HomeMy WebLinkAbout07-02-2018 Council Work Session PacketCITY COUNCIL WORK SESSION AGENDA
CITY OF LINO LAKES
Monday, July 2, 2018
Community Room
6:00 P.M.
1. Community Solar Gardens, Katie Larsen and Kendra Lindahl
2. 2018 Street Reconstruction Project Update (West Shadow Lake & LaMotte Areas),
Michael Grochala and Jim Stremel of WSB & Associates
3. 80th Street ROW, Snowmobile Club Use, Michael Grochala
4. Comprehensive Parks and Trails System Capital Improvement Plan Update, Rick
DeGardner
5. Phase I Recreation Complex Concept Plan, Rick DeGardner
6. Anoka County Regional Economic Development Initiative, Michael Grochala
7. 2019 City Budget, Jeff Karlson
8. Council Updates on Boards/Commissions, City Council
9. Monthly Progress Report, Jeff Karlson
10. Review Regular Agenda
11. Adjourn
1
WORK SESSION STAFF REPORT
Work Session Item No. 1
STAFF ORIGINATOR: Kendra Lindahl, Landform
MEETING DATE: July 2 , 2018
TOPIC: Lino Lakes Solar LLC Community Solar Garden Text Amendment
INTRODUCTION
The applicant Lino Lakes Solar LLC has submitted a text amendment application to allow
Community Solar Gardens in the City. The City currently allows individual property to install
solar panels on their houses or buildings via a building permit. There have also been a limited
number of requests from property owners to install one or two ground-mounted solar panels as
accessory uses.
The applicant is requesting that the City amend the Zoning Ordinance to allow Community Solar
Gardens. This is a land use issue only—The City is not asked to participate financially or be a
subscriber in the project, but rather is being asked whether they support a change to consider
allowing this land use in certain zoning districts.
BACKGROUND
May 9, 2018 Planning & Zoning Meeting
The Planning & Zoning staff report dated May 9, 2018 details the project. The Board was
supportive of exploring community solar, but raised a number of concerns. Board members did
not want to see panels outside of the urban reserve areas, and were concerned about installing
panels on developable land. If an ordinance were to be drafted, they would like minimum lot
sizes instead of maximum lot sizes, details about screening and landscaping, and
decommissioning standards.
The Planning & Zoning Board held a public hearing on May 9, 2018 and voted unanimously to
recommend that the Council consider this request.
ADDITIONAL INFORMATION SINCE THE JUNE 4, 2018 COUNCIL MEETING
City Council reviewed the project at a June 4, 2018 Council Workshop. The Council raised a
number of questions. Staff researched the questions and provides a summary of the questions
raised and a response to help the City Council determine whether or not to proceed with
consideration of a Zoning Ordinance amendment to allow Solar Gardens as a land use in certain
districts. If the Council supports the potential land use, staff would begin drafting an ordinance
for consideration at a Public Hearing.
2
Figure 1 CSG Financial Model
How Many Homes Can Be Powered by a 1 MW Community Solar Garden:
• The number of homes that can be powered by 1 MW of energy. The applicant suggests
that 300 homes can be powered by 1 MW of energy. Based on staff’s research this seems
to be a conservative estimate. The Idaho Public Utility Commission estimates 1 MW
could support 650 homes. Staff also found examples stating that 1 MW could support
1,000 homes. Staff notes that panel efficiency varies by region, type of panel, and
changes in technology. Panels are becoming more and more efficient every year and that
increases in technology will continue to increase the power harvested by the solar cells.
• Staff also prepared an exhibit showing Xcel Service Territory over the 2040 Land Uses.
Where can we see a 1 MW Community Solar Garden (CSG)?
There are a number of community solar gardens located throughout the metro area. However,
when the legislation was first approved, much larger 40+-acre sites for 5 MW CSGs were more
common. These larger CSGs can be seen in several locations in Chisago County. The closest 1
MW farm that the applicant has found is located at the northeast intersection of Hwy 212 and 5th
Street SE on the eastern city limit of Buffalo Lake, Minnesota.
How does the financial model of a Community Solar Garden work?
A Community Solar Garden is a private entity and the City is not being asked to subsidize the
development of the CSG. The request is simply to consider whether this is an appropriate land
use in certain locations within the City of Lino Lakes.
The following is a general
summary of how the
program works:
• Who subscribes?
The community solar
garden model allows
individuals,
businesses, schools,
and civic entities –
known as
“subscribers” – that
have limited options
to install their own
on-site solar panels to
purchase or
“subscribe” to a
portion or a “share”
of the output from a
given solar garden.
3
Currently, Lino Lakes Community Members, businesses, and institutions can seek out a
developer and subscribe to a Community Solar Garden. In other words, they already benefit from
those communities that have allowed the construction of community solar gardens. They must
seek out the provider that serves their individual market.
• How does it work? Xcel receives power from a number of sources. The individual
subscribes to the developer’s solar array and pays Xcel for the energy usage at a
subsidized rate. Xcel pays the developer for the energy. This process is shown in Figure
1.
The above is a general description of the financial model of the process, however, staff
notes that the details of each business model may vary slightly depending on the
business.
The applicant has provided an exhibit showing the cost savings for a potential institutional user.
Staff has also included an informational handout that shows the potential savings for an
individual user.
• How is it financed? In terms of raising capital to finance projects, CSGs are the same as
any other business. They obtain financing from investors and lending institutions who
review the proforma and operations of the business prior to lending or investing.
• How is the City financially impacted? One MW solar gardens do not have an impact on
the city finances. While 5 MW gardens are taxed at a commercial rate, the applicant has
clarified that in fact 1 MW gardens are taxed at an agricultural rate.
Role of the City
As with all businesses, the financial model is a business decision, not a City policy-making
decision. It is the role of the City to evaluate the projects in terms of how the use impacts the
general health, safety, and welfare of the community. Specifically, Council should consider
whether or not the use is compatible with the desired land uses and growth patterns of the City.
Typical land use considerations include:
• Consistency with the Comprehensive Plan
• Appropriate location
• Structure sizes
• Lot sizes and setbacks
• Nuisance conditions such as glare, noise, dust, smoke, etc.
• Environmental impacts such as stormwater runoff or pollution
• Mitigation of visual impacts
• Duration of use (CSGs require a minimum 25-year commitment)
Unless the City has a financial stake in the project, the financial model is strictly a business
decision. The City has no financial stake in the Community Solar Garden land use decision.
4
Figure 2 Eichtens Farm, Center City MN (5 MW)
Size/Scale of Solar
When we think about solar as a principal use like we would see with a community solar garden,
we need to think about size and scale. The applicant would only be allowed to develop one MW
facility which would require a minimum of five to eight-acres of land. The statute does not allow
more than one MW facility to be co-located, however, the statute does not spell out how gardens
constructed by a single developer and located adjacent to one another are treated. Council could
limit the total acreage of a solar farm on a site to 8 acres of panel coverage (which would allow a
1 MW facility) or provide a minimum lot size on which panels could be constructed.
Panel Styles and Types
Panel height typically ranges from 6 feet to 10 feet from
grade. A recent project that staff worked on provided panels
that ranged from 3 to 6 feet from grade. The height is largely
determined by the angle of the panel on the landscape. The
panel itself is about 3 feet wide and 6 feet long. Panels are
placed next to one another to create rows of panels. Rows of
Figure 3 Typical Panel Size and Height
5
panels can be hundreds of feet long. We’ve provided detail drawings showing typical panel size
and height (Figure 3).
RECOMMENDATION
Staff recommends that the City Council consider whether or not Community Solar Gardens are
an appropriate land use in the city of Lino Lakes.
1. If the City Council believes that CSGs are an appropriate land use, they should direct
staff to begin drafting an ordinance amendment for consideration at future Planning &
Zoning and Council meetings.
2. If the City Council does not wish to allow CSGs in the City of Lino Lakes, they should
notify the applicant that they do not support this land use and suggest that the applicant
withdraw the application for a Zoning Ordinance Amendment.
ATTACHMENTS
1. Photos of Community Solar Gardens
2. Community Solar Garden Subscriber Question information sheet from the Minnesota
Department of Commerce
3. Chisago County Solar Ordinance
4. Xcel Service Areas in Lino Lakes
5. Information Brief from the Research Department at the Minnesota House of
Representatives on the Xcel Legislation
Landform® and Site to Finish® are registered service marks of Landform Professional Services, LLC.
