acres) Current Land Use Plan Utility Staging Area Location Description Gross Net 2030 Build Out Issue(s) 1-A Hodgson Rd (CSAH 49) & County Rd J (Ash St.) 56.25 51.61 Mixed Use & Medium Density Same 1A • Reaffirm commitment to 2007 Master Plan • Excerpts of Master Plan attached • P&Z consensus: continue referring to 2007 Master Plan Recommendation: Continue references to 2007 Master Plan in 2040 Update. 1-B Hodgson Rd (CSAH 49) & Birch St (CSAH34) 1.84 1.84 Commercial Commercial 1A • Land use designation—possible change due to access, size, surrounding land use. • Potential mixed use classification to allow flexibility for either office use or residential compatible with surrounding townhome development • P& Z consensus: continue commercial classification, examine zoning classification for compatibility with surrounding area • EDAC comment: site seems to be better suited for higher density residential based on access Recommendation: Continue current Commercial classification. Consider changes to plan or zoning designations if suitable development plan submitted to the City. Lino Lakes 2040 Comprehensive Plan Update Planning & Zoning Board Meeting August 7, 2017 Page 2 Area (Acres) Current Land Use Plan Utility Staging Area Location Description Gross Net 2030 Build Out Issue(s) 1-C South of 67th Street between Ware Rd and Holly Dr. 465.05 285.02 Low Density (west) Urban Reserve (east) Low Density 2A & 2B (west) 3 (east) • Review development staging and land use concurrent with review of options for providing sewer and water • EDAC comment: splitting this area in two for staging purposes makes sense in light of large wetland that runs through the area Recommendation: Continue existing land use designations, consider staging with sewer plan review. 2-A Sod Farms Area 415.88 381.87 Mixed Use; Low Density, Medium Density, High Density Residential Same 2A & 2B • Review land use designations to determine if they are still appropriate to meet city and landowner goals • P&Z consensus: illustrates need to be clear how multiple land use designations within a parcel or development will be interpreted Recommendation: Continue existing land use designations. Include guidance for interpreting land use designations in Land Use Plan text. Lino Lakes 2040 Comprehensive Plan Update Planning & Zoning Board Meeting August 7, 2017 Page 3 Area (Acres) Current Land Use Plan Utility Staging Area Location Description Gross Net 2030 Build Out Issue(s) 2-B Lake Drive (CSAH 23) Corridor (300 ft. corridor on both sides if road from Main Street north to border with City of Columbus) 76.39 75.29 Commercial & Mixed Use at Lake Drive/Main Street intersection; small area designated Commercial on west side of Lake Drive near Columbus border; mostly Urban Reserve Commercial, Mixed Use, Medium Density, and some Low Density 1A & 1B; mostly 3 • Corridor of mixed land uses, residential structures transitioning to commercial uses • Inconsistencies between planning and zoning— should non-conformities be eliminated? • Small parcels with individual access to an arterial street • Community gateway Recommendation: Continue existing land use designations for 2030 and full build out; except, consider change to commercial for existing non- conforming business uses on west side of CSAH 23 across from Area 2-C. Implementation will review zoning classifications for consistency with plan. Enforce access guidelines to prohibit new driveways. Consider development staging with sewer plan review. 2-C Waldoch Farms parcels 158.58 113.61 Urban Reserve Mixed Use, Low Density 3 • Landowner may wish to develop sooner than currently planned • Sewer capacity will need to be carefully considered • EDAC comment: utility extensions should be considered to allow Waldoch farms to expand commercial use Recommendation: Continue existing land use designations, consider staging with sewer plan review. Lino Lakes 2040 Comprehensive Plan Update Planning & Zoning Board Meeting August 7, 2017 Page 4 Area (Acres) Current Land Use Plan Utility Staging Area Location Description Gross Net 2030 Build Out Issue(s) 2-D Decker property, 614 Pine Street PID 05-31-22-12-0002 9.26 7.41 Urban Reserve Low Density 3 • Landowner requests sewer and water extension and Medium Density use before 2030 • P&Z consensus: single parcel may not be large enough for higher density designation Recommendation: Continue existing land use designations, consider staging with sewer plan review. 3-A North of Main Street, West of 20th Ave. 180.23 140.93 Low, Medium and High Density Various Same 2A,2B • Reaffirm land use designations • Within AUAR area Recommendation: Continue existing land use designations; consider staging with sewer plan review. 3-B Nadeau Properties 6651 & 6677 20th Ave 31.81 31.68 Low Density Low Density 2A • Landowners request Medium Density designation to be consistent with abutting properties Recommendation: Continue existing land use designations and staging. Low Density is consistent with abutting property to west and south. 20th Ave. is a good divide/transition between Medium and Low Density areas. Lino Lakes 2040 Comprehensive Plan Update Planning & Zoning Board Meeting August 7, 2017 Page 5 Area (Acres) Current Land Use Plan Utility Staging Area Location Description Gross Net 2030 Build Out Issue(s) 4-A Wilkinson Lake/ Cedar Lake Area 603.86 395.00 Mixed Use, Medium & High Density south of Ash St; Low Density north and west of Ash St,; Urban Reserve south, west and northeast of Cedar Lake Same, except land in Staging Area 3 designated low density with approx.. 40 acres Medium Density at Holly Dr. & CR J 1A, 1B, 2A, 2B, 3 • Examine development staging and utility plans for this area; sewer to be extended through White Bear Township • Landowner of 6198 Holly Drive, (Noren property, approx. 66 acres) requests staging for development prior to 2030 • EDAC comments: Ash Street and Centerville Road intersection need improvement; current state hinders development. Access to 35E needs to be upgraded to full interchange. Recommendation: Continue existing land use designations. Work with White Bear Township to determine sewer capacity and consider staging with sewer plan review. Examine intersection and access issues as part of Transportation Plan review. 5-A East of I-35E 557.09 498.55 Urban Reserve Commercial, Industrial, Medium Density 3 • Stage for development before 2040? • Reexamine residential use on Build Out Land Use Plan • Within AUAR area • EDAC comments: support staging utilities for development; support removal of medium density designation north of 80th Street and east of I-35E Recommendation: Continue existing land use designations, except delete Medium Density north of 80th St & east of I-35E. Consider staging with sewer plan review. . Lino Lakes 2040 Comprehensive Plan Update Planning & Zoning Board Meeting August 7, 2017 Page 6 Land Use Policy Discussion Items, August 2017 # Description 2030 Plan Notes LP-1 Mixed Use Development “The purpose of this category is to accommodate a mix of residential, retail and office uses Residential development may include higher density housing options.” (Table 3-2, page 3-11) • Category needs clarification. How must “mixing” occur? Within each site or development project? This may be difficult for small parcels. • Can this category be used to allow flexibility for commercial OR residential uses? • Should there be different approaches for different areas of the community? Recommendation: Land use Plan should give guidance on Mixed Use category and include goals for each Mixed Use area including residential/commercial split, similar to current plan (see pages 3-16 through 3-18 and Table 3-4.) LP-2 Industrial Land Use “The purpose of this category is to accommodate manufacturing, processing, warehousing, and research and development uses.” (Table 3-2, page 3- 11) • Can a single industrial classification respond to city’s desire for business park/corporate campus areas versus more traditional industrial areas with outside storage and/or distribution uses? • Should there be different classification(s) for high visibility areas or to ensure compatibility with adjacent uses? Recommendation: consider splitting industrial use into two classifications, one for existing areas allowing a full range of industrial uses and a new “Business Campus” classification for large, high-visibility sites. Emphasize employment over warehousing; higher standards for design. Planned uses may include some commercial to support the business and employment base. Lino Lakes 2040 Comprehensive Plan Update Planning & Zoning Board Meeting August 7, 2017 Page 7 # Description 2030 Plan Notes LP-3 City Role in Development • What is the city’s role in development? Should it be more active in promoting or facilitating development