HomeMy WebLinkAbout07/06/2010 Council PacketWORK SESSION AGENDA
CITY OF LINO LAKES
July 6, 2010
CITY COUNCIL WORK SESSION
Community Room (not televised)
5:30 P.M.
1. Willow Ponds
2. Storm Water Management Annual Report
3. Storm Water Utility
4. John Freimuth — 6931 Lake Drive/Blighted Commercial Properties
5. METRO -INET Joint Powers Agreement to follow
6. 2011 Budget Guideline Discussion
7. Comprehensive Plan
8. Liquor Ordinance Requirements
9. Draft Ordinance Amendments
10. Official Language
11. Joint Council and Charter Commission Meeting agenda
Review Regular Agenda
Adjourn
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WS — Item 1
WORK SESSION STAFF REPORT
Work Session Item 1
Date: July 6, 2010
To: City Council
From: Mary Alice Divine
Re: Cottages of Willow Ponds
Background
The Cottages of Willow Ponds were built with TIF assistance from the city with the
intent that it be an affordable senior housing project. The City's Economic Development
Authority entered into a development contract with the original owners in 1995. A
separate restrictive covenant required the project remain senior housing through 2026.
At the June work session Mr. Chuck Reisenberg, representing Lino Lakes Housing
Limited Partnership, addressed the City Council regarding his intent to purchase the
Cottages of Willow Ponds using a HUD insured loan. Federal HUD regulations require
that the City subordinate its rights under the contract to HUD. HUD was also requiring
that the City subordinate the covenant restricting use of the property to senior housing
through 2026. This could have had the potential effect, if the property was ever
foreclosed, that HUD could eliminate the senior covenant in order to sell the property.
A discussion was held whether there were potential solutions to provide the City with
reasonable assurance that the project remains affordable senior housing while allowing
Mr. Reisenberg to proceed with purchase of the property. A memo from Steve Bubul is
included in your packet addressing questions raised by the Council and explaining
additional safeguards agreed to by HUD and the buyer. Also enclosed is the proposed
amendment to the original contract that the EDA would need to be approved by the EDA.
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Requested Council Direction
Does the City Council (EDA) wish to hold an EDA meeting on July 12 to move forward
with consideration of the Amendment to the Contract for Private Development to allow
the sale of the senior housing project to Lino Lakes Housing Limited Partnership?
Attachment(s)
1. Memo from Steve Bubul
2. First Amendment to the Contract for Private Development and Subordination
Agreement
3. HUD Regulatory Agreement for Multi - Family Housing Projects
4. Memo from Dougherty Mortgage regarding HUD foreclosure rates
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Kennedy
Graven
CHARTERED
470 US Bank Plaza
200 South Sixth Street
Minneapolis MN 55402
(612) 337 -9300 telephone
(612) 337 -9310 fax
http://www.kennedy-graven.com
MEMORANDUM
TO: Mayor and Council Members
Mary Alice Divine
FROM: Stephen Bubul
DATE: June 28, 2010
RE: Cottage Homesteads of Willow Pond
Background
As you know, the Lino Lakes Economic Development Authority ( "Authority ") entered
into a Contract for Private Development with Cottage Homesteads of Willow Ponds
Limited Partnership, dated October 3, 1995 (the "Contract "). Under the Contract, the
Authority provided certain tax increment financing assistance to the developer of a 48-
unit rental housing development known as the Cottage Homestead of Willow Ponds (the
"Project'). The Contract imposed certain income limitations on tenants (as required
under the tax increment statute for this housing district). In addition, the City imposed a
separate covenant requiring that 47 of the units be occupied by at least one person who is
at least 55 years old (the "City Senior Covenant "), which remains in effect until 2026.
Lino Lakes Housing Limited Partnership (the "Developer ") plans to acquire the project
from the original developer, and in connection with that acquisition is obtaining a loan
(the "HUD Loan ") insured by the Federal Housing Administration ( "FHA "), which is a
division of the United States Department of Housing and Urban Development ( "HUD ").
The "HUD Loan is secured by a mortgage (the "HUD Mortgage ").
As condition of making the HUD Loan, HUD has required that the Authority subordinate
its rights under the Contract and the City Senior Covenant. To accomplish that, HUD has
requested an amendment to the Contract, which inserts (as a new Article IX) nationally
standard subordination language that HUD requires in its mortgage transactions.
Generally, the HUD language means that the Contract and the City Senior Covenant is
subordinate to the HUD Mortgage. This means that if the HUD Mortgage were
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foreclosed, HUD could eliminate the City Senior Covenant and dispose of the Property
without that encumbrance.
At the same time, HUD agreed to include its own senior covenant (the "HUD Senior
Covenant ") in the HUD Regulatory Agreement. This covenant requires that 47 units be
occupied by at least one person who is at least 62 years of age. The HUD Senior
Covenant remains in place as long as the HUD Loan and HUD Mortgage are in place (35
years if the loan goes to term).
Council Concerns
At its June 7 work session members of the Council raised several questions and concerns.
Following is a description of how those concerns have been addressed.
1. Is the Developer willing to extend the City Senior Covenant?
Yes, the Developer agreed to replace the original City Senior Covenant with a
new one that imposes the 55 age restriction through February 1, 2045 (roughly the same
term as the HUD Loan). The City's covenant remains in place even if the HUD
Mortgage is paid off early.
2. May HUD terminate all senior restrictions on the Property even if the
HUD Mortgage has not been foreclosed?
Most likely no. Regarding the City Senior Covenant, the HUD subordination
language clearly allows HUD to terminate that covenant upon foreclosure, but the
language does not expressly give HUD to right to terminate that covenant absent
foreclosure. The HUD language does indicate that, in the event of conflicts between the
HUD documents and the Contract, the HUD documents control, but arguably there is no
conflict between the existing HUD documents and City Senior Covenant; after all HUD
has included its own very similar covenant in it own documents. It its possible that HUD
could take a different view of this matter in the future, but the possibility of a dispute on
this point is very remote.
Regarding the HUD Senior Covenant, HUD agreed to add the following language in the
HUD Regulatory Agreement:
Developer shall not modify [the HUD Senior Covenant] without prior
written consent of the Authority, which consent shall not be unreasonably
withheld, conditioned or delayed.
This means that if either HUD or the Developer requests an amendment to the HUD
Senior Covenant, the Authority may withhold consent to that as long as its decision to
withhold is reasonable. Since the Authority has clearly indicated a goal of long -term
senior use of the Property (in exchange for the City's tax increment assistance at the
outset), it would be reasonable for the Authority to withhold consent of any attempt to
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simply eliminate the HUD Senior Covenant. Whether consent is reasonable is always a
fact question, but the Authority would have a strong argument on this point.
Even more importantly, there is no indication that HUD would have any incentive to
remove the HUD Senior Covenant if the HUD Mortgage was not in foreclosure. HUD's
sole concern, in requiring the subordination, has been to ensure that the Property is fully
unencumbered in the case of foreclosure, where HUD (or the insured lender) must
dispose of the Property and protect HUD's investment. The language is nationally
standard in FHA - insured deals, and reflects typical concerns of FHA in its role as a
lender; it does not originate from other areas of HUD that are more concerned with
affordable housing.
3. Is there, or can there be, a prohibition on assignment of the HUD
Mortgage?
No. HUD allows the HUD Mortgage to be assumed by a buyer (along with all the
covenants and restrictions that go with it), and would not accept a limitation on that.
However, assumption of the HUD Mortgage by a new owner does not impair the
Authority's position on the senior restrictions; the HUD Senior Covenant and the City
Senior Covenant remain in place as before. In my judgment, the assumability is not a
significant issue for the Authority.
Conclusion
The First Amendment to Contract for Private Redevelopment and Subordination (the
Contract), and the Regulatory Agreement for Multifamily Housing Projects (the HUD
Regulatory Agreement) are attached. In my view, these documents do not significantly
impair the City's goal of retaining the Project in senior use; and in fact, the revised City
Senior Covenant extends that limitation for another twenty years after it would have
originally expired.
The HUD subordination does allow HUD to terminate all senior restrictions in the event
of foreclosure, but foreclosure of these types of mortgages is extremely rare. For the
reasons described above, there is likewise minimal risk that HUD would, or could,
attempt to terminate either the City Senior Covenant or the HUD Senior Covenant even if
the Project is not in foreclosure. The City's consent is required for any modification of
the HUD Senior Covenant, and it would be reasonable for the City to decline a request to
extinguish that covenant.
I will be available at the July 6 work session to answer any questions you may have on
these matters.
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(Space Above Reserved for Recording Ltformation)
FIRST AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT
AND SUBORDINATION AGREEMENT
This FIRST AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT AND
SUBORDINATION AGREEMENT (this "Agreement ") is effective as of July 1, 2010 by and
between LINO LAKES HOUSING LIMITED PARTNERSHIP, a Minnesota limited partnership
( "Developer ") and LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY, a public body
corporate and politic of the State of Minnesota (the "Authority ").
RECITALS:
A. Developer is the fee owner of certain real property known as Cottage Homesteads
of Willow Pond located at 101 Willow Pond Trail in the City of Lino Lakes, County of Anoka,
State of Minnesota as legally described on Exhibit A attached hereto and incorporated herein by
reference (the "Project ").
B. Developer's predecessor -in- interest, Cottage Homesteads of Willow Ponds
Limited Partnership, a Minnesota limited liability company (the "Prior Developer "), and the
Authority entered into that certain Contract for Private Development dated October 3, 1995, and
recorded in the office of the County Recorder, Anoka County, Minnesota, on October 3, 1995, as
Document No. 1185222, as assigned to Developer under that certain Assignment of Partnership
Interests and Company Interests dated May 1, 2010 and recorded in the office of the County
Recorder, Anoka County, Minnesota, on , as Document No.
, (together with all subsequent amendments, modifications, renewals and
extensions thereof, collectively referred to herein as the "Development Contract ").
C. Dougherty Mortgage LLC, a Delaware limited liability company ("Lender ") has
agreed to make a loan to Developer in the original principal amount of $2,791,100.00 (the "HUD
Loan ") which loan shall be insured by the Federal Housing Administration (the "FHA ") of the
United States Department of Housing and Urban Development ( "HUD ") under Section 207
pursuant to Section 223(0 of the National Housing Act of 1934, as amended, pursuant to the
Commitment to Insure Upon Completion dated February 18, 2010 (FHA Project No. 092-
11264), as amended (the "FHA Commitment ").
368750v2 SJB LN140 -25
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D. The HUD Loan will be evidenced by that certain Mortgage Note (the "HUD
Note ") executed by Developer in favor of Lender in the original principal amount of the Loan
and will be secured in part by (i) that certain Mortgage dated July 1, 2010 (the "HUD
Mortgage ") executed by Developer in favor of Lender, and by (ii) the Regulatory Agreement for
Multifamily Housing Projects dated July 1, 2010 (the "HUD Regulatory Agreement ") executed
by and between Landlord and the Secretary of Housing and Urban Development. The HUD
Note, the HUD Mortgage, the HUD Regulatory Agreement and all other loan and security
documents executed in connection with the Loan are collectively referred to herein as the "HUD
Loan Documents."
E. As a condition to the making of the Loan to Developer, Lender and HUD require
that the Development Contract be amended to include certain HUD provisions and that the
Development Contract be subordinated to the Loan and the HUD Loan Documents.
F. In connection with the assignment of the Development Contract from the Prior
Developer to Developer, the parties have further agreed to modify the Development Contract in
certain respects as described herein.
G. In addition, the parties have determined to replace certain restrictive covenants
(referred to in the Development Contract as the "Covenants ") with a new Declaration of
Covenant and Restriction of even date herewith, in the form attached as Exhibit B to this
Agreement (the "Replacement Covenant ").
NOW, THEREFORE, in consideration of foregoing recitals and of the mutual covenants and
agreements hereinafter set forth, it is agreed by and between Developer and the Authority as
follows:
1. Status of Development Contract. This Development Agreement remains in full force and
effect, and is not modified except as expressly provided in this Agreement. Should there
be any conflict or inconsistency between this Agreement and the Development Contract,
the terms and conditions of this Agreement shall prevail.
2. Amendment to Development Contract. The Development Contract is hereby amended to
add following Section 8.7 of the Development Contract entitled "Subordination" the
following Article 9:
ARTICLE IX
HUD REQUIREMENTS
Section 9.1. Notwithstanding anything in this Agreement to the contrary,
except the requirements in 26 U.S.C. 42(h)(6)(E)(ii), this Agreement is expressly
subordinate to (i) the Mortgage Note dated as of dated July 1, 2010 (the "HUD
Note ") executed by the Developer in favor of Dougherty Mortgage LLC, a
Delaware limited liability company ( "Lender "), (ii) the Mortgage dated July 1,
2010 (the "HUD Mortgage ") executed by the Developer in favor of Lender, (iii)
the Regulatory Agreement for Multifamily Projects dated July 1, 2010 (the "HUD
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Regulatory Agreement ") executed by and between the Developer and the
Secretary for Housing and Urban Development ( "HUD "), and (iv) all other
documents executed by the Developer, Lender and /or HUD in connection with the
HUD Note (collectively the "HUD Loan Documents "), and is subordinate to all
applicable HUD mortgage insurance (and Section 8 of the U.S. Housing Act of
1937, if applicable) regulations and related administrative requirements. In the
event of any conflict between the provisions of this Agreement and the provisions
of applicable HUD regulations, related HUD administrative requirements, or
HUD Loan Documents, the HUD regulations, related administrative requirements
or HUD Loan Documents shall control.
Section 9.2. In the event of foreclosure or transfer of title by deed in lieu of
foreclosure, any and all land use covenants contained herein shall automatically
terminate except those requirements set out in 26 U.S.C. 42(h)(6)(E)(ii).
Section 9.3. Failure to comply with the covenants contained herein will not
serve as a basis for default on any of the HUD Loan Documents.
Section 9.4. The covenants contained in this Agreement are not included in any
of the HUD Loan Documents.
Section 9.5. Enforcement of the covenants contained herein will not result in
any claim against the Property, the proceeds from the HUD Mortgage, any reserve
or deposit required by HUD in connection with the HUD Mortgage transaction, or
the rents or other income from the Property other than from available Surplus
Cash, as defined in the HUD Regulatory Agreement.
Section 9.6. So long as the Property is subject to a mortgage insured or held by
HUD, no amendment shall be made to this Agreement without the prior written
consent of HUD.
Section 9.7. This Agreement may not be foreclosed upon or sold, transferred,
assigned or pledged, without the prior written of consent of HUD of such
foreclosure, conveyance, assignment or pledge.
Section 9.8. No action shall be taken in accordance with the rights granted
herein or prohibiting the Developer from taking any action except in strict
accordance with the U.S. Housing Act of 1937 (the "Housing Act "), applicable
mortgage insurance regulations, the HUD Loan Documents, or applicable public
housing regulations under Sections 5 and 9 of the Housing Act, or if applicable,
Section 8 of the Housing Act and the regulations thereunder.
Section 9.9. The covenants contained in this Agreement shall not be construed
to conflict with any applicable HUD mortgage insurance regulation, applicable
public housing regulations, or Section 8 of the Housing Act and the regulations
thereunder.
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3. Replacement Covenant. Upon execution of this Agreement, Developer agrees to execute
and deliver to the Authority the Replacement Covenant in substantially the form attached
hereto as Exhibit B. Developer shall, at its cost, record the Replacement Covenant with
the office of the County Recorder for Anoka County. The Replacement Covenant is
intended to replace and supersede the Covenants in all respects.
4. HUD Regulatory Agreement. Developer shall not modify Section 24 of the HUD
Regulatory Agreement without prior written consent of the Authority, which consent
shall not be unreasonably withheld, conditioned or delayed.
5. Successors and Assigns. Each agreement, and each and every covenant, agreement, and
other provisions hereof shall be binding upon each of the parties hereto and their
successors and assigns
6. Governing Law. This Agreement is made and executed in the State of Minnesota and
shall be governed by the laws of said State.
7. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall, be deemed an original, but all of which shall constitute one instrument.
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IN FURTHERANCE WHEREOF, the parties hereto have caused this First Amendment To
Contract for Private Development and Subordination Agreement to be executed as of the date
and year first above written.
DEVELOPER:
LINO LAKES HOUSING LIMITED
PARTNERSHIP, a Minnesota limited partnership
By: Lino Lakes Housing, LLC, a Minnesota
limited liability company
Its: General Partner
By:
Charles E. Riesenberg
Its: Chief Manager
STATE OF MINNESOTA )
)ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of
2010, by Charles E. Riesenberg, the Chief Manager of LINO LAKES HOUSING, LLC, a
Minnesota limited liability company, the General Partner of LINO LAKES HOUSING
LIMITED PARTNERSHIP, a Minnesota limited partnership, on behalf of the limited
partnership.
Notary Public
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LINO LAKES ECONOMIC DEVELOPMENT
AUTHORITY
By:
Its:
STATE OF MINNESOTA )
)ss.
COUNTY OF
The foregoing instrument was acknowledged before me this day of
2010, by , the of LINO LAKES ECONOMIC
DEVELOPMENT AUTHORITY, a public body corporate and politic of the State of Minnesota,
on behalf of said public body.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
Winthrop & Weinstine P.A. (ALD)
225 South Sixth Street, Suite 3500
Minneapolis, MN 55402
5310565v3
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EXHIBIT A
LEGAL DESCRIPTION OF PROJECT
The real property situated in Anoka County, Minnesota and legally described as follows:
Lot Eleven (11), Block One (1), Willow Ponds of Lino Lakes, according to the plat and survey
thereof on file and of record in the office of the County Recorder in and for Anoka County,
Minnesota
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EXHIBIT B
DECLARATION OF COVENANT AND RESTRICTION
This Declaration of Covenant and Restriction (this "Declaration ") is made as of this
day of , 2010 by Lino Lakes Housing Limited Partnership, a Minnesota
limited partnership "Declarant ").
RECITALS
WHEREAS, Declarant owns Lot Eleven (11), Block One (1), Willow Ponds of Lino
Lakes, according to the plat and survey thereof on file and of record in the office of the County
Recorder in and for Anoka County, Minnesota (the "Subject Property "); and
WHEREAS, pursuant to that certain Contract for Private Redevelopment dated October
3, 1995 (the "Development Contract ") between the Lino Lakes Economic Development
Authority (the "Authority ") and Cottage Homesteads of Willow Ponds Limited Partnership (the
"Prior Developer "), the Prior Developer was required to imposed certain covenants and
restrictions on the Subject Property pursuant to that certain Declaration of Covenant and
Restriction dated as of August 23, 1995 (the "Covenants "); and
WHEREAS, Declarant is the assignee and successor in interest to the Prior Developer
with respect to the Subject Property and the Development Contract; and
WHEREAS, pursuant to a First Amendment to Contract for Private Redevelopment and
Subordination Agreement between Declarant and the Authority dated as of July 1, 2010 (the
"First Amendment "), the Declarant was required to execute this Declaration to replace and
supersede the Covenants in all respects; and
WHEREAS, the Subject Property is improved with four buildings containing twelve
multi- family residential units each, for a total of 48 units; and
WHEREAS, of the 48 units, 47 are used for occupancy by residents (the "Occupied
Units "), and one unit is used as a community room; and
WHEREAS, the Authority requires that the Occupied Units be restricted as set forth
herein;
NOW, THEREFORE, Declarant hereby declares and imposes on the Subject Property the
following covenant and restriction:
1. For the purposes of complying with the requirements imposed by the Authority,
Declarant hereby declares that each of the 47 Occupied Units shall, to the extent occupied and
not vacant, be occupied by at least one occupant who is fifty -five (55) years of age or older.
368750v4 SJB LN140 -25
2. The foregoing covenant and restriction shall expire on February 1, 2045 (the
"Declaration Termination Date ").
3. By no later than February 1 of each year through the Declaration Termination
Date, Declarant shall deliver to the Authority written evidence in a form reasonably satisfactory
to the Authority, demonstrating that the Subject Property complies with the requirements of this
Declaration.
4. Notwithstanding anything in this Declaration to the contrary, except the
requirements in 26 U.S.C. 42(h)(6)(E)(ii), this Declaration is expressly subordinate to (i) the
Mortgage Note dated as of dated July 1, 2010 (the "HUD Note ") executed by the Developer in
favor of Dougherty Mortgage LLC, a Delaware limited liability company ("Lender"), (ii) the
Mortgage dated July 1, 2010 (the "HUD Mortgage ") executed by the Developer in favor of
Lender, (iii) the Regulatory Agreement for Multifamily Projects dated July 1, 2010 (the "HUD
Regulatory Agreement ") executed by and between the Developer and the Secretary for Housing
and Urban Development ( "HUD "), and (iv) all other documents executed by the Developer,
Lender and /or HUD in connection with the HUD Note (collectively the "HUD Loan
Documents "), and is subordinate to all applicable HUD mortgage insurance (and Section 8 of the
U.S. Housing Act of 1937, if applicable) regulations and related administrative requirements. In
the event of any conflict between the provisions of this Declaration and the provisions of
applicable HUD regulations, related HUD administrative requirements, or HUD Loan
Documents, the HUD regulations, related administrative requirements or HUD Loan Documents
shall control.
5. In the event of foreclosure or transfer of title by deed in lieu of foreclosure, any
and all land use covenants contained herein shall automatically terminate except those
requirements set out in 26 U.S.C. 42(h)(6)(E)(ii).
6. Failure to comply with the covenants contained herein will not serve as a basis for
default on any of the HUD Loan Documents.
7. The covenants contained in this Declaration are not included in any of the HUD
Loan Documents.
8. Enforcement of the covenants contained herein will not result in any claim against
the Property, the proceeds from the HUD Mortgage, any reserve or deposit required by HUD in
connection with the HUD Mortgage transaction, or the rents or other income from the Property
other than from available Surplus Cash, as defined in the HUD Regulatory Agreement.
9. So long as the Property is subject to a mortgage insured or held by HUD, no
amendment shall be made to this Declaration without the prior written consent of HUD.
10. This Declaration may not be foreclosed upon or sold, transferred, assigned or
pledged, without the prior written of consent of HUD of such foreclosure, conveyance,
assignment or pledge.
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11. No action shall be taken in accordance with the rights granted herein or
prohibiting the Developer from taking any action except in strict accordance with the U.S.
Housing Act of 1937 (the "Housing Act "), applicable mortgage insurance regulations, the HUD
Loan Documents, or applicable public housing regulations under Sections 5 and 9 of the Housing
Act, or if applicable, Section 8 of the Housing Act and the regulations thereunder.
12. The covenants contained in this Declaration shall not be construed to conflict with
any applicable HUD mortgage insurance regulation, applicable public housing regulations, or
Section 8 of the Housing Act and the regulations thereunder.
368750v4 SJB LN140 -25
[Signature Page to Follow]
LINO LAKES HOUSING LIMITED
PARTNERSHIP, a Minnesota limited partnership
By: Lino Lakes Housing, LLC, a Minnesota
limited liability company
Its: General Partner
By:
Charles E. Riesenberg
Its: Chief Manager
STATE OF MINNESOTA )
)ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of
2010, by Charles E. Riesenberg, the Chief Manager of LINO LAKES HOUSING, LLC, a
Minnesota limited liability company, the General Partner of LINO LAKES HOUSING
LIMITED PARTNERSHIP, a Minnesota limited partnership, on behalf of the limited
partnership.
Notary Public
368750v4 SJB LN 140 -25
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REGULATORY AGREEMENT FOR MULTIFAMILY HOUSING PROJECTS
Dated: May 1, 2010
Executed by and between
LINO LAKES HOUSING LIMITED PARTNERSHIP
and
SECRETARY OF HOUSING AND URBAN DEVELOPMENT
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Regulatory Agreement for
Multifamily Housing Projects
U.S. Department of Housing
And Urban Development
Office of Housing
Federal Housing Commissioner
Under Sections 207, 220, 221(d)(4), 231 and 232, Except Nonprofits
Project Number
092 -11264
Mortgagee
DOUGHERTY MORTGAGE LLC
Amount of Mortgage Note
$2,791,100.00
Date
As of May 1,2010
Mortgage Recorded State Minnesota
Book
County Anoka
Page
Date
Concurrently herewith
Originally endorsed for insurance
under Section
207 pursuant to Section
223(f)
This Agreement entered into this as of the 1" day of May, 2010 between LINO LAKES HOUSING LIMITED PARTNERSHIP, a
Minnesota limited partnership, whose address is 162 Mississippi River Boulevard South, Suite One, St. Paul, Minnesota 55105,
its successors and assigns (hereinafter referred to as "Owners ") and the SECRETARY OF HOUSING AND URBAN
DEVELOPMENT and his successors (hereinafter referred to as "Secretary ").
In consideration of the endorsement for insurance by the Secretary of
the above described note or in consideration of the consent of the
Secretary to the transfer of the mortgaged property or the sale and
conveyance of the mortgaged property by the Secretary. and in order
to comply with the requirements of the National Housing Act. as
amended, and the Regulations adopted by the Secretary pursuant
thereto, Owners agree for themselves, their successors and assigns.
that in connection with the mortgaged property and the project
operated thereon and so long as the contract of mortgage insurance
continues in effect. and during such further period of time as the
Secretary shall be the owner. holder or reinsurer of the mortgage, or
during any time the Secretary is obligated to insure a mortgage on the
mortgaged property:
1. Owners, except as limited by paragraph 17 hereof, assume and
agree to make promptly all payments due under the note and
mortgage.
2. (a) Owners shall establish or continue to maintain a separate
reserve fund for replacements by the allocation to such
reserve fund in a separate account with the mortgagee or in
a safe and responsible depository designated by the
mortgagee, concurrently with the beginning of payments
towards amortization of the principal of the mortgage
insured or held by the Secretary of (i) an amount equal to
$1,272.92 per month for the reserve for replacements
deposit, unless a different date or amount are approved in
writing by the Secretary. The amounts of the monthly
deposits to the reserve fund for replacements shall be
subject to change in accordance with the requirements of
the Secretary. In connection therewith. every ten (10)
years. the Owners shall obtain a physical and capital needs
assessment report (covering a period of at least twelve (12)
years or two (2) years beyond the remaining term of the
mortgage. whichever is shorter) for the Secretary to
evaluate. The cost of such report may be paid from the
reserve fund for replacements.
In addition to the required monthly deposits to the said
reserve funds. the Owners shall make an initial deposit to
the reserve fund for replacements in the amount of
$128,150.00.
Such funds. whether in the form of a cash deposit or
invested in obligations of. or fully guaranteed as to principal
by, the United States of America shall at all times be under
the control of the mortgagee. Disbursements from such fund.
whether for the purpose of effecting replacement of
structural elements and mechanical equipment of the project
or for any other purpose, may be made only after receiving
the consent in writing of the Secretary. In the event that the
owner is unable to make a mortgage note payment on the
due date and that payment cannot be made prior to the due
day of the next such installment or when the mortgagee has
agreed to forgo making an election to assign the mortgage to
the Secretary based on a monetary default. or to withdraw an
election already made, the Secretary is authorized to instruct
the mortgagee to withdraw funds from the reserve fund for
replacements to be applied to the mortgage payment in order
to prevent or cure the default. In addition. in the event of a
default in the terms of the mortgage. pursuant to which the
loan has been accelerated, the Secretary may apply or
authorize the application of the balance in such funds to the
amount due on the mortgage debt as accelerated.
(b) Where Owners are acquiring a project already subject to an
insured mortgage, a reserve fund for replacements to be
established will be equal to the amount due to be in such
fund under existing agreements or charter provisions at the
time Owners acquire such project. and payments hereunder
shall begin with the first payment due on the mortgage after
acquisition, unless some other method of establishing and
maintaining the fund is approved in writing by the Secretary.
3. Real property covered by the mortgage and this agreement is
described in Exhibit A attached hereto.
(This paragraph 4 is not applicable to cases insured under Section
232.)
4. (a) Owners shall make dwelling accommodation and services of
the project available to occupants at charges not exceeding
those established in accordance with a rental schedule
Replaces FHA -2466 which may be used until supply
exhausted
370937v1 SJB LN140 -23
Page 1 of 10
Form HUD -92466 (11/2002)
ref Handbook 4571.1
•
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•
•
•
•
approved in writing by the Secretary. for any project
subject to regulation of rent by the Secretary.
Accommodations shall not be rented for a period of Tess
than thirty (30) days. or. unless the mortgage is insured
under Section 231. for more than three years. Commercial
facilities shall be rented for such use and upon such terms
as approved by the Secretary. Subleasing of dwelling
accommodations. except for subleases of single dwelling
accommodations by the tenant thereof. shall be prohibited
without prior written approval of Owners and the Secretary
and any lease shall so provide. Upon discovery of any
unapproved sublease. Owners shall immediately demand
cancellation and notify the Secretary thereof.
(b) Upon prior written approval by the Secretary. Owners may
charge to and receive from any tenant such amounts as
from time to time may be mutually agreed upon between
the tenant and the Owners for any facilities and/or services
which may be furnished by the Owners or others to such
tenant upon his request, in addition to the facilities and
services included in the approved rental schedule. Approval
of charges for facilities and services is not required for any
project not subject to regulation of rent by the Secretary.
(c) For any project subject to regulation of rent by the
Secretary. the Secretary will at any time entertain a written
request for a rent increase properly supported by
substantiating evidence and within a reasonable time shall:
(i) Approve a rental schedule that is necessary to
compensate for any net increase, occurring since the
last approved rental schedule, in taxes (other than
income taxes) and operating and maintenance cost
over which Owners have no effective control or;
(ii) Deny the increase stating the reasons therefor.
5. (a) If the mortgage is originally a Secretary-held purchase
money mortgage, or is originally endorsed for insurance
under any Section other than Sections 231 or 232 and is not
designed primarily for occupancy by elderly persons.
