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05-10-2021 Council Packet
CITY COUNCIL AGENDA Monday, May 10, 2021 *********** 6:30 p.m. (Scheduled to be broadcast on Channel 16) City Council: Mayor Rafferty, Councilmembers Cavegn, Lyden, Ruhland and Stoesz City Administrator: Sarah Cotton BOARD OF APPEAL AND EQUALIZATION, 6:00 P.M. Council Chambers COUNCIL WORK SESSION, 6:00 P.M. Council Chambers (not televised) 1. Review Regular Agenda CITY COUNCIL MEETING, 6:30 P.M. Call to Order and Roll Call - Councilmembers Stoesz, Lyden, Cavegn, Ruhland and Mayor Rafferty were present Pledge of Allegiance Open Mike / Public Comment (in person or received in writing prior to meeting) There were no comments. Setting the Agenda: Addition or Deletion of Agenda Items The agenda was approved as presented. 1. CONSENT AGENDA A) Consideration of Expenditures: i) May 10, 2021 (Check No. 114273 through 114358) in the Amount of $236,071.25 B) Consider Approval of April 26, 2021 Work Session Minutes C) Consider Approval of April 26, 2021 Council Meeting Minutes D) Consider Approval of Resolution 21-37 a Special Event Permit for Hammerheart Brewing Co. E) Consider Approval an Exempt Permit for Lawful Gambling at St. Joseph of the Lakes Catholic Church F) Consider Acceptance of the Water and Sewer Utility Rate Study Action Taken: Motion by Ruhland, seconded by Cavegn, to approve Consent Agenda Items 1A through 1F as presented, was adopted Council Agenda -2- 2. FINANCE DEPARTMENT REPORT A) Consider Resolution No. 21-43, Providing for the Issuance and Sale of General Obligation Street Reconstruction Bonds, Series 2021A, in the Proposed Aggregate Principal Amount of $1,815,000, Hannah Lynch Action Taken: Motion by Stoesz, seconded by Ruhland, to approve Resolution No. 21-43 as presented, was adopted 3. ADMINISTRATION DEPARTMENT REPORT A) Consider Appointment of Police Officer, Meg Sawyer Action Taken: Motion by Lyden, seconded by Stoesz, to approve the appointment of Daniel Swenson as recommended, was adopted 4. PUBLIC SAFETY DEPARTMENT REPORT A) Consider converting seized property to city property for city use, John Swenson Action Taken: Motion by Cavegn, seconded by Ruhland, to authorize the conversion of seized property as recommended, was adopted B) Consider donation of seized property, John Swenson Action Taken: Motion by Ruhland, seconded by Lyden, to authorize the donation of seized property as recommended, was adopted 5. PUBLIC SERVICES DEPARTMENT REPORT None 6. COMMUNITY DEVELOPMENT REPORT A) Butler Addition, Katie Larsen i) Consider 1st Reading of Ordinance No. 03-21 Rezoning Property from R, Rural to R-1, Single Family Residential Action Taken: Motion by Ruhland, seconded by Cavegn, to approve the 1st Reading of Ordinance No. 03-21 as presented, was adopted ii) Consider Resolution No. 21-39 Approving Preliminary Plat Action Taken: Motion by Ruhland, seconded by Cavegn, to approve Resolution No. 21-39 as presented, was adopted B) Otter Crossing, Katie Larsen i) Consider Resolution No. 21-40 Approving Final Plat Action Taken: Motion by Lyden, seconded by Ruhland, to approve Resolution No. 21-40 as presented, was adopted ii) Consider Resolution No. 21-41 Approving Development Agreement Action Taken: Motion by Lyden, seconded by Ruhland, to approve Resolution No. 21-41 as presented, was adopted Council Agenda -3- iii) Consider Resolution No. 21-42 Approving Declaration of Access Control Action Taken: Motion by Lyden, seconded by Ruhland, to approve Resolution No. 21-42 as presented, was adopted C) Consider Resolution No. 21-38 Denying a Variance for a Second Driveway at 23 Century Trail, Katie Larsen Action Taken: Motion by Lyden, seconded by Cavegn, to approve a variance as requested by application, was adopted; Councilmember Stoesz and Mayor Rafferty voted no 7. UNFINISHED BUSINESS None 8. NEW BUSINESS None Adjournment Motion by Ruhland, seconded by Lyden, to adjourn at 7:25 p.m., was adopted Community Calendar – A Look Ahead May 10, 2021 through May 24, 2021 Wednesday, May 12 6:30 pm, Zoom Planning & Zoning Board Monday, May 24 6:00 pm, Council Chambers Council Work Session Monday, May 24 6:30 pm, Council Chambers City Council Meeting Updated 5/10/2021 CITY COUNCIL AGENDA Monday, May 10, 2021 *********** 6:30 p.m. (Scheduled to be broadcast on Channel 16) City Council: Mayor Rafferty, Councilmembers Cavegn, Lyden, Ruhland and Stoesz City Administrator: Sarah Cotton BOARD OF APPEAL AND EQUALIZATION, 6:00 P.M. Council Chambers COUNCIL WORK SESSION, 6:00 P.M. Council Chambers (not televised) 1. Review Regular Agenda CITY COUNCIL MEETING, 6:30 P.M. Call to Order and Roll Call Pledge of Allegiance Open Mike / Public Comment Setting the Agenda: Addition or Deletion of Agenda Items 1. CONSENT AGENDA A) Consideration of Expenditures: i) May 10, 2021 (Check No. 114273 through 114358) in the Amount of $236,071.25 B) Consider Approval of April 26, 2021 Work Session Minutes C) Consider Approval of April 26, 2021 Council Meeting Minutes D) Consider Approval of Resolution 21-37 a Special Event Permit for Hammerheart Brewing Co. E) Consider Approval an Exempt Permit for Lawful Gambling at St. Joseph of the Lakes Catholic Church F) Consider Acceptance of the Water and Sewer Utility Rate Study 2. FINANCE DEPARTMENT REPORT A) Consider Resolution No. 21-43, Providing for the Issuance and Sale of General Obligation Street Reconstruction Bonds, Series 2021A, in the Proposed Aggregate Principal Amount of $1,815,000, Hannah Lynch 3. ADMINISTRATION DEPARTMENT REPORT A) Consider Appointment of Police Officer, Meg Sawyer Council Agenda -2- 4. PUBLIC SAFETY DEPARTMENT REPORT A) Consider converting seized property to city property for city use, John Swenson B) Consider donation of seized property, John Swenson 5. PUBLIC SERVICES DEPARTMENT REPORT None 6. COMMUNITY DEVELOPMENT REPORT A) Butler Addition, Katie Larsen i) Consider 1st Reading of Ordinance No. 03-21 Rezoning Property from R, Rural to R-1, Single Family Residential ii) Consider Resolution No. 21-39 Approving Preliminary Plat B) Otter Crossing, Katie Larsen i) Consider Resolution No. 21-40 Approving Final Plat ii) Consider Resolution No. 21-41 Approving Development Agreement iii) Consider Resolution No. 21-42 Approving Declaration of Access Control C) Consider Resolution No. 21-38 Denying a Variance for a Second Driveway at 23 Century Trail, Katie Larsen 7. UNFINISHED BUSINESS None 8. NEW BUSINESS None Adjournment Community Calendar – A Look Ahead May 10, 2021 through May 24, 2021 Wednesday, May 12 6:30 pm, Zoom Planning & Zoning Board Monday, May 24 6:00 pm, Council Chambers Council Work Session Monday, May 24 6:30 pm, Council Chambers City Council Meeting Agenda City of Lino Lakes 2021 Local Board of Appeal and Equalization May 10, 2021 1.Call to Order 2.Roll Call 3.Board Chair outlines the ground rules for the meeting: -Purpose of the meeting is to hear appeals about the valuation of properties that are taxed within the city; -Property owners are reminded that only appeals for the current year valuation or classification may be made. These are property taxes payable in 2022; -County Assessor staff will give a brief overview of the property tax process and a recap of the current assessment; -Those persons who have joined the Zoom meeting who have an appeal will be given the opportunity to speak; -The county assessor will respond with facts and information on the property in question; -The Board may approve a motion for a change in valuation; appellants retain their right to also appeal to the Anoka County Board of Equalization. 4.Recess or Close the Meeting. 2021 ASSESSOR’S REPORT BOARD OF APPEAL AND EQUALIZATION Anoka County City of Lino Lakes 1 2021 Local Board of Appeal and Equalization Agenda May 10, 2021 1. Call the Board of Review to Order 2. Roll Call 3. Read Official Notice of the Board of Review 4. Board Chair outlines the ground rules for the meeting. The specific ground rules may vary for each local board but should include: • Purpose of the meeting; • Remind property owners that only appeals for the current year valuation or classification may be made. The 2021 board is to review the assessment as of January 2, 2021, which will be used to compute the property taxes payable in 2022. Prior years’ assessments or taxes (including taxes payable in 2020) are not within the jurisdiction of the board; • The order of the appellants - by appointment first, followed by walk-ins on a first-come basis. The board will also receive written appeals from property owners. The secretary will record the required information (name, mailing address, telephone number, and address of property, etc.) • The expectations of the appellant when presenting their appeal (i.e. the appeal must be substantiated by facts; where the appellant should stand or sit; the appellant should be prepared to answer questions posed by the board, etc.); • Time limits imposed (if any); • The procedure the board will follow for making decisions (Will the board hear all appeals before making any decisions? Will the board send a letter to appellants to inform them of the decision? Etc.) The Board may correct any erroneous valuation and add any omission of properties or increase of value after due process. The total decrease of valuations may not exceed one percent of the total valuation of the taxing district; 5. The Board Chair should give the assessor the opportunity to present a brief overview of the property tax process and a recap of the current assessment. 6. Appellants should then present their appeals to the board. If the assessor has had a chance to review the property prior to the meeting, the assessor can present facts and information either supporting the valuation and or classification, or recommend that the board make a change. If the assessor has not had a chance to review the property prior to the meeting, the board may ask the assessor to review the property and present his/her findings to the board at a reconvene meeting. 7. Recess or Close the Meeting. (If needed, the meeting will be reconvened at a date to be determined. The Board of Appeal and Equalization of any city must complete its work and adjourn within twenty days from the time of convening as specified in the notice of the clerk, unless a longer period is approved by the Commissioner of Revenue. No action taken subsequent to such date shall be valid.) Anoka County City of Lino Lakes 2 Understanding Your Assessment and Appeal Options Assessment Process Timeline In Minnesota it is the duty of the Assessor to value and classify property. This is done annually as of the assessment date of January 2nd. Each year's assessment is based on arms-length transactions (sales that meet the criteria of an open market transaction, see market value definition below) that occurred the previous October thru September. When the assessment is completed the local taxing jurisdictions begin their budgeting process for the following year. They use the total assessment to determine their tax base and develop their tax rates (formerly referred to as mill rates). All aspects of the assessment, including but not limited to the assessment date, sales period for each assessment and property tax classification are dictated by state statute and under the oversight of the Minnesota Department of Revenue. Market Value Defined As in private appraisal, Market Value is defined as: The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by any undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: • buyer and seller are typically motivated: • both parties are well informed or well advised, and acting in what they consider their own best interests; • a reasonable time is allowed for exposure in the open market; • payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; • the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale (a foreclosure sale or a short sale [a sale to avoid foreclosure] is not considered an arms-length transaction). Mass Appraisal Defined Property values for Minnesota real estate tax purposes are determined via mass appraisal. Mass appraisal is the practice of determining individual values based on statistical analysis of a group of sales for a large area. The values are determined as of a specific date and are based on arms-length transactions that occurred during a specified sales period. Anoka County City of Lino Lakes 3 Sales Statistics Defined We have the ability by using statistical analysis to test the accuracy of the assessment. We use these statistics to ensure equity between properties at the neighborhood, municipal and county levels. The Minnesota Department of Revenue also uses these same techniques to test for equity between counties. The primary statistics used are: Median Ratio: This is a measure of central tendency that is the midpoint of a group of sales ratios when arrayed from low to high. The median is a useful statistic as it is not affected by extreme ratios. Aggregate Ratio: This is the total market value of all sale properties divided by the total sale prices. It, along with the mean ratio, gives an idea of our assessment level. Within the city, we constantly try to achieve an aggregate and mean ratio of 94% to 95% to give us a margin to account for a fluctuating market and still maintain ratios within state mandated guidelines. Also referred to as the Weighted Mean. Mean Ratio: The mean is the average ratio. We use this ratio not only to watch our assessment level, but also to analyze property values by development, type of dwelling and value range. These studies enable us to track market trends in neighborhoods, popular housing types and classes of property. Coefficient of Dispersion (COD): The COD measures the accuracy of the assessment. It is possible to have a median ratio of 93% with 300 sales, two ratios at 93%, 149 at 80% and 149 at 103%. Although this is an excellent median ratio, there is obviously a great inequality in the assessment. The COD indicates the spread of the ratios from the mean or median ratio. The goal of a good assessment is a COD of 10 to 20. A COD under 10 is considered excellent and anything over 20 will mean an assessment review by the Department of Revenue. Price Related Differential (PRD): This statistic measures the equality between the assessments of high and low valued property. A PRD over 100 indicates a regressive assessment, or the lower valued properties are assessed at a greater degree than the higher. A PRD of less than 100 indicates a progressive assessment or the opposite. A perfect PRD of 100 means that both higher and lower valued properties are assessed exactly equal. Appeals Procedure Each spring Anoka County sends out a property tax bill (based on the prior year assessment) along with the Notice of Valuation and Classification. Three factors that affect the tax bill are: 1. The amount your local governments (town, city, county, etc.) spend to provide services to your community; 2. The estimated market value of your property; 3. The classification of your property (how it is used). The assessor determines the final two factors. You may appeal the value or classification of your property as described on the next page. Anoka County City of Lino Lakes 4 Informal Appeal • Property owners are encouraged to call the appraiser or assessor whenever they have questions or concerns about their market value, classification of the property, or the assessment process. • Almost all questions can be answered during this informal appeal process. • When taxpayers call questioning their market value, every effort is made to make an appointment to inspect properties that were not previously inspected. • If the data on the property is correct, the appraiser can show the property owner other sales in the market that support the estimated market value. • If errors are found during the inspection, or other factors indicate a value reduction is warranted, the appraiser can easily make the changes at this time. Local Board of Appeal and Equalization • The Local Board of Appeal and Equalization is typically made up of city council members or township board members. In certain cases, a special board is appointed and typically consists of real estate professionals. • The Board meets during late April and early May. • Taxpayers can make their appeal in person or by letter. • If an interior inspection is denied no adjustment can be made to value per MN Statute. • The assessor is present to answer any questions and present evidence supporting their value. County Board of Appeal and Equalization • In order to appeal to the County Board of Appeal and Equalization, a property owner must first appeal to the Local Board of Appeal and Equalization. • The County Board of Appeal and Equalization follows the Local Board of Appeal and Equalization in the assessment appeals process. • Again, if an interior inspection is denied no adjustment can be made to value per MN Statute. • Their role is to ensure equalization among individual assessment districts and classes of property. • Decisions of the County Board of Appeal and Equalization can be appealed to the Minnesota Tax Court. Minnesota Tax Court The Tax Court has statewide jurisdiction. Except for an appeal to the Supreme Court, the Tax Court shall be the sole, exclusive and final authority for the hearing and determination of all questions of law and fact arising under the tax laws of the state. There are two divisions of tax court: the small claims division and the regular division. The Small Claims Division of the Tax Court only hears appeals involving one of the following situations: • The assessor’s estimated market value of the property is <$300,000 • The entire parcel is classified as a residential homestead and the parcel contains no more than one dwelling unit. • The entire property is classified as an agricultural homestead. • Appeals involving the denial of a current year application for homestead classification of the property. The proceedings of the small claims division are less formal and property owners often represent themselves. There is no official record of the proceedings. Decisions made by the small claims division are final and cannot be appealed further. Small claims decisions do not set precedent. Anoka County City of Lino Lakes 5 The Regular Division of the Tax Court will hear all appeals, including those with the jurisdiction of the small claims division. Decisions made here can be appealed to a higher court. The principal office for the Tax Court is in St. Paul. However, the Tax Court is a circuit court and can hold hearings at any other place within the state so that taxpayers may appear with as little inconvenience and expense to the taxpayer as possible. Appeals of property located in Anoka County are heard at the Anoka County Courthouse. Three judges make up the Tax Court. Each may hear and decide cases independently. However, a case may be tried before the entire court under certain circumstances. The petitioner must file in tax court on or before April 30 of the year in which the tax is payable. Anoka County City of Lino Lakes 6 Lino Lakes Assessment Overview Lino Lakes Assessment Staff Name Position License Level Responsibility Shawn Halligan Residential Appraiser CMA – Income Qualified Residential 1-3 Units Jim Hughes Senior Appraiser CMA – Income Qualified Commercial/Industrial/Exempt Alex Guggenberger County Assessor SAMA Countywide Oversight John Fena Appraiser Trainee CMA – In Process Residential 1-3 Units City of Lino Lakes Property Breakdown Property Type Number of Parcels Vacant Residential 630 Improved Residential 7,004 Apartment (Vacant & Improved) 5 Commercial/Industrial (Vacant & Improved) 198 Public Utility 8 Mobile Homes 94 Total 7,939 2021 Assessment As part of this mass appraisal process, all properties are re-valued annually based on the information on record. Properties are physically inspected, and property records reviewed once every 5 years (as statutorily required). This is an ongoing process whereby 20% (referred to as quintile) of a city is inspected each year so that in a cycle of 5 years all properties have been inspected at least once. In addition to this quintile review, properties are also inspected when there is a building permit issued or at the request of the property owner. The sale of a property does not initiate a reassessment. The map on the next page depicts the residential quintile plan for the next 5 years. Quintile Maps are also available on our Public Website. For further information go to: anokacounty.us/3574/Property-Assessment Anoka County City of Lino Lakes 7 Anoka County City of Lino Lakes 8 As stated earlier, Minnesota state law governs the assessment date, which is January 2nd of each year, as well as the sales periods associated with each assessment date. The 2020 assessment which was used for tax calculations this year (2021) was based on transactions that closed between October 1, 2018 and September 30, 2019. Property owners were notified of their 2020 value on their Notice of Valuation and Classification (also referred to as a valuation notice). The notices were mailed out in April of 2020 in the same envelope as the tax statement. The appeals process took place at the municipal level during the month of April of 2020 and at the county level in June of 2020. At this point, if a property owner wishes to appeal their 2020 assessment (for taxes payable 2021) their only option is to file a tax court petition. This must be done no later than April 30, 2021. The 2021assessment was completed in February and the valuation notices were mailed the week of March 29th. The 2021 assessed value will be used for tax calculation purposes next year. The sales period associated with this assessment is October 1, 2019 thru September 30, 2020. As with past assessments, the local appeals process will begin in April and finish up in June. The options and requirements to appeal this assessment are listed on the back of the valuation notice. If a property owner has an issue with their 2021 assessment, the first thing they should do is contact their local assessor. The phone numbers are listed on their valuation notice. Please note that only arms-length sales that closed between October 1, 2019 and September 30, 2020 have been used to determine valuations for the 2021 assessment, for taxes payable in 2022. The following chart may be helpful in following the timeline of your assessment: SALES PERIOD ASSESSMENT DATE TAX YEAR October 1, 2017 to January 2, 2019 2020 September 30, 2018 October 1, 2018 to January 2, 2020 2021 September 30, 2019 October 1, 2019 to January 2, 2021 2022 September 30, 2020 Anoka County City of Lino Lakes 9 We are aware that due to the time frames we are required to work within it sometimes appears as though the assessor’s estimated market value does not represent the market. It seems lower than it should be during times of inflation and higher than it should be in times of deflation. The following chart illustrates the relationship between assessed values and actual sale prices; and how the assessor’s market values have been following the changes as they occur in the open market. Note: The Median Assessor’s Estimated Market Value represents the homes that are in the sales study. One important thing to remember is the assessment process is completed before the budgeting process begins. Assessors do not adjust values in order to increase revenue. There is little correlation between changes in assessments due to market changes and how the resulting real estate tax changes. When we adjust assessments due to market conditions, all properties are adjusted. The only time that an adjustment in an assessor’s estimated market value will have an impact on the increase or decrease in tax is if the change in value is due to value added for new construction or value removed due to demolition/destruction of an improvement. 2021 Sales Statistics – Residential The table below uses various sales metrics to compare how the residential market in Lino Lakes performed compared to the rest of the county. The sales study figures were gathered using Northstar MLS data. Metric Lino Lakes Countywide Average Sale Price & % Change (YOY) $360,700(+8.57%) $314,800(+9.00%) Median Sale Price % Change (YOY) $353,700(+14.10%) $287,000(+8.30%) Median Days on Market (DOM) 15 14 # of Sales & % Change (YOY) 408(+14.28%) 6500(+9.92%) # of Arm’s Length Sales & % Change (YOY) 401(+14.90%) 6435(+11.08%) # of Non-Arm’s Length Sales & % Change (YOY) 7(-12.50%) 65(-45.84%) Anoka County City of Lino Lakes 10 2021 Sales Ratio Statistics The tables below display the final adjusted sales ratios for Residential, Apartments, Commercial, and Industrial properties. All the numbers are within State of MN requirements and indicate a high-quality assessment with good equalization. 12 Month COD Andover 94.35%6.18 Anoka 94.35%6.71 Bethel 90.89%9.60 Blaine 94.45%6.88 Centerville 94.41%6.76 Circle Pines 93.85%7.71 Columbia Heights 93.27%9.12 Columbus 92.51%13.42 Coon Rapids 94.38%5.37 East Bethel 94.45%8.47 Fridley 94.50%6.08 Ham Lake 94.79%6.20 Hilltop 93.30%3.12 Lexington 94.20%7.49 Lino Lakes 94.20%7.45 Linwood 94.35%9.59 Nowthen 93.13%8.18 Oak Grove 92.77%14.86 Ramsey 94.37%7.12 Spring Lake Park 94.54%6.23 St. Francis 94.48%5.64 Countywide 94.31%6.96 C O M B I N E D R E S I D E N T I A L Final Sales Ratio's 12 Month COD Countywide 93.58%8.07 Columbia Heights 96.00%7.00 12 Month COD Countywide 90.93%15.59 Blaine 90.42%16.16 12 Month COD Countywide 92.88%11.95 Blaine 92.31%6.71 C O M I N D A P T Final Sales Ratio's Anoka County City of Lino Lakes 11 Market Value History The graphs below indicate how aggregate values have changed over the last 5 years for each of the four largest property types. Anoka County City of Lino Lakes 12 2021 Market Value Statistics & New Construction The tables below indicate the percentage change (YOY) for each of the four largest property types as well as the total market value. The increase due to New Construction (NC) is also included in the table below. Property Type 2021 EMV % Increase % Increase Due to NCResidential$2,397,009,800 6.92%2.49%Apartment $26,233,200 1.53%Commercial $104,057,900 -2.38%Industrial $81,069,400 -1.60%Total EMV $2,663,594,200 6.06%1.94% Expenditures May 10, 2021 Check #114273 to #114358 $236,071.25 City of Lino Lakes Activity Codes Code Description Code Description 401 Mayor/Council 817 Spring Fling 402 Administration 818 Winter Festival 403 Elections 819 Community Gardens 404 Cable TV 822 Family Corn Roast 405 Charter Administration 827 Gobbler Games 407 Finance 830 Adult Golf Lessons 414 Legal Consultants 835 Youth Skating Class 415 Economic Development 850 Golf Academy 416 Planning & Zoning 856 Youth Soccer 417 Engineering 857 Soccer Fundamentals 418 Community Development 860 Secret Shop 420 Police Protection 864 Preschool Playtime 421 Fire Protection 868 Little Goblins Party 422 Building Inspections 871 Flag Football 430 Streets 875 Snow Day 431 Fleet Management 876 Kite Day 432 Government Buildings 877 Rockin' in the Park 450 Parks 879 Movies in the Park 451 Recreation 890 Senior Programs 461 Environmental 462 Solid Waste Abatement 463 Forestry 494 Water 495 Sanitary Sewer 499 Other 802 Dodgeball Camp 806 Youth T-Ball 808 Youth Baseball Camp 810 Youth Playground 811 Youth Safety Camp 812 Youth Art Camps 814 Senior Programs/Book Club AP Checks by Account Number 5/10/2021 City Council Meeting Vendor Fund/Dept Account Amount Check #Description AFLAC 101-000 101-000-2040-000 232.74 114274 April Insurance Premiums Delta Dental of Minnesota 101-000 101-000-2040-000 460.66 114296 Dental Insurance Premiums Fidelity Security Life Insurance Co. 101-000 101-000-2040-000 14.31 114300 May Vision Insurance Lincoln National Life Ins Co 101-000 101-000-2040-000 1,143.91 114313 Life Insurance Premiums Lincoln National Life Ins Co 101-000 101-000-2040-000 83.40 114313 Life Insurance Premiums Medica 101-000 101-000-2040-000 3,003.77 114318 Health Insurance Premiums Medica 101-000 101-000-2041-000 8,055.50 114318 Health Insurance Premiums Delta Dental of Minnesota 101-000 101-000-2044-000 1,173.76 114296 Dental Insurance Premiums Fidelity Security Life Insurance Co. 101-000 101-000-2048-000 95.82 114300 May Vision Insurance Anoka County Property Records & Taxation 101-000 101-000-2081-000 42.70 114354 Easement - 2148 Dogwood Street Blaeser Penny 101-000 101-000-3250-000 53.60 114284 Partial permit refund Blaeser Penny 101-000 101-000-3250-000 53.60 114284 Partial permit refund Lincoln National Life Ins Co 101-000 101-000-3416-000 0.14 114313 Life Insurance Premiums 101-000 Total 14,413.91 Medica 101-402 101-402-4131-000 538.42 114318 Health Insurance Premiums Lincoln National Life Ins Co 101-402 101-402-4133-000 9.00 114313 Life Insurance Premiums Lincoln National Life Ins Co 101-402 101-402-4133-000 96.35 114314 Disability Insurance Premiums Delta Dental of Minnesota 101-402 101-402-4134-000 89.89 114296 Dental Insurance Premiums Kennedy & Graven Chartered 101-402 101-402-4310-000 53.75 114309 Lino Lakes Officer 299A Claim Shred-it c/o Stericycle Inc. 101-402 101-402-4410-000 28.60 114336 Document Destruction 101-402 Total 816.01 TimeSaver Off-Site Secretarial 101-405 101-405-4300-000 151.00 114341 Charter Commission Meeting 101-405 Total 151.00 Medica 101-407 101-407-4131-000 2,066.40 114318 Health Insurance Premiums Lincoln National Life Ins Co 101-407 101-407-4133-000 6.98 114313 Life Insurance Premiums Lincoln National Life Ins Co 101-407 101-407-4133-000 66.07 114314 Disability Insurance Premiums Delta Dental of Minnesota 101-407 101-407-4134-000 101.11 114296 Dental Insurance Premiums Anoka County Property Records & Taxation 101-407 101-407-4308-000 250.00 114277 Largest Taxpayers List 2020 101-407 Total 2,490.56 Kennedy & Graven Chartered 101-415 101-415-4300-000 143.50 114309 Transfer of YMCA Property to City MN Metro North Tourism Board 101-415 101-415-4900-000 2,495.00 114327 March 2021 Tourism Tax 101-415 Total 2,638.50 Medica 101-416 101-416-4131-000 538.43 114318 Health Insurance Premiums Lincoln National Life Ins Co 101-416 101-416-4133-000 2.25 114313 Life Insurance Premiums Lincoln National Life Ins Co 101-416 101-416-4133-000 25.84 114314 Disability Insurance Premiums Delta Dental of Minnesota 101-416 101-416-4134-000 44.94 114296 Dental Insurance Premiums Anoka County Property Records & Taxation 101-416 101-416-4410-000 92.00 114354 Resolution - 426 Pine Street 101-416 Total 703.46 Medica 101-418 101-418-4131-000 538.42 114318 Health Insurance Premiums Lincoln National Life Ins Co 101-418 101-418-4133-000 4.50 114313 Life Insurance Premiums Lincoln National Life Ins Co 101-418 101-418-4133-000 43.59 114314 Disability Insurance Premiums Delta Dental of Minnesota 101-418 101-418-4134-000 44.94 114296 Dental Insurance Premiums 101-418 Total 631.45 Medica 101-420 101-420-4131-000 18,784.05 114318 Health Insurance Premiums Lincoln National Life Ins Co 101-420 101-420-4133-000 64.23 114313 Life Insurance Premiums Lincoln National Life Ins Co 101-420 101-420-4133-000 655.81 114314 Disability Insurance Premiums Delta Dental of Minnesota 101-420 101-420-4134-000 1,013.44 114296 Dental Insurance Premiums Glock Professional Inc. 101-420 101-420-4211-000 311.73 114304 Firearm supplies Personnel Evaluations Inc. 101-420 101-420-4300-000 100.00 114331 PEP Testing Aspen Mills Inc. 101-420 101-420-4370-000 78.80 114280 Uniform Allowance - Mobraten Christenson Kraemer Ng Aspen Mills Inc. 101-420 101-420-4370-000 845.47 114280 Uniform Allowance - K. Mobraten Baycom Inc. 101-420 101-420-4370-000 80.00 114283 Uniform Allowance - N. Hamann Streicher's Inc. 101-420 101-420-4370-000 44.99 114339 Uniform Allowance - A. Hallin Xcel Energy 101-420 101-420-4381-000 3.71 114351 Electric-Police Aspen Mills Inc. 101-420 101-420-4386-000 532.84 114280 Reserves Equipment Anoka County Treasury Office 101-420 101-420-4410-000 900.00 114278 1st Qtr 2021 State Access Shred-it c/o Stericycle Inc. 101-420 101-420-4410-000 57.22 114336 Document Destruction 101-420 Total 23,472.29 Medica 101-421 101-421-4131-000 1,313.91 114318 Health Insurance Premiums Lincoln National Life Ins Co 101-421 101-421-4133-000 4.40 114313 Life Insurance Premiums Lincoln National Life Ins Co 101-421 101-421-4133-000 51.17 114314 Disability Insurance Premiums Page 1 AP Checks by Account Number 5/10/2021 City Council Meeting Vendor Fund/Dept Account Amount Check #Description Delta Dental of Minnesota 101-421 101-421-4134-000 65.16 114296 Dental Insurance Premiums MN DNR Ecological & Water Resources 101-421 101-421-4240-000 448.03 114326 Fire Cache Order Minnesota Fire Service Certification Board 101-421 101-421-4300-000 120.00 114324 Fire Inspector 1 Certification Exam - J. Fronek Aspen Mills Inc. 101-421 101-421-4370-000 304.50 114280 Uniform Allowance - Dept Expense - N. Clausen Aspen Mills Inc. 101-421 101-421-4370-000 79.50 114280 Uniform Allowance - Dept Expense - B. McReavy 101-421 Total 2,386.67 Medica 101-422 101-422-4131-000 1,680.97 114318 Health Insurance Premiums Lincoln National Life Ins Co 101-422 101-422-4133-000 7.87 114313 Life Insurance Premiums Lincoln National Life Ins Co 101-422 101-422-4133-000 76.13 114314 Disability Insurance Premiums Delta Dental of Minnesota 101-422 101-422-4134-000 89.88 114296 Dental Insurance Premiums OPG-3 Inc. 101-422 101-422-4300-000 185.00 114329 Workflow email Address Change 101-422 Total 2,039.85 Medica 101-430 101-430-4131-000 2,699.36 114318 Health Insurance Premiums Lincoln National Life Ins Co 101-430 101-430-4133-000 14.06 114313 Life Insurance Premiums Lincoln National Life Ins Co 101-430 101-430-4133-000 119.31 114314 Disability Insurance Premiums Delta Dental of Minnesota 101-430 101-430-4134-000 191.01 114296 Dental Insurance Premiums Frattallone's/Circle Pines Ace 101-430 101-430-4211-000 4.99 114302 Flourescent paint Menards - Forest Lake 101-430 101-430-4211-000 66.22 114320 Supplies for mailbox repair Earl F. Andersen 101-430 101-430-4223-000 317.95 114297 Protected Open Space - Signs - Qty 20 Menards - Forest Lake 101-430 101-430-4223-000 292.82 114320 Posts for Wetland signs Menards - Forest Lake 101-430 101-430-4223-000 66.54 114320 Posts for barricade repairs City of St. Paul 101-430 101-430-4224-000 840.86 114293 Asphalt Cargill Inc. 101-430 101-430-4228-000 2,183.91 114287 Deicer - 50 460 LB Cargill Inc. 101-430 101-430-4228-000 6,434.01 114287 Deicer - 148 660 LB A&L Superior Quality Sod Inc. 101-430 101-430-4229-000 14.00 114273 Plow damage repairs Plaisted Companies Inc. 101-430 101-430-4229-000 230.45 114332 Top soil All Seasons Rental Inc. 101-430 101-430-4240-000 149.00 114275 Auger bit for posthole auger Safe-Fast Inc. 101-430 101-430-4370-000 59.95 114334 Uniform Allowance - R. Boldt Xcel Energy 101-430 101-430-4385-000 540.97 114351 Electric-Street Lights Xcel Energy 101-430 101-430-4385-000 3,968.07 114351 Electric-Street Lights 101-430 Total 18,193.48 Medica 101-431 101-431-4131-000 1,084.08 114318 Health Insurance Premiums Lincoln National Life Ins Co 101-431 101-431-4133-000 4.95 114313 Life Insurance Premiums Lincoln National Life Ins Co 101-431 101-431-4133-000 42.83 114314 Disability Insurance Premiums Delta Dental of Minnesota 101-431 101-431-4134-000 98.88 114296 Dental Insurance Premiums Aramark Uniform & Career Apparel Group Inc. 101-431 101-431-4211-000 100.14 114279 Shop towels Safety-Kleen Systems Inc. 101-431 101-431-4211-000 50.42 114335 Solvent Mansfield Oil Company 101-431 101-431-4212-000 4,861.66 114316 Fuel Mansfield Oil Company 101-431 101-431-4212-000 1,683.21 114316 Diesel Fuel Auto Nation Ford White Bear Lake 101-431 101-431-4221-000 104.54 114281 Front seat seat-belt buckle and motor assembly #398 Bluetarp Financial Inc. 101-431 