consistent with planning goals? Or should the city be a more passive participant in the development process? Recommendation: Implementation Section of Economic Development Plan (Chapter 5) provides some guidance; revisit this question when updating that Chapter. LP-4 Unsewered residential neighborhoods (P&Z Comments) Existing residential neighborhoods designated “Urban Reserve” in several locations are surrounded by urban land use designations and/ or areas staged for development before 2030. (Example: Maple Lane neighborhood.) • Need to be clear about whether these areas are eligible for extension of public sewer and/or water service and under what circumstances. • Plan should allow for extension of public sewer to individual lots when feasible and/or necessary to solve public health problems, without the need for complicated amendments to the Plan. Recommendation: Include criteria in appropriate plan text (Land Use and/or Sewer Chapters) to allow some flexibility for sewer extensions without the need for Plan amendments. Lino Lakes 2040 Comprehensive Plan Update Planning & Zoning Board Meeting August 7, 2017 Page 8 # Description 2030 Plan Notes LP-5 Residential Densities • Residential densities must average at least 3 units/acre to meet regional policies (same as 2030 plan.) • Plan must guide sufficient land to accommodate city’s share of regional affordable housing need from 2021-2030 (515 units.) Recommendation: Ensure that land use plan continues to meet the 3 units/acre goal. If necessary, adjust the Mixed Use category to accommodate the minimum number of affordable units by: • Increasing the proportion of land designated for residential compared to commercial uses; • Increasing the density of residential uses within Mixed Use areas; • Designating additional Mixed Use sites; or • Some combination of the above. Lino Lakes 2040 Comprehensive Plan Update Planning & Zoning Board re: Housing Plan 1 August 9, 2017 Date: July 31, 2017 for August 9, 2017 Meeting To: Lino Lakes Planning & Zoning Board From: Anne Hurlburt, Planner Landform Professional Services Subject: Housing Plan Update The Housing Plan is Chapter 4 of the Comprehensive Plan. At the August 9th meeting, we will review the existing plan, update the Board with the latest information on housing in Lino Lakes, and discuss issues for updating this part of the plan to 2040. 2030 Housing Plan Chapter—A housing plan is a required Comprehensive Plan element under the Metropolitan Land Planning Act. The 2030 Housing Plan is attached. It includes Goals and Policies; a Housing Profile that addresses market trends, housing conditions in Lino Lakes and nearby communities; and, sections on Life-Cycle Housing and Housing Diversity, Senior Housing and Affordable Housing. The last section is Housing Implementation Strategies and Recommendations. 2040 Housing Plan Requirements—Minnesota Statutes Section 473.859 Subd. 2.(C) states as follows: “ A land use plan shall also include a housing element containing standards, plans and programs for providing adequate housing opportunities to meet existing and projected local and regional housing needs, including but not limited to the use of official controls and land use planning to promote the availability of land for the development of low and moderate income housing.” Housing needs include “affordable” housing, which is defined as housing that is affordable to low-and- moderate income families, making no more than 80% of the area median income (AMI) for both rental and ownership housing. In 2017 the area median income for a household of four is $90,400. A family of four can earn up to $68,000 to qualify for affordable housing at 80% AMI. This translates into a maximum affordable home price of $236,000. Cities are asked to acknowledge their share of the region’s need for affordable housing at three levels of affordability: less than 30% AMI, 31-50% AMI, and 51-80% AMI. Attachment 2 provides more details on the 2017 affordability limits for both ownership and rental housing. The Metropolitan Council has calculated Lino Lakes’ share of the region’s need for low and moderate income housing for the decade of 2021-2030 to be 515 new units. In comparison, the goal for 2011-2020 was 560 units at all levels of affordability. The city is expected to add 1,700 new households between 2021 and 2030. The need for affordable units is about 30% of the total. The Metropolitan Council’s Affordable Housing Production Survey found that 56.42% of Lino Lakes’ existing housing stock was affordable in 2017 (all units below 80% AMI.) Lino Lakes 2040 Comprehensive Plan Update Planning & Zoning Board re: Housing Plan 2 August 9, 2017 The following table shows the number of units needed from 2021-2030 by affordability level. Affordable Housing Unit Needs for Lino Lakes, 2021- 2030 Threshold # Housing Units At or below 30% AMI 284 31 to 50% AMI 197 51 to 80% AMI 34 Total Units 515 To accommodate its share of the region’s affordable housing need, the City is asked to demonstrate that it has guided residential land at densities sufficient to create opportunities for construction of affordable housing. For the 2040 plan updates, the Metropolitan Council has provided two options: Option 1: Guide sufficient land at minimum residential densities of 8 units/acre to support the total allocation of affordable housing needs (in Lino Lakes’ case, 515 units or 64 acres.) Option 2: Guide sufficient land at minimum densities of: • 12 units/acre to support the allocation of affordable units at less than 50% AMI (481 units or 40 acres) AND • 6 units/acre to support the allocation of affordable units at 51-80% AMI (34 units or 5.66 acres) For the 2030 plan, all land guided for residential development at net densities of 6 units/acre was considered to be available for affordable housing. The new guideline increases the density to 8 units/acre (Option 1) but allows flexibility if communities plan for some density higher than the minimum (Option 2.) Housing Data and Trends—The Metropolitan Council collects data on housing needs in the region and provides data required to complete local comprehensive plans. Two documents are attached. The first, the “Existing Housing Assessment”, contains the minimum data required in the Housing Assessment portion of Lino Lakes’ plan. The second, the “Community Profile” for housing, provides some additional data that the City may use to help identify its housing needs. Issues for Housing Plan Update—We have identified the following issues for the update of the Housing Plan. • One of the goals for the Comprehensive Plan update is to streamline the document, make it more user friendly, and emphasize graphics and bullet points rather than large blocks of text. The housing chapter presents some good opportunities to do so. • The current plan overlaps in some ways with the land use plan, such as repeating goals and policies. We can eliminate some of the redundancy. • The current plan’s housing assessment data compares Lino Lakes with three nearby communities (Blaine, Hugo and Forest Lake) and also compares the western and eastern parts of Lino Lakes with each other. We should consider whether these comparisons are valuable and whether they should be continued in the plan update. It may be desirable to compare the city information with Lino Lakes 2040 Comprehensive Plan Update Planning & Zoning Board re: Housing Plan 3 August 9, 2017 the County or Region. Most of the comparisons of the western and eastern parts of Lino Lakes did not reveal significant differences, except for the age of the housing stock (see Chart 4-1, page 4-3 of current plan.) • As it is updated, some specific information will need to be added to the housing assessment, such as the status of contracts for existing subsidized units. • The implementation strategies will need to be tied more directly with the affordability needs and the three “bands” of affordability. Cities are asked to be more specific about how public programs, fiscal devices and other specific actions could be used to meet the housing needs, including in what circumstances and in what sequence they would be used. • To be consistent with regional policies, cities are asked to consider all recognized tools to address their housing needs, plus any additional local tools they may have at their disposal. • The Metropolitan Council’s guidelines include minimum requirements for housing plans, but cities can and do go beyond these to meet their own needs. Some parts of Lino Lakes’ plan that are specific to the community are: o A discussion of the need to balance community housing needs with environmental protection (see page 4-8) o Implementation policies and strategies intended to help maintain existing housing stock and neighborhoods (see page 4-12) • As