Owners shall not in selecting tenants discriminate against
any person or persons by reason of the fact that there are
children in the family.
(b) If the mortgage is originally endorsed for insurance under
Section 221. Owners shall in selecting tenants give to
displaced persons or families an absolute preference or
priority of occupancy which shall be accomplished as
fol lows:
(1) For a period of sixty (60) days from the date of
original offering, unless a shorter period of time is
approved in writing by the Secretary, all units shall be
held for such preferred applicants, after which time
any remaining unrented units may be rented to non -
preferred applicants;
(2) Thereafter, and on a continuing basis, such preferred
applicants shall be given preference over non-
preferred applicants in their placement on a waiting list
to be maintained by the Owners; and
(3) Through such further provisions agreed to in writing by
the parties.
(c) Without the prior written approval of the Secretary not more
than 25% of the number of units in a project insured under
Section 231 shall be occupied by persons other than elderly
persons.
(d) All advertising or efforts to rent a project insured under
Section 231 shall reflect a bona fide effort of the Owners to
obtain occupancy by elderly persons.
6. Owners shall not without the prior written approval of the
Secretary:
(a) Convey, transfer. or encumber any of the mortgaged
property. or permit the conveyance, transfer or encumbrance
of such property.
(b) Assign. transfer, dispose of, or encumber any personal
property of the project, including rents. or pay out any funds
except from surplus cash, except for reasonable operating
expenses and necessary repairs.
(c)
Convey, assign, or transfer any beneficial interest in any
trust holding title to the property, or the interest of any
general partner in a partnership owning the property, or any
right to manage or receive the rents and profits from the
mortgaged property.
(d) Remodel, add to, reconstruct, or demolish any part of the
mortgaged property or subtract from any real or personal
property of the project.
(e) Make, or receive and retain, any distribution of assets or any
income of any kind of the project except surplus cash and
except on the following conditions:
(1) All distributions shall be made only as of and after the
end of a semiannual or annual fiscal period, and only as
permitted by the law of the applicable jurisdiction;
(2) No distribution shall be made from borrowed funds,
prior to the completion of the project or when there is
any default under this Agreement or under the note or
mortgage:
(3)
Any distribution of any funds of the project, which the
party receiving such funds is not entitled to retain
hereunder, shall be held in trust separate and apart from
any other funds; and
(4) There shall have been compliance with all outstanding
notices of requirements for proper maintenance of the
project.
(t) Engage, except for natural persons, in any other business or
activity, including the operation of any other rental project.
Replaces FHA -2466 which may be used until supply
exhausted
370937v1 SJB LN140 -25
Page 2 of 10
Form HUD -92466 (11/2002)
ref Handbook 4571.1
(g)
or incur any liability or obligation not in connection with
the project.
Require. as a condition of the occupancy or leasing of any
unit in the project. any consideration or deposit other than
the prepayment of the first month's rent plus a security
deposit in an amount not in excess of one month's rent to
guarantee the performance of the covenants of the lease.
Any funds collected as security deposits shall be kept
separate and apart from all other funds of the project in a
trust account the amount of which shall at all times equal or
exceed the aggregate of all outstanding obligations under
said account.
(h) Permit the use of the dwelling accommodations or nursing
facilities of the project for any purpose except the use
which was originally intended. or permit commercial use
greater than that originally approved by the Secretary.
7. Owners shall maintain the mortgaged premises. accommodations
and the grounds and equipment appurtenant thereto. in good
repair and condition. In the event all or any of the buildings
covered by the mortgage shall be destroyed or damaged by fire
or other casualty. the money derived from any insurance on the
property shall be applied in accordance with the terms of the
mortgage.
8. Owners shall not file any petition in bankruptcy or for a receiver
or in insolvency or for reorganization or composition, or make
any assignment for the benefit of creditors or to a trustee for
creditors. or permit an adjudication in bankruptcy or the taking
possession of the mortgaged property or any part thereof by a
receiver or the seizure and sale of the mortgaged property or any
part thereof under judicial process or pursuant to any power of
sale. and fail to have such adverse actions set aside within forty -
five (45) days.
9. (a) Any management contract entered into by Owners or any of
them involving the project shall contain a provision that. in
the event of default hereunder, it shall be subject to
termination without penalty upon written request by the
Secretary. Upon such request Owners shall immediately
arrange to terminate the contract within a period of not
more than thirty (30) days and shall make arrangements
satisfactory to the Secretary for continuing proper
management of the project.
(b) Payment for services. supplies. or materials shall not
exceed the amount ordinarily paid for such services.
supplies. or materials in the area where the services are
rendered or the supplies or materials furnished.
(c) The mortgaged property. equipment. buildings, plans.
offices. apparatus. devices. books. contracts. records.
documents. and other papers relating thereto shall at all
times be maintained in reasonable condition for proper
audit and subject to examination and inspection at any
reasonable time by the Secretary or his duly authorized
agents. Owners shall keep copies of all written contracts or
other instruments which affect the mortgaged property. all
or any of which may be subject to inspection and
examination by the Secretary or his duly authorized agents.
(d) The books and accounts of the operations of the mortgaged
property and of the project shall be kept in accordance with
the requirements of the Secretary.
(e) Within sixty (60) days following the end of each fiscal year
the Secretary shall be fumished with a complete annual
financial report based upon an examination of the books and
records of mortgagor prepared in accordance with the
requirements of the Secretary. prepared and certified to by
an officer or responsible Owner and. when required by the
Secretary. prepared and certified by a Certified Public
Accountant. or other person acceptable to the Secretary.
(f)
(g)
At request of the Secretary. his agents. employees. or
attorneys. the Owners shall furnish monthly occupancy
reports and shall give specific answers to questions upon
which information is desired from time to time relative to
income. assets. liabilities. contracts. operation. and condition
of the property and the status of the insured mortgage.
All rents and other receipts of the project shall be deposited
in the name of the project in a financial institution. whose
deposits are insured by an agency of the Federal
Government. Such funds shall be withdrawn only in
accordance with the provisions of this Agreement for
expenses of the project or for distributions of surplus cash as
permitted by paragraph 6(e) above. Any Owner receiving
funds of the project other than by such distribution of
surplus cash shall immediately deposit such funds in the
project bank account and failing so to do in violation of this
Agreement shall hold such funds in trust. Any Owner
receiving property of the project in violation of this
Agreement shall hold such funds in trust. At such time as the
Owners shall have lost control and /or possession of the
project. all funds held in trust shall be delivered to the
mortgagee to the extent that the mortgage indebtedness has
not been satisfied.
(h) if the mortgage is insured under Section 232:
(1) This facility is developed as an assisted living facility
for the frail elderly (62 years or older and require
assistance with three or more activities of daily living).
The Owners or les.,ees hall at all times maintain in full
project as an _ unit assisted living facility and shall
not lease all or part of the project except on terrna
(2) The Owners shall suitably equip the project for assisted
C
Financing Statement (or other form of chattel lien)
upon all items of equipment. except as the Secretary
may exempt. which are not incorporated as security for
the insured mortgage. The Security Agreement and
Replaces FHA -2466 which may be used until supply
exhausted
370937v1 SJB LN140 -25
Page 3 of 10
Form HUD -92466 (11/2002)
ref Handbook 4571.1
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•
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Financinz Statement shall constitute a first lien upon
mortgagee as additional security for the insured
mortga ^e.
(i) If the mortgage is insured under Section 231.
Owners or lessees shall at all times maintain in
full force and effect from thc state or other
licensing authority such license as may be
required to operate the project as housing for the
elderly.
(4) The Owner and /or Lessee and /or Operator and /or
requisite level of professional liability insurance as
determined by thc Commissioner. Annually. the
Management Agency. as applicable. provides to
10. Owners will comply with the provisions of any Federal. State. or
local law prohibiting discrimination in housing on the grounds of
race. color. religion or creed. sex. or national origin, including
Title VIiI of the Civil Rights Act of 1968 (Public Law 90 -284;
82 Stat. 73). as amended. Executive Order 11063. and all
requirements imposed by or pursuant to the regulations of the
Department of Housing and Urban Development implementing
these authorities (including 24 CFR Parts 100, 107 and 110. and
Subparts I and M of Part 200).
11. Upon a violation of any of the above provisions of this
Agreement by Owners, the Secretary may give written notice
thereof. to Owners. by registered or certified mail. addressed to
the addresses stated in this Agreement, or such other addresses
as may subsequently. upon appropriate written notice thereof to
the Secretary. be designated by the Owners as their legal
business address. If such violation is not corrected to the
satisfaction of the Secretary within thirty (30) days after the date
such notice is mailed or within such further time as the Secretary
determines is necessary to correct the violation. without further
notice the Secretary may declare a default under this Agreement
effective on the date of such declaration of default and upon
such default the Secretary may:
(a) (i) If the Secretary holds the note - declare the whole of
said indebtedness immediately due and payable and
then proceed with the foreclosure of the mortgage;
(ii) If said note is not held by the Secretary - notify the
holder of the note of such default and request holder to
declare a default under the note and mortgage. and
holder after receiving such notice and request. but not
otherwise. at its option. may declare the whole
indebtedness due. and thereupon proceed with
foreclosure of the mortgage. or assign the note and
mortgage to the Secretary as provided in the Regula-
tions:
(b) Collect all rents and charges in connection with the
operation of the project and use such collections to pay the
Owners' obligations under this Agreement and under the
note and mortgage and the necessary expenses of preserving
the property and operating the project.
(c) Take possession of the project. bring any action necessary to
enforce any rights of the Owners growing out of the project
operation. and operate the project in accordance with the
teens of this Agreement until such time as the Secretary in
his discretion determines that the Owners are again in a
position to operate the project in accordance with the terms
of this Agreement and in compliance with the requirements
of the note and mortgage.
(d) Apply to any court. State or Federal. for specific
performance of this Agreement. for an injunction against
any violation of the Agreement. for the appointment of a
receiver to take over and operate the project in accordance
with the terms of the Agreement. or for such other relief as
may be appropriate, since the injury to the Secretary arising
from a default under any of the terms of this Agreement
would be irreparable and the amount of damage would be
difficult to ascertain.
12. As security for the payment due under this Agreement to the
reserve fund for replacements. and to secure the Secretary
because of his liability under the endorsement of the note for
insurance. and as security for the other obligations under this
Agreement. the Owners respectively assign. pledge and mortgage
to the Secretary their rights to the rents. profits, income and
charges of whatsoever sort which they may receive or be entitled
to receive from the operation of the mortgaged property. subject,
however, to any assignment of rents in the insured mortgage
referred to herein. Until a default is declared under this
Agreement. however. permission is granted to Owners to collect
and retain under the provisions of this Agreement such rents,
profits. income. and charges, but upon default this permission is
terminated as to all rents due or collected thereafter.
13. As used in this Agreement the term:
(a) "Mortgage" includes "Deed of Trust". "Chattel Mortgage ".
"Security Instrument ". and any other security for the note
identified herein, and endorsed for insurance or held by the
Secretary;
(b) "Mortgagee" refers to the holder of the mortgage identified
herein, its successors and assigns;
(c) "Owners" refers to the persons named in the first paragraph
hereof and designated as Owners. their successors. heirs and
assigns;
(d) "Mortgaged Property" includes all property. real. personal or
mixed. covered by the mortgage or mortgages securing the
note endorsed for insurance or held by the Secretary;
(e) "Project" includes the mortgaged property and all its other
assets of whatsoever nature or wheresoever situate. used in
or owned by the business conducted on said mortgaged
property. which business is providing assisted living housing
and services and other activities as are incidental thereto:
Replaces FHA -2466 which may be used until supply
exhausted
370937v1 SJB LN I40 -25
Page 4 of 10
Form HUD -92466 (11/2002)
ref Handbook 4571.1
(f) "Surplus Cash" means any cash remaining after:
(g)
(1) the payment of:
(i) All sums due or currently required to be paid
under the terms of any mortgage or note insured
or held by the Secretary:
(ii) All amounts required to be deposited in the
reserve fund for replacements:
(iii) All obligations of the project other than the
insured mortgage unless funds for payment are
set aside or deferment of payment has been
approved by the Secretary; and
(2) the segregation of:
(i) An amount equal to the aggregate of all special
funds required to be maintained by the project;
and
(ii) All tenant security deposits held.
"Distribution" means any withdrawal or taking of cash or
any assets of the project. including the segregation of cash
or assets for subsequent withdrawal within the limitations
of Paragraph 6(e) hereof, and excluding payment for
reasonable expenses incident to the operation and
maintenance of the project.
(h) '`Default" means a default declared by the Secretary when a
violation of this Agreement is not corrected to his
satisfaction within the time allowed by this Agreement or
such further time as may be allowed by the Secretary after
written notice:
(i) "Section" refers to a Section of the National Housing Act,
as amended.
(j) "Displaced persons or families" shall mean a family or
families. or a person. displaced from an urban renewal area.
or as the result of government action, or as a result of a
major disaster as determined by the President pursuant to
the Disaster Relief Act of
1970.
(k) "Elderly person" means any person. married or single. who
is sixty -two years of age or over.
14. This instrument shall bind. and the benefits shall inure to, the
respective Owners. their heirs, legal representatives. executors,
administrators, successors in office or interest. and assigns, and
to the Secretary and his successors so long as the contract of
mortgage insurance continues in effect. and during such further
time as the Secretary shall be the owner. holder, or reinsurer of
the mortgage. or obligated to reinsure the mortgage.
15. Owners warrant that they have not. and will not. execute any
other agreement with provisions contradictory of. or in
opposition to. the provisions hereof and that. in any event. the
requirements of this Agreement are paramount and controlling as
to the rights and obligations set forth and supersede any other
requirements in conflict therewith.
16. The invalidity of any clause. part or provisions of this Agreement
shall not affect the validity Of of the remaining portions thereof.
17. The following Owners: Lino Lakes Housing Limited Partnership.
and its general partner. Lino Lakes Housing. LLC. a Minnesota
limited liability company. or any other partner. present or future.
do not assume personal liability for payments due under the note
and mortgage. or for the payments to the reserve for
replacements. or for matters not under their control. provided that
said Owners shall remain liable under this Agreement only with
respect to the matters hereinafter stated; namely:
(a) for funds or property of the project coming into their hands
which. by the provisions hereof. they are not entitled to
retain: and
(b) for their own acts and deeds or acts and deeds of others
which they have authorized in violation of the provisions
hereof.
18. Multiple Counterparts. This Agreement may be executed in
counterparts. each of which will be an original, but which, taken
together. will constitute one and the same Agreement.
Continued on Exhibit B attached hereto and incorporated herein
by reference.
(To be executed with formalities for recording a deed to real estate.)
Replaces FHA -2466 which may be used until supply Page 5 of 10
exhausted
370937v1 SJB LN140 -25
Form HUD -92466 (11/2002)
ref Handbook 4571.1
•
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IN WITNESS WHEREOF, the parties have duly executed this Agreement the day and year first above written.
LINO LAKES HOUSING LIMITED
PARTNERSHIP, a Minnesota limited partnership
By: Lino Lakes Housing, LLC, a Minnesota
liability company
Its: General Partner
By:
Charles E. Riesenberg
Its: Chief Manager
STATE OF MINNESOTA )
)ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of May, 2010, by Charles
E. Riesenberg, the Chief Manager of Lino Lakes Housing, LLC, a Minnesota liability company,
the General Partner of Lino Lakes Housing Limited Partnership, a Minnesota limited partnership,
for and on behalf of such limited partnership.
Notary Public
Replaces FHA -2466 which may be used until supply Page 6 of 10
exhausted
370937v1 SJB LN140 -25
Form HUD -92466 (11/2002)
ref Handbook 4571.1
Signature Page to
Regulatory Agreement for Multifamily Projects
SECRETARY OF HOUSING AND URBAN
DEVELOPMENT acting by and through the
FEDERAL HOUSING COMMISSIONER
By:
STATE OF MINNESOTA )
) SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of May, 2010, by
, Multifamily Housing Division,
Minneapolis -St. Paul Office, Department of Housing and Urban Development on behalf of the
Secretary of Housing and Urban Development, under the authority given under Section 7(d) of the
Department of Housing and Urban Development Act, 42 U.S.C. 3535(d) and 68 F.R. 50161.
NOTARY PUBLIC
THIS INSTRUMENT WAS DRAFTED BY:
Amy L. DuMond, Esq.
Winthrop & Weinstine, P.A.
225 South Sixth Street, Suite 3500
Minneapolis, Minnesota 55402 -4629
4800939v5
13761.18
Replaces FHA -2466 which may be used until supply Page 7 of 10
exhausted
370937v1 SJB LN140 -25
Form HUD -92466 (11/2002)
ref Handbook 4571.1
•
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EXHIBIT A
LEGAL DESCRIPTION
The real property situated in Anoka County, Minnesota and legally described as follows:
Lot Eleven (11), Block One (1), Willow Ponds of Lino Lakes, according to the plat and survey
thereof on file and of record in the office of the County Recorder in and for Anoka County,
Minnesota
Replaces FHA -2466 which may be used until supply Page 8 of 10
exhausted
370937v1 SJB LNI40 -25
Form HUD -92466 (11/2002)
ref Handbook 4571.1
EXHIBIT B
CONTINUATION OF REGULATORY REQUIREMENTS
19. If any new management agent, contractor, sponsor, or Owner entities or principals become
involved in the project after endorsement, HUD 2530 forms must be submitted and
approved by the Secretary for each. All changes or transfers of ownership after
endorsement of the mortgage must include personal and corporate financial statements with
FHA Form 2417 certifications, credit reports, and 2013 Supplement "Bank and Trade
References." After initial endorsement of the Note, any future transfer of ownership interest
in the project will be subject to review and approval by the Secretary. This would include a
review of credit reports, bank and trade references, and current financial statements on any
new owners.
20. Notwithstanding anything to the contrary set forth in Section 9(e) of this Agreement, the
Owners shall have a period of ninety (90) days following the end of each fiscal year to
provide Mortgagee with a complete annual financial report as outlined in Section 9(e) of
this Agreement.
21. All licenses and operating permits must be owned by the Project and be subject to the
mortgage. They must not be transferred without the written permission of the Secretary.
22. The following is hereby added to the end of Paragraph 6 of the Agreement:
(i)
Permit any conveyance, assignment, or transfer of any direct or indirect legal or
beneficial interest in the Owners that requires approval of the Secretary under (i)
the Secretary's transfer of physical assets requirements and procedures and/or (ii)
the Secretary's previous participation approval requirements and procedures.
(j) Enter into, or agree to the assignment of, any ground or commercial lease for all
or part of the mortgaged property.
(k) Enter into any amendment of any operating or commercial lease of all or any part
of the mortgaged property that (i) reduces the rent or other payments due
thereunder, (ii) increases the obligations of the Owners or the rights of the lessee,
(iii) decreases the rights of the Owners or the obligations of the lessee, or (iv)
alters any provision of such lease required by the Secretary to be included therein.
23. Notices sent pursuant to Paragraph 11 of the Agreement may be sent by registered or
certified mail, hand delivery or by a nationally recognized overnight delivery service.
24. Owner shall lease the residential units so that forty -seven (47) units in the Project are
occupied by at least one occupant who is an Elderly Person.
[Signature Page to Follow]
Replaces FHA -2466 which may be used until supply Page 9 of 10
exhausted
370937v1 SJB LN140 -25
Form HUD -92466 (11/2002)
ref Handbook 4571.1
•
•
LINO LAKES HOUSING LIMITED
PARTNERSHIP, a Minnesota limited partnership
By: Lino Lakes Housing, LLC, a Minnesota
liability company
Its: General Partner
By:
Charles E. Riesenberg
Its: Chief Manager
STATE OF MINNESOTA )
)ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of May, 2010, by Charles
E. Riesenberg, the Chief Manager of Lino Lakes Housing, LLC, a Minnesota liability company,
the General Partner of Lino Lakes Housing Limited Partnership, a Minnesota limited partnership,
for and on behalf of such limited partnership.
Notary Public
Replaces FHA -2466 which may be used until supply Page 10 of 10
exhausted
370937v1 SJB LN 140 -25
Form HUD -92466 (11/2002)
ref Handbook 4571.1
DOUGHERTY MORTGAGE LLC
May 25, 2010
Mr. Charles Riesenberg
Lino Lakes Housing Limited Partnership
c/o Community Capital Financial
Advisory Service, Inc.
162 Mississippi River Boulevard South, Suite One
St. Paul, MN 55105
Re: Cottage Homesteads of Willow Pond
Lino Lakes, Minnesota
Dear Chuck:
It is our understanding that you have been communicating with the City of Lino Lakes (the
"City ") regarding the subordination of the Contract for Private Redevelopment and Declaration
of Covenants which is part thereof to the first mortgage loan to be made by Dougherty Mortgage
LLC to Lino Lakes Housing Limited Partnership, which loan is insured by the United States
Department of Housing and Urban Development. You have requested clarification as to the
HUD insurance claim process and potential outcomes for housing projects following a default
under a HUD - insured loan. The following is a brief summary of the claims process and the
potential outcomes based on our experience with HUD and our knowledge of the multifamily
industry.
As you know, if a borrower defaults on a HUD - insured loan, the lender has the option to make
an insurance claim to HUD for repayment to the lender of all outstanding indebtedness. Upon
payment to the lender of the indebtedness, the loan and all loan documents, including the
promissory note, mortgage and security agreements, are assigned by the lender to HUD. HUD
steps into the place of the lender and may continue as lender in the loan transaction. As lender,
HUD may exercise any options or remedies available to commercial lenders, including but not
limited to, modifying the loan terms to reflect the borrower's and project's ability to make
payments, extending the term of the loan, or bring a foreclosure action to gain ownership of the
project. While these options are available to HUD, in most instances, HUD will choose to sell
the loan to another lender through a public note sale. The purchase price for the loan is usually
substantially less than the actual outstanding indebtedness and HUD takes a loss on nearly every
loan it sells. Upon payment of the note purchase price, HUD assigns the loan and all of the loan
documents executed in connection therewith to the purchasing lender, other than the regulatory
agreement entered into by the borrower and HUD at the initial loan closing. The regulatory
agreement is terminated upon the assignment of the loan from HUD to the purchasing lender.
90 SOUTH SEVENTH STREET • SUITE 4300 • MINNEAPOLIS, MINNESOTA S5402.4108
612.317.2100 • 866.922.0786
•
•
•
Mr. Charles Riesenberg
May 25, 2010
Page 2
As the purchasing lender has purchased the loan at a discount, the purchasing lender has the
ability to renegotiate and modify the loan terms to amounts which are payable by the borrower
and the project. These modifications have included reductions in outstanding indebtedness and
interest rates payable, re- amortization of the loan amount and extensions of the loan period. If
the project is operating at some level of profit, many purchasing lenders have been willing to
forego foreclosure in lieu of receiving monthly payments under the loan. This does not happen
in every loan, and as the underlying loan is in default, the purchasing lender may foreclose on the
project. Based on our discussions with HUD and other multifamily lenders, foreclosures of
projects have occurred but only in a few instances. Per HUD, in Minnesota less than ten (10)
projects have been foreclosed in the last five (5) years. It is our understanding that none of these
foreclosed projects have been housing for seniors or elderly persons. �
We hope this summary assists you in your conversations with the City. If you require any
additional information from us, please do not hesitate to contact me.
Sincerely,
DOUGHERTY MORTGAGE LLC
Tom
Tresa Engel
Vice President
5251830v1
•
WS — Item 2
WORK SESSION STAFF REPORT
Work Session Item
Date: July 6, 2010
To: City Council
From: Tim Payne, Natural Resources Specialist
Re: 2009 Stormwater Pollution Prevention Plan Accomplishments
Background
In compliance with the provisions of the Clean Water Act, as amended, (33 U.S.C. 1251
et. Seq., 40CFR 122, 123 and 124, as amended et seq.); Minnesota Statutes Chapters 115
and 116, as amended, and Minnesota Rules Chapter 7001, the City of Lino Lakes has
adopted a Storm Water Pollution Prevention Plan (SWPPP) and authorized its submittal
to the Minnesota Pollution Control Agency as part of the City's application for
enrollment in the State of Minnesota's General National Pollution Discharge Elimination
System Phase II Permit program. The permit authorizes the City to discharge storm
water. An annual public hearing pertaining to the SWPPP was held at an Environmental
Board meeting on April 28, 2010.
Analysis:
According to the 1996 National Water Quality Inventory, stormwater runoff is a leading
source of water pollution. Stormwater runoff can harm surface waters such as rivers,
lakes, and streams which in turn cause or contribute to water quality standards being
exceeded.
Stormwater runoff can change natural hydrologic patterns, accelerate stream flows,
destroy aquatic habitats, and elevate pollutant concentrations and loadings. Development
substantially increases impervious surfaces thereby increasing runoff from city streets,
driveways, parking lots, and sidewalks, on which pollutants from human activities settle.
Common pollutants in runoff include pesticides, fertilizers, oils, metals, pathogens, salt,
sediment, litter and other debris are transported via stomiwater and discharged —
untreated — to water resources through storm sewer systems.
1
The Stormwater Program for Municipal Separate Storm Sewer Systems (MS4's) is
designed to reduce the amount of sediment and pollution that enters surface and ground
water from storm sewer systems to the maximum extent practicable. Stormwater
discharges associated with MS4's are regulated through the use of National Pollutant
Discharge Elimination System (NPDES) permits. NPDES permits are legal documents.
Through this permit, the City is required to develop a Stormwater Pollution Prevention
Program (SWPPP) that incorporates Best Management Practices (BMP's) applicable to
their MS4. Below is a list of the accomplishments of the City of Lino Lakes in
implementing identified best management practices (BMP's).
AL-
2009 Best Management Practice Implementation and Accomplishments:
Public Education and Outreach
• Quarterly newsletter articles on residential clean-water initiatives to increase public
involvement in the following: resident BMP's for their property to improve surface
water runoff quality including pet -waste management, soil management, irrigation
management, water conservation, and impervious surface management.
• Maintained a kiosk of information on environmental issues such as recycling, water
quality improvement, forestry issues, and NPDES Phase II/MS4 fact sheets for
residents.
• Held an Arbor Day Celebration at Lino Lakes Elementary and hosted Tricia and the
Toones who tailored their entertainment/presentation to recycling and importance to
clean water issues.
• Maintained Blue Thumb membership with the Rice Creek Watershed District
(RCWD).
• Maintained a page on the City Website related to NPDES requirements for MS4's and
Best Management Practices for residents.
Public Participation and Involvement
• Held public meeting on April 29, 2009 pertaining the purpose, goals and requirements
of the City SWPPP.
• Solicited comments, suggestions and questions from the public.
• No plan adjustment at this time.
Illicit Discharge Detection and Elimination
• Continued to improve and update a GIS map and spatial database of the City's storm
sewer system.
• Created an Illicit Discharge Detection and Elimination Plan that includes procedures,
report form, identification of non- stormwater flows, etc.
• Introduced field staff to the Illicit Discharge Detection and Elimination Plan and
discussed their role within the plan.
2
•
• Developing an Illicit Discharge Detection and Elimination regulatory mechanism
within a comprehensive stormwater ordinance (for 2010).
• The City continues to work with Rice Creek Watershed District on Illicit Discharge
education for residents.
• City employees continue to attend and maintain NPDES /stormwater related
certifications from the State of Minnesota.
Construction Site Stormwater Runoff Control
• The City performs regular site inspection of all construction sites under NPDES
permits (37 notices of violation and 4 correction orders at 17 constructions sites in
2009).
• Contractor education packets were sent out to 23 construction contractors and
homebuilders just prior to construction season.
• The City is developing an erosion prevention and sediment control regulatory
mechanism within a comprehensive stormwater ordinance (for 2010). The City of
Lino Lakes has adopted and presently enforces Ordinances 03 -08 Section 3 Subd. 4 L
& Subd. 11.; Subdivision Ordinance 04 -03; Surface Water Management Plan Adopted
December 2005.
Post - construction Stormwater Management in New Development and Redevelopment
• The City monitors post construction BMP performance & runoff of public facilities
through regular site inspections.
• City staff frequently functions as the "eyes" for commercial and industrial facilities
(i.e., identifying and reporting BMP deficiencies).
• The City continues to develop a database of private facilities to ensure future
adherence to maintenance agreements.
• Collaborated with RCWD and ACD to study a potential raingarden retrofit project
within the Rice Lake watershed to accomplish volume and nutrient reduction.
• Developing a Post Construction Runoff from New and Redevelopment regulatory
mechanism within a comprehensive stormwater ordinance (for 2010).
Pollution Prevention and Good Housekeeping for Municipal Operations
• Continue to train City field staff (public works) in the areas of illicit discharge,
construction site practices, and pollution prevention.
• The City sweeps all impervious surfaces twice a year. Street sweepings occur in early
spring as weather allows and again in the fall after leaf off and prior to hydrant
flushing.
• The City annually inspects all structural pollution control devices such as trap
manholes, grit chambers, sumps, and other settling or filter devices and retains
inspection information. The City inspects 20% of the MS4 outfalls, sediment basins
3
and ponds each year and retains inspection information. Inspections in 2009 included
82 structural pollution prevention devices, 71 ponds, 26 outfalls, 425 catch
basins /manholes, 235 aprons /flared end sections.
2010 Best Management Practice and Implementation Goals:
• Continue to utilize a full time equivalent NPDES inspector.
• Public education will be emphasized in 2010.
• Educate the general public through pamphlets, mailings and city newsletter.
• Educate contractors about site erosion and mitigation practices.
• Promote school or volunteer organizations participation, Worked on environmental
education curriculum with the Centennial School District.
• Continue to educate City Staff in the areas of pollution prevention/good
housekeeping, illicit discharge detection and elimination and construction
practices.