101-431-4221-000 47.55 114285 Trailer lights #706 Factory Motor Parts Company 101-431 101-431-4221-000 198.47 114299 Starter Factory Motor Parts Company 101-431 101-431-4221-000 -248.87 114299 Starter Return and Core Credit Factory Motor Parts Company 101-431 101-431-4221-000 32.98 114299 Sway Bar Link Kit #231 Factory Motor Parts Company 101-431 101-431-4221-000 246.40 114299 Starter #231 Factory Motor Parts Company 101-431 101-431-4221-000 80.75 114299 Door handle #231 Hydraulics Plus & Consulting 101-431 101-431-4221-000 74.14 114306 Sander hydraulic fittings #260 Minnesota Equipment 101-431 101-431-4221-000 127.68 114323 Regulator #119 O'Reilly Automotive Stores 101-431 101-431-4221-000 25.74 114330 Magnet kit O'Reilly Automotive Stores 101-431 101-431-4221-000 111.08 114330 Oil and fuel filters O'Reilly Automotive Stores 101-431 101-431-4221-000 69.95 114330 3pk Wipes Walser Polar Chevrolet 101-431 101-431-4221-000 204.68 114343 Engine cooler hose transmission cooler line outlet pipe #231 Walser Polar Chevrolet 101-431 101-431-4221-000 12.03 114343 Filter cap #417 Winnick Supply Inc. 101-431 101-431-4221-000 24.31 114348 Oxygen & Acetylene for torch Zack's Inc. 101-431 101-431-4221-000 109.71 114352 Ballfield groomer Zarnoth Brush Works Inc. 101-431 101-431-4221-000 504.00 114353 Main broom for street sweeper #252 O'Reilly Automotive Stores 101-431 101-431-4240-000 257.40 114330 Trailer lights tester Auto Nation Ford White Bear Lake 101-431 101-431-4300-000 722.15 114281 Ball joints rear differential seal leaking inspection #397 Emergency Apparatus Maintenance 101-431 101-431-4410-000 642.91 114298 Repair signal replaced belts battery steering stabilizer #605 Emergency Apparatus Maintenance 101-431 101-431-4410-000 422.49 114298 Inspection and service portable pump #605 Emergency Apparatus Maintenance 101-431 101-431-4410-000 878.20 114298 Inspection replace transmission bolt & torn steering boot #610 Page 2 AP Checks by Account Number 5/10/2021 City Council Meeting Vendor Fund/Dept Account Amount Check #Description Emergency Apparatus Maintenance 101-431 101-431-4410-000 746.85 114298 Repair coolant leak #620 101-431 Total 13,321.31 Batteries Plus Bulbs 101-432 101-432-4211-000 131.75 114282 Batteries Dalco Inc. 101-432 101-432-4211-503 816.02 114295 Trash can bags toilet tissue paper towels Menards - Forest Lake 101-432 101-432-4211-503 40.85 114320 Tile repair in entry way Winnick Supply Inc. 101-432 101-432-4211-503 68.76 114348 Vacuum breaker Winnick Supply Inc. 101-432 101-432-4211-503 48.06 114348 Toilet seat Anoka County Property Records & Taxation 101-432 101-432-4300-500 155.54 114356 2021 Property Tax Old City Hall - PIN #04-31-22-44-0004 Anoka County Property Records & Taxation 101-432 101-432-4300-500 172.86 114356 2021 Property Tax Old City Hall - PIN #04-31-22-44-0001 Anoka County Treasury Office 101-432 101-432-4300-500 75.00 114278 Site 115 May 2021 Cac Fiber Hotsy Equipment of Minnesota 101-432 101-432-4300-500 512.83 114305 Pressure washer repair Minnesota Petroleum Service 101-432 101-432-4300-500 655.00 114325 Repair Diesel Pump Anoka County Property Records & Taxation 101-432 101-432-4300-501 545.16 114356 2021 Property Tax Fire Station #1 PIN #08-31-22-42-0028 Anoka County Treasury Office 101-432 101-432-4300-501 75.00 114278 Site 116 May 2021 Cac Fiber Anoka County Property Records & Taxation 101-432 101-432-4300-502 545.16 114356 2021 Property Tax Fire Station #2 PIN #26-31-22-31-0004 Anoka County Property Records & Taxation 101-432 101-432-4300-503 545.16 114356 2021 Property Tax New City Hall PIN #17-31-22-13-0050 Anoka County Treasury Office 101-432 101-432-4300-503 75.00 114278 Site 117 May 2021 Cac Fiber CenturyLink 101-432 101-432-4321-503 59.36 114290 Phone Services Xcel Energy 101-432 101-432-4381-501 481.13 114351 Electric-Fire Station #1 Xcel Energy 101-432 101-432-4381-502 958.75 114351 Electric-Fire Station #2 Xcel Energy 101-432 101-432-4381-503 4,768.25 114351 Electric-Civic Complex CES Imaging 101-432 101-432-4410-000 80.00 114291 April Plotter/Scanner Maintenance Metro Sales Incorporated 101-432 101-432-4410-500 82.22 114321 Copier Maintenance Contract Ricoh/MP C307 Color Copier Aramark Uniform & Career Apparel Group Inc. 101-432 101-432-4410-501 185.95 114279 Mats Aramark Uniform & Career Apparel Group Inc. 101-432 101-432-4410-502 221.71 114279 Mats Aramark Uniform & Career Apparel Group Inc. 101-432 101-432-4410-503 340.10 114279 Mats Marsden Bldg Maintenance LLC 101-432 101-432-4410-503 549.68 114317 Enhanced Sanitize Cleaning Metro Sales Incorporated 101-432 101-432-4410-503 158.58 114321 Copier Maintenance Contract Ricoh/MP 6002SP & C3504 101-432 Total 12,347.88 Medica 101-450 101-450-4131-000 1,453.75 114318 Health Insurance Premiums Lincoln National Life Ins Co 101-450 101-450-4133-000 11.13 114313 Life Insurance Premiums Lincoln National Life Ins Co 101-450 101-450-4133-000 96.42 114314 Disability Insurance Premiums Delta Dental of Minnesota 101-450 101-450-4134-000 177.52 114296 Dental Insurance Premiums Cardinal James 101-450 101-450-4211-000 140.00 114286 2 straw bales for healing in nursery stock Frattallone's/Circle Pines Ace 101-450 101-450-4211-000 40.97 114302 Hose accessories Tessman Company 101-450 101-450-4211-000 1,910.00 114340 Fertilizer Wipers & Wipes Inc. 101-450 101-450-4211-000 238.20 114349 Can liners Xcel Energy 101-450 101-450-4381-000 184.20 114351 Electric-Parks Anoka County Property Records & Taxation 101-450 101-450-4410-000 13.30 114355 Deed Tax and Ag Fee for Oaks in Lino Lakes Quit Claim Deeds Jimmy's Johnnys 101-450 101-450-4410-000 36.43 114308 Toilet Rental - Behm's Park Jimmy's Johnnys 101-450 101-450-4410-000 60.00 114308 Toilet Rental - Birch Park Jimmy's Johnnys 101-450 101-450-4410-000 36.43 114308 Toilet Rental - Marshan Park Jimmy's Johnnys 101-450 101-450-4410-000 36.43 114308 Toilet Rental - Highland Meadows Jimmy's Johnnys 101-450 101-450-4410-000 36.43 114308 Toilet Rental - Clearwater Creek Jimmy's Johnnys 101-450 101-450-4410-000 60.00 114308 Toilet Rental - City Hall Park Jimmy's Johnnys 101-450 101-450-4410-000 60.00 114308 Toilet Rental - Sunrise Park Jimmy's Johnnys 101-450 101-450-4410-000 60.00 114308 Toilet Rental - Lino Park Finance & Commerce Inc. 101-450 101-450-5000-000 219.56 114301 Construction Bid Press Publications Inc. 101-450 101-450-5000-000 245.76 114333 Tower Park Improvement Project WSB & Associates Inc. 101-450 101-450-5000-000 10,541.75 114350 February 2021 Tower Park Site Improvements 101-450 Total 15,658.28 Medica 101-461 101-461-4131-000 201.91 114318 Health Insurance Premiums Lincoln National Life Ins Co 101-461 101-461-4133-000 0.85 114313 Life Insurance Premiums Lincoln National Life Ins Co 101-461 101-461-4133-000 8.19 114314 Disability Insurance Premiums Delta Dental of Minnesota 101-461 101-461-4134-000 16.85 114296 Dental Insurance Premiums 101-461 Total 227.80 Medica 101-462 101-462-4131-000 134.61 114318 Health Insurance Premiums Lincoln National Life Ins Co 101-462 101-462-4133-000 0.56 114313 Life Insurance Premiums Lincoln National Life Ins Co 101-462 101-462-4133-000 5.46 114314 Disability Insurance Premiums Delta Dental of Minnesota 101-462 101-462-4134-000 11.24 114296 Dental Insurance Premiums 101-462 Total 151.87 Page 3 AP Checks by Account Number 5/10/2021 City Council Meeting Vendor Fund/Dept Account Amount Check #Description Medica 101-463 101-463-4131-000 201.91 114318 Health Insurance Premiums Lincoln National Life Ins Co 101-463 101-463-4133-000 0.84 114313 Life Insurance Premiums Lincoln National Life Ins Co 101-463 101-463-4133-000 8.19 114314 Disability Insurance Premiums Delta Dental of Minnesota 101-463 101-463-4134-000 16.85 114296 Dental Insurance Premiums 101-463 Total 227.79 Dalco Inc. 202-451 202-451-4211-000 66.38 114295 Large trash can bags Dalco Inc. 202-451 202-451-4211-000 675.96 114295 Trash cans and trash can dolly's Dalco Inc. 202-451 202-451-4211-000 78.56 114295 Feminine hygiene products Dalco Inc. 202-451 202-451-4211-000 2,170.26 114295 Kleenex garbage bags hand sanitizer toilet paper mop Image Printing & Graphics Inc 202-451 202-451-4211-000 125.00 114307 6 left arrow signs 5 right arrow signs Frontier Concrete & Masonry 202-451 202-451-4300-000 1,649.60 114303 Handicap sidewalk ramp Wheeler Hardware Company 202-451 202-451-4300-000 1,425.00 114345 Keying CenturyLink 202-451 202-451-4321-000 193.19 114290 Phone Services Xcel Energy 202-451 202-451-4381-000 2,822.54 114351 Walters Recycling & Refuse 202-451 202-451-4384-000 131.38 114344 Trash & Recycling Marsden Bldg Maintenance LLC 202-451 202-451-4410-000 2,022.73 114317 Commercial Cleaning 202-451 Total 11,360.60 Aspen Mills Inc. 206-420 206-420-4240-000 3,801.00 114280 Riot face shields - Qty 7 206-420 Total 3,801.00 Anoka County Attorney's Office 207-420 207-420-4300-000 25.36 114276 Forfeiture Distribution Centennial Flooring 207-420 207-420-4300-000 375.00 114288 Flooring & installation State of MN - Department of Finance 207-420 207-420-4300-000 12.68 114338 Forfeiture Distribution 207-420 Total 413.04 Menards - Blaine 401-432 401-432-5000-000 366.39 114319 Tile and grout 401-432 Total 366.39 LORENSON DEB 406-000 406-000-2020-000 6.33 114315 Refund Check 015717-000 7883 OAK CT 406-000 Total 6.33 Anoka County Property Records & Taxation 420-499 420-499-5140-000 53.24 114356 2021 Property Tax 7685 Lake Dr PIN #08-31-22-43-0002 420-499 Total 53.24 League of Minnesota Cities 422-499 422-499-4300-000 1,000.00 114312 MN Cities Stormwater Coalition Contribution 422-499 Total 1,000.00 WSB & Associates Inc. 425-499 425-499-4300-138 502.50 114350 February 2021 Lino Park Improvements 425-499 Total 502.50 LORENSON DEB 601-000 601-000-2020-000 7.48 114315 Refund Check 015717-000 7883 OAK CT LORENSON DEB 601-000 601-000-2020-000 1.54 114315 Refund Check 015717-000 7883 OAK CT City of Blaine 601-000 601-000-2140-000 70.47 114292 1st Qtr 2021 Sewer & Water Charges 601-000 Total 79.49 Medica 601-494 601-494-4131-000 1,510.54 114318 Health Insurance Premiums Lincoln National Life Ins Co 601-494 601-494-4133-000 7.29 114313 Life Insurance Premiums Lincoln National Life Ins Co 601-494 601-494-4133-000 61.20 114314 Disability Insurance Premiums Delta Dental of Minnesota 601-494 601-494-4134-000 142.69 114296 Dental Insurance Premiums Core & Main LP 601-494 601-494-4215-000 5,785.97 114294 Meter horns Core & Main LP 601-494 601-494-4215-000 8,960.00 114294 Meters WSB & Associates Inc. 601-494 601-494-4300-000 772.00 114350 February Risk Assessment & Emergency Response Plan Circle Pines Post Office 601-494 601-494-4322-000 437.46 114357 UB Postage Williams Justin 601-494 601-494-4330-000 682.00 114347 Tuition Reimbursement Xcel Energy 601-494 601-494-4381-000 2,153.75 114351 Electric-Water Centennial Utilities 601-494 601-494-4382-000 383.40 114289 2nd Qtr 2021 Sewer & Water Charges City of Blaine 601-494 601-494-4382-000 629.64 114292 1st Qtr 2021 Sewer & Water Charges City of Circle Pines 601-494 601-494-4410-000 21.87 114358 Folding machine rental 1.25 hours Midway Ford Company 601-494 601-494-5000-000 23,418.44 114322 2021 Ford F250 #510 Silver Star Industries 601-494 601-494-5000-000 431.03 114337 Running boards mount kit back rack light bar floor mats #510 WSB & Associates Inc. 601-494 601-494-5000-000 1,821.00 114350 February Well House Rehabilitation 601-494 Total 47,218.28 LORENSON DEB 602-000 602-000-2020-000 35.28 114315 Refund Check 015717-000 7883 OAK CT 602-000 Total 35.28 Medica 602-495 602-495-4131-000 1,510.56 114318 Health Insurance Premiums Lincoln National Life Ins Co 602-495 602-495-4133-000 7.34 114313 Life Insurance Premiums Lincoln National Life Ins Co 602-495 602-495-4133-000 61.20 114314 Disability Insurance Premiums Delta Dental of Minnesota 602-495 602-495-4134-000 142.69 114296 Dental Insurance Premiums Olson's Sewer Service Inc. 602-495 602-495-4300-000 5,819.65 114328 Excavation work at 165 Woodridge Ln Page 4 AP Checks by Account Number 5/10/2021 City Council Meeting Vendor Fund/Dept Account Amount Check #Description Circle Pines Post Office 602-495 602-495-4322-000 437.46 114357 UB Postage Williams Justin 602-495 602-495-4330-000 682.00 114347 Tuition Reimbursement Xcel Energy 602-495 602-495-4381-000 2,187.92 114351 Electric-Sewer Centennial Utilities 602-495 602-495-4382-000 193.83 114289 2nd Qtr 2021 Sewer & Water Charges City of Blaine 602-495 602-495-4382-000 1,860.00 114292 1st Qtr 2021 Sewer & Water Charges City of Circle Pines 602-495 602-495-4410-000 21.88 114358 Folding machine rental 1.25 hours Midway Ford Company 602-495 602-495-5000-000 23,418.43 114322 2021 Ford F250 #510 Silver Star Industries 602-495 602-495-5000-000 431.03 114337 Running boards mount kit back rack light bar floor mats #510 W.W. Goetsch Associates Inc. 602-495 602-495-5000-000 15,276.00 114342 Lift Station #4 Rebuild - FA2209 602-495 Total 52,049.99 Anoka County Property Records & Taxation 801-000 801-000-2300-000 6.38 114356 2021 Property Tax Northpointe 5th Add PIN #25-31-22-21-0057 KLM Engineering Inc. 801-000 801-000-2300-000 1,500.00 114310 Antenna Drawing Review - T-Mobile Tower #2 Press Publications Inc. 801-000 801-000-2300-000 56.32 114333 7869 Meadow View Trl Ordinance 02-21 Whitmore Barbara & Lee 801-000 801-000-2300-000 2,325.30 114346 Whitmore-Beckvall Minor Subdivision Escrow Closure Kootenia Homes Inc. 801-000 801-000-2318-000 5,425.00 114311 Escrow Release - 6439 Fox Rd 801-000 Total 9,313.00 Grand Total 236,071.25 Page 5 Electronic Funds Transfer MN Statute 471.38 Subd. 3 Council Meeting May 10, 2021 Transfer In/(Out) 4/16/2021 Payroll #08 (135,338.19) 4/16/2021 Payroll #08 Federal Deposit (40,684.38) 4/16/2021 Payroll #08 PERA (43,519.89) 4/16/2021 Payroll #08 State (9,246.49) 4/16/2021 Payroll #08 Child Support (276.29) 4/16/2021 Payroll #08 H.S.A. Bank Pretax (3,198.18) 4/16/2021 Payroll #08 TASC Pretax (749.96) 4/16/2021 Payroll #08 ICMA 457 Def. Comp #301596 (3,845.00) 4/16/2021 Payroll #08 ICMA Roth IRA #706155 (855.75) 4/16/2021 Payroll #08 MSRS HCSP #98946-01 (1,616.21) 4/16/2021 Payroll #08 MSRS Def. Comp #98945-01 (3,410.00) 4/16/2021 Payroll #08 MSRS Roth IRA #98945-01 (675.00) 4/20/2021 Sales & Use Tax (1,081.00) 4/23/2021 Wire from 4M (Gen Acct) 500,000.00 4/30/2021 Payroll #09 (133,223.65) 4/30/2021 Payroll #09 Federal Deposit (39,699.07) 4/30/2021 Payroll #09 PERA (42,948.53) 4/30/2021 Payroll #09 State (9,218.84) 4/30/2021 Payroll #09 Child Support (276.29) 4/30/2021 Payroll #09 H.S.A. Bank Pretax (3,198.18) 4/30/2021 Payroll #09 TASC Pretax (749.96) 4/30/2021 Payroll #09 ICMA 457 Def. Comp #301596 (3,845.00) 4/30/2021 Payroll #09 ICMA Roth IRA #706155 (855.75) 4/30/2021 Payroll #09 MSRS HCSP #98946-01 (1,608.55) 4/30/2021 Payroll #09 MSRS Def. Comp #98945-01 (3,433.00) 4/30/2021 Payroll #09 MSRS Roth IRA #98945-01 (675.00) 5/3/2021 HSA Bank ER Contribution (5,999.85) 5/7/2021 Council #05 Payroll (3,304.93) 5/7/2021 Council #05 Federal Deposit (196.60) 5/7/2021 Council #05 PERA (367.62) 5/7/2021 Council #05 State (43.95) CITY COUNCIL WORK SESSION DRAFT 1 CITY OF LINO LAKES 1 MINUTES 2 3 DATE : April 26, 2021 4 TIME STARTED : 6:00 p.m. 5 TIME ENDED : 6:30 p.m. 6 MEMBERS PRESENT : Council Member Stoesz, Lyden, Ruhland, 7 Cavegn and Mayor Rafferty 8 MEMBERS ABSENT : None 9 Staff members present: City Administrator Sarah Cotton; Director of Public Safety John 10 Swenson; City Planner Katie Larsen; City Engineer Diane Hankee; City Clerk Julie 11 Bartell 12 13 1. Communications Coordinator Position – Administrator Cotton reviewed the 14 written report pointing out the council’s previous approval of a communications positions 15 within the City’s organizational structure, the staff recommendation for a specialist 16 position supervised by the Human Resources Manager, salary range recommendations 17 based on the City’s adopted Keystone Job Leveling System. 18 19 Mayor Rafferty asked if the intent is to fund the position for a couple of years from the 20 Communications Fund and Ms. Cotton noted that fund’s current balance, annual revenue 21 expectations and her recommendation that the annual funding of this position be covered 22 by the fund in the amount of $40,000. 23 24 Councilmember Cavegn asked if the Human Resources Manager position currently 25 includes the communications function supervision. Ms. Cotton noted the council’s 26 previous discussion which pointed to Ms. Sawyer supervising the position; Ms. Sawyer’s 27 background includes experience in communications. Councilmember Cavegn asked if 28 Ms. Sawyer would take over functions if the communications position were to become 29 vacant; Ms. Cotton said it would probably be covered by staff as necessary including by 30 administrative staff. 31 32 Councilmember Lyden expressed some concern that the communications position 33 wouldn’t be self-managed. Increasing the salary of another position to provide 34 supervision is an added cost. He recalled that this was originally going to be a half time 35 position and that has changed with this recommendation and above that a salary increase 36 is proposed. Ms. Cotton pointed out that the original communications position was 37 anticipated at a higher level than is now being recommended. Councilmember Lyden 38 noted that he doesn’t understand the concept of everyone having to report to someone; 39 employees should know their job. 40 41 Mayor Rafferty noted that the Human Resources Manager is being asked to provide 42 additional services. He doesn’t see that having the position report to the City 43 CITY COUNCIL WORK SESSION DRAFT 2 Administrator with everything on her plate is ideal. The mayor remarked that he has 44 come to a place of supporting the new position; he sees it’s needed. 45 46 Councilmember Stoesz asked if there is process for considering employee compensation 47 ratings regularly and not on an immediate change basis. Administrator Cotton suggested 48 that if changes occur and the City doesn’t recognize them in the system, the system 49 becomes less accurate; she believes a new position or a change in job responsibilities 50 should trigger a review. Councilmember Stoesz asked if, for example, the Public 51 Services Director position will be reviewed because he has added responsibility with 52 handling the YMCA building; Ms. Cotton explained the criteria for reviewing a position. 53 Councilmember Stoesz asked if the communications individual would be the person 54 representing the City if there were something like a 9:00 p.m. public safety incident. 55 Public Safety Director Swenson said it would depend on the incident and communication 56 duties would possibly work down from Public Safety personnel to communications. 57 58 Councilmember Stoesz asked if the communications person would be attending the North 59 Metro TV Board meetings. Ms. Cotton said probably not but she sees the position 60 working closely with North Metro on communication collaboration. 61 62 Councilmember Ruhland said he shares some of the concern expressed about moving up 63 another position. He requested and received information on the salary level for the 64 current Human Resources Manager. Ms. Cotton provided information on how the 65 implementation of the Keystone system affected some positions. Councilmember 66 Ruhland noted the decrease in the point level assigned to the communications position 67 from what was anticipated from initial discussions about the position. 68 69 Councilmember Cavegn asked if there would be cost savings by hiring two part time 70 individuals to fill the one full time position. Administrator Cotton said that option was 71 discussed and staff felt that a full time position would bring a higher quality; there would 72 also be some question about how two positions transition to each other. Ms. Cotton 73 pointed out the possible savings would be limited to the cost of health care. 74 75 Administrator Cotton noted that through investigating, she’s determined that there are 76 only three cities of this City’s comparable group that do not have a position like this in 77 place. 78 79 Councilmember Ruhland asked how the supervision will actually function. 80 Administrator Cotton explained that there would be policies and procedures that guide 81 functions and approvals. Councilmember Ruhland asked what specific supervision 82 functions would occur and Ms. Cotton pointed out that performance review would be one 83 function; she added that it is a new position and would therefore will require more 84 intensive supervision and development. 85 86 Mayor Rafferty noted the importance of considering stress factors so that the City doesn’t 87 experience a revolving door with key positions. 88 CITY COUNCIL WORK SESSION DRAFT 3 89 Councilmember Stoesz asked about other operational expenses that could come into play. 90 Ms. Cotton said she asked that question also and Ms. Sawyer suggested that large 91 technology expenses aren’t anticipated. Director Swenson noted the availability of North 92 Metro TV for many technology and assistance needs. 93 94 Following the city council meeting, Administrator Cotton received direction from the 95 council to proceed with posting the communications position. 96 97 2. Review Regular Agenda of April 26, 2021 - 98 99 The meeting was adjourned at 6:30 p.m. 100 101 These minutes were considered, corrected and approved at the regular Council meeting held on 102 May 10, 2021. 103 104 105 106 107 Julianne Bartell, City Clerk Rob Rafferty, Mayor 108 109 COUNCIL MINUTES DRAFT 1 1 LINO LAKES CITY COUNCIL 2 REGULAR MEETING 3 MINUTES 4 5 DATE : April 26, 2021 6 TIME STARTED : 6:30 p.m. 7 TIME ENDED : 7:08 p.m. 8 MEMBERS PRESENT : Councilmember Stoesz, Lyden, 9 Ruhland, Cavegn and Mayor Rafferty 10 MEMBERS ABSENT : 11 12 Staff members present: City Administrator Sarah Cotton; Public Safety Director John Swenson; 13 City Engineer Diane Hankee; City Planner Katie Larsen; City Clerk Julie Bartell 14 15 PUBLIC COMMENT 16 Paul Lesch, American Legion Board and city resident, expressed concern that too many things are 17 being cancelled by the City. The American Legion is wondering if they should step forward and 18 sponsor some of those events (i.e. Lino Lakes Ambassadors, Blue Heron Days, Corn Feed). They’d 19 like to see people still have the opportunity. 20 SETTING THE AGENDA 21 The agenda was approved as presented. 22 SPECIAL PRESENTATION 23 Presentation of Certificate of Recognition – Eagle Scout Zach Cardille – A certificate was presented 24 by Mayor Rafferty. A letter from Anoka County Commissioner Jeff Reinert was also read. 25 PROCLAMATION 26 Mayor Rafferty read a proclamation regarding Arbor Day. 27 CONSENT AGENDA 28 Councilmember Ruhland moved to approve the Consent Agenda, Items 1A through 1E as presented. 29 Councilmember Lyden seconded the motion. Motion carried on a voice vote. 30 31 ITEM ACTION 32 Consideration of Expenditures: 33 A) April 26, 2021 (Check No. 114189 through 114272) in the 34 Amount of $764,013.10 Approved 35 B) Consider Approval of April 5, 2021 Council 36 Work Session Minutes Approved 37 C) Consider Approval of April 12, 2021 Council Minutes Approved 38 D) Consider Approval of April 12, 2021 Work Session 39 Minutes Approved 40 COUNCIL MINUTES DRAFT 2 E) Consider Approval of a Peddler License for 41 Custom Remodelers, Inc. Approved 42 FINANCE DEPARTMENT REPORT 43 There was no report from the Finance Department. 44 ADMINISTRATION DEPARTMENT REPORT 45 There was no report from the Administration Department. 46 PUBLIC SAFETY DEPARTMENT REPORT 47 4A) Consider Donation of Seized Property- - Public Safety Director Swenson reviewed his 48 written request to donate bicycles to the Bikes for Kids program. The department comes into 49 possession of the bicycles and, after due process, must move them from storage. He recommends 50 that they be donated to this program that supports the community. 51 Councilmember Cavegn moved to authorize the donation of property as recommended. 52 Councilmember Lyden seconded the motion. Motion carried on a voice vote. 53 4B) Consider Acceptance of Donated Gift Cards- - Public Safety Director Swenson explained 54 that he is requesting authority to accept donated gift cards. There have been many cards donated 55 mostly by residents. Staff proposes to utilize the funds for certain departmental activities. The 56 total value is $1,355. 57 Councilmember Lyden asked that the public be informed that their generousity is appreciated. The 58 work of the department is appreciated by the council as well. 59 Councilmember Cavegn moved to authorize the donation of property as recommended. 60 Councilmember Ruhland seconded the motion. Motion carried on a voice vote. 61 PUBLIC SERVICES DEPARTMENT REPORT 62 There was no report from the Public Services Department. 63 COMMUNITY DEVELOPMENT REPORT 64 6A) Consider Approval of Resolution No. 21-33, Order Project, Approve the Plans and 65 Specifications and Authorize the Ad for Bid, 2021 Street Maintenance Project – City Engineer 66 Hankee reviewed her written report outlining previous council review and consideration of the 67 project. She noted that the staff report includes a map of the areas included in the project. She 68 noted how the project is funded. Staff is requesting authorization to go out for bids. 69 Mayor Rafferty noted the area included for rejuvenation where streets were just put in in 2015. Ms. 70 Hankee explained the process that would occur and why that is appropriate to preserve the life of 71 those streets. 72 Councilmember Stoesz noted that some streets are adjacent to other jurisdictions; is it appropriate to 73 request a contribution? Ms. Hankee noted information in the staff report indicating where a 74 contribution will be received. 75 Councilmember Cavegn moved to approve Resolution No. 21-33 as presented. Councilmember 76 Ruhland seconded the motion. Motion carried on a voice vote. 77 COUNCIL MINUTES DRAFT 3 6B) Consider Resolution No. 21-34, Approving Master Partnership Contract with 78 MnDOT2021 Street Improvement Project – City Engineer Hankee reviewed the written staff report 79 requesting authorization to execute a master contract with MnDOT for street improvement projects. 80 The City is required to have a master contract in place when it is required for MSA projects. A 81 portion of the 2021 Street Improvement Project includes an State Aid route, requires materials 82 inspections services, and therefore requires that this contract be in place. 83 Mayor Rafferty asked how residents will be informed and Ms. Hankee said there will be a 84 construction notice and other communication. Project information is also posted on the City 85 website. 86 Councilmember Stoesz confirmed that MSA funds are the City’s share of the gas tax. 87 Councilmember Lyden moved to approve Resolution No. 21-34 as presented. Councilmember 88 Stoesz seconded the motion. Motion carried on a voice vote. 89 6A) Consider Resolution No. 21-33 Approving Amendment #1 to Century Farm North 7th 90 Addition Planned Unit Development Agreement – City Planner Larsen viewed a PowerPoint 91 presentation that included information on the following: 92 - Map indicating area of development; area of Robinson Drive; 93 - In 2003 the area was proposed for townhomes; 2018 developer requested amendment to re-94 plat to single family homes and a condition was requested that a sidewalk be constructed on 95 the east side (the developer ultimately paid $10,000 in park dedication fees in lieu of the 96 sidewalk); the HOA now wants the sidewalk and the developer will install with the refund of 97 the $10,000. 98 - Four single family homes are in and the area of the sidewalk was reviewed on a map; 99 - The resolution would amend the development agreement recognizing the sidewalk 100 amendment. 101 Mayor Rafferty noted the change in park dedication fees from 2018. Planner Larsen noted that land 102 was dedicated by the developer instead of the park dedication fee. 103 Councilmember Cavegn asked if the HOA changed their mind and Planner Larsen noted 104 communication as the issue. 105 Councilmember Stoesz clarified what area will be maintained by the HOA. Ms. Larsen explained 106 that the area has already been platted so it’s clear who will own what. 107 Councilmember Lyden moved to approve Resolution No. 21-33 as presented. Councilmember 108 Ruhland seconded the motion. Motion carried on a voice vote. 109 UNFINISHED BUSINESS 110 There was no Unfinished Business. 111 112 NEW BUSINESS 113 There was no New Business. 114 115 COMMUNITY EVENTS 116 There were no events announced. 117 COUNCIL MINUTES DRAFT 4 COMMUNITY CALENDAR 118 Community Calendar – A Look Ahead 119 April 26, 2021 through May 10, 2021 120 Monday, May 3 6:00 pm, Council Chambers Council Work Session 121 Wednesday, May 5 6:30 pm, Zoom Park Board 122 Thursday, May 6 8:00 am, Zoom EDAC 123 Monday, May 10 6:00 pm, Council Chambers Board of Appeal 124 Monday, May 10 6:30 pm, Council Chambers City Council Meeting 125 126 ADJOURN 127 128 There being no further business, Councilmember Cavegn moved to adjourn at 7:08 p.m. 129 Councilmember Lyden seconded the motion. Motion carried on a voice vote. 130 131 These minutes were considered and approved at the regular Council Meeting on May 10, 2021. 132 133 134 135 136 Julianne Bartell, City Clerk Rob Rafferty, Mayor 137 138 CITY COUNCIL AGENDA ITEM 1D STAFF ORIGINATOR: Lisa Hogstad-Osterhues, Deputy City Clerk MEETING DATE: May 10, 2021 TOPIC Consider Resolution No. 21-37, Authorizing issuance of a Special Event Permit to Hammerheart Brewing Co. VOTE REQUIRED: 3/5 INTRODUCTION City Code Chapter 615 are the City’s regulations regarding special events. The purpose of these regulations is to protect the health, safety and welfare of citizens by regulating time, place and manner of conduct by establishing permit requirements. The City charges a fee of $50 for a special event permit. BACKGROUND The City has received an application from Hammerheart Brewing Co. to hold a special event on their property Fridays, Saturdays, Sundays and occasionally other days of the week from 1:30 p.m. to 9:30 p.m. The special event permit will allow food truck vendors in their parking lot, serving their customers. The Public Safety Department has reviewed the application and have signed off on the permit to allow food vendors. Since food service is involved, a condition is being attached to the permit requiring food vendors to receive a food license from the Anoka County Environmental Services and to provide their licensing information to Hammerheart. RECOMMENDATION Hammerheart’s application for a special event permit meets the requirements of the city code and the food trucks have not been found to present any safety concerns. Therefore, staff recommends that the council approve Resolution No. 21-37, Authorizing issuance of a Special Event Permit. Final approval is contingent upon final review and sign off by city staff. ATTACHMENTS Resolution No. 21-37. CITY OF LINO LAKES RESOLUTION NO. 21-37 APPROVING A SPECIAL EVENT PERMIT FOR HAMMERHEART BREWING CO. WHEREAS, Nathaniel Chapman has submitted an application for a special event permit; and WHEREAS, Hammerheart wishes to allow food truck vendors at their business; and WHEREAS, a food truck vendor would be present Friday, Saturday, Sunday and occasional other days of the week from the hours of 1:30 p.m. and 9:30 p.m.; and WHEREAS, Hammerheart has submitted a plot plan of where a food truck will be located on their property; and WHEREAS, food truck vendors are required to contact the Anoka County Environmental Services at 763-324-4260 for permission to operate in the City. WHEREAS, food truck vendors are required to provide their state licensing information as well as Anoka County Environmental Services licensing to Hammerheart. WHEREAS, the Public Safety Department requires food vendor to be at least 20 feet from the structure; WHEREAS, city staff has reviewed the special event plans and have determined that they meet the requirements of the City’s ordinances; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota: That the City Council hereby authorizes the issuance of a Special Event Permit to Hammerheart Brewing Co. to be held Fridays, Saturdays, Sundays and occasional other days of the week. Adopted by the Council of the City of Lino Lakes this 10th day of May, 2021. The motion for the adoption of the foregoing resolution was introduced by Council Member _____________and was duly seconded by Council Member _____________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _____________________ Rob Rafferty, Mayor ATTEST: ___________________________ Julianne Bartell, City Clerk CITY COUNCIL AGENDA ITEM 1E STAFF ORIGINATOR: Lisa Hogstad-Osterhues, Deputy Clerk MEETING DATE: May 10, 2021 TOPIC: Consider Approving Application for an Exempt Permit for Lawful Gambling Conducted by St. Joseph of the Lakes Catholic Church VOTE REQUIRED: 3/5 Vote INTRODUCTION St. Joseph of the Lakes Catholic Church has applied for an exempt permit to conduct a raffle on Saturday, August 7th and 8th, 2021. BACKGROUND Non-profit organizations are allowed, under the State Gambling Statutes, to apply for an exemption from a gambling license if they conduct five (5) or fewer gambling occasions per calendar year. St. Joseph of the Lakes Catholic Church conducts five (5) or less per calendar year and, therefore, remains exempt from requiring a gambling license. Minnesota Statutes, Chapter 349, Section 349.166, Subd. 2 does, however, require that the non- profit organizations applying for the exemption permit, notify the city that they are applying for the exemption and receive local approval. The application and background materials are on file in City Clerk’s office. RECOMMENDATION Adopt a motion approving the application for exemption with no waiting period. CITY COUNCIL AGENDA ITEM 1F STAFF ORIGINATOR: Hannah Lynch , Finance Director MEETING DATE: May 10, 2021 TOPIC: Acceptance of the Water and Sewer Utility Rate Study VOTE REQUIRED: 3/5 BACKGROUND On February 22, 2021, the City Council approved Baker Tilly to complete a Utility Rate Study. The study includes the Water Operating, Sewer Operating, and Area and Unit Charge funds. Over the last two months Baker Tilly has worked with City staff to evaluate past performance of the funds and to recommend rates to cover operations & maintenance, debt service, and capital improvements. Rate recommendations were given for the next five years while the fund financial projections are shown over the next ten years. Actual performance of each fund will be evaluated on an annual basis during the budget process. On May 3, 2021, Patty Kettles, Director at Baker Tilly, presented the study at the City Council Work Session. Rate recommendations were given both with and without the consideration of constructing a water treatment plant in 2023. Council has time to consider these recommendations in advance of setting 2022 utility rates. RECOMMENDATION Consider Acceptance of the Water and Sewer Utility Rate Study. ATTACHMENTS Water and Sewer Utility Rate Study Lino Lakes, Minnesota Water and Sewer Rate Study April 28, 2021 Baker Tilly Municipal Advisors, LLC 380 Jackson Street, Suite 300 St. Paul, MN 55101 +1 (651) 223 3000 +1 (651) 223 3046 bakertilly.com April 28, 2021 Ms. Sarah Cotton, City Administrator Ms. Hannah Lynch, Finance Director City of Lino Lakes 600 Town Center Parkway Lino Lakes, MN 55014 Re: Water and Sewer Rate Study Dear Ms. Cotton & Ms. Lynch: Baker Tilly Incorporated was hired to perform a rate study for the City’s Water and Sewer Utilities. This Study includes a review of the past performance of the Utilities, determines the adequacy of revenues in each Utility, and provides rate recommendations which reflect recent cost experience as well as recommended cash reserve levels. We appreciate the opportunity to conduct this study for the City of Lino Lakes. Respectfully submitted, Patty Kettles Patty Kettles, Director Consultant Contents Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and wholly-owned subsidiary of Baker Tilly US, LLP, an accounting firm. Baker Tilly US, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. 