the future land use plan is updated, the City will need to evaluate the residential densities allowed and the areas planned for development to ensure that sufficient land will be available to accommodate the city’s projected growth for all types of housing. The city is expected to plan for development at an average density of no less than 3 dwelling units/net acre. • The land use categories of the 2030 Comprehensive Plan provide for the following density ranges: 2030 Land Use Category Density Range Net Acres* Low Density Residential 1.6 to 3.9 Units/Acre 746.3 Medium Density Residential 4.0 to 5.9 Units/Acre 185.1 High Density Residential 6.0 to 10.0 Units/Acre 162.1 Mixed Use (Residential Portion Only) 8.0 to 15.0 Units/Acre 78.1 Total 1,171.5 * Source: 2030 Land use Plan, Appendix B, Residential Density Worksheet • In the 2030 Plan, the land designated High Density Residential and Mixed Use together provided enough more than enough land to accommodate the affordability goal of 560 units. • Only the Mixed Use category (78.1 acres) would meet the 2040 minimum density of 8.0 units/acre. The amount of remaining land has not yet been calculated. A preliminary review indicates that there may be enough land to meet the 2040 goal, which would require 64 acres. Lino Lakes 2040 Comprehensive Plan Update Planning & Zoning Board re: Housing Plan 4 August 9, 2017 • If necessary, the Mixed Use category can be adjusted to accommodate the minimum number of units by: o Increasing the proportion of land designated for residential compared to commercial uses; o Increasing the density of residential uses within Mixed Use areas; o Designating additional Mixed Use sites; or o Some combination of the above. Attachments: 1. 2030 Lino Lakes Comprehensive Plan, Chapter 4: Housing Plan 2. 2017 Affordability Limits for Ownership and Rental Housing, Metropolitan Council 3. Map, Owner-Occupied Housing by Estimated Market Value, 2016 4. Existing Housing Assessment for City of Lino Lakes, Metropolitan Council 5. Community Profile for Lino Lakes, Housing, Metropolitan Council 4-1 Chapter 4: Housing Plan Introduction The condition, affordability, and availability of housing affect the social and economic health of every city. As a developing community, Lino Lakes has an excellent opportunity to provide a variety of housing options to meet the needs of all its current and future residents throughout their lives. Through the Comprehensive Plan and Visioning processes, participants identified the need for a greater variety of housing options within the community, which currently consists mainly of single family detached homes. In response, the City developed a Land Use Plan that identifies areas for high density housing (6.0 to 10.0 units/net acre, medium density housing (4.0 to 5.9 units/net acre), low density housing (1.6 to 3.9 units/net acre), and mixed use areas that will incorporate a mix of commercial areas with higher density housing options. This will accommodate a wider variety of housing types including senior housing, live/work units, and multi-family in a variety of styles from rental, condo and townhomes. Single family options will range from entry-level single family, move-up for growing families and “executive housing” to meet the needs of a changing population. This shift to provide a more diverse housing supply supports future economic development objectives by retaining existing residents and attracting new residents from all social and economic backgrounds, and is an essential component for sustainable growth. These areas will provide much needed housing options for the city’s work force, young professionals, families, and senior residents. The purpose of the Housing Plan is to establish plans and programs to meet the existing and projected housing needs in Lino Lakes and to develop new strategies to promote the development of low and moderate income housing, which the City is required to provide for. The plan will guide the community to integrate housing into land use, transportation, economic and other decisions, as well as provide direction for the private sector to participate in the creation of affordable housing and life-cycle housing opportunities. This Housing Plan satisfies the requirements of the Metropolitan Land Planning Act and stipulations of Chapter 473.859, Subd 2(c) and Subd 4 of the Minnesota State Statues. The plan will contain background information on current housing supply and related statistics, an assessment of current and future housing needs, and future housing strategies to meet these needs. Goals and Policies During the Visioning and Comprehensive Plan processes, participants developed new goals and strategies for housing development in the community. The complete set of goals and strategies, which provided a general guide for the development of this chapter, is listed in Chapter 3, Land Use Plan. Those that are particularly related to housing in Lino Lakes are presented below: Rationale: Accessibility to the most attractive features of Lino Lakes is important to the citizens of our community. Goal 3: Ensure housing development is compatible with existing and adjacent land uses and provides accessibility to key community features and natural amenities. 4-2 Policies: 1. Link trails to parks, lakes, and schools. 2. Ensure commercial development and mixed-use areas are appropriately dispersed throughout the city. Rationale: Lino Lakes, as a developing city, is expected to accommodate the projected housing needs, entry level through retirement, of the community’s population. Policies: 1. Work with developers to identify innovative strategies for providing entry-level and life cycle housing. 2. Use redevelopment tools to revitalize aging residential properties, made possible by various federal, state, local government, and non-profit programs. 3. Provide expanded opportunities for housing ownership made available by various federal, state, local government and non-profit agencies. 4. Provide for and designate appropriate areas for high-density and mixed-use development. 5. Strive to integrate affordable housing in all residential land use districts. Rationale: As Lino Lakes continues to grow and develop, it must also accommodate the housing needs of a growing aging population. Policies: 1. Develop partnerships with non-profit and private sector groups who assist in the creation of senior housing. 2. Coordinate development of housing with retail accessibility (restaurants, shops, groceries). Policies: 1. Promote the improvement of the existing housing stock, and to encourage the rehabilitation or redevelopment of substandard housing 2. Encourage in-fill housing where appropriate. Housing Profile Regional Housing Market Trends Housing markets can vary greatly from one community to another within a large metropolitan region such as the Twin Cities. The forces that determine what type of housing gets built, how much housing gets built, and where that housing gets built can change dramatically from decade to decade or even year to year, often resulting in vastly different development experiences for individual communities. Nonetheless, metropolitan regions are, by definition, interconnected Goal 5: Improve availability of affordable and life-cycle housing. Goal 6: Enhance opportunities for senior housing. Goal 11: Maintain existing housing stock to insure a high-quality environment in all residential neighborhoods. 4-3 places. Any long-term projections of the housing market at a local level must first be viewed with an understanding of historical housing market trends at the metropolitan level. Regional demographic and construction trends associated with the Twin Cities housing market since 1960 are summarized in Table 4-1. Housing Conditions in Lino Lakes and Nearby Communities Age of Housing Stock In 2000 Lino Lakes had the youngest housing stock compared to its developing neighbors, with nearly 50% of its homes being built in the previous decade and nearly 90% having been built since 1970 (Chart 4-1). Forest Lake, being a small freestanding community prior to suburbanization, has the largest proportion of housing stock more than 30 years old at roughly 31%. Blaine began suburban-style development in the 1960s and has had consistent growth each decade since. Therefore, much of its housing stock is spread somewhat evenly over several decades. Despite Lino Lakes’ relatively young housing stock, the neighborhoods west of the Chain of Lakes Regional Park contain a significant number of homes that are more than 30 years old. Nearly 20% of the homes in these neighborhoods were built before 1970. This contrasts with the neighborhoods east of Chain of Lakes Park, which have less than 10% of their housing stock that was built more than 30 years ago. Chart 