Attachments
None
Requested Council Direction
No action necessary
4
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WS — Item 3
WORK SESSION STAFF REPORT
Work Session Item 3
Date: Council Work Session, July 6, 2010
To: City Council
From: Michael Grochala
Re: Storm Water Utility
Background
At the March 1, 2010 the city council directed staff to update the Storm Water Utility
Feasibility report that was prepared in 2006. Short, Elliott, Hendrickson Inc., (SEH), the
city's consulting engineer, is completing an updated draft of the study. Representatives
from SEH will be at the meeting to present the study and to answer council questions.
If the council wishes to proceed the next steps in the process would include the
following:
July 13 & July 20 Notice of Public Hearing published in Quad Community Press
July 27 Public Information Meeting (tentative date)
Aug. 9 1 st Reading (Regular Council Meeting)
Aug. 23 2nd Reading (Regular Council Meeting) Pass Ordinance
Aug. 31 Ordinance Published in Quad Community Press
Sep. 30 Storm Water Utility Ordinance becomes effective
Council Direction
At this time staff is requesting council comments on the draft study and direction on
whether to proceed with the public hearing notice.
1
SEH AGENDA
Pr5-1/A4 b a-t d 0 Wk.
Lino Lakes Storm Water Utility
July 7, 2010
5:30 pm
City Hall
I. Introduction
A. Storm Water Utility
1. User fee to cover storm water management costs
II. Current City costs that would be covered by the Storm Water Utility
A. Baseline Costs
1. NPDES MS4 Program
a. Education
b. Reporting
c. System Inventory and Maintenance
d. Illicit Discharge Reporting
2. Maintenance
a. Street Sweeping
b. Pond Dredging
c. Storm Sewer System Cleaning
3. Personnel
S51 (
III. Ordinance and Public Process
A. Should the City choose to move forward;
B. Send out the Public Notice tomorrow
C. Publish Notice for 2 consecutive weeks
D. Public Information Meeting (informal)
E. Hold a Public Hearing / lst Reading of the Ordinance
F. 2nd Reading — City Council vote
G. Ordinance must be published for 30 days before it becomes effective
IV. Implementation
1. City staff will work with current billing system to add the Storm Water Utility charge
2. Revenue will begin once the billing is set up and tested.
s:\ko \I \linol\ 112316 \ swu-report-2010\council-agenda-070710.docx
Page 1
Feasibility Study
Financing Alternatives for Lino Lakes' Storm
Water Management Program
Lino Lakes, Minnesota
July 6, 2010:
SEH
Multidisciplined. Single Source.
Trusted Solutions.
Executive Summary
As the City of Lino Lakes continues to develop and grow, the impact of urbanization on the City's surface
water resources continues to increase. In an effort to maintain and improve the existing drainage system,
mitigate the impacts of past and future development and meet the anticipated needs of the National Pollutant
Discharge Elimination System (NPDES) storm water regulatory program, Lino Lakes realizes the need to
continue to develop and implement a comprehensive surface water management program to meet their goals.
The surface water management planning process typically involves four steps.
1. Assessment of the current situation;
2. Analysis of existing and proposed management strategies;
3. Development of program goals and policies, and
4. Identification and Implementation of Capital Improvements.
In order to finance this program the City has requested this study of a Storm Water Management Utility. The
purpose of this study is to identify how the city might utilize the utility to finance their Storm Water
Management Program. For this study, we have evaluated six (6) alternative methods of funding the Lino
Lakes Storm Water Management Program:
1. General Funds/ Ad Valorem Taxes
2. Special Assessments
3. Impact Fees
4. Grants
5. Special Tax Districts
6. Storm Water Utility
Program Implementation
Through an integrated, comprehensive planning approach, Lino Lakes can effectively manage existing and
new development without degrading the valuable water resources. Without proper funding, the program can
become vulnerable when competing against other general fund items or budget constraints.
The Financing Dilemma
The cost of constructing, operating, and maintaining storm water facilities continues to increase along with
other municipal costs. In fact, the storm drainage system is often the last and most expensive public utility
for cities to develop.
Baseline costs are the minimum costs to the City that occur annually regardless of property value, economy,
and size. These costs typically include personnel, education, maintenance, and reporting, which are mandated
through the NPDES MS4 program. There are also normal operating costs that fall under baseline costs.
Traditional methods of financing storm water improvements have become more complex in recent years.
Faced with increasing costs and continuous pressure to minimize property taxes, cities may lack the financial
resources to undertake a multi -year storm water management program. In Lino Lakes, general funds, special
Feasibility Study 112316
City of Lino Lakes, Minnesota
assessments and the City's Surface Water Management Fund have typically financed most of the necessary
improvements in the past.
The Storm Water Utility (also referred to in other communities as a Surface Water Utility) is a funding
source that can address the financing dilemma without increasing property taxes. Service charges, which have
been used by communities to finance sanitary sewer and water utilities, are also being applied to surface water
management (Jouseau, 1983). The storm water utility approach is gaining recognition as the most equitable
way to finance storm water management activities (Honchell, 1986). This trend has continued for more that
20 years.
Selecting the Best Option
In evaluating financing options, the following criteria were considered:
Fair
• Charges are based on the volume of storm water runoff, not property value.
• Land Use (Intensity of Development).
• Sound Engineering Basis. Utilizes commonly accepted engineering formulas for calculating runoff
utilizing runoff Curve Numbers (CN). This methodology is known as Equivalent Hydrologic Area.
• The fee should represent a "users pay" philosophy. The more runoff a user property contributes, the
more they should pay.
• Operation and Maintenance costs increase yearly, placing increased pressure on the general levy (ad
valorem) vs. a utility fee based on users pay and the actual budget based upon these costs.
Dependable
• No competition with the general fund.
• Consistent source of revenue.
• Separate, dedicated fund.
• Helps increase the score in the finance section (matching funds) of grant applications.
Acceptable
• No increase in property tax.
• A "user fee ", the more you contribute...the more you pay.
• Small service charge vs. large, one time assessment.
• Understandable rational for the charge and engineering sound.
Simple and Flexible
• Use current billing system
• Includes credits, exemptions and appeals process
Feasibility Study 112316
City of Lino Lakes, Minnesota
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The following tables identify how the rating criteria are applied to the six funding alternatives.
Storm Water Funding Alternatives Comparison
Feasibility Study 112316
City of Lino Lakes, Minnesota
Ad
Valorem
Taxes
Special
Assessments
Impact
Fees
Grants
Special
Tax
District
User
Fee
Storm
Water
Utility
Fair
Charge Based on
runoff
NO
MAYBE
MAYBE
NO
NO
YES
Charge not based
upon property value
NO
MAYBE
MAYBE
YES
MAYBE
YES
Engineering sound
and defendable
NO
YES
YES
YES
YES
YES
"Users Pay"
NO
NO
YES
NO
YES
YES
Can finance the
maintenance of the
entire system
YES
NO
NO
NO
NO
YES
Dependable
Does not compete
with the general fund
NO
YES
YES
YES
NO
YES
Consistent source of
funding
NO
NO
NO
NO
YES
YES
Separate Dedicated
Fund
NO
YES
YES
YES
YES
YES
Increase score in
finance section of
grant applications
(matching funds)
NO
MAYBE
MAYBE
NO
MAYBE
YES
Acceptable
No increase in
Property Tax
NO
YES
YES
NO
MAYBE
YES
User Fee
NO
NO
YES
NO
MAYBE
YES
Not a Tax
NO
NO
YES
YES
NO
YES
Understandable and
explainable rationale
YES
YES
YES
YES
YES
YES
Feasibility Study 112316
City of Lino Lakes, Minnesota
Simple and Flexible
Uses current billing
system
YES
YES
MAYBE
NA
MAYBE
YES
Includes a credit,
exemptions and
appeals process
NO
MAYBE
MAYBE
NA
MAYBE
YES
Cost effective to bill
YES
YES
YES
NA
YES
YES
Legally defendable
YES
YES
YES
NA
NO
YES
The Proposed Methodology: A Storm Water Utility
As the previous chart demonstrates, the Stonn Water Utility is the optimal choice as the funding mechanism
for Lino Lakes Storm Water Management program. The Storm Water Utility is a proven methodology that is
fair, dependable, and acceptable and is relatively simple to implement and flexible enough to incorporate the
needed credits and exemptions to support the storm water program goals and objectives.
What is a Storm Water Utility?
Let's start with what the utility is not. The utility is not a new level of government, nor is the utility a new tax.
The utility is simply a method of financing the baseline costs such as administration, planning,
implementation, and maintenance of storm water management programs (surface water plan) and NPDES
program costs.
The utility is a service charge or fee. A utility fee is typically charged against all developed parcels based on
the premise of "contributors pay". Where land is in a natural state, most rain soaks into the ground or is
retained in small depressions. Where development has been prevalent, rooftops, driveways, and parking lots
prevent rainfall from soaking into the ground. The rain runs off into streets, ditches, ponds and lakes, creating
the need for drainage systems to protect the quality of our water resources. Therefore, the fee is based on how
much storm water runoff a particular land use contributes.
This consistent, dependable revenue source provides a dedicated fund to manage the drainage system and
water quality improvements without increasing property taxes or using assessments. A utility also provides
the means to handle the increasing costs through small adjustments in the utility charges.
Rate Structure
The utility approach is based on the concept "contributors pay ". The rate structure is based on land use type,
density, parcel size, and the amount of runoff and /or pollution load contributed by a particular parcel. The
general runoff equation is:
Q= (P - 0.2S)2
P + 0.8S
Q = Actual
P = Potential Maximum Runoff
S = Potential Maximum Retention
Runoff
S = (1000 /CN) - 10
Feasibility Study 112316
City of Lino Lakes, Minnesota
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The "S" term can be expressed in terms of the runoff index, or curve number (CN).
The graph below, demonstrates the increased amount of runoff generated by different land use types. This
chart clearly demonstrates why a parking lot (with runoff of approximately 1.7 inches) should pay more per
acre than a single - family home with runoff of approximately 0.3 inches. The calculations below are based
upon a 2 inch rainfall in an area with sandy soils.
Runoff
(Inches)
1.80-
1.60-
1.40 -
1.20-
1.00-
0.80-
0.60-
0.40-
0.20-
NRCS /SCS Runoff Model
0.00 - u,_ —: i
oy oc oc o
Q° ca ca i0
°° °° m
m
Q°
h J
Q Q__
y
F moo`
Q`d
Cy &•
i
Jy
c
tV
U°
O
°j
Qm Assumptions:
P_2„
Type B Soil
Soil Mosture Condition II
How Will the Utility Benefit Lino Lakes?
The utility benefits the community by providing a dedicated fund for surface water management activities,
including the required activities under the National Pollutant Discharge Elimination System (NPDES) Storm
Water Permit Program. In addition to the required Storm Water Pollution Prevention Plan (SWPPP)
activities, benefits may also be realized more generally in the following areas:
• Flood reduction and protection;
• Water quality improvements;
• Wetland protection and enhancement;
• Erosion and sediment control;
• Drainage system construction and maintenance;
• Community education;
• Improved fish and wildlife habitat; and
• Enhanced recreational opportunities.
Feasibility Study 112316
City of Lino Lakes, Minnesota
NPDES Phase II Considerations
The National Pollutant Discharge Elimination System (NPDES) is the enforcement action taken by the
Environmental Pollution Agency (EPA) to meet the Clean Water Act. Phase II of this program is directed
towards cities with populations greater than 10,000 or cities with impaired or special water such as the
Mississippi River.
Lino Lakes is a mandatory Municipal Separate Storm Sewer System (MS4) and currently has a permit that is
governed by the City's Storm Water Pollution Prevention Plan (SWPPP). For the storm water budget, a figure
of $10,000 per year has been included to address the planned activities.
The Storm Water Utility Utilizes:
• The "Residential Equivalent Unit" (REU). The REU is the "billing unit" that represents the
residential, single - family homes, which make up approximately 90% of Lino Lakes current billing.
The REU is easily understood and facilitates billing by allowing the billing department to enter in one
value (the REU) for all homes vs. nearly 6,000 individual bills that may differ by only a few cents.
The suggested REU for Lino Lakes residential units would be $2.50 per month ($30 /year) per
address.
• Intensity of Development (Land Use). As the intensity of development increases, so does the amount
of impervious surfaces, leading to more runoff.
• Equivalent Hydrologic Area (Curve number) This engineering methodology is used to measure the
amount of impervious surface and is utilized in calculating the amount each property should pay
based upon "contributors pay ".
• Program budget. What are the anticipated costs? What must you do? What do you want to do? Below
is the estimated Storm Water Budgets for years 2011 through 2015.
Feasibility Study 112316
City of Lino Lakes, Minnesota
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Lino Lakes Storm Water Utility Budget
6/28/2010
Estimated Stormwater Utility
Budget
2010 - 2015
2011
2012
2013
2014
2015
Personnel - 1.5 FTE
Baseline
$110,000
$115,000
$120,000
$125,000
$130,000
Sweeping /Repairs (contracted)
Baseline
$50,000
$51,500
$53,045
$54,636
$56,275
Engineering
Baseline
$60,000
$61,800
$63,654
$65,564
$67,531
Public Education /Training
(NPDES - MS4)
Baseline
$10,000
$10,300
$10,609
$10,927
$11,255
Materials /Misc supplies
Baseline
$20,000
$20,600
$21,218
$21,855
$22,510
Equipment (1)
Baseline
$57,500
$57,500
$57,500
$57,500
$57,500
Sub -Total Baseline
$307,500
$316,700
$326,026
$335,482
$345,071
SWMP (ditch, pipe, pond)
cleaning
Usage
$195,000
$200,850
$206,876
$213,082
$219,474
Total Budget
$502,500
$517,550
$532,902
$548,564
$564,545
Annual
Average=
$533,212
1) Equipment Needs
Sweeper
$250,000
Jetter/Vac - 1/2 of Cost (other
San. Swr.
$140,000
Single Axle Dump
$185,000
$575,000
Estimated 10 year service life
/10
Annualized Cost
$57,500
The above example assumes 0 % funding of the storm water costs of the forecasted street reconstruction by the
Storm Water Utility.
Baseline costs are considered to be the minimum costs of the program activities regardless of overall runoff
and land use.
Feasibility Study
City of Lino Lakes, Minnesota
112316
Utilizing the land use data, a storm water utility utilizing the "users pay" philosophy of land use and utilizing
the estimated runoff appropriate for the land use would generate an estimated $537,896 per year for the Lino
Lakes Storm Water Management program. This estimate reflects a fully funded program by the Storm Water
Utility and incorporates a number of credit assumptions that may alter the actual revenue generated.
Lino Lakes SWU Revenue Forecast
Runoff
Surface Total Curve Runoff Retention Runoff Depth Vol.
Revenue
Area Utility 6 Monthly Revenue Credit Credit Factor Index (inches) (inches) (ac -ft)
Land Use (ac) Factor Address Charge (monthly) Assumption $9 Estimate (per acre) (CN) (S) (Q) (QA)
Residential
8274
1.00
5994
$2.50
$14,985
NA
$0
$10.00
70
4.29
0.24
166
High Density
Residential
162
3.30
Per Acre
$5,346
20%
$1,069
$33.05
85
1.76
0.80
11
Commercial
263
5.14
Per Acre
$13,525
30%
$4,057
$51.41
92
0.87
1.24
27
Industrial
201
4.01
Per Acre
$8,058
25%
$2,014
$40.12
88
1.36
0.97
16
Institutional
418
4.01
Per Acre
$16,754
40%
$6,702
$40.12
88
1.36
0.97
34
Agricultural, Vacant
EXEMPT
Road Right -of -Way
EXEMPT
Urban Transitional
EXEMPT '°
Open Water
EXEMPT
Total
9,317 I 1 1 I $58,667 1 '. 813,843 I I 1 1 253
Inputs:
REU
$2.50
/mo.
Rainfall 2.0 inch
(REU)
Residential Lot
Size 0.25 acre
Gross Est. Credits Net
Annual Revenue I $704.009 I $166,113 I $537,896
Feasibility Study 112316
City of Lino Lakes, Minnesota
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Conclusions and Recommendations
Conclusions
From the material presented in this report, the following conclusions have been made:
1. A basic principle of a SWU should be that revenues equal costs.
2. Baseline costs are independent of property value and size.
3. The Storm Water Utility method is the best financing option because it is fair, dependable,
acceptable, and flexible.
4. A Storm Water utility, supported by the service charge, provides financing for storm water
management improvements, based on a particular property's contribution of runoff water to the
drainage system.
5. The utility benefits a community by providing a dedicated fund for drainage system improvements
and maintenance and water quality enhancement.
6. The key elements to the utility approach are:
a. All properties benefit; and
b. All developed properties should pay.
c. Contributors Pay, based on the relative amount of their contribution.
Recommendations
1. A storm water management utility (Storm Water Utility) should be utilized to help pay for Lino
Lakes' storm water management program.
2. Fees should be based on runoff contributed to the drainage system, following NRCS criteria and a
two -inch rainfall, and utilizing the curve number values (CN) for a type "B" soil.
3. An ordinance should be prepared as the legal basis for the utility.
4. The existing land use (vs. zoning) should be used to determine the storm water management utility
fees.
5. The recommended rate for the Lino Lakes Storm Water Utility is a $2.50 /month ($30 /year) REU.
This rate is projected to fund 100% of the forecasted Storm Water Program Budget Costs.
Feasibility Study 112316
City of Lino Lakes, Minnesota
Table of Contents
Title Page
Executive Summary
Table of Contents
Page
1.0 Surface Water Management Program 1
1.1 Introduction 1
1.2 Mission Statement 2
1.3 Program Objectives 2
1.4 Planning Process 3
1.4.1 Assessment of the Current Situation 3
1.4.1.1 Classification of Significant Storm Water Management
Problems 3
1.4.1.2 Determine Existing Conditions 3
1.4.2 Analysis of Management Strategies 3
1.4.2.1 Conveyance Philosophy 3
1.4.2.2 Ponding Philosophy 3
1.4.2.3 Combination Ponding and Conveyance Philosophy 3
1.4.2.4 Develop and Treat Philosophy 3
1.4.2.5 Regional Pond Philosophy 3
1.4.2.6 Land Use Control Philosophy 4
1.4.2.7 Enhanced Practices Philosophy 4
1.4.3 Development of Goals and Policies 4
1.4.4 Identification and Implementation of Improvements 5
2.0 Financing Alternatives 5
2.1 Ad Valorem Taxes 7
2.2 Special Assessments ( Fifield, 1997) 7
2.3 Storm Drainage System Development Charge 8
2.4 User Charges or, Storm Water Utility 9
2.5 Grants 10
2.5.1 Environmental Protection Agency (EPA) 10
2.5.1.1 604b - Urban Water Quality Grant 10
2.5.1.2 Underground Injection Control Program 10
2.5.1.3 Storm Water Education Grant 10
2.5.1.4 Clean Lakes Grant 10
2.5.1.5 Section 319 - Clean Water Act 10
2.6 Other Sources of Funding 11
2.6.1 U.S. Army Corps of Engineers: Sect. 22 Planning Asst. to State
Programs 11
2.6.2 Special Tax District (Fifield, 1997) 11
3.0 Implementing Lino Lakes' Utility 11
SEH is a registered trademark of Short Elliott Hendrickson Inc.
Feasibility Study 112316
City of Lino Lakes, Minnesota Page i
3.1 What Is a Storm Water Management Utility? 11
3.2 How Will it Benefit the Community? 12
3.3 Assuring Success 12
3.4 Key Elements (Kremple, 1988) 13
3.5 Utility Advantages and Disadvantages (Jouseau, 1983) 13
3.5.1 Advantages 13
3.5.2 Disadvantages 13
3.6 Program Administration 13
3.7 Ordinance 14
3.8 Public Hearing 14
4.0 Fee Basis 14
4.1 Philosophy 14
4.2 Cause and Effect 15
4.3 Run -Off Equation 15
4.4 How Much Rainfall? 15
4.5 Typical Rainfall 16
4.6 Typical Charges 18
4.7 Exclusions 19
4.8 Credits 19
5.0 Implementation of the Utility 22
5.1 Public Acceptance 22
5.1.1 Public Information Program 22
5.1.1.1 Articles 22
5.1.1.2 Special Mailings 22
5.1.1.3 Informational Meetings 22
5.1.1.4 Public Hearing 23
5.1.1.5 Common Questions and Answers 23
5.2 Ordinance Development 23
5.2.1 Model Ordinance 23
6.0 Storm Water Utility Ordinance 23
6.1 00.010 - General Operation 23
6.2 00.020 - Definitions. Utility Factor 23
6.2.1 Utility Factor 23
6.2.2 Storm Water Utility Fee 24
6.2.3 Monthly Utility Revenue 24
6.3 00.030 - Storm Water Utility Factors 24
6.4 00.040 - Credits 25
6.5 00.050 - Exemptions 25
6.6 00.060 - Payment of Fee 25
6.7 00.070 - Appeal of Fee 25
6.8 00.080 - Penalty for Late Payment 25
6.9 00.090 - Certification of Past Due Fees on Taxes 26
7.0 City of Lino Lakes Storm Water Utility Proposed City Policy 26
SEH is a registered trademark of Short Elliott Hendrickson Inc.
Feasibility Study 112316
City of Lino Lakes, Minnesota Page ii
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7.1 Policy Statement 26
7.2 Exemptions 26
7.3 Fee Basis 26
7.4 Credits 27
7.5 Adjustment of Fees 28
8.0 Billing Options 28
8.1 Establishing Individual Utility Bills 29
8.2 Conflict Resolution 29
8.3 Initiating New Billings 29
9.0 Conclusions and Recommendations 30
9.1 Conclusions 30
9.2 Recommendations 30
10.0 References 31
List of Tables :.
Table 1 Advantages and Disadvantages of Funding Alternatives 6
Table 2 Rainfall /Runoff Ratios Example 16
Table 3 Lino Lakes Runoff Curve Numbers 18
Table 4 Lino Lakes Land Use Breakdown 18
Table 5 Proposed Monthly Billing and Revenue (Year 1 20
Table 6 Utility Factors for Various Land Uses 25
Table 7 Runoff Indices 27
List of Figures
Figure 1 NRCS /SCS Runoff Model Runoff Example 17
Appendix A
Appendix B
Appendix C
Appendix D
List of Appendices
Legal Considerations (Joseau, 1983)
Typical Questions
Suggested SWU Credits Policy and Application Form
Example Public Education Flyer and Public Information Meeting Notice
SEH is a registered trademark of Short Elliott Hendrickson Inc.
Feasibility Study 112316
City of Lino Lakes, Minnesota Page iii
July 6, 2010
Feasibility Study
Financing Alternatives for Lino Lakes' Storm Water
Management Program
Prepared for City of Lino Lakes, Minnesota
1.0 Surface Water Management Program
1.1 Introduction
Development and redevelopment often results in an increase in the rate and
volume of storm water runoff. An increase in runoff overtaxes the natural
drainage systems, and increases the potential for localized flooding.
Additionally, a decrease in overall water quality can be directly attributed to
an increased level of development. A decrease in water quality translates into
lost recreational opportunities and permanent changes to the biological
systems present in local water bodies.
Storm water management has been an issue that figures prominently in the
development proposals that now come before Lino Lakes. In recent years, the
State of Minnesota has adopted laws regarding storm water management and
erosion control measures. State agencies such as the Board of Water and Soil
Resources have created model ordinances and "best management practices"
for communities to use. Looming in the future are possible Federal EPA
mandates regarding the monitoring of storm water quality. Lino Lakes staff
are aware of the problems as well as the new requirements and have been
incorporating them into new development, but Lino Lakes recognizes the
need to take a more comprehensive and systematic look at surface water
management.
In addition, the City of Lino Lakes works closely with the Rice Creek
Watershed District to assure that projects meet the requirements of the
Watershed District.
Historically, the issue of storm water management has in principle been very
simple; collect the water into an underground system of pipes and get it to a
river or creek as quickly as possible. If there was a problem with localized
flooding, additional and/or larger pipes were put in the ground. Water quality
and other storm water issues were not typically considered. It is fair to say
that the main concern of the average Lino Lakes citizen is still to get the
water away from their house or business as quickly as possible. But a
112316
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relatively new issue has been factored in- one mandated by law and for the
most part good sense -the issue of water quality. Unchecked and ever
increasing runoff is impacting the quality of our rivers, lakes and streams
through pollutants that are contained in the runoff as well as by erosion that
occurs as a result of increasing amounts of storm water that enter into bodies
of water at a faster rate.
Today, best management practices for managing storm water have changed
from collection and piping to retention, infiltration, treatment, and
establishing a more controlled and gradual discharge to the receiving body of
water.
1.2 Mission Statement
A logical first step in any comprehensive planning process is to clearly
define the limits of the project. One of the best ways to develop consensus
among all concerned parties is to establish a mission statement for storm
water planning.
The mission statement represents Lino Lakes' attitude towards storm water
management efforts. To accomplish the goals of the storm water
management program, Lino Lakes should have a single consistent approach.
The mission statement focuses on what is to be accomplished; the storm
water management program will focus on how it will be accomplished.
The suggested mission statement is as follows:
The City of Lakes envisions a community in which the quality of
life is enhanced by a natural and healthy environment and by
infrastructure designed and maintained to protect property
investment. Toward that end, the Lino Lakes Surface Water
Management Program provides a single, comprehensive strategy
that addresses existing and future storm water needs in a pro- active
manner. The program promotes citizen and industry participation
and education, and provides clear direction for properly managing
the quantity and quality of storm water runoff surface water,
wetlands and groundwater resources.
1.3 Program Objectives
The primary objectives of the storm water management program are
summarized as follows:
• Develop and implement a comprehensive storm water management
program, including a comprehensive drainage plan and analysis of future
facilities (i.e., pipes, ponds, etc.).
• Maintain natural and man -made facilities (wetlands, ponds, creeks,
sediment basins, storm sewers, culverts, ditches, etc.) for their intended
use and function.
• Address existing storm water runoff problems and their control.
• Provide adequate financing to implement necessary Best Management
Practices (BMPs), maintenance activities, water quality programs, and
public education.
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City of Lino Lakes, Minnesota Page 2
1.4 Planning Process
Lino Lakes is addressing its storm water management needs through a
process of prioritization in the planning process and identifying important
projects in a yearly budget forecast.
1.4.1 Assessment of the Current Situation
1.4.1.1 Classification of Significant Storm Water Management Problems
Classification of significant storm water management problems within Lino
Lakes establishes a priority for making necessary improvements. The priority
is dictated by the severity of existing problems, maintenance issues or future
development pressure.
1.4.1.2 Determine Existing Conditions
Establishing existing conditions helps to quantify the operational problems of
the in place systems. By identifying deficiencies in the existing system and
projecting for future needs, the cost for needed improvements can be
developed.
1.4.2 Analysis of Management Strategies
A philosophy for handling storm water runoff is developed based on one or
more of the following:
1.4.2.1 Conveyance Philosophy_
A conveyance philosophy involves the collection and discharge of storm
water without the use of ponding areas. This strategy is less land intensive
but requires the construction of large storm sewer or ditch systems.
1.4.2.2 Ponding Philosophy
A ponding philosophy uses natural low areas to temporarily store or detain
runoff until the conveyance system can safely discharge the runoff
downstream.'
1.4.2.3 Combination Ponding and Conveyance Philosophy
It is likely that a combination of ponding and conveyance will provide the
most economical solution. This philosophy takes advantage of available low
lands for storm water storage and optimizes the in place conveyance systems.
Based on full utilization of the existing systems, improvements can be
planned.
1.4.2.4 Develop and Treat Philosophy
The develop and treat philosophy is practiced in most communities. The
develop and treat philosophy encompasses the ponding philosophy by
allowing full development of the land with on site rate control and pollutant
removal requirements resulting in a multitude of small onsite ponds and other
Best Management Practices (BMPs) throughout Lino Lakes.
1.4.2.5 Regional Pond Philosophy
The regional pond philosophy is related to the "Develop and Treat
Philosophy ". Rather than requiring on site facilities, the regional pond
philosophy relies on a comprehensive plan to identify (and acquire) parcels
of land to serve as detention/treatment pond sites that can serve multiple
Feasibility Study 112316
City of Lino Lakes, Minnesota Page 3
properties. This philosophy often requires up -front funding to acquire the
land, but results in fewer ponds and less overall pond maintenance.
1.4.2.6 Land Use Control Philosophy
The land use control philosophy may seem extreme to some, but it is based
on reducing the impervious (hard) surface areas related to development. Less
impervious surface results in less runoff and less pollutant loading. If done
properly, the land use control philosophy can work without adversely
impacting development densities.
1.4.2.7 Enhanced Practices Philosophy
The enhanced practices philosophy can be used in redevelopment and new
development to meet volume reductions, treatment and ground water
recharge goals. Typical practices include infiltration and bioretention. A rain
water garden program is an excellent example of bioretention.
1.4.3 Development of Goals and Policies
Lino Lakes' current Storm Water Management Plan contains specific goal
statements and corresponding policies. The goals and policies recognize the
fundamental relationship between water quality and land use. Plan goals
include:
• Storm Water Runoff Management (Water Quantity): Control flooding
and minimize related public capital and maintenance expenditure
necessary to control excessive volumes and rates of runoff.
• Water Quality: ' Achieve water quality goals in waters and wetlands
consistent with intended use and classification.
• `
Erosion Control: Minimize soil erosion through enforcement and
education.
Wetland Management: Maintain the amount of wetland acreage and
increase the wetland values within Lino Lakes, where feasible.
Administration (Public Participation, Information and Education):
Increase public participation and knowledge in management of the water
resources.
• Drainage Way Maintenance (Maintenance and Inspection): Preserve the
function of water resource facilities through routine inspection and
regular maintenance activities.
• Recreation, Open Space and Wildlife: Manage water recreation
opportunities and improve fish and wildlife habitat.