CSG Photos
Scandia, MN Rockford, MN
Farmington, MN (5 MW)Leech Lake, MN Waverly, MN
North Carolina - Note chain link fence
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
COMMUNITY SOLAR GARDEN
SUBSCRIBER QUESTIONS
To help prospective subscribers decide which project might be right, CERTs, Minnesota Department of
Commerce, Minnesota Solar Energy Industry Association, and Minnesota Renewable Energy Society have
developed a document outlining what any Subscriber Agreement should address and highlighting the
questions that can be asked up front to ensure a clear understanding of the subscription and its terms.
Before subscribing to any particular project, all subscribers
should ask for and review the operator’s subscriber agreement.
All subscriber agreements should address elements included in
the Community Solar Garden Subscriber Disclosure Checklist
(see link at left). Additional questions that subscribers can ask
are on the pages to come.
Q What should you know before subscribing?
Q What’s the point of this document?
Community Solar Gardens (also called Community Solar and Community-Shared Solar) are centrally-
located solar photovoltaic (PV) systems that produce electricity for participating subscribers. They are a
way for people in Minnesota to benefit from solar PV systems without installing their own stand-alone
project. Programs vary by utility in Minnesota. Many cooperative utility customers can subscribe to a
project owned by their local utility. Customers served by Xcel Energy can participate in projects offered
by private Community Solar Garden Operators.
Q What are Community Solar Gardens?
This document begins by briefly
introducing Community Solar
Gardens and what you should
know as a potential subscriber.
It then continues with questions
that you can ask operators as
you move forward.
Next pages: Important subscriber questions & info
See what Community Solar
Subscriber Agreements should
include by downloading our
subscriber checklist at
MnCERTs.org/CSG-Disclosure
GET THE CHECKLIST P
M R E S
Q Company & Project Details
How long have you been in business? How many installations have you done? Do you have references I can contact?•
Will I be able to visit the system? How can I show I’m participating?•
Will I be able to see online how much my subscription is producing for the life of my subscription agreement? •
How will I receive updates about the project? How will I be notified if something goes wrong? •
Who handles my subscription over time? Who do I call if I have questions?•
When do I need to sign a subscriber agreement? What kind of paperwork will I need to fill out? •
What types of PV modules will be used in the project? Why did you choose them?•
What will you do to ensure that the panels won’t become shaded by another structure in the future?•
Q Pricing & Compensation
Subscribers will be compensated for their share of the Community Solar Garden system’s output via a credit on
their utility bill. The credit will be made on a dollar per kilowatt hour produced ($/kWh) basis for most utilities.
Subscribers in Xcel Energy’s service territory will be compensated at the Applicable Retail Rate (ARR) for the
duration of their subscription, which may last up to 25 years. The ARR is calculated by Xcel Energy by dividing the
previous year’s revenues by sales for each customer class; the ARR will be updated every year. Subscribers should
verify their service class (i.e., residential service, small general service, or general service) prior to subscribing. The
current ARRs plus renewable energy credit (REC) payments by Community Solar Garden size are listed below.
Most operators make assumptions that the ARR will change over time when they estimate a subscriber’s potential
return on investment. The retail rate trends over the past 20 to 25 years are a good rule of thumb to ground truth
these numbers. An assessment by Xcel Energy indicates that the ARRs across all customer classes have increased an
average of 2.6 to 2.9 percent per year since 1992.
The Minnesota Public Utilities Commission has jurisdiction over Community Solar Garden rates for Xcel Energy and
other investor-owned utilities. The Commission may change the community solar garden subscription rates for
future projects, but community solar gardens forming under the current ARR structure will receive the ARRs in
place at the time the solar energy is generated for the life of the community solar garden.
RECs stands for Renewable Energy Credits, which represent the renewable attributes of solar and other renewable
energy generation. Operators in Xcel Energy’s Community Solar Garden program may elect to sell the RECs to the
utility. In the case of Xcel Energy customers, the compensation will be paid directly to the subscriber based on the
size of the garden as described in the table above. If the RECs are sold, subscribers cannot market themselves as
“solar powered,” as the green attributes for subscription are assigned to the owner of the RECs. This is consistent
with Green-E best practices to avoid double counting (see link in More Resources section).
2017 Xcel Energy Bill Credit Rates
Service Type
Standard ARR
(Applicable
Retail Rate)
Enhanced ARR
for gardens >
250 kW (+ $.02)
Enhanced ARR
for gardens ≤
250 kW (+ $.03)
Value of
Solar
Residential Service ($/kWh)$0.13310 $0.15310 $0.16310 $0.10330
Small General Service ($/kWh)$0.12798 $0.14798 $0.15798 $0.10330
General Service ($/kWh)$0.10296 $0.12296 $0.13296 $0.10330
Renewable Energy Credit Ownership Customer owns Xcel owns Xcel owns Xcel owns
Q Subscription Terms
To participate in a project, a potential subscriber must purchase a subscription. There are two primary subscription
models: pay upfront and pay-as-you-go. In a pay upfront model a subscriber purchases a subscription for a
onetime fee that covers the life of the agreement. The subscriber reaps the subscription benefits (utility bill credits
for energy produced) for the length of their subscription. In a pay-as-you-go model a subscriber pays in
installments, which are often based on the Community Solar Garden’s production attributed to their subscription.
Whichever route you choose, you will not actually own solar panels, you will own a subscription for the solar
energy system’s production. Xcel Energy customers can subscribe to as little as 200 watts of solar capacity or up to
120% of their average annual energy use.
Subscription Size and Price Questions
To participate, do I pay an upfront subscription fee, a monthly subscription fee, or a combination thereof? •
What is the subscription price? Is it an up-front price or a monthly charge? Is the subscription price all•
inclusive, or are there additional administrative or maintenance fees that may be charged?
Approximately how much energy will the system produce, and what portion of my energy use might I•
expect my subscription to offset annually? Based on your subscription rates, what would it cost me to cover
all of my electricity use?
What happens if my subscription’s energy production exceeds my energy bill during the year? What happens•
if it exceeds 120% of my energy use? Who benefits from my subscription’s excess production?
Additional Subscription Terms Questions
What is the term of my subscription (i.e., how long does it last; under what conditions is there an exit•
penalty)?
What happens if I move, want to cancel, or die? How will my shares be transferred? Is it my responsibility to•
sell it to someone else?
How much will I be paid for my subscription at the time of transfer or cancellation? •
What are the tax implications of my subscription? •
What happens to my subscription if the operator goes out of business or sells the garden?•
Describe the production and maintenance warranties included in the subscription agreement.•
What happens if the operator is unable to maintain and operate the garden? What are my remedies as a•
subscriber?
What happens if the garden is perpetually under-producing? What are my remedies as a subscriber?•
Q Looking for More Resources?
Use the CERTs Community Solar Gardens website with guides, updates, FAQs, and more:•
cleanenergyresourceteams.org/solargardens
Find subscription opportunities and compare companies on the Clean Energy Project Builder:•
cleanenergyprojectbuilder.org/solar-gardens
Get more questions for hiring a contractor by Minnesota Department of Commerce:•
cleanenergyprojectbuilder.org/hiring-company
Explore the Community Solar Garden Guide by the National Renewable Energy Lab (NREL):•
nrel.gov/docs/fy11osti/49930.pdf
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2040 Future Lan d Use
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High Den sity Reside ntial
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Copies of this publication may be obtained by calling 651-296-6753. This document can be made available in
alternative formats for people with disabilities by calling 651-296-6753 or the Minnesota State Relay Service at
711 or 1-800-627-3529 (TTY). Many House Research Department publications are also available on the
Internet at: www.house.mn/hrd/.
INFORMATION BRIEF
Research Department
Minnesota House of Representatives
600 State Office Building
St. Paul, MN 55155
Bob Eleff, Legislative Analyst
651-296-8961 Updated: October 2017
Xcel Energy’s Community Solar Garden Program
High capital costs dissuade many small energy customers from installing a solar
energy system. Alternatively, a developer can build a system and sell “shares” of
the electricity generated to neighborhood residents and businesses. The 2013
Minnesota Legislature required Xcel Energy to develop a pilot project based on
the latter model, called a community solar garden. The statute contained some
program guidelines, but directed the Minnesota Public Utilities Commission to
determine the details of the program’s operation, which occurred in a series of
orders issued over the past four years. This information brief describes the salient
features of Xcel’s community solar garden program by examining selected
provisions of those orders.
Introduction
In 2013 the Minnesota Legislature enacted a provision requiring the state’s largest electric utility,
Xcel Energy, to submit a plan to the Public Utilities Commission under which the utility would
provide customers the option to purchase electricity under a community solar garden program.
A community solar garden is a neighborhood-scale solar energy system from which nearby
residential and other small electricity customers can purchase a subscription that reserves to them
a fixed monthly share of the electricity generated by the project. This arrangement removes the
significant barrier of large initial capital costs that often inhibits such customers from installing a
solar energy system. To date, solar gardens have been most often constructed and owned by a
third-party developer, rather than an electric utility.