4-1. Age of Housing Stock Age of Housing Stock as of 2000 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Lino Lakes: Total Lino: W of Park Lino: E of Park Blaine Hugo Forest LakePct. of Housing Stock1990s 1980s 1970s 1960s 1950s Pre 1950 Source: 2000 US Census 4-4 DecadeGain in HHsGain in UnitsLevel of Pent-Up Demand Impact of Age Distribution Where Development OccurredImportant Developments/Milestones Lino Lakes Experience1960s 133,366 132,559 Slight pent-up demand by end of decade.Strong growth in the number of school-aged children increases demand for affordable single-family homes among young families. Strong growth in college-age persons increases demand for rental housing.Vast majority of homes built at the developing edge, which is adjacent to the cities of Minneapolis and St. Paul.16-County metro area surpasses 2 million people. Interstate freeway system is introduced.Lino Lakes is a rural community about 10 miles from the developing edge in Roseville and Maplewood.1970s 179,890 188,718 Slight oversupply of housing by end of decade.Strong growth in number of younger adults results in strong demand for rental housing and very affordable single-family homes.Sharp increase in number of units built in developed areas, but also sharp increase in units built in exurban areas to serve the needs of younger buyers who want single-family homes but can't afford to be close to the metro core.Interstate freeway system is mostly developed making once rural/exurban areas more accessible.Lino Lakes begins to experience some traditional suburban style development as the developing edge expands to nearby Arden Hills, Shoreview, and Vadnais Heights.1980s 178,688 198,146 Significant oversupply of housing units by end of decade.Very strong growth in the age groups skewed toward single-family homes. Significant growth beginning to occur among age groups in the highest income years.More homes built at the developing edge than previous decade. Sharp decline in the rural/exurban areas, likely the result of increased supply containing costs for closer-in units and a fuel crises in the early part of the decade.Mortgage interest rates hit record highs in the early part of the decade.Lino Lakes begins period at the edge of contiguous development as adjacent communities to the south are nearly built out or have strong growth management policies (i.e. North Oaks).1990s 183,969 161,591 Oversupply of 1980s leads to less construction in the 1990s, which results in huge pent-up demand by end of decade, especially since the number of in-migrants to the region far exceeds projections.Absolute decline in the age groups skewed to renting; age groups skewed toward single-family housing account for all the population growth. Homebuilding rebounds in the rural/exurban areas of the region.16-county metro area surpasses 3 million people. In the core 7-county region, 67,500 are consumed for 125,000 units, which is 1.85 units per acre. This compares to the 1980s when the ratio was 3.3 units per acre or the 1970s when it was 3.7 units per acLino Lakes experiences development commensurate with being located at the developing edge. Hugo and Forest Lake to the east and north also begin their periods of being at the developing edge.2000-2005108,380 133,508 Pent-up demand at end of 90s leads to rush among builders to build more units, which results in current oversupply.Strong growth spread among most age groups; young age groups rebound (Baby Boomlet) and seniors grow substantially as well. Age groups in the peak earning years (45 to 64) grow as well.Tremendous growth in rural/exurban areas, but also a strong rebound in the developed core as rising land prices and demographics create a market for "urban" style living.Mortgage interest rates hit record lows in the early part of the decade.Pace of construction in Lino Lakes drops below that of 1990s even though construction throughout the metropolitan area far exceeds that of the 1990s.Table 4-1. Regional Housing Market Trends 4-5 Household Tenure There is very little rental housing in Lino Lakes or any of its rapidly developing neighbors (Chart 4-2). As of 2000, more than 96 percent of Lino Lakes’ households were in owner-occupied units. Forest Lake was the only community with fewer than 90 percent of its households in owner- occupied units. This is largely because Forest Lake developed initially as a freestanding community that regularly constructed rental housing to meet the needs of a small but growing employment base. Even when Lino Lakes is analyzed as two distinct areas (west or east of the Regional Park), there is no significant difference in the prevalence of renter-occupied housing. Well over 90 percent of both areas of Lino Lakes consist of owner-occupied households. Chart 4-2. Household Tenure Household Tenure (2000) 96%94%98% 91%95% 78% 0% 20% 40% 60% 80% 100% Lino Lakes: Total Lino: W of Park Lino: E of Park Blaine Hugo Forest LakePct. of HouseholdsOwner occupied Renter occupiedSource: 2000 US Census 4858 Total Households 1969 Total Households 2889 Total Households 15898 Total Households 2125 Total Households 5433 Total Households Units in Structure Single family homes dominate the housing stock in Lino Lakes and Hugo (Chart 4-3). The historical development pattern of Blaine and Forest Lake, however, has created a slightly more varied housing stock with respect to the type of units in those communities. In Blaine, nearly 15 percent of the housing stock are mobile homes, which were developed predominantly in the 1960s and 1970s when Blaine was beyond the developing edge of the metro area. Forest Lake, in contrast, initially developed as a freestanding community that has regularly built apartment buildings to meet the needs of a growing employment base, which is reflected in the 15 percent proportion of its housing stock that are located in buildings of 10 or more units. Similar to tenure, there is very little difference between the areas of Lino Lakes that are west and east of the Chain of Lakes Park. Both areas are comprised mostly of detached, single family homes, which account for over 90 percent of the housing stock. 4-6 Chart 4-3. Units in Structure Units in Structure (2000) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Lino Lakes: Total Lino: W of Park Lino: E of Park Blaine Hugo Forest LakePct. of Housing StockMobile Home 10+ Units 3 to 9 Units Tw inhome Single-Family Source: 2000 US Census 4927 Total Units 1993 Total Units 2934 Total Units 16 17 0 T o t a l Units 2193 Total Units 5594 Total Units Pattern of Recent Construction Although owner-occupied, single family homes have dominated the development landscape in Lino Lakes and its neighbors over the last three decades, recent trends suggest that various types of multi-family product are becoming much more prevalent. In the six years between 2000 and 2005, roughly half of the new units constructed in Blaine, Hugo, and Forest Lake were either townhomes or multi-family units (Chart 4-4). This is a huge departure from the previous three decades when roughly 90 percent of the units built were single family homes. Much of this change can be attributed to demographic shifts, in which older households are downsizing from single family homes to maintenance free, attached dwellings. Also, younger households, who normally rent their housing, were able to afford modest forms of owner-occupied housing during the early 2000s because mortgage interest rates were at historically low levels. Furthermore, land costs driven by rapid development and increased commute times have converged at the developing edge of the metro area to make townhomes the affordable entry-level product when 20 years ago it might have been a modest detached single family home. Despite increased development of multi-family homes in Blaine, Hugo, and Forest Lake during the last six years, there has been minimal development of multi-family homes in Lino Lakes. When looking at the entire City, nearly 80 percent of the homes built between 2000 and 2005 were single family homes. Moreover, the only type of multi-family housing that was built during this time was townhomes. By analyzing the areas of the City west and east of the Regional Park, there is a slight difference in the prevalence of townhomes. West of the park, nearly one-third of the units built between 2000 and 2005 were townhomes, whereas only 15 percent of the units were townhomes in the areas east of the park. 4-7 Chart 4-4. Distribution of New Units by Type Distribution of New Units by Type (2000-2005) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Lino Lakes: Total Lino Lakes: W of Park Lino Lakes: E of Park Blaine Hugo Forest LakePct. of Units Permitted to be BuiltMultifamily Townhouse Single-Family Source: M etropolitan Council; City