• Groundwater: Prevent contamination of the aquifers and promote ground
water recharge.
• Finance: Establish funding sources to finance water resources
management activities.
• Regulations /Intergovernmental Relations: Ensure compliance with
ordinances, standards, criteria, and policies with other governmental
units that have regulatory authority within the city boundaries.
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City of Lino Lakes, Minnesota Page 4
1.4.4 Identification and Implementation of Improvements
The final task associated with the storm water management program includes
establishment and implementation of improvement and maintenance
programs. These final tasks are necessary to ensure that storm water
management measures are implemented in a timely fashion and that their
effectiveness in maintaining Lino Lakes' drainage system can be quantified.
The program also provides the flexibility to adjust the implementation of
storm water measures to maximize effectiveness.
2.0 Financing Alternatives
The cost of constructing, operating, and maintaining storm water facilities
continues to increase along with other municipal costs. In fact, the storm
drainage system is often the last and most expensive public utility for cities
to develop.
Traditional methods of financing storm water improvements have become
more complex in recent years. Faced with increasing costs and continuous
pressure to minimize property taxes, cities may lack the financial resources
to undertake a multi -year storm water management program.
Consequently, many communities lack the proper funding to address the
increasing costs related to storm water drainage, water quality management,
and wetland protection.
The major categories of funding sources are (1) Ad Valorem Taxes; (2)
Special Assessments; (3) System Development Charges (Building Permits,
Land Development Fees and Land Exaction); (4) User charges; (5) Grants;
and (6) Special Tax Districts. Table 1 illustrates the advantages and
disadvantages of the different financing methods. Following is a description
and financing principles used with each of these financing mechanisms.
Feasibility Study 112316
City of Lino Lakes, Minnesota Page 5
Table 1
Advantages and Disadvantages of Funding Alternatives
Funding Method
Advantages
Disadvantages
Ad Valorem Tax
• Administrative Structure for
collection in place.
• Simple and accepted source of
revenue.
• Allows for a larger revenue base.
• Through tax districts contributors
pay.
• No incentive to reduce runoff
or pollution.
• No relationship to level of
benefits received.
• Discontinuous source of
revenue.
• Limitations on amount of
expenditures due to budget
constraints.
• Competition with other
services (i.e., police, fire).
Special
Assessments
• Only benefited properties pay.
• Revenues from assessment are
applied to a specific project cost.
No competition with general .
services.
• Benefits directly related to cost for
service.
• Assessment can be deferred in
hardship cases.
• ''° Rigid procedural
requirements.
• Runoff contributions cannot
be assessed.
• Difficult to determine and
prove benefit.
• May place an unfair burden on
some segments of the
population.
System
Development
Charges
g
• New development generating
runoff pays for runoff
management.
• Administrative structure for
reviewing plans and collecting
fees is in place.
• Systems can be tailored to the
specific needs through regulatory
changes.
• Revenues are applied to water
management. No competition with
general services.
• Only addresses problems
within the vicinity of the new
development, not usually
existing developments.
• Only addresses prevention not
correction of existing
problems.
• Limited usefulness as a
financing mechanism.
User Charges
• Properties causing or contributing
to the need for runoff management
pay relative to their contribution to
the problem.
• Self- financing system not in
competition with general services
funds.
• Existing and new developments
both pay.
• Flexibility in the system.
• Continuous source of revenues.
• Specific dedicated fund.
• Administrative structure for
collection already in place.
• Some initial costs in
development of rate formula
and philosophy.
• May require an expanded
administrative structure.
Feasibility Study
City of Lino Lakes, Minnesota
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Funding Method
Advantages
Disadvantages
Grants
•
Reduce cost burden to residents in
the community.
•
•
•
•
•
Unreliable source of revenue.
Increase administrative costs
for securing and managing the
funds.
Most often grants require cost
sharing and thus additional
funding sources. This results
in double administrative costs
due to management of several
funding sources.
Limited availability on an
irregular schedule.
Requires considerable lead-
time from application to
receiving funds.
Special Tax
P
District
•
•
Do not need to prove benefit from
the improvement.
All taxable property in district
pays.
'
.
•
No flexibility in application of
tax.
Tax ro exempt properties not
p p p
subject to tax.
Legal issues are complex.
2.1 Ad Valorem Taxes
Ad valorem taxes, or general taxation, is the most common revenue source
used to finance government services, including minor maintenance measures
for drainage and water quality facilities. Using property taxes has the effect
of spreading the cost over the entire tax base of a community.
2.2 Special Assessments (Fifield, 1997)
Minnesota Statutes, Chapter 429, conveys the authority to undertake and
finance public improvements. Section 429.021 gives the power to "convey
the authority to undertake and to finance a wide range of public
improvements, and specifically gives the power to ":
.... acquire, develop, construct, reconstruct, extend, and maintain
storm and sanitary sewers and systems, including outlets, holding
areas and ponds, treatment plants, pumps, lift stations, service
connections, and other appurtenances of a sewer system, within and
without the corporate limits."
Special assessments are the most common tool for financing public
improvements. All or a portion of the cost of an improvement is levied
against properties benefited by the improvement.
The issue of benefit poses the greatest challenge in the use of special
assessments. The amount of the special assessment cannot exceed the benefit
received by the property from the improvement. The benefit is measured by
the increase in the market value of the property. As noted earlier, the direct
benefits of a storm water management system may not be equally distributed
in a given area.
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City of Lino Lakes, Minnesota Page 7
Other factors to consider in the use of special assessments include:
• State law contains a specific process for making public improvements
and levying special assessments.
• Lino Lakes can issue general obligation bonds to finance the
improvements.
• Special assessments are not required to finance the entire project. Lino
Lakes can use other available sources of revenue, including general
property taxes, to finance the improvement and pay debt service on
bonds.
• Use of special assessments are further regulated by the City's charter
provisions
2.3 Storm Drainage System Development Charge
As land is developed or built upon, surface water runoff and pollution
loading increases. Administrative and capital costs can be recovered at the
time of building permit issuance or land development approval. Lino Lakes
can require dedication of land for ponding or drainage purposes. The land,
however, must be from the parcel being developed.
System Development Charges (SDCs) or trunk charges are one -time charges
paid by new development to finance the construction of public facilities.
SDCs are generally used for several basic reasons (Nelson, 1995):
• To shift the burdens from existing development to new development;
■ To synchronize the construction of new or expanded facility cap with
the arrival of new development;
To subject new development decisions to pricing discipline; and
To respond to anti -tax sentiments.
According to Nelson (1995), there are seven factors to determine the
proportionate share of costs to be borne by new development:
The cost of existing facilities.
• The means by which existing facilities have been financed.
• The extent to which new development has already contributed to the
cost of providing excess capacity.
• The extent to which existing development will, in the future,
contribute to the cost of providing existing facilities used community
wide or by non - occupants of new development.
• The extent to which new development should receive credit for
providing at its cost facilities the community has provided in the past
without charge to other development in the service area.
• Extraordinary cost incurred in serving new development.
• The time -price differential inherent in fair comparisons of amounts
of money paid at different times.
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City of Lino Lakes, Minnesota Page 8
Planning is extremely important according to Nelson (1995), both from a
land use and a surface water management perspective. Of particular
importance within the water resources management plan is the capital
improvements element (CIE) and the capital improvements program (CIP)
that implements the CIE. For improvements to be funded in part through
SDCs, the CIE should offer an adequate policy foundation. In essence, the
CIE serves to strengthen the relationship between SDCs and public policy by
clearly stating those policies and the role of impact SDCs have in effecting
them.
CIE's normally include a three step planning process.
1. Preparation of an inventory and assessment;
2. Determination of policies and needs; and
3. Development of an implementation strategy.
To adequately address the issue of Storm Drainage Trunk Charge for New
Development or SDCs, a comprehensive review of the existing water
resources management plan would be conducted to consider the elements
discussed above. Next, a CIE would be refined from the existing document.
Work with legal counsel would be undertaken to establish the legal basis for
SDCs. Finally, the SDC determination will be developed based on
development needs, land use and total systems cost. Lastly, a public
information element will be used to introduce the system to the community.
The public information element will illustrate the approach as equitable and
will dispel any myths or criticisms that may exist.
2.4 User Charges or Storm Water Utility
User charges, which support storm water utilities, are a mechanism by which
Lino Lakes can generate funds through billings similar to water and sewer
billings. The principle is to charge for services rendered to properties
generating runoff as well as the service to properties being protected from
the effects of runoff, without consideration to an increase in market value of
the property. Implementation of a storm water utility consists of three phases:
Concept Development, Implementation and Billing.
Concept Development involves research and analysis of funding options and
funding needs. This feasibility report contains a summary of all findings and
recommendations, including a preliminary implementation plan.
During the implementation phase, action plans for each component of the
utility implementation program are developed. The action plans identify
tasks, resources, responsibilities, schedules and measurements. A link
between the recommended rate structure and the database is also developed
during Implementation. The public involvement component can be
implemented prior to presenting a draft ordinance to Council. With public
support in place, the Storm Water Utility ordinance is fmalized prior to the
billing phase.
The billing phase applies adopted rates to individual accounts, resulting in an
interface between real estate records and the City billing system. Standard
operating procedures are developed to document the process for updating the
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City of Lino Lakes, Minnesota Page 9
data base interface and billing system. On -call support is developed to ensure
a smooth transition to new billing procedures and investigation of credits and
appeals.
2.5 Grants
Grants are available for surface water management and nonpoint source
pollution. However, it is generally not a good financial practice to rely on
grants for a service delivery program. This source of revenue is not
dependable and requires constant speculation as to its availability. Grants are
useful but should only be used to supplement a planned local revenue source.
2.5.1 Environmental Protection Agency (EPA)
2.5.1.1 604b - Urban Water Quality Grant
The EPA's 604b Grant Program is targeted at water quality improvements in
urban areas. The grant is not a cost share program, but does require local
participation. The grant is generally administered through the state. This
program does not enjoy support from the State of Minnesota.
2.5.1.2 Underground Injection Control Program
The EPA's Underground Injection Control (UIC) program involves
inventories of ground water protection areas in Lino Lakes to address
abandoned drainage or domestic disposal wells, which are potentially
harmful to underground sources of drinking water. The results of the
questionnaire can provide a great deal of information on the degree of risk to
Lino Lakes' underground sources of drinking water. The EPA has provided
funding and training for volunteers to implement the UIC program at the
local level.
2.5.1.3 Storm Water Education Grant
The EPA's Storm Water Education Grant, enacted in 1991, is targeted at
cities or organizations in the amount of $25,000 or less. The Storm Water
Education Grant is intended to finance local education initiatives related to
the natural environment. Grants are awarded on a 50/50 cost share basis.
2.5.1.4 Clean Lakes Grant
The Federal Clean Lakes Grant is the next step in lake restoration following
the State Clean Water Partnership Program. The program can include
significantly more funding than the state program and can be used for
development and implementation of lake restoration plans. Clean Lakes
funding is administered through the MPCA.
2.5.1.5 Section 319 - Clean Water Act
Funding through EPA's Section 319 program supports state programs, but is
potentially available for urban BMP and project implementation
coordination. The grants program includes a spring application period (May
to June) for the state. The program is significant in that it can fund
implementation (i.e., construction) rather than funding planning efforts or
studies. Available funds may involve either full or matching funds.
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City of Lino Lakes, Minnesota Page 10
' 2.6 Other Sources of Funding
2.6.1 U.S. Army Corps of Engineers: Sect. 22 Planning Asst. to State
' Programs
Funds are a 50/50 cost share. The program is administered through state
planning. Eligible projects are given to COE to prepare a cost estimate for
' preliminary design. The estimate is negotiated with the "customer ". The
"customer" provides 50 percent cost share in the form of cash. The COE then
completes the preliminary design or study.
1 2.6.2 Special Tax District (Fifield, 1997)
MN Statute 444.16 and 444.17 -18 -19 & 20
Cities can create storm water improvement districts to finance these
improvements. In effect, a storm water improvement district is a new taxing
district. Lino Lakes would adopt an ordinance that defines the area of the
district. Lino Lakes can undertake storm water improvements within the
district. To finance the improvements, Lino Lakes can levy a property tax on
property within the district.
This financing mechanism offers advantages and disadvantages over special
assessments. The chief benefit is no need to prove benefit from the
improvements. All property in the district pays to finance improvements.
Costs are spread according to the taxable value of property. This may also be
a disadvantage. There is no flexibility in tailoring the application of the tax.
Some key factors in the establishment and use of a storm water improvement
district include:
■ The ordinance establishing the district must be adopted by a two- thirds
vote of the Council. A public hearing must be held prior to adopting the
ordinance.
• Lino Lakes must hold a public hearing before awarding a contract for an
improvement within the district. State law prescribes the requirements
for notice of hearing and items to be considered in ordering the
improvement.
' ■ Lino Lakes can issue general obligation bonds to finance improvements
in the district. The bonds do not require an election and do not count
against any debt limit.
• State law requires that the bonds be supported "primarily out of the
proceeds of the tax levied" on property in the district. This provision
• allows other revenues to be used to pay debt service on the bonds.
Provisions of the City charter would need to be reviewed to identify any
additional requirements for a special tax district.
3.0 Implementing Lino Lakes' Utility
3.1 What Is a Storm Water Management Utility?
Let's start with what the utility is not. The utility is not a new level of
government, nor is the utility a new tax. A Storm Water Utility is simply a
Feasibility Study 112316
City of Lino Lakes, Minnesota Page 11
method of financing the administration, planning, implementation, and
maintenance of storm water management programs.
The utility is nothing more than a service charge or fee. A utility fee is
typically charged against all developed parcels within Lino Lakes based on
the premise of "contributors pay ". Where land is in a natural state, most rain
soaks into the ground or is retained in small depressions. Where development
has been prevalent, rooftops, driveways, and parking lots prevent rainfall
from soaking into the ground. The rain runs off into streets, ditches, ponds
and lakes, creating the need for drainage systems and to protect the quality of
our water resources. Therefore, the fee is based on how much storm water
runoff and /or pollutant load is contributed by a particular parcel.
This consistent, dependable revenue source provides dedicated funds to
manage the drainage systems and water quality improvements without
increasing property taxes or using assessments. A utility also provides the
means to handle increasing costs through small adjustments in utility
charges.
3.2 How Will it Benefit the Community?
The utility benefits the community by providing a dedicated fund for storm
water management activities. Benefits associated with storm water
management include:
• Flood reduction and protection;
• Water quality improvements;
• Wetland protection and enhancement;
Erosion and sediment control;
• Drainage system construction and maintenance;
• Community education;
• Improved fish, and wildlife habitat; and
■ Enhanced recreational opportunities
These are baseline costs for Storm Water Management that the City incurs,
regardless of total parcel size or property values. These baseline costs
include components of the NPDES MS4 program, personnel, street sweeping
equipment, and regular maintenance of the system. Therefore, all properties
currently contribute to the City's storm water management system.
3.3 Assuring Success
To assure success in adopting a utility, the need for the utility must be
understood by the public. The following steps should be taken:
1. Consideration of the implementation. If the mechanisms for billing and
handling revenue are in place, as is the case with sewer and water
charges, there is one less hurdle to cross.
2. A second point to be considered is who will provide the majority of the
revenue. The public must believe the right properties are being charged
the right amount.
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City of Lino Lakes, Minnesota Page 12
3. A base unit has been developed for single - family residential properties,
which includes rural residential properties.
3.4 Key Elements (Kremple, 1988)
There are two fundamental principles to a storm water management program:
1. All real property within a sub watershed will benefit from installation of
storm water management facilities.
2. The cost of developing storm water management facilities should be
assessed against the property in a basin.
These principles may not be easy for property owners to understand at first,
but they are key to the storm water management concept. It is difficult for a
property owner who lives on top of a hill to understand how the construction
of a water quality basin or a storm drain in a low -lying area benefits them.
It is important to recognize that development adds to existing drainage and
pollutant loading problems. The property owner on the hill has, by
converting the natural ground 'cover into streets, driveways and rooftops,
increased the runoff. This contributes to the drainage and water quality
problem of neighbors in low -lying areas. To some extent then, the property
owner on the hill should contribute to the cost of correcting that problem.
3.5 Utility Advantages and Disadvantages (Jouseau, 1983)
3.5.1 Advantages
1. Properties causing or contributing to the need for runoff management pay
into the utility.
2. The change is directly proportional to runoff generated by specific land
uses.
3 A self- financing system is not in competition with general services
funds,
4. Existing and new developments both pay.
5. The system is flexible.
6. ` The utility provides a continuous source of revenue.
7. It provides a specific dedicated fund for storm water management.
8. The administrative structure for collecting fees is usually in place.
3.5.2 Disadvantages
1. Some initial costs are encountered in developing the rate formula and
philosophy.
2. The utility may require an expanded administrative structure including
establishment of a billing system if none currently exists.
3.6 Program Administration
Administration for developing the storm water management utility involves
the following:
Feasibility Study 112316
City of Lino Lakes, Minnesota Page 13
• Development of quarterly rates based on funding needs;
• Modification of billing and collection systems;
• Determination of responsible party(ies) to monitor program
implementation;
• Solicitation of comments from legal and financial advisers; and
• Public information.
3.7 Ordinance
The legal basis for the utility should be an ordinance used to guide the
corresponding City policy. The ordinance establishes the utility, and outlines
the following:
• Calculation of utility fees;
• Credit system;
• Exemptions;
• Payment of fee;
• City policy; and
• Supporting computations.
A model ordinance is provided in a subsequent section of this report. The
model ordinance differs from some of the more common ordinances in that it
establishes a mathematical basis behind the fee system, supported by
standard engineering practices.
3.8 Public Hearing
A public hearing is required before the ordinance can be adopted. The
hearing provides the forum for the general public to speak either for or
against the ordinance.
4.0 Fee Basis
4.1 Philosophy
The general philosophy behind the storm water utility program is simple -
contributors pay (Jouseau, 1983). To develop a fee basis, Lino Lakes must
make a determination of which properties pay what amounts.
The utility is typically supported by all developed (non- vacant) property
within the community. A base unit has been developed for single- family
residential properties, which includes rural residential properties. Based on
existing land use, the extent of each property classification is estimated.
Next, the percentage of impervious area associated with each property
classification is determined
Using methods outlined by the Soil Conservation Service (Midje, 1992),
typical land categories and relative percentages of impervious areas can be
determined. Based in part on the percentage of impervious area on a parcel, a
runoff index can be assigned to each property type. The runoff index or curve
number (CN) is used to estimate the relative amount of rainfall that will run
off a parcel.
Feasibility Study
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112316
Page 14
4.2 Cause and Effect
To remain fair to all properties, the utility is based on how much a particular
parcel contributes to the storm water program needs. The amount of
contribution should not be based solely on the amount of rooftops and
pavement, or pervious area, on a parcel. The contribution should also
consider how much rain actually runs off.
Different amounts of rain will produce different amounts of runoff. However,
the difference in runoff for a residential property and a commercial site area
is not constant for all rainfall depths. Therefore, a rainfall depth should be
used in the revenue equation that will result in the various properties paying
proportionate amounts.
4.3 Run -Off Equation
The revenue equation should not be arbitrarily set based on pre -set factors
from another community's ordinance. To be able to demonstrate a rational
basis for utility fees, the revenue equation should be based on standard
engineering practices. The revenue equation follows the Natural Resources
Conservation Services (NRCS previously SCS) storm water runoff
methodology outlined in the SCS National Engineering Handbook," Section
4 - Hydrology (Mockus,1969).
The general runoff equation is:
Where:
P
S
0= (P - 0.2S'2
P + 0.8S
Actual Runoff
Potential Maximum Runoff
Potential Maximum Retention and initial rainfall abstraction
The "S" term can be expressed in terms of the runoff index, or curve
number (CN).
S = (1000 /CN) - 10
Tables are easily developed for convenient solution. For determining utility
fees, P remains constant and CN has been assigned to each of the land use
categories.
4.4 How Much Rainfall?
The majority of the developed part of most of our communities is residential.
Of the nonresidential developed land uses, commercial land use
predominates. As an example, the Table 2 compares the percentage of total
runoff contributions for a residential curve number of 83 (CN 83) versus
Feasibility Study 112316
City of Lino Lakes, Minnesota Page 15
commercial/industrial curve number of 94 (CN 94) considering different
rainfall depths.
Greater runoff, and its associated pollutant load, is generally related to the
more intensely developed properties (commercial/industrial). Therefore,
using the basic premise of the utility (contributors pay), a rainfall amount that
will result in highly developed properties paying more than residential
properties should be used.
4.5 Typical Rainfall
A review of utility programs in other communities shows that a two -inch
rainfall has typically been used in determining utility. As illustrated in
Table 2, a two -inch rainfall results in almost four times the runoff from a
commercial/industrial acre then from a residential acre. Therefore,
commercial /industrial properties would pay up to four times as much as a
residential parcel of equal size.
Table 2
Rainfall /Runoff Ratios Example
Rain Depth
Runoff
Commercial/
Industrial
Residential
Ratio*
1"
0.32"
0.01"
32.00
2"
1.10"
0.29"
3.79
3"
1.99"
0.81"
2.46
4"
2.92"
1.46"
2.00
5"
3.88"
2.19"
1.77
2" Rainfall
Type B Soils
1.40"
0.70"
2.0
1" Rainfall
Type B Soils
0.5"
0.13"
3.85
* Ratio equals commercial runoff divided by residential runoff.
* This table uses typical curve number utilized in Minnesota Storm Water
Utilities.
There is also a statistical basis for the two -inch rainfall. A two -inch rain can
be expected to be equaled or exceeded once annually in any given 24 -hour
period; i.e., a one -year event (Oberts, 1984). While it is true that rainfall
amounts of less than two inches occur more frequently, smaller rainfall
events (one inch, for example) create the majority of the annual runoff
volume and pollutant load.
Feasibility Study 112316
City of Lino Lakes, Minnesota Page 16
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Land Use Categories
Existing land use was used to determine each property's contribution to the
utility. Table 3 illustrates typical runoff curve numbers.
Using these criteria, land use categories and the respective curve numbers for
use in the runoff equation are illustrated below. For the respective land uses,
the curve numbers (CNs) are applied to determine the amount of runoff for
an area resulting from a specified amount of rainfall as illustrated in Figure 1.
The contribution towards the storm water utility is equated to the percentage
of the total runoff for each property type.
Figure 1 — NRCS /SCS Runoff Model Runoff Example
NRCS /SCS Runoff Model
1.80 -
1.60 -
Runoff
(Inches)
1.40-
1.20 -
1.00 -
0.80-
0.60-
0.40-
0.20-
0.00 —fir m, . 1 > i .r _— � : P ..> _ ._:.�. .
• C` o� o o o � o � 0 o
`e o � �
0
m
0 CO CO \ 1,
Q 0' °'c
�� A °m V
dzr `NCO ,_°�
Q
Feasibility Study 112316
City of Lino Lakes, Minnesota Page 17
Table 3
Lino Lakes Runoff Curve Numbers
Typical Land Use Category
Runoff Index (CN)
Residential
70
High Density Residential
85
Industrial
92
Institutions
88
Commercial
88
Vacant
Exempt
Table 4
Lino Lakes Land Use Breakdown
(Parcel Data)
Land Use Type
Sum Acres
Commercial
263
Institutional
418 ,.
Industrial
201
High Density
Residential
162
Residential
8274
Total
9318
4.6 Typical Charges
To determine typical charges, the estimated expenditures for a given period
of time are apportioned according to the percentage of total runoff attributed
to that ` property type. Typical utility charges for the proposed budget are
given in Table 5. These charges would fund 100 percent of the non -
assessment revenue for the proposed budget.
The utility rates can be adjusted to raise different levels of revenue by
changing the relationships of what one property type pays in comparison to
another, or by increasing the charge per acre. Additionally, undeveloped
properties can be charged a low initial flat rate to bring all parcels into the
rate collection system.
The utility will not eliminate existing funds derived from new developments
through assessments or developer fees. All new plats will continue to pay for
its own water management features per the Surface Water Management Plan
requirements. The utility will, however, allow Lino Lakes to undertake the
new programs related to storm water management.
Table 5 results in monthly fees that are similar to other communities, which
are shown as annual fees in Map 1 from the MetCouncil 2007 for
comparison purposes.
Feasibility Study 112316
City of Lino Lakes, Minnesota Page 18
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4.7 Exclusions
Some properties may be excluded from the utility. In the example provided,
only street and highway right -of -way, lakes, wetlands and parks are excluded
under this formula. In development of the final ordinance agricultural/vacant
land and other properties should be reviewed to determine if a low, flat rate
fee will be used or if they will be considered exempt.
4.8 Credits
Communities that implement a storm water utility generally incorporate a
method of applying credits for property owners who take measures to reduce
storm water runoff. Such measures can include, but are not limited to, on site
retention, infiltration or other best management practices (BMPs).
Credits may be applied for to reduce the utility fee for individual parcels.
Credits can be considered where runoff is retained on a single parcel or water
quality enhancement projects have been implemented.
Lino Lakes Storm Water Utility Budget
6/28/2010
Estimated Stormwater
Utility Budget
2010 - 2015
2011
2012
2013
2014
2015
Personnel - 1.5 FTE
Baseline
$110,000
$115,000
$120,000
$125,000
$130,000
Sweeping /Repairs
(contracted)
Baseline
$50,000
$51,500
$53,045
$54,636
$56,275
Engineering
Baseline
$60,000
$61,800
$63,654
$65,564
$67,531
Public Education/Training
(NPDES)
Baseline
$10,000
$10,300
$10,609
$10,927
$11,255
Materials /Misc supplies
Baseline
$20,000
$20,600
$21,218
$21,855
$22,510
Equipment (1)
Baseline
$57,500
$57,500
$57,500
$57,500
$57,500
Sub -Total Baseline
$307,500
$316,700
$326,026
$335,482
$345,071
SWMP (ditch, pipe, pond)
cleaning
Usage
$195,000
$200,850
$206,876
$213,082
$219,474
Total Budget
$502,500
$517,550
$532,902
$548,564
$564,545
Annual
Average=
$533,212
1) Equipment Needs
Sweeper
$250,000
Jetter/Vac - 1/2 of Cost
(other San. Swr.
$140,000
Single Axle Dump
$185,000
$575,000
Estimated 10 year service
life
/10
Annualized Cost
$57,500
The above example assumes 0% funding of the storm water costs of the forecasted street reconstruction by the
Storm Water Utility.
Feasibility Study
City of Lino Lakes, Minnesota
112316
Page 19
Lino Lakes SWU Revenue Forecast
Runoff
Total Curve Runoff Retention Runoff Depth Vol.
Revenue
Monthly Revenue Credit Credit Factor Index (inches) (inches) (ac -ft)
Address Charge (monthly) Assumption $$ Estimate (per acre) (CN) (S) (Q) (QA)
27 II
EXEMPT
EXEMPT
EXEMPT
253
0.24
O
00
O
00
N
-
L60
r
00
O
4.29
'o
r
-"
r
00
O
so
to
--
0
0,,
--:
EXEMPT
Gross Est. Credits Net
O
r
85
N
rn
00
00
00
00
$2.50
$166,113
O
0
O
69
V1
O
M
44
$51.41
N
O
7
69
N
O
V
69
Cl,
0
EA
r
0
EA
V ..
O
69
N
0
69
M
d
M.
Annual Revenue
NA
%0Z
0
O
M
0
n1
0
O
V
00 00
44
$5,346
v
N
v
^
69
00
h
O
69
$16,754
r
b
00
69 Wi
O
Per Acre
Per Acre
Per Acre
Per Acre
Utility
Factor
O
O
3.30
5.14
o
4
4.01
8274
162
263
201
r
O,
DIResidential
High Density
Residential
Commercial
Industrial
G
O
c
Agricultural, Vacant
Road Right -of -Way
Urban Transitional
Open Water
Total
Feasibility Study 112316
City of Lino Lakes, Minnesota Page 20
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Map 1. 2007 Stormwater Utility Fees
(in dollars)
2007 suxmn.a er annual rcxs
CD No utility
0
NIP
- 12
12 -34.2
34.2 - 54.36
5436 - 7332
73.32 -1 17.24
r
0
Storm Water Utility Fees — Nearby Cities
City
Year Created
Annual Fee
Blaine
2007
21.00
Centerville
1997
20.00
Circle Pines
2005
36.00
Mounds View
1993
30.00
Shoreview
1991
43.60
Feasibility Study 112316
City of Lino Lakes, Minnesota Page 21
5.0 Implementation of the Utility
Prior to deciding whether or not to implement a utility, a public involvement
program is usually developed in an effort to measure public acceptance of the
program. Once public support exists, implementation of a utility will require
several steps:
• Drafting a final ordinance to provide the legal basis for implementation
of the utility.
■ Establish the individual property charges based on acreage, land use, and
the rate as established by ordinance.
■ Modification of the current billing procedure.
• Create a fund to which utility revenues would be paid into, and from
which revenues can be made available for identified expenditures.
• Identify the Administrator of the Surface Water Management Utility. The
Administrator, typically the Director of Public Works, City Engineer, or
City Administrator, is responsible for managing the funds, establishing
budgets, and handling rate adjustments.
The major effort in administering the utility will be to determine the area and
land use category for each parcel in Lino Lakes. Additional effort may be
necessary to expand the billing process to include those properties that do not
currently receive City water and sewer service.
5.1 Public Acceptance
5.1.1 Public Information Program
The storm water utility concept will succeed if it has broad public
understanding and support. Additionally, the decision makers and the public
must understand the benefits to be derived from such a program.
5.1.1.1 Articles
Articles in existing utility billings and in the local newspaper can help
explain the program. This "spreading the word" aspect cannot be over
emphasized. SEH has prepared a Storm Water Utility information sheet (1
page, 2 sided) that can be used to help educate the public.