1. INTRODUCTION ................................................................. 1 2. BACKGROUND .................................................................. 2 WATER FUND ............................................................................ 3 SEWER FUND............................................................................ 5 AREA AND UNIT CHARGE FUND ............................................. 7 EQUITY OF CURRENT RATES ................................................. 9 CASH RESERVES ................................................................... 10 ASSUMPTIONS........................................................................ 10 3. WATER UTILITY .............................................................. 14 SCENARIO 1 ............................................................................ 15 SCENARIO 2 ............................................................................ 17 SCENARIO 3 ............................................................................ 19 4. SEWER UTILITY ............................................................... 22 SCENARIO 1 ............................................................................ 22 SCENARIO 2 ............................................................................ 24 5. AREA & UNIT CHARGE FUND........................................ 27 6. SAMPLE QUARTERLY BILLS......................................... 31 7. COMPARABLE COMMUNITIES ...................................... 33 8. CONCLUSIONS AND RECOMMENDATIONS ................ 34 City of Lino Lakes, Minnesota P a g e | 1 1. Introduction 1. Introduction Baker Tilly was hired to review and analyze the City of Lino Lakes’s Water and Sewer Funds to determine the appropriate rate structures and other revenue sources needed for operations and the financing of capital improvements. The rate structure and other revenue in each Fund must provide sufficient revenue to cover anticipated operating and maintenance expenses, debt service including principal and interest, capital improvements and replacements, and to maintain adequate cash reserves. The total revenue collected should reflect not only recent cost experience but should recognize anticipated future costs during the period for which rates are being established. This report includes a review of the City’s Water Fund, Sewer Fund and Area and Unit Charge Fund, including their historical operating revenues and expenses, 2020 estimated revenues and expenses, and the 2021 budget for each fund. Based on this review, a determination of the rates and charges necessary to provide revenues sufficient to cover the projected cost of operation, maintain the capital infrastructure, and to provide adequate cash reserves were developed. The analysis also reviews the potential impacts of a proposed new water treatment plant. City of Lino Lakes, Minnesota P a g e | 2 2. Background 2. Background Lino Lakes, located in Anoka County, approximately 20 miles north of St. Paul, provides approximately 5,050 residential, commercial, industrial and institutional customers with water and sewer services. The City encompasses an area of approximately 33 square miles with a current population estimate of approximately 22,119. Currently, the City obtains its water supply from six raw water wells. Water storage for consistent pressure and fire protection occurs in three elevated storage towers. Wastewater treatment is provided by the Metropolitan Council Environmental Services. Collection is accomplished through a series of trunk lines that empty into one of fifteen lift stations operated by the City. City of Lino Lakes, Minnesota P a g e | 3 2. Background - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 Actual Actual Budget Budget 2018 2019 2020 2021 Water Fund Historical Operating Revenues Operating Expenses Water Fund Historical Information A review of the City’s most recent financial reports for the Water Fund shows operating expenses exceeded operating revenues in each year, 2018 through budgeted 2021. The Water Fund ending cash and investment balance, which was approximately $6.0 million in 2018, is projected to decrease to approximately $5.6 million at the end of 2021. Operating revenues and expenses and annual cash positions are shown in the charts below. - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 Actual Actual Budget Budget 2018 2019 2020 2021 Water Fund Cash & Investments Cash & Investments City of Lino Lakes, Minnesota P a g e | 4 2. Background 2018 2019 2020 2021 Operating Revenues Actual Actual Budget Budget Charges for Services 1,122,136 1,100,675 1,072,000 1,102,000 Hook-up Charges 40,030 31,510 36,500 36,500 Water Meter Sales 50,518 37,442 50,000 50,000 Other Revenue 4,905 2,953 7,500 2,500 Total Operating Revenue 1,217,589 1,172,580 1,166,000 1,191,000 Operating Expenses Personal Services 270,608 297,355 322,273 312,737 Materials and Supplies 205,025 174,870 219,500 240,000 Contractual Services 140,187 128,800 146,552 172,347 Utilities 105,453 97,224 110,000 110,000 Other 13,911 18,968 21,460 28,834 Depreciation 597,871 603,559 616,893 704,888 Total Operating Expenses 1,333,055 1,320,776 1,436,678 1,568,806 Operating Income (Loss)(115,466) (148,196) (270,678) (377,806) Non Operating Revenues (Expenses) Investment Earnings 82,783 210,056 40,000 50,000 Other (2,035) Total Non Operating Revenues (Expenses)82,783 208,021 40,000 50,000 Net Income (Loss) Before Transfers (32,683) 59,825 (230,678) (327,806) Operating Transfers Transfers In Transfers (Out)- (226,722) Total Operating Transfers - (226,722) - - Net Income (Loss)(32,683) (166,897) (230,678) (327,806) Beginning Cash & Investments 5,477,346 6,022,044 6,171,792 5,882,719 Net Income (32,683) (166,897) (230,678) (327,806) Depreciation 597,871 603,559 616,893 704,888 Acquisition and Construction of Assets (11,479) (350,042) (675,288) (682,000) Proceeds from New Long-Term Debt - Payments on Long-Term Debt - - Adjustment to Accruals (9,011) 63,128 - Ending Cash Balance 6,022,044 6,171,792 5,882,719 5,577,801 The operating statement for the past several years and the 2021 budget is shown below. City of Lino Lakes, Minnesota P a g e | 5 2. Background - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 Actual Actual Budget Budget 2018 2019 2020 2021 Sewer Fund Cash & Investments Cash & Investments Sewer Fund Historical Information As was the case in the Water Fund, the Sewer Fund also shows operating expenses exceeded operating revenues in each year, 2018 through budgeted 2021. This is due primarily to depreciation expenses. Cash is projected to increase from approximately $9.0 million in 2018 to $9.6 million at the end of 2021. Historical revenues and expenses and ending cash and investment balances are shown in the charts below. - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 Actual Actual Budget Budget 2018 2019 2020 2021 Sewer Fund Historical Operating Revenues Operating Expenses City of Lino Lakes, Minnesota P a g e | 6 2. Background 2018 2019 2020 2021 Operating Revenues Actual Actual Budget Budget Charges for Services 1,721,958 1,745,709 1,691,000 1,726,000 Hook-up Charges 31,754 25,434 29,000 29,000 Other Revenue Total Operating Revenue 1,753,712 1,771,143 1,720,000 1,755,000 Operating Expenses Personal Services 275,907 305,645 328,884 319,608 Materials and Supplies 35,821 30,492 59,500 80,099 Contractual Services 132,250 122,540 150,552 151,347 MCES Sewer Charges 949,776 977,612 1,035,391 988,488 Utilities 45,775 44,927 46,800 46,800 Other 29,086 25,679 29,460 30,356 Depreciation 495,856 495,816 512,771 547,563 Total Operating Expenses 1,964,471 2,002,711 2,163,358 2,164,261 Operating Income (Loss)(210,759) (231,568) (443,358) (409,261) Non Operating Revenues (Expenses) Investment Earnings 130,651 313,498 70,000 80,000 Other Total Non Operating Revenues (Expenses)130,651 313,498 70,000 80,000 Net Income (Loss) Before Transfers (80,108) 81,930 (373,358) (329,261) Operating Transfers Transfers In Transfers (Out)(242,145) Total Operating Transfers (242,145) - - - Net Income (Loss)(322,253) 81,930 (373,358) (329,261) Beginning Cash & Investments 8,444,352 8,977,444 9,549,968 9,500,543 Net Income (322,253) 81,930 (373,358) (329,261) Depreciation 495,856 495,816 512,771 547,563 Acquisition and Construction of Assets (2,530) (188,838) (58,000) Proceeds from New Long-Term Debt 355,839 - Payments on Long-Term Debt - - Adjustment to Accruals 6,180 (5,222) - Ending Cash Balance 8,977,444 9,549,968 9,500,543 9,660,845 The operating statement for the past several years and the 2021 budget is shown below. City of Lino Lakes, Minnesota P a g e | 7 2. Background Area and Unit Charge Fund The Area and Unit Charge fund is a capital project fund where trunk and connection charges are deposited, as well as special assessments related to water and sewer development. The current $10/REU water fee also is deposited into this fund. The beginning cash position in 2021 was approximately $9.3 million. This capital fund is where a majority of the water and sewer capital improvements are financed from, including any outstanding debt related to these utilities. Our recommendation is that the REU fee be deposited into the Water Operating Fund and then transferred to the Area and Unit Charge Fund. The revenue stream from this fee will help improve operating income in the Water Operating fund. City of Lino Lakes, Minnesota P a g e | 8 2. Background Current Quarterly Rates Water Rates Water Hook-up/Connection Fee Meter Size (Inches) Amount All $250 Water Trunk Charge and Availability Charge Amount Trunk $2,341 / Unit WAC $1,473 / SAC Unit Residential Rates Rate per 1,000 Gallons Flat Fee of $10 per Residential Equivalent Unit (REU) $10.00 0 - 20,000 gallons $1.87 20,001 – 40,000 gallons $2.08 40,001 – 80,000 gallons $2.60 80,001 – 120,000 gallons $3.12 Over 120,000 gallons $3.64 Non-Residential Rates Rate per 1,000 Gallons Flat Fee of $10 per Residential Equivalent Unit (REU) $10.00 0 - 20,000 gallons $1.87 20,001 – 40,000 gallons $2.08 Over 40,000 gallons $2.35 Non-Residential Irrigation Rates Rate per 1,000 Gallons 0 - 20,000 gallons $1.87 20,001 – 40,000 gallons $2.08 Over 40,000 gallons $2.35 City of Lino Lakes, Minnesota P a g e | 9 2. Background Residential Non-Residential Irrigation Totals Total Consumption (gal)440,164,000 74,340,000 32,273,000 546,777,000 Revenues Flat 200,138.22$ 67,614.08$ 920.00$ 268,672.30$ Metered 909,643.54$ 181,053.92$ 84,684.36$ 1,175,381.82$ Total Revenues 1,109,781.76$ 248,668.00$ 85,604.36$ 1,444,054.12$ % of total consumption 81%14%6% % of total revenues 77%17%6% Difference 4%-4%0% Sewer Rates Sewer Hook-up/Connection Fee Meter Size (Inches) Amount All $200 Sewer Trunk Charge and Availability Charge Amount Trunk $1,630 / Unit SAC $1,525 / SAC Unit Equity of Current Rates One measure of reviewing the equity of your current rate structure is to review the total water consumption of each rate-paying class compared to the total revenues collected from each class. As noted in the table below, residential water consumption in 2020 was 81% of total system use and revenues collected were 77%. Non-residential consumption was 14% of total system use and revenues collected were 17%. Irrigation use and revenues collected were both 6% of the total system. We typically advise that any difference in the 3-7% range is acceptable and indicates equity in rates. Therefore, the 4% difference for each residential and non-residential is minimal and a good indication of equity in your current rate structure. Rate/REU Rate per 1,000 Gallons Up to 10,000 gallons $55.70 Over 10,000 gallons $1.07 Sewer Customer Only $65.70 City of Lino Lakes, Minnesota P a g e | 10 2. Background Cash Reserves Baker Tilly’s clients often ask about the amount of cash that should be available in their Utility funds. Utility funds need sufficient cash to pay current expenses, together with principal and interest on outstanding bonds. This would typically require each Utility fund to have a minimum of three months of anticipated operating expenses and one year’s total debt service in cash at the end of each year. However, this does not provide any level of cash reserves for unforeseen expenses, emergencies, or to cover any shortfalls in the budget. The amount of cash reserves that each fund should have is dependent on several factors, including: • Reserves that are legally required • Variability of the annual revenue stream • Variability in annual expenses • Variability in rainfall • Age and condition of fixed assets • Anticipated future capital needs − Capital improvement plan − Asset renewal and replacement − Regulatory compliance • Replacement reserve • Tolerance for risk • Number of relatively large customers Unfortunately, there are no prescribed formulas, and the amount of reserves varies considerably between utilities. We recommend the reserve policy for the studied funds be established at 25% of operating expenses and one year of renewal and replacement. Assumptions The City provided Baker Tilly with a variety of material including: • Water and Sewer 2020 and 2021 budgets • 2-3 new utility FTEs during the planning period • Projected depreciation for each utility • Verification of outstanding loan amortization schedules • Current utility rates • Current capital improvement plan for each utility • Detailed water consumption data by quarter for 2019 and 2020 • Asset information for each utility • Water Treatment Plant Feasibility Study, dated June 29, 2020 • Sample bills • Utility Connection Fees Justification Report, dated September 11, 2017 • 165 new connections to each system/year City of Lino Lakes, Minnesota P a g e | 11 2. Background Year Project Dept.Totals 2021 Sanitary Sewer Lining Project Sewer 58,000 2021 Woodridge Lane/Hodgson LS 15 and Watermain Loop Sewer 1,280,000 2022 East Shadow Sanitary Replacement Sewer 220,000 2022 Ford F250 (With New Hire)Sewer 33,500 2022 Ford F450 Utilities Truck Sewer 2,750 2022 Toro Timecutter Sewer 2,750 2023 Otter Lake Road Extension PH 2 Trunk Sewer NE Area SD 5A Sewer 667,500 2023 Sanitary Sewer Lining Project Sewer 75,000 2023 Upgrade LS No. 10 (Century Farm North; SD 2I)Sewer 73,500 2024 Caterpillar 3116 Towable Generator Sewer 30,000 2024 Ferris Mower Sewer 30,000 2024 Ford F250 4x4 Reg Cab SS SRW Sewer 31,000 2024 Lift Station & Force Main 3H ( West of 20th Avenue)Sewer 184,000 2024 Sanitary Sewer Lining Project Sewer 75,000 2024 Vac/Jetter Combo Truck Sewer 550,000 2025 Ford F250 SuperCab Sewer 31,500 2025 Gravity Sewer 2I (North of Century Farms)Sewer 525,000 2025 Maple Street LS and Forcemain SD 2K Sewer 300,000 2025 Sanitary Sewer Lining Project Sewer 75,000 2026 Ford F250 (With New Hire)Sewer 34,500 2026 Generator Sewer 30,000 2026 Sanitary Sewer Lining Project Sewer 75,000 2027 Sanitary Sewer Lining Project Sewer 75,000 2027 Street Reconstruction Program Sewer 350,000 2027 West Side Relief Sewer SD 2E, 2F, 2I, 2J Sewer 3,360,000 2028 Ford F250 CrewCab Sewer 32,000 2028 Generator Sewer 30,000 2028 Generator Sewer 40,000 2028 Generator Sewer 30,000 2028 Sanitary Sewer Lining Project Sewer 75,000 2029 Generator Sewer 35,000 2029 Generator Sewer 25,000 2029 GMC Sierra 2500 Crew Cab Sewer 33,000 2029 Sanitary Sewer Lining Project Sewer 75,000 2030 Ford F250 Sewer 65,000 2030 Generator Sewer 35,000 2030 Sanitary Sewer Lining Project Sewer 75,000 2030 Street Reconstruction Program Sewer 350,000 2031 Ford F250 Sewer 32,500 2031 Replace Lift Station 4 and Force Main 2F - Sunrise Park Sewer 840,000 2031 Sanitary Sewer Lining Project Sewer 75,000 2031 Upgrade Lift Station L53 & Force Main 1A Sewer 210,000 2022 Upgrade LS No. 8 Sewer 73,500 TOTALS 10,300,000 Capital Improvement Plans The City of Lino Lakes capital improvement plan to develop, replace and purchase items over the planning period totals between approximately $10.1-$31.1 million for the Water Utility, depending upon if the new Water Treatment Plant project moves forward and approximately $10.3 million for the Sewer Utility. Listed below are the projected capital improvements for each fund: City of Lino Lakes, Minnesota P a g e | 12 2. Background Year Project Dept.Totals 2021 Technology Upgrades Water 50,000 2021 Street Rehabilitation Program Water 107,000 2021 Birch Street Recon - Ware to Deerwood LN Water 525,000 2022 Ford F450 Utilities Truck Water 2,750 2022 Toro Timecutter Water 2,750 2022 Ford F250 (With New Hire)Water 33,500 2022 Technology Upgrades Water 50,000 2022 Street Rehabilitation Program Water 120,000 2022 WTP Trunk Water Upgrade (PH2) Blackduck Water 180,000 2022 East Shadow Sanitary Replacement Water 240,000 2022 Water Tower No. 2 Refurbishment Water 1,300,000 2022 Well No. 7 with Pumphouse Water 1,100,000 2023 Technology Upgrades Water 50,000 2023 Street Rehabilitation Program Water 120,000 2023 Lake Drive Trunk Wtr (Park Ct. to Forsham Lake Dr)Water 170,000 2023 Trunk SWR Century Farm North SD 2I Water 250,000 2023 Water Treatment Plant No. 1, includes raw wm well 1,3, 5 and 6 Water 21,000,000 2024 Caterpillar 3116 Towable Generator Water 30,000 2024 Ferris Mower Water 30,000 2024 Ford F250 4x4 Reg Cab SS SRW Water 31,000 2024 Technology Upgrades Water 50,000 2024 New Vehicle for WTP employee Water 60,000 2024 Street Rehabilitation Program Water 130,000 2024 Well No. 3 Pumphouse Revisions Water 350,000 2024 Lake Drive Trunk Wtr PH 3- (2nd Ave- Ivy Ct) Water 627,000 2025 Ford F250 SuperCab Water 31,500 2025 Technology Upgrades Water 50,000 2025 Street Rehabilitation Program Water 130,000 2026 Ford F250 (With New Hire)Water 34,500 2026 Technology Upgrades Water 50,000 2026 Street Rehabilitation Program Water 130,000 2026 Well Pumphouse No. 4 Upgrade Water 300,000 2026 Well No. 7 Raw Waterlin to WTF Water 300,000 2027 Technology Upgrades Water 50,000 2027 Street Rehabilitation Program Water 130,000 2027 Street Reconstruction Program Water 350,000 2028 Ford F250 CrewCab Water 32,000 2028 Technology Upgrades Water 50,000 2028 Well 5 Roof and Mechanical Water 100,000 2028 Street Rehabilitation Program Water 130,000 2029 GMC Sierra 2500 Crew Cab Water 33,000 2029 Technology Upgrades Water 50,000 2029 Street Rehabilitation Program Water 130,000 2030 Technology Upgrades Water 50,000 2030 Ford F250 Water 65,000 2030 Street Rehabilitation Program Water 130,000 2030 Street Reconstruction Program Water 350,000 2030 WTF Trunk Water Upgrade PH3 Blackduck Water 1,646,347 2031 Ford F250 Water 32,500 2031 Technology Upgrades Water 50,000 2031 Street Rehabilitation Program Water 130,000 TOTALS 31,143,847 City of Lino Lakes, Minnesota P a g e | 13 2. Background Water Utility Sanitary Sewer Utility Area and Unit Charge Fund Area and Unit Charge Bonds Totals 2021 682,000 58,000 1,280,000 - 2,020,000 2022 1,929,000 259,000 1,173,500 - 3,361,500 2023 170,000 148,500 420,000 21,667,500 22,406,000 2024 681,000 716,000 811,000 - 2,208,000 2025 211,500 106,500 825,000 - 1,143,000 2026 514,500 139,500 300,000 - 954,000 2027 530,000 425,000 - 3,360,000 4,315,000 2028 312,000 207,000 - - 519,000 2029 213,000 168,000 - - 381,000 2030 595,000 525,000 - 1,646,347 2,766,347 2031 212,500 947,500 210,000 - 1,370,000 Total 6,050,500 3,700,000 5,019,500 26,673,847 41,443,847 The table below lists the projected funding sources for the projected capital expenditures provided by the City for each utility over the next ten years. The proposed water treatment plant is estimated at $21.0 million in 2023 with sewer projects making up the remaining $667,500. A review of the existing assets of each utility, their purchase date, purchase cost and probability of failure was also reviewed. In order to maintain the water and sewer systems, we estimate that approximately $1,000,000 annually would be needed to be spent on water and sewer infrastructure for renewal and replacement. City of Lino Lakes, Minnesota P a g e | 14 3. Water Utility 3. Water Utility Water Usage The historical water use patterns of customers were analyzed to gain an understanding of the consumption pattern over the course of a calendar year. This is important to understand and differentiate between essential and non-essential water use. Essential water use is typically defined as water used for things like drinking, food preparation, bathing, washing clothes and dishes, and flushing toilets. Essential water use can be best determined by winter water use because not-essential water uses such as watering lawns and washing cars are not taking place. The analysis found the following: • 99% of residential users used 40,000 gallons or less during the winter months, falling into the first two tiers of use. • Only approximately 1% of users, used more than 40,000 gallons, falling into the top three tiers. Therefore, our assumption was that water consumption over 40,000 gallons in the summer quarters is due primarily to residential irrigation. City of Lino Lakes, Minnesota P a g e | 15 3. Water Utility Financial projections with no rate increases To demonstrate the financial performance of the Water Utility at current rates, a financial projection with no rate increases was developed. There is however, increases in the fixed charge per REU (related to new WTP), but all fixed charges collected are projected to be transferred to the Area and Unit Charge Fund for repayment of debt service related to the new Plant. This financial projection shows the Water Fund would have a cash position in 2031 of approximately $1.4 million, down from $5.8 million. Recommended reserve levels would cease to be met by the end of the planning period with no rate increases. Scenario 1 The income statement shown on the following page shows the financial projections with no rate increases in volume charges. The projected increases in charges for services revenues are due to projected new customers. The figures highlighted red in 2022 and 2026 indicate an increase in personnel costs resulting from additional staff split 50/50 between the water and sewer operating funds. The figures in red in 2024 reflect additional staffing and operating costs due to the proposed water treatment plant. The projections include the projected capital improvements over the planning period. Tier 1 46% Tier 2 25% Tier 3 23% Tier 4 5% Tier 5 1% Residential Accounts by Tier summer average City of Lino Lakes, Minnesota P a g e | 16 3. Water Utility Projected Water Rate Adjustment Projected Change 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% 2022-2031 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Operating Revenues Charges for Services (volume)1,102,000 1,237,827 1,263,668 1,289,509 1,315,350 1,341,192 1,367,033 1,392,874 1,418,716 1,444,557 1,470,398 Hook-up Charges 36,500 41,250 41,250 41,250 41,250 41,250 41,250 41,250 41,250 41,250 41,250 Charges for Services (fixed/REU)281,080 287,680 441,420 601,760 768,700 785,200 801,700 818,200 834,700 851,200 867,700 Water Meter Sales 50,000 78,260 79,825 81,421 83,050 84,711 86,405 88,133 89,896 91,693 93,527 Other Revenue 5.00%2,500 2,625 2,756 2,894 3,039 3,191 3,350 3,518 3,694 3,878 4,072 Total Operating Revenue 1,472,080 1,647,641 1,828,919 2,016,834 2,211,389 2,255,543 2,299,738 2,343,975 2,388,255 2,432,579 2,476,948 Operating Expenses Personal Services 5.00%312,737 371,797 390,387 495,206 519,966 594,837 624,579 655,808 688,598 723,028 759,180 Materials and Supplies 5.00%240,000 252,000 264,600 277,830 291,722 306,308 321,623 337,704 354,589 372,319 390,935 Contractual Services 5.00%172,347 180,964 190,013 209,513 219,989 230,988 242,538 254,665 267,398 280,768 294,806 Utilities 1.50%110,000 111,650 113,325 162,725 165,165 167,643 170,158 172,710 175,301 177,930 180,599 Other 6.00%28,834 30,564 32,398 94,078 99,722 105,706 112,048 118,771 125,897 133,451 141,458 Existing Depreciation 704,888 765,965 778,965 778,965 778,965 778,965 778,965 778,965 778,965 775,801 772,066 New Depreciation - 17,640 100,409 536,209 582,627 593,727 625,161 639,761 654,249 665,516 720,265 Total Operating Expenses 1,568,806 1,730,580 1,870,097 2,554,526 2,658,157 2,778,174 2,875,071 2,958,383 3,044,998 3,128,813 3,259,309 Operating Income (Loss)(96,726) (82,939) (41,178) (537,692) (446,768) (522,631) (575,333) (614,408) (656,743) (696,234) (782,361) Non Operating Revenues (Expenses) Investment Earnings 1.00%50,000 55,778 41,176 43,855 39,241 38,980 34,873 30,193 27,236 24,796 18,033 Other - Total Non Operating Revenues (Expenses)50,000 55,778 41,176 43,855 39,241 38,980 34,873 30,193 27,236 24,796 18,033 Net Income (Loss) Before Transfers (46,726) (27,161) (2) (493,837) (407,527) (483,652) (540,460) (584,216) (629,508) (671,438) (764,329) Operating Transfers Transfers In - Transfers (Out)(281,080) (287,680) (441,420) (601,760) (768,700) (785,200) (801,700) (818,200) (834,700) (851,200) (867,700) Total Operating Transfers (281,080) (287,680) (441,420) (601,760) (768,700) (785,200) (801,700) (818,200) (834,700) (851,200) (867,700) Net Income (Loss)(327,806) (314,841) (441,422) (1,095,597) (1,176,227) (1,268,852) (1,342,160) (1,402,416) (1,464,208) (1,522,638) (1,632,029) Beginning Cash & Investments 5,882,719 5,577,801 4,117,565 4,385,518 3,924,096 3,897,961 3,487,302 3,019,268 2,723,578 2,479,585 1,803,263 Net Income (327,806) (314,841) (441,422) (1,095,597) (1,176,227) (1,268,852) (1,342,160) (1,402,416) (1,464,208) (1,522,638) (1,632,029) Depreciation 704,888 783,605 879,375 1,315,175 1,361,592 1,372,692 1,404,126 1,418,726 1,433,215 1,441,317 1,492,331 Acquisition and Construction of Assets (682,000) (1,929,000) (170,000) (681,000) (211,500) (514,500) (530,000) (312,000) (213,000) (595,000) (212,500) Ending Cash Balance 5,577,801 4,117,565 4,385,518 3,924,096 3,897,961 3,487,302 3,019,268 2,723,578 2,479,585 1,803,263 1,451,066 Minimum Cash Balance For ongoing operations 392,201 432,645 467,524 638,632 664,539 694,544 718,768 739,596 761,250 782,203 814,827 For renewal and replacement 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Minimum Cash Balance Required 1,392,201 1,432,645 1,467,524 1,638,632 1,664,539 1,694,544 1,718,768 1,739,596 1,761,250 1,782,203 1,814,827 Amount Over (Under) Minimum 4,185,600 2,684,920 2,917,993 2,285,464 2,233,422 1,792,758 1,300,500 983,982 718,335 21,060 (363,761) City of Lino Lakes, Minnesota P a g e | 17 3. Water Utility Financial projections with rate increases A financial projection was developed with rate increases in volume charges that provide for the Water Utility Operating Fund to have sufficient revenues to pay for operating and maintenance expenses, to fund its planned improvements, and to maint ain adequate levels of cash reserves. Scenario 2 also assumes a new water treatment plant. Scenario 2 The financial projection for the Water Operating Fund with recommended rate increases is shown on the following page. The recommended rate increases are projected to minimize operating losses and to continue funding adequate cash reserve levels with ending cash projected to decline slightly from approximately $5.5 million at the end of 2021 to approximately $5.0 million in 2031. The projections include the City’s planned capital improvement projects within the next 10 years and projected growth in the number of customers. City of Lino Lakes, Minnesota P a g e | 18 3. Water Utility Projected Water Rate Adjustment Projected Change 4.00%4.00%4.00%4.00%4.00%4.00%4.00%4.00%4.00%4.00% 2022-2031 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Operating Revenues Charges for Services (volume)1,102,000 1,287,340 1,366,783 1,450,523 1,538,774 1,631,765 1,729,733 1,832,928 1,941,610 2,056,055 2,176,548 Hook-up Charges 36,500 41,250 41,250 41,250 41,250 41,250 41,250 41,250 41,250 41,250 41,250 Charges for Services (fixed/REU)281,080 287,680 441,420 601,760 768,700 785,200 801,700 818,200 834,700 851,200 867,700 Water Meter Sales 50,000 78,260 79,825 81,421 83,050 84,711 86,405 88,133 89,896 91,693 93,527 Other Revenue 5.00%2,500 2,625 2,756 2,894 3,039 3,191 3,350 3,518 3,694 3,878 4,072 Total Operating Revenue 1,472,080 1,697,154 1,932,034 2,177,848 2,434,812 2,546,116 2,662,438 2,784,028 2,911,149 3,044,077 3,183,098 Operating Expenses Personal Services 5.00%312,737 371,797 390,387 495,206 519,966 594,837 624,579 655,808 688,598 723,028 759,180 Materials and Supplies 5.00%240,000 252,000 264,600 277,830 291,722 306,308 321,623 337,704 354,589 372,319 390,935 Contractual Services 5.00%172,347 180,964 190,013 209,513 219,989 230,988 242,538 254,665 267,398 280,768 294,806 Utilities 1.50%110,000 111,650 113,325 162,725 165,165 167,643 170,158 172,710 175,301 177,930 180,599 Other 6.00%28,834 30,564 32,398 94,078 99,722 105,706 112,048 118,771 125,897 133,451 141,458 Existing Depreciation 704,888 765,965 778,965 778,965 778,965 778,965 778,965 778,965 778,965 775,801 772,066 New Depreciation - 17,640 100,409 536,209 582,627 593,727 625,161 639,761 654,249 665,516 720,265 Total Operating Expenses 1,568,806 1,730,580 1,870,097 2,554,526 2,658,157 2,778,174 2,875,071 2,958,383 3,044,998 3,128,813 3,259,309 Operating Income (Loss)(96,726) (33,426) 61,938 (376,679) (223,345) (232,058) (212,633) (174,355) (133,849) (84,736) (76,211) Non Operating Revenues (Expenses) Investment Earnings 1.00%50,000 55,778 41,671 45,386 42,398 44,402 43,255 42,286 43,851 46,806 46,378 Other - Total Non Operating Revenues (Expenses)50,000 55,778 41,671 45,386 42,398 44,402 43,255 42,286 43,851 46,806 46,378 Net Income (Loss) Before Transfers (46,726) 22,352 103,608 (331,292) (180,947) (187,656) (169,378) (132,069) (89,998) (37,931) (29,833) Operating Transfers Transfers In - Transfers (Out)(281,080) (287,680) (441,420) (601,760) (768,700) (785,200) (801,700) (818,200) (834,700) (851,200) (867,700) Total Operating Transfers (281,080) (287,680) (441,420) (601,760) (768,700) (785,200) (801,700) (818,200) (834,700) (851,200) (867,700) Net Income (Loss)(327,806) (265,328) (337,812) (933,052) (949,647) (972,856) (971,078) (950,269) (924,698) (889,131) (897,533) Beginning Cash & Investments 5,882,719 5,577,801 4,167,078 4,538,641 4,239,764 4,440,209 4,325,546 4,228,594 4,385,050 4,680,567 4,637,753 Net Income (327,806) (265,328) (337,812) (933,052) (949,647) (972,856) (971,078) (950,269) (924,698) (889,131) (897,533) Depreciation 704,888 783,605 879,375 1,315,175 1,361,592 1,372,692 1,404,126 1,418,726 1,433,215 1,441,317 1,492,331 Acquisition and Construction of Assets (682,000) (1,929,000) (170,000) (681,000) (211,500) (514,500) (530,000) (312,000) (213,000) (595,000) (212,500) Ending Cash Balance 5,577,801 4,167,078 4,538,641 4,239,764 4,440,209 4,325,546 4,228,594 4,385,050 4,680,567 4,637,753 5,020,051 Minimum Cash Balance For ongoing operations 392,201 432,645 467,524 638,632 664,539 694,544 718,768 739,596 761,250 782,203 814,827 For renewal and replacement 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Minimum Cash Balance Required 1,392,201 1,432,645 1,467,524 1,638,632 1,664,539 1,694,544 1,718,768 1,739,596 1,761,250 1,782,203 1,814,827 Amount Over (Under) Minimum 4,185,600 2,734,433 3,071,117 2,601,132 2,775,670 2,631,002 2,509,826 2,645,454 2,919,317 2,855,550 3,205,223 City of Lino Lakes, Minnesota P a g e | 19 3. Water Utility Scenario 3 The financial projection for the Water Fund without a new water treatment plant but with the other planned capital improvements is shown on the following page. As with Scenario 2, the recommended rate increases include the impact of projected new customers and are projected to minimize operating losses and to continue funding adequate cash reserve levels. Ending cash projected to decline slightly from approximately $5.5 million at the end of 2021 to approximately $5.0 million in 2031. In this scenario, it is assumed that the City would add one new full-time-equivalent employee (F.T.E.) in 2022 (splitting the cost 50/50 between water and sewer) and one in 2026. However, there would not be an additional F.T.E. assumed in 2024. City of Lino Lakes, Minnesota P a g e | 20 3. Water Utility Projected Water Rate Adjustment Projected Change 2.50%2.50%2.50%2.50%2.50%2.50%2.50%2.50%2.50%2.50% 2022-2031 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Operating Revenues Charges for Services (volume)1,102,000 1,268,772 1,327,641 1,388,660 1,451,901 1,517,435 1,585,339 1,655,690 1,728,567 1,804,054 1,882,234 Hook-up Charges 36,500 41,250 41,250 41,250 41,250 41,250 41,250 41,250 41,250 41,250 41,250 Charges for Services (fixed/REU)281,080 287,680 294,280 300,880 307,480 314,080 320,680 327,280 333,880 340,480 347,080 Water Meter Sales 50,000 78,260 79,825 81,421 83,050 84,711 86,405 88,133 89,896 91,693 93,527 Other Revenue 5.00%2,500 2,625 2,756 2,894 3,039 3,191 3,350 3,518 3,694 3,878 4,072 Total Operating Revenue 1,472,080 1,678,587 1,745,752 1,815,106 1,886,719 1,960,667 2,037,024 2,115,870 2,197,286 2,281,355 2,368,163 Operating Expenses Personal Services 5.00%312,737 371,797 390,387 409,906 430,401 500,794 525,834 552,125 579,732 608,718 639,154 Materials and Supplies 5.00%240,000 252,000 264,600 277,830 291,722 306,308 321,623 337,704 354,589 372,319 390,935 Contractual Services 5.00%172,347 180,964 190,013 199,513 209,489 219,963 230,961 242,510 254,635 267,367 280,735 Utilities 1.50%110,000 111,650 113,325 115,025 116,750 118,501 120,279 122,083 123,914 125,773 127,659 Other 6.00%28,834 30,564 32,398 34,342 36,402 38,586 40,902 43,356 45,957 48,714 51,637 Existing Depreciation 704,888 765,965 778,965 778,965 778,965 778,965 778,965 778,965 778,965 775,801 772,066 New Depreciation - 17,640 100,409 116,209 162,627 173,727 205,161 219,761 234,249 245,516 300,265 Total Operating Expenses 1,568,806 1,730,580 1,870,097 1,931,790 2,026,356 2,136,845 2,223,724 2,296,503 2,372,042 2,444,208 2,562,452 Operating Income (Loss)(96,726) (51,994) (124,344) (116,685) (139,637) (176,178) (186,700) (180,633) (174,755) (162,853) (194,288) Non Operating Revenues (Expenses) Investment Earnings 1.00%50,000 55,778 41,485 44,807 43,222 46,484 46,428 46,360 48,611 52,013 51,763 Other - Total Non Operating Revenues (Expenses)50,000 55,778 41,485 44,807 43,222 46,484 46,428 46,360 48,611 52,013 51,763 Net Income (Loss) Before Transfers (46,726) 3,784 (82,859) (71,877) (96,416) (129,695) (140,272) (134,273) (126,144) (110,839) (142,525) Operating Transfers Transfers In - Transfers (Out)(281,080) (287,680) (294,280) (300,880) (307,480) (314,080) (320,680) (327,280) (333,880) (340,480) (347,080) Total Operating Transfers (281,080) (287,680) (294,280) (300,880) (307,480) (314,080) (320,680) (327,280) (333,880) (340,480) (347,080) Net Income (Loss)(327,806) (283,896) (377,139) (372,757) (403,896) (443,775) (460,952) (461,553) (460,024) (451,319) (489,605) Beginning Cash & Investments 5,882,719 5,577,801 4,148,511 4,480,746 4,322,163 4,648,360 4,642,778 4,635,952 4,861,124 5,201,315 5,176,312 Net Income (327,806) (283,896) (377,139) (372,757) (403,896) (443,775) (460,952) (461,553) (460,024) (451,319) (489,605) Depreciation 704,888 783,605 879,375 895,175 941,592 952,692 984,126 998,726 1,013,215 1,021,317 1,072,331 Acquisition and Construction of Assets (682,000) (1,929,000) (170,000) (681,000) (211,500) (514,500) (530,000) (312,000) (213,000) (595,000) (212,500) Ending Cash Balance 5,577,801 4,148,511 4,480,746 4,322,163 4,648,360 4,642,778 4,635,952 4,861,124 5,201,315 5,176,312 5,546,538 Minimum Cash Balance For ongoing operations 392,201 432,645 467,524 482,948 506,589 534,211 555,931 574,126 593,010 611,052 640,613 For renewal