House Research Department Updated: October 2017
Xcel Energy’s Community Solar Garden Program Page 2
The legislation specified various parameters of Xcel’s community solar garden program,
including:
•a garden’s capacity—the maximum amount of electricity it can generate—cannot exceed
1 megawatt (MW);1
•a garden must have at least five subscribers, none of which may consume more than 40
percent of the garden’s output;
•an individual customer’s subscription can be no greater than 120 percent of the
customer’s average annual electricity usage; and
•the utility to which the garden is interconnected must purchase all the electricity
generated by the garden and must credit each customer based on the size of the
customer’s subscription.2
The legislation required Xcel to develop a program that met these and other requirements. The
commission was granted authority to modify Xcel’s plan, provided that any plan it approves
must be consistent with the public interest.
Several issues regarding operation of the solar garden program were not spelled out in the
statute, including the following questions:
•Should a limit on the overall size of the program be established?
•At what rate should a utility purchase electricity generated by a solar garden?
•How should co-located gardens—aggregations of 1 megawatt projects constructed by a
single developer and located adjacent to one another—be treated?
•What should be the purchase rate for electricity generated by a solar garden that is not
subscribed by a customer?
•How are credits on a customer’s bill resulting from monthly generation exceeding
monthly electricity use treated at year-end?
In a series of orders issued between April 2014 and October 2015—and after receiving
comments on Xcel’s proposed plan from governmental agencies, nonprofit organizations that
work on energy issues, solar providers and the state’s solar industry association, and almost 200
members of the public―the commission established the details of the program. The commission
has continued to modify the program more recently. The table below summarizes the regulations
on several key issues under which solar gardens currently operate. The remainder of this
information brief provides background information regarding those decisions.
1 The Solar Energy Industries Association estimates that a solar system with a capacity of 1 megawatt can meet the energy needs of approximately 125 homes in Minnesota, taking into account available sunshine, average
household electricity consumption, and average temperature and wind speed. “What’s In a Megawatt?”
www.seia.org/policy/solar-technology/photovoltaic-solar-electric/whats-megawatt.
2 Minn. Stat. § 216B.1641.
House Research Department Updated: October 2017
Xcel Energy’s Community Solar Garden Program Page 3
Xcel’s Community Solar Garden Program: Selected Provisions
Program Feature Commission Decision
Statewide Program Capacity Unlimited
Rate at which Solar Garden
Generated Electricity Is Purchased
by Xcel and Credited to Subscribers
Value-of-solar rate: $0.1033 in 2017; $0.1006 in 2018
Capacity Limits for Co-located Solar
Gardens
1 MW
Project Completion Deadline 24 months after Xcel determines that the application is
complete
End-of-Year Treatment of Bill
Credits
Bill credits are carried forward for at least 12 months; Xcel
purchases all outstanding credits as of last day of February
Payment to Solar Garden Operators
for Unsubscribed Energy
> 40 kW gardens: Xcel’s avoided cost rate,3 plus 1 cent per
kWh for RECs 4
< 40 kW gardens: Xcel’s average retail rate, plus 1 cent per
kWh for RECs
Contract Length 25 years
Provisions of Xcel’s Community Solar Garden Program
Statewide Program Capacity Is Unlimited
Although Xcel originally proposed limiting the size of the program to 20 MW during its initial
two years, the commission decided not to place a limit on the aggregate capacity of solar
gardens, in part to maximize the opportunity for developers to take advantage of the existing 30
percent federal tax credit for solar systems, which was scheduled to decline to 10 percent
beginning in 2017.5 Interest in participating in the program vastly exceeded even the most
optimistic expectations, as discussed below.
3 Under Minnesota’s net metering statute, Minnesota Statutes, section 216B.164, subdivision 3, electric utilities are required to purchase electricity produced by a generator with a capacity below 40kW at the utility’s “avoided
cost.” The statute utilizes the federal definition of that term: the incremental cost to the utility of generating or
purchasing the same amount of energy from a source other than the net metering generator. See Code of Federal
Regulations, title 18, section 292.101, paragraph (b), clause (6), and section 292.304.
4 A Renewable Energy Certificate (REC) is a tradable, contractual instrument representing the property rights
to the environmental, social, and other nonpower qualities of 1 MWh of renewable electric generation. RECs can be
sold separately from the underlying physical electricity generated from renewable sources. Purchased RECs can be
used to satisfy part or all of a utility’s obligation under Minnesota’s Renewable Energy Standard (Minn. Stat. §
216B.1691) to generate a specific proportion of its retail electricity sales from renewable energy at specific times,
for example, 25 percent by 2025. Under Xcel’s solar garden program, no REC values will be paid if the solar
garden receives financial incentives under Xcel’s Solar*Rewards or the state’s Made in Minnesota program, since
these programs require RECs to be transferred to Xcel without compensation.
5 Minnesota Public Utilities Commission, In the Matter of the Petition of Northern States Power Company, dba
Xcel Energy, for Approval of Its Proposed Community Solar Garden Program, Docket No. E-002/M-13-867, Order
House Research Department Updated: October 2017
Xcel Energy’s Community Solar Garden Program Page 4
In 2017, Xcel Began to Credit Electricity Generated by Solar Gardens at Its
Value-of-Solar Rate
The statute contained three directives regarding the price at which Xcel is to purchase energy
generated by a solar garden and issue credit back to solar garden subscribers. This price was set
at the utility’s value-of-solar rate. 6 Until that rate, calculated according to a methodology
developed by the Department of Commerce, was approved by the commission, the applicable
retail rate was to be used. The statute also requires that any plan approved by the commission
must “reasonably allow for the . . . financing” of community solar gardens.
In its April 2014 order, the commission defined the applicable retail rate to include the energy
charge, demand charge, customer charge, and applicable riders for the appropriate class,
approximately $0.12 per kWh. That rate was deemed “too low to reasonably allow for the
creation and financing of community solar gardens. Rather, developers’ uncontroverted
statements indicate that a rate of approximately $0.15 per kWh is the conservative minimum
needed to secure financing and make solar gardens attractive to subscribers.”7
Accordingly, the commission allowed solar garden developers to transfer the solar Renewable
Energy Certificate (RECs) associated with the garden’s generation to Xcel at a rate of $0.03 per
kWh for gardens with a capacity of 250 kW or less and $0.02 for larger gardens, resulting in a
2014 applicable retail rate plus REC payments for residential customers of $0.14033 and
$0.15033 per kWh, respectively.8
In its September 2016 order, the commission directed Xcel to pay solar garden operators the
value-of-solar rate for electricity the utility purchases from gardens whose applications are filed
in 2017 and thereafter. The value-of-solar rate in place at the time an application is completed
will remain in effect for the term of the solar garden’s operation, adjusted annually for inflation.
Updated value-of-solar calculations will be made each year for new project applications.9
Rejecting Xcel’s Solar-Garden Tariff Filing and Requiring the Company to File a Revised Solar-Garden Plan, April
7, 2014, p. 7. In December 2015, Congress extended the 30 percent credit through 2019, after which it declines to
26 percent in 2020, 22 percent in 2021, and 10 percent in 2022 and beyond, at which point it is available only for
commercial, not residential, applications.
6 A utility’s value-of-solar rate reflects the cost savings realized by a utility when a customer uses solar
electricity generated at or near the customer’s location rather than electricity generated by fossil fuels at a
centralized location and transported to the customer. Among the costs that a utility no longer must pay when
customers use small-scale solar energy are fuel costs, costs of pollution control equipment, costs to transmit (long-
distance) and distribute (short-distance) the electricity from the generation site to the customer. These savings
accrue to all utility customers.
7 April 7, 2014 Order, p.15.
8 Letter from Amy A. Lieberkowski, Manager, Rates and Regulatory Affairs, Xcel Energy, to Daniel P. Wolf,
Executive Secretary, Minnesota Public Utilities Commission, Docket No. E-002/M-13-867, Re: ARR calculation,
Community solar garden program, March 2, 2015, Attachment A.
9 Minnesota Public Utilities Commission, In the Matter of the Petition of Northern States Power Company, dba
Xcel Energy, for Approval of Its Proposed Community Solar Garden Program, Docket No. E-002/M-13-867, Order
Approving Value-of-Solar Rate for Xcel’s Solar Gardens Program, Clarifying Program Parameters, and Requiring
Further Filings, September 6, 2016, p. 14.