of Lino Lakes 116 3 N e w Units 416 New Units 747 New Units 4607 New Units 2068 New Units 16 0 8 N e w Units Housing Demand in Lino Lakes Significant growth is expected to occur through 2030 in southeastern Anoka County and northwestern Washington County as this area is currently the developing edge of the northeast sector of the Twin Cities metropolitan region. Over the next 25 years, most of the growth in this area will likely occur in neighboring Blaine, Hugo, and Forest Lake, as these communities contain significant tracts of undeveloped land that will conceivably be developed and marketed to the largest and most active segments of the market. Depending on appropriate densities and accessibility of individual developments to goods and services, Lino Lakes certainly has the potential to absorb a portion of this growth. The Metropolitan Council forecasts that Lino Lakes will grow by approximately 2,200 households between 2000 and 2010, by 1,500 households between 2010 and 2020, and by another 1,500 households between 2020 and 2030. Life-Cycle Housing and Housing Diversity Life-cycle housing is defined as housing that meets the needs of the community in all age ranges and affordability levels. To accommodate this range in housing options, the City’s housing supply should be diverse and consist of a variety of styles and price ranges to serve all residents. The Metropolitan Council has developed certain generalizations concerning each age group and its respective housing needs. This information is important in terms of developing a plan to provide a variety of housing to meet the needs of these different age groups and maintain a strong and vital community. Usually, people between the ages of 0 and 19 are students living with their parents. Those between the ages of 20 and 24 are often renters and do not often become first time home- buyers until they reach the ages of 25 to 34. First-time homebuyers (25-34) and move-up renters often prefer to purchase modestly-priced single family homes, townhomes, or rent upscale apartments. 4-8 People aged 35 to 49 often are in their peak earning years and can afford to buy a larger home with more amenities, referred to as move-up housing. Empty nesters are usually between the age of 50 and 64 and many of them may decide to downsize to a smaller housing unit, as with younger seniors, (between the ages of 65 to 74). This choice may include renting a multi-family unit, purchasing a lower-maintenance multi-family housing product such as a condominium or townhome, or purchasing a home in a retirement community. Older seniors (74 and above) may begin to require some level of assisted housing. These generalizations make fairly broad assumptions concerning where a person may chose to live during various points in a lifetime. These generalizations are sufficient to identify the variety of housing choices necessary to allow residents the option of living in Lino Lakes their entire lives, and to provide the opportunity for their children to do the same. Senior Housing Currently, the City of Lino Lakes contains one senior housing development, Cottages of Willow Ponds, an affordable rental project completed in 1996. The City’s Economic Development Authority provided Tax Increment Financing for the project. The development is located on Elm Street, and includes 12 buildings of four units each, for a total 47 units and one shared common area. Vacancies within this senior housing development have been very limited since its completion. As the community ages there will be an increase in demand for smaller, low maintenance housing in the community. This demand might be accommodated through a variety of townhouse styles or condominiums in mixed use settings. Empty nesters are a particularly active group on the younger end of the senior age range and locating developments near some of Lino Lakes’ natural amenities will be enticing to this group. As part of the implementation of the Comprehensive Plan, the City will cooperate with developers or other agencies to assess senior housing needs in the community. Affordable Housing Housing Cost The cost of housing is an increasing concern throughout the Metropolitan region. Housing costs directly influence one’s ability to rent or purchase a home in the community, and can also affect the ability of local employers to find workers. The cost of housing is influenced by the cost of land, labor, materials, community regulations and fees and interest rates. In Lino Lakes, the large supply of land benefits the community in terms of relatively lower costs. However, as municipal services are expanded, fees for development will increase. These fees, although paid by the developer initially, are included in the cost of the unit. Concern over the rising costs of housing affects businesses. Many employers view affordable housing as a benefit to the city, as most workers desire to live in the same community where they work or in a nearby community. With the substantial increase in employment anticipated for Lino Lakes in the next 20 years, affordable housing for workers will be a critical issue. Balancing Community Housing Needs with Environmental Protection Protection of the city’s natural resources has been, and will continue to be, a critical factor in development and growth decisions. However, balancing community housing needs with environmental protection measures is challenging for many communities. The City of Lino Lakes has effectively used conservation subdivision techniques to preserve valuable natural resource areas in recent years. However, because land costs for common open space areas are passed on 4-9 to residents of that particular conservation subdivision, the costs of residential units within conservation subdivisions are very high, significantly exceeding guidelines for affordable housing costs in the metropolitan area. Typically these units are only available to residents earning very high incomes; therefore young families and those who work in Lino Lakes are often unable to purchase homes in conservation developments. To create more affordable opportunities within conservation subdivisions, funding options through land trusts or non-profit organizations may be pursued that would allow the City or a non-profit organization to directly purchase open space areas created in conservation subdivisions. This would reduce costs for residents within conservation subdivisions, increasing the affordability of these units. Density bonuses may also be used as an incentive to developers to provide more affordable housing units within conservation subdivisions, as allowing for additional units on a site may make a conservation development more financially feasible. Other efforts to reduce the environmental impacts of residential development, such as green building techniques, can also increase development costs, which are then passed on to residents. This can make the provision of affordable housing units within green buildings difficult. As with conservation subdivisions, density bonuses may be used to increase the financial feasibility of residential developments that incorporate green building techniques. Funding options are available to increase the affordability of green building developments. The Minnesota Green Communities program, a collaboration of the Greater Minnesota Housing Fund, the Family Housing Fund, and Enterprise provides funding to support the production of “green” affordable housing. Livable Communities Act The Minnesota Legislature created the Livable Communities Act (LCA) in 1995. The LCA is a voluntary, incentive-based approach to encourage communities to provide affordable housing opportunities. Lino Lakes is a participant in the program. When the program was created, benchmarks were established and negotiated by each community to determine owner/renter mix, affordable ownership, affordable rental, and density goals These goals established housing guidelines for the period between 1996 and 2010. With these benchmarks, the Metropolitan Council created a grant program to help assist communities with the cost of developing affordable housing programs. These grants are highly competitive among participants, and historically they have been awarded annually. 