and replacement 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Minimum Cash Balance Required 1,392,201 1,432,645 1,467,524 1,482,948 1,506,589 1,534,211 1,555,931 1,574,126 1,593,010 1,611,052 1,640,613 Amount Over (Under) Minimum 4,185,600 2,715,866 3,013,222 2,839,216 3,141,771 3,108,567 3,080,021 3,286,999 3,608,305 3,565,261 3,905,925 City of Lino Lakes, Minnesota P a g e | 21 3. Water Utility 2021 2022 2023 2024 2025 2026 Residential 0 - 20,000 1.87$ 1.92$ 1.96$ 2.01$ 2.06$ 2.12$ 20,001 - 40,000 2.08$ 2.13$ 2.19$ 2.24$ 2.30$ 2.35$ 40,001 - 80,000 2.60$ 2.67$ 2.73$ 2.80$ 2.87$ 2.94$ 80,001 - 120,000 3.12$ 3.20$ 3.28$ 3.36$ 3.44$ 3.53$ 120,001 and up 3.64$ 3.73$ 3.82$ 3.92$ 4.02$ 4.12$ Fixed/REU 10.00$ 10.00$ 10.00$ 10.00$ 10.00$ 10.00$ Non-Residential 0 - 20,000 1.87$ 1.92$ 1.96$ 2.01$ 2.06$ 2.12$ 20,001 - 40,000 2.08$ 2.13$ 2.19$ 2.24$ 2.30$ 2.35$ 40,000 over 2.35$ 2.41$ 2.47$ 2.53$ 2.59$ 2.66$ Non-Residential Irrigation 0 - 40,000 2.60$ 2.67$ 2.73$ 2.80$ 2.87$ 2.94$ 40,001 - 80,000 3.12$ 3.20$ 3.28$ 3.36$ 3.44$ 3.53$ 80,001 and up 3.65$ 3.74$ 3.83$ 3.93$ 4.03$ 4.13$ 2021 2022 2023 2024 2025 2026 Residential 0 - 20,000 1.87$ 1.94$ 2.02$ 2.10$ 2.19$ 2.28$ 20,001 - 40,000 2.08$ 2.16$ 2.25$ 2.34$ 2.43$ 2.53$ 40,001 - 80,000 2.60$ 2.70$ 2.81$ 2.92$ 3.04$ 3.16$ 80,001 - 120,000 3.12$ 3.24$ 3.37$ 3.51$ 3.65$ 3.80$ 120,001 and up 3.64$ 3.79$ 3.94$ 4.09$ 4.26$ 4.43$ Fixed/REU 10.00$ 10.00$ 15.00$ 20.00$ 25.00$ 25.00$ Non-Residential 0 - 20,000 1.87$ 1.94$ 2.02$ 2.10$ 2.19$ 2.28$ 20,001 - 40,000 2.08$ 2.16$ 2.25$ 2.34$ 2.43$ 2.53$ 40,000 over 2.35$ 2.44$ 2.54$ 2.64$ 2.75$ 2.86$ Non-Residential Irrigation 0 - 40,000 2.60$ 2.70$ 2.81$ 2.92$ 3.04$ 3.16$ 40,001 - 80,000 3.12$ 3.24$ 3.37$ 3.51$ 3.65$ 3.80$ 80,001 and up 3.65$ 3.80$ 3.95$ 4.11$ 4.27$ 4.44$ Current and recommended water rates with and without the proposed water treatment plant for the next 5 years are shown below. Water rates – with a new Water Treatment Plant Water rates – without a new Water Treatment Plant 4 City of Lino Lakes, Minnesota P a g e | 22 4. Sewer Utility 4. Sewer Utility Financial projections with no rate increases The financial projections with no rate increases shows the Sewer Fund would not have a negative cash position within the next 10 years and would meet recommended reserves. However, there would be net losses in every year and cash is projected to decline from $9.6 million to $6.0 million. Scenario 1 The income statement shown on the following page shows the fund projections with no rate increases. The increases in charges for services revenues is from projected new customers. Capital improvements each year are included in the project ions. City of Lino Lakes, Minnesota P a g e | 23 4.Sewer Utility Projected Sewer Rate Adjustment Projected Change 0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00% 2022-2031 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Revenues Charges for Services 2.12%1,726,000 1,762,586 1,799,947 1,838,100 1,877,061 1,916,849 1,957,480 1,998,972 2,041,344 2,084,614 2,128,801 Hook-up Charges 0.00%29,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 Other Revenue 2.00%- - - - - - - - - - - Total Revenue 1,755,000 1,795,586 1,832,947 1,871,100 1,910,061 1,949,849 1,990,480 2,031,972 2,074,344 2,117,614 2,161,801 Operating Expenses Personal Services 5.00%319,608 379,011 397,962 417,860 438,753 509,563 535,041 561,793 589,883 619,377 650,346 Materials and Supplies 6.00%80,099 84,905 89,999 95,399 101,123 107,191 113,622 120,439 127,666 135,326 143,445 Contractual Services 4.50%151,347 158,158 165,275 172,712 180,484 188,606 197,093 205,962 215,231 224,916 235,037 MCES Sewer Charges 3.00%988,488 1,018,143 1,048,687 1,080,148 1,112,552 1,145,929 1,180,306 1,215,716 1,252,187 1,289,753 1,328,445 Utilities 1.00%46,800 47,268 47,741 48,218 48,700 49,187 49,679 50,176 50,678 51,184 51,696 Other 1.50%30,356 30,811 31,274 31,743 32,219 32,702 33,193 33,690 34,196 34,709 35,229 Existing Depreciation 547,563 547,563 560,563 560,563 560,563 557,283 556,570 556,041 556,041 552,877 551,460 New Depreciation 26,760 35,463 40,638 86,782 108,282 115,116 123,616 133,671 141,838 159,310 Total Operating Expenses 2,164,261 2,292,619 2,376,963 2,447,281 2,561,177 2,698,742 2,780,620 2,867,434 2,959,552 3,049,979 3,154,969 Operating Income (Loss)(409,261) (497,034) (544,017) (576,181) (651,115) (748,893) (790,140) (835,461) (885,208) (932,365) (993,168) Non Operating Revenues (Expenses) Investment Earnings 1.00%80,000 96,608 95,757 95,750 89,798 89,593 88,261 83,709 80,918 78,092 71,246 Other - Total Non Operating Revenues (Expenses)80,000 96,608 95,757 95,750 89,798 89,593 88,261 83,709 80,918 78,092 71,246 Net Income (Loss) Before Transfers (329,261) (400,425) (448,259) (480,431) (561,318) (659,300) (701,880) (751,753) (804,290) (854,273) (921,922) Operating Transfers Transfers In - Transfers (Out)- Total Operating Transfers - - - - - - - - - - - Net Income (Loss)(329,261) (400,425) (448,259) (480,431) (561,318) (659,300) (701,880) (751,753) (804,290) (854,273) (921,922) Beginning Cash & Investments 9,500,543 9,660,845 9,575,743 9,575,010 8,979,781 8,959,308 8,826,073 8,370,879 8,091,784 7,809,205 7,124,647 Net Income (329,261) (400,425) (448,259) (480,431) (561,318) (659,300) (701,880) (751,753) (804,290) (854,273) (921,922) Depreciation 547,563 574,323 596,026 601,201 647,346 665,565 671,686 679,657 689,712 694,714 710,770 Acquisition and Construction of Assets (58,000) (259,000) (148,500) (716,000) (106,500) (139,500) (425,000) (207,000) (168,000) (525,000) (947,500) Ending Cash Balance 9,660,845 9,575,743 9,575,010 8,979,781 8,959,308 8,826,073 8,370,879 8,091,784 7,809,205 7,124,647 5,965,995 Minimum Cash Balance For ongoing operations 573,155 594,241 611,820 640,294 674,686 695,155 716,858 739,888 762,495 788,742 For renewal and replacement 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Minimum Cash Balance Required 1,573,155 1,594,241 1,611,820 1,640,294 1,674,686 1,695,155 1,716,858 1,739,888 1,762,495 1,788,742 Amount Over (Under) Minimum 8,002,588 7,980,769 7,367,960 7,319,014 7,151,388 6,675,724 6,374,925 6,069,317 5,362,152 4,177,252 City of Lino Lakes, Minnesota P a g e | 24 4.Sewer Utility Financial projections with rate increases A financial projection with recommended rate increases was developed for the Sewer Fund. Similar to the Water Operating Fund, the rate increases are recommended because the fund is showing operating losses each year at the current rates due primarily to the depreciation expenses. The recommended increases are projected to result in stable operating losses. These stable operating losses are acceptable because of the strong cash position of this fund. Ending cash balance would decrease from approximately $9.6 million projected at the end of 2021 to approximately $9.0 million 2031. Scenario 2 The financial projection for the Sewer Fund with recommended rate increases is shown on the following page. The increases in revenues from charges for service include the growth in the number of customers projected each year. The projections incorporate the City’s planned capital improvements; however, they are fairly minimal, averaging approximately $335,000/year over the planning period. City of Lino Lakes, Minnesota P a g e | 25 4.Sewer Utility Projected Sewer Rate Adjustment Projected Change 2.50%2.50%2.50%2.50%2.50%2.50%2.50%2.50%2.50%2.50% 2022-2031 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Revenues Charges for Services 2.12%1,726,000 1,806,650 1,891,069 1,979,432 2,071,925 2,168,739 2,270,077 2,376,150 2,487,179 2,603,397 2,725,045 Hook-up Charges 0.00%29,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 33,000 Other Revenue 2.00%- - - - - - - - - - - Total Revenue 1,755,000 1,839,650 1,924,069 2,012,432 2,104,925 2,201,739 2,303,077 2,409,150 2,520,179 2,636,397 2,758,045 Operating Expenses Personal Services 5.00%319,608 379,011 397,962 417,860 438,753 509,563 535,041 561,793 589,883 619,377 650,346 Materials and Supplies 6.00%80,099 84,905 89,999 95,399 101,123 107,191 113,622 120,439 127,666 135,326 143,445 Contractual Services 4.50%151,347 158,158 165,275 172,712 180,484 188,606 197,093 205,962 215,231 224,916 235,037 MCES Sewer Charges 3.00%988,488 1,018,143 1,048,687 1,080,148 1,112,552 1,145,929 1,180,306 1,215,716 1,252,187 1,289,753 1,328,445 Utilities 1.00%46,800 47,268 47,741 48,218 48,700 49,187 49,679 50,176 50,678 51,184 51,696 Other 1.50%30,356 30,811 31,274 31,743 32,219 32,702 33,193 33,690 34,196 34,709 35,229 Existing Depreciation 547,563 547,563 560,563 560,563 560,563 557,283 556,570 556,041 556,041 552,877 551,460 New Depreciation 26,760 35,463 40,638 86,782 108,282 115,116 123,616 133,671 141,838 159,310 Total Operating Expenses 2,164,261 2,292,619 2,376,963 2,447,281 2,561,177 2,698,742 2,780,620 2,867,434 2,959,552 3,049,979 3,154,969 Operating Income (Loss)(409,261) (452,969) (452,894) (434,848) (456,252) (497,004) (477,544) (458,284) (439,373) (413,582) (396,924) Non Operating Revenues (Expenses) Investment Earnings 1.00%80,000 96,608 96,198 97,106 92,581 94,353 95,587 94,234 95,320 97,097 95,629 Other - Total Non Operating Revenues (Expenses)80,000 96,608 96,198 97,106 92,581 94,353 95,587 94,234 95,320 97,097 95,629 Net Income (Loss) Before Transfers (329,261) (356,361) (356,696) (337,742) (363,671) (402,651) (381,957) (364,050) (344,053) (316,485) (301,295) Operating Transfers Transfers In - Transfers (Out)- Total Operating Transfers - - - - - - - - - - - Net Income (Loss)(329,261) (356,361) (356,696) (337,742) (363,671) (402,651) (381,957) (364,050) (344,053) (316,485) (301,295) Beginning Cash & Investments 9,500,543 9,660,845 9,619,808 9,710,638 9,258,097 9,435,271 9,558,685 9,423,414 9,532,021 9,709,681 9,562,910 Net Income (329,261) (356,361) (356,696) (337,742) (363,671) (402,651) (381,957) (364,050) (344,053) (316,485) (301,295) Depreciation 547,563 574,323 596,026 601,201 647,346 665,565 671,686 679,657 689,712 694,714 710,770 Acquisition and Construction of Assets (58,000) (259,000) (148,500) (716,000) (106,500) (139,500) (425,000) (207,000) (168,000) (525,000) (947,500) Ending Cash Balance 9,660,845 9,619,808 9,710,638 9,258,097 9,435,271 9,558,685 9,423,414 9,532,021 9,709,681 9,562,910 9,024,885 Minimum Cash Balance For ongoing operations 573,155 594,241 611,820 640,294 674,686 695,155 716,858 739,888 762,495 788,742 For renewal and replacement 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Minimum Cash Balance Required 1,573,155 1,594,241 1,611,820 1,640,294 1,674,686 1,695,155 1,716,858 1,739,888 1,762,495 1,788,742 Amount Over (Under) Minimum 8,046,653 8,116,397 7,646,277 7,794,977 7,884,000 7,728,259 7,815,163 7,969,793 7,800,416 7,236,143 City of Lino Lakes, Minnesota P a g e | 26 4. Sewer Utility 2021 2022 2023 2024 2025 2026 Sewer Utility Rates 0 - 10,000 55.70$ 57.09$ 58.52$ 59.98$ 61.48$ 63.02$ > 10,000 1.07$ 1.10$ 1.12$ 1.15$ 1.18$ 1.21$ Current and recommended quarterly sewer rates for the next 5 years are shown below. Sewer rates are based on winter water consumption. Customers served by sewer only should also have 2.5% annual rate increases. City of Lino Lakes, Minnesota P a g e | 27 5. Area & Unit Charge Fund 5. Area & Unit Charge Fund Financial projections with proposed new water treatment plant As mentioned previously, the Area and Unit Charge fund is a capital project fund where trunk and connection charges are deposited, as well as special assessments related to water and sewer development. This capital fund is where a majority of the water and sewer capital improvements are financed from, including any outstanding debt related to the utilities. The flat fee charges based on REUs that had historically been deposited directly into this fund are projected to be deposited into the Water Utility Fund and then transferred into this fund. The following page shows the financial projections of the fund, assuming the water treatment plant is built, and recommended rates are adopted. Cash is projected to decline from approximately $9.3 million to $4.1 million in 2031. Cash in the operating funds may be available to assist this fund without warranting future rate increases. City of Lino Lakes, Minnesota P a g e | 28 5. Area & Unit Charge Fund Revenues 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Special Assessments - Existing 857,827 482,115 336,575 199,618 106,287 67,271 70,264 72,471 75,100 77,706 76,346 Special Assessments - New - 418,140 679,478 888,548 993,083 1,045,350 1,045,350 1,045,350 1,045,350 1,045,350 1,045,350 Trunk Charges & WAC SAC - Pd up front 55,752 55,752 55,752 55,752 55,752 55,752 55,752 55,752 55,752 55,752 55,752 Investment Earnings Miscellaneous Total Revenue 913,579 956,007 1,071,804 1,143,917 1,155,122 1,168,373 1,171,366 1,173,573 1,176,202 1,178,808 1,177,448 Operating Expenses Capital Outlay 1,280,000 1,173,500 22,087,500 811,000 825,000 300,000 3,360,000 - - 1,646,347 210,000 Total Operating Expenses 1,280,000 1,173,500 22,087,500 811,000 825,000 300,000 3,360,000 - - 1,646,347 210,000 Revenue Over (Under) Expenditures (366,421) (217,493) (21,015,696) 332,917 330,122 868,373 (2,188,634) 1,173,573 1,176,202 (467,539) 967,448 Other Financing Sources (Uses) Transfer in 281,080 287,680 441,420 601,760 768,700 785,200 801,700 818,200 834,700 851,200 867,700 Transfer out Bond Proceeds - - 21,667,500 - - - 3,360,000 - - 1,646,347 - Debt Service - existing (750,017) (688,056) (685,031) (686,281) (682,769) (678,681) (677,881) (527,706) (529,756) (491,381) (496,147) Debt Service - new - - - (1,456,396) (1,456,396) (1,456,396) (1,456,396) (1,727,772) (1,727,772) (1,727,772) (1,860,741) Total Non Operating Revenues (Expenses)(468,937) (400,376) 21,423,889 (1,540,918) (1,370,465) (1,349,878) 2,027,422 (1,437,278) (1,422,828) 278,394 (1,489,188) Net Increase (Decrease) in fund balance (835,359) (617,870) 408,193 (1,208,000) (1,040,343) (481,505) (161,212) (263,705) (246,626) (189,145) (521,740) Beginning Cash & Investments 9,324,188 8,488,829 7,870,960 8,279,153 7,071,152 6,030,809 5,549,305 5,388,093 5,124,388 4,877,762 4,688,617 Net Income (835,359) (617,870) 408,193 (1,208,000) (1,040,343) (481,505) (161,212) (263,705) (246,626) (189,145) (521,740) Ending Cash Balance 8,488,829 7,870,960 8,279,153 7,071,152 6,030,809 5,549,305 5,388,093 5,124,388 4,877,762 4,688,617 4,166,877 City of Lino Lakes, Minnesota P a g e | 29 5. Area & Unit Charge Fund Financial projections with no new water treatment plant The following page shows the financial projections of the Area and Unit fund, assuming the City does not build the new water treatment plant and recommended rates are adopted (2.5% annually). Cash is projected to increase from approximately $9.3 million to $11.6 million in 2031. City of Lino Lakes, Minnesota P a g e | 30 5. Area & Unit Charge Fund Revenues 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Special Assessments - Existing 857,827 482,115 336,575 199,618 106,287 67,271 70,264 72,471 75,100 77,706 76,346 Special Assessments - New - 418,140 679,478 888,548 993,083 1,045,350 1,045,350 1,045,350 1,045,350 1,045,350 1,045,350 Trunk Charges & WAC SAC - Pd up front 55,752 55,752 55,752 55,752 55,752 55,752 55,752 55,752 55,752 55,752 55,752 Investment Earnings Miscellaneous Total Revenue 913,579 956,007 1,071,804 1,143,917 1,155,122 1,168,373 1,171,366 1,173,573 1,176,202 1,178,808 1,177,448 Operating Expenses Capital Outlay 1,280,000 1,173,500 1,087,500 811,000 825,000 300,000 3,360,000 - - 1,646,347 210,000 Total Operating Expenses 1,280,000 1,173,500 1,087,500 811,000 825,000 300,000 3,360,000 - - 1,646,347 210,000 Revenue Over (Under) Expenditures (366,421) (217,493) (15,696) 332,917 330,122 868,373 (2,188,634) 1,173,573 1,176,202 (467,539) 967,448 Other Financing Sources (Uses) Transfer in 281,080 287,680 294,280 300,880 307,480 314,080 320,680 327,280 333,880 340,480 347,080 Transfer out Bond Proceeds - - 667,500 - - - 3,360,000 - - 1,646,347 - Debt Service - existing (750,017) (688,056) (685,031) (686,281) (682,769) (678,681) (677,881) (527,706) (529,756) (491,381) (496,147) Debt Service - new - - - (44,866) (44,866) (44,866) (44,866) (316,242) (316,242) (316,242) (449,211) Total Non Operating Revenues (Expenses)(468,937) (400,376) 276,749 (430,268) (420,155) (409,468) 2,957,932 (516,668) (512,118) 1,179,204 (598,278) Net Increase (Decrease) in fund balance (835,359) (617,870) 261,053 (97,350) (90,033) 458,905 769,298 656,905 664,084 711,665 369,170 Beginning Cash & Investments 9,324,188 8,488,829 7,870,960 8,132,013 8,034,662 7,944,629 8,403,534 9,172,832 9,829,737 10,493,821 11,205,486 Net Income (835,359) (617,870) 261,053 (97,350) (90,033) 458,905 769,298 656,905 664,084 711,665 369,170 Ending Cash Balance 8,488,829 7,870,960 8,132,013 8,034,662 7,944,629 8,403,534 9,172,832 9,829,737 10,493,821 11,205,486 11,574,656 City of Lino Lakes, Minnesota P a g e | 31 6. Sample Quarterly Bills WATER SAMPLE BILLS - WITH NEW WTP Current 2022 2023 2024 2025 Prison A 1695 1695 1695 1695 1695 consumption 3,978.25$ 4,136.98$ 4,307.06$ 4,483.74$ 4,667.29$ Centennial School District B 43 43 43 43 43 consumption 626.05$ 629.49$ 903.07$ 1,176.79$ 1,450.67$ Lino Lakes Elementary School C 60 60 60 60 60 consumption 591.00$ 596.24$ 831.69$ 1,067.36$ 1,303.25$ Single Family Residential - 1 D 44 44 44 44 44 consumption 99.40$ 102.98$ 111.70$ 120.56$ 129.59$ Single Family Residential - 2 E 93 93 93 93 93 consumption 233.56$ 242.50$ 256.80$ 271.47$ 286.53$ Progressive Engineering (IRRGTN)F 110 110 110 110 110 consumption 338.30$ 351.83$ 365.91$ 380.54$ 395.76$ Mountain Manufacturing G 24 24 24 24 24 consumption 65.72$ 67.55$ 79.45$ 91.43$ 103.49$ Contract Hardware (IRRIGTN)H 114 114 114 114 114 consumption 352.90$ 367.02$ 381.70$ 396.96$ 412.84$ Pomps Tire Service I 15 15 15 15 15 consumption 88.05$ 89.17$ 120.34$ 151.55$ 182.81$ Hampton Inn & Suites J 413 413 413 413 413 consumption 1,535.55$ 1,573.77$ 1,903.52$ 2,234.86$ 2,567.86$ SEWER SAMPLE BILLS Current 2022 2023 2024 2025 Centennial School District B consumption 3,213.24$ 3,293.57$ 3,375.91$ 3,460.31$ 3,546.82$ Lino Lakes Elementary School C consumption 2,721.63$ 2,789.67$ 2,859.41$ 2,930.90$ 3,004.17$ Single Family Residential - 1 D consumption 56.77$ 58.19$ 59.64$ 61.14$ 62.66$ Single Family Residential - 2 E consumption 57.84$ 59.29$ 60.77$ 62.29$ 63.84$ Mountain Manufacturing G consumption 126.38$ 129.54$ 132.78$ 136.10$ 139.50$ Pomps Tire Service I consumption 340.62$ 349.14$ 357.86$ 366.81$ 375.98$ Hampton Inn & Suites J consumption 3,969.97$ 4,069.22$ 4,170.95$ 4,275.22$ 4,382.10$ winter average winter average winter average winter average winter average winter average winter average 6. Sample Quarterly Bills The sample bills below assume a new water treatment plant. City of Lino Lakes, Minnesota P a g e | 32 6. Sample Quarterly Bills The following is a list of sample water bills without the water treatment plant. As above, the bills represent quarterly bills at current rates and proposed 2022 and 2025 quarterly bills assuming the same consumption levels. Sewer rate recommendations and average bills will remain the same as shown above. WATER SAMPLE BILLS - NO NEW WTP Current 2022 2023 2024 2025 Prison A 1695 1695 1695 1695 1695 consumption 3,978.25$ 4,077.46$ 4,179.14$ 4,283.37$ 4,390.21$ Centennial School District B 43 43 43 43 43 consumption 626.05$ 628.20$ 630.41$ 632.67$ 634.98$ Lino Lakes Elementary School C 60 60 60 60 60 consumption 591.00$ 594.28$ 597.63$ 601.07$ 604.60$ Single Family Residential - 1 D 44 44 44 44 44 consumption 99.40$ 101.64$ 103.93$ 106.27$ 108.68$ Single Family Residential - 2 E 93 93 93 93 93 consumption 233.56$ 239.15$ 244.88$ 250.75$ 256.77$ Progressive Engineering (IRRGTN)F 110 110 110 110 110 consumption 338.30$ 346.76$ 355.43$ 364.31$ 373.42$ Mountain Manufacturing G 24 24 24 24 24 consumption 65.72$ 66.86$ 68.03$ 69.24$ 70.47$ Contract Hardware (IRRIGTN)H 114 114 114 114 114 consumption 352.90$ 361.72$ 370.77$ 380.03$ 389.54$ Pomps Tire Service I 15 15 15 15 15 consumption 88.05$ 88.75$ 89.47$ 90.21$ 90.96$ Hampton Inn & Suites J 413 413 413 413 413 consumption 1,535.55$ 1,559.44$ 1,583.92$ 1,609.02$ 1,634.75$ 44 City of Lino Lakes, Minnesota P a g e | 33 7. Comparable Communities $68.75 $51.28 $47.40 $91.35 $34.70 $63.00 $73.60 $62.38 $57.11 $120.67 $105.93 $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 Lino Lakes - 2025 WTP Lino Lakes - 2025 NO WTP Lino Lakes - 2021 Shoreview Blaine Hugo Circle Pines Centerville Lexington Arden Hills Forest Lake Avg Residential Water Bill (20,000 gal/quarterly) $73.29 $73.29 $66.40 $99.65 $60.00 $81.35 $122.10 $85.27 $75.81 $184.80 $178.16 $- $50.00 $100.00 $150.00 $200.00 Lino Lakes - 2025 WTP Lino Lakes - 2025 NO WTP Lino Lakes - 2021 Shoreview Blaine Hugo Circle Pines Centerville Lexington Arden Hills Forest Lake Avg Residential Sewer Bill (20,000 gal/quarterly) 7. Comparable Communities City of Lino Lakes, Minnesota P a g e | 34 8. Conclusions and Recommendations 2021 2022 2023 2024 2025 2026 Residential 0 - 20,000 1.87$ 1.94$ 2.02$ 2.10$ 2.19$ 2.28$ 20,001 - 40,000 2.08$ 2.16$ 2.25$ 2.34$ 2.43$ 2.53$ 40,001 - 80,000 2.60$ 2.70$ 2.81$ 2.92$ 3.04$ 3.16$ 80,001 - 120,000 3.12$ 3.24$ 3.37$ 3.51$ 3.65$ 3.80$ 120,001 and up 3.64$ 3.79$ 3.94$ 4.09$ 4.26$ 4.43$ Fixed/REU 10.00$ 10.00$ 15.00$ 20.00$ 25.00$ 25.00$ Non-Residential 0 - 20,000 1.87$ 1.94$ 2.02$ 2.10$ 2.19$ 2.28$ 20,001 - 40,000 2.08$ 2.16$ 2.25$ 2.34$ 2.43$ 2.53$ 40,000 over 2.35$ 2.44$ 2.54$ 2.64$ 2.75$ 2.86$ Non-Residential Irrigation 0 - 40,000 2.60$ 2.70$ 2.81$ 2.92$ 3.04$ 3.16$ 40,001 - 80,000 3.12$ 3.24$ 3.37$ 3.51$ 3.65$ 3.80$ 80,001 and up 3.65$ 3.80$ 3.95$ 4.11$ 4.27$ 4.44$ 8. Conclusions and Recommendations This study was undertaken to review and analyze the City of Lino Lakes’s Water and Sewer Funds to determine the appropriate rate structure and rate levels needed to pay for anticipated operating expenses, to provide for anticipated capital improvements, pay principal and interest on current and anticipated debt, and to provide adequate levels of cash reserves. The following conclusions were determined as a result of this study and the financial projections prepared: • We recommend the following increases to the City’s Water Rates – with a new Water Treatment Plant: 44 City of Lino Lakes, Minnesota P a g e | 35 Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and wholly -owned subsidiary of Baker Tilly US, LLP, an accounting firm. Baker Tilly US, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. 8. Conclusions and Recommendations 2021 2022 2023 2024 2025 2026 Sewer Utility Rates 0 - 10,000 55.70$ 57.09$ 58.52$ 59.98$ 61.48$ 63.02$ > 10,000 1.07$ 1.10$ 1.12$ 1.15$ 1.18$ 1.21$ We recommend the following increases to the City’s Water Rates – without a new Water Treatment Plant: • We recommend the following increases to the City’s Sewer Rates: Customers served by sewer only should also have 2.5% annual rate increases. • The City should deposit the fixed water fee/REU into the Water Operating Fund and make annual transfers to the Area and Unit Charge Fund to finance capital outlay. • Current WAC/SAC and water/sewer trunk charges were reviewed and adhere to the previous study methodology. No changes are needed at this time. • The City should establish the user rates for all the Utility Funds for a three to five- year period. The rates should be reviewed on an annual basis concurrent with the development of the following year’s budget. These recommendations are based on information provided to us by city staff. The City will need to monitor the performance of each of the Funds and make any necessary adjustments based upon its actual performance and on the actual construction costs of the anticipated capital improvements. CITY COUNCIL AGENDA ITEM 2A STAFF ORIGINATOR: Hannah Lynch, Finance Director MEETING DATE: May 10, 2021 TOPIC: Consider Resolution No. 21-43, Providing for the Issuance and Sale of General Obligation Street Reconstruction Bonds, Series 2021A, in the Proposed Aggregate Principal Amount of $1,815,000 VOTE REQUIRED: 3/5 BACKGROUND On June 22, 2020, the City Council held a public hearing, approved the 2020-2024 Five Year Street Reconstruction Plan, and gave preliminary approval regarding the issuance of Street Reconstruction Bonds. On February 8, 2021, the City Council accepted bids and awarded a construction contract for the 2021 Street Improvement Project. The project includes street reconstruction and street rehabilitation. The street reconstruction portion includes a full depth reclamation, spot subgrade repairs, and culvert replacements in the following areas: 4th Avenue between Main Street and Pine Street Joyer Lane between Birch Street and Karth Road Karth Road between Joyer Lane and the cul-de-sac Talle Lane between Karth Road and Canfield Road Canfield Road between Talle Lane and Gaage Lane Gaage Lane between Canfield Road and Birch Street In order to finance these improvements, the City planned to issue General Obligation Street Reconstruction Bonds. The street rehabilitation portion of the project will be funded from other sources. Also on February 8, 2021, the City Council adopted a resolution declaring the intent to reimburse from future bond proceeds. The Internal Revenue Code requires cities to declare their intent to reimburse project costs incurred prior to receipt of bond proceeds. Preliminary expenditures such as architectural, engineering, surveying, bond issuance, and similar costs are exempt from this provision. The General Obligation Street Reconstruction Bonds will be repaid over a 10-year period by an annual debt service tax levy. This levy was anticipated in the City’s Capital Equipment Plan which was reviewed in the Fall of 2020. The City’s fiscal advisor, Baker Tilly, has prepared a Pre-Sale Summary for the Issuance of General Obligation Street Reconstruction Bonds to finance the 2021 Street Reconstruction improvements. Terri Heaton of Baker Tilly will be available to answer any questions that the City Council may have relative to the recommended financing. Approval of Resolution No. 21-43 provides for the issuance and sale of General Obligation Street Reconstruction Bonds, Series 2021A, in the proposed aggregate principal amount of $1,815,000. If approved, bids would be received on June 14, 2021, with consideration of award and sale by the City Council at its meeting the same day. RECOMMENDATION Staff is recommending approval of Resolution No. 21-43. ATTACHMENTS Baker Tilly Pre-Sale Summary for Issuance of Bonds Resolution No. 21-43 City of Lino Lakes, Minnesota Pre-Sale Summary for Issuance of Bonds $1,815,000 General Obligation Street Reconstruction Bonds, Series 2021A The Council has under consideration the issuance of bonds (the “Bonds”) to finance various street reconstruction projects within the City. This document provides information relative to the proposed issuance. KEY EVENTS: The following summary schedule includes the timing of some of the key events that will occur relative to the bond issuance: May 10, 2021 Council sets sale date and terms Week of May 31, 2021 Rating conference is conducted June 14, 2021, 10:00 a.m. Competitive proposals are received June 14, 2021 6:00 p.m. Council considers award of the Bonds July 15, 2021 Proceeds are received RATING: An application will be made to S&P Global Ratings (S&P) for a rating on the Bonds. The City’s general obligation debt is currently rated “AA+” by S&P. THE MARKET: Performance of the tax-exempt market is often measured by the Bond Buyer’s Index (“BBI”) which measures the yield of high grade municipal bonds in the 20th year for general obligation bonds rated Aa2 by Moody’s or AA by S&P (the BBI 20-Bond GO Index) and the 30th year for revenue bonds rated A1 by Moody’s or A+ by S&P (the BBI 25-Bond Revenue Index). The following chart illustrates these two indices over the past five years: Study No.: 0502.141_1394513 Date: May 4, 2021 Page 2 PURPOSE: Proceeds of the Bonds will be used to finance costs of various street reconstruction projects as identified in the City’s 5-Year Street Reconstruction Plan (2020-2024). AUTHORITY: Statutory Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapter 475, Section 475.58 (subd. 3b). Statutory Requirements: The City must have a 5-Year Street Reconstruction Plan and comply with the public hearing requirements. The City previously completed these requirements with a public hearing held on June 22, 2020 and the 30-day petition period expiration on July 23, 2020. SECURITY AND SOURCE OF PAYMENT: The Bonds will be a general obligation of the City secured by its full faith and credit and taxing power and paid from ad valorem property taxes. The City will make their first levy for the Bonds in 2021 for collection in 2022. The February 1, 2022 interest payment comes due prior to the first full anticipated collection of taxes and will be paid from capitalized interest included in the principal amount of the Bonds. Each year’s tax collections will be used to make the August 1 interest payment due in the collection year and the February 1 principal and interest payment in the following year. STRUCTURING SUMMARY: In consultation with City staff, the Bonds have been structured with a repayment term of 10 years with an approximately level debt service payments. SCHEDULES ATTACHED: Schedules attached for the Bonds include (i) sources and uses of funds; and (ii) estimated net debt service, given the current interest rate environment. RISKS/SPECIAL CONSIDERATIONS: The outcome of this financing will rely on the market conditions at the time of the sale. Any projections included herein are estimates based on current market conditions SALE TERMS AND MARKETING: Variability of Issue Size: A specific provision in the sale terms permits modifications to the issue size and/or maturity structure to customize the issue once the price and interest rates are set on the day of sale. Prepayment Provisions: Bonds maturing on or after February 1, 2030 may be prepaid at a price of par plus accrued interest on or after February 1, 2029. Bank Qualification: The City does not expect to issue more than $10 million in tax-exempt obligations that count against the $10 million limit for this calendar year; therefore, the Bonds are designated as bank qualified. Post Issuance Compliance POST ISSUANCE COMPLIANCE: The issuance of the Bonds will result in post-issuance compliance responsibilities. The responsibilities are in two primary areas: (i) compliance with federal arbitrage requirements and (ii) compliance with secondary disclosure requirements. Federal arbitrage requirements include a wide range of implications that have been taken into account as this issue has been structured. Post-issuance compliance responsibilities for this tax-exempt issue include both rebate and yield restriction provisions of the IRS for this Code. In general terms the arbitrage requirements control the earnings on Page 3 unexpended bond proceeds, including investment earnings, moneys held for debt service payments (which are considered to be proceeds under the IRS regulations), and/or reserves. Under certain circumstances, any “excess earnings” will need to be paid to the IRS to maintain the tax-exempt status of the Bonds. Any interest earnings on gross bond proceeds or debt service funds should not be spent until it has been determined based on actual facts that they are not “excess earnings” as defined by the IRS Code. The arbitrage rules provide for spend-down exceptions for proceeds that are spent within either a 6-month, 18-month or, for certain construction issues, a 24-month period each in accordance with certain spending criteria. Proceeds that qualify for an exception will be exempt from rebate. These exceptions are based on actual expenditures and not based on reasonable expectations, and expenditures, including any investment proceeds will have to meet the spending criteria to qualify for the exclusion. The City expects to meet the 18-month spending exception. Regardless of whether the issue qualifies for an exemption from the rebate provisions, yield restriction provisions will apply to Bond proceeds (including interest earnings) unspent after three years and the debt service fund throughout the term of the Bonds. These moneys should be monitored until the Bonds are retired. Secondary disclosure requirements result from an SEC requirement that underwriters provide ongoing disclosure information to investors. To meet this requirement, any prospective underwriter will require the City to commit to providing the information needed to comply under a continuing disclosure agreement. Baker Tilly MA currently provides both arbitrage and continuing disclosure services to the City. Baker Tilly MA will work with the City staff to include the Bonds under the existing Agreement for Municipal Advisor Services. SUPPLEMENTAL INFORMATION AND BOND RECORD: Supplementary information will be available to staff including detailed terms and conditions of sale, comprehensive structuring schedules and information to assist in meeting post-issuance compliance responsibilities. Upon completion of the financing, a bond record will be provided that contains pertinent documents and final debt service calculations for the transaction. Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly US, LLP, an accounting firm. Baker Tilly US, LLP trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2021 Baker Tilly Municipal Advisors, LLC. Page 4 $1,815,000 City of Lino Lakes, Minnesota General Obligation Street Reconstruction Bonds, 2021A Issue Summary Sources & Uses Dated 07/15/2021 | Delivered 07/15/2021 Sources Of Funds Par Amount of Bonds............................................................................................................................................$1,815,000.00 Total Sources.....................................................................................................................................................$1,815,000.00 Uses Of Funds Deposit to Project Construction Fund.....................................................................................................................1,750,000.00 Costs of Issuance.................................................................................................................................................38,675.00 Total Underwriter's Discount (0.800%)....................................................................................................................14,520.00 Deposit to Capitalized Interest (CIF) Fund...............................................................................................................10,524.11 Rounding Amount.................................................................................................................................................1,280.89 Total Uses...........................................................................................................................................................