House Research Department Updated: October 2017
Xcel Energy’s Community Solar Garden Program Page 5
Xcel’s value-of-solar rate for calendar year 2017 was $0.1033 per kWh, and for calendar year
2018 is $0.1006.10
Capacity of Co-located Solar Gardens Will Remain Limited to 1 MW
Xcel’s original plan defined a community garden site as the parcel of real property on which the
solar system was constructed. However, at the suggestion of SunEdison, a global solar energy
company, the commission ordered Xcel to amend that definition to allow a garden site to instead
be based on a point of interconnection (“point of common coupling” is the term eventually
agreed upon) with a utility’s grid, allowing multiple facilities to be installed in close proximity to
one another. As the commission stated, “[T]he operator should be able to install solar panels on
multiple parcels, connect them to grid through a single interconnection point, and take advantage
of the resulting economies of scale.”11
The commission’s decisions regarding co-location and pricing contributed both to the amount
and the nature of the projects proposed by solar garden developers. Xcel began accepting
applications on December 12, 2014, and within a month received applications for 75 projects
totaling 431 MW. Fewer than one-third of these, representing only 4 percent of the total capacity
of all applications, proposed projects at the statutory limit of 1 MW or less. Sixteen proposed
projects, representing 58 percent of the total capacity of those applications, had capacities of 10
MW or greater; the largest project sited 40 MW of gardens adjacent to one another.12
In comments to the commission, Xcel cited four concerns with what the company called these
“utility-scale” projects. First, it stated that larger projects will require improvements to the
company’s distribution system in order to be interconnected to the grid, which could lengthen
interconnection schedules, especially if projects are so large as to require referral to the
interconnection process managed by the Midcontinent Independent System Operator (MISO),
the organization that dispatches electricity to Minnesota and 14 other states and a Canadian
province in the Midwest.13
10 Letter from Lisa R. Peterson, Manager, Regulatory Analysis, Xcel Energy, to Daniel P. Wolf, Executive
Secretary, Minnesota Public Utilities Commission, Docket No. E-002/M-13-867, Re: VOS Calculation and
Proposed 2018 VOS Vintage Year Bill Credit Tariff Sheets, Community Solar Garden Program, October 2, 2017, p.
2.In its September 17, 2014 Order, the commission found that Xcel’s value-of-solar rate at that time, $0.1075, was
“significantly below the level needed to support the financing and development of solar gardens as required by the
applicable statute.” Minnesota Public Utilities Commission, In the Matter of the Petition of Northern States Power
Company, dba Xcel Energy, for Approval of Its Proposed Community Solar Garden Program, Docket No. E-002/M-
13-867, Order Approving Solar-Garden Plan With Modifications, September 17, 2014, p. 9. The rapid decline in
the price of solar panels in the intervening two years now allows projects to be financed at an even lower value-of-
solar rate.
11 April 7, 2014 Order, p. 12.
12 Letter from Aakash Chandarana, Regional Vice President, Rates and Regulatory Affairs, Xcel Energy, to
Daniel P. Wolf, Executive Secretary, Minnesota Public Utilities Commission, Docket No. E-002/M-13-867, Re:
Supplemental Comments, January 13, 2015, Table 1, p. 4.
13 Letter from Aakash Chandarana, Regional Vice President, Rates and Regulatory Affairs, Xcel Energy, to
Daniel P. Wolf, Executive Secretary, Minnesota Public Utilities Commission, Docket No. E-002/M-13-867, Re:
Comments, February 10, 2015, p. 2.
House Research Department Updated: October 2017
Xcel Energy’s Community Solar Garden Program Page 6
Second, Xcel said that these larger projects are not consistent with the legislature’s intent in
creating the community solar garden program, which it characterized as expanding “access to the
benefits of solar to customers who are traditionally unsuited to rooftop solar . . . , [including]
customers who lack access to an appropriate roof location, are unable to afford the upfront costs
of an installation, or are discouraged by system maintenance or other considerations.”14
Third, the company expressed concern that large solar gardens would focus on selling to large
customers, creating “the potential for entire service classes [i.e., residential and small business]
to be largely excluded from participation….”15
Fourth, Xcel noted that the bill credit rate under the community solar garden program was
significantly higher than the price paid at the time by Xcel for solar electricity produced by
utility-scale projects acquired under a power purchase agreement resulting from the company’s
most recent resource bidding process ($0.0732 per kWh).16
As these issues were being raised in the first half of 2015, community solar garden applications
continued to accumulate, rising to a total capacity of more than 500 MW by April 2, 646 MW by
May 18, and 912 MW by June 23.17 On June 22, 2015, Xcel reached agreement with several
stakeholders on the co-location issue.
The agreement, approved by the commission with some modifications, contained the following
provisions:18
•Projects exceeding 5 MW for which applications had been received by Xcel as of the date
of the agreement would be scaled back to 5 MW.
•Applications received after the date of the agreement but before September 25, 2015,
would be limited to 5 MW.
•Applications received between September 25, 2015, and September 15, 2016, would be
limited to 1 MW.
•The commission will determine whether and what co-location limits will apply to solar
garden applications submitted after September 15, 2016.
14 Ibid., p. 4.
15 Ibid. The Office of the Attorney General noted that such a strategy greatly reduces the marketing costs of
solar garden developers, who would avoid dealing with a large number of small customers. In the Matter of the
Petition of Northern States Power Company for Approval of its Proposed Community Solar Gardens Program,
Minnesota Public Utilities Commission Docket No. E002/M-867, Comments of the Office of the Attorney General –
Residential Utilities and Antitrust Division, March 4, 2015, pp. 3-4. The same principle would hold true for a
developer’s administrative costs.
16 Letter from Aakash Chandarana, Regional Vice President, Rates and Regulatory Affairs, Xcel Energy, to
Daniel P. Wolf, Executive Secretary, Minnesota Public Utilities Commission, Docket No. E-002/M-13-867, Re:
Reply Comments, March 4, 2015, p. 10.
17 Minnesota Public Utilities Commission, In the Matter of the Petition of Northern States Power Company,
dba Xcel Energy, for Approval of Its Proposed Solar Garden Program, Docket No. E-002/M-13-867, Order
Adopting Partial Settlement as Modified, August 6, 2015, pp. 3, 5.
18 Ibid., p. 5.
House Research Department Updated: October 2017
Xcel Energy’s Community Solar Garden Program Page 7
•The commissioner of commerce is authorized to settle disputes regarding the aggregate
size of co-located solar gardens.
•Xcel is not required to upgrade its distribution system to accommodate the
interconnection of co-located solar gardens.19
In its September 2016 order, the commission reaffirmed the 1 MW co-location cap. “Allowing
co-location beyond 1 MW,” it stated, “would render the statutory limit superfluous, undermine
the legislative intent to foster small, widely distributed solar gardens, and create a risk of
significant rate increases to nonparticipating ratepayers.”20
Project Completion Deadline Is Set at 24 Months
To ensure that unworkable projects do not tie up valuable solar garden sites or absorb undue
amounts of program resources, solar developers have a deadline by which a project must be
financed and constructed. Xcel’s plan set a deadline of 18 months after an application was
determined to be complete; the commission extended it to 24 months.21
End-of-Year Bill Credits Are Purchased by Xcel
Solar garden subscribers are compensated via monthly credits on their bills for all solar energy
generated, based on their “share” of the total project. Since the size of a subscription can be as
large as 120 percent of a customer’s average electricity consumption (calculated on the most
recent two years’ usage), credits may exceed a customer’s total bill in a given month, in which
case the remaining credits roll over to the next month.
Xcel proposed that any credits remaining at the end of February be forfeited, and that subscribers
begin March with a zero balance. However, the commission determined that such a provision
would violate the statute’s requirement that Xcel purchase all energy generated by the solar
garden and that the possibility of forfeiting credits might discourage conservation efforts. It
required Xcel to carry all bill credits forward for at least a 12-month period, to purchase all
outstanding credits remaining in the billing cycle that includes the last day of February, and to
restart the bill-credit system with a zero balance in the following billing period.22
Unsubscribed Energy Is Purchased by Xcel at Different Rates Depending on
Project Size
While the statute requires Xcel to purchase all energy generated by a solar garden, it is silent as
to the rate of payment for energy that is not subscribed by customers. Xcel proposed that it
receive this unsubscribed energy at no charge, as an incentive to solar garden managers to make
19 Ibid., pp. 12-13.
20 September 6, 2016 Order, p. 21.
21 September 17, 2014 Order, pp. 12-13.
22 April 7, 2014 Order, p. 16.
House Research Department Updated: October 2017
Xcel Energy’s Community Solar Garden Program Page 8
efforts to fully subscribe their gardens, and pass on the cost savings to all ratepayers via a
reduction in the fuel clause rider.