Unless overwhelming community acceptance of such a program exists,
ample time should be set aside for the public information program.
5.1.1.2 Special Mailings
Most communities have developed special promotional mailings to introduce
the utility concept to the community. These procedures vary from simple to
elaborately printed documents. Typically, the mailings outline the need for
the program and typical charges by property classifications. In some cases,
these promotional materials have also been used to announce upcoming
informational meetings.
5.1.1.3 Informational Meetings
Community leaders can interface with the general public at informational
meetings designed to explain the reason behind the utility and how the utility
Feasibility Study 112316
City of Lino Lakes, Minnesota Page 22
will impact individual properties (Jouseau, 1983). An example format would
involve a late afternoon/early evening open house followed by a formal
presentation.
5.1.1.4 Public Hearing
A public hearing is held for final consideration of the utility. The hearing
represents a formal opportunity for citizen input prior to Council action
adopting the utility ordinance.
5.1.1.5 Common Questions and Answers
Appendix B of the report illustrates typical questions (and corresponding
responses) that arise during consideration of the utility.
5.2 Ordinance Development
5.2.1 Model Ordinance
The following model ordinance is intended to outline the key elements to be
included in official controls to support the utility.
The legal basis for the utility should be an ordinance and corresponding Lino
Lakes policy. The ordinance establishes the storm water utility, and outlines
the following:
• Calculation of utility fees;
■ Credit system;
• Exemptions;
• Payment of fee;
■ City policy; and
■ Supporting computations.
A model ordinance is provided on the following two pages. The model
ordinance differs from some of the more common ordinances in that it
establishes a mathematical basis behind the fee system, supported by
standard engineering principles and practices. A drafted Lino Lakes Policy
Statement in support of the basis and function of the Storm Water Utility
follows the model ordinance.
6.0 Storm Water Utility Ordinance
6.1 00.010 - General Operation
The City of Lino Lakes storm water system shall be operated as a public
utility (hereinafter called the "Storm Water utility" or "utility "), pursuant to
Minnesota Statute Section 444.075, from which revenues will be derived
subject to the provisions of this Chapter and Minnesota Statutes.
6.2 00.020 - Definitions. Utility Factor
6.2.1 Utility Factor
The utility factor is defined as the ratio of runoff volume, in inches, for a
particular land use, to the runoff volume, in inches for an average single -
family residential, assuming a 2 -inch rainfall and Natural Resources
Conservation Services (MRCS) "Type B" soil conditions.
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City of Lino Lakes, Minnesota Page 23
6.2.2 Storm Water Utility Fee
The Storm Water utility fee is defined as the annual charge developed for
each parcel of land.
6.2.3 Monthly Utility Revenue
The utility revenue is the estimated monthly expenditures for planning and
inventories, capital expenditures, personnel and equipment and operation of
the storm water utility, in accordance with established City of Lino Lakes
policy.
6.3 00.030 - Storm Water Utility Factors.
The Storm Water Utility fee shall be determined by first determining the
percentage of total runoff in Lino Lakes which is attributed to single - family
residential property. The fee per acre for single- family residential is
computed by computing the product of the runoff percentage and the Storm
Water Utility Revenue, divided by the estimated total acres of single - family
residential land use in the City of Lino Lakes. The per acre fee for all other
individual parcels shall be defined as the product of the single - family
residential per -acre fee, the appropriate utility factor and the total acreage of
the parcel. Single-family residential, including rural /agricultural residential
parcels shall be charged on a per household basis.
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City of Lino Lakes, Minnesota Page 24
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The utility factors for various land uses are shown in the following table.
Table 6
Utility Factors for Various Land Uses
Land Use
Utility
Factor
Residential
1.00
High Density
3.30
Commercial
5.14
Industrial
4.01
Institutional
4.01
Parks /Open Space /Cemeteries*
EXEMPT
Road Right -of -Way
EXEMPT
Lakes /Streams /Wetlands
EXEMPT
Undeveloped
EXEMPT
6.4 00.040 - Credits
The Council may adopt policies, by resolution, for adjustment of the Storm
Water Utility fees. Information to justify a credit adjustment must be
supplied by the property owner. Such adjustments of fees shall not be
retroactive. Credits will be reviewed regularly by City Staff.
6.5 00.050 - Exemptions
The following land uses are exempt from the storm water management fee:
1. Public Road Right-of-Way
2. Lakes
3. Wetlands
4. Municipal, County, and State Properties
5. Agricultural/Rural Properties with no improvements or residence
6.6 00.060 - Payment of Fee
Storm Water Utility Fees shall be billed every month with water and sanitary
sewer bills. The fee shall be due and payable under the same terms as water
and sanitary sewer utility bills. Any prepayment or overpayment of charges
shall be retained by the City of Lino Lakes and applied against subsequent
fees.
6.7 00.070 - Appeal of Fee
If a property owner or person responsible for paying the Storm Water Utility
fee believes that a particular assigned fee is incorrect, such a person may
request that the fee be re- computed.
6.8 00.080 - Penalty for Late Payment
Each billing for storm water utility fees not paid when due shall incur a
penalty charge of ten percent (10 percent) per billing cycle of the amount
past due.
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City of Lino Lakes, Minnesota Page 25
6.9 00.090 - Certification of Past Due Fees on Taxes
If any three consecutive Storm Water Utility fees have not been paid when
due, then a penalty as set forth on Section 00.080 shall be added to the
amount due. Any such past due fees may then be certified to the County
Auditor for collection with real estate taxes on the following year, pursuant
to Minnesota Statue. In addition, the City of Lino Lakes shall also have the
right to bring a civil action or to take other legal remedies to collect unpaid
fees.
- -- End of Proposed Lino Lakes Storm Water Utility Ordinance - --
7.0 City of Lino Lakes Storm Water Utility Proposed City Policy
7.1 Policy Statement
All properties within the City of Lino Lakes shall contribute to the Storm
Water Utility in an amount proportional to the runoff contributed by each
particular parcel.
7.2 Exemptions
Street and Highway Right -of -Way shall be exempt from all charges.
Lakes listed by the Minnesota DNR as Natural Environment Waters,
Recreational Development Waters or General Development Waters shall be
exempt from all charges.
Wetlands on all nonresidential property which are not part of a formal storm
water management system and which are maintained in a natural state shall
be exempt from all charges.
Parkland and open spaces shall be exempt from all charges.
Wastewater facilities and airports shall be exempt from all charges if they are
permitted individually under the Minnesota Pollutant Discharge Elimination
System (NPDES) and are separate, identified Municipal Separate Storm
Sewer Systems (MS4's) under NPDES. If it is determined at a later date that
wastewater facilities and airports fall within Lino Lakes NPDES Phase II
MS4 permit, this exemption may be changed.
Agricultural and/or Rural properties that have not been improved or modified
with roads and/or structures shall be exempt.
Municipal, County, and State owned properties shall be exempt.
7.3 Fee Basis
Land Use - Land use for determining storm water utility fees shall be the
existing land use at the date of enactment of the Storm Water Utility
Ordinance. As land is developed, or redeveloped, the fees will be re-
computed based on the revised land use. If downstream facilities (storm
sewers, ponds, etc.) have been developed in anticipation of future
development, undeveloped property shall be treated as fully developed.
Soils - Natural Resources Conservation Services (NRCS) - Type B soils shall
be assumed for determining the runoff index (CN) in the revenue equation.
Rainfall (P) - A 2 -inch rainfall will be used in the revenue equation. Runoff
Feasibility Study 112316
City of Lino Lakes, Minnesota Page 26
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Indices (CN) - The runoff indices for the property classifications are as
follows:
Table 7
Runoff Indices
Land Use
Runoff Index
(CN)
Residential
70
High Density
85
Commercial
92
Industrial
88
Institutional
88
Parks /Open Space /Cemeteries
EXEMPT
Road Right -of -Way
EXEMPT
Lakes /Streams /Wetlands
EXEMPT
Undeveloped
EXEMPT
Revenue Equation - The revenue equation for computing the runoff volume
(Q) shall be based on the runoff equation in the Soil Conservation Service
(SCS) National Engineering Handbook Section 4 - Hydrology. The equation
is as follows:
Q (P- 0.2S)2
P +0.8S
7.4 Credits
Storm Water Utility fees may be adjusted under the conditions stated below.
It shall be the responsibility of the property owner to provide justification for
the fee adjustment. Credits must be applied for by (date) of the year
preceding the year in which the credit is to be considered.
where S = (1000 /CN) - 10
and P = 2"
Storm Water Retention - If it can be demonstrated that an individual parcel
retains all or a portion of the rainfall that it receives, the storm water
management fee will be reduced by a percentage equal to that percent of the
parcel which produces no external runoff. A fee reduction of 20 percent or
greater must be demonstrated if the credit is to be applied.
Property Under - utilization - If it can be demonstrated that a parcel's existing
land use is developed to a lower density than assumed in the fee
determination, and that no downstream improvements have been constructed
based on potential development of the parcel, a reduction in fee may be
considered.
Water Quality Facility - Those parcels having facilities constructed
specifically for the purpose of water quality enhancement may be eligible for
a credit. The credit will be based on the removal efficiency of the facility.
The property owner shall provide the calculations demonstrating the
phosphorus removal efficiency of the facility. The credit will be equal to 60
Feasibility Study 112316
City of Lino Lakes, Minnesota Page 27
percent of the phosphorus reduction percentage. A fee reduction of 20
percent or greater must be demonstrated if the credit is to be applied.
Natural Buffers — buffers that are either preserved or created around Public
Water Bodies (as defined by MNDNR) in accordance with the MNDNR
Shoreland Recommendations may be eligible for a 20% fee reduction.
7.5 Adjustment of Fees
Storm Water utility Fees will be adjusted under the following conditions.
Revision of Storm Water Revenue - The estimated expenditures for the
management of storm water shall be revised at a frequency determined by the
City Council. The fees will be adjusted accordingly and will follow
established procedures for this adjustment of utility (water and sewer) rates.
Application for Credit — The City shall establish and utilize a credit
application form for consideration of fee reduction. It is the responsibility of
the property owner to apply for a credit.
Change in Developed Condition of Parcel - In the case of residential
property; the revised utility rate will take effect immediately following
occupancy of the dwelling. With all other development, the revised utility
rate will be applied as soon as drainage /water quality features are developed.
- -- End of Proposed Lino Lakes Policy Statement - --
8.0 Billing Options
Several key decisions exist relative to billing options.
■ How should it be billed?
• Who should pay the bill?
Three options are considered for billing.
A separate bill.
■ A line item on the annual County tax statement; and
• A line item on the existing utility bills (water meter).
The separate bill option was eliminated as being too expensive. The option to
add a line item to the County tax bill seems more difficult to administer and
also has a stronger connotation of being a tax rather than user fee.
The option to add a line to existing water meter utility bills is recommended
since it is less expensive, the customer base is in place, and it closely aligns
with the party who should be paying the storm water utility fee.
The next question addresses who should be paying the bill (i.e., the property
owner or the occupant/tenant). If the property owner pays, the
occupant/tenant would end up paying eventually through their rent. It is
assumed that for non -owner occupied properties, that the existing
arrangement between those two parties is already being resolved with the
water bill and this should minimize later complaints, appeals, and conflict
Feasibility Study 112316
City of Lino Lakes, Minnesota Page 28
resolutions. It is further recommended that storm water utility billing be
aligned with existing water accounts.
For those properties not currently hooked up to municipal services, an
account will be created to bill the Storm Water Utility on a quarterly basis.
8.1 Establishing Individual Utility Bills
The process of establishing billing from property identification information
and incorporating into the existing billing system requires a succession of
interrelated steps. It is envisioned that this process will involve the City of
Lino Lakes building a data set, likely with the assistance of outside technical
support.
Simply stated, the challenge is to synchronize parcel areas with their existing
land use, multiplied times the billing rate for each respective location code.
This land use can be derived from the assessor's land use code in the tax roll,
an existing land use map, the official zoning map or a combination of these
sources which may involve field verification in some instances. Since the
zoning map may not indicate existing land use, that option is not
recommended. It is recommended that the assessor's land use code be relied
on with cross checks made between the existing land use map and zoning
classifications.
As described earlier in the text, single- family residential properties, including
rural /agricultural residential will be billed a flat per- household rate. Higher
density uses will be billed by the acre. As such, Lino Lakes staff will prepare
a file with fields for billing code, property identification number or PIN, land
use type, rate, acreage (when applicable), and the amount of the monthly bill.
It is envisioned that this process will involve the City of Lino Lakes building
the data set, with the assistance of outside technical support if needed.
8.2 Conflict Resolution
A manual process of conflict resolution is required. The process will verify
that all properties have been accounted for and the fee is appropriate. The
existing GIS system can provide a graphic solution, but will not eliminate the
need for a manual review.
8.3 Initiating New Billings
An account can be established before utility service begins. It is
recommended that the lot (parcel) not be billed until it is developed and the
owner /occupant is paying a water bill. Setting up an initial file or account
could be triggered by an application for a building permit.
Feasibility Study 112316
City of Lino Lakes, Minnesota Page 29
9.0 Conclusions and Recommendations
9.1 Conclusions
From the material presented in this report, the following conclusions have
been made:
• A basic principle of a SWU should be that revenues equal costs.
• The Storm Water Utility method is the best financing option because it is
fair, dependable, acceptable, and flexible.
• A Storm Water utility, supported by the service charge, provides
financing for storm water management improvements, based on a
particular property's contribution of runoff water to the drainage system.
• The utility benefits a community by providing a dedicated fund for
drainage system improvements and maintenance and water quality
enhancement.
• The key elements to the utility approach are:
• All properties benefit; and
■ All developed properties should pay.
■ "Contributors Pay."
9.2 Recommendations
• A storm water management utility (Storm Water Utility) should be
utilized to pay for Lino Lakes' storm water management program
drainage system.
• Fees shall be based on runoff contributed to the drainage system,
following NRCS (SCS) criteria and a two -inch rainfall. Utilizing the
Curve Number Values for a type "B" soil.
• An ordinance should be prepared as the legal basis for the utility.
• The existing land use (vs. zoning) should be used to determine the
storm water management utility fees.
• The recommended rate for the Lino Lakes Storm Water Utility
should be a $2.50 REU per month ($30 /year). This is projected to
fund 100% of the forecasted Storm Water Budget Costs.
Feasibility Study 112316
City of Lino Lakes, Minnesota Page 30
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10.0 References
Fifield, Rusty, 1997. Financing Storm Water Improvements. Ehlers and
Associates, Inc. Memorandum to the City of Lake St. Croix Beach.
September 8, 1997.
Fiest, Dennis, 1995. Personal Phone Conversation regarding Public Facilities
Administrations role in MPCA Low Interest Loan Program.
Financing Water Quality Management & Stormwater Utilities. Metropolitan
Council Environmental Services
Honchell, Charles V., 1989. Financing Storm Water Projects Using a Storm
Water Utility; presented at a March 22 seminar at the Vadnais Heights
City Hall.
Honchell, Charles V., 1986. Creating a Storm Drainage Utility. American
Public Works Association Reporter, pp. 10 -11.
Jouseau, Marcel, 1983. Storm Water Management: Financing Local
Storm Water Management. Publication No. 10 -83 -143 of the
Metropolitan Council of the Twin Cities, pp 37.
Kremple, Roger E., 1988. Storm Water Management by Utility Approach
, Proceedings of 1988 National Conference of Hydraulic Engineering,
Steven R. Abt and Johannes Gessler (Eds.), American Society of Civil
Engineers, New York, pp. 1234 -1239.
Lutgen, Tom, et al., 1991. Minnesota Department of Natural Resources,
Minnesota Public Drainage Manual. September.
Midje, Howard, 1992. Hydrology Guide for Minnesota. U.S. Department
of Agriculture, Soil Conservation Service, pp. 160.
Mockus, Victor, 1969. SCS National Engineering Handbook, Section 4
Hydrology. U.S. Department of Agriculture, Soil Conservation
Service, pp. 10.3- 10.6a.
Nelson, Arthur C., 1995. System Development Charges for Water,
Wastewater and Storm Water Facilities, pp. 173.
Oberts, Gary L., 1984. Surface Water Management: Precipitation
Frequency Analysis for the Twin Cities Metropolitan Area, p. C -4.
Roseville, Minnesota, 1983. Storm Drainage Utility Leaflet.
Skirwa, Peter., 1996. General Correspondence regarding MPCA Low Interest
Loan Program, April 10, 1995.
Veal, Steve, May 1996. Small Cities Await Flood of Storm Water
Regulations. American City & County, pp. 42 -47.
Feasibility Study 112316
City of Lino Lakes, Minnesota Page 31
Appendix A
Legal Considerations (Joseau, 1983)
These charges are to be used for the financing of storm water systems including the conveyance system,
holding areas, ponds, and related facilities. Storm water projects include the cost of construction,
reconstruction, repair, enlargement, improvement or other obtainment and the maintenance, operation, and
use of such facilities. The charges made for service rendered shall be, as nearly as possible, proportionate to
the cost of providing the service.
An important issue to decide when a city is considering user charges is the notion of service and to whom the
service is rendered. The concept of a charge for service rendered is unclear with reference to storm sewer
service. Of particular interest is: (1) what is the service; and, (2) to whom is the service rendered?
To answer these two questions one should look at the purpose of proper storm water management and look at
the legislative intent. Proper storm water management is undertaken for two reasons:
1. To provide a conveyance system for the increased volume and rate of surface runoff resulting from
activities on the land, whether they are urban or intensive agricultural uses.
2. To insure that the surface runoff does not damage riverain or Lakeshore properties, or the ecology of a
lake, thereby lowering riverain and lakeshore property values.
The definition of "service rendered" helps in delineating who will receive a storm water sewer service. First, a
service is generally provided to the properties generating runoff because they will ultimately rely on a storm
water conveyance system. The degree to which a property relies on or uses the system is dependent on how
much runoff a property generates beyond the natural runoff level. A user charge rate structure then should
differentiate between types of land uses, density of use and parcel size, all significant in determining runoff.
The rate structure should also consider instances where no runoff is generated because of land characteristics,
or management practices.
In addition, a service is provided to properties in areas susceptible to increases in runoff, especially low -lying
areas, riverain and lake shore properties. The degree of protection against the effects of flooding, erosion and
water quality degradation is commensurate with the proximity to the creek or its floodplain, or to the lake or
wetland. Some modifying factors would include topography, views and access to the lake. These types of
areas all to often serve as a reminder of the effect of poor storm water management when they flood. The
"problem ", often seen as the flooded property, is really the result of poor storm water management up slope.
The real problem is how the up slope (or upstream) properties deal with their storm water
Feasibility Study 112316
City of Lino Lakes, Minnesota A -1
Appendix B
Typical Questions
The following is intended to provide an example of typical questions that arise during the consideration of the
utility:
"Why should I pay if I don't drain into a (drainage) system? I am being taxed by the City of Lino
Lakes now for services I do not receive!"
There are two principles fundamental to the storm water management program:
1. All real property within a drainage basin will benefit from installation of an adequate storm drainage
system.
2. The cost of installing an adequate drainage system should be assessed against the developed property in a
basin.
These principles may not be easy for property owners to understand at first, but they are key to the storm
water management concept. It is difficult for a property owner who lives on a hill to understand how the
construction of a storm drain in a low -lying area benefits him. But storm drainage includes much more than
just flood control. Keeping streets open to emergency vehicles, maintaining ponds and open channel so they
do not become health and safety hazards, and promoting use of drainage facilities for recreation all contribute
to enhancing the quality of life.
It is important to recognize that development adds to existing drainage problems. The property owner on a hill
has, by converting the natural ground cover into streets, concrete and rooftops increased the storm water
runoff. This contributes to the drainage problem of neighbors in low -lying areas. To some extent then, the
property owner should contribute to the cost of correcting that problem.
"Don't create a separate government agency! Why is the present engineering department not capable
of handling this need ?"
A utility is defined as service charge based on a property's contribution of water to a drainage system. The
utility is a financing method, not an agency; the current administration will be the administrator of the
program. The utility will be the primary responsibility of the engineering department.
"Is the utility really necessary? Hooray! - Now we get taxed because it rains - good idea - consider one
for wind too! Or maybe sunshine!"
Rainfall causes the need for an adequate drainage system. Development increases the volumes of runoff and
associated pollutant loads. To address water quantity (flooding) and water quality issues, a utility or user
charge is necessary to finance the cost of the programs.
"Why do we pond storm water runoff today instead of just letting water runoff as fast as possible into
ditches, storm sewers, rivers, and lakes like we did for years ?"
Ponding of storm water runoff allows Lino Lakes to take a proactive rather than reactive approach to
managing storm water runoff. As development increases, runoff increases as well. The use of ponding not
only provides for the protection of property (flood control), but the reduction of peak flow rates also reduces
the cost of installing storm sewer systems and ditch/culvert systems to carry the runoff from point A to point
B.
Additional benefits of storm water ponding include Storm Water protection and ground water protection. The
use of storm water ponds can prevent pollutants associated with storm water from being carried downstream
to lakes and wetlands thereby enhancing downstream water quality. Additionally, by keeping water on the
land rather than letting it drain away, infiltration of storm water can help to recharge the ground water levels.
Feasibility Study 112316
City of Lino Lakes, Minnesota B -1
"Will there be a charge on vacant land ?"
Under the proposed policy vacant (undeveloped and non - impacted) land will not be charged.
"Will there be a different charge on large lots ?"
To keep the utility formula as simple as possible, a flat rate charge was developed for all single - family
residential households in Lino Lakes regardless of the size of the individual lot. The basis for this decision is
that although the overall lot size may vary, the amount of impervious surface for an individual single - family
residence is very similar. Since the amount of impervious surface is similar for most of these lots, they are all
charged the same amount.
"Can we assess the State and /or County for their roads ?"
While it is true that State and County roadways and rights -of -way, as well as Lino Lakes' own roadways and
rights -of -way, produce significant runoff; roadways have not been included in the utility formula. Although
there is no specific reference in Chapter 444 of Minnesota State Statutes prohibiting communities from
charging publicly owned rights -of -way, such a charge is only taking money from one pocket and putting it
into another. Other communities have not considered a charge for public roadways under their utility
formulas.
"I understand that the utility fund is trying to generate revenue. What are we receiving that we are not
already being given ?"
The utility fund finances Lino Lakes' storm water management program. Issues to be addressed include:
• Water quality improvements;
• Wetland protection and enhancement;
• Erosion and sediment control;
• Drainage system maintenance and replacement;
• Community education; and
• Improved fish, wildlife, and recreational opportunities.
Although activities such as addressing localized drainage problems and street sweeping are services currently
provided by Lino Lakes, the utility provides the means to take a proactive management approach rather than
reacting to problems after they have occurred.
"Why can't persons police themselves in regard to storm water runoff, especially involving pollutants,
etc. ?"
People can certainly police themselves. Another aspect of the water quality management program is to raise
public awareness through public education efforts. Past history has shown that a lack of public awareness
regarding lawn care, for example, can result in water quality impacts to lakes, streams and wetlands. As the
general public becomes more informed about water quality issues, self - policing, as is suggested in the
question, can become a reality.
"Will there be a sales tax on the Storm Water Utility charges ?"
No sales tax is considered with the utility charge.
Feasibility Study 112316
City of Lino Lakes, Minnesota B -2
"What are the benefits of a Storm Water Utility ?"
This question will be addressed in two parts. First, the benefits of the storm water management program will
be discussed, and second, the advantages of the storm water utility as a financing method will be addressed.
Many of the benefits and services to be provided through Lino Lakes' water management program have
already been described. Lino Lakes' storm water management program will address wetland protection
through regulation (ordinances) and through capital improvements. Such efforts will help to protect the
natural amenities that are so important to residents of Lino Lakes. Second, flooding problems can be reduced
significantly by planning for proper ponding areas and storm water conveyance systems addressing the
increase in runoff from continuing development in Lino Lakes, in a cost effective manner.
The benefits of using a Storm Water Utility to fmance storm water management programs are numerous. First
of all, a utility is funded by a service charge on all developed parcels. Charges are based on the amount of
water that drains away or runs off from a particular parcel. Second, since there is a direct correlation between
water runoff and the impact it creates, the greater the runoff the greater the impact on storm waters and,
therefore, the greater the charge. Charges are not based on property value, as are property taxes. Third, tax -
exempt properties pay their fair share under the utility plan.
The utility is favored because (1) it is considered fair; charges are based on runoff rather than property value
as is the case with general taxes, (2) it is dependable; the utility is self - financing it does not compete with
other governmental services for revenues and it provides consistent funding which is kept in separate
dedicated funds, (3) it is simple and flexible; utility charges are similar to water and sewer charges the fee
system is adaptable to local situations and credits and exemptions can be built in, and (4) it is acceptable; no
increase in property tax is required and a regular small service charge is typically more acceptable to residents
than a large one -time assessment.
Feasibility Study 112316
City of Lino Lakes, Minnesota B_3
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Appendix C
Suggested SWU Credits Policy and Application Form
EXAMPLE
Storm Water Utility
Best Management Practices Credit
Background
On DATE the Lino Lakes City Council approved a Storm Water Utility (Ordinance No. XXX) to finance the
City's Storm Water Management Program. In addition, the Utility will be utilized to finance compliance with
the City's National Pollution Discharge Elimination System Phase II (NPDES Phase II) Storm Water
Pollution Prevention Plan (SWPPP) for the City's Municipal Separate Storm Sewer Systems (MS4) as
outlined in the City's Storm Water Permit.
The Utility provides for credits for the use of Storm Water Best Management Practices (BMPs) such as storm
water ponds, green space, undeveloped land, etc. Credits must be applied for by Dec. 15th of year preceding
the year in which the credit is to be considered. The amount of the credit will be determined by the City
Engineer and approved by the City Council. A property owner may appeal to the City Council regarding a
determination of the credit once per calendar year.
Commercial, Industrial, Institutional
A credit may be granted to a Commercial, Industrial or Institutional parcel that can demonstrate a minimum
reduction of 20% of the amount of storm water leaving the parcel via the use of an approved Storm Water
Best Management Practice (BMP). Credits can be combined to account for a total reduction of up to 75% of
the Utility Fee. Documentation must be provided to the City of for evaluation of the claim. It is strongly
suggested that the documentation be prepared by a licensed professional engineer of the State of
Minnesota and provide the necessary drawings and calculations to support the claim. It is the
applicant's responsibility to prove the claim.
Examples of Best Management Practices
1. Storm water retention and infiltration systems, grassed swales and drainage from parking lots into
grassed surfaces.
2. Storm Water Detention ponds are not eligible for a credit since the water from the ponds is discharged
to the City's storm sewer system. MS4.
Land Use Credits
Vacant Land Credit
Vacant land meeting the following criteria is to be excluded from the area used to calculate the monthly
charge.
• The property must not be developed in any way, or have been developed in the past ten (10)
years. The property must reflect land in an "undisturbed, natural state" with non - impacted soils
(i.e., the soils are not compacted).
• The vacant land must represent at least 50% of the total parcel
Feasibility Study 112316
City of Lino Lakes, Minnesota C -1
• Vacant land does not include "green space" as outlined below
Green Space Credit
Green space areas meeting the following criteria can receive up to a 75% reduction from the area used to
calculate the monthly charge.
• Green spaces shall be contiguous pervious vegetated areas incorporated into the developed parcel.
• The space shall not have more than 25% impacted, compacted soils. Examples of impacted spaces
are trails, ball fields, gravesites, golf courses and picnic areas.
• Green space must be 20 feet or more away from the nearest impervious surface or structure.
• The green space must be a minimum of 1 acre in size and not less than 25% of the total parcel.
• Grassed parking areas that are utilized more than 15 days per year are excluded from the green space
credit, as these are impacted, compacted soils.
Authority
Administrative implementation of this policy was reviewed by the Lino Lakes City Council on INSERT
DATE.
The Best Management Practices Credit Form, if not attached, can be obtained on the city's website at
www.xxx.xx in the storm water management section, or by calling Public Works at (XXX) XXX -XXXX
Feasibility Study 112316
City of Lino Lakes, Minnesota C-2
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EXAMPLE 1
Storm Water Utility 1
Best Management Practices Credit Form 1
Property Owner:
1
Street Address:
Lino Lakes, MN
1
Parcel I.D. # (If unknown, leave blank)
Contact Name:
Phone Number:
Email Address:
How should we contact you? Phone or Email?
When can we contact you with any questions?
Brief Description of the BMP or Land Use Credit:
For commercial, industrial and institutional properties only:
Estimated reduction in storm water volume:
Please attach any documentation supporting this claim to this application.
It is the applicant's responsibility to prove the claim.
Feasibility Study 112316
City of Lino Lakes, Minnesota C -3
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Appendix D
Example Public Education Flyer and Public Information Meeting Notice
Financing Maplewood's Storm Water Management
with a Environmental Utility
The Financing Dilemma
The cost el constructing, operating, and maintaining Maplewood% storm water facilities continues
to increase along with other municipal coatis. In fact, the storm drainage system is often the last
and most expensive public utility for cities to develop.
Traditional methods of financing storm water mprrn rents have become more complex in recent
years. Faced with increasing costs and continuous pressure to minimize prope ty taxes, cities may
lade the financial resources to undertake multi -year storm water management proram.
City general funds and special assessments have typically financed most of the necessary
improvements in the past Howevw, special assessments are often successfully challenged in
court.. Consequently, many communities lack the proper funding to address the increasing costs
related to storm water drainage, water quality management, and wetland protection.
Service charges, which have teen used by communities to finance sanitary sewer and water systems,
are now being applied to storm water management. The utility approach is gaining recognition as
the most equitable way to finance soon water management activities while allowing far development.
An eri irc mental utility has been the answer to the financial needs of the equation for many communities
What is an Environmental Utility?
lea`s start with what the utility is not. The utility is not a new level of
government, nor is the utility a new tax. An environmental utility is
simply a method of financing the administration, planning, implementatia
and maintenance of storm water best management practices (BMPs ).