$1,815,000.00 2021A GO Bonds 10 Yrs 4.2 | SINGLE PURPOSE | 4/21/2021 | 12:42 PM Page 5 $1,815,000 City of Lino Lakes, Minnesota General Obligation Street Reconstruction Bonds, 2021A Issue Summary NET DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+I CIF Net New D/S 105% Levy 02/01/2022 --10,524.11 10,524.11 (10,524.11)-- 02/01/2023 175,000.00 0.550%19,330.00 194,330.00 -194,330.00 204,046.50 02/01/2024 175,000.00 0.650%18,367.50 193,367.50 -193,367.50 203,035.88 02/01/2025 175,000.00 0.750%17,230.00 192,230.00 -192,230.00 201,841.50 02/01/2026 180,000.00 0.850%15,917.50 195,917.50 -195,917.50 205,713.38 02/01/2027 180,000.00 0.950%14,387.50 194,387.50 -194,387.50 204,106.88 02/01/2028 180,000.00 1.150%12,677.50 192,677.50 -192,677.50 202,311.38 02/01/2029 185,000.00 1.200%10,607.50 195,607.50 -195,607.50 205,387.88 02/01/2030 185,000.00 1.350%8,387.50 193,387.50 -193,387.50 203,056.88 02/01/2031 190,000.00 1.500%5,890.00 195,890.00 -195,890.00 205,684.50 02/01/2032 190,000.00 1.600%3,040.00 193,040.00 -193,040.00 202,692.00 Total $1,815,000.00 -$136,359.11 $1,951,359.11 (10,524.11)$1,940,835.00 $2,037,876.75 SIGNIFICANT DATES Dated Date............................................................................................................................................................7/15/2021 Delivery Date.........................................................................................................................................................7/15/2021 First Coupon Date..................................................................................................................................................2/01/2022 Yield Statistics Bond Year Dollars..................................................................................................................................................$11,123.17 Average Life..........................................................................................................................................................6.128 Years Average Coupon....................................................................................................................................................1.2259019% Net Interest Cost (NIC)...........................................................................................................................................1.3564403% True Interest Cost (TIC)..........................................................................................................................................1.3584165% Bond Yield for Arbitrage Purposes...........................................................................................................................1.2212360% All Inclusive Cost (AIC)...........................................................................................................................................1.7310889% IRS Form 8038 Net Interest Cost...................................................................................................................................................1.2259019% Weighted Average Maturity.....................................................................................................................................6.128 Years 2021A GO Bonds 10 Yrs 4.2 | SINGLE PURPOSE | 4/21/2021 | 12:42 PM Extract of Minutes of Meeting of the City Council of the City of Lino Lakes, Anoka County, Minnesota Pursuant to due call and notice thereof a regular meeting of the City Council of the City of Lino Lakes, Anoka County, Minnesota, was held at the City Hall in the City on Monday, May 10, 2021, commencing at 6:30 p.m. The following members of the Council were present: and the following were absent: *** *** *** Member __________ introduced the following written resolution, the reading of which was dispensed with by unanimous consent, and moved its adoption: 2 LN140-125-718748.v1 RESOLUTION NO. 21-43 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF GENERAL OBLIGATION STREET RECONSTRUCTION BONDS, SERIES 2021A, IN THE PROPOSED AGGREGATE PRINCIPAL AMOUNT OF $1,815,000 BE IT RESOLVED By the City Council of the City of Lino Lakes, Anoka County, Minnesota (the “City”) as follows: 1. Authorization. (a) Pursuant to Minnesota Statutes, Chapter 475, as amended, specifically Section 475.58, subdivision 3b (the “Act”), the City is authorized to finance all or a portion of the cost of street reconstruction projects by the issuance of general obligation bonds of the City payable from ad valorem taxes. (b) On June 16, 2020, following a duly noticed public hearing, the City Council of the City adopted a five-year street reconstruction (the “Plan”) describing the streets to be reconstructed, estimated costs, and any planned reconstruction of other streets in the City and approved the issuance of obligations by vote of at least a two-thirds majority of the members of the City Council, all pursuant to the Act. (c) Expenditures described in the Plan for 2021 include, among other projects, the reconstruction of 4th Avenue (Main to Pine), Karth Road, Joyer Lane, Talle Lane, Canfield Road, and Gaage Lane in the City (collectively, the “Street Reconstruction”). The City estimates that the total cost of the Street Reconstruction for 2021 is $1,815,000. (d) The City Council has determined that, within thirty (30) days after the hearing, no petition for a referendum on the issuance of bonds to pay costs of the Street Reconstruction was received by the City in accordance with the Act. (e) The City Council finds it necessary and expedient to the sound financial management of the affairs of the City to issue obligations in the proposed principal amount of $1,815,000 (the “Bonds”), pursuant to the Act, to provide financing for the Street Reconstruction. (f) The City is authorized by Section 475.60, subdivision 2(9) of the Act to negotiate the sale of the Bonds, it being determined that the City has retained an independent municipal advisor in connection with such sale. The actions of the City staff and the City’s municipal advisor in negotiating the sale of the Bonds are ratified and confirmed in all aspects. 2. Sale of Bonds. To finance the Street Reconstruction, the City will therefore issue and sell the Bonds in the proposed aggregate principal amount of $1,815,000, which amount is subject to adjustment in accordance with the official Terms of Proposal (the “Terms of Proposal”). The Bonds will be issued, sold and delivered in accordance with the Terms of Proposal attached hereto as EXHIBIT A. 3. Authority of Municipal Advisor. Baker Tilly Municipal Advisors, LLC (the “Municipal Advisor”) is authorized and directed to negotiate the Bonds on behalf of the City in accordance with the Terms of Proposal. The City Council will meet at 6:30 p.m. on Monday, June 14, 2021, to consider proposals on the Bonds and take any other appropriate action with respect to the Bonds. 3 LN140-125-718748.v1 4. Authority of Bond Counsel. The law firm of Kennedy & Graven, Chartered, as bond counsel for the City (“Bond Counsel”), is authorized to act as bond counsel and to assist in the preparation and review of necessary documents, certificates, and instruments relating to the Bonds. The officers, employees, and agents of the City are hereby authorized to assist Bond Counsel in the preparation of such documents, certificates, and instruments. 5. Covenants. In the resolution awarding the sale of the Bonds the City Council will set forth the covenants and undertakings required by the Act. 6. Official Statement. In connection with the sale of the Bonds, the officers or employees of the City are authorized and directed to cooperate with the Municipal Advisor and participate in the preparation of an official statement for the Bonds and to deliver it on behalf of the City upon its completion. (The remainder of this page is intentionally left blank.) 4 LN140-125-718748.v1 The motion for the adoption of the foregoing resolution was duly seconded by Councilmember _____________, and upon vote being taken thereon the following members voted in favor of the motion: and the following voted against: whereupon the resolution was declared duly passed and adopted. A-1 LN140-125-718748.v1 EXHIBIT A TERMS OF PROPOSAL A-2 LN140-125-718748.v1 A-3 LN140-125-718748.v1 A-4 LN140-125-718748.v1 A-5 LN140-125-718748.v1 A-6 LN140-125-718748.v1 LN140-125-718748.v1 STATE OF MINNESOTA ) ) COUNTY OF ANOKA ) ) CITY OF LINO LAKES ) I, the undersigned, being the duly qualified and acting City Clerk of the City of Lino Lakes, Minnesota (the “City”), hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on Monday, May 10, 2021, with the original minutes on file in my office and the extract is a full, true, and correct copy of the minutes, insofar as they relate to the issuance and sale of the City’s General Obligation Street Reconstruction Bonds, Series 2021A, in the proposed aggregate principal amount of $1,815,000. WITNESS My hand as City Clerk and the corporate seal of the City this ____ day of May, 2021. City Clerk City of Lino Lakes, Minnesota (SEAL) CITY COUNCIL AGENDA ITEM 3A STAFF ORIGINATOR: Meg Sawyer, Human Resources Manager MEETING DATE: May 10, 2021 TOPIC: Consider Appointment of Police Officer VOTE REQUIRED: 3/5 INTRODUCTION The Council is being asked to approve the appointment of Daniel Swenson to a vacant Police Officer position in the Public Safety Department. BACKGROUND There are currently three vacant Police Officer positions within the Public Safety Department. At this time, staff has completed a recruitment process, provided a conditional offer, and is recommending the approval of Daniel Swenson for the position. Daniel Swenson holds a Bachelor’s Degree and meets all POST mandated requirements to be a Police Officer in the State. Swenson has ten years of experience as a Police Officer. The hourly rate of pay would be $39.08, which is Step 4 of the union wage schedule. The wage schedule has six steps. With the Council’s approval, Swenson would start in the position of Police Officer in June. RECOMMENDATION Approve the appointment of Daniel Swenson for the Police Officer position. CITY COUNCIL AGENDA ITEM 4A STAFF ORIGINATOR: John Swenson, Public Safety Director MEETING DATE: May 10, 2021 TOPIC: Convert seized property to city property for city use VOTE REQUIRED: 3/5 INTRODUCTION The City of Lino Lakes Ordinance 213.07(1) authorizes the Public Safety Department to appropriate unclaimed property for City use if authorized to do so by a majority vote of the City Council. BACKGROUND As part of the continued management of police division property and evidence room, staff identified the below listed equipment for City use. 09‐129138 #3 (Public Works) JUMP PACK 10‐114120 #7 (FOR FIREARMS SAFETY CLASS, NO REPORT, NO KNOWN OWNER) MARLIN RIFLE 22 CAL; 15515761 W/ BUSHNELL SIGHT 11‐271332 (PD‐Explorers) HANDCUFFS 13‐060211 #133 (Investigations) YELLOW AND BLACK TOUGHBUILT BOLT CUTTER 13‐060211 #6 (Public Works) PORTABLE AIR TANK 13‐066344 (PD) IPHONE USB CORD 15‐019457 #262‐039 & #3 (PD ‐ Use of Force) CO2 CARTRIDGES 15‐120875 #120 (Investigations) DSLR CAMERA 17‐056332 #10 (PD K9 Training) GLASS PIPES 17‐074936 #7 (PD K9 Training) GLASS PIPE 17‐077960 #11 (Investigations) BOLT CUTTER 17‐130536 #1 ‐#10 (FIRE) 2 impact wrenches, 2 impact drivers, grinder and attachments, drill, tool bag, hammer, scissors, 6 wrenches/pliers, puller 17‐204004 (PD) LADDER 18‐172778 #1, #2 (Public Works) ROAD SIGNS 18‐278232 #13, 18, 19, 20, 21 (PD) Yellow/black extension cord, DURACELL box with 12 AA batteries, DURACELL PROCELL box with 2 AA batteries, RAYOVAC box with 22 AA batteries, 12 RAYOVAC AA batteries, 2 Energizer AA batteries 19‐293484 (Public Works) WHEELBARROW 19‐315043 (PD USE W/GRILL PROPANE TANK 21‐027428 120‐26 (PD K9 Training) Glass Pipe RA15300120 #18 (Fire) JUMPER CABLES RA15300120 #26 (Investigations) BINOCULARS RA16000106 #1 (FOR FIREARMS SAFETY CLASS TURNED INTO PD, NO KNOWN OWNER) RIFLE ‐ 1939 Russian Rifle AY4390 RA16001906 #5 (PD) GERBER MULTITOOL RA16003463 (Investigations) LEAF BLOWER RA16005209 #11 (Public Works) DEAD END SIGN RA16005209 #10 (FOR FIREARMS SAFETY CLASS, GUN WAS FORFEITED TO THE DEPT AS PART OF THE CRIMINAL CASE) MARLIN RIFLE 126‐30296 Ruger 10/22; .22 LF Caliber w/ Bushnell sight 21003830 121‐32C (PD) One plier, one vise grip, misc phone charging cords 21003830 121‐38 (FIRE) Echo CS370 C69515003286 Chainsaw 21003830 121‐42 (PD) Broom (PD OR VOLUNTEERS) CARIBOU CARD (Public Works) 2 SHOVELS (PD ‐ FIREARMS SAFETY CLASS) MISC RIFLE CASES (Public Works) CROWBAR 09‐028079 (City Use) (NO REPORT, NO KNOWN OWNER) 402.00 09‐195238 (City Use) (NO REPORT, NO KNOWN OWNER) 100.00 09‐195289 (City Use) (NO REPORT, NO KNOWN OWNER) 168.00 10‐035778 #35 (City Use)60.00 10‐050361 (City Use)15.52 10‐050361 (City Use)8.60 10‐095818 (City Use) (FOUND WALLET) 581.00 11‐057444 (City Use)5.00 11‐207041 #2 (City Use)4.00 11‐225103 (City Use) CASH (FOUND WALLET‐NO OWNER) 150.00 11‐271332 (City Use)50.34 11‐271332 (City Use) TWO BAGS OF MISC MONEY/CHANGE 60.31 12‐066269 #3 (City Use)1.00 13‐062475 (City Use)5.00 13‐166489 (City Use)9.01 13‐179628 #17 (City Use) (Owner never came to claim their item, money found in disposal of item) 0.12 14‐123672 #6 (City Use)11.00 14‐123672 (City Use) $2.00 BILL 2.00 14‐123672 #11 (City Use)4.55 14‐123672 #17 (City Use) CONTAINERS W/CHANGE 12.25 14‐156381 #3 (City Use)26.50 14‐191290 #1 (City Use)1.00 15‐120875 #100 (City Use)$141.33 15‐146330 #7, #27 (City Use)2.63 17‐056332 #21 (City Use) (Owner never came to claim their item, money found in disposal of item) 5.54 17‐086235 #13 (City Use) (Owner never claimed item and all attempts were made to contact her) 0.53 18‐237076 (City Use) CHANGE 0.23 19‐150150 #253‐2(City Use)1.04 19‐184545 (City Use) (Owner never came to claim his items and they were disposed of. Money located during disposal of item) 1.00 19‐215558 (City Use) (Abandoned $, all attempts to contact owner have been exhausted) 153.00 19‐319342 (City Use) (Owner never claimed her wallet and it was disposed of properly. Money located during disposal of item) 0.92 20‐022683 (City Use) FOUND PROPERTY 6.00 20‐089829 (City Use) (Owner never claimed backpack and it was disposed of properly. Money located during disposal of item.) 5.97 RA16003103 #12 (City Use)0.36 (City Use) MISC CHANGE 12.08 18‐207065 (City Use) MISC CHANGE $3.48 2,011.31 TOTAL RECOMMENDATION Authorize the Public Safety Department to convert the above listed property from seized property to city owned property. ATTACHMENTS None CITY COUNCIL AGENDA ITEM 4B STAFF ORIGINATOR: John Swenson, Public Safety Director MEETING DATE: May 10, 2021 TOPIC: Donation of Seized Property VOTE REQUIRED: 3/5 INTRODUCTION The City of Lino Lakes Ordinance 213.07 authorizes the Public Safety Department to dispose of unclaimed property in a manner authorized by a majority vote of the City Council. BACKGROUND As part of the continued management of police division property and evidence room, staff identified the below listed items for disposal: 21-003830 Cooler bag Black jacket Computer bag Green sam’s club tote Sandals Black leather duffel bag Black Adidas bag Pants Vikings jersey Black Swiss backpack Shorts White Doc Martins shoes Shirts Black and brown duffel bag Empty sketch book Reading book Black and blue duffel One pair mens gloves Black clothing hamper Red utility wagon Blue children's jacket (129-1) Misc clothing (129-5) Reflective traffic vest (129-3) Sponge Bob bag, Paw Patrol hat (129-7) Two black purses (129-6) Case # 20-299811 All related court and investigative matters have been completed. Staff has complied with all statuary obligations to notify all concerned parties and received no communications related to any of these cases or the related property. To eliminate the expense of destroying these items, staff is requesting they be donated to the non-profit organization Family Pathways. This non-profit organization provides healthy food access, domestic and sexual violence prevention and victim services, and services for older adults and caregivers. Click here to visit their website. RECOMMENDATION Authorize the Public Safety Department to donate the listed items to the non-profit Family Pathways. ATTACHMENTS None 1 CITY COUNCIL AGENDA ITEM 6A STAFF ORIGINATOR: Katie Larsen, City Planner MEETING DATE: May 10, 2021 TOPIC: Butler Addition Rezoning and Preliminary Plat i. Consider First Reading of Ordinance No. 03-21 Rezoning Property from R, Rural to R-1, Single Family Residential ii. Consider Resolution No. 21-39 Approving Preliminary Plat VOTE REQUIRED: 3/5 REVIEW DEADLINE: Complete Application Date: March 9, 2021 60-Day Review Deadline: May 8, 2021 120-Day Review Deadline: July 7, 2021 Environmental Board Meeting: March 31, 2021 Park Board Meeting: N/A Planning & Zoning Board Meeting: April 14, 2021 City Council Meeting: May 10, 2021 INTRODUCTION The applicant, Scott Butler, submitted a land use application for rezoning and preliminary plat for Butler Addition. The applicant proposes to subdivide the existing parcel located at 7870 Meadow View Trail into two (2) single family lots for the purpose of constructing one (1) new single family home off of Lois Lane. The lot is 1.02 gross acres (44,400 sf). The Land Use Application is: • Rezoning o From R, Rural to R-1, Single Family Residential • Preliminary Plat o 2 lots This staff report is based on the following information: • Certificate of Survey and Resource Inventory Map prepared by EG Rud & Sons, Inc. dated February 8, 2021 2 • Landscape Plan prepared by Plowe Engineering dated March 8, 2021 • Preliminary Plat prepared by EG Rud & Sons, Inc. dated February 8, 2021 • Tree Inventory/Removals prepared by EG Rud & Sons, Inc. dated March 8, 2021 • Civil Plan Set prepared by Plowe Engineering dated March 8, 2021 • Report of Geotechnical Exploration for 7870 Meadow View Trail prepared by ITCO Allied Engineering Company dated February 26, 2021 • Drainage Calculations prepared by Plowe Engineering, Inc. dated March 8, 2021 ANALYSIS Existing Site Conditions The residential lot contains an existing house, deck and detached garage that was built in 1983. The Certificate of Survey indicates Zimmerman Fine Sand and Soderville Fine Sand. Groundwater was encountered at approximately 10 feet. Zoning The parcel is currently zoned R, Rural and will be rezoned to R-1, Single Family Residential consistent with neighborhood parcels. The 2040 Comprehensive Plan is in effect and applicable to the development. Current Zoning R, Rural Current Land Use Rural Residential Future Land Use per CP Low Density Sewered Residential Utility Staging Area 1A=2018-2025 Surrounding Zoning and Land Use Direction Zoning Current Land Use Future Land Use North R-1 Single Family Residential Low Density Sewered Residential South R Rural Residential Urban Reserve East R-1 Single Family Residential Low Density Sewered Residential West R Rural Residential Low Density Sewered Residential Density and Land Area Calculations The following chart implements Met Council’s formula for calculating net density. 3 Gross Area (acres) 1.02 Wetlands & Water Bodies 0.00 Public Parks & Open Space 0.00 Arterial ROW 0.00 Other (Utility Transmission Easement) 0.00 Other (Wetland Buffer Area) 0.00 Net Area (acres) 1.02 # of Units 2 Gross Density (units/acre) 1.96 Net Density (units/acre) 1.96 The parcel is guided low density residential development and allows for 1.6 to 3.0 units per net acre. The proposed net density of 1.96 units per acre is consistent with the Comprehensive Plan. Zoning Requirements The parcel is currently zoned R, Rural and will be rezoned to R-1, Single Family Residential. It is a corner lot (Meadow View Trail and Lois Lane) and is 1.02 gross acres (44,400 sf). Lot 1 will contain the existing single family house. Lot 2 is being created for the purpose of constructing one (1) single family home. 4 R-1 Requirements Lot 1 (Existing House) Lot 2 (Proposed House) Min. Lot Size 10,800 sf 24,975 sf 19,4251 sf Min. Lot Width --Corner Lot 100 ft. 135.02 ft. NA --Interior Lot 80 ft. NA 105.00 ft. Min. Lot Depth 135 ft. 185.0 ft. 185.0 ft. Building Setback (ft) -From Streets3 30 ft. 40 ft. 39.6 ft. (Meadow View) 73.0 ft. (Lois Lane) 40 ft. -Rear Yard --Principal 30 ft. 37.7 ft. 94.3 ft. -Accessory 5 ft. 61.3 ft. Future -Side Yard --Principal 10 ft. 71.1 ft. 25.3 ft. & 33.4 ft. --Accessory 5 ft. 55.2 ft. 28.5 ft. Impervious Surface 40% 11.2% 16.6% 1The gross lot area is 19,425 sf. The net lot area is 13,435 sf after subtracting the oversized rear yard 5,990 sf easement. 2Lois Lane is the front lot line. 3Lois Lane is minor collector roads. The proposed lots meet zoning requirements. Lot Frontage and Front Lot Line It should be noted the current front lot line for the existing parcel is along Lois Lane. A R, Rural zoned parcel requires 330 ft. of lot width, but the current parcel only has 240 ft. of lot width along Lois Lane so by definition, Lois Lane is the front lot line. Per Zoning Ordinance Section 1007.001 Rules and Definitions: LOT FRONTAGE. The narrowest lot boundary abutting a public street that meets minimum lot width requirements. If none of the boundaries abutting a public street meet minimum lot width requirements, then the lot frontage is the widest boundary abutting a street. LOT LINE, FRONT. The lot line separating a lot from the street right-of-way along the lot frontage. 5 The rezoning to R-1, Single Family Residential and the subdivision of the existing lot into two (2) lots now creates 2 compliant, standard parcels in regards to lot width and lot size. The front lot line for the existing house on proposed Lot 1 still remains along Lois Lane even though the front of the house and driveway face Meadow View Trail. This is important to note because the existing detached garage is currently non-conforming because it is closer to the front lot line than the principal building. It will remain non-conforming after platting and subject to regulations on non-conformities. Building Requirements At the time of building permit, the single family house proposed on Lot 2 will be reviewed for compliance regarding floor area, garage and design and construction standards. Subdivision Ordinance The legal description of the parcel is Lot 14, Block 3, Mar Don Acres and was platted in 1978. Similar residential subdivisions of Mar Don Acres lots have been approved in previous years (Cavegn Estates-2006, Hailey Manor-2007, Isabell Estates-2014 and Golden Acre-2017). Conformity with the Comprehensive Plan and Zoning Code The preliminary plat is consistent with the comprehensive plan for low density residential development and zoning code requirements for R-1, Single Family Residential as discussed above. Blocks and Lots The preliminary plat contains Lot 1 and Lot 2, Block 1, Butler Addition. As noted above, Lot 1 contains the existing house and Lot 2 proposes a new single family home. Streets and Alleys Lot 1 is served by Meadow View Trail which is a local road. The existing road right-of-way is 60 ft. No addition road right-of-way is required. Lot 2 is served by Lois Lane which is a minor collector road. The existing road right-of-way width is 60 ft. which is consistent with previously approved plats in the area. No additional road right-of-way is needed. Easements Drainage and utility easements at least ten (10) feet wide are required and shown along all lot lines. An oversized drainage and utility easement exists on Lot 2 in the rear yard over the stormwater management facility. Storm Water Management and Erosion and Sediment Control 6 Per the March 25, 2021 RCWD CAPROC, a stormwater infiltration basin is not required per RCWD rules. However, a stormwater BMP is still needed to meet City stormwater requirements because the site is over one (1) acre. The applicant is proposing to meet City stormwater requirements by constructing an infiltration basin in the south corner of Lot 2. The bottom of the infiltration basin is 906.5 and the HWL of the basin is 907.51, which both meet freeboard requirements in Table 6 of the City ordinance. Utilities Sanitary Sewer An 8” sanitary sewer main exists along Lois Lane. The existing house is connected to municipal sanitary sewer. The new house will also be connected to municipal sanitary sewer. Watermain An 8” watermain exists along Lois Lane. The existing house is currently on a private well. A 1” water lateral is stubbed to Lois Lane, but is not connected to the house. The existing house shall connect to municipal watermain. The new house will also be connected to municipal watermain. Public Land Dedication The City will require cash in lieu of land dedication for the new lot. Lot 1 with the existing house will not be charged a park dedication fee. Park Dedication Fees Total # of Lots = 1 x 2021 Park Dedication Fee $3,160 = Total Due $3,160 Tree Preservation The Environmental Coordinator and Board reviewed the Tree Preservation and Landscaping Plan. Per the March 31, 2021 Environmental Board staff report, a tree inventory/removal list was submitted. Trees removed are in the basic use area and will not require mitigation trees to be planted. Any trees to be preserved that are near construction activities should be protected with tree protection fence installed at a radius of one foot per inch DBH (diameter at breast height). In this case, trees that could potentially use protection fencing include the spruce on the north perimeter (not included in the survey because they are all less than 12 feet tall), and the row of pines on the east perimeter. Landscaping 7 Canopy cover, foundation landscaping, open area landscaping and buffer and screens are not required for the two (2) lot residential subdivision. Boulevard Trees Residential lots require one boulevard tree per frontage. In this case, parcel 1 has existing trees in the right-of-way that will satisfy this requirement. An American basswood (Tilia americana) is proposed for the boulevard tree that will be required for parcel 2. Sod and Ground Cover All disturbed areas shall have appropriate ground cover in accordance with Section 1007.043(17)(h). Environmental Assessment Worksheet (EAW) An Environmental Assessment Worksheet is not mandated. The two (2) unattached residential units are under the 250 unattached unit threshold required for a mandatory EAW. Wetlands There are no wetlands on site. Floodplain There is no floodplain on site. Shoreland Management Overlay The parcel is not located within a Shoreland Management Overly district. Impervious Surface Coverage Per the preliminary plat, the overall total site impervious surface coverage is as follows: Impervious Surface Coverage Total Parcel Size 44,400 sf Existing Impervious 2,797 sf (6.3%) Proposed Impervious Lot 1 + Lot 2 6,031 sf (14%) Comprehensive Plan Butler Addition is consistent with the goals and policies of the comprehensive plan in regards to resource management, land use, housing, transportation and utilities. 8 Resource Management System Plan Goals of the Resource Management System Plan include: • Natural Resources and Amenities o Goal #1: Identify, protect and preserve the desirable natural areas and ecological and aquatic resources of the community. • Land Use Policies o Goal #1: Ensure that well-planned, quality residential, commercial, industrial and institutional development to accommodate the city’s projected growth needs occurs in a manner that also conserves and enhances the city’s natural resources and amenities. Butler Addition protects the natural resource by implementing erosion control and storm water best management practices. Land Use Plan Goal 2: Ensure that zoning and subdivision ordinances and official maps are consistent with the intent and specific direction provided within the Comprehensive Plan. Policies: 1. Ensure developers meet the standards specified within the land-use plan and official controls, including zoning and subdivision ordinances and official maps. 2. Ensure compatibility of adjacent land uses. Butler Addition is compliant with the zoning and subdivision ordinances. It is also compatible with adjacent residential land uses. Housing Plan Goal 1: Ensure housing development is compatible with existing and adjacent land uses and provides accessibility to key community features and natural resources. Butler Addition meets the goals of the housing plan. The development is compatible with the existing and adjacent residential homes. Transportation Plan Goal 1: Plan for and achieve required street improvements and connectivity throughout the City of Lino Lakes. Lois Lane is a minor collector road and has capacity to accommodate one (1) new single family home. 9 Sanitary Sewer Plan Goals of the sanitary sewer plan are to ensure well-planned, quality residential development that conserves and enhances the city’s natural resources and to provide an affordable and safe sanitary sewer system. An 8” sanitary sewer main exists along Lois Lane. The existing house is connected to municipal sanitary sewer. The new house will also be connected to municipal sanitary sewer. The system has capacity for one (1) additional single family home. Water Supply Plan A goal of the water supply plan is to provide residents affordable potable water that is safe and of high quality for daily consumption and fire demand. An 8” watermain exists along Lois Lane. The existing house is on a private well and shall connect to municipal watermain. The new house will also be connected to municipal watermain. Planning Districts The site is located in Planning District 2 and is guided for low density residential development. There are no specific planning recommendations for this site. Environmental Board Comments The Environmental Board reviewed the proposed preliminary plat on March 31, 2021. They recommended approval of the project with conditions listed in the April 6, 2021 Memo from the Environmental Coordinator. Conditions include the installation of tree protection fences and the use of staked biologs for erosion control. Public Safety Department The Police Division and Fire Division reviewed the plans and have no additional comments or concerns. Final Plat A land use application for final plat and Development Agreement shall be required. Planning & Zoning Board The Planning & Zoning Board held a public hearing on April 14, 2021. Board comments included questions about the non-conforming garage, connection to City water and the front lot line. There were no public comments. The Board recommended approval with a 6-0 vote. 10 Findings of Fact The Findings of Fact for the rezoning and preliminary plat are detailed in Ordinance No. 03-21 and Resolution No. 21-39, respectively. RECOMMENDATION The Planning and Zoning Board and staff recommend approval of the rezoning and preliminary plat for Butler Addition with conditions listed in the resolution. ATTACHMENTS 1. Site Location & Aerial Map 2. Zoning Map 3. Ordinance No. 03-21 4. Resolution No. 21-39 5. Certificate of Survey, Preliminary Plat and Civil Plan Set, Sheets 1-5 prepared by EG Rud & Sons, Inc. dated February 8, 2021 0 100 20050 Feet 56456478707870 547547 559559523523 785978597859785978607860 548548 78697869 535535 565565 554554 78697869 529529 LOIS LNLOIS LN MEADOW VIEW TRLMEADOW VIEW TRLSite Location & Aerial Map7870 Meadow View Trail µ 0 600 1,200300 Feet R R R R-1 R R R-1 R-2 R-1 R R R-1 R R-3 R-1 R R PSP R-1 GB LI R R-1 R NB R-1 R-1 R-3 LI4TH AVE4TH AVEBLUEBILL LNBLUEBILL LNWW OO OO DD DD UUCCKKTTRRLLVICKY LNVICKY LN HI G H L A N D C I R HI G H L A N D C I R 79TH ST79TH ST MARILYN DRMARILYN DRHHIIGG HH LL AA NNDD DDRR HHIIGGHHLLAA NN DD TTRRLL HH IIGG HH LL AA NN DD LL NN JOSEPH CTJOSEPH CTARLO LNARLO LN LOIS LNLOIS LN HHIIGGHH LL AANNDDCCTTOAK LNOAK LNOAK CTOAK CTNNAANNCC YY DD RR CCOOUUNNTTRRYYLLNNHHEENNRRYYLLNNOO AA KK LLNN SHERWOOD LNSHERWOOD LN BARBARA LNBARBARA LNGREENWOOD LNGREENWOOD LN NNAA NN CCYYCCTTPPRRAAIIRRIIEE VVIIEEWW PPLL MMYYRRTTLLEE LLNN CARL STCARL ST NOTTINGHAM LNNOTTINGHAM LNMMEEAADDOOWWVVIIEEWWTTRRLLZoning Map7870 Meadow View Trail µ Legend Zoning Districts Zoning Description Rural Rural Executive Single Family Residential Single Family Executive Two Family Residential Medium Density Residential High Density Residential Manufactured Home Park Limited Business General Business Neighborhood Business General Industrial Light Industrial Rural/Business Reserve Public Semi-Public PUD 1 1st Reading: 5/10/2021 Publication: 2nd Reading: 5/24/2021 Effective: CITY OF LINO LAKES ORDINANCE NO. 03-21 ORDINANCE TO REZONE PROPERTY FROM R, RURAL TO R-1, SINGLE FAMILY RESIDENTIAL FOR BUTLER ADDITION The City Council of Lino Lakes ordains: Section 1: Findings of Fact 1. The City received a Land Use Application to rezone certain property from R, Rural to R-1, Single Family Residential. 2. The Planning and Zoning Board held a public hearing on April 14, 2021. 3. Per Section 1007.015 (5), the Planning and Zoning Board shall consider possible adverse effects of the proposed rezoning and its judgement shall be based upon, but not limited to, the following factors: (a) The proposed action has been considered in relation to the specific policies and provisions of and has been found to be consistent with the official City Comprehensive Plan. The proposed Butler Addition residential subdivision is consistent with the goals and policies of the comprehensive plan in regards to resource management, land use, housing, transportation and utilities. The development is consistent with residential land use and density requirements. Safe transportation corridors and public utilities also serve the development. (b) The proposed use is or will be compatible with present and future land uses of the area. The proposed Butler Addition development is compatible with the present and future land uses of the area. Existing and future land use to the north, south, east and west is residential. (c) The proposed use conforms with all performance standards contained herein. The proposed Butler Addition development conforms with zoning ordinance performance standards for R-1, Single Family Residential districts. 2 (d) The proposed use can be accommodated with existing public services and will not overburden the City’s service capacity. The proposed Butler Addition development can be accommodated with existing public services and will not overburden the City’s service capacity. The site is served by 8” municipal watermain and 8” sanitary sewer. The public water and sanitary system have capacity for two (2) single family lots. Section 2: Amendment The Zoning Ordinance of the City of Lino Lakes is hereby amended to rezone the following described property from R, Rural to R-1, Single Family Residential. Section 3: Legal Description Lot 14, Block 3, Mar Don Acres, Anoka County, Minnesota. Section 4: Development Regulations The development shall conform to the plans, requirements, and conditions of approval as listed in Council Resolution No. 21-39. Section 5: Effect This ordinance shall be in force and effect from and after its passage and publication according to the Lino Lakes City Charter and upon the filing of the final plat. Adopted by the Lino Lakes City Council this 24th day of May, 2021. The motion for the adoption of the foregoing ordinance was introduced by Council Member_____________and was duly seconded by Council Member ___________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ____________________________ Rob Rafferty, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk 1 CITY OF LINO LAKES RESOLUTION NO. 21-39 APPROVING PRELIMINARY PLAT FOR BUTLER ADDITION WHEREAS, the City received a land use application for preliminary plat for Butler Addition hereafter referred to as Development; and WHEREAS, City staff has completed a review of the Development based on the following: • Certificate of Survey and Resource Inventory Map prepared by EG Rud & Sons, Inc. dated February 8, 2021 • Landscape Plan prepared by Plowe Engineering dated March 8, 2021 • Preliminary Plat prepared by EG Rud & Sons, Inc. dated February 8, 2021 • Tree Inventory/Removals prepared by EG Rud & Sons, Inc. dated March 8, 2021 • Civil Plan Set prepared by Plowe Engineering dated March 8, 2021 • Report of Geotechnical Exploration for 7870 Meadow View Trail prepared by ITCO Allied Engineering Company dated February 26, 2021 • Drainage Calculations prepared by Plowe Engineering, Inc. dated March 8, 2021 WHEREAS, a public hearing was held before the Planning & Zoning Board on April 14, 2021 and the Board recommended approval of the Development with a 6-0; and NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes hereby makes the following: FINDINGS OF FACT Preliminary Plat Per Section 1001.013, Premature Subdivision: (1) General. Any concept plan, preliminary plat or final plat deemed premature pursuant to the following criteria shall be denied by the City Council. (2) Conditions for establishing a premature subdivision. A subdivision may be deemed premature should any of the following conditions not be met. (a) Consistency with the Comprehensive Plan. Including any of the following: 1. Land use plan; 2. Transportation plan; 3. Utility (sewer and water) plans; 4. Local water management plan; 5. Capital improvement plan; and 6. Growth management policies, including MUSA allocation criteria. 