The commission found that not requiring Xcel to pay for unsubscribed energy would increase
investor uncertainty, making solar gardens more difficult to finance. It determined that for solar
gardens above 40 kW capacity, Xcel is required to pay for unsubscribed energy at the company’s
avoided cost rate, and at the company’s average retail energy rate for smaller solar gardens.23
The commission also ordered Xcel to purchase solar garden RECs associated with unsubscribed
energy at $0.01 per kWh.24
These provisions also apply to solar gardens receiving the value-of-solar rate for subscribed
energy.
Contract Length Is Set at 25 Years
Xcel proposed a 20-year term for solar garden contracts. The commission, concurring with
several commentators, ordered that a 25-year term be used in order to be consistent with the
Department of Commerce’s value-of-solar methodology, which assumes that a solar photovoltaic
system will last for 25 years.25
For more information about energy, visit the utility regulation area of our website,
www.house.mn/hrd/.
23 April 7, 2014 Order, p. 17. See fn. 3 for a definition of “avoided cost.”
24 August 6, 2015 Order, p. 25.
25 April 7, 2014 Order, p. 22; Minnesota Department of Commerce, Division of Energy Resources, Minnesota
Value of Solar: Methodology, April 1, 2014, p. 6, https://mn.gov/commerce/energy/images/MN-VOS-Methodology-
FINAL.pdf.
WS – Item #2
WORK SESSION STAFF REPORT
Work Session Item No. 2
Date: July 2 , 2018
To: City Council
From: Michael Grochala and Jim Stremel of WSB & Associates
Re: 2018 Street Reconstruction Project Update (West Shadow Lake & LaMotte
Areas)
Background
Final design is nearing completion for the West Shadow Lake Drive project. A 90% design
review neighborhood meeting was held on Wednesday June 27th. The remaining work for the
project team includes finalizing remaining plan design items, specifications, and contract
documents in preparation for bidding.
Staff is anticipating City Council consideration to approve plans and specifications and
authorizing advertisement for bids at the July 23, 2018 regular meeting. The project is proposed
as follows:
Bid Opening August 21st
Call for Hearing on Proposed Assessment August 27
Hearing on Proposed Assessment September 17
Award Contract October 22, 2018
The LaMotte area project will also be ready for re-bidding on July 23, 2018. Modifications have
been made to the soils specifications and site access. There is additional flexibility in the
schedule to help improve bids. We are proposing to bid both projects during the same time
period.
Lot Subdivision
With the extension of public utilities, larger lots along West Shadow Lake Drive and Shadow
Court, may have the ability to subdivide subject to City Zoning and Shoreland Ordinance
regulations. Several residents have inquired about the process for doing this.
The first step in this process would be to rezone the area from R, Rural to an applicable low
density sewered residential district, either R-1, Single Family Residential District or R-1X,
Single Family Executive Residential District. The council will need to decide on the appropriate
district. Staff has prepared an overview of the different lots requirements based on districts.
Because the area is within the Shoreland District, all lake side lots, regardless of zoning selected,
will need to meet a minimum area of 20,000 square feet of upland. The applicable zoning
district will dictate minimum lot widths. Properties that could subdivide under R-1,
requirements may not meet R-1X requirements. Additionally, there may be lots that can meet
width requirements of either district but fall slightly under Shoreland minimum lot area
requirements.
Another consideration for City Council is the placement of additional utility services in
anticipation of subdivision. Staff wants to avoid open cutting of the new road for new lot
service connections if possible. It is also less costly to install the services at the time of
construction.
City staff has been reviewing the larger lots for potential subdivision. Installing services to the
potential lots during construction will reduce costs to the residents and impacts/road patches on
the new roadway if needed at a later date. The costs of additional services ($3,000 to $5,000)
would be collected at time of connection.
As a reminder, the project website can be found linked to the City’s website or at:
https://www.lamottewestshadow.com/
Requested Council Direction
Staff is requesting direction on the follow:
1. What is the appropriate zoning?
2. How does the Council want to handle proposed subdivisions that are slightly under lot
requirements?
3. Does the Council wish to include additional services in the project?
4. Provide staff direction regarding the rezoning, subdivision, and utility service installation.
Attachments
1. Subdivision Summary
600 Town Center Parkway, Lino Lakes, MN 55014-1182
City Hall: 651-982-2400 ∙ www.ci.lino-lakes.mn.us
June 22, 2018
Dear Residents and Property Owners,
The following information summarizes Zoning, Shoreland District and Subdivision requirements
regarding the potential subdivision of parcels along West Shadow Lake Drive in conjunction
with the proposed street reconstruction and municipal water and sanitary sewer construction.
Zoning (Section 1007.090 R-1 and Section 1007.091 R-1X)
• The parcels along West Shadow Lake Drive are currently zoned R, Rural.
o All parcels will be rezoned to either R-1, Single Family Residential or R-1X,
Single Family Executive
o The City will initiate the rezoning and determine what zoning district for the
entire area is most appropriate.
• For those non-riparian lots on the west side of West Shadow Lake Drive that do not
directly abut Reshanau Lake:
R-1 Requirements R-1X Requirements
Min. Lot Size1 10,800 sf 12,825 sf
Min. Lot Width Interior Lot =80 ft
Corner Lot = 100 ft
Interior Lot = 90 ft
Corner Lot = 115 ft
Min. Lot Depth 135 ft 135 ft
Building Setback (feet)
-From Local Streets 30 ft 30 ft
-Rear Yard
--Principal 30 ft 30 ft
-Accessory 5 ft 5 ft
-Side Yard
--Principal 10 ft 10 ft
--Accessory 5 ft 5 ft
Impervious Surface2 30% 30%
600 Town Center Parkway, Lino Lakes, MN 55014-1182
City Hall: 651-982-2400 ∙ www.ci.lino-lakes.mn.us
1Net area required as defined as contiguous buildable land
2Per Shoreland Management Overlay District
Shoreland Management Overlay District (Chapter 1102)
• Reshanau Lake is classified as a Recreational Development Lake per the MNDNR.
• The Ordinary High Water Level (OHWL) is 883.5.
• For those riparian lots on the east side of West Shadow Lake Road that directly abut
Reshanau Lake:
R-1 Requirements R-1X Requirements
Min. Lot Size1 20,000 sf 20,000 sf
Min. Lot Width2 80 ft 90 ft
Min. Lot Depth 135 ft 135 ft
Building Setback (feet)
-From Local Streets 30 ft 30 ft
-From OHWL3
--Principal 75 ft 75 ft
-Accessory 75 ft 75 ft
-Side Yard
--Principal 10 ft 10 ft
--Accessory 5 ft 5 ft
Impervious Surface4 30% 30%
1Only land above the OHWL can be used to meet the lot area standards
2Lot width standards must be met at both the OHWL and the building setback line
3One water-oriented accessory structure may be setback 10 feet from the OHWL
4Per Shoreland Management Overlay District
Subdivision Ordinance (Chapter 1001)
• Property owners wishing to subdivide their parcel after municipal water and sanitary
sewer has been installed will be required to submit Land Use Applications for
Preliminary Plat and Final Plat in compliance with the Subdivision Ordinance.
• Property owners will hire a surveyor and/or engineer to prepare the required documents
for subdivision.
• The preliminary plat and final plat are reviewed by the Planning & Zoning Board and
City Council.
• The entire process typically takes 120 to 180 days.
Staff would be happy to meet with property owners and their surveyor and/or engineer to discuss
the process. Please feel free to contact Katie Larsen, City Planner, at (651) 982-2426 to discuss
or schedule a meeting.
WS – Item 3
WORK SESSION STAFF REPORT
Work Session Item No. 3
Date: July 2, 2018
To: City Council
From: Michael Grochala, Community Development Director
Re: 80th Street ROW – Rice Creek Snowmobile Trail Association
Background
The Rice Creek Snowmobile Trail Association is a volunteer snowmobile trail club.
They have created and maintain approximately 73 miles of the Minnesota Department of
Natural Resources snowmobile trail system in the northeast Twin Cities. A portion of this
trail system runs through Lino Lakes and the Rice Creek Chain of Lake Park.
The trail system runs across both publically owned land as well as private property with
permission from land owners. Staff was recently contacted by representatives of the trail
association regarding the use of unimproved 80th Street right-of-way between 20th
Avenue and the regional park. In prior years the Association maintained a trail corridor
from 20th Avenue to the regional park across privately held land. Due to a change in
ownership they were unable to obtain permission for continued use of the existing
corridor.