This utility does not replace existing funding sources — it complements
therm.
The utility is northing more than a service charge or fee. The utility fee
is typica lly gainst all develcped parcels within a city based on
the premise of 'contributors Foy." Where and Is In a natural state, most
rain soaks into the ground or is retained in small depressicns. Nlhere
development has beea prevalent, rooftops, driveways, and parking lots
prevent rainfall from soaking into the around The rain tuns off into
streets, ditches, ponds and lakes, creating the need for drainage systems
and to protect the quality of our water resou rces. Therefore, the fee is
based on how much water runoff andor pollutant load is contributed
by a particular parcel
This consistent, dependable revenue source provides a dedicated fund
to manage the drainage system and water quality improvements without
increasing property taxes or using assessments. A utility also provides the
Bans to handle the increasing costs through small adjustments in the
utility +urges.
"The utility fee is typically
charged against all developed
parcels within a city based on the
premise of "contributors pay.°
Feasibility Study 112316
City of Lino Lakes, Minnesota D -1
HowWili the Utility
Benefit the Community?
The utility benefits the community by
providing a dedicated fund for storm
water management activities. Benefits
associated with storm water manage-
ment include:
• Manage water quality and flood issues
*Water quality improvements
• Drainage system construction
and maintenance
Erosion and sediment control
• Community education
• Wet land protection
• Improved fish, wildlife, and recreation
opportunities
#11,518,
Copyright 2003
'the uiIityapproth is based on the concept "contributors pay.' The rate
structure is based on land use type, density. parcel size, and the amount
of =off andfor pollution load contributed by a particular parcel.
Contributors Pay Concept
Storm Water Utility Advantages
Fair
• Charges are based on runoff rather than property value as is the case
with general taxes.
Dependable
• Self financing — does not compete widi other governmental agencies
for general revenues.
• Provides consistent funding and Is easily projected.
• Revenues are kept in separate, dedicated funds.
• Can be used for debt services on revenue bcnds,
Simple and Flexible
• Similar to water and sewer charges.
• Adaptable to existing bilhng systems.
• Credits, exemptions, and appeals are designed into the system.
Acceptable
• No increase in property uxes.
• Regular small service charge is more acceptable than a large one-time
assessment.
• Utilities are in use inund the ccuntry.
For more information please contact Bill Priefer with the Maplewood
Public Works Department at 651.249.2406.
Feasibility Study 112316
D-2
City of Lino Lakes, Minnesota
SEH
Multidisciplined. Single Source.
Trusted solutions for more than 75 years.
www.sehinc.com
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•
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•
WS — Item 4
WORK SESSION STAFF REPORT
Work Session Item 4
Date: Council Work Session, July 6, 2010
To: City Council
From: Michael Grochala
Re: 6931 Lake Drive — John Freimuth
Background
At the June 14, 2010 regular City Council meeting, Mr. John Freimuth, 7381 Jon
Avenue, spoke to the council regarding his interest in purchasing the property at 6931
Lake Drive to operate a recycling center. Mr. Freimuth explained that existing city
requirements made moving into the building cost prohibitive, specifically concerning
installation of a fire suppression system. Mr. Freimuth previously brought this issue to
the Planning & Zoning board. The board was supportive of his business moving to the
city, but not necessarily at this location.
Analysis
The building located at 6931 Lake Drive, former site of Bill's Rental, has been vacant
since April of 2006. The site is zoned LI, Light Industrial and is guided as Performance
Land Use within the 2002 Comprehensive Plan. The draft 2030 plan guides the property
as Commercial.
There are a number of issues with the existing structure, waste disposal and site
requirements that need to be resolved in accordance with current city code requirements
regardless of the proposed use. However, for the purpose of this report we will
concentrate on the three major issues regarding Mr. Freimuth's proposal:
1) The proposed use is not allowed within the LI, Light Industrial zoning district or
any other city zoning district.
2) The proposed use is not supported by the Comprehensive Plan (both the existing
2002 plan and the draft 2030 plan).
3) A fire suppression system must be installed in accordance with the Building
Code.
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Zoning
Mr. Freimuth is proposing to operate a recycling center. Under the City's zoning
ordinance the proposed use would be considered a "Junk Yard ". The zoning ordinance
defines "Junk Yard" as follows:
Junk Yard. Any area, lot, land, parcel, building or structure or part thereof used
for the storage, collection, processing, purchase, sale or abandonment of
wastepaper, rags, scrap metal or other scrap or discarded goods, materials,
machinery or two (2) or more unregistered, inoperable motor vehicles or other
type of junk.
Junk Yards are not permitted within any zoning district in the City.
Mr. Freimuth has provided correspondence that his proposed use would require between
1 to 10 roll off dumpsters for the collection of drop off recyclable materials. This would
be considered "Exterior Storage" under the zoning ordinance. Exterior storage is not
allowed in the LI, Light Industrial zoning district where properties abut property zoned
for residential, rural, or business use. "Abutting" includes property across a street.
Comprehensive Plan
The Performance Land Use designation was intended to allow a variety of land use types
provided it is able to demonstrate compliance with a number of performance standards
related to land use compatibility, site function, aesthetics, environmental protection and
site access. The 2002 Comprehensive Plan provisions for "Performance Land Use"
include specific performance criteria. The plan (pg. 96) specifically states that "Outdoor
sales and storage is prohibited."
The draft 2030 plan guides this area as commercial. A significant amount of discussion
was undertaken by the Comp Plan Advisory Panel regarding this site due to the existing
uses and its location as "Gate Way" into the city. The panel determined that the
commercial designation was the preferred land use to accomplish redevelopment of the
area.
A zoning change to accommodate the proposed use is not supported by either the 2002
plan or the draft 2030 plan.
Fire Suppression System
Mr. Freimuth raised concerns regarding the city's fire suppression requirements. The
building at 6931, based on the proposed occupancy, will need to be sprinkled. A system
was installed, with the Bill's Rental occupancy, however it was never energized. It is
unclear at this time whether that system is still in place. The city water system does not
currently service the site. A fire suppression system would require either the extension of
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public utilities or an on -site well and storage system. Mr. Freimuth noted that these
options did not make this site financially feasible for his purposes. He also stated that the
fire suppression requirements were local requirements - not state required.
The City has adopted Section 1306 of the State Building Code, which authorizes optional
provisions for the installation of fire suppression systems. Section 1306 is more
restrictive than the general sprinkler requirements under the State Building Code by
lowering the threshold for sprinkler protection in new buildings and additions to existing
buildings.
Adoption of 1306 is a requirement of the Centennial Fire District Joint Powers
Agreement (JPA). The JPA has been in effect since 1990 and the city has enforced the
1306, as amended, since that time. The purpose of 1306 was to control future fire loss.
This is accomplished, in part, by placing the burden for fire protection on the developing
property owners in the form of sprinkler systems as opposed to the taxpayer in the form
of more firefighters, stations and vehicles /equipment. More significantly, it is an
important life safety enhancement.
Repealing Chapter 1306 would require amending the Centennial Fire District JPA and
would effectively lower our development standards. Section 1306 does provide an
exemption if the building does not have an adequate water supply and the building is
surrounded by public ways or yards more than 60 feet wide on all sides. However, this
property does not meet the 60 foot requirement. Jerry Streich, Centennial Fire Chief will
be at the meeting to answer any question regarding Section 1306. Repeal or change in
this requirement could have the impact of increasing fire protection costs across the
community as well as a change in the city's fire insurance rating which may impact
premiums.
General Comments
While both staff and council would like to see the site actively used, we need to balance
that with the long -term goals of the city. For better or worse, the market is the main
driver in this transition. Staff continues to seek potential redevelopment opportunities
that will aid in the site redevelopment and ultimately result in a higher, more stable, long-
term tax base for the city.
Additionally, staff has identified other sites within the city's GI, General Industrial
district that while still requiring a zoning amendment, would be more appropriate for his
business. Unfortunately, those sites do not meet his current needs.
Council Direction
Council requires no action. The following questions should be considered if the council
wishes to pursue changes to accommodate Mr. Freimuth's proposal.
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1. Does the City want to change the draft 2030 plan to guide this area for industrial
use?
2. Does the City want to amend the zoning ordinance to allow Junk Yards as a
permitted use within a zoning district?
3. If yes to No. 2, does the City want to allow Junk Yards in the LI, Light Industrial
district?
4. Does the City want to amend the zoning ordinance to allow Exterior Storage on
properties abutting land zoned for residential, rural or business use?
5. Does the City want to amend the Centennial Fire District JPA to eliminate the
requirement to adopt Section 1306 of the State Building Code?
Attachments
1. Planning and Zoning Board minutes.
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CITY OF LINO LAKES
PLANNING & ZONING BOARD MINUTES
DATE
TIME STARTED
TIME ENDED
MEMBERS PRESENT
MEMBERS ABSENT
STAFF PRESENT
: November 18, 2009
. 6:37 P.M.
. 8:37 P.M.
: Elizabeth Brady, Michael Hyden, Perry Laden,
Robert Nelson, Brian Pogalz (Vice Chair), Michael
Root, Paul Tralle (Chair)
: None
: Paul Bengtson, Michael Grochala, Jeff Smyser,
Jim Studenski
I. CALL TO ORDER AND ROLL CALL:
Chair Tralle called the Lino Lakes Planning and Zoning Board meeting to order at 6:37
p.m. on November 18, 2009.
II. APROVAL OF AGENDA
The Agenda was approved as presented.
III. APPROVAL OF MINUTES:
October 14, 2009
Mr. Hyden made a MOTION to approve the October 14, 2009 Minutes. Motion was
supported by Mr. Nelson. Motion carried 6 - 0.
IV. OPEN MIKE
Chair Tralle declared Open Mike at 6:38 p.m.
Mr. John Freimuth, 7381 Jon Ave, stated that he is interested in moving three businesses
into the city. Through his discussions with city staff, he was informed that one business
does not fit into the existing zoning for the property. This business is an appliance and
recycling company, and city ordinance does not allow junk yards in the zone he is
interested in. The building he is looking at is located at 6931 Lake Drive, formerly Bill's
Rental Center. Mr. Freimuth explained that his business is specifically a recycling
collection center. He is licensed to collect appliances that involve hazardous waste, such
as refrigerators with freon, compressors with oil, and fluorescent bulbs with mercury. He
would store all items inside and follow proper disposal procedures for all items. He is
APPROVED MINUTES
Planning & Zoning Board
November 18, 2009
Page 2
also a licensed insurance agent, and the building has an 800 sq. foot office with a
basement. He would run a data storage company to store data for websites, but the city
did not have issues with the part of his business. He stated that the recycling business
would be open to the public, and he would be able to accept many items free of charge.
He has state, county and federal government permit approval for recycling as well as a
hazardous waste generator license and freon license. He accepts appliance deliveries
about two to three times per week from a 20 -yard roll -off. He currently runs his
recycling business in Columbus. He is aware that additional work would need to be done
to the existing building. He is interested in moving into the site as soon as possible. He
would like to get city approval and purchase the building before the draft Comp Plan is
adopted and goes into effect. He knows that the sprinkler system is insufficient, and he
would speak to the fire department about the possibility of converting to a dry pressure
system.
Paul Bengtson, Associate Planner, explained that the location of the building crosses the
property line of the adjoining lot. Mr. Freimuth would need to combine the lots, or
remove the back portion of the building that crosses the lot line. He stated the parking
area should also be combined.
Mr. Freimuth responded that he is interested in purchasing both lots.
The Board asked what would be necessary for a recycling company to be allowed.
Mr. Bengtson stated that the interpretation by staff of the zoning ordinance is that this use
qualifies as a junk yard. An applicant could request a change, and the city would then
have to consider all possible effects.
Mr. Freimuth would like to occupy and fix the existing building and make future
improvements if he is financially able. He is aware that the site would require
considerable screening.
Jeff Smyser, City Planner, reminded the board that the Comprehensive Plan Advisory
Panel considered this site a gateway area to the city. Therefore, they guided the site for
commercial use in order to facilitate higher value development there that could finance
extending city utilities to the site.
Chair Tralle commented that this piece of property has been vacant for some time, and
felt that Mr. Friemuth could work with the city to improve and use the site. Otherwise, it
may remain unused for a long time. He pointed out the importance of a positive business
owner interested in an unused site.
Staff explained that an application would have to be submitted to the city, along with
appropriate fees and an escrow deposit. Review could potentially take up to six months
before the site could be used.
Mr. Freimuth stated that he was looking for direction from the board before making a
financial investment.
APPROVED MINUTES
Planning & Zoning Board
November 18, 2009
Page 3
The majority of board members agreed that they were generally in favor of this type of
use in the city, but not necessarily at this particular location. Board members pointed out
that this is a "gateway" location to the city. The Board suggested that Mr. Freimuth
could consider a different property.
Jason Snyder, 7090 20`h Ave S., owner of Bobby & Steve's Auto World, is interested in a
bigger sign on the freeway. He has been speaking with city staff and is hoping that the
board is interested in helping an existing business succeed. He would like to be allowed
a 65 -foot high sign. He pointed out that the previous owner, Joan Tschida, put in a
request for a 65 foot sign and was denied, and she went out of business. He is looking to
be more visible from the freeway, and considers himself to be a freeway business.
Mr. Bengtson stated that the existing sign is the maximum size allowable by ordinance.
The motor fuel station site is separated from the freeway by a small parcel and road right -
of -way, therefore the site is not considered to be adjacent to the freeway. Mr. Bengtson
also pointed out that property owners are not allowed off - premise signs.
The majority of board members agreed that they would generally be in favor of allowing
increased sign height in relation to the freeway.
Mr. Bengtson stated that a variance to the sign ordinance would not be allowed, therefore
the existing ordinance would need to be amended. Mr. Snyder was directed to apply for
an amendment if he wished to proceed.
Mr. Pogalz made a MOTION to close Open Mike at 7:31 p.m. Motion was supported by
Mr. Laden. Motion carried 6 - 0.
V. ACTION ITEMS
A. None
VI. DISCUSSION ITEMS
A. CSAH 34 (Birch Street) Corridor Study — SRF Consulting Group and Anoka
County
Brian Shorten and John Hagen of SRF Consulting Group, and Jack Corkle of the Anoka
County Highway Department, were present to update the board on the progress of the
CSAH 34 Corridor Study.
Mr. Shorten made a presentation to explain the process and progress. They will return to
the city to make future presentations.
The goal of the study is to plan and develop CSAH 34 to function as a safe east -west
minor arterial. Objectives include improving safety, improving mobility, and
coordinating transportation improvements and land use plans. The study is
approximately 2/3 complete.
APPROVED MINUTES
WS -5
WORK SESSION MEMORANDUM
To: Mayor and Council Members
From: Al Rolek
Date: July 6, 2010
Re: Metro I -NET Joint Powers Agreement
cc:
As you know, the City currently has a Joint Powers Agreement (JPA) with the City of Roseville
for administration and maintenance of the City's computer network, exchange server and email
system and phone system. Roseville provides the same services for several other entities,
including Arden Hills, East Bethel, Falcon Heights, Forest Lake, Gem Lake, Lake Elmo,
Lauderdale, Little Canada, Mounds View, North Oaks, North St. Paul, Oakdale, Ramsey
Washington Watershed District, Saint Anthony, Vadnais Heights and White Bear Township. The
shared network provides services to over 1,000 city employees working at 95 facilities scattered
across a 4 county area.
To facilitate the operations of the growing network, an ad hoc users group was formed to discuss
operational policies, provide for an equitable cost recovery amongst participants, and to guide
deployment of new and emerging technologies. Metro -INET, as the network is called, is one of
the largest municipal networks in the State. Since the network provides numerous shared services
it has become necessary to develop a governance structure to insure the continued operations of
the network in the absence of one or more members. This is the basis for the development of the
joint powers board.
The purpose of the board is detailed in the agreement. The structure of the board is similar to
other local and regional boards including LOGIS, another metro area information technology
consortium however a few important differences exist.
1) The members of the board include only appointed city staff. As the purpose of the board is to
guide municipal operations and deals mainly with providing IT services to city employees, the
board must be comprised of those city employees responsible for these services within their own
individual organization. This requires the city manager /administrator /clerk represent their
organization on the board.
2) Establishing the fiscal and operating agent. This requirement designates a member agency to
oversee the operations of the network and manage its resources including finances, acquisition of
property and equipment, human resources, and supervision of shared technical staff. This
eliminates the costs associated with establishing a separate entity charged with these
responsibilities.
The primary purpose of the board is unchanged from that of the current ad hoc Metro -INET
Users Group. By establishing the joint powers board the multiple agreements between Roseville
and each participating agency (17 in all) would effectively be replaced by this agreement,
insuring the continued operations of Metro -INET in the absence of Roseville or any other
agency.
The acquisition of these services via these means has been advantageous to the City in terms of
cost and efficiency, has kept necessary staff to a minimum and has provided excellent response
to our needs on a 24/7 basis. To continue to facilitate the operation of the City's computer and
phone systems through this cooperative venture, staff is recommending the the City Council
approve this agreement by August 1. Staff will be available to discuss the agreement at the work
session and, if necessary, bring in a representative from Roseville at the July 26 work session to
answer any remaining questions.
JOINT POWERS AGREEMENT FOR DEVELOPMENT OF
THE NORTH EAST METROPOLITAN AREA MUNICIPAL NETWORK,
A REGIONAL BROADBAND NETWORK COLLABORATIVE
The parties to this agreement are governmental units of the State of Minnesota. This agreement is made
and entered into pursuant to Minnesota Statutes, Section. 471.59.
I. GENERAL PURPOSE
The general purpose of this agreement is to provide for an organization through which the parties may
jointly and cooperatively provide for the development and operations of advanced networking and data
services for the use and benefit of the parties and others. To the extent permitted by law, the Members
will support the establishment of the network and seek to expand the number of participating agencies.
II. DEFINITION OF TERMS
Section 1. For the purposes of this agreement, the terms defined in this article shall have the meanings
given them.
Section 2. "North East Metropolitan Area Municipal Internetworking Collaborative" means the organi-
zation created pursuant to this agreement, which organization is hereafter referred to as "METRO -INET"
Section 3. "Board" means the Board of Directors of METRO -INET, consisting of one director from each
governmental unit which is a member of METRO -INET.
Section 4. "Council" means the governing body of the member governmental unit.
Section 5. "Member" means a governmental unit which enters into this agreement and is at the time
involved, a party in good standing.
Section 6. "Governmental unit" means any city, township, independent public safety organization,
watershed district, or other political subdivision of the State of Minnesota.
III. MEMBERSHIP
Section 1. Any governmental unit is eligible to be a member of METRO -INET.
Section 2. A governmental unit desiring to be a member shall execute a copy of this agreement and shall
pay the established charges.
Section 3. The initial members shall be those members who have an established joint powers agreement
with the City of Roseville - Minnesota on or prior to December 31, 2009.
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Section 4. Governmental units joining METRO -INET after January 1, 2010, shall be admitted only upon
the favorable vote of two- thirds of the members of the board. The board may impose conditions upon the
admission of members other than the initial members.
IV. GOVERNANCE
Section 1. METRO -INET shall be governed by a Board consisting of the manager /administrator of the
Member, as defined. Each member shall be entitled to one director, who shall have one vote.
Section 2. Each member shall also be entitled to one alternate director consisting of an appointed official,
who shall be entitled to attend meetings of the board and who may vote in the absence of the member's
director.
Section 3. There shall be no voting by proxy; all votes must be cast in person at board meetings by the
director or his alternate.
Section 4. Change of the director or alternate director requires notice of such appointment to METRO -
INET in writing. Such notice shall include the mailing address of the persons so appointed. The names
and addresses shown on such notices will be used as the official names and addresses for the purposes of
giving any notices required by this agreement or by the bylaws of METRO -INET.
Section 5. A majority of the appointed directors shall constitute a quorum of the board.
Section 6. At the first meeting of the board and in April of each even numbered year after 2010, the board
shall elect from its directors a Chair, a Vice -Chair and a Secretary.
Section 7. At the organizational meeting or as soon thereafter as it may reasonably be done, the board
shall adopt bylaws governing its procedures including the time, place and frequency of its regular
meetings. Such bylaws may be amended from time to time.
V. MEETINGS AND ELECTION OF OFFICERS
Section 1. Any governmental unit desiring to enter into this agreement may do so by the duly authorized
execution of a copy of this agreement by its proper officers. Thereupon, the clerk or other corresponding
officer of the governmental unit shall file a duly executed copy of the agreement, together with a certified
copy of the authorizing resolution or other action, with the city manager of the City of Roseville. The
resolution authorizing the execution of the agreement shall also designate the first director and alternate
for the member. The agreement shall become effective when it has been authorized by five (5)
governmental units and when executed copies from such governmental units, together with certified
copies of the authorizing resolutions, have been duly filed as set out herein. Within thirty (30) days after
the effective date of this agreement, the manager of the City of Roseville shall call the first meeting of the
board, which shall be held not later than fifteen days after the notice has been delivered.
Section 2. A director (or their alternate) shall not be eligible to vote on behalf of his governmental unit
during the time that such governmental unit is in default on any contribution to METRO -INET or on any
contract with it. During the existence of such default, the vote or votes of such governmental unit shall
not be counted as eligible votes for the purposes of this agreement; If a governmental unit remains in
default for a period of more than 45 days on any billing from METRO -INET, the membership of such
governmental unit may be terminated by a majority vote of the Board.
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Section 3. Special meetings of the board may be called (a) by the chair, (b) by the executive committee or
(c) by the executive committee upon the written request of a majority of the directors. Five days' written
notice of special meetings shall be given to the directors and alternates. Such notice shall include the
agenda for the special meeting.
Section 4. The specific date, time and location of regular and special meetings of the board shall be
determined by the executive committee.
Section 5. Notice of regular meetings of the board shall be given to the directors and alternates by the
secretary- treasurer of the board at least fifteen (15) days in advance and the agenda for such meetings
shall accompany the notice. However, business at regular meetings of the board need not be limited to
matters set forth in the agenda.
VI. POWERS AND DUTIES OF THE BOARD
Section 1. The powers and duties of the board shall include the powers set forth in this article.
Section 2. The board shall take such action as it deems necessary and appropriate to accomplish the
general purposes of the organization including the establishment of data processing and information
systems, engaging in the development and implementation of the necessary programs therefore, acquiring
any necessary site, purchasing any necessary supplies, equipment and machinery, employing any
necessary personnel and operating and maintaining any systems for the handling of data processing and
management information for the members and for others. Any of the foregoing activities, or any other
activities authorized by this agreement, may be accomplished by entering into contracts, leases or other
agreements with others, whenever the board shall deem this to be advisable.
Section 3. The board shall designate a member to serve as fiscal and operations agent ( "Agent ") of
METRO -1NET. The Agent shall be responsible for the management of the affairs of METRO -INET as
outlined in Article VIII.
Section 4. The board may establish and collect charges for its services to members and to others.
Section 5. The board may accept gifts, apply for and use grants, or use property from the state, or any
other governmental units or organizations and may enter into agreements required in connection therewith
and may hold, use and dispose of such moneys or property in accordance with the terms of the gift, grant,
loan or agreement relating thereto.
Section 6. The board shall establish the annual budget for the organization as provided in this agreement.
Section 7. The board shall make its data processing and management information systems available to its
members, subject to reasonable charges for the development and processing thereof.
Section 8. The board may exercise any other power necessary and incidental to the implementation of its
powers and duties.
VII. OFFICERS
Section 1. The officers of the board shall consist of a chair, a vice -chair and a secretary who shall be
elected at the regular annual meeting of the board held in even numbered years after 2010. New officers
shall take office at the adjournment of the annual meeting of the board at which they are elected.
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Section 2. A vacancy shall immediately occur in the office of any officer upon his resignation, death or
upon his ceasing to be an employee of his member governmental unit. Upon vacancy occurring in any
office, the executive committee shall fill such position until the next meeting of the board.
Section 3. The three officers shall all be members of the executive committee.
Section 4. The chair shall preside at all meetings of the board and the executive committee. The vice -
chair shall act as chair in the absence of the chair.
Section 5. The secretary shall be responsible for keeping a record of all of the proceedings of the board
and executive committee.
VIII. FISCAL AND OPERATING AGENT
Section 1. The Agent shall be responsible for custody of all funds, for the keeping of all financial records
of the organization and for such other matters as shall be delegated to the fiscal agent by the board. The
fiscal agent shall post a fidelity bond or other insurance against loss of organization funds in an amount
approved by the board, at the expense of the organization.
Section 2. The Agent shall be granted the power to make contracts as it deems necessary to make
effective any power to be exercised by METRO -INET pursuant to this agreement; to provide for the
prosecution and defense or other participation in actions or proceedings at law in which it may have an
interest; to employ such persons as it deems necessary to accomplish its duties and powers on a full -time,
part-time or consulting basis; to conduct such research and investigation as it deems necessary on any
matter related to or affecting the general purposes of the organization; to acquire, hold and dispose of
property both real and personal as the board deems necessary; and to contract for space, materials,
supplies and personnel either with a member or with a number of members or elsewhere.
IX. ADMINISTRATOR
Section 1. The fiscal and operating agent of the board shall be designated as the administrator of the
board who shall designate an employee of their agency to serve as the Administrator.
X. EXECUTIVE COMMITTEE
Section 1. The board shall have an executive committee consisting of the three officers as defined in
Article VII, and the Administrator as defined in Article IX. Vacancies of members on the executive
committee may be filled by the board of directors at any regular or special meeting.
Section 2. The executive committee may adopt bylaws governing its own procedures, which shall be
subject to this agreement, the bylaws of the board, and any resolutions or other directives of the board.
Section 3. Three members of the executive committee shall constitute a quorum.
Section 4. The executive committee shall meet at the call of the chair or upon the call of any two other
members of the executive committee. The date and place of the meeting shall be fixed by the person or
persons calling it. At least forty -eight (48) hours advance written notice of such meeting shall be given to
all members of the executive committee by the person or persons calling the meeting. Such notice,
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however, may be waived by any or all members who actually attend the meeting or who give written
waiver of such notice for a specified meeting.
Section 5. The executive committee shall have the following duties;
(a) It shall exercise the powers and perform the duties delegated to it by the board of directors
subject to such conditions and limitations as may be imposed by the board.
(b) It shall cause to be prepared a proposed annual budget each year which shall be submitted to
the board of directors at least thirty days before the annual meeting.
(c) It shall present a full report of its activities at each regular meeting of the board.
Section 6. It shall have authority to fix charges for the use of the programs and facilities of METRO -
INET, both as to members and nonmembers consistent with policies and guidelines established by the
board.
XI. FINANCIAL MATTERS
Section 1. The fiscal year of METRO -INET shall be the calendar year.
Section 2. An annual budget shall be adopted by the board at the annual meeting in April of each year.
Copies shall be mailed, promptly thereafter, to the chief administrative officer of each member. Such
budget shall be deemed approved by the member unless, prior to October 1st of the year involved, the
member gives notice in writing to the METRO -INET secretary- treasurer that it is withdrawing from the
organization.
Section 3. The board shall have authority to fix cost sharing charges for all members in an amount
sufficient to provide the funds required by the budgets of the organization. It shall advise the chief
administrative officer of each member, on or before April 1 of each year, of the amounts of such charges.
Section 4. Billings for all charges shall be made by the fiscal agent and shall be due when rendered. Any
member whose charges have not been paid within 45 days after billing shall be in default and shall not be
entitled to further voting privileges nor to have its director hold any office nor to use any METRO -INET
facilities or programs until such time as no longer in default. In the event that such charges have not been
paid within 45 days after such billing, the membership of such governmental unit may be terminated by a
majority vote of the Board. In the event of a bona fide dispute between the member and the board as to
the amount which is due and payable, the member shall nevertheless make such payment in order to
preserve its status as a member, but such payment may be made under protest and without prejudice to its
right to dispute the amount of the charge and to pursue any legal remedies available to it.
Section 5. The charges of METRO -INET shall be divided, for cost sharing purposes, into three classes;
(a) Class 1 Charges. These charges shall be made to cover the organization's general,
administrative and operational expenses not falling within Classes 2 and 3. Class I charges
shall be made as fixed monthly, quarterly or annual membership dues. They shall be
determined annually by the board of directors. They shall not be retroactively applied to new
members.
(b) Class 2 Charges. These charges shall be made to cover the costs of design and development
of computer programs and systems and other capital costs. The initial members of METRO -
INET shall pay such portion of the Class 2 charges as shall be established by the board,
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provided that the board shall attempt in good faith to pro rate such Class 2 charges among the
members in as equitable a manner as possible, giving consideration among other things, to
anticipated use of the programs, systems and facilities of the organization. Any new
members joining METRO -INET after January 1, 2010, shall pay a prorated share of the
accumulated Class 2 charges which have been charged to or incurred by all members, as
computed by the board on the same formula as for initial members as the price of
membership; and such charges, when paid by such new members, shall be apportioned
among the then existing members in cash or credit on unpaid or future billings in proportion
to the Class 2 charges which such existing members have thus far paid or incurred.
(c) Class 3 Charges. These charges shall be to cover the costs of system operation and
maintenance in serving members (and others) on a "as requested" basis. The amount of such
charges shall be determined by the board and such amounts shall be computed on the basis of
the actual workload utilized by each member. Class 3 charges shall not be retroactively
applied to new members.
Section 6. It is anticipated that certain members may be in a position to extend special financial assistance
to METRO -INET in the form of grants, or other in -kind payments including use of facilities or other
infrastructure deemed beneficial to METRO -1NET. The board may credit any such in -kind payment
against any charges which the granting member would otherwise have to pay. The board may also enter
into an agreement, as a condition to any such grant, that it will credit all or a portion of such grant towards
charges which have been made or in the future may be made against one or more specified members.