2 Butler Addition is consistent with the goals and policies of the comprehensive plan in regards to resource management, land use, housing, transportation and utilities as detailed in this staff report. The development is also consistent with the local water management plan, capital improvement plans and growth management policies. (b) Consistency with infill policies. A proposed urban subdivision shall meet the city's infill policies. Butler Addition is consistent with infill policies. The development is within the current Utility Staging Area 1A=2018-2025. The cost, operation and maintenance of the utility system is consistent with the normal costs projected by the water and sanitary system plans. No future utility costs are proposed. (c) Roads or highways to serve the subdivision. A proposed subdivision shall meet the requirements for level of service (LOS), as defined by the Highway Capacity Manual. Butler Addition meets the requirements for level of service (LOS). Lois Lane is a minor collector road and has capacity to accommodate one (1) new single family home. The city does not relinquish any rights of local determination. (d) Water supply. A proposed subdivision shall be deemed to have an adequate water supply. Butler Addition will have an adequate water supply. An 8” municipal watermain exists along Lois Lane. The existing house is on a private well and shall connect to municipal watermain. The new house shall also connect to municipal watermain. The water supply system has capacity to handle two (2) single family homes. (e) Waste disposal systems. A proposed subdivision shall be served with adequate waste disposal systems. Butler Addition will be served with an adequate waste disposal system. An 8” sanitary sewer main exists along Lois Lane. The existing house is connected to municipal sanitary sewer. The new house shall also connect to municipal sanitary sewer. The system has capacity for one (1) additional single family home. BE IT FURTHER RESOLVED by the City Council of The City of Lino Lakes hereby establishes the following conditions of approval: 1. The existing house on proposed Lot 1, Block 1, Butler Addition shall connect to municipal watermain. 2. The new house on proposed Lot 2, Block 1, Butler Addition shall connect to municipal watermain and municipal sanitary sewer main. BE IT FURTHER RESOLVED by The City Council of The City of Lino Lakes hereby approves the preliminary plat for Butler Addition subject to the following items being addressed: 1. City Planner Comments dated March 19, 2021 shall be addressed. 3 2. City Engineer Letter dated April 7, 2021 shall be addressed. 3. Environmental Coordinator Letter dated April 6, 2021 shall be addressed. 4. All Plan Sheets a. Meadow View Trail shall be spelled correctly. 5. Preliminary Plat: a. The building setback line on Lot 1 shall be revised to: i. Front Lot Line (Lois Lane) = 40 ft. ii. Rear Lot Line (south lot line) = 30 ft. iii. Side Lot Line (west lot line) = 30 ft. iv. Side Lot Line (east lot line) = 10 ft. Adopted by the Council of the City of Lino Lakes this 10th day of May, 2021. The motion for the adoption of the foregoing resolution was introduced by Council Member _______________and was duly seconded by Council Member ________________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _______________________________ Rob Rafferty, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk Otter Crossing City Council May 10, 2021 Land Use Application•Otter Crossing •Final Plat •1.46 acre parcel •Previous Site and Building Plan Review •7,800 sf commercial retail building •September 14, 2020: Council approved Preliminary Plat 2 •29 acre site •CSAH 14 (Main St) •Otter Lake Road •I-35E 3•Vacant commercial land •Agricultural row crops •2 wetlands •Relatively flat •McDonalds •Main Street Shoppes •Zoning = GB, General Business 4 •1 lot and 6 outlots •Lot 1, Block 1 = 1.43 acres = retail building •Remaining outlots shall be combined into 1 until future development •No underlying preliminary plat or development plans •Outlot D = private road •Incorporate into adjacent lot/outlot •Private road easement agreement (OEM) shall recorded •Similar to Main Street Shoppes Original Preliminary Plat 5 Revised Preliminary Plat Parcel Acres Purpose Lot 1, Block 1 1.46 Retail building Outlot A 25.83 Future development, wetlands & stormwater pond Otter Lake Road Right-of-Way 0.84 Road right-of-way CSAH 14 Road Right-of-Way 1.48 Road right-of-way TOTAL 29.61 6 Final Plat 7 Site Plan •7,800 sf retail building •6 units •Drive though east unit •Allowed accessory use •Meet Setback Requirements •Parking •53 stalls required •71 stalls provided •Private Sidewalk •Public Trail & Crossing •Landscaping •Final Site and Building Plan Review with Building Permit Application 8 •Exterior materials = brick, glass, EIFS •Earth tone dark gray, brown, light tan brick •Light gray, medium gray, dark bronze and teal EIFS •Building height = 23’ 8” < 45’ max allowed •Trash Enclosure = light tan and brown utility brick over concrete block. 7’6” height •Exterior materials meet ordinance requirements for material types, color and % 9 Stormwater Management •Original SW pond served only Lot 1 •Redesigned and enlarged as NURP Pond with infiltration basin •Accommodate future development •RCWD and City Engineer reviewed for compliance •Rate control •Water quality •Volume control Original SW Pond Revised SW Pond 10 Wetlands •Sept 4, 2019-Wetland Delineation •Wetland A = 2.59 acres •Wetland B = 1.19 acres •Not within WMC •No buffers required 11 Original Wetland Mitigation •3,600 sf impact = Private road •1,670 sf impact = SW outlet pipe •Wetland Mitigation = purchase 7,200 sf credits •Future development impacts? Proposed Wetland Mitigation •Revised stormwater pond and wetland mitigation •68,685 sf of impact •RCWD determined applicant reasonably avoided and minimized wetland impacts •Wetland Mitigation = purchase 1.5767 acres wetland bank credits Original Wetland Mitigation Proposed Wetland Mitigation Additional Comments•Signage •Comprehensive sign plan for building required •Only 2 ground signs allowed along Main Street and Otter Lake Rd •Impervious Surface = 75% •Max. allowed is 75% for GB Districts •Public Land Dedication 12 Otter Crossing 1.46 acres x $2,520 per acre =$3,679.20 -300 lf Trail Construction Costs =$9,113.50 TOTAL = ($5,434.30) Agreements•Stormwater Maintenance Agreement •Privately maintained stormwater facility •Development Agreement •Standard with final plat •Site Improvement Performance Agreement •Standard site and building construction •Declaration of Driveway Easement •Private ownership and maintenance of driveway & sidewalk •Declaration of Access Control •Otter Lake Drive -Future RI/RO when full access to north constructed 13 Findings of Fact-Final Plat1.The final plat substantially conforms to the approved preliminary plat subject to the conditions listed below. 2.The City Attorney has approved the status of title/property ownership related to the final plat. 3.A Development Agreement has been drafted and shall be executed. 4.Conditions attached to approval of the preliminary plat have been fulfilled or secured by the Development Agreement. 5.All fees, charges and escrow related to the preliminary or final plat have been paid in full.14 Recommendation •April 14, 2021: P&Z recommended approval of final plat 15 Council Consideration•i.Consider Resolution No. 21-40 Approving Final Plat •ii.Consider Resolution No. 21-41 Approving Development Agreement •iii.Consider Resolution No. 21-42 Approving Declaration of Access Control 16 Butler Addition City Council May 10, 2021 Land Use Application•Applicant = Scott Butler •Property = 7870 Meadow View Trail •Subdivide the existing parcel into 2 single family lots for purpose of constructing 1 new single family home •Rezoning •From R, Rural to R-1, Single Family Residential •Preliminary Plat •2 lots 2 3 EXISTING CONDITIONS •Parcel= 1.02 acres •Existing house built 1983 •Detached Garage •Corner Lot •Lois Lane •Meadow View Trail •No Wetland •No Floodplain 4 Rezone from R, Rural to R-1, Single Family Residential Density 5 •Guided low density residential development •Allows for 1.6 to 3.0 units per net acre. •Proposed net density of 1.96 upa is consistent with the Comprehensive Plan. Gross Area (acres)1.02 Wetlands & Water Bodies 0.00 Public Parks & Open Space 0.00 Arterial ROW 0.00 Other (Utility Transmission Easement)0.00 Other (Wetland Buffer Area)0.00 Net Area (acres)1.02 # of Units 2 Gross Density (units/acre)1.96 Net Density (units/acre)1.96 6 PRELIMINARY PLAT •Lot 1 = Existing house •Lot 2 = New house •Lois Lane •Minor Collector •Existing 60ft ROW •No additional ROW required •Meadow View Trail •Local Road •Existing 60ft ROW •No additional ROW required •Watermain •8”= Lois Lane •Existing House •Private well •Sanitary Sewer •8” = Lois Lane •Existing house is connected 7 PRELIMINARY PLAT •Storm Water •Lot 2 •Infiltration basin •Water treatment •Rate control •Public Land Dedication •1 lot = $3,160 Zoning Requirements 8 R-1 Requirements Lot 1 (Existing House) Lot 2 (Proposed House) Min. Lot Size 10,800 sf 24,975 sf 19,4251 sf Min. Lot Width --Corner Lot 100 ft 135.02 ft NA --Interior Lot 80 ft NA 105.00 ft Min. Lot Depth 135 ft 185.0 ft 185.0 ft Building Setback (ft) -From Streets3 30ft 40ft 39.6 ft (Meadow View) 73.0 ft (Lois Lane)40 ft -Rear Yard --Principal 30 ft 37.7 ft 94.3 ft -Accessory 5 ft 61.3 ft Future -Side Yard --Principal 10 ft 71.1 ft 25.3 ft & 33.4 ft --Accessory 5 ft 55.2 ft 28.5 ft Impervious Surface 40%11.2%16.6% 1The gross lot area is 19,425 sf. The net lot area is 13,435 sf after subtracting the oversized rear yard 5,990 sf easement. 2Lois Lane is the front lot line. 3Lois Lane is minor collector roads. Subdivision OrdinanceBlocks and Lots •Preliminary plat contains Lot 1 and Lot 2, Block 1, Butler Addition. Easements •Standard drainage and utility easements at least 5 and 10 feet wide are provided along all lot lines. 9 Comprehensive Plan•Resource Management •No natural resources are impacted •Land Use Plan •Low density residential development •Housing Plan •Compatible with adjacent single family homes 10 Comprehensive Plan•Transportation •Lois Lane is a minor collector road •Capacity to accommodate 1 new single family home. •Sanitary Sewer Plan •Water Supply Plan 11 Environmental Board •Environmental Board reviewed the preliminary plat on March 31, 2021. •They recommended approval of the project with conditions: •tree protection fencing •use of biologs for erosion control 12 Planning & Zoning Board•April 14, 2021: •Held public hearing •No public comments •Board recommended approval of rezoning and preliminary plat 13 Findings of Fact-Rezoning•The development is consistent with residential land use and density requirements. •Safe transportation corridors and public utilities also serve the development. 14 Findings of Fact-Rezoning(a)The proposed action has been considered in relation to the specific policies and provisions of and has been found to be consistent with the official City Comprehensive Plan. •The proposed Butler Addition residential subdivision is consistent with the goals and policies of the comprehensive plan in regards to •resource management, land use, housing, transportation and utilities. 15 Findings of Fact-Rezoning(b)The proposed use is or will be compatible with present and future land uses of the area. •The proposed Butler Addition development is compatible with the present and future land uses of the area. •Existing and future land use to the north, south, east and west is residential. 16 Findings of Fact-Rezoning(c)The proposed use conforms with all performance standards contained herein. •The proposed Butler Addition development conforms with zoning ordinance performance standards for R-1, Single Family Residential districts. 17 Findings of Fact-Rezoning(d)The proposed use can be accommodated with existing public services and will not overburden the City’s service capacity. •The proposed Butler Addition development can be accommodated with existing public services and will not overburden the City’s service capacity. •The site is served by 8” municipal watermain and 8” sanitary sewer. •The public water and sanitary system have capacity for two (2) single family lots. 18 Findings of Fact-Preliminary Plat(a)Consistency with the Comprehensive Plan. Including any of the following: 1.Land use plan; 2.Transportation plan; 3.Utility (sewer and water) plans; 4.Local water management plan; 5.Capital improvement plan; and 6.Growth management policies, including MUSA allocation criteria. 19 Findings of Fact-Preliminary Plat(b)Consistency with infill policies.A proposed urban subdivision shall meet the city's infill policies •Butler Addition is consistent with infill policies. •The development is within the current Utility Staging Area 1A=2008-2015. 20 Findings of Fact-Preliminary Plat(c)Roads or highways to serve the subdivision. •Butler Addition meets the requirements for level of service (LOS). •Lois Lane is a minor collector road and has capacity to accommodate one (1) new single family home. 21 Findings of Fact-Preliminary Plat(d)Water supply. •Butler Addition will have an adequate water supply. (e)Waste disposal systems. •Butler Addition will be served with an adequate waste disposal system. 22 Council Consideration•Consider First Reading of Ordinance No. 03-21 Rezoning Property from R, Rural to R-1, Single Family Residential •Consider Resolution No. 21-39 Approving Preliminary Plat 23 1 CITY COUNCIL AGENDA ITEM 6B STAFF ORIGINATOR: Katie Larsen, City Planner MEETING DATE: May 10, 2021 TOPIC: Otter Crossing Final Plat i. Consider Resolution No. 21-40 Approving Final Plat ii. Consider Resolution No. 21-41 Approving Development Agreement iii. Consider Resolution No. 21-42 Approving Declaration of Access Control VOTE REQUIRED: 3/5 REVIEW DEADLINE: Complete Application Date: March 11, 2021 60-Day Review Deadline: May 10, 2021 60 Day Extension Review Deadline: July 9, 2021 Environmental Board Meeting: N/A Park Board Meeting: N/A Planning & Zoning Board Meeting: April 14, 2021 City Council Meeting: May 10, 2021 INTRODUCTION The applicant, Tyme Properties, LLC, submitted a land use application for the final plat of Otter Crossing. The plat creates a 1.46 acre parcel for the purpose of constructing a 7,800 sf commercial retail building. This staff report is based on the following information: • Preliminary Plat prepared by Pioneer Engineering revision date March 12, 2021 • Final Plat prepared by Pioneer Engineering received on March 5, 2021 • Storm Water Management Plan prepared by Pioneer Engineering revision date April 23, 2021 • Otter Crossing Final Utility & Construction Plans prepared by Pioneer Engineering revision date April 20, 2021 2 • Geotechnical Exploration Report prepared by Haugo GeoTechnical Services addendum dated March 9, 2021 • Cost Estimates prepared by Pioneer Engineering • Title Commitment issued by First American Title Insurance Company dated April 1, 2021 Previous Council approvals: • September 14, 2020: Resolution No. 20-98 Approving Preliminary Plat ANALYSIS Existing Site Conditions The 29 acre site is located in the northwest quadrant of Otter Lake Road and CSAH 14 (Main Street). The site is currently vacant commercial land that is being used for agricultural row crops. The soils range from lean clay to poorly graded sand clay. Hydrologic soil groups consist of a combination of B/D, B, C and B/D. Groundwater was encountered at 3 to 12.5 ft below ground surface. Topography is general flat. Wetlands exist on the site. Zoning and Land Use The parcel is zoned GB, General Business and allows for retail business as a permitted use. Current Zoning GB, General Business Current Land Use Vacant Commercial Future Land Use per CP Commercial Utility Staging Area 1A=2008-2015 Subdivision Ordinance Conformity with the Comprehensive Plan and Zoning Code The preliminary plat and final plat are consistent with the comprehensive plan for commercial development and zoning code requirements for GB, General Business as detailed below. Blocks and Lots The final plat contains Lot 1, Block 1 and Outlot A, Otter Crossing. The outlot is for future development. 3 Parcel Acres Purpose Lot 1, Block 1 1.46 Retail building Outlot A 25.83 Future development, wetlands & stormwater pond Otter Lake Road Right-of-Way 0.84 Road right-of-way CSAH 14 Road Right-of-Way 1.48 Road right-of-way TOTAL 29.61 The previously proposed Outlots A, B, C, E and F were combined and platted as Outlot A until time of future development. The outlot will then be preliminary and final platted. This is similar to the development of Main Street Shoppes to the east of Otter Lake Road for commercial development. The preliminary plat includes the delineated wetland and acreage at 4.36 acres. Streets and Alleys A private road and sidewalk from Otter Lake Road extends west across the north boundary of Lot 1, Block 1, Otter Crossing. The private road is proposed within Outlot A. A Declaration of Driveway Easement has been drafted and will be recorded over the private road. It details the ownership and maintenance responsibility of the private road and sidewalk are the developers. The Declaration has been revised to also include the sidewalk and a proper exhibit and legal description. The sidewalk shall also extend to the west lot line. No public street improvements are required except for a southbound right turn lane from Otter Lake Road onto CSAH 14 (Main Street) and traffic signal improvements. The private road has been revised from 28ft wide back to back to 32 ft wide back to back. An additional 60 ft of road right-of-way is being dedicated along Otter Lake Road and over a 35 ft wide strip that was acquired by the City in 2013 for the purpose of constructing Otter Lake Road. Similar to Main Street Shoppes, a Declaration of Access Control has been drafted. The Declaration states the private access road to the development will have full access to Otter Lake Road upon completion, but such full access must be reduced to right-in, right-out access upon further extension of the Otter Lake Road to the north. Staff notes the private road will eventually extend north to serve future development and connect to the future full access at Otter Lake Road. Previous wetland impact concerns related to the future road extension have been eliminated because the wetland is being mitigated in accordance to WCA Notice of Decision issued January 27, 2021. Easements 4 Standard drainage and utility easements at least 10 feet wide have been provided along the lot lines of Lot 1, Block 1. A drainage and utility easement is also provided over the private road, stormwater pond facilities and wetland. An easement will not be required over the northern wetland since it is anticipated this wetland will be impacted and mitigated in the future. An easement may be required at that time. Previously recorded highway easements and utility easements along CSAH 14 (Main Street) exist on site. Public Land Dedication An 8.5 ft wide bituminous trail approximately 300 lf will be constructed along the west side of Otter Lake Road. The public trail will be installed by the developer and maintained by the City. The City will collect a cash fee of $2,520 per acre minus trail construction costs in lieu of land dedication for commercial development for Lot 1, Block 1, Otter Crossing. Otter Crossing 1.46 acres x $2,520 per acre = $3,679.20 - Trail Construction Costs = $9,113.50 TOTAL = ($5,434.30) The negative cash balance will be carried over and balanced with future phases of development. Site and Building Plan Review A preliminary site and building plan review was completed with the preliminary plat review. Overall, the proposed commercial building meets ordinance and performance standard requirements. Final site plan, landscaping, architectural and signage plans will be reviewed with the building permit application. The following is narrative from the preliminary plat review. Site Plan The applicant is proposing to construct a 7,800 sf commercial retail building with 6 units on Lot 1, Block 1, Otter Crossing. The site plan indicates a drive-through service on the east side of the building which is allowed as an accessory use in the GB, General Business district. The site plan provides an area on the southwest and southeast corner of the building for accessory outdoor dining or seating facility. This will require an Administrative Permit to be submitted by the future tenant. A 5 ft wide private concrete sidewalk is shown along the north lot line. A public trail will be constructed on the west side of Otter Lake Road with connection to the development and pedestrian crossing at the CSAH 14 intersection. 5 Lot Size and Setbacks The front lot line is along CSAH 14 (Main Street) because it is the public road right-of-way. The rear lot line is along the private road. GB Requirements Lot 1, Block 1 Otter Crossing Min. Lot Size 20,000 sf 62,181 sf 63,469 sf Min Lot Width 100 ft 240 ft 245 ft Setbacks-Street Required Proposed Principal Building-CSAH 14 (arterial) 40 ft 110 ft 132 ft Principal Building-Otter Lake Road (collector) 40 ft 45 ft Parking Lot 15 ft 15 and 20 ft Setbacks-Side Yard (west) Required Proposed Principal Building 10 ft 75 ft Accessory Building 10 ft NA Parking Lot/Driveway 10 ft 10 ft Setbacks-Rear Yard (Private Road) Required Proposed Principal Building 30 ft 50 ft Accessory Building (trash enclosure) 5 ft 14 ft Parking Lot/Driveway 10 ft 10 ft Architectural Plans and Exterior Building Materials Per the preliminary plat plan review, the retail building is single story with exterior materials consisting of brick, glass and EIFS. The color palette consists of earth tone dark gray, brown, light tan brick and light gray, medium gray, dark bronze and teal EIFS. Metal canopy and fabric awnings also accent the building. 6 The ordinance allows for stucco or EIFS on no more than 30% of the primary front building elevation and no more than 60% of any side or rear building elevation. The primary front elevation has 14% EIFS and rear elevation has 47% EIFS and the sides have 26% and 19%. The materials and percentages are compliant with performance standards. The building height is 23’ 8” which is less than that maximum 45 ft allowed. A trash enclosure is proposed on the north side of building. Construction details provided on Sheet A3 indicate light tan and brown utility brick over concrete block. The gate is painted metal deck swing gate that has 100% opacity. The enclosure is 7’ 6” in height. The trash enclosure meets performance standards. Per Sheet A3, the mechanical equipment is located on the rooftop and screened by parapets. The building will be sprinkled for fire suppression. Drive-through The east end cap suite is proposed to have a drive-through for a coffee shop or fast food restaurant. Drive-through service facilities are allowed accessory uses in the GB, General Business District. The drive-through meets the performance standards except for the following comments that shall be addressed at the time of building permit application: 1. Details of order board intercom shall be provided. 2. Photometric plan shall include service lane lighting. 3. Additional 30 inch high coniferous landscape screening shall be provided along the Otter Lake Road right-of-way to screen the drive-through. Outdoor Lighting Per Section 1007.043(6)(d), no light source shall exceed 1.0 foot candle onto right of way or 0.4 foot candle onto adjacent property. Sheet Sl-1, Site Photometric Plan indicates light sources exceeding these limits and shall be revised. Light fixtures on the both the building and 28 ft high poles are down lit and cutoff as required by city code. Architectural entry access lights are allowed on the front and side elevations. Off-Street Parking Requirements Sheet A1 indicates 6 potential tenant spaces (5 retail and 1 restaurant/drive-through). Per Section 1007.044(6), retail stores require 1 space per 200 sf of floor area and fast food requires 15 spaces per 1,000 sf gross floor area. This would require 26 retail parking stalls and 27 restaurant parking stalls for a total of 53 stalls required. The site plan provides 71 parking stalls so this requirement is met. It should be noted that any retail space proposed for any use other than retail (i.e. restaurant) shall meet the parking requirement ordinance. Grading Plan and Stormwater Management 7 Per the Storm Water Management Plan prepared by Pioneer Engineering revised April 23, 2021, the existing topography can be divided into 3 portions. The northern section of the property is generally flat agricultural land used for row crops. This area drains to the northeast to an existing wetland area which then flows to the north. The southern portion of the property is made up of primarily flat agricultural land that is used for row crops. This area drains to a large wetland toward the center which outlets at the southwest corner through a culvert under CSAH 14. The last portion of the property is a small portion on the east side of the property that drains to the existing storm sewer on Otter Lake Road. The parking lot runoff for this commercial development will be collected in a storm sewer system which will connect to the proposed private road to the north. This storm sewer will be routed to the west where a basin with connected filtration cell will be constructed to abut the existing wetland. This basin will outlet to the existing Wetland A. This wetland will outlet through the culvert located at the southwest, which drains under CSAH 14. The original stormwater basin was designed to treat only runoff from Lot 1 and the private road. The stormwater management facility has been redesigned and enlarged as a NURP pond with filtration area to accommodate more runoff for future development. The City Engineer and RCWD have reviewed the facility and determined it is compliant for rate control, water quality and volume control. The stormwater management facilities (stormwater pond and storm sewer pipes) will be owned and maintained by the developer and covered by a Declaration for Maintenance of Stormwater Facilities. Public Utilities The new retail building will be municipally served by an 8” PVC sanitary sewer and an 8” DIP watermain located along the private road that extends from Otter Lake Road. The utilities will be owned and maintained by the City. Tree Preservation and Mitigation Standards The following Tree Preservation and Landscaping comments are from the July 29, 2020 Environmental Board staff report and May 3, 2021 Environmental Coordinator letter. A tree survey will not be required for this site, because there are no trees over 6 inch DBH to survey. Preservation and mitigation standards do not apply to this site. Open Areas Landscape Standards Open space plantings associated with the stormwater pond and infiltration basin will be addressed by future developments’ planting requirements. Buffer and Screen Standards 8 The purpose of this requirement is to separate and buffer different land use types, screen roads and parking, and screen utility and loading areas. Continuous, year-round planting screens require, at the minimum, a double row of plants with triangulated spacing. This project calls for a 30 inch high planting screen. Continuous screen has been added on the north perimeter. Planning staff also notes the 30 inch screen is required to provide year round screening and therefore, should be coniferous shrubs. This coniferous screening has been provided. Buffer and screen standards have been met. Canopy Cover Canopy cover standards call for a minimum of 40% canopy coverage. Canopy coverage values are calculated per tree based on the anticipated size 15 years after planting, and the distance to hardscape edge from the planting location. Vehicular hardscape planned: 34,276 34,310 sq ft Canopy cover requirement: 13,710 13,724 sq ft Canopy cover provided: 8,675 13,900 sq ft Canopy cover standards have been met. Foundation Landscaping The purpose of these standards is to soften and enhance building architecture, define access points, add color and seasonal interest, and to blend buildings in with the natural environment. These standards apply to building fronts and sides facing public or private streets. 2 large trees and 6 large shrubs are required per 100 linear feet of building. These plants should be within 30 feet of the building. The following substitutions are allowable: 1 large tree = 1.5 medium or 2 small trees 1 large shrub = 1.5 medium or 3 small shrubs The plans indicate foundation plantings of 2 large trees and 33 large shrubs (or large shrub equivalents in medium and small shrubs). • 2 large trees • 5 large shrubs • 35 medium shrubs • 15 small shrubs These plants are all located on the west, east, and south building faces. The foundation landscaping standards do allow flexible planting locations where service areas or other constraints make the standards difficult to meet. In this case, the intensive use planned for the north and east perimeters would make foundation plantings prohibitive. The trees and 9 shrubs on the west building face, along with the continuous buffer and screen plantings on the north and east perimeters will suffice in softening the building appearance and meeting the intent of the foundation planting standards for these building faces. The foundation landscape standards have been met. Sod and Ground Cover Standards All areas not otherwise improved in accordance with the approved site plans shall have a minimum depth of 4 inches of topsoil and be sodded including boulevard areas. Seed may be provided in lieu of sod in certain cases, including when the area is adjacent to natural areas or wetlands. Area around the storm water pond from normal water level to high water level will be seeded with MnDOT 33-261, Stormwater South and West, which is a native mix of grasses, forbs, sedges, and rushes for stormwater pond edges. Above high water level in the storm water pond area calls for 35-621 Dry Prairie Southeast. The area north of Lot 1 will also have MnDot 35-621 to create a buffer strip for Wetland A near the impacted portion of the wetland. The remainder of the site will be seeded with MnDot 25-141 Mesic Roadside General or sodded. The Seeding Plan indicates this mix covering areas of the site that call for sod on the Landscape Plan. These two plan sheets should match. Sheet L1, Landscape Plan notes irrigation designed by others. An irrigation plan shall be submitted with the building permit. Boulevard Trees Boulevard trees are not required for commercial developments. Signage A comprehensive sign plan for the entire building is required for multi-occupancy business buildings. The comprehensive sign plan shall be submitted with the sign permit application for all wall and monument signs. Preliminary review of the ground monument signs indicates they meet size and height requirements. Ground signs are only allowed along public road frontage i.e. CSAH 14 (Main Street) and Otter Lake Road. Impervious Surface Coverage The allowed impervious surface coverage in the GB, General Business District is 75%. The lot area of Lot 1 is 1.46 acres with 1.07 acres impervious which equals 73%. The proposed post- development impervious surface coverage is compliant. 