The Association has approached the City about relocating the trail to the existing
unimproved 80th Street right-of-way that extends westerly from 20th Avenue to the
regional park land. Use of the right-of-way for the snowmobile trail is allowable subject
to city approval. However, .a portion of the right-of-way has been encroached upon by
private improvements, including fencing, from a neighboring property. Prior to
requesting the removal of the fencing, staff is requesting City Council concurrence with
the use of right-of-way for the trail purposes.
Requested Council Direction
Staff is requesting City Council consideration regarding the use of 80th Street for the
snowmobile route and direction to work with abutting property owner to relocate fencing
improvements.
Attachments
1. 80th Street Right-of-Way
80th Street ROW
Proposed Snowmobile Trail Route
Legend
Sections
June 26, 2018
Map Powered by DataLink from WSB & Associates
1 in = 376 ft
±
WS – Item 5
WORK SESSION STAFF REPORT
Work Session Item No. 5
Date: July 2, 2018
To: City Council
From: Rick DeGardner, Public Services Director
Re: Phase I Recreation Complex Concept Plan
Background
In 1999, The City acquired 67 acres of property at the southeast corner of Birch Street
and Centerville Road. Approximately 18 acres are located north of the Montain property.
In 2016, Lino Lakes Fire Station #2 was built on approximately five acres.
The City Council has indicated an interest in reviewing a concept plan for the property
between the fire station and Montain property (Phase I). Attached are two concept plans
providing a parking lot, varying levels of multi-use turf areas (i.e. soccer, football,
lacrosse, etc.) tennis, and pickle ball courts. Concept 2 also includes placement of a
pavilion. A potential future water tower is also depicted on both concept plans. Estimated
project costs are also provided.
Attachments
Two concept plans prepared by WSB and Associates
Requested Council Direction
For informational purposes only
S89°24'11"E 700.16S00°38'19"E 569.13CENTERVILLE ROAD (C.S.A.H. NO. 21)RIM: 910.07INVINVINVINVINVINV
RIM: 910.05INVINVINVINVINVINV
RIM: 911.37INVINVINVINVINVINV
RIM: 911.47INVINVINVINVINVINV
RIM: 910.81INVINVINVINVINVINV
RIM: 910.85INVINVINVINVINVINV
POND BB3
BTM-908.00
HWL-909.91
PRIVACY FENCE PRIVACY FENCE
TENNIS TENNIS
PICKLEBALL
PICKLEBALL
PARKING
SPORT FIELD
STORM POND
WATER
TOWER
STORM POND
Cut/Fill Summary
Name
Grd 4-4-18
Totals
Cut Factor
1.00
Fill Factor
1.00
2d Area
173849.83 Sq. Ft.
173849.83 Sq. Ft.
Cut
7209.22 Cu. Yd.
7209.22 Cu. Yd.
Fill
5572.60 Cu. Yd.
5572.60 Cu. Yd.
Net
1636.62 Cu. Yd.<Cut>
1636.62 Cu. Yd.<Cut>
SCALE IN FEET
0
H:
30 60
WSB
WSB PROJECT NO.:
SCALE:
PLAN BY:
DESIGN BY:
CHECK BY:
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.
LIC. NO:DATE:
NO.DATE BY CHK REVISIONK:\011344-000\Cad\Exhibits\LLPark Concept 4.dwg 6/29/2018 11:39:01 AMN
####
####
####
####
####
CITY OF LINO LAKES
RECREATION COMPLEX - PHASE 1
CONCEPT 1
NOTE: FOR PURPOSES OF CONCEPT PARK PLANNING AND COST ESTIMATING, THE
STORMWATER MANAGEMENT AND DESIGN SHOWN AS CONCEPTUAL. DETAILED
STORMWATER MODELING WILL BE REQUIRED UPON FINAL DESIGN.
NOTE: FOR PURPOSES OF CONCEPT PARK COST ESTIMATING
TREE PLANTING AND LANDSCAPE DESIGN ARE NOT INCLUDED
IN TOTAL COST.
TOTAL PARK AREA - 4.2 ACRES
S89°24'11"E 700.16S00°38'19"E 569.13CENTERVILLE ROAD (C.S.A.H. NO. 21)RIM: 910.07INVINVINVINVINVINV
RIM: 910.05INVINVINVINVINVINV
RIM: 911.37INVINVINVINVINVINV
RIM: 911.47INVINVINVINVINVINV
RIM: 910.81INVINVINVINVINVINV
RIM: 910.85INVINVINVINVINVINV
POND BB3
BTM-908.00
HWL-909.91
STORM POND
WATER
TOWER
STORM POND
TENNIS
PICKLEBALL
PARKING SPORT FIELD
PRIVACY FENCE
PAVILION
PRIVACY FENCE
Cut/Fill Summary
Name
Grd 4-4-18
Totals
Cut Factor
1.00
Fill Factor
1.00
2d Area
173849.83 Sq. Ft.
173849.83 Sq. Ft.
Cut
7209.22 Cu. Yd.
7209.22 Cu. Yd.
Fill
5572.60 Cu. Yd.
5572.60 Cu. Yd.
Net
1636.62 Cu. Yd.<Cut>
1636.62 Cu. Yd.<Cut>
SCALE IN FEET
0
H:
30 60
WSB
WSB PROJECT NO.:
SCALE:
PLAN BY:
DESIGN BY:
CHECK BY:
NO.DATE BY CHK REVISIONK:\011344-000\Cad\Exhibits\LLPark Concept 5.dwg 6/29/2018 11:40:11 AMN
####
####
####
####
####
CITY OF LINO LAKES
RECREATION COMPLEX - PHASE 1
CONCEPT 2
NOTE: FOR PURPOSES OF CONCEPT PARK PLANNING AND COST ESTIMATING, THE
STORMWATER MANAGEMENT AND DESIGN SHOWN AS CONCEPTUAL. DETAILED
STORMWATER MODELING WILL BE REQUIRED UPON FINAL DESIGN.
NOTE: FOR PURPOSES OF CONCEPT PARK COST ESTIMATING
TREE PLANTING, LANDSCAPE DESIGN AND PAVILION ARE NOT
INCLUDED IN TOTAL COST.
TOTAL PARK AREA - 4.2 ACRES
WS – Item 6
WORK SESSION STAFF REPORT
Work Session Item No. 6
Date: July 2, 2018
To: City Council
From: Michael Grochala, Community Development Director
Re: Anoka County Regional Economic Development Initiative
Background
In December of 2017 Anoka County, in partnership with Connexus Energy and the North
Metro Chamber of Commerce, completed the “Economic Development Business
Recruitment Roadmap”. The study was prepared by Ady Advantage, a national
economic development and site selection consultant. The study included a broad range of
research and survey information across Anoka County leading to compilation of a county
wide action plan.
The overall purpose of the project is to provide a cohesive, unified economic
development strategy within Anoka County. As a result of the project, three areas of
focus and goals were identified to be achieved:
• Marketing and Differentiation: Address and work to change the perception of
Anoka County, among stakeholders, partners, developers, and potential talent,
etc.
• Readiness: Ensure Anoka County is ready for development from both a talent and
product (sites and buildings) perspective, etc.
• Alignment/Regionalism: Clearly define roles within the county, as well as with
regional partners, as it relates to marketing, incentives, business retention, and
expansion, etc.
Based on the recommendations of the plan a steering committee, executive team and
subgroups, (comprised of representatives from cities, Anoka County, and Metro North
Chamber and Connexus) have been created to implement the plan. Staff has been asked
to serve on the executive committee and will have a direct role in the decision making
process.
Ady Advantage is assisting with the Marketing and Differentiation component of the
project. The objectives of this phase are to:
• Create a county-wide economic development brand/logo
• Create regional and target industries profiles. The Profiles are marketing
material similar to a brochure. They would be used as distribution material
for prospects and leads. These brochures contain information specific to
each audience and photos as appropriate, along with contact information
and guidance on additional resources to research the region. The regional
profile would be general to the region; however, the target industry
profiles would be tailored to market to potential leads and site selectors
servicing those industries.
• Create/develop an economic development website. The web site will
integrate a sites & buildings database.
The City will have access to and use of material created from these marketing efforts.
Funding for the project is being shared by cities and partner organizations. Lino Lakes
share is approximately $1,200. Staff’s perspective is that the program is an opportunity
to draw upon a larger resource for economic development assistance. Any marketing
efforts that increase visibility of Anoka County to prospective businesses aids our local
efforts and increases our opportunities.
Lino Lakes will also benefit from the County’s recent hiring of an Economic
Development Specialist. The new position, a recommendation of the plan, will be tasked
with working with the collaborative and individual cities to coordinate economic
development efforts.
The EDAC reviewed the initiative at it’s June regular meeting and was supportive of the
project. The City’s cost share is proposed to be funded from the Economic Development
professional services budget.