XII. WITHDRAWAL
Section 1. Any member may at any time give written notice of withdrawal from METRO -INET. The
nonpayment of charges as set forth herein, and the refusal, or declination of any member to be bound by
any obligation to the organization shall also constitute notice of withdrawal.
(a) Actual withdrawal shall not take effect for a period of forty-five (45) days from the date of
such notification.
(b) Upon effective withdrawal the member shall continue to be responsible for its entire prorated
share of any unpaid Class 2 obligations and for its share of Class 1 charges in accordance
with Chapter XI.
Section 2. A member withdrawing from membership at a time when such withdrawal does not result in
dissolution of the organization shall forfeit its claim to any assets of the organization except that it shall
have access to any software developed for its use while it was a member in accordance with and subject
to the provisions of Article XI, Section 5, Paragraph (b).
XIII. DISSOLUTION
Section 1. The organization shall be dissolved whenever (a) a sufficient number of members withdraws
from the organization to reduce the total number of members to less than five (5), or (b) by two - thirds
vote of all members of the board.
Section 2. In the event of dissolution the board shall determine the measures necessary to affect the
dissolution and shall provide for the taking of such measures as promptly as circumstances permit and
subject to the provisions of this agreement.
6
Section 3. Upon dissolution the remaining assets of METRO -INET, after payment of all obligations, shall
be distributed among the then existing members in proportion to their contributions, as determined by the
board,\provided that computer software prepared for such members shall be available to them, subject to
such reasonable rules and regulations as the board shall determine.
Section 4. If, upon dissolution, there is an organizational deficit such deficit shall be charged to and paid
by the members on a pro rata basis, based upon the Class 1, 2 and 3 charges incurred by such members
during the two years preceding the event which gave rise to the dissolution.
XIV. DURATION
This agreement shall continue in effect indefinitely until terminated in accordance with its terms.
7
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WS -6
WORK SESSION MEMORANDUM
To: Mayor and Council Members
From: Al Rolek
Date: July 6, 2010
Re: 2011 Budget Parameters and Preparation Calendar
cc:
Staff would like to have a general discussion with the City Council regarding parameters
and initiatives for the 2011 budget. Budget preparation at the staff level is underway, and
the Council's perspective on spending for the coming year will be helpful in presenting a
draft that will meet with Council budget goals. Items to discuss would include any
initiatives, goals, service level adjustments, property tax levies and other topics pertinent
to the budget process.
In addition, I have attached a tentative budget calendar for your consideration. I will
outline our process and timeline for the Council and ask for some work session dates that
will work in August and thereafter. We should also consider when to hold our budget
hearing in December, bearing in mind that we must adopt a budget at least 5 business
days prior to the certification deadline of December 28.
We look forward to our discussion with you.
Page 1
City of Lino Lakes
2011 Budget Preparation Calendar
• Jan -May — City Council provides direction on budget parameters.
• June 1 — Budget worksheets and calendars distributed to Directors.
• July 6 - City Council provides further direction on budget parameters.
• July 10 — Departmental budget requests are prepared and submitted.
• July 10 -July 31 — Interim Administrator and Finance Director review requests
with Directors and develop proposed 2011 Budget. Proposed budget
distributed to City Council.
• August 1 - 31 — Budget work sessions - City Council reviews proposed 2011
Budget.
• September 1— Dept. of Revenue certifies 2011 levy limit
• September 7 — Follow -up City Council budget work session.
• September 13 — City Council approves proposed 2011 Budget and Tax Levy
and sets Truth in Taxation hearing dates.
• By September 15 - Proposed Budget, Tax Levy and Truth in Taxation
hearing dates are certified to Anoka County Auditor.
• Mid- November— County mails Truth in Taxation notices to taxpayers.
• December 6 — City Council holds Truth in Taxation Hearing.
• December 13 — City Council holds Continuation Hearing, if necessary. City
Council adopts final 2011 Budget and Tax Levy at Subsequent Hearing.
• By December 28 — City certifies final 2011 Budget and Tax Levy to
Anoka County Auditor.
B -11
WS— Item!'
WORK SESSION STAFF REPORT
Work Session Item`s
Date: Council Work Session, July 6, 2010
To: City Council
From: Michael Grochala
Re: Comprehensive Plan Review
Background
The City Council met on June 14, 2010 to review the draft 2030 Comprehensive Plan and
discuss concerns and possible modifications. Based on the discussion and in accordance with
council direction staff has developed text changes for consideration. These changes are
summarized as follows:
• Chapter 3, Land Use Plan (pages 26 -27). Addition of statement within the Growth
Management Policy establishing an annual average of 230 new residential dwelling units
per year.
• Chapter 4, Housing Plan (pages 10 -11). Addition of statement that, in acknowledging
Metropolitan Council's affordability goals, the City is not committing to provide funding
for housing. Also included are limited text changes within the affordable housing
section.
The council also requested staff to identify what tools are included in the plan that allow the city
to deny approval for new development. While each development project is different there are
generally several criteria that must be satisfied before a project can be approved. These criteria
include, but are not limited to the following:
1. Land Use Plan. The proposed use of land must be consistent with the plan i.e., a
commercial use on land guided commercial.
2. Land Use Plan. The proposed density of the project must be consistent with the land use
plan, i.e., in a low density district the project density is between 1.5 and 3.5 units per
acre.
3. Staging Plan. The proposed use must be located within Phase 1A of Stage 1.
4. Sanitary Sewer infrastructure must be available to service the development.
5. Sanitary Sewer infrastructure must have the capacity to service the property.
6. Water infrastructure must be available to service the property.
7. Water infrastructure must have the capacity to service the property.
1
8. The proposed development must be consistent with the Resource Management Plan
including the surface water management and parks plan.
9. The proposed development must be consistent with the Growth Management Policy.
10. Roads adjacent to the development must have the capacity to service the property.
11. The proposed development must meet the performance standards established in the City's
Official Controls including:
a. Zoning Ordinance
b. Subdivision Ordinance
c. Shoreland Ordinance
d. Floodplain Ordinance
If a proposed development does not meet any of the above referenced criteria the City has the
discretion to deny approval.
Council Direction
1. Staff is requesting council direction regarding the proposed text amendments.
2. Staff is requesting council direction regarding next steps.
Attachments
1. Chapter 3, Land Use, proposed amendment
2. Chapter 4, Housing, proposed amendment
•
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Growth Management Policy
In addition to the tools described above, the Comprehensive Plan Advisory Committee discussed
the development of a revised Growth Management Policy for the city. The Growth Management
Policy should provide a clear basis for efficient development staging as well as flexibility to
respond to market conditions. The new policy must work in conjunction with the staging plan to
establish the criteria for moving from one staging area to another.
The 2099 Growth Management Policy will include the following elements:
1. The City will create a fully integrated Comprehensive Plan and keep it up to date with
biannual reviews. The City will perform an intensive review at least once every five years to
ensure the plan addresses changing needs and conditions.
2. The Comprehensive Plan will include a staging plan defining development staging areas sized
to accommodate forecasted growth.
3. The City will monitor the ten -year staging areas and annually determine if adequate land
remains available.
4. All development must be located within the current ten -year staging area unless a
Comprehensive Plan amendment is approved that redefines the current ten -year staging
area.
5. All development must be phased within each ten -year staging area in accordance with the
staging plan unless the City Council determines, by resolution, to redefine the location of the
current five -year phase.
6. Prior to reaching the time threshold for the next ten -year staging area, or five -year phase
within a ten -year staging area, depicted on the staging plan, the City Council will determine
by resolution if the next area is to be opened to development. The following criteria will be
used to determine where and when to open up the next ten -year staging area, or five -year
phase within a staging area, in accordance with the timing indicated on the staging plan:
a. Adequate infrastructure must be available to support development. Appropriate analysis
will determine if adequate infrastructure is available and what utility extensions and
transportation improvements are required to support new development. If infrastructure
is not available and cannot be made available in a timely manner to support expanding
into the next ten -year staging area or five year phase within a staging area, the city may
refrain from opening up the next staging area, or portions thereof.
b. Different areas of the city can be considered independently. A decision to open one area
of the city to development does not automatically open a different area of the city.
Decisions to open new areas to development should clearly define and map the area
being opened.
c. This process does not require a comprehensive plan amendment because it is in
accordance with the timing indicated on staging plan.
7. The following criteria will be used to determine if the city should allow a specific development
project to occur early in a ten -year staging area, or five -year phase within a staging area,
prior to the timing indicated on the staging plan.
3 -26
•
•
a. The proposed development must be located within both the current and the next ten -
year staging area, or five -year phase, or located adjacent to the current staging area.
b. The proposed development must be master planned. Small, piecemeal developments do
not justify redefining the ten -year staging area, or five -year phase.
c. The proposed, master planned project must provide discernable public values.
d. Adequate infrastructure must be available to support development. Appropriate analysis
will determine if adequate infrastructure is available and what utility extensions and
transportation improvements are required to support new development.
e. There must be a commitment that the development will pay its proportionate share of
infrastructure improvement costs associated with development.
8. All development must adhere to the Resource Management System Plan, including all its
components, as this plan provides a conservation design framework for growth within the
city.
9. Include standards in subsequent ordinance updates to ensure quality development that
minimizes negative impacts on natural and cultural features of the community.
10. The City will plan to accommodate an average of 230 residential dwelling units per year.
Unallocated units in a given year will be added to subsequent years.
Relationship to Met Council Development Framework
In addition to guiding Lino Lakes' future growth, the land use plan also relates to growth and
development in the region as a whole. As part of the seven -county metropolitan area, Lino Lakes
must accommodate its share of the region's growth. The Comprehensive Plan must demonstrate
the City's capacity to absorb this growth and that the regional infrastructure, including the
transportation and sewer systems, will be used efficiently. The Metropolitan Council has
developed objectives and policies for cities in the metropolitan area to ensure efficient use of the
region's infrastructure, including the following policies:
1) Policy 1: Work with local communities to accommodate growth in a flexible, connected
and efficient manner.
2) Policy 2: Plan and invest in multi -modal transportation choices, based on the full range of
costs and benefits, to slow the growth of congestion and serve the region's economic
needs.
3) Policy 3: Encourage expanded choices in housing location and types, and improved
access to jobs and opportunities.
4) Policy 4: Work with local and regional partners to reclaim, conserve, protect and enhance
the region's vital natural resources.
The City has prepared a plan that responds to community goals and to the Met Council's
strategies for developing communities, as outlined in the Regional Development Framework. Lino
Lakes' Comprehensive Plan adequately addresses future needs of the community and the region
through the following strategies:
•
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•
Based on its analysis, the Metropolitan Council's new affordable housing goal for Lino Lakes is to
create 560 new affordable housing units between 2011 and 2020, which represents 35 percent of
forecasted household growth. Based on the 2030 future land use map and the minimum
proposed residential densities (i.e., 7 units per acre for high density and 8 units per acre for
selected mixed use areas), the City has the capacity to accommodate the affordable housing
goal.
The level of affordability is important to understand when assessing the amount of current
affordable housing and the price point for new units to meet this goal. According to Metropolitan
Council 2OO7 Affordability Limits, the area median income for the seven -county Minneapolis -St.
Paul (MSP) area adjusted by HUD to be applicable to a family of four is $78,500 in 2007. Eighty
percent of the median household income is $62,800; 60 percent is $47,100 and 50 percent is
$39,250. Applying an interest rate on a 30 -year fixed -rate home loan of 6.2 percent for 2007 and
other payment factors to the 80 percent area median income, yields an affordable purchase price
of $206,800 in 2007. According to Anoka County Assessor's data there are 779 homesteads, or
13 percent of total 2007 households, that fall under this 80 percent purchase price limit in Lino
Lakes. The price point for an affordable home at 60 percent of area median income drops to
$152,000. There are currently only 82 existing homesteads, or 1 percent of total 2007
households, in Lino Lakes at or below $152,000 (Anoka County assessor's data /GIS).
It is the new 60 percent measurement that will be required for the potential affordable housing
units anticipated between 2011 -2020 in Lino Lakes. Achieving this new affordability goal will be
very difficult without the funding tools that have in the past been offered by the Metropolitan
Council and other agencies.
Future Affordable Housing
To provide eppertuffities for affordable housing in the community, the City is taking the
appropriate regulatory measures within the Comprehensive Plan by guiding areas for higher
density housing and including policies to promote integrate affordable housing in all residential
land use districts. These regulatory measures represent one of the City's most effective tools to
eneearage -for the development of affordable housing. To meet affordable housing goals, the City
has planned for potential new growth with a variety of residential land use types and densities for
teremote the development of life -cycle and affordable housing across the city.
The city's future land use plan provides11=te-erveFt-tnity-te can accommodate the goal of 560
High Density and Mixed Use units at a minimum density of 7 units per net acre by 2020, which
will - greatly • - ... - - - • . While
the City is doing its part in creating a regulatory land use plan to guide areas for higher density
housing, which is where most affordable housing will likely occur, barriers to development of
affordable housing still exist in Lino Lakes and the region. Some of these barriers are beyond the
City's control, including the following:
• Steady increases in land prices and construction costs.
• Physical limitations of land due to wetlands, poor access, poor soils that would increase
the cost of land development or construction.
• State, county and local tax structures.
There are some significant barriers to construction of new affordable housing, and the above list
includes just a few of these barriers. Despite these difficulties, the provision of affordable housing
is an important effort that cities undertake. The most effective role Lino Lakes will have in the
provision of affordable housing is its regulatory tools, including land use and zoning regulations
that do not impede the construction of affordable housing. Many of these tools can be used to
encourage developers. Flexibility, through the use of the Planned Unit Development (PUD)
4 -10
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process, may be provided to encourage the construction of affordable housing suc#es- relaxing
std- green arcs fedeirernentsi iffereasieg density, er rcduc g fees:
Acknowledging the regional housing goals established by the Metropolitan Council does not
commit the City of Lino Lakes to provide funding for housing. The City will continue to
investigate means to pursue the goals in its comprehensive plan. However, this should not be
interpreted as a commitment to use City funds to overcome the financial obstacles to life cycle
and affordable housing
Housing Implementation Strategies and
Recommendations
The following Housing Action Plan identifies efforts Lino Lakes will pursue to create opportunities
to maintain the existing housing stock, and to provide increased housing options for future
residents. These strategies are based on goals and strategies for Community, Neighborhood and
Residential development developed by the Citizen Vision Committee. The strategies are designed
as a resource tool for specific measures the City can effectively undertake and enforce while
others are designed as tools to encourage developers to incorporate affordable housing into
future development. As future subdivisions are proposed, the City will use these resources and
implement the strategies in working with developers to create new affordable housing
opportunities. Many of these items are things the City itself can do, while others will occur
through partnerships the City will seek to provide for and maintain housing quality and increase
affordable housing opportunities.
To ensure housing development is compatible with existing and adjacent land uses
and provides accessibility to key community features and natural amenities (Goal 3),
the City will:
• Offer incentives to developers who provide for affordable housing units while conserving
environmentally sensitive sites, such as density bonuses, expedited permitting processes,
or reduced fees.
• Pursue funding opportunities to increase the affordability of housing units within
conservation subdivisions.
• Pursue funding opportunities to incorporate green building techniques within affordable
housing developments.
• Encourage innovative low impact development to preserve open space or natural
features.
• Ensure that all new housing, including high density, adheres to the highest possible
standards of planning, design and construction feasible.
• Promote development of neighborhoods that incorporate housing in a range of densities
and affordability limits in close proximity to shopping, services, daycare, and medical
services. Safe access to parks and schools, and the ability to walk, bike or have access to
transit should be part of the design.
To improve the availability of affordable housing and enhance opportunities for
senior housing (Goals 5 and 6), the City will:
• Seek housing developers to work cooperatively with the City to construct affordable
units.
• Create an incentive based program or Residential Planned Unit Development Ordinance
that includes density bonuses for construction of affordable housing. This allows an
increase in density, beyond the underlying zoning, if the development includes affordable
housing.
4-11
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Date:
To:
From:
Re:
WORK SESSION STAFF REPORT
Work Session Item #,S.
July 6, 2010
City Council
Julie Bartell
Liquor License Background Investigation Fees
WS — Item 2
Background
The council has requested a review of the city's charges for background investigations related to
the issuance of liquor licenses.
Historically, the council has considered the question of liquor license investigation fees twice in
the recent past. In April of 2009 the council considered the amount the city charges for the
service including a review of what some other cities are charging and of what the Police
Department estimates as their cost for the work. The council concurred at that time that the
charges were appropriate and no change in the fee was determined. In August of 2009 the
council reviewed how the city's practice of requiring a background investigation on renewal
liquor licenses fits into the city's code of ordinances and state statute for enforcement purposes.
At that time the council concurred that they wished to continue the city's practice of requiring a
background investigation on all renewals and, upon the advice of the city attorney, adopted a
resolution that ratifies the practice. I am attaching the background information from these
previous discussions.
Currently I understand the council would like to a) review the investigation fees for all types of
liquor licenses; b) to understand if there is a difference in the type of investigation (and work
involved) for different licenses; and c) to consider if the charges are equitable.
The following is an excerpt from the city's adopted fee schedule that indicates the city's charges
for licenses and investigations. Please note that there is an investigation done for the renewal of
all licenses but there is a fee for the investigation only for liquor, beer and wine licenses. In the
case of temporary licenses we do not charge a fee for the investigation possibly because
temporary licenses are allowed (under state law) only for non - profits for special events of 1 -4
days so a $250/$450 fee could be more of a burden.
ALCOHOLIC BEVERAGES
3.2 Beer Investigation
3.2 Beer Off -Sale
3.2 Beer On -Sale
3.2 Beer On -Sale Temporary
2010 FEE SCHEDULE
$250.00 (1 or 2); $450.00 (3 +)
$200.00 /Year
$300.00 /Year
$50.00 + $5.00 /Day
1
Club Liquor License
Liquor License Investigation Fee
Liquor On -Sale License
Liquor Off -Sale
Liquor Temporary Permit
Temporary Set -Up License
Wine License Investiation Fee
Wine
Sunday Liquor
$300.00
$250.00 (1 or 2); $450.00 (3 +)
$4,500.00 /Year
$200.00
$50.00
$25.00
$250.00 (1 or 2); $450.00 (3 +)
$500.00 /Year
$200.00 /Year
Captain Kent Strege of the Police Department will be present at the work session to discuss the
investigative work and costs.
Requested Council Direction
1) Does the council wish to continue the city's practice of requiring a background
investigation for all regular liquor license renewals?
2) Should there be a change in the amount that is charged for annual renewal background
checks?
3) Does the council wish to call for an update of liquor licensing fees with consideration
of including the investigation costs into the annual license fee?
Please note that any change in the amount of liquor licensing fees would require due process in
the form of notification to license holders and a hearing.
Attachments
Background from previous council discussions
•
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•
WS — Item 5
WORK SESSION STAFF REPORT
Work Session Item #5
Date: April 6, 2009
To: City Council
From: Julie Bartell
Re: Liquor License Investigation Fees
Background
As allowed under state statute, the city has established fees for licensing and regulation of liquor
(including 3.2 malt beverages) and tobacco. Staff is in the process of reviewing those fees to
ensure that they comply with current state law and to compare our fees with those of other
municipalities. Fee changes may be recommended in the future based on that research and on
the outcome of strategic financial planning.
The council requested, as part of reviewing updated liquor licensing code language, that staff
specifically review the city's current fee structure for background investigations.
State law requires a background check on initial applications and allows jurisdictions to charge
up to $500 (up to $10,000 for out of state) for these investigations. An investigation prior to
license renewal is allowed if the city's governing body deems it in the public interest. The city's
current investigation fee for all liquor license applicants (including renewals) is $450 for
corporations or partnerships and $250 for individual applicants.
The city's background investigations are conducted by the Lino Lakes Police Department. A
memorandum from the Police Department explaining their costs in conducting these
investigations is attached. There is also some cost to the city in administrative handling of the
information. It should be noted that the Lino Lakes Police Department does the same check for
renewals as for new applications and therefore the cost is the same.
Staff has prepared the attached spreadsheet with data on how other cities are charging for this
type of investigation fee and whether or not they charge differently for renewals.
Requested Council Direction
Liquor license renewal forms will be sent to the city's license holders in April. Staff requests
direction on any change to investigation fees in order to provide accurate information to
licensees.
Attachments
Police Department memorandum
Comparison of investigation fees charged by other cities /counties
1
Lino Lakes PD
Memo
To Chief Pecchia
From Sgt. Kelly McCarthy
Date: March 31, 2009
Re: Liquor and Tobacco Fees
Chief,
At your request, I reviewed the current fee structure for background investigations. The background
checks of initial applications for liquor and tobacco licenses consists of a criminal history check and
address verification. In most instances, this can all be accomplished by investigators in about three
working hours. We usually bill supplemental police services at $87.00 per hour for a total of $261. If
we billed the service at straight time ($31.14) it brings the total to $93.42. As the money collected does
not go to the police department, either billing scenario would not affect our budget.
Please let me know if you have any questions.
Sgt. Kelly McCarthy
1
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compiled March 2009
City
Pop.
Initial In -state Investigation Fee
Renewal
Lino Lakes
19,736
$450 (250 individual)
same
Blaine
54,927
$500 (on sale)
no investigation
Minnetonka
Crow Wing Co.
Isanti
51,519
$500
$150
n/c
$25
5,206
$300/$100
n/c
Bloomington
Osseo
85,852
$500 ($150 in state)
$100
2,459
$200
n/c
Circle Pines
5,153
$500 (unused portion
t/b rec'd)
n/c
Northfield
19,413
$200
$200
Belle Plaine
6,595
$100
n/c
Golden Valley
New Ulm
20,355
$3,000 Dep/ $500 non refundable
$100
13,610
$200
n/c
Buffalo
13,776
$300
n/c
Plymouth
Oakdale
70,676
$500
n/c
27,249
Single, $350/$500
n/c
Robbinsdale
13,698
$500
$250
St. Peter
10,887
$250
$150
Burnsville
61,355
varies ($1500 -$500)
$50
Stillwater
22,532
$300
$150
CITY COUNCIL WORK SESSION
APPROVED
81 Board on Wednesday (April 8) on the Comp Plan. Staff will then bring the Plan to the
82 council on April 27 and as needed thereafter to receive council authorization to submit
83 the Plan. He along with Senior Planner Smyser reviewed the written report to the
84 Planning & Zoning Board that includes comments from other jurisdictions, staff review
85 revisions, other revisions and landowner revision requests. The council will await the
86 outcome of that hearing and plan on discussing the Plan and eventually voting on
87 forwarding the Plan.
April 6, 2009
88 3. I -35E /CSAH 14 (Main Street) Interchange Update (No Written Report -
89 Verbal - Community Development Director Grochala reported that things are still
90 somewhat up in the air as far as stimulus funding for this project. It is a $22 million
91 project with $6.7 in federal funding currently available, leaving approximately $15
92 million unfunded. The city had planned on contributing in the area of $5 million
93 (assessment based). The project design is about ninety -five percent complete.
94 Development in the area has pretty much come to a halt, awaiting completion of the
95 interchange. The cities and the county applied for stimulus funding but, if that comes
96 through, there would still be a $3.6 million gap. The status of the stimulus funding is that
97 there is competition from one very large project that would consume about 90% of the
98 available funding. News on the program is changing almost daily. Mr. Grochala reported
99 further on the assessment element, noting that most of the property involved is
10o agricultural and that could involve deferred assessments; the city may have to ask the
101 county to consider those assessments as a loan until they are actually collected. If
102 everything comes together, Mr. Grochala anticipates things will move very quickly;
103 property owners will be informed and involved as necessary.
104 4. Acting City Administrator - The council reviewed a resolution included in the
105 packet for the upcoming council meeting (Item 1 D) that would appoint Administration
106 Director Dan Tesch as the acting city administrator supervising all areas except the Police
107 Department and establishing that Police Chief Pecchia will report on his department
108 directly to the council until a city administrator is hired. Regarding compensation, there
109 has traditionally been a ten percent temporary increase granted to the acting administrator.
110 In consideration of the additional duties during this transition, the council consensus was
111 to grant the ten percent increase to Mr. Tesch. The council also concurred that Mr. Tesch
112 will fill the city administrator position on the Centennial Fire District Steering
113 Committee.
114 5. License Background Investigation Fee — City Clerk Bartell reported that staff is
115 in the process of reviewing many of the city's fees to ensure that they comply with current
116 state law and to compare our fees with those of other municipalities. Fee changes may
117 be recommended in the future based on that research and on the outcome of strategic
118 financial planning.
119
120 The council had requested, as part of updating liquor licensing code language, that staff
121 specifically review the city's current fee structure for background investigations. The
122 council is receiving a report that includes a comparison of the city's initial and renewal
123 background fees to other cities. The Lino Lakes Police Department conducts the city's
•
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CITY COUNCIL WORK SESSION April 6, 2009
APPROVED
124 background checks so the report also includes a memorandum from them indicating their
125 costs.
126
127 Staff requested direction on any change to investigation fees in order to provide accurate
128 information to licensees for the upcoming license renewal period. A majority of the
129 council indicated that there should be no change to the existing fee structure.
130
131 6. Code Update Project — City Clerk Bartell recalled that at recent work sessions
132 the council has engaged in the process of reviewing the proposed update to the city code.
133 The council has had the opportunity to review independently those code sections that
134 contain only general non - substantive revisions. To date, staff has reviewed with the
135 council the following chapters containing more complex amendments:
136
137 101. City Code
138 602. Regulating the Sale of Tobacco & Tobacco Products
139 611. Lawful Gambling
140 613. Transient Merchants, Peddlers, Canvassers and Solicitors
141 216. Campaign Regulations
142 701. Liquor Licensing
143 702. Beer Licensing
144
145 In some chapters, the council authorized revisions that have either been provided to the
146 council or will be included in the final document presented for approval.
147
148 Staff is now proposing that this be the final council work session review of the updated
149 city code to pull together the remaining elements in order to present a code document for
150 printing, public presentation and council approval. City Clerk Bartell reviewed an
151 updated Table of Contents showing changes proposed to Chapters 505 regarding Open
152 Burning, 611 regarding Lawful Gambling, all of Title 1000 regarding Land Usage (except
153 Chapter 1007 regarding zoning that will be updated based on the city's update to the
154 comprehensive plan), and all of Title 1100 regarding Shoreland and Flood Plain
155 Management.
156
157 The schedule for completion of the code update was reviewed and Ms. Bartell indicated
158 that she will be moving forward to prepare the final code document for submission to the
159 codifiers for printing after which the code will be presented to the council for a public
160 hearing and adoption, probably in July. The council would like to review the document at
161 their work session preceding consideration at a regular council meeting.
162
163 Review Regular Agenda — The council was reminded that they will be meeting
164 as the Board of Review before the regular council meeting. They received Anoka
165 County's report on this year's property assessments and staff reported that the County
166 Assessor assigned to Lino Lakes, Ms. Linda Weiner, will be present at the council
167 meeting.
WS — Item #4
WORK SESSION STAFF REPORT
Work Session Item #4
Date: August 3, 2009
To: City Council
From: Julie Bartell
Re: Liquor License Investigation Fee
Background
As allowed by state statute, the city has established fees for licensing and regulation of
liquor sales (including 3.2 malt beverages). The city's adopted fee schedule includes
both a license fee and a fee for background investigations. As staff has reported
previously, those applying for licenses in Lino Lakes are charged a fee to cover the city's
cost to conduct a background investigation for their initial license application and for
their annual renewal. The Lino Lakes Police Department conducts these investigations.
The annual liquor licensing period for the city runs from July 1 through June 30 so this
year's renewal activities have just been completed. One licensee, Tom Wilzbacher of
Red Oak Steaks and Wines, Inc. has paid less than the amount of fees due. He is
declining to pay the annual background investigation fee of $250 (individual).
Staff has sought the advice of the City Attorney in this matter. City Attorney Joseph
Langel advises that while state statute clearly requires a background check on initial
liquor license applications and allows the city to charge a fee up to $500, it makes
background investigation for license renewals optional. A renewal investigation may be
undertaken if the Council "deems it in the public interest." While it can be inferred from
past practice and Council discussions that the Council finds such investigations to be
generally appropriate, there is no record of a formal decision to that effect. Moreover,
Ordinance Section 701.05, subd. 1, seems to call for more of a case -by -case approach. It
states that a renewal investigation "on a particular application" shall be undertaken if the
Council deems it in the public interest. The practice, however, has not been to make such
deteiiiiinations on specific applications.
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Requested Council Direction
The City's ordinance and its actual practice need to be consistent with each other and
with state law. The City Attorney is therefore recommending that the following issues be
addressed by the Council:
o Does the City wish to conduct a background investigations for liquor license
renewals?
o If so, would it be on all renewals as a matter of policy or only with respect
to particular applications?
• If on all renewals (as is the current practice), then a resolution to
that effect that explains the rationale for the renewal investigations
should be approved by the Council and the liquor ordinance should
be amended to remove the "particular application" language.
• If on only particular renewal applications, then a resolution is not
needed and the ordinance can remain as is, but staff should be
directed to stop doing renewal investigations as a matter of course
and to draft a procedure for determining when to ask the Council
for permission to conduct an investigation.
o If renewal investigations are not desired, then no action is necessary other
than to direct staff to stop conducting the investigations unless otherwise
directed by the Council.
o If the City will undertake renewal investigations, will the investigation fee remain
the same as it is currently? No distinction between the initial and renewal fees?
2
CITY COUNCIL WORK SESSION August 3, 2009
APPROVED
131 the council for direction on the parameters of a JPA and also on the matter of the impact of the charter
132 provisions.
133 Attorney Langel suggested that the city will have to deal with a decision about how a petition will be
134 viewed if in fact one is submitted.