10 Traffic Study A formal traffic study is not required. The updated 2020 I-35E Corridor AUAR analyzed traffic impacts for commercial development along this entire corridor. The proposed retail building is consistent with AUAR Land Use Scenarios #1 and #2 for commercial development. Otter Lake Road and CSAH 14 (Main Street) are A Minor Reliever and A Minor Collector roads, respectively and have structural capacity to handle the commercial traffic. Alternative Urban Areawide Review (AUAR) The site is within the 2005 I-35E Corridor AUAR environmental review boundary. The AUAR was updated in May 2020. The AUAR identifies this site as commercial in the land use scenarios. The Otter Crossing project is consistent with commercial development. No further environmental assessment is required. Wetlands A wetland delineation report was completed by Midwest Natural Resources on September 4, 2019. A WCA Notice of Decision was issued by RCWD on December 9, 2019. Two wetlands were delineated. Wetland A is 2.59 acres and Wetland B is 1.19 acres. Per RCWD CAPROC dated January 27, 2021, a complete replacement plan application was submitted to the District for proposed wetland impacts on 08-27-20 and was subsequently noticed to the TEP on 09-04-2020. The application initially included 5,270 ft2 of wetland impact associated with the installation of a private drive off Otter Lake Road. The TEP expressed concern with the proposed subdivision of the site and what that might mean for future development and additional wetland impacts. In addition, the proposed drainage map showed that the drainage to the eastern portion of Wetland A would be reduced by 46%. The applicant updated the application to show the anticipated future development of the parcel including the extension of the private drive to the northern part of the property. The applicant demonstrated that even if direct impacts to the eastern portion of Wetland A were avoided, the development of the parcel will not be able to provide sufficient hydrology to the wetland. The wetland impact amount was therefore increased to 68,685 ft2 to represent the secondary impact from effectively draining portions of Wetland A. The applicant’s MnRAM analysis determined that Wetland A is moderately or severely degraded. The replacement ratio is 1:1. The application also includes the excavation of 1,670 ft2 in the western part of Wetland A. The excavation is to allow the storm sewer to work across the site. A channel will be excavated to the elevation of the outlet pipe that is located off-site in the southwest corner of Wetland A. This impact does not require replacement as WCA does not regulate excavation in type 1 or 2 wetlands if the work does not convert to non-wetland. The excavation is proposed to be less than 2 feet and will not result in converting the wetland to deep water habitat. The applicant has provided an alternative analysis, including discussion of impact avoidance, minimization and mitigation. The applicant has reasonably avoided and minimized wetland impacts to the extent possible. The applicant has addressed all comments and the TEP concurs that WCA impact sequencing is met. 11 Wetland replacement will occur via wetland bank account #1522, in the amount of 1.5767 acres. The wetland bank is within the same major watershed and BSA of the project site. Impact/Mitigation Table Wetland Name Impact Amount Replacement Ratio Required Wetland A 68,685 sf of fill (1.5767 acres) 1:1 68,685 sf (1.5767 acres) Wetland B 1,670 sf NA NA TOTAL 68,685sf (1.5767 acres) 1:1 68,685 sf (1.5767 acres) The wetlands are not within the Wetland Management Corridor (WMC) so a WMC wetland buffer is not required. A drainage & utility easement is being dedicated over the stormwater pond and a portion of the wetland. Additional easements will be dedicated in conjunction with future development of the outlots. Shoreland District The development is not located in the Shoreland District. Floodplain There is no FEMA floodplain on site. Public Safety Comments Deputy Director L’Allier notes a hydrant shall be located closer to the Fire Department Connector (FDC) on the north side of the building near the transformer. The hydrant has been relocated and approved by the Deputy Director. The Police Division reviewed the plans and had no issues that needed to be addressed. Environmental Board The Environmental Board reviewed the development proposal at their July 29, 2020 meeting. The Board recommended approval with minor revisions required. Comprehensive Plan 12 The preliminary and final plat are consistent with the Comprehensive Plan is regards to resource management system, land use plan, housing plan, transportation plan and sanitary sewer and water supply plan. Anoka County Highway Department The final plat and plan set were distributed to Anoka County Highway Department on March 12, 2021. The applicant shall receive approval from the County prior to issuance of a City building permit. Title Commitment The City Attorney has reviewed and approved the title commitment and final plat. Agreements Stormwater Maintenance Agreement Per the City Engineer letter dated May 5, 2021, the applicant will be required to have their own declaration for stormwater maintenance for the private storm sewer. Development Agreement A Development Agreement as it relates to the final plat has been drafted by the City and shall be executed by the Developer. Site Improvement Performance Agreement A Site Improvement Performance Agreement is required in conjunction with construction of the retail building. This agreement will be drafted by the City and shall be executed by the Developer. Declaration of Driveway Easement The Declaration of Driveway Easement has been revised accordingly. Declaration of Access Control The Declaration of Access Control has been revised accordingly. Findings of Fact The Findings of Fact for Otter Crossing Final Plat are detailed in Resolution No. 21-40. RECOMMENDATION Staff recommends approval of the final plat. 13 The Planning & Zoning Board reviewed the Otter Crossing Final Plat on April 14, 2021 and recommended approval with a 6-0 vote. ATTACHMENTS 1. Resolution No. 21-40 2. Final Plat 3. Resolution No. 21-41 4. Development Agreement 5. Resolution No. 21-42 6. Declaration of Access Control 1 CITY OF LINO LAKES RESOLUTION NO. 21-40 RESOLUTION APPROVING THE OTTER CROSSING FINAL PLAT WHEREAS, the City received a land use application for the Otter Crossing Final Plat hereafter referred to as Development; and WHEREAS, City staff has completed a review of the proposed Development based on the following plans and information: • Preliminary Plat prepared by Pioneer Engineering revision date March 12, 2021 • Final Plat prepared by Pioneer Engineering received on March 5, 2021 • Storm Water Management Plan prepared by Pioneer Engineering revision date April 23, 2021 • Otter Crossing Final Utility & Construction Plans prepared by Pioneer Engineering dated April 20, 2021 • Geotechnical Exploration Report prepared by Haugo GeoTechnical Services addendum dated March 9, 2021 • Cost Estimates prepared by Pioneer Engineering • Title Commitment issued by First American Title Insurance Company dated February 5, 2021; and WHEREAS, the City Council the approved the Preliminary Plat with Resolution No. 20- 98 on September 14, 2020; and WHEREAS, the Planning & Zoning Board reviewed and recommended approval of the Development on April 14, 2021; and WHEREAS, the proposed Development is not considered premature and meets the performance standards of the subdivision and zoning ordinance; and NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes hereby makes the following: FINDINGS OF FACT 1. The final plat substantially conforms to the approved preliminary plat subject to the conditions listed below. 2. The City Attorney has approved the status of title/property ownership related to the final plat. 3. A Development Agreement has been drafted and shall be executed. 4. Conditions attached to approval of the preliminary plat have been fulfilled or secured by the Development Agreement. 5. All fees, charges and escrow related to the preliminary or final plat have been paid in full. 2 BE IT FURTHER RESOLVED by the City Council of the City of Lino Lakes hereby approves Otter Crossing Final Plat subject to the following conditions: 1. The private road and sidewalk will be privately owned and maintained as detailed in the Declaration of Driveway Easement. 2. The stormwater facilities (e.g. stormwater pond and pipe) will be privately owned and maintained as detailed in the Declaration for Maintenance of Stormwater Facilities and Declaration of Driveway Easement. 3. The municipal watermain, sanitary sewer and trail will be publicly owned and maintained. 4. A comprehensive sign plan for the entire building is required for multi-occupancy business buildings. 5. Any retail space proposed for any use other than retail (i.e. restaurant) shall meet the City’s parking ordinance requirements. 6. The Declaration of Access Control is required that regulates access along Otter Lake Road. 7. A Site Improvement Performance Agreement is required in conjunction with the construction of the retail building. BE IT FURTHER RESOLVED by the City Council of the City of Lino Lakes hereby approves Otter Crossing Final Plat subject to the following items being addressed prior to release of the mylars: 1. A Development Agreement shall be approved by the City Council, executed and recorded against the property. 2. A draft copy of the Declaration for Maintenance of Stormwater Facilities shall be submitted to the City for review and approval prior to recording. a. The document shall be in favor of both RCWD and the City of Lino Lakes. 3. Any staff comments requiring revisions to the final plat shall be addressed. The following items shall be addressed prior to issuance of a grading permit: 1. City Engineer Letter dated May 5, 2021 2. A copy of the RCWD permit shall be submitted to the City. 3. Recorded copies of the following documents shall be submitted to the City: a. Development Agreement b. Declaration of Driveway Easement c. Declaration of Access Control d. Declaration for Maintenance of Stormwater Facilities The following items shall be addressed prior to issuance of building permit: 1. Final site plan, landscaping, architectural, lighting and signage plans shall be reviewed and approved by the City. 2. City Planner Comments dated April 6, 2021 3 3. Anoka County Highway Department comments The following items shall be addressed prior to issuance of Certificate of Occupancy: 1. A comprehensive sign plan for the entire building is required for multi-occupancy business buildings. Adopted by the Council of the City of Lino Lakes this 10th day of May, 2021. The motion for the adoption of the foregoing resolution was introduced by Council Member ______________________and was duly seconded by Council Member ______________and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ______________________________ Rob Rafferty, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk CIVIL ENGINEERS LAND PLANNERS LAND SURVEYORS LANDSCAPE ARCHITECTS CIVIL ENGINEERS LAND PLANNERS LAND SURVEYORS LANDSCAPE ARCHITECTS CIVIL ENGINEERS LAND PLANNERS LAND SURVEYORS LANDSCAPE ARCHITECTS CITY OF LINO LAKES RESOLUTION NO. 21-41 RESOLUTION APPROVING DEVELOPMENT AGREEMENT FOR OTTER CROSSING WHEREAS, the City Council approved the final plat for Otter Crossing with Resolution No. 21- 40 on May 10, 2021; and WHEREAS, the City’s subdivision ordinance and conditions of approval require the execution of a development agreement between the Developer and the City of Lino Lakes. NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes hereby approves the Development Agreement between BLino, LLC and the City of Lino Lakes for Otter Crossing and authorizes the Mayor and City Clerk to execute such agreement on behalf of the City. Adopted by the Council of the City of Lino Lakes this 10th day of May, 2021. The motion for the adoption of the foregoing resolution was introduced by Council Member _______________and was duly seconded by Council Member ________________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _______________________________ Rob Rafferty, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk DEVELOPMENT AGREEMENT Otter Crossing THIS AGREEMENT is made this _____ day of ____________, 2021, by and between the City of Lino Lakes (“City”), a Minnesota municipal corporation, and BLino, LLC (“Developer”). 1. Subdivision. Developer received preliminary plat approval from the City by Resolution No. 20-98 for a plat known as Otter Crossing (“Subdivision”). Unless otherwise stated, all terms and conditions of this Agreement relate to work within the Subdivision. 2. Final Plat Approval. The City’s approval of the final plat of Otter Crossing is contingent upon execution and delivery of this agreement, all required petitions, bonds, security, and other documents required by the City, and satisfaction of all conditions of approval required by Resolution No. 21-41. The Final Plat is attached hereto as Exhibit A. 3. Phased Development. The City may refuse to approve final plats of subsequent additions of the plat if the Developer has breached this Agreement and the breach has not been remedied. Development of subsequent phases may not proceed until Development Agreements for such phases are approved by the City and are fully executed. 4. Developer Plans. a. The Subdivision shall be developed in accordance with the following Developer Plans, original copies of which are on file with the City Engineer. The Developer Plans may be prepared and revised after entering into this Agreement but must be approved by the City before commencement of any work. If the plans vary from the written terms of this Agreement, this Agreement shall control. b. The Developer Plans as of the date of this Agreement are: i. Otter Crossing final plat containing 2 sheets, prepared by Pioneer Engineering, received March 11, 2021. ii. Otter Crossing Final Utility & Construction plans containing 17 sheets and L1, prepared by Pioneer Engineering, revised April 4, 2021. 5. Permits. The Developer shall be responsible for securing all site grading and development approvals and all other required permits from all appropriate Federal, State, Regional and Local jurisdictions prior to the commencement of site grading or construction and prior to the City awarding construction contracts for public improvements, if any. Notwithstanding the forgoing, site grading will be allowed to proceed concurrently with the traffic signal design and approval process for the Anoka County Highway Department Access Permit. Otter Crossing Development Agreement May 10, 2021 page 2 6. Developer Improvements. The Developer shall secure a contractor to install the improvements described in this paragraph, or otherwise required herein to be installed by Developer, hereinafter referred to as the “Developer Improvements,” which contractor shall be approved by the City. The Developer Improvements shall be constructed per the City Standard Specifications for Construction 2021 current version. The cost of Developer Improvements is as shown on Exhibit B attached hereto. All Developer Improvements shall require City inspection and approval and, where appropriate, the approval of any other governmental agency having jurisdiction. The Developer shall construct and install at the Developer’s expense the following improvements according to the following terms and conditions: a. Site Grading i. No grading shall commence until all requirements of the Rice Creek Watershed District (RCWD) have been satisfied. ii. All site grading shall be conducted in accordance with the grading plan as approved by the City and in accordance with NPDES and RCWD requirements. The Developer shall perform the work in accordance with a Storm Water Pollution Prevention Plan (SWPPP) pursuant to Minnesota Pollution Control Agency (MPCA) requirements. b. Grading and Erosion Control i. The Developer shall grade the site to within 0.2 foot of the grades shown on the approved grading plan. No deviations will be allowed unless a revised plan is submitted and approved in writing by the City and all other regulatory agencies. ii. Lot 1, and the internal street contiguous with Lot 1, storm water storage ponds, and surface water drainage ways shall be graded prior to commencement of utility construction. Four inches of topsoil and a City approved seed mix shall be installed within disturbed areas, and seed mix information shall be provided to the City. iii. The Developer shall be responsible for ascertaining that site geotechnical and groundwater conditions are adequate and conforming with the grading and site improvement as proposed. The Developer shall provide testing from an approved testing company. iv. The Developer’s engineer shall certify in writing, with an as-built survey, that all grading complies with the approved grading plan prior to issuance of any building permits. Otter Crossing Development Agreement May 10, 2021 page 3 v. The Developer shall promptly clear dirt and debris within public rights-of- way and drainage and utility easements resulting from construction by the Developer, its purchasers, builders and contractors within five (5) days after notification by the City. The Developer shall be responsible for all necessary street and storm sewer maintenance, including street sweeping, until all home construction is completed, unless otherwise released by the City. Warning signs shall be placed when hazards develop in streets to prevent the public from traveling on them, including detour signs if necessary. If and when the streets become impassable, such streets shall be barricaded and closed. The Developer shall maintain a smooth, hard driving surface and adequate drainage on all temporary streets. c. Final street grading, subbase, gravel base, concrete curb and gutter, and bituminous base course and wear course shall be furnished and installed. d. Sidewalks, trails and street lighting shall be installed within 6 months of the bituminous base course. Extensions may be approved by the City Engineer, due to weather conditions, upon receipt of a written request in writing by the Developer to the City. In no case shall such extension extend beyond one year from the date of installation of bituminous base course. e. Storm sewers, when determined to be necessary by the City Engineer, including all necessary laterals, catch basins, inlets and other appurtenances, shall be furnished and installed. f. Sanitary sewer mains, laterals or extensions, including all necessary building services and other appurtenances, shall be furnished and installed. g. Water mains, laterals or extensions, including all necessary building services, hydrants, valves and other appurtenances, shall be furnished and installed. h. The Developer shall place iron monuments at all lot, block, and outlot corners and at all other angle points on boundary lines consistent with the final plat. Iron monuments shall be placed after all street and lawn grading has been completed in order to preserve the lot markers for future property owners. Lot corner irons on the back property line shall be installed so that the top of the iron corresponds to the finished ground elevation in accordance with the approved grading plan. Guard stakes shall be appropriately installed to mark these irons. i. Landscaping shall be furnished and installed in accordance with the approved plans. The landscaping shall be maintained by the Developer until accepted by the City’s Environmental Coordinator. Otter Crossing Development Agreement May 10, 2021 page 4 Developer shall be responsible for vegetative restoration of ponding areas, outlots, wetland mitigation areas, and other native planting areas identified on the plans in accordance with City Standard Specifications for Construction. Developer shall provide a contract with a qualified firm for the establishment and maintenance of all open space / native plant areas. Said contract shall cover a minimum of the 3 year establishment period, from the date of planting. j. The Developer shall arrange for all gas, telecommunications, cable, internet, electric, and other necessary private utility services to the Subdivision in accordance with City Code and State law. The utilities are required to be located within a joint trench along public roadways. Street light installations shall be initiated by the Developer with City Engineer approval. The Developer is solely responsible for the cost of private utility and internet installation. k. The Developer shall install mailboxes in accordance with Federal and Postal Service regulations. l. The Developer shall install conservation easement signs per City standard detail plates prior to the issuance of building permits. 7. Time of Performance. The Developer shall install all required improvements enumerated in Paragraph 6 by July 31, 2022. The Developer may request a reasonable extension of time from the City. If the extension is granted, it shall be conditioned upon updating the security posted by the Developer to reflect cost increases and the extended completion date. 8. City Improvements. No City installed improvements are proposed to be constructed for this subdivision. 9. Record Drawings. a. Upon project completion, Developer shall submit record drawings, in electronic format, of all public and private infrastructure improvements, including grading, sanitary sewer, watermain, storm sewer facilities, and roads, constructed by Developer. The files shall be drawn in Anoka County NAD 83 Coordinate system and provided in both AutoCAD .dwg and Adobe .pdf file formats. The plans shall include accurate locations, dimensions, elevations, grades, slopes and all other pertinent information concerning the complete work. b. The Developer shall submit certified compaction testing results for the site grading operations that certify that grading work meets pertinent compaction requirements for the project. Otter Crossing Development Agreement May 10, 2021 page 5 c. A summary of the record plan attribute data for the storm sewer, watermain, and sanitary sewer structures and pipes shall be submitted in the form of an Excel Spreadsheet as provided by the City Engineer. d. No securities will be fully released until all record drawings have been submitted and accepted by the City Engineer. 10. Faithful Performance of Construction Contracts and Security. a. The Developer will fully and faithfully comply with all terms and conditions of any and all contracts entered into by the Developer for the installation and construction of all Developer Improvements. Concurrent with the execution hereof by the Developer, the Developer will furnish to, and at all times thereafter maintain with the City, a cash deposit, certified check, or Irrevocable Letter of Credit, based on one hundred fifty (150%) percent of the total estimated cost of Developer’s Improvements as determined by the City Engineer. b. Irrevocable Letter of Credit. If an Irrevocable Letter of Credit is utilized, it shall be for the exclusive use and benefit of the City of Lino Lakes and shall state that it is issued to guarantee and assure performance by the Developer of all the terms and conditions of this Development Agreement and construction of all required improvements referenced therein in accordance with the ordinances and specifications of the City. The letter shall be in a form, and from a bank, as approved by the City. The City reserves the right to draw, in whole or in part, on any portion of the Irrevocable Letter of Credit for the purpose of guaranteeing the terms and conditions of this agreement. The Irrevocable Letter of Credit shall be automatically extended for additional periods of one year from present or future expiration dates on an annual basis, unless at least sixty (60) days prior to the expiration date, the Community Development Director and City Engineer, are notified by certified mail or overnight courier, that the Letter of Credit will not be extended. c. Alternatively, the Developer may enter into a Public Improvement Surety Agreement, not applicable. d. Reduction of Security. The Developer may request reduction of the Letter of Credit or cash deposit based on prepayment or the value of the completed improvements at the time of the requested reduction. 11. Warranty. The Developer warrants all utility work required to be performed by it against poor material and faulty workmanship for a period of two years after its completion and acceptance by the City. All new streets shall be warranted by the developer for a period of one year from the time the final inspection of the street is completed and accepted by the City Council. All trees, grass and sod shall be warranted to be alive, of good quality Otter Crossing Development Agreement May 10, 2021 page 6 and disease free for 12 months after planting. Prior to final acceptance of the Developer Improvements the City shall require a Performance Bond or Cash Escrow to cover the warranty provisions of this Agreement. The amount shall be determined by the City Engineer. 12. Dedication. The Developer shall dedicate to the City, at no cost to the City, any permanent or temporary easements that may be necessary for the construction and installation of the Developer Improvements. All such easements required by the City shall be in writing, in recordable form, containing such terms and conditions as the City shall determine. 13. Ownership of Improvements. Upon completion and City acceptance of the work and construction required by this Agreement, the public improvements lying within public rights-of-way and easements shall become City property without further notice or action unless the improvements are to be deemed private infrastructure. 14. Recording and Release. The Developer agrees that the terms of this Development Agreement shall be a covenant on any and all property included in the Subdivision. The Developer agrees that the City shall have the right to record a copy of this Development Agreement with the Anoka County Recorder to give notice to future purchasers and owners. This shall be recorded against the Subdivision described on Page 1. 15. Escrow for City’s Costs. a. The Developer agrees to establish a non-interest bearing escrow account with the City in an amount determined by the City Administrator or their designee for the payment of all costs incurred by the City related to the development of the Subdivision including, but not limited to, the following (See Exhibit B for breakdown of costs): i. Planning/ Review ii. Administration – 3% of Developer Improvement Costs iii. City Engineering and Legal iv. Street lighting installation (no public street lights required) v. Traffic signing improvements vi. Boulevard tree planting vii. Street, storm sewer and pond maintenance Otter Crossing Development Agreement May 10, 2021 page 7 viii. Property Taxes. Should the recording of the Final Plat occur after July 1st, any and all property taxes on any public property dedicated as a part of this plat shall be the responsibility of the Developer. b. If the above escrow amounts are insufficient, the Developer shall make such additional deposits as required by the City. The City shall have a right to reimburse itself from the Escrow with suitable documentation supporting the charges. 16. Developer Fees. At the time of execution of this Agreement, the Developer shall pay the following fees related to the development of the Subdivision (See Exhibit B for breakdown of costs): a. Park Dedication The Park Dedication Fee for this site is calculated as follows: Otter Crossing 1.46 acres x $2,520 per acre = $3,679.20 - Trail Construction Costs = $9,113.50 TOTAL = ($5,434.30) The negative cash balance will be carried over and balanced with future phases of development. b. The Developer shall pay 15 months of maintenance and energy costs for street lights installed. Not Applicable. c. GIS Mapping Fees d. Trunk Sewer Connection Fees The City established trunk utility connection fees to uniformly distribute the costs of public trunk sanitary sewer infrastructure. The Trunk Utility Connection Fee consists of two components; a Trunk Charge and an Availability Charge. Trunk Charge The trunk charge shall be paid at the time of subdivision approval or at the time of hook-up, whichever is first. Commercial/Industrial/Institutional (CII) trunk charges are based on a factor of 2.92 units per acre. Sanitary Sewer $1,630.00 Per Unit Otter Crossing Development Agreement May 10, 2021 page 8 Availability Charge Commercial/Industrial/Institutional availability charges shall be paid at the time of building permit. Fees are based on the number of sanitary access charge (SAC) units assigned by Metropolitan Council Environmental Services (MCES). City Sewer (CSAC) $1,525.00 Per SAC Unit Trunk sewer unit charges addressed under this paragraph are in addition to any SAC charges imposed by Metropolitan Council Environmental Services. An estimate of the total charge and the trunk utility credit for developer installed trunk oversizing is specified in Exhibit B. e. Trunk Water Connection Fees The City established trunk utility connection fees to uniformly distribute the costs of public trunk water infrastructure. The Trunk Utility Connection Fee consists of two components; a Trunk Charge and an Availability Charge. Trunk Charge The trunk charge shall be paid at the time of subdivision approval or at the time of hook-up, whichever is first. Commercial/Industrial/Institutional (CII) trunk charges are based on a factor of 2.92 units per acre. Water $2,341.00 Per Unit Availability Charge Commercial/Industrial/Institutional availability charges shall be paid at the time of building permit. Fees are based on the number of sanitary access charge (SAC) units assigned by Metropolitan Council Environmental Services (MCES). City Water (CWAC) $1,473.00 Per SAC Unit An estimate of the total charge and the trunk utility credit for developer installed trunk oversizing is specified in Exhibit B. f. Surface Water Management Area Charges Otter Crossing Development Agreement May 10, 2021 page 9 The City established a trunk area charge to uniformly distribute the costs of public trunk surface water infrastructure and water quality improvements. The Surface Water Management Charge shall be based on developable acreage, in the amount specified in Exhibit B. The charge shall be paid at the time of subdivision approval. 17. Assessment of Charges and Waiver of Rights. a. In consideration of the construction of City Improvements listed in Paragraph 8 and /or provision of sewer, water and storm water services, the Developer agrees that the costs of City Improvements together with Trunk Sewer Unit Charge, Trunk Water Unit Charge and the Surface Water Management Area Charge (collectively, “the Charges”) may be assessed against the Subdivision parcels. The Developer hereby waives any and all procedural and substantive objections to the special assessments, including notice and hearing requirements, any claim that the assessments exceed the benefit to the properties, and any right to appeal. b. Unless the Developer pays the entire balance owed for the Charges contemporaneously with the execution of this Agreement, the Developer shall provide to the City a cash escrow or irrevocable letter of credit in an amount equal to 35% of the total assessments for the Charges as estimated by the City Engineer (see Exhibit B). The letter of credit shall be in a form, and from a bank, as approved by the City. The letter of credit or cash escrow may be used by the City upon default by Developer in the payment of special assessments. The cash escrow or letter of credit shall remain in place throughout the term of the special assessments. The letter of credit may not be terminated without the City’s written consent. c. Developer, its heirs, successors or assigns, agrees that within 30 days after the date of sale of a lot, the Developer, its heirs, successors or assigns, at its own cost and expense, shall pay the entire unpaid charges assessed or to be assessed under this Agreement against such property. d. If a certificate of occupancy is issued before the special assessments have been levied, the Developer, its heirs, successors or assigns shall pay the City the sum of cash equal to 120% of the Engineer’s estimate of the special assessments for such Charges that would be levied against the property. Upon such payment the City shall issue a certificate showing the assessments are paid in full. Notwithstanding the issuance of said certificate, the Developer shall be liable to the City for any deficiency and the City shall pay the Developer any surplus arising from the payment based upon such estimate. Otter Crossing Development Agreement May 10, 2021 page 10 e. Acceleration of Special Assessments upon Default. In the event the Developer violates any of the covenants, conditions or agreements herein, violates any ordinance, rule or regulation of the City, County of Anoka, State of Minnesota or other governmental entity having jurisdiction over the plat or development, or fails to pay when due any installment of any special assessment levied pursuant to this agreement, or any interest thereon, the City at its option, in addition to its rights and remedies hereunder, after 10 days written notice to the Developer, may declare all of the unpaid special assessments which are then estimated or levied pursuant to this agreement due and payable in full, with interest. The City may seek recovery of such special assessments due and payable from the security provided herein. In the event that such security is insufficient to pay the outstanding amount of such special assessments plus accrued interest the City may certify such outstanding special assessments in full to the County Auditor pursuant to Minnesota Statutes section 429.061, subdivision 3, for collection the following year. The City, at its option, may commence legal action against the Developer to collect the entire unpaid balance of the special assessments then estimated or levied pursuant hereto, with interest, including reasonable attorney’s fees, and Developer shall be liable for such special assessments and, if more than one, such liability shall be joint and several. In addition to any other rights and remedies upon Developer’s default, the City may refuse to issue building permits and/or Certificates of Occupancy for any property within the Subdivision until such time as such default has been corrected to the satisfaction of the City. The Developer agrees to reimburse the City for all costs incurred by the City in the enforcement of this agreement, or any portion thereof, including court costs and reasonable engineering and attorneys’ fees, if the City prevails in any enforcement action. 18. Building Permits. No building permits shall be issued until: a. Site grading, certified compaction testing, City sewer, water, storm sewer, and bituminous base construction of the streets, temporary street signs, gas, electric, telecommunication, cable and internet are installed and approved by the City, except as provided below i. Model Homes: Not Applicable. 19. Special Provisions. a. The private road and sidewalk will be privately owned and maintained as detailed in the Declaration of Driveway Easement. b. The stormwater facilities (e.g. stormwater pond and pipe) will be privately owned and maintained as detailed in the Declaration for Maintenance of Stormwater and Declaration of Driveway Easement. Otter Crossing Development Agreement May 10, 2021 page 11 c. The municipal watermain, sanitary sewer and trail will be publicly owned and maintained. d. A comprehensive sign plan for the entire building is required for multi- occupancy business buildings. e. Any retail space proposed for any use other than retail (i.e. restaurant) shall meet the City’s parking ordinance requirements. f. The Declaration of Access Control regulates access along Otter Lake Road. g. A Site Improvement Performance Agreement is required in conjunction with the construction of the retail building. This will also include the on-site landscaping. 20. Hours of Construction Activity. All construction activity shall be limited to the hours as follows: Monday through Friday 7:00 a.m. to 7:00 p.m. Saturday 9:00 a.m. to 5:00 p.m. Sunday and Holidays No working hours allowed 21. Insurance. Developer or its general contractor shall take out and maintain until one year after the City accepted the Developer Improvements, public liability and property damage insurance covering personal injury, including death, and claims for property damage which may arise out of the Developer’s or general contractor’s work, as the case may be, or the work of its subcontractors or by one directly or indirectly employed by any of them. Limits for bodily injury and death shall be not less than Five Hundred Thousand and no/100 ($500,000.00) Dollars for one person and Two Million and no/100 ($2,000,000.00) Dollars for each occurrence; limits for property damage shall be not less than One Million and no/100 ($1,000,000.00) Dollars for each occurrence; or a combination single limit policy of Two Million and no/100 ($2,000,000.00) Dollars or more. The City, its employees, its agents and assigns shall be named as an additional insured on the policy, and the Developer or its general contractor shall file with the City a certificate evidencing coverage prior to the City signing the plat. The certificate shall provide that the City must be given ten days advance written notice of the cancellation of the insurance. The certificate may not contain any disclaimer for failure to give the required notice. 22. Developer’s Default. In the event of default by the Developer as to any of the work to be performed by it hereunder, the City may, at its option, perform the work and the Developer shall promptly reimburse the City for any expense incurred by the City, including but not limited to attorney and engineering fees, provided the Developer is first given notice of the work in default, not less than 48 hours in advance. This Agreement is a license for the City to act, and it shall not be necessary for the City to seek a court order for permission to enter the land. When the City does any such work, the City may, in addition to its other remedies, levy the cost in whole or in part as a special assessment against the Subject Property. Developer waives its rights to notice of Otter Crossing Development Agreement May 10, 2021 page 12 hearing and hearing on such assessments and its right to appeal such assessments pursuant to Minnesota Statutes, chapter 429. 