2020 LCA Goals The Livable Community benchmark and goals expire in 2010. As part of the 2030 Regional Development Framework, the Metropolitan Council estimates that approximately 50,000 additional affordable housing units will be needed in the region between 2011-2020. The Metropolitan Council will be working with communities to adopt new agreements in 2011 for the next ten year planning cycle. In order to determine new benchmarks and goals for individual communities, the Metropolitan Council conducted a study “Determining Affordable Housing Need in the Twin Cities 2011-2020”. With this new plan the Metropolitan Council has changed its definition of affordable housing from current definition of 80 percent of area median income to 60 percent of area median income. The study then developed a method for allocating affordable housing to all communities within the region based on the following four criteria: Household Growth Potential Ratio of local low-wage jobs to low-wage workers Current provision of affordable housing Transit Service 4-10 Based on its analysis, the Metropolitan Council’s new affordable housing goal for Lino Lakes is to create 560 new affordable housing units between 2011 and 2020, which represents 35 percent of forecasted household growth. Based on the 2030 future land use map and the minimum proposed residential densities (i.e., 6 units per acre for high density and 8 units per acre for selected mixed use areas), the City has the capacity to accommodate the affordable housing goal. The level of affordability is important to understand when assessing the amount of current affordable housing and the price point for new units to meet this goal. According to Metropolitan Council 2007 Affordability Limits, the area median income for the seven-county Minneapolis-St. Paul (MSP) area adjusted by HUD to be applicable to a family of four is $78,500 in 2007. Eighty percent of the median household income is $62,800; 60 percent is $47,100 and 50 percent is $39,250. Applying an interest rate on a 30-year fixed-rate home loan of 6.2 percent for 2007 and other payment factors to the 80 percent area median income, yields an affordable purchase price of $206,800 in 2007. According to Anoka County Assessor’s data there are 779 homesteads, or 13 percent of total 2007 households, that fall under this 80 percent purchase price limit in Lino Lakes. The price point for an affordable home at 60 percent of area median income drops to $152,000. There are currently only 82 existing homesteads, or 1 percent of total 2007 households, in Lino Lakes at or below $152,000 (Anoka County assessor’s data/GIS). It is the new 60 percent measurement that will be required for the potential affordable housing units anticipated between 2011-2020 in Lino Lakes. Achieving this new affordability goal will be very difficult without the funding tools that have in the past been offered by the Metropolitan Council and other agencies. Future Affordable Housing To provide for affordable housing in the community, the City is taking the appropriate regulatory measures within the Comprehensive Plan by guiding areas for higher density housing and including policies to integrate affordable housing in all residential land use districts. These regulatory measures represent one of the City’s most effective tools for the development of affordable housing. To meet affordable housing goals, the City has planned for potential new growth with a variety of residential land use types and densities for the development of life-cycle and affordable housing across the city. The city’s future land use plan can accommodate the goal of 560 High Density and Mixed Use units at a minimum density of 6 units per net acre by 2020. While the City is doing its part in creating a regulatory land use plan to guide areas for higher density housing, which is where most affordable housing will likely occur, barriers to development of affordable housing still exist in Lino Lakes and the region. Some of these barriers are beyond the City’s control, including the following: Steady increases in land prices and construction costs. Physical limitations of land due to wetlands, poor access, poor soils that would increase the cost of land development or construction. State, county and local tax structures. There are some significant barriers to construction of new affordable housing, and the above list includes just a few of these barriers. Despite these difficulties, the provision of affordable housing is an important effort that cities undertake. The most effective role Lino Lakes will have in the provision of affordable housing is its regulatory tools, including land use and zoning regulations that do not impede the construction of affordable housing. Many of these tools can be used to encourage developers. Flexibility, through the use of the Planned Unit Development (PUD) process, may be provided to encourage the construction of affordable housing. 4-11 Acknowledging the regional housing goals established by the Metropolitan Council does not commit the City of Lino Lakes to provide funding for housing. The City will continue to investigate means to pursue the goals in its comprehensive plan. However, this should not be interpreted as a commitment to use City funds to overcome the financial obstacles to life cycle and affordable housing. Housing Implementation Strategies and Recommendations The following Housing Action Plan identifies efforts Lino Lakes will pursue to create opportunities to maintain the existing housing stock, and to provide increased housing options for future residents. These strategies are based on goals and strategies for Community, Neighborhood and Residential development developed by the Citizen Vision Committee. The strategies are designed as a resource tool for specific measures the City can effectively undertake and enforce while others are designed as tools to encourage developers to incorporate affordable housing into future development. As future subdivisions are proposed, the City will use these resources and implement the strategies in working with developers to create new affordable housing opportunities. Many of these items are things the City itself can do, while others will occur through partnerships the City will seek to provide for and maintain housing quality and increase affordable housing opportunities. To ensure housing development is compatible with existing and adjacent land uses and provides accessibility to key community features and natural amenities (Goal 3), the City will: Offer incentives to developers who provide for affordable housing units while conserving environmentally sensitive sites, such as density bonuses, expedited permitting processes, or reduced fees. Pursue funding opportunities to increase the affordability of housing units within conservation subdivisions. Pursue funding opportunities to incorporate green building techniques within affordable housing developments. Encourage innovative low impact development to preserve open space or natural features. Ensure that all new housing, including high density, adheres to the highest possible standards of planning, design and construction feasible. Promote development of neighborhoods that incorporate housing in a range of densities and affordability limits in close proximity to shopping, services, daycare, and medical services. Safe access to parks and schools, and the ability to walk, bike or have access to transit should be part of the design. To improve the availability of affordable housing and enhance opportunities for senior housing (Goals 5 and 6), the City will: Seek housing developers to work cooperatively with the City to construct affordable units. Create an incentive based program or Residential Planned Unit Development Ordinance that includes density bonuses for construction of affordable housing. This allows an increase in density, beyond the underlying zoning, if the development includes affordable housing. Participate in the Livable Communities Act Local Housing Incentives Program. 