Requested Council Direction
Staff is seeking City Council concurrence to participate in the collaborative.
Attachments
1. Executive Summary, Economic Development Business Recruitment Roadmap
Voltedge, Inc. dba Ady Advantage | 301 S. Blount St, Suite 103 | Madison, WI 53703 | 608.663.9218 | AdyAdvantage.com 1
Anoka County, MN
Economic Development Business Recruitment Roadmap
December 18, 2017
Provided to:
Bruce Sayler
Principal – Community and Economic Development
Connexus Energy
1461 Ramsey Blvd. NW
Ramsey, MN 55303
763.323.2685 o/ 763.350.5119 m
Bruce.sayler@connexusenergy.com
Provided by:
Janet Ady
President and CEO
Ady Advantage
301 S. Blount Street, Suite 103
Madison, WI 53703
608.663.9218 o/608.345.2510 m
jady@adyadvantage.com
STRATEGY MATTERS
Voltedge, Inc. dba Ady Advantage | 301 S. Blount St, Suite 103 | Madison, WI 53703 | 608.663.9218 | AdyAdvantage.com 2
Table of Contents
Section 1: Executive Summary 3
Section 2: Introduction 13
Section 3: The Anoka County Regional Economy 16
Section 4: Site Visit Analysis 31
Section 5: Stakeholder & Employer Input 43
Section 6: Target Industry Analysis 55
Section 7: Regional and Target Industry Positioning 172
Section 8: Goals for the Future 185
Section 9: Best Practices 187
Section 10: Economic Development Business Recruitment Roadmap 194
Voltedge, Inc. dba Ady Advantage | 301 S. Blount St, Suite 103 | Madison, WI 53703 | 608.663.9218 | AdyAdvantage.com 3
SECTION 1: EXECUTIVE SUMMARY
Voltedge, Inc. dba Ady Advantage | 301 S. Blount St, Suite 103 | Madison, WI 53703 | 608.663.9218 | AdyAdvantage.com 4
Executive Summary
Ady Advantage was retained by Connexus Energy to create an economic development business recruitment roadmap. The following graphic
shows the various elements to this project.
This process consisted of on-site qualitative research with stakeholders and employers, desk research on the Anoka County economy and target
industries, and the creation of positioning points for the region and for each target industry. The following pages serve as a summary of these
findings.
PHASE 1: DISCOVER
PHASE 2: DISTILL
PHASE 3: DO
•Project Initiation Teleconference
•Desk Research/Economic Base Analysis
•Site Visit and Stakeholder Interviews
•Target Industry Analysis
•Regional Positioning Statement
•Target Industry Positioning
•Initial Report
•Vision and Goals Session
•Gap Analysis
•Best Practices Review
•Economic Development Strategy with
Implementation Plan
•Final Presentation
Voltedge, Inc. dba Ady Advantage | 301 S. Blount St, Suite 103 | Madison, WI 53703 | 608.663.9218 | AdyAdvantage.com 5
Executive Summary
STAKEHOLDER AND EMPLOYER INPUT
During the on-site visit Ady Advantage conducted interviews with nearly 20 stakeholders to gain input. The stakeholders included a mix of local
businesses, local economic developers, educational institutions and workforce representatives, real estate representatives, etc. These
individuals provided input on strengths, weaknesses, opportunities and threats in the region. The following key themes emerged:
•Positive perceptions of the county revolve around doing business in the county and quality of life. Proximity to Minneapolis/St. Paul is a
benefit to businesses as well as residents from a quality of life perspective. Other business advantages include supply chain opportunities,
work ethic of employees and business engagement in the community. From a quality of life perspective, perceptions are that Anoka County
has a variety of housing options available and good public schools. Many of the communities are also perceived to be safe with low crime and
low poverty.
•The biggest negative perception of the county is that anything north of Minneapolis/St. Paul is extremely remote and rural, and that there is
only blue collar jobs in this area.
•Talent is currently one of the biggest challenges for local employers, both attracting and retaining talent. The local educational institutions in
the region have done a good job of responding to employers’ needs, however, employers are competing for labor with Minneapolis/St. Paul.
•The biggest opportunities that stakeholders see for the county include changing the negative perceptions of the county, continuing to
improve transportation infrastructure and developing clarity and cohesiveness between the cities and the county.
Voltedge, Inc. dba Ady Advantage | 301 S. Blount St, Suite 103 | Madison, WI 53703 | 608.663.9218 | AdyAdvantage.com 6
Executive Summary
ANOKA COUNTY’S REGIONAL POSITIONING
The following asset maps depict key business costs and conditions and their importance in a business location decision, as well as how well
Anoka County does on each factor. Essentially the assets in the upper right hand quadrant become the county’s positioning and the assets in the
upper left hand quadrant become the gaps that need to be improved, if in Anoka County’s control.
IMPORTANCE TO BUSINESS DECISION ANOKA COUNTY REGION COMPETITIVENESS
High-skilled
Labor Cost
Manufacturing
Tax Burden
Sales Tax
Electric Cost
Cost of
Living
Incentives
Payroll Costs
Property Tax
Gas Cost
Low-skilled
Labor Cost
GENERAL BUSINESS COSTS ASSET MAP
Skilled/Advanced
Labor Cost
Availability of
Low-Skilled Labor
Natural Disaster
Risk
Tech and
Community
Colleges Higher Ed. Student
Pipeline
Population
Growth
Hwy Access
Air Access
Diversity of
Higher Ed.
4 Year Ed.
Attainment
Availability of
Professional/Technical
Labor
Availability of
Semi-Skilled Labor
Port Access
Reg. Enviro
Access to Pop.
Rail Access
GENERAL CONDITIONS ASSET MAP IMPORTANCE TO BUSINESS DECISION ANOKA COUNTY REGION COMPETITIVENESS
2 Year Ed.
Attainment HS Attainment
Workforce Productivity &
Work Ethic
Sites Buildings
Voltedge, Inc. dba Ady Advantage | 301 S. Blount St, Suite 103 | Madison, WI 53703 | 608.663.9218 | AdyAdvantage.com 7
Executive Summary
TARGET INDUSTRY ANALYSIS
In order to determine which specific industries drive Anoka County’s economy, a 6-digit NAICS code analysis was conducted on a number of
industry groups. After analyzing and screening these industries, we came up with the following recommended target industries for Anoka
County:
Target Industry Subsectors of Focus Comments
Light Manufacturing
Medical Device Manufacturing
and Related Industries
•The medical device supply chain is well developed in the region.
•Technologic advances in medical devices are creating opportunities for metal and
advanced materials fabrication and precision instrument manufacturing.
Plastic Product Manufacturing
•Plastics manufacturing technologies are well established in the region
•Producers are aligned with both advanced devices (e.g. medical devices) and
commodity parts (e.g. food machinery, farm equipment, transportation equipment)
Instrument Manufacturing
•Instrumentation and measuring devices are critical to manufacturing precision
products including medical devices.
•There is growing demand for precision instruments.
Metal Working, Machining and
Specialized Materials
•The region has a strong tradition for precision machining and the fabrication of metal
and other specialized materials.
•Advanced materials, such as carbon fiber, are growing in importance within the global
economy.
Chemical Manufacturing
•Minneapolis/St. Paul region has a long history around innovation and manufacturing
of adhesives and other industrial supply chain specialty chemicals.
•Advances in medical devices, pharmaceuticals, coating technologies are present in the
region and align with Anoka County skill sets.
Heavy Manufacturing Machinery Manufacturing •This includes machinery related to existing industries in the region including food
processing and material handling equipment, and farm machinery.
Distribution and Trucking Specialized Distribution and
Warehousing
•The big box-type fulfillment centers are more likely to locate south of the city for better
access to market; however, Anoka County has seen some small specialty distribution
going on in the region and smaller trucking operations.
Data Centers Smaller data centers
•Data centers are big users of electricity and Anoka County has the infrastructure to
support this. However, this industry also requires fiber access, which is only available
in some parts of the county. Recruitment should be limited to only those areas.
Back Office Medical services
Call centers
•Some available buildings for this; however, there will need to be a better inventory of
these buildings in the future in order for Anoka County to realistically recruit this
industry.
Voltedge, Inc. dba Ady Advantage | 301 S. Blount St, Suite 103 | Madison, WI 53703 | 608.663.9218 | AdyAdvantage.com 8
Executive Summary
GOALS AND VISIONING
The goals for the future were determined and thoroughly discussed during a Goals and Visioning work session on Wednesday, October 11. To
ensure that stakeholder input was significantly considered in this process, Connexus Energy invited a number of key stakeholders.