23. General. a. Binding Effect The terms and provisions hereof shall be binding upon and inure to the benefit of the heirs, representatives, successors and assigns of the parties hereto and shall be binding upon all future owners of all or any part of the Subdivision and shall be deemed covenants running with the land, unless otherwise released pursuant to section 14 of this Agreement. b. Validity. If a portion, section, subsection, sentence, clause, paragraph or phrase in this agreement is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect or void any of the other provisions of the Development Agreement. c. Notices Whenever in this Agreement it shall be required or permitted that notice or demand be given or served by either party to this Agreement to or on the other party, such notice or demand shall be delivered personally, or mailed by United States mail to the addresses below, or sent by email to the email address below. Such notice or demand shall be deemed timely given when delivered personally or when deposited in the mail in accordance with the above or when emailed. The addresses of the parties are as set forth until changed by notice given as above. Attn: Paul Schreier BLino LLC. 3435 Labore Road Suite 150 Vadnais Heights, MN 55110 paul@tymeproperties.com Community Development Director City of Lino Lakes 600 Town Center Parkway Lino Lakes, MN 55014 mgrochala@linolakes.us Otter Crossing Development Agreement May 10, 2021 page 13 Land Use Controls – Planned Unit Development. Not Applicable Otter Crossing Development Agreement May 10, 2021 page 14 DEVELOPER CITY OF LINO LAKES By ______________________ By _________________________ Mayor Its ______________________ ATTEST By _________________________ City Clerk STATE OF MINNESOTA ) ) SS COUNTY OF ANOKA ) This instrument was acknowledged before me on ________ day of ____________, 2021, by Rob Rafferty as Mayor of the City of Lino Lakes on behalf of said City. _______________________________ Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF ANOKA ) This instrument was acknowledged before me on ________ day of ____________, 2021 by Julianne Bartell as City Clerk of the City of Lino Lakes on behalf of said City. _______________________________ Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF __________ ) Otter Crossing Development Agreement May 10, 2021 page 15 On this _______ day of _______________, 2021, before me, a Notary Public within and for said County, personally appeared ____________, __________________ of ___________________. (Developer), who executed the foregoing instrument. ______________________________ Notary Public This instrument was drafted by: City of Lino Lakes 600 Town Center Parkway Lino Lakes, Minnesota 55014 Otter Crossing Development Agreement May 10, 2021 page 16 CONSENT AND SUBORDINATION Not Applicable _____________________________, the holder of a mortgage dated ___________________, filed for record with the County Recorder, Anoka County, Minnesota, on _________________, as Document No. _____________________, hereby consents to the recording of this Development Agreement and agrees that its rights in the property affected by the Development Agreement shall be subordinated thereto. IN WITNESS WHEREOF, __________________, has caused this Consent and Subordination to be executed this _____ day of ______________, 2021. ______________________________________ By: Its: STATE OF MINNESOTA ) ) SS COUNTY OF __________ ) On this _______ day of _______________, 2021, before me, a Notary Public within and for said County, personally appeared _______________________, who executed the foregoing instrument. ______________________________ Notary Public Otter Crossing Development Agreement May 10, 2021 page 17 EXHIBIT A Final Plat CIVIL ENGINEERS LAND PLANNERS LAND SURVEYORS LANDSCAPE ARCHITECTS CIVIL ENGINEERS LAND PLANNERS LAND SURVEYORS LANDSCAPE ARCHITECTS Otter Crossing Development Agreement May 10, 2021 page 18 EXHIBIT B Securities, Escrows & Fees 5/5/2021 EXHIBIT B Securities, Escrows & Fees PROJECT: Otter Crossing APPLICANT: Blino, LLC Plat Area (Acre)5.8 IMPROVEMENTS COST DEVELOPER IMPROVEMENT COSTS (Private) SITE GRADING & RESTORATION $107,227 EROSION CONTROL $7,006 LANDSCAPING $0 PRIVATE ROAD AND PARKING LOT $86,551 STORM SEWER CONST.$29,924 SANITARY SEWER CONST.$7,992 WATERMAIN CONST.$11,110 LIGHTING $15,000 Total $264,810 Letter of Credit Amount X 35%$92,684 DEVELOPER IMPROVEMENT COSTS (Public) SITE GRADING & RESTORATION $71,485 EROSION CONTROL $7,006 TRAIL $9,114 STREETS $269,999 SIGNAL IMPROVMENTS $35,000 STORM SEWER CONST.$80,139 SANITARY SEWER CONST.$40,709 WATERMAIN CONST.$56,437 ENGINEERING & SURVEYING $8,500 Total $578,389 Letter of Credit Amount X 150%$867,584 ESCROW for CITY'S COSTS PLANNING/ REVIEW $1,500 ADMINISTRATION $17,360 ENGINEER PLAN REVIEW $2,500 ENGINEER CONSTRUCTION SERVICES $17,352 PROJECT FINAL DOCUMENTS & CITY ENGINEER $3,500 STREET LIGHT INSTALLATION $0 STREET & STORMWATER MAINTENANCE $1,500 PROPERTY TAXES $0 TRAFFIC AND SIGNING IMPROVEMENTS $0 BOULEVARD TREE PLANTING $0 Total $43,712 DEVELOPMENT FEES PARK DEDICATION $3,679 PARK DEDICATION CREDIT ($9,114) Subtotal Park Dedication Fee $0 AUAR $1,560 GIS MAPPING FEE $90 STREET LIGHTING OPERATION $0 Total $1,650 TRUNK SANITARY SEWER TRUNK CHARGE PER (ACRE OR UNIT)$27,606 AVAILABILITY CHARGE PER SAC UNIT Collect w/ Building Permit TRUNK SANITARY SEWER CREDIT $0 TRUNK WATERMAIN TRUNK CHARGE PER (ACRE OR UNIT)$39,647 AVAILABILITY CHARGE PER SAC UNIT Collect w/ Building Permit TRUNK WATERMAIN CREDIT $0 TOTAL TRUNK SEWER & WATER FEES $67,253 SURFACE WATER MANAGEMENT $64,223 SURFACE WATER MANAGEMENT CREDIT $0 TOTAL SURFACE WATER MANAGEMENT FEES $64,223 Total $131,476 Letter of Credit Amount X 35% $46,017 SUMMARY OF SECURITIES, ESCROW & FEES SECURITY: DEVELOPER IMP'MENT COSTS $960,268 ESCROW FOR CITY COSTS $43,712 DEVELOPMENT FEES $1,650 SECURITY: TRUNK FEES $131,476 CITY OF LINO LAKES RESOLUTION NO. 21-42 RESOLUTION APPROVING DECLARATION OF ACCESS CONTROL FOR OTTER CROSSING WHEREAS, City Resolution No. 21-40 approving the Final Plat for Otter Crossing required as a condition of approval a Declaration of Access Control. NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes hereby approves the Declaration of Access Control between BLino, LLC and the City of Lino Lakes for Otter Crossing and authorizes the Mayor and City Clerk to execute such agreement on behalf of the City. Adopted by the Council of the City of Lino Lakes this 10th day of May, 2021. The motion for the adoption of the foregoing resolution was introduced by Council Member _______________and was duly seconded by Council Member ________________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _______________________________ Rob Rafferty, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk DECLARATION OF ACCESS CONTROL Otter Crossing THIS AGREEMENT made this ____ day of ______, 2021, is by and between the City of Lino Lakes, whose address is 600 Town Center, Lino Lakes, Minnesota, 55014, a municipal corporation organized under the laws of the State of Minnesota, hereinafter referred to as the "City," and BLino, LLC whose address is 3435 Labore Rd, Suite 150, Vadnais Heights, MN 55110, hereinafter referred to as the "Developer." WHEREAS, the Developer has received preliminary and final plat approval from the City Council for a plat of land within the corporate limits of the City known as Otter Crossing hereinafter called "Subdivision," said land is legally described as follows: That part of the Northwest Quarter of the Northeast Quarter of Section 24, Township 31, Range 22, Anoka County, Minnesota, lying Easterly and Northerly of the following described line: Commencing at the Northwest corner of said Northwest Quarter of the Northeast Quarter; thence on an assumed bearing of North 89 degrees 51 minutes 09 seconds East, along the North line of said Northwest Quarter of the Northeast Quarter a distance of 118.28 feet to the point of beginning of the line to be described; thence South 12 degrees 37 minutes 22 seconds West a distance of 143.13 feet; thence South 8 degrees 26 minutes 35 seconds West a distance of 279.89 feet; thence Southerly along a non-tangential curve, concave to the East having a central angle of 22 degrees 32 minutes, a radius of 866.93 feet and an arc distance of 340.95 feet, the chord of said curve bears South 6 degrees 16 minutes 09 seconds East; thence South 17 degrees 32 minutes 09 seconds East and tangent to last described curve a distance of 357.32 feet; thence North 89 degrees 17 minutes 02 seconds East a distance of 431.60 feet; thence South 0 degrees 42 minutes 58 seconds East a distance of 230.93 feet, to a point on the South line of said Northwest Quarter of Northeast Quarter, distant 690.47 feet West from the Southeast corner pf said Northwest Quarter of the Northeast Quarter and said line there terminating, Anoka County, Minnesota. Except: Parcels 10A, and 10B, Anoka County Highway Right-of-Way Plat No. 75 Torrens Property WHEREAS, an approximately 365 foot extension of Otter Lake Road north of Main Street (County State Aid Highway 14) was previously constructed (the "Initial Extension"); and WHEREAS, the Improvements within the Subdivision include the construction of a private access driveway off of the Initial Extension, as said private access driveway is described in the Development Contract between the City and the Developer and the plans referenced therein; and WHEREAS, the private access driveway will have full access to the Initial Extension upon completion, but such full access must be reduced to right-in, right-out access upon further extension of Otter Lake Road, in accordance with the City’s Transportation Plan and Anoka county’s Access Management Guidelines; and WHEREAS, the City's Resolution No. 21-40 Approving the Final Plat for Otter Crossing required, as a condition of approval, this Declaration of Access Control. NOW, THEREFORE, in consideration of the mutual promises contained herein, it is agreed by and between the Parties as follows: 1. The Developer shall have full access to Otter Lake Road to and from the private access driveway located on the northern boundary of Lot 1, Block 1 of the Subdivision. No other access points to or from Otter Lake Road shall be constructed without written approval from the City. 2. Developer acknowledges and agrees that the full access described in Paragraph 1 shall be restricted to right-in, right-out access upon completion of an additional extension of Otter Lake Road northward to a point where such extension includes a full access intersection. Said intersection shall be south of the northerly boundary of the Subdivision. At such time, full access to Otter Lake Road from the Subdivision shall occur only at the new intersection as approved by the City. 3. The cost of signage limiting the private access driveway to right-in, right-out shall be paid by the Developer at the time the signage is installed. BLINO, LLC CITY OF LINO LAKES _____________________ ___________________________ Paul Schreier, President Mayor ATTEST: ____________________________ Clerk STATE OF MINNESOTA ) SS COUNTY OF ANOKA ) On this ___ day of ________,2021, before me, a Notary Public within and for said County, personally appeared ___________________ (Mayor) and ______________ (Clerk) to me known to be Mayor and Clerk of the City of Lino Lakes, and who executed the foregoing instrument and acknowledge that they executed the same on behalf of the City. 1 CITY COUNCIL AGENDA ITEM 6C STAFF ORIGINATOR: Katie Larsen, City Planner MEETING DATE: May 10, 2021 TOPIC: Consider Resolution No. 21-38 Denying a Variance for a Second Driveway at 23 Century Trail VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting Council consideration of Resolution No. 21-38 denying a variance for a second driveway at 23 Century Trail. BACKGROUND The property owner of 23 Century Trail, Derek Sadowski, submitted a Land Use Application for a second curb cut/driveway access variance. He is requesting a second driveway, 10 ft wide, onto Pinto Lane be allowed. There is currently one (1) driveway access onto Century Trail. City ordinance allows for one (1) curb cut/driveway on a single family lot. ANALYSIS On August 6, 2020, Derek Sadowski submitted a building permit application to construct a 24 ft wide x 22 ft long detached accessory structure in the rear yard. The permit was issued on August 11, 2020. During construction, he inquired about a obtaining a permit for a driveway onto Pinto Lane and was informed that City zoning ordinance did not allow for a second driveway. Property History The parcel, 23 Century Trail, is legally described as Lot 3, Block 2, Century Farm North and was platted in 2003. It is 0.31 acres in size. It is a double frontage lot abutting Century Trail (front) and Pinto Lane (rear). Typically, the number of double frontage lots in plats are minimized; however, per the approved Century Farm North PUD Landscape Plan, the rear yard was to be protected by a Tree Preservation Area, remain undeveloped and therefore, not accessed from Pinto Lane. This Tree Preservation Area is also shown on the 2005 as-built survey. Unfortunately, in reviewing historical aerial maps, the trees were removed sometime between 2005 and 2008. See Attachment #2. Zoning Ordinance Per City Zoning Ordinance Section 1007.044(3)(h)6: Curb Cut/Driveway Access Location: 2 d. A single-family lot in a residential zoning district shall not have more than one driveway accessing a public street. The property is zoned PUD, Planned Unit Development and is a single-family lot in a residential zoning district. The applicant is requesting a variance to allow for an additional driveway access onto Pinto Lane. It is also important to note this section of the zoning ordinance applies to residential zoning districts such as R-1, R-2, PUD etc. Larger, rurally zoned parcels are allowed more than one driveway because they typically wider lots. Applicant’s Narrative Attachment #3 is the applicant’s narrative. Staff provides the following clarifying/additional information in italics: 1. The applicant states he is requesting a 10-foot wide variance for a second driveway. a. The variance is actually to allow for a second driveway. The driveway is proposed to be 10 ft wide. The variance is not related to the driveway width. 2. The applicant states that when the permit was approved on August 10, 2020 he was not aware that residential properties were only allowed one driveway per parcel. He then states it was on August 25, 2020 when he communicated with Diane Hankee, City Engineer, that he was made aware of the ordinance. a. Per email correspondence between Diane Hankee and the applicant on August 19, 2020, the applicant states “I understand I am not allowed to have a second driveway, but I am wondering how close I can go to Pinto Lane with a surface like class five rock, asphalt or concrete.” See Attachment #4. b. The applicant knew on or before August 19, 2020 that a second driveway was not allowed and potentially had time to redesign the garage if he wished. 3. The applicant states that “…without legal access to it (the garage) will cause me to suffer a hardship as I am not able to use this garage for its intended use.” a. The applicant currently has legal access to the detached accessory structure from the front, side and rear yard to store personal property such as domestic supplies, equipment, lawnmowers, bicycles, etc. just as any other property owner has access to their rear yard. It is not a requirement that detached accessory structures be accessible by passenger motor vehicles such as cars, pickup trucks, vans, motorcycles etc. The City has been flexible with property owners occasionally driving motor vehicles over the curb and on grass to pull boats, trailers, campers etc. onto property but only on a limited basis. b. Unfortunately, the applicant incorrectly assumed his intended use to park passenger motor vehicles in the detached accessory structure would be allowed. c. There are several detached accessory structures in the City with garage doors and no driveway that have legal access and serve the purpose to store personal property. See Attachment #5. d. Parking passenger motor vehicles on grass is not allowed. If the applicant is driving and parking personal vehicles in the rear yard, it should cease. 3 Building Permit Approval Staff has been asked why we didn’t note on the building permit that a driveway to Pinto Lane was not allowed. 1. The applicant stated during April 14, 2021 Planning & Zoning Board meeting it was not his original intent to construct a driveway when we built the detached accessory structure. 2. It is not illegal to construct an accessory structure with a garage door. 3. There is no regulation that states an accessory structure with a garage door must be accessible by a passenger motor vehicle such as a car, pickup truck, van, motorcycle etc. 4. There are several detached accessory structures in the City with garage doors and no second driveway. 5. The applicant’s building permit application and site plan/survey provided no indication that a driveway was intended to be installed. See Attachment #6. 6. Building permit applications are often submitted by the contractor and not reviewed by the property owner. 7. The applicant was aware nine (9) days after the building permit was issued that a second driveway was not allowed. Off-Street Parking Regulations City Zoning Ordinance Section 1007.044 regulates off-street parking. Per the section’s Purpose Statement: (1) Purpose. The regulation of off-street parking spaces in these zoning regulations is to alleviate or prevent congestion of the public right-of-way and to promote the safety and general welfare of the public, by establishing minimum requirements for off-street parking of motor vehicles upon various parcels of land or structures. Regulating the number of driveways and implementing access management practices are standard zoning and traffic safety tools. They serve a number of purposes including: • Minimize conflicts and accidents with vehicle, pedestrian and bicycles using street. • Preserve areas for on-street parking. o In an August 25, 2020 email between the applicant and Diane Hankee, City Engineer, the applicant states, “If there is any way I could be allowed to have a 10 foot wide driveway from my new garage to Pinto Lane, please let me know. For the past couple years, I have been having issues with one neighbor who parks his work truck everyday in front of my 10’ gate that I use to access my back yard from Pinto Lane. He refuses to move it when I ask him to which causes me to have to watch for him to be at work so I can get into my back yard with a vehicle. I would be more than willing to use any surface you would require for this driveway if allowed to have one.” o There are currently conflicts with on-street parking and the illegal driveway. 4 • Minimize impact and maintenance costs to public right-of-way and utility corridors. o An analysis by WSB on recent street reconstruction projects indicate driveway replacement costs range from $2,000 to $5,000 per driveway. • Maintain yard green space and enhance the streetscape. • Preserve street snow storage. • Minimize impervious surfaces. Findings of Fact Resolution No. 21-38 details the findings of fact. RECOMMENDATION Staff recommends denial of the variance. The Planning & Zoning Board reviewed the variance application on April 14, 2021. A motion to deny the variance failed due to a lack of a second. Another motion to approve the variance failed on a 2-4 vote with the Chair abstaining. The Planning & Zoning did recommend consideration of a zoning ordinance text amendment to allow for multiple driveways. The City will review this section of the ordinance as part of the upcoming zoning ordinance update we are starting as part of the implementation of the 2040 Comprehensive Plan. ATTACHMENTS 1. Site Location & Aerial Map 2. 2005 & 2008 Aerial Maps 3. Applicant’s Narrative and Proposed Site Plan 4. Email Correspondence 5. Photo Examples of Other Detached Structures 6. Site Plan Submitted with Building Permit Application 7. Resolution No. 21-38 0 100 20050 Feet IJ53 77487748 77687768 77517751 4747 77447744 77867786 77927792 1111 3030 1717 77807780 1818 77567756 77747774 2323 3535 4141 36362424 77627762 77577757 SUNSET AVESUNSET AVESSUUNNSSEETTAAVVEENNEEPP II NNTTOOLLNNCENTURY TRLCENTURY TRL Site Location & Aerial Map23 Century Trail µ ³ Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search, appraisal, survey, or for zoning verification. 2005 Aerial Map-23 Century Trail Date: 3/23/20211:1,200 SADOWSKI DEREK 23 CENTURY TRL LINO LAKES MN 55014 Owner Information:Parcel Information: 07-31-22-32-0052 23 CENTURY TRL MN LINO LAKES 55014 Anoka County GIS JEFF REINERT 0.31Approx. Acres: CENTURY FARM NORTH Commissioner: Plat: ³ Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search, appraisal, survey, or for zoning verification. 2008 Aerial Map-23 Century Trail Date: 3/23/20211:1,200 SADOWSKI DEREK 23 CENTURY TRL LINO LAKES MN 55014 Owner Information:Parcel Information: 07-31-22-32-0052 23 CENTURY TRL MN LINO LAKES 55014 Anoka County GIS JEFF REINERT 0.31Approx. Acres: CENTURY FARM NORTH Commissioner: Plat: From:Katie Larsen To:Derek Sadowski; Diane Hankee Subject:RE: Vacating an easement Date:Wednesday, August 26, 2020 7:41:54 AM Morning Derek, Unfortunately, city ordinance does not allow for a second driveway onto Pinto Lane. Pinto Lane should not be used as access to your rear yard on a regular basis. I can appreciate the need perhaps once or twice a year but that should really be all. I will also note you are allowed 1 attached garage and 1 detached accessory structure. Both structures combined cannot exceed 1,200 sf. It looks like you have 1 detached shed so that would have to be removed in order to build another accessory structure. Thank you, Katie A. Larsen, AICP City Planner City of Lino Lakes 600 Town Center Pkwy Lino Lakes, MN 55014-1182 651-982-2426 direct 651-982-2400 main 651-982-2499 fax klarsen@linolakes.us -----Original Message----- From: Derek Sadowski Sent: Tuesday, August 25, 2020 2:49 PM To: Diane Hankee Cc: Katie Larsen Subject: Re: Vacating an easement Thank you for the response Diane I was not going to vacate those easement until now since I decided to build a garage in my back yard. If there is any way I could be allowed to have a 10 foot wide driveway from my new garage to Pinto Lane, please let me know. For the past couple years, I have been having issues with one neighbor who parks his work truck everyday in front of my 10’ gate that I use to access my back yard from Pinto Lane. He refuses to move it when I ask him to which causes me to have to watch for him to be at work so I can get into my back yard with a vehicle. I would be more than willing to use any surface you would require for this driveway if allowed to have one. I will be having the utilities marked again in my driveway and will send to you when they are marked. Again, thanks for all your help, I really appreciate it!!! Derek Sadowski Lieutenant - Fire Division Station 1 Lino Lakes Public Safety Department 651-269-2158 > On Aug 25, 2020, at 14:19, Diane Hankee <DHankee@linolakes.us> wrote: > > Derek, > The procedure is still the same. I have attached the 2009 letter providing direction. I have also attached the easement document which identifies the easement for drainage purposes. > > I never received the pictures after you did the gopher one locate? > > Regarding the garage and driveway, I have cc our City planner, Katie, who will respond. > > Thank you, > > -----Original Message----- > From: Derek Sadowski > Sent: Wednesday, August 19, 2020 1:38 PM > To: Diane Hankee <DHankee@linolakes.us> > Cc: Derek Sadowski <DSadowski@linolakes.us> > Subject: Re: Vacating an easement > > Hi Diana > > It’s been nearly 2 years since we last discussed these easements in my back yard of 23 Century Trail and having them vacated, so I was wondering if you could please refresh my memory on the process and what I would need to do to start this? I believe I would need to have a survey done but forget what else I need to do and who I would submit the paperwork to. > > Also, we are putting a garage in our back yard that will be facing Pinto Lane (concrete was just poured Monday). I understand I am not allowed to have a second driveway, but I am wondering how close I can go to Pinto Lane with a surface like class five rock, asphalt or concrete? I just want to make sure I follow all city codes. > > Thanks, > > Derek Sadowski > Lieutenant - Fire Division > Station 1 > Lino Lakes Public Safety Department > 651-269-2158 > >> On Aug 29, 2018, at 10:02, Diane Hankee <diane.hankee@ci.lino-lakes.mn.us> wrote: >> >> Was there anything marked back there, if so please send pictures. Not that I cannot come out, but good to have on file and show Council if needed. >> >> >> Thank you, >> >> Diane Hankee, PE >> City Engineer >> City of Lino Lakes >> 651-982-2430 >> Diane.hankee@ci.lino-lakes.mn.us >> >> >> -----Original Message----- Attachment #5-Examples of Detached Structures with Garage Doors and No Driveway 1 CITY OF LINO LAKES RESOLUTION NO. 21-38 RESOLUTION DENYING A VARIANCE FOR A SECOND DRIVEWAY AT 23 CENTURY TRAIL WHEREAS, the property owner of 23 Century Trail, Derek Sadowski, submitted a Land Use Application for a second curb cut/driveway access variance; and WHEREAS, the legal description of the property is as follows: Lot 3, Block 2, Century Farm North, Anoka County, MN; and WHEREAS, the property is zoned PUD, Planned Unit Development and is a single- family lot in a residential zoning district; and WHEREAS, per City Zoning Ordinance Section 1007.044(3)(h)6: Curb Cut/Driveway Access Location. d. A single-family lot in a residential zoning district shall not have more than one driveway accessing a public street.; and WHEREAS, the property owner current has one driveway onto Century Trail and wishes to construct a second driveway onto Pinto Lane; and WHEREAS, the Planning & Zoning Board reviewed the variance application on April 14, 2021. A motion to deny the variance failed due to a lack of a second. Another motion to approve the variance failed on a 2-4 vote with the Chair abstaining. NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes hereby makes the following: FINDINGS OF FACT No variance shall be granted unless it meets all the criteria in paragraphs 1. through 7. below. The City shall make findings regarding compliance with these criteria. 1. The variance shall be in harmony with the general purposes and intent of the ordinance. The general purpose and intent of the Off-Street Parking ordinance is to alleviate or prevent congestion of the public right-of-way and to promote the safety and general welfare of the public, by establishing minimum requirements for off-street parking of motor vehicles upon various parcels of land or structures. 2 The variance to allow for a second curb cut/ driveway access is not harmonious with the general purposes and intent of the ordinance because it increases public right-of-way congestion, decreases safety and diminishes the general welfare of the public. 2. The variance shall be consistent with the comprehensive plan. Per the 2040 Comprehensive Plan, the property is guided for Low Density Residential land use. The variance request is not consistent with the comprehensive plan. The applicant’s residential property is intended for a single family dwelling with a garage, accessory structure and one (1) driveway. 3. There shall be practical difficulties in complying with the ordinance. “Practical difficulties,” as used in connection with the granting of a variance, means that the property owner proposes to use the property in a reasonable manner not permitted by the ordinance. Economic considerations alone do not constitute practical difficulties. Practical difficulties include, but are not limited to, inadequate access to direct sunlight for solar energy systems. The property owner proposes to use the property in a reasonable manner with the construction of a detached accessory structure; however, there is no practical difficulty in complying with the required one (1) curb cut/driveway access. The cost of the detached accessory structure alone does not constitute a practical difficulty. 4. The plight of the landowner shall be due to circumstances unique to the property not created by the landowner. The plight of the landowner was created by the landowner. There are no unique circumstances to the property causing them to not be able to comply with the ordinance of only having one (1) driveway. 5. The variance shall not alter the essential character of the locality. The variance will alter the essential character of the locality which is a single family residential neighborhood with houses with one (1) driveway. 6. A variance shall not be granted for any use that is not allowed under the ordinance for property in the zoning district where the subject site is located. The variance will not be granted for any use that is not allowed under the ordinance for property in the zoning district. The property is zoned PUD, Planned Unit Development for a residential subdivision and driveways are consistent with residential uses. 3 7. In accordance with MN Stat. 462.357, Subp. 6, variances shall be granted for earth sheltered construction as defined in MN Stat. 216C.06, Subd. 14, when in harmony with the zoning ordinance. Not applicable. BE IT FURTHER RESOLVED by The City Council of the City of Lino Lakes hereby denies a variance request to allow for a second driveway at 23 Century Trail. Adopted by the Council of the City of Lino Lakes this 10th day of May, 2021. The motion for the adoption of the foregoing resolution was introduced by Council Member_______________ and was duly seconded by Council Member ________________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ______________________________ Rob Rafferty, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk 23 Century TrailSecond Driveway Variance City Council May 10, 2021 Background•Applicant and Owner: Derek Sadowski •Land Use Application: •Variance to allow for a second driveway •Applicant is requesting a second driveway, 10 ft wide, onto Pinto Lane be allowed. •City ordinance allows for one (1) curb cut/driveway on a single family lot. 2 3 4 Applicant’s Variance Application •Existing driveway onto Century Trail •Requesting additional driveway onto Pinto Lane 5 Background •August 6, 2020: •Applicant submitted building permit for 24’ x 22’ detached accessory structure in rear yard •August 11, 2020: •Building permit issued •During construction, applicant inquired about driveway permit onto Pinto Lane •Informed City ordinance did not allow for a second driveway Applicant’s Building Permit Application Zoning OrdinancePer City Zoning Ordinance Section 1007.044(3)(h)6: Curb Cut/Driveway Access Location: •d.A single-family lot in a residential zoning district shall not have more than one driveway accessing a public street. 6 Zoning Ordinance•Property is zoned PUD, Planned Unit Development and is a single-family lot in a residential zoning district. •Applicant is requesting a variance to allow for an additional driveway access onto Pinto Lane. •It is also important to note this section of the zoning ordinance applies to residential zoning districts such as R-1, R- 2, PUD etc. •Larger, rurally zoned parcels are allowed more than one driveway because they typically wider lots.7 Findings of Fact-Variance•No variance shall be granted unless it meets all the criteria in paragraphs 1. through 7. below. •The City shall make findings regarding compliance with these criteria. 8 Findings of Fact-Variance1. The variance shall be in harmony with the general purposes and intent of the ordinance. •The general purpose and intent of the Off-Street Parking ordinance is to: •alleviate or prevent congestion of the public right-of-way •promote the safety and general welfare of the public, by establishing minimum requirements for off-street parking of motor vehicles upon various parcels of land or structures. 9 Findings of Fact-Variance•The variance to allow for a second curb cut/ driveway access is not harmonious with the general purposes and intent of the ordinance because it: •increases public right-of-way congestion •decreases safety •diminishes the general welfare of the public 10 Findings of Fact-Variance2. The variance shall be consistent with the comprehensive plan. •Per the 2040 Comprehensive Plan, the property is guided for Low Density Residential land use. •The variance request is not consistent with the comprehensive plan. •The applicant’s residential property is intended for a single family dwelling with a garage, accessory structure and one (1) driveway. 11 Findings of Fact-Variance3. There shall be practical difficulties in complying with the ordinance.“Practical difficulties,” as used in connection with the granting of a variance, means that the property owner proposes to use the property in a reasonable manner not permitted by the ordinance. Economic considerations alone do not constitute practical difficulties. Practical difficulties include, but are not limited to, inadequate access to direct sunlight for solar energy systems. 12 Findings of Fact-Variance•The property owner proposes to use the property in a reasonable manner with the construction of a detached accessory structure; however, there is no practical difficulty in complying with the required one (1) curb cut/driveway access. •The cost of the detached accessory structure alone does not constitute a practical difficulty. 13 Findings of Fact-Variance4. The plight of the landowner shall be due to circumstances unique to the property not created by the landowner. •The plight of the landowner was created by the landowner. •There are no unique circumstances to the property causing them to not be able to comply with the ordinance of only having one (1) driveway. 14 Findings of Fact-Variance5. The variance shall not alter the essential character of the locality. •The variance will alter the essential character of the locality which is a single family residential neighborhood with houses with one (1) driveway. 15 Findings of Fact-Variance6. A variance shall not be granted for any use that is not allowed under the ordinance for property in the zoning district where the subject site is located. •The variance will not be granted for any use that is not allowed under the ordinance for property in the zoning district. •The property is zoned PUD, Planned Unit Development for a residential subdivision and driveways are consistent with residential uses. 16 Findings of Fact-Variance7. In accordance with MN Stat. 462.357, Subp. 6, variances shall be granted for earth sheltered construction as defined in MN Stat. 216C.06, Subd. 14, when in harmony with the zoning ordinance. •Not applicable. 17 Staff Recommendation •Staff recommends denial of the variance to allow for a second curb cut/driveway access at 23 Century Trail. 18 Planning & Zoning Board•April 14, 2021 P&Z Meeting •A motion to deny the variance failed due to a lack of a second. •Another motion to approve the variance failed on a 2-4 vote with the Chair abstaining. •P&Z did recommend consideration of a zoning ordinance text amendment to allow for multiple driveways. •The City will review this section of the ordinance as part of the upcoming zoning ordinance update we are starting as part of the implementation of the 2040 Comprehensive Plan. 19 Council Consideration•May 3, 2021: Discussed at Work Session •May 10, 2021: Consider Resolution No. 21-38 Denying a Variance for a Second Driveway at 23 Century Trail 20 21 22 23 Photos Submitted by Applicant on April 14, 2021 Staff Comments: •Rurally zoned parcels are allowed more than 1 driveway •2003 Ord. No. 08-03 •Detailed residential vs. rural properties •Prior to 2003, any property could have more than 1 driveway 24 7770 4th Avenue •Zoning = R, Rural 25 168 Connie Lane •Zoning = R, Rural 26 7535 Patti Drive •Zoning = R, Rural 27 575 Marshan Lane •Zoning = R-1, Single Family Residential •Driveway constructed prior to 2003 28 6972 Lakeview Drive •Zoning = R-1, Single Family Residential •Driveway constructed prior to 2003