4-12 Activate and utilize powers and tools of the City Economic Development Authority and/or a City Housing and Redevelopment Authority to make funds available for the creation of new affordable housing. Develop policies to use Tax Increment Financing to fund activities that increase new affordable housing. Utilize techniques, such as land trusts to maintain long-term affordability for any new affordable housing unit. Support and actively promote Anoka County’s 1st Time Homebuyers programs to assist new homeowners entering the market for existing homes. Partner with, support and market programs offered by the County, State, MHFA, Federal Government and non-profits to fund the development of affordable housing. Cooperate with developers or other agencies as appropriate to assess senior housing needs in the community. Allow the creative use of site planning or PUDs that provide flexibility for development containing affordable housing such as a reduction in lot size, setbacks, street width, floor area and parking requirements, and consideration of reduction in City fees. Update the zoning ordinance and subdivision ordinance to reduce impediments to affordable housing. Use the land use plan as a tool to provide a variety of residential land uses in a range of densities, concentrating higher density opportunities along major transportation and transit corridors and around future job centers. Periodically review land use regulations to determine the effectiveness of current ordinances in encouraging additional affordable units as well as encouraging modifications to keep the existing housing stock desirable and livable. Streamline permitting and development processes to ease the rehabilitation or improvement of existing homes and reduce unwarranted cost impacts on the price of entry-level homes. Work with the Anoka County HRA to meet the community’s life-cycle and affordable housing needs. To maintain existing housing stock to ensure a high-quality environment in all residential neighborhoods (Goal 11), the City will: Support and actively promote housing rehabilitation programs for existing owner- occupied homes and rental buildings or units. This includes promotion of all county and state programs and non-profit programs. Utilize the city’s website, newsletter and other sources for promotion and advertising of housing programs. Continue enforcement of the Housing Maintenance Code to maintain existing housing stock. Study the feasibility of establishing a program to require a property inspection and disclosure report before residential property changes hands. Maintain City rental licensing program and enforcement efforts. Promote programs that encourage maintenance of existing house including a housing remodeling fair, neighborhood watch programs, city beautification programs, city wide clean up programs, etc. Develop a list of available resources and providers of in-home services to older adults and those with special needs. 2017 AFFORDABILITY LIMITS FOR OWNERSHIP AND RENTAL HOUSING Livable Communities Act Grants What is affordable housing? The Metropolitan Council's 2040 Housing Policy Plan defines affordable housing as housing that is affordable to low- and moderate-income families. Who qualifies for affordable housing? For 2017, the affordability limit is 80% of the area median income for both rental and ownership housing. In 2017, the area median income (AMI) for a household of four is $90,400. Under these limits, a family of four can earn up to $68,000 to qualify for affordable housing. For details on how this is calculated, see the History of Median Income, below. To implement the Livable Communities Act in 2017, the Council will use the following amounts as the upper limits for affordable rental and ownership housing. Rental housing Rents include tenant-paid utilities. 2017 Rental Housing # Bedrooms 30% AMI 50% AMI 60% AMI 80% AMI Efficiency $474 $791 $949 $1,265 1 Bedroom $508 $848 $1,017 $1,356 2 Bedrooms $610 $1,017 $1,220 $1,627 3 Bedrooms $705 $1,175 $1,410 $1,880 4 Bedroom $786 $1,311 $1,573 $2,097 Ownership housing For owner-occupied housing, the income limit includes principal, interest, property taxes and home insurance. Assumptions include: Fixed-interest, 30-year home loan Interest rate of 4.375% A 29% housing debt-to-household income ratio A 3.5% down payment A property tax rate of 1.25% of the property sales price Mortgage insurance at 0.85% of unpaid principal $100/month for hazard insurance 2017 Home Ownership Household Income Level Affordable Home Price 80% AMI ($68,000)$236,000 60% AMI ($54,240)$185,000 50% AMI ($45,200)$151,500 30% AMI ($27,100)$85,000 In 2017, applying an interest rate of 4.375% on a 30-year fixed-rate home loan and the standard mortgage assumptions listed above to the 80% AMI amount for a family of four ($68,100) yields an affordable purchase price of $236,000. This compares to a 2015 limit of $240,500 and a 2016 limit of $235,000. The purchase prices affordable at these income limits have increased for 2017 compared with 2016 because of increasing interest rates and an increase in the region's Area Median Income. History of area median income Through 2010, the Council identified a purchase price ceiling for owner-occupied homes based on what a family of four with an income at or below 80% AMI could afford at prevailing interest rates. For affordable rental units, the limit was Metropolitan Council - metrocouncil.org maximum monthly rents affordable for households at 50% AMI. From 2011 through 2014, the Council used 60% AMI as the income limit for both rental and ownership costs. This level was consistent with the funding criteria preference adopted by the Metropolitan Housing Implementation Group (MHIG) in 2001 and was a commonly-used threshold for affordability in federal, state, and local housing programs. The table below lists the household incomes at the current and previous levels of area median income, as calculated by the U.S. Department of Housing and Urban Development (HUD). Please note that due to constraints and adjustments used in HUD’s calculations, the income limits shown here do not necessarily equal the area median income multiplied by the given percentage. HUD's Area Median Income for a family of four for the Minneapolis-Saint Paul-Bloomington Metropolitan Statistical Area AMI 2017 2016 2015 Area Median Income $90,400 $85,800 $86,600 80% of Area Median Income $68,000*$65,700*$65,800 60% of Area Median Income $54,240 $51,480 $51,960 50% of Area Median Income $45,200 $42,900 $43,300 30% of Area Median Income $27,100 $25,750 $26,000 *The 80% of Area Median Income limit is capped at the U.S. national median family income Blaine Centerville CirclePines Columbus ForestLakeHam Lake Hugo LinoLakes NorthOaksShoreview WhiteBear Twp. Owner-Occupied Housing by Estimated Market ValueLino Lakes Source: MetroGIS Regional Parcel Dataset, 2015 estimated market values for taxes payable in 2016. Note: Estimated Market Value includes only homesteaded unitswith a building on the parcel. 1 inch = 0.9686 miles -Owner-Oc cupied Housing Estimated Market Value, 2015 $238,500 or Less $238,501 to $350,000 $300,001 to $450,000 Over $450,000 County Boundaries City and Township Boundaries Lakes and Major Rivers Street Centerlines CITY OF LINO LAKES An Existing Housing Assessment is the first step in identifying current housing needs for your community. This information meets the minimum data requirements for your Existing Housing Assessment. You are free to copy and paste this table directly into your Housing Element, recreate it using the same data, or incorporate it into a table with additional or alternative data using reliable sources. This table is not a comprehensive picture of your community’s housing stock, but a solid starting point to identify and address your existing housing needs. Please contact Council staff if you have any questions. Total housing units 1= 6,546 Table 1 Affordability 2 Table 2 Tenure 3 Table 3 Type 1 Table 4 Publicly Subsidized Units 4 Table 5 Housing Cost Burdened Households 5 1 Source: Metropolitan Council 2 Source: Metropolitan Council staff estimates based on 2014 and 2015 MetroGIS Regional Parcel Datasets (ownership units), 2008- 2012 Comprehensive Housing Affordability Strategy data from HUD (rental units and household income), and the Council's 2014 Manufactured Housing Parks Survey (manufactured homes). 3 Source: U.S. Census Bureau,2010-2014 American Community Survey five-year estimates; counts adjusted to better match the Council's 2014 housing stock estimates 4 Source: HousingLink Streams data, available online at http://www.housinglink.org/streams 5 Housing cost burden refers to households whose housing costs are at least 30% of their income. Source: U.S. Department of Housing and Urban Development, 2008-2012 Comprehensive Housing Affordability Strategy (CHAS) data, with counts adjusted to better match Metropolitan Council household estimates Units affordable to households with income at or below 30% of AMI Units affordable to households with income 31% to 50% of AMI Units affordable to households with income 51% to 80% of AMI 129 349 2,204 Ownership units Rental units 6,019 527 Single-family units Multi-family units Manufactured homes Other housing units 6,213 238 95 0 All publicly subsidized units Publicly subsidized senior units Publicly subsidized units for people with disabilities Publicly subsidized units: All others 106 0 0 106 Income at or below 30% of AMI Income 31% to 50% of AMI Income 51% to 80% of AMI 286 238 398 August 2016 CENSUS, FORECASTS & ESTIMATES COMMUNITY PROFILES REPORTS, ANALYSIS & METROSTATS DOWNLOAD DATA OVERVIEW PEOPLE ECONOMY AND JOBS INCOME AND POVERTY HOUSING COMMUTING LAND USE AND DEVELOPMENT CHART EXPORTS Select another area: Lino Lakes https://stats.metc.state.mn.us/profile/detail.aspx?c=02395725 COPY PROFILE URL TO CLIPBOARD COMMUNITY PROFILES Community Profile for Lino Lakes Each chart in the Community Profiles can be saved in JPEG, PNG or PDF formats or printed as a standalone page. To