Address and work to change the
perception of Anoka County,
among stakeholders, partners,
developers, potential talent, etc.
Clearly define roles within
the county, as well as with
regional partners, as it
relates to marketing,
incentives, business
retention and expansion,
etc.
Ensure Anoka County is
ready for development from
both a talent and product
(sites and buildings)
perspective.
Voltedge, Inc. dba Ady Advantage | 301 S. Blount St, Suite 103 | Madison, WI 53703 | 608.663.9218 | AdyAdvantage.com 9
Executive Summary
ECONOMIC DEVELOPMENT STRATEGIES
The following strategies were developed to help Anoka County meet its three goals, as outlined on the previous page. The strategies fall into the
categories of alignment/regionalism, readiness and marketing. Tactics within each strategy can be found in the final section of this report –
Economic Development Business Recruitment Roadmap.
XXX: Primary effect on goal XX: Direct effect on goal X: Indirect effect on goal
Alignment/Regionalism
Goal #1: Address and work to
change the perception of Anoka
County, among stakeholders,
partners, developers, potential
talent, etc.
Goal #2: Ensure Anoka
County is ready for
development from both a
talent and product (sites and
buildings) perspective.
Goal #3: Clearly define roles
within the county, as well as
with regional partners, as it
relates to marketing,
incentives, business retention
and expansion, etc.
Articulate roles and responsibilities of Anoka
County, Connexus Energy, and each
local/regional economic development partner to
help avoid duplication of efforts, identify gaps,
and reach consensus on project coordination
protocols.
X XXX
Communicate regularly with economic
development partners and other stakeholders
about economic development initiatives,
business news, county-wide successes, and
quality of life improvements.
X XX
Voltedge, Inc. dba Ady Advantage | 301 S. Blount St, Suite 103 | Madison, WI 53703 | 608.663.9218 | AdyAdvantage.com 10
Executive Summary
ECONOMIC DEVELOPMENT STRATEGIES (CONT’D)
XXX: Primary effect on goal XX: Direct effect on goal X: Indirect effect on goal
Readiness
Goal #1: Address and work to
change the perception of Anoka
County, among stakeholders,
partners, developers, potential
talent, etc.
Goal #2: Ensure Anoka
County is ready for
development from both a
talent and product (sites and
buildings) perspective.
Goal #3: Clearly define roles
within the county, as well as
with regional partners, as it
relates to marketing,
incentives, business retention
and expansion, etc.
Product Readiness
Ensure sites and buildings are listed in LOIS or
another sites and buildings database and
information is accurate and up-to-date.
X XXX X
Determine the next sites/buildings for short-
term, medium-term and long-term development
that meet the needs of the target industries (as
identified in this report)
XXX X
Develop and maintain relationships with local
developers and real estate brokers. XX XX
Re-evaluate the city and county incentive
policies to ensure they align with future goals. XXX X
Talent Readiness
Continue to explore what Greater MSP is doing
with regard to talent, and participate selectively. XXX X
Identify any gaps related to the Anoka County
talent strategies and develop approaches to
address.
X XXX
Voltedge, Inc. dba Ady Advantage | 301 S. Blount St, Suite 103 | Madison, WI 53703 | 608.663.9218 | AdyAdvantage.com 11
Executive Summary
ECONOMIC DEVELOPMENT STRATEGIES (CONT’D)
XXX: Primary effect on goal XX: Direct effect on goal X: Indirect effect on goal
Marketing/Differentiation
Goal #1: Address and work to
change the perception of Anoka
County, among stakeholders,
partners, developers, potential
talent, etc.
Goal #2: Ensure Anoka
County is ready for
development from both a
talent and product (sites and
buildings) perspective.
Goal #3: Clearly define roles
within the county, as well as
with regional partners, as it
relates to marketing,
incentives, business retention
and expansion, etc.
All Audiences
Using this economic development plan as a base
of information, outline the key assets of the
region from both a talent and business
retention/development perspective.
XXX X
Communicate a consistent county-wide
economic development brand. XXX XX
Internal Stakeholders
Market the key assets of Anoka County to
internal stakeholders to ensure that everyone is
communicating a consistent message about the
county and region.
XXX X
Partners
Market the key assets of Anoka County to
partners so that they are aware of the unique
assets of the county, as well as the types of
projects Anoka County is best suited for.
XXX
Voltedge, Inc. dba Ady Advantage | 301 S. Blount St, Suite 103 | Madison, WI 53703 | 608.663.9218 | AdyAdvantage.com 12
Executive Summary
ECONOMIC DEVELOPMENT STRATEGIES (CONT’D)
XXX: Primary effect on goal XX: Direct effect on goal X: Indirect effect on goal
Marketing/Differentiation
Goal #1: Address and work to
change the perception of Anoka
County, among stakeholders,
partners, developers, potential
talent, etc.
Goal #2: Ensure Anoka
County is ready for
development from both a
talent and product (sites and
buildings) perspective.
Goal #3: Clearly define roles within
the county, as well as with
regional partners, as it relates to
marketing, incentives, business
retention and expansion, etc.
Existing Businesses
Help existing businesses continue to grow in Anoka
County. XXX XX
Ensure existing businesses are aware of local,
regional and state programs/initiatives that would
benefit their business.
XXX X
Developers/Real Estate Brokers
Market the key assets of Anoka County to
local/regional developers and real estate brokers
so they are aware of the S&B product in the county,
as well as the target industries that are best suited
for Anoka County.
XXX
Site Selectors
Market the key assets of Anoka County to site
selectors who work in the target industries
identified in this report.
XXX
Target Industries
Communicate the benefits of doing business in
Anoka County to companies within the specific
target industries identified in this report.
XXX
Identify companies in the recommended target
industries to attract to Anoka County XXX XX
Voltedge, Inc. dba Ady Advantage | 301 S. Blount St, Suite 103 | Madison, WI 53703 | 608.663.9218 | AdyAdvantage.com 41
Site Visit Analysis – Clearwater Creek Business Park – Lino Lakes
Weaknesses
•Possible presence of wetlands
could limit development
•No asking price provided
•Limited information on 72 acre
parcel
•Unattractive industrial storage
operations on 21st Street North
are incompatible with quality
development
Strengths
•Mix of sites apparently ready for
development
•Build-to-suit properties on 21st Street
N. are needed in the market
•New Main St/I-35E interchange and
improved 21st Street N.
WS – Item 7
WORK SESSION STAFF REPORT
Work Session Item No. 7
Date: July 2, 2018
To: City Council
From: Sarah Cotton, Finance Director
Re: 2019 City Budget
Background
The management team is currently in the process of preparing the 2019 budget. The
proposed budget calendar is as follows:
• Monday, July 23rd – Electronic and Hard Copy Proposed Budget delivered to City
Council
• Monday, July 30th – Special Budget Work Session
• Monday, September 24th – Last meeting to adopt Preliminary Budget and Levy
• Monday, December 10th – Adopt Final Budget and Levy
The City was notified last week that as of April 9, 2018, the City’s taxable market value
is estimated to increase 6.4%. This includes new construction for Pay 2019. Based on
this preliminary estimate, the City’s tax levy could increase by $574,419 without raising
the tax capacity rate of 42.756%. However, there are several other factors to consider,
including: (1) inflationary adjustments; (2) salary and benefit increases; (3) capital
equipment replacement; and (4) the use of fund reserves for certain expenditures in the
2018 budget.
Requested Council Direction
None
Attachments
None
Item #9
Monthly Progress Report
July 2, 2018
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 to
augment the process
White Bear Lake Restoration
Assn. v. Dept. of Natural
Resources (DNR)
3/23/18 – A letter was sent to the DNR
Commissioner objecting to the City’s
amended Water Appropriation Permit,
which imposed several new conditions
arising out of the Ramsey County Court
Order
Jeff A bipartisan bill addressing
the judge’s orders for WBL
has passed the Environment &
Natural Resources
Committees in the House and
Senate
Upgrade of HD Audio/Visual
Equipment in Council
Chambers and Control Room
4/23/18 – Another project manager was
assigned to complete punch list items
Jeff Project is complete.
Labor Negotiations Update 6/25/18 – AFSCME contract was
approved by Council
Local 49 – Not settled
LELS 299 (Police Officers) – Arbitration
scheduled for August 15
6/25/18 – LELS 260 (Sergeants) filed for
arbitration.
Jeff Sergeants LELS 299 – Final
positions due July 13. Rupp,
Anderson, Squires is handling
the case.
Employment Update
One vacant police officer position needs
to be filled
Jeff Background checks are being
done on three candidates
Website Redesign 6/4/18 – Council expressed support for
website redesign
Jeff Staff will be working with
graphic designer and content
specialist from GovOffice