save as an image, right-click on the chart and select a format option. Once the "capturing data" process is over, review the saved charts on the CHART EXPORTS tab. Click the "save" button for any chart export listing you wish to save. Please note that the data source is not included in the saved images. Please Contact Us by Clicking Here Housing Type Housing Units Permitted New Affordable Housing Housing Tenure and Vacancy Homeownership Median Housing Value Median Gross Rent Count of Existing Home Sales by Price Households Experiencing Housing Cost Burden Source: U.S. Census Bureau Decennial Census and Metropolitan Council Housing Stock Estimates. Download chart data Back to top Census 1990 Census 2000 Estimates 2010 Estimates 2016 Housing Type in Lino Lakes 0 1,400 2,800 4,200 5,600 7,000 Single-Family Detached Townhomes (single-family attached) Duplex, triplex and quad Multifamily (5 units or more) Manufactured Home Other (Boat, RV, etc.) About Us News & Events Data & Maps Publications & Documents Doing Business Council Meetings Contact Us Employment COMMUNITIES PARKS TRANSPORTATION WASTEWATER & WATER HOUSING PLANNING Note: Between 2003 & 2004 housing unit type definitions changed: Duplex category was expanded to include duplex, triplex and quad, and the definition of multifamily changed from 3 or more units to 5 or more units. Source: Metropolitan Council Residential Building Permit Survey. Download chart data Back to top Select data to chart: Owner-occupied Renter-occupied Source: Metropolitan Council Affordable Housing Production Survey. Download chart data Back to top 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 New Housing Units Permitted by Lino Lakes 0 40 80 120 160 200 240 280 320 Single-Family Detached Townhomes (single-family attached) Duplex Duplex, triplex and quad Multifamily (3 units or more)Multifamily (5 units or more)2003200420052006200720082009201020112012201320142015Affordability of New Units Added by Lino Lakes 0 25 50 75 100 125 150 175 200 Owner-occupied: Affordable Owner-occupied: Over Affordability Threshold Rental units: Affordable Rental units: Over Affordability Threshold Census 1990 Census 2000 Census 2010 ACS 2011-2015 Housing Tenure and Vacancy in Lino Lakes 0 1,400 2,800 4,200 5,600 7,000 Owner-occupied Renter-occupied Vacant Source: U.S. Census Bureau Decennial Census and American Community Survey. Download chart data Back to top Select any comparisons to include in the chart. County Twin Cities Region (7-county) Compare another place Anoka County Minneapolis-St. Paul MSA Source: U.S. Census Bureau Decennial Census and American Community Survey. Download chart data Back to top Select any comparisons to include in the chart. County Minneapolis-St. Paul MSA Compare another place Anoka County Source: U.S. Census Bureau Decennial Census and American Community Survey. Download chart data Link to inflation calculator Back to top Select any comparisons to include in the chart. County Minneapolis-St. Paul MSA Compare another place Anoka County Census 1990 Census 2000 Census 2010 ACS 2011-2015 Homeownership Rate in Lino Lakes 95.5%96.4%94.2%90.8% 81.2%83.4%81.9%80.0% 67.8%71.4%70.0%68.3% Lino Lakes Anoka County Twin Cities Region (7-county) Census 1990 (1989 dollars)Census 2000 (1999 dollars)ACS 2006-2010 (2010 dollars)ACS 2011-2015 (2015 dollars) Median Housing Value in Lino Lakes (in $000s) $92.1 $162.7 $284.5 $259.6 $83.5 $131.3 $223.1 $187.6 $88.3 $141.2 $239.1 $213.9 Lino Lakes Anoka County Minneapolis-St.Paul MSA Source: U.S. Census Bureau Decennial Census and American Community Survey. Download chart data Link to inflation calculator Back to top Select data to chart: 2015 Source: Certificate of Real Estate Value, Minnesota Department of Revenue. Download chart data Back to top Source: U.S. Census Bureau Decennial Census and American Community Survey. Use caution when comparing 1990 and 2000 data (which include only some households) to American Community Survey data (which include all households). See the metadata for more information. Census 1990 (1989 dollars)Census 2000 (1999 dollars)ACS 2006-2010 (2010 dollars)ACS 2011-2015 (2015 dollars) Median Gross Rent in Lino Lakes $615 $747 $1,137 $1,123 $498 $649 $870 $971 $479 $641 $842 $931 Lino Lakes Anoka County Minneapolis-St.Paul MSA Under $100 $100 to $124 $125 to $149 $150 to $174 $175 to $199 $200 to $249 $250 to $299 $300 to $499 $500 to $999 Count of Existing Home Sales by Price in Lino Lakes (in $000s) 5 10 14 23 17 46 40 52 7 Census 1990 Census 2000 ACS 2006-2010 ACS 2011-2015 Percent of Households Experiencing Housing Cost Burden in Lino Lakes 0% 19% 38% 57% 76% 18%19% 30% 25% 16%18% 29% 23% 66% 59%56% 49% All households experiencing cost burden Owner households experiencing cost burden Renter households experiencing cost burden Lino Lakes 2040 Comprehensive Plan Update Chain of Lakes Rotary Club Meeting in a Box, July 26th 2017 Page 1 Summary of Meeting Results Chain of Lakes Rotary Club Meeting in a Box, July 26th 2017 S.W.O.T. Discussion 1. What are Lino Lakes’ greatest strengths? What makes the City a great place to live? Please list at least 5 things you think make Lino Lakes great. (Strengths can refer to the community, the people, public facilities, natural resources, character, governance, etc.) • Parks & trail • City Hall staff • Opportunities to get involved • Natural areas/open space • Retail opportunities • People volunteering to help the community grow—Rotary, etc. • Parks and trails investment • Location • Safety • Security • Community • Park system • Trails • Friendly people • It’s a neighborhood community—people get to know their neighbors • It’s save; no crime • Parks & trails • Proximity to Minneapolis, airport & St. Paul • Great neighborhood • Safe community • Better commercial areas from 15 years ago • Expanded trail system 2. What are Lino Lakes’ weaknesses? Where does Lino Lakes fall short from your perspective? What is missing that could better reflect the community vision? • Deteriorating road system • Complacency- Lino is great, continue investing Chain of Lakes Rotary Club Meeting in a Box, July 2017 Page 2 • No civic center • Other than YMCA there isn’t a meeting social area (Community Center) • Pockets of poverty • People don’t know difference between Centerville, Circle Pines, Lexington, etc. • Lack of a commercial center • Staff/council relationship 3. What are the greatest opportunities in the community? What things do we do well already, but could do better? What areas do we fall short in that we could be better at? Where are the greatest opportunities for the community? • Continue focus on growing commercial/retail businesses. This will allow city to maintain services, tax rate • Growth of commercial business in area • Higher taxes • Finish retail area—legacy 4. What are the threats that stand in the way of achieving the opportunities or maintaining our strengths? What threatens the community or city from achieving their goals? • Poor economy • Council/charter arguing—stalemate • Price of gas at $4-$5 per gallon could keep people from work—lack of jobs • Lack of funds to improve • Taxes • Not maintaining high level of public safety Item #11 Monthly Progress Report September 5, 2017 Item Last Action Taken Staff Status Digital Scanning Project 8/7/17 – City Clerk provided a written report of what has been completed Julie Staff is utilizing a volunteer and employee on light duty assignment White Bear Lake Restoration Assn. v. Dept. of Natural Resources (DNR) 8/25/16 – The NE Metro Water Summit Group met to discuss a draft JPA that would create a coalition of cities to work together as one voice with regards to water supply issues in the northeast metro area. Jeff The trial was held March 6-24 and we’re still awaiting the judge’s ruling Location of Veteran’s Memorial 12/5/16 – The Council’s preferred location is the island in front of city hall Mike The Council may need to make a decision on who will prepare a design Upgrade of HD Audio/Visual Equipment in Council Chambers and Control Room 8/28/17 – Council awarded bid to Alpha Video in the amount of $96,220.189 Jeff Installation will be scheduled in the following weeks Channel 16 Upgrade 10/4/16 – NMTV Operations Committee agreed that the local government channels needed more attention Jeff The updated bulletin board will be switched over after Labor Day Arlo Lane Stop Sign Request 8/7/17 – City Engineer reported results of speed and volume counts at different locations Mike Letter was mailed to residents. Police increased enforcement during peak hours. Culvert Maintenance ACD 10-22-32 7/5/17 – Staff was directed to monitor the culvert and to work with the RCWD on a longer term solution Mike RCWD cleaned the culvert. Staff continues to monitor it. Updates are shown in italics.