135 The council had general agreement with the parameters of the JPA that had been presented.
136
137 5. Liquor License Investigation Fee — City Clerk Bartell reviewed the report before the council
138 regarding the city's practice and charges for liquor license background investigations. The process has
139 come under review since one renewal applicant is refusing to pay the fee for the annual background
140 investigation. The city attorney is suggesting that the council reinforce the rationale and the city code.
141 language if they wish to continue the requirement for investigations for renewal applicants.
142 The council concurred that annual investigation is a good practice and they would like to continue that.
143 Staff was directed to prepare a resolution that reinforces the practice and also prepare the appropriate
144 code amendment (to be considered as part of the recodification approval).
145 The council suggested that it may be appropriate to rework how the investigation cost is charged, perhaps
146 by adding it into the license fee.
147
148 Review Regular Agenda - City Planner Smyser reviewed Item 6A, second reading of an ordinance. He
149 provided requested information on what other cities are doing in the same area. While zoning districts
150 can be titled or separated differently in cities, it appears that most cities do allow the situation staff is
151 presenting for this city. The city's Economic Development Advisory Committee will also be offering an
152 opinion as of the end of the week.
153 A council member noted concern about "shoddy" church -type operations that could take advantage of the
154 change. It would be preferable to consider individual situations as they come forward. Staff pointed out
155 that the city isn't allowed to grant variances to zoning.
156 The meeting was adjourned at 8:15 p.m.
157 These minutes were considered and approved at the regular Council meeting held on August 24,
158 2009.
159
160
161
162 Julianne Bartell, City Clerk John Bergeson, Mayor
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Council Member
moved its adoption: Reinert introduced the following resolution and
CITY OF LINO LAKES
COUNTY OF ANOKA
RESOLUTION NO. 09 -63
Ratifying the City's practice of investigating liquor license renewal
applicants
Whereas, consistent with the requirements of Minnesota Statutes, section
340A.412, the City conducts a preliminary background and financial investigation
of applicants for intoxicating liquor licenses; and
Whereas, Minnesota Statutes, Section 340A.412, subd. 2, allows cities to
conduct a background investigation on license renewal applicants if the city's
governing body deems it in the public interest; and
Whereas, the City has historically conducted background investigations on
license renewal applicants and the Council feels that such investigations have
been, and continue to be, appropriate and in the public's interest; and
Whereas, the City Council received a recommendation from the Lino Lakes
Police Department that the practice of conducting background investigations on
license renewal applicants is needed and is in the best interest of the City and its
residents.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Lino
Lakes:
That the appropriate city officials are hereby directed to continue
conducting a background investigation on all individuals applying for renewal of
an intoxicating liquor license in the City of Lino Lakes.
7ulia ne Bartell, ity C erk
rg son, Mayor
Adopted by the Lino Lakes City Council this 14th day of September, 2009.
The motion for the adoption of the foregoing resolution was duly seconded by
Council Member Stoltz and upon vote being taken thereon, the following
voted in favor thereof: Reinert, Stoltz, O'Donnell, Gallup, Bergeson
The following voted against same: none
Whereupon said resolution was declared duly passed and adopted.
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WS— Item `2i
WORK SESSION STAFF REPORT
Work Session Item 7
Date: July 6, 2010
To: City Council
From: Jeff Smyser
Re: Draft Amendments to Zoning Ordinance and Subdivision Chapter of City
Code Regarding Development in Environmentally Sensitive Areas, Tree
Preservation, Landscaping, Platting, and Planned Unit Developments
Background
Since the late 1990s Lino Lakes has been pursuing a more environmentally sound means of
handling new development. This has included:
- Handbook for Environmental Planning and Conservation Development, 1999.
- Parks, Natural Open Space /Greenways and Trail Plan, 2004
-I -35E Corridor Alternative Urban Areawide Review, 2005
-2030 Vision Plan, 2007
The draft new Comprehensive Plan further promotes the conservation design principles laid out
in all these documents. Chapter 2 creates the Resource Management System Plan, establishing
an open space system that corresponds with Environmentally Sensitive Areas created by plans
and rules of the Rice Creek Watershed District.
Now the City is creating and amending official controls to implement the ideas and plans. In
February 2009 the City Council approved an agreement for a $25,000 Community
Conservation Assistance Grant from the Minnesota Department of Natural resources' (DNR)
Metro Greenways Program (Resolution No. 09 -10). The purpose of the matching grant
program is to assist local governments with the integration of natural resources information and
data into local development and conservation plans and policy decisions.
The City received the grant to assist with the development and updating of ordinances to
address environmentally sensitive areas, storm water management, integrated tree preservation
and landscaping requirements, planned unit development (PUD), low impact development
(LID) and conservation subdivision design. City staff worked with Bonestroo to prepare new or
revised sections of the zoning ordinance and subdivision regulations, which are the primary
controls for regulating new development. A new stormwater management ordinance also is in
the works. These new standards will apply to all new development in the city.
The review process for new development is as important as the regulatory standards. While we
have been practicing the collaborative method for the past few years, the new requirements will
codify those practices into ordinance form. The new collaborative design sections of the
subdivision regulations would apply to all new plats and planned unit developments. The PUD
section of the zoning ordinance would require the same process. This will eliminate redundant
and potentially conflicting requirements in the current ordinances.
The Environmental Board discussed the drafts on May 4 and June 2. A public hearing was held
by the P & Z on May 12 and June 9. Both boards recommended approval with some revisions
that have been incorporated into the drafts.
The drafts attached here will be incorporated into the City's larger ordinances. That is, what
you see here is not our entire set of development regulations. The larger zoning and
subdivision ordinances are being reviewed by staff to accommodate and support the new draft
requirements.
Requested Council Direction
No direction requested at this time. This information is supplied for informational purposes.
Approval of the new standards by the City Council will follow approval of the new
Comprehensive Plan, which provides the policy basis by creating the Resource Management
System Plan that the new ordinances will implement.
Attachment(s)
1. Draft Site Layout Performance Standards
2. Draft Landscaping and Tree Preservation Standards
3. Draft of part Subdivision and Platting Chapter of City Code: Concept Plan
§ 1001.020 General and § 1001.025 Collaborative Design Process
4. Draft of part of section of Zoning Ordinance
Section 2, Subd. 10.F. Procedure for Processing Planned Unit Development
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Attachment 1: Site Layout Performance Standards - REVISED June 25, 2010 Page 1
E. Site Layout Performance Standards. All uses shall comply with the requirements of this section.
1. Purpose. The City developed a Resource Management System Plan based on a water and
natural resource inventory and assessment and the vision, goals and policies developed through
the comprehensive planning process. The performance standards established in this section are
for the purposes of accommodating development that protects, conserves and enhances the
city's water and natural resources consistent with Comprehensive Plan goals.
2. Natural Resource Conservation. The two overall components of natural resource
conservation are the surface water management system and environmentally sensitive areas.
a. Surface Water Management System. The design of the surface water management
system shall be based on preserving predevelopment hydrology (i.e., existing surface water
runoff volumes and rates) and environmentally sensitive areas to the extent practical in
accordance with the following minimum performance standards:
1) Establish the wetland preservation corridor in accordance with watershed district rules.
2) Reduce the need for surface water management facilities by preserving and integrating
natural topography, soils and site drainage into the surface water management system
to the degree they can accommodate the additional flow and volume of water without
compromising water quality.
3) The preferred conveyance strategy is to transport wherever possible untreated and
treated runoff in conveyance facilities open to the atmosphere (e.g., swales, vegetated
buffer strips, energy- dissipating structures, etc.) rather than through enclosed pipes, so
as to decrease runoff velocity, allow for natural infiltration, allow suspended sediment
particles to settle, and to remove pollutants.
4) Site grading shall be minimized to the maximum extent reasonable to minimize impacts
to environmentally sensitive areas.
5) The surface water management system shall be designed to meet the City's stormwater
management standards. .
b. Environmentally Sensitive Areas (ESAs). The design of the site shall be based on
protecting, conserving, and enhancing ESAs to the extent practical while allowing for
equitable economic return. ESAs shall be identified and categorized through the site
planning process.
1) ESA Identification and Categorization. During the resource inventory and site
analysis process for a property that has an ESA, all ESA features on the site shall be
identified on the resource inventory map. Landscape -scale ESAs are mapped and on file
with the City. Balancing the goals of natural resource protection and conservation with
land use goals requires prioritizing ESAs. ESA categories (i.e., Natural Resource
Protected Area) are listed in descending order from the highest to the lowest level of
priority. ESA features (i.e., wetland preservation corridor, natural areas, etc.) listed
under each category are not prioritized.
Attachment 1: Site Layout Performance Standards Page 2
a) Natural Resource Protected Areas. These areas include:
i. Streams
ii. Lakes
iii. Wetland Preservation Corridor (WPC): Areas designated as wetland preservation
corridor on the landscape -scale WPC boundary shown on Figure 1 in Rice Creek
Watershed District Rule RMP 3, as amended. The wetland preservation corridor
may include:
• Wetlands
• Natural and Semi - Natural Areas: Areas designated as Natural and Semi -
Natural Areas in accordance with Minnesota Land Cover Classification
System (MLCCS). Natural areas are comprised of more than 50% native
plants. Semi - Natural areas are comprised of less than 50% native plants.
• Floodplain: Areas designated as 100 -year floodplain and regulated under
the Lino Lakes Floodplain Ordinance.
b) Natural Resource Conservation Areas. These areas include:
i. Wetlands Non - contiguous to the WPC.
ii. Natural and Semi - Natural Areas: Areas designated as Natural and Semi - Natural
Areas in accordance with the MLCCS. Natural areas are comprised of more than
50% native plants. Semi - Natural areas are comprised of less than 50% native
plants.
iii. Floodplain. Areas designated as 100 -year floodplain and regulated under the
Lino Lakes Floodplain Ordinance.
c) Natural Resource Corridor Enhancement Areas: Corridors that provide
connections between environmentally sensitive areas to establish a more contiguous
and complete natural open space system.
2) Minimum Performance Standards for ESAs. The following are the minimum
performance standards that shall be used in the site planning process to maximize the
function and value of ESAs, to minimize adverse impacts to ESAs, and to allow
development activities that will provide equitable economic return.
a) Natural Resource Protected Areas. These areas shall be protected and
incorporated into new development to maintain the function and value of water
resources and associated upland habitat areas while allowing for passive
recreational use. Development within natural resource protected areas is largely
controlled, and where applicable, prohibited under established regulations. Specific
performance standards within a Natural Resource Protected Area are as follows:
i. Surface Water. Incorporate lakes and streams into the surface water
management system consistent with applicable watershed district, State of
Minnesota, and Federal statutes and rules (e.g., pre -treat runoff before
discharging into a lake or stream, volume control, and rate control).
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Attachment 1: Site Layout Performance Standards Page 3
ii. Wetland Preservation Corridor. Establish the WPC in accordance with
watershed district rules. The delineated WPC will be established during the site
planning process.
iii. Vegetated Wetland Buffer. Establish an upland buffer of native vegetation
around wetlands within the WPC to maintain water quality and habitat.
Development is regulated in the following manner:
(a) The buffer shall average at least 50 feet in width, measure at least 25 feet
at all points, and meet the average width at all points of concentrated
inflow. The location of the buffer shall maximize the protection of ESAs.
(b) The vegetated wetland buffer and upland habitat area must meet the
requirements in RCWD RMP -3 and the Vadnais Lake Area Water
Management Organization, as amended
(c) Structures shall be setback a minimum of 10 feet from the edge of the
wetland buffer.
iv. Natural and Semi - Natural Areas. Conserve and enhance the function and
value of these areas for habitat, water quality, surface water management,
aesthetics, and passive recreational use.
(a) Suitable habitat for rare, threatened, or endangered species shall be
protected to the extent practical.
(b) The tree preservation and mitigation requirements in Section 3. Subd.4.Q
shall apply to Natural Resource Protected Areas.
(c) Prairie and other non -woody natural and semi - natural communities shall be
considered for protection, restoration, and /or inclusion in the surface water
management system.
(d) Structures shall be setback a minimum of 10 feet from the edge of
protected natural and semi - natural areas.
b) Natural Resource Conservation Areas. These areas shall be conserved to
maintain the function and value of the area while allowing encroachment and
disturbance to accommodate development. Specific performance standards within a
Natural Resource Conservation Area are as follows:
i. Natural and Semi - Natural Areas. Conserve and enhance the function and
value of these areas for habitat, water quality, surface water management,
aesthetics, and passive recreational use.
(a) Suitable habitat for rare, threatened, or endangered species shall be
protected to the extent practical.
(b) The tree preservation and mitigation requirements in Section 3. Subd.4.Q
shall apply to Natural Resource Conservation Areas.
(c) Prairie and other non -woody natural and semi - natural communities shall be
considered for protection, restoration, and /or inclusion in the surface water
management system.
Attachment 1: Site Layout Performance Standards Page 4
(d) Structures shall be setback a minimum of 10 feet from the edge of
protected natural and semi - natural areas.
ii. Wetlands Non - contiguous to the WPC: These areas shall be conserved in
accordance with applicable watershed district and Army Corps of Engineers
rules and permit requirements, as amended.
iii. Vegetated Wetland Buffer. Establish an upland buffer of native vegetation
to wetlands non - contiguous to WPC to maintain water quality and habitat.
(a) The buffer width must be at least 25 feet adjacent to the entire wetland.
The location of the buffer should maximize the protection of ESAs.
(b) The vegetated wetland buffer and upland habitat area must meet the
requirements in RCWD RMP -3 and the Vadnais Lake Area Water
Management Organization, as amended.
(c) Structures shall be setback a minimum of 10 feet from the edge of the
wetland buffer.
c) Natural Resource Corridor Enhancement Areas. These corridors shall be
established to provide contiguous and complete natural open space system, surface
water conveyance, and passive recreational uses. Specific performance standards
for Natural Resource Corridor Enhancement Areas are as follows:
i. Corridors should minimize natural resource fragmentation by creating
connections within and between natural resource protected areas or natural
resource conservation areas located on site and on adjacent properties.
ii. Corridors should be established where there is a convergence of multiple
features, such as surface water management areas, natural and semi - natural
areas, and existing or proposed trail corridors.
iii. The tree preservation and mitigation requirements in Section 3. Subd.4.Q shall
apply within Natural Resource Corridor Enhancement Areas.
3) Wetland Buffer and Upland Habitat Requirements.
a) As a condition of approval, a property owner must record a declaration in a form
approved by the City establishing vegetated wetland buffer area adjacent to the
delineated edge of a wetland and upland habitat defined as an ESA through the site
planning process. The declaration must state that on further subdivision of the
property, each subdivided lot of record shall meet the monumentation requirement
of paragraph E.2.b.3.b. On public land or right -of -way, in place of a recorded
declaration, the public owner may execute a written maintenance agreement with
the City. The maintenance agreement will state that if the land containing the buffer
or upland habitat area is conveyed to a private party, the seller must record a
declaration for maintenance in a form approved by the City.
b) Buffer or upland habitat area is to be indicated by permanent, freestanding markers
at the buffer or habitat area upland edge, with a design and text approved by City
staff in writing. A marker shall be placed at each lot line and at all angle and curve
points, with additional markers at an interval of no more than 200 feet. On public
land or right -of -way, the monumentation requirement may be satisfied by the use of
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Attachment 1: Site Layout Performance Standards Page 5
markers flush to the ground, breakaway markers of durable material, or a
vegetation maintenance plan approved by City staff in writing.
c) The application must include a natural resource management plan for City approval
that includes the following: site inventory, management goals, management
activities, maintenance activities, monitoring activities, funding mechanisms, and
any other information requested by City staff.
d) The buffer or upland habitat area will consist of vegetated land, primarily plant
species native to this region that is not otherwise disturbed, except for periodic
cutting or burning that promotes the health of the buffer or upland habitat area,
actions to address disease or invasive species, or other actions to maintain or
improve buffer or habitat area quality, each as approved in writing by City staff.
The following are prohibited: land that is cultivated; cropped; pastured; mowed;
fertilized; used as a site for depositing snow removed from roads, driveways or
parking lots; or subject to the placement of mulch or yard waste. For public road
authorities and stormwater system maintenance, the terms of this subsection will be
modified as necessary to accommodate safety and maintenance feasibility needs.
e) Wetland buffer and upland habitat area may be disturbed to alter and contours or
improve buffer and upland habitat function if the following criteria are met:
i. An erosion control plan is submitted under which:
• alterations are designed and conducted to expose the smallest amount
of disturbed ground for the shortest time possible;
• fill or excavated material is not placed to create an unstable slope;
• mulches or similar materials are used for temporary soil coverage; and
• permanent native vegetation is established as soon as possible.
ii. Wooded buffer and native riparian canopy trees are left intact.
iii. When disturbance is completed:
• sheet flow characteristics within the buffer are improved;
• average slope is no steeper than preexisting average slope or 5:1
(horizontal:vertical), whichever is Tess steep; however, preexisting slopes
steeper than 5:1 containing dense native vegetation will not require
regrading;
• the top 18 inches of the soil profile is not compacted, has a permeability
at least equal to the permeability of the preexisting soil in an
uncompacted state and has organic matter content of between five and
15 percent; and
• habitat diversity and riparian shading are maintained or improved.
iv. A re- vegetation plan is submitted specifying removal of invasive species and
establishment of native vegetation suited to the location.
v. A recorded declaration or, for a public entity, maintenance agreement is
submitted that states that for three years after the site is stabilized, the
Attachment 1: Site Layout Performance Standards Page 6
property owner will correct erosion, maintain and replace vegetation, and
remove invasive species to establish permanent vegetation according to the re-
vegetation plan.
vi. Disturbance is not likely to result in erosion, slope failure or a failure to establish
vegetation due to existing or proposed slope, soil type, root structure or
proposed construction methods.
f) No above- or below- ground structure or impervious surface may be placed within
the buffer or upland habitat area permanently or temporarily, except as follows:
i. A public utility, or a structure associated with a public utility, may be located
within a buffer or upland habitat area on a demonstration that there is no
reasonable alternative that avoids or reduces the proposed buffer intrusion. The
utility or structure shall minimize the area of permanent vegetative disturbance.
ii. Stormwater features that are vegetated consistent with E.2.b.3.d may be
located within buffer on site - specific approval.
iii. Buffer or upland habitat area may enclose a linear surface no more than 10 feet
in width and, for buffer, no less than 25 feet from the delineated wetland edge
for non - motorized travel if wetland habitat will not be measurably reduced. Trail
edge mowing is not permitted.
3. Disconnect and Distribute Stormwater. The guidelines established in this section are for
the purposes of maximizing the use of pervious areas at the site to help filter and infiltrate runoff
generated from impervious areas and to spread excess runoff over pervious areas.
a. Compost and Amended Soils. To recover soil porosity lost due to compaction, soils
should be amended to allow for adequate water holding capacity for plant growth and
infiltration of runoff.
b. Disconnect Impervious Surfaces. Runoff from impervious surfaces such as parking lots,
driveways, and sidewalks should be routed to adjacent pervious areas to be filtered or
infiltrated into the soil.
c. Rooftop Disconnection. Runoff from rooftops should be spread over lawns and other
pervious areas.
4. Reduce Impervious Cover. Less impervious cover directly results in Tess stormwater runoff
and pollutant Toads generated at the site. Impervious surface should be reduced to the extent
practical.
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Attachment 1: Site Layout Performance Standards Page 7
Incentives. To provide for equitable economic return in consideration of protection and conservation of
ESAs and surface water management areas, potential incentives may be offered. The following are
potential incentives that may be offered (the location of these incentives in the ordinance is yet to be
determined):
1) Wetland replacement credits
2) Stormwater management credits
3) Density bonus or transfer
4) Tree preservation credits
5) Landscape requirement credits
6) Park dedication credits
7) Trunk utility and stormwater management fee credits
8) Reduced setbacks
9) Staging plan flexibility
10) Financial incentives when consistent with city policy
11) Reduce required front yard setback to reduce driveway length
12) Reduce required side yard setback to allow narrower frontages to reduce street length
13) Reduce required street width
14) Reduce required cul -de -sac radius
15) Reduce required parking ratios
16) Reduce required parking lane widths
17) Reduce required parking stall dimensions
18) Reduce driveway width
19) Allow shared driveways
20) Allow alternative surfaces for driveways (pervious)
21) Reduced sidewalk requirements
Attachment 2: Landscaping and Tree Preservation Standards - REVISED JUNE 21, 2010 Page 1
Q. Landscaping and Tree Preservation Standards
1 Purpose. To establish landscaping and tree preservation standards to promote high quality
site development, compatibility of uses, biodiversity, tree preservation, and to enhance the
health, safety and general welfare of the residents of the community.
2 Definitions. The following words and terms, wherever they occur in this Ordinance, shall be
interpreted as herein defined:
Approved Species: Species found on the City maintained list which may be planted. The City
may restrict applicant's use of approved species in certain situations where the species may
be inappropriate.
Basic use area: Area dedicated to site's use, including buildings, parking, loading, driveways,
streets, outbuildings, trash enclosures, utilities, landscaping, and grading necessary for the
construction of the above uses. Surface water detention ponds are not part of the basic use
area.
Biodiversity: The variety, distribution and abundance of living organisms in an ecosystem.
Buffer: Linear bands of vegetation, and /or space providing separation between two separate
land uses.
Caliper: Standard measure of tree size for newly planted trees. The caliper inches of a tree
is the diameter of the trunk. This dimension is measured at 6" above the ground when the
trees are 4" caliper and less. For trees over 4" caliper, the diameter of the trunk is measured
at 12" above the ground.
Canopy: The top layer or crown of trees.
Cutting: The feeling or removal of a tree or any procedure in which the natural result will
lead to the death or substantial destruction of a tree. Such acts include, but are not limited
to, severe cutting back of limbs to stubs larger than three inches in diameter, and damage
inflicted upon the root system of the tree. Cutting does not include normal pruning within
the bounds of normal arboricultural practice.
Damage: Action or inaction which does not follow good arboriculture practices. Damage
may include damage inflicted upon roots by machinery, changing the natural grade above
the root system or around the trunk, destruction of the natural shape or any action which
causes infection, infestation or decay.
DBH: Diameter at breast height, typically measured at 4' -6' above the ground.
Detention Area: Area of a detention pond from the normal water level and up the side
slopes to 10' offset from the high water level.
Disturbance: Any construction, development, removals, earth movement, clearing or other
similar activity.
Diseased tree: A tree with a health condition which makes it subject to a high probability of
failure.
Dripline: Imaginary line on the ground that is extended straight downward from the
outermost edge of the canopy.
Foundation Landscape Zone: Within 15' of the building.
Invasive species: A plant non - native to the local ecosystem which exhibits, or has the
potential to exhibit, uncontrolled growth and invasion or alteration of the natural functions of
any native habitat.
•
Attachment 2: Landscaping and Tree Preservation Standards - REVISED JUNE 21, 2010 Page 2
Large Shrub: Large shrubs have a mature height over 6'.
Large Tree: Overstory deciduous trees with a mature height of at least 40'.
Medium Shrub: Medium shrubs have a mature height of 3' -6'.
Medium Tree: Deciduous trees with a mature height over 18' and up to 39'.
Native species: A plant species that is indigenous to the local ecosystem.
Perennial: A plant, usually a flowering species, having a lifespan of more than two (2) years.
Prohibited species: Species that may not be planted within the City that are typically invasive
or considered a nuisance.
Removal: Actual removal or effective removal through actions resulting in the death of a tree.
Root Protection Zone: A protected area around an existing tree established by offsetting the
dripline 5' away from the tree center.
Screen: A barrier that hinders sight and, potentially, access.
Small Shrub: Small shrubs have a mature height of less than 3'. Small shrubs are
interchangeable with perennials, ornamental grasses and groundcovers to fulfill landscape
req-uifemestandards.
Small Tree: Understory deciduous trees with a mature height of 18' and under.
Tree: Any self supporting woody plant, growing up the earth with one trunk of at least 3"
dbh, or a multi - stemmed trunk system with a definitely formed crown.
Undesirable tree: Trees that are dead, diseased, structurally weak, invasive or trees that are
hazardous to people, infrastructure or buildings.
Topping: Severe pruning removing at least 30% of a tree canopy, and drastically altering the
shape.
Whip: Small bare root tree with a juvenile root system.
•
Attachment 2: Landscaping and Tree Preservation Standards - REVISED JUNE 21, 2010 Page 3
3 Landscaping Standards. New residential platted subdivisions, mixed use, commercial,
institutional and industrial uses shall be subject to the landscaping standards. The landscape
standards have been divided into four categories: Canopy Cover (C), Foundation Landscape
(FL), Open Areas Landscape (OL),Landscape Screen (LS) and boulevard trees.
4 Canopy Cover (C). The purpose of this requirement is to mitigate the effects of vehicular
hardscape by establishing tree canopy cover to intercept rainfall, protect pavement from sun
deterioration, reduce the heat island affect, and improve aesthetics. Vehicular hardscape
areas includes loading drives, parking lots, driveways, dropoffs and other areas covered with
a hard surface intended for vehicles.
a. The required minimum canopy coverage for all uses is 40 %.
b. The following equation shall be used to calculate required canopy coverage:
Vehicular Hardscape (square Feet) x Canopy Cover Percent = Required Minimum Canopy Cover (Square Feet)
The total of the assigned canopy coverage values for all the trees in or near the vehicular
hardscape must be equal or greater than the required minimum. Pervious pavements are
considered 50% hardscape.
c. The assigned canopy coverage value of each tree is based on planting location, tree size
and anticipated tree canopy size 15 years after planting. The assigned canopy cover
value to each deciduous tree is described in the following table and illustrations:
Planting Location
(for new trees)
Interior parking
lot islands
Within less than 7 of
vehicular hardscape
edge
7' -12' from
vehicular
hardscape edge
Assigned Canopy Coverage
Value
100% of the
canopy square
footage
50% of the canopy
square footage
25% of the
canopy square
footage
y ,_ *
,°mRa
L, 1. v L
t > c -
• ;
Large Tree
1200 SF, or 950
SF per tree in
islands with 1 or
2 trees
600 SF
300 SF
w v° 0
'� a c 'a
Medium Tree
500 SF
250 SF
125 SF
�'
in
Small Tree
250 SF
125 SF
NA
Existing Tree:
6 — 12" dbh
1900 SF
950 SF
NA
Existing Tree:
12+ "dbh
2850 SF
1425 SF
NA
d. Existing trees may be used to fulfill canopy coverage as described in Section 9 when the
dripline has proximity to the edge of the hardscape; therefore, existing trees do not need
to be within Tess than 7' feet of the vehicular hardscape edge.
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Attachment 2: Landscaping and Tree Preservation Standards - REVISED JUNE 21, 2010 Page 4
`.,.I.IIC
r/ I I I. ) ."��- -Large aees in an island containing
__.
j 3 more trees are given additional
�l Canopy Value. see Canopy Coverage
Table.
T
Trees surrounded by hardscape on 3
sides are valued at 100% Canopy.
Trees with access to planting soil
outside of the island are required to
meet soil volume requirements for a
shared bed.
Trees in interior islands are valued at
100% Canopy
5 Foundation Landscape (FL) Standards. The purpose of this requirement 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.
a. The foundation landscape planting regtrtremetsstandards are described in the following
table:
L) �cntsStandards
*Round to the nearest plant
b. The following equation shall be used to calculate required foundation landscape
plantings:
Building Linear Feet / 100 = # of required trees and shrubs
c. The foundation landscape shall be planted in the foundation landscape zone adjacent to
the building face where the requirement applies. The City may allow flexible planting
locations where service areas or other constraints make the requirement difficult to meet.
d. Existing trees may be used to fulfill foundation landscaping as described in Section 9.
6 Open Areas Landscape (OL) Standards: The purpose of -- --- hese standards
is to provide general site beautification and high aesthetic quality with a mix of plant
materials in open areas. Open areas include disturbed site areas, such as cul de sac islands,
boulevard medians, storm water management areas, common areas in multifamily sites that
are not for recreation facilities, and disturbed areas that are not located within the foundation
landscape zone, vehicular hardscape area or the building footprint. Open areas landscaping
shall meet the following standards.
a. The open areas planting requirementsstandards are described in the following table:
Per 100 linear feet (LF) of Building*
Location
Trees and Shrubs
Rear and Side
1 large,
1.5 medium, or
2 small
3 large,
5 medium, or
10 small
Front and Street
2 large,
3 medium, or
4 small
6 large,
10 medium, or
20 small
Foundation
Landscape Zone
Within 15' of the building
*Round to the nearest plant
b. The following equation shall be used to calculate required foundation landscape
plantings:
Building Linear Feet / 100 = # of required trees and shrubs
c. The foundation landscape shall be planted in the foundation landscape zone adjacent to
the building face where the requirement applies. The City may allow flexible planting
locations where service areas or other constraints make the requirement difficult to meet.
d. Existing trees may be used to fulfill foundation landscaping as described in Section 9.
6 Open Areas Landscape (OL) Standards: The purpose of -- --- hese standards
is to provide general site beautification and high aesthetic quality with a mix of plant
materials in open areas. Open areas include disturbed site areas, such as cul de sac islands,
boulevard medians, storm water management areas, common areas in multifamily sites that
are not for recreation facilities, and disturbed areas that are not located within the foundation
landscape zone, vehicular hardscape area or the building footprint. Open areas landscaping
shall meet the following standards.
a. The open areas planting requirementsstandards are described in the following table:
Attachment 2: Landscaping and Tree Preservation Standards - REVISED JUNE 21, 2010 Page 5
Open Areas Landscape (OL) Standards
Per 2000 SF
Trees and Shrubs
1 large,
1.5 medium, or
2 small
3 large,
5 medium, or
10 small
b. Round all calculations to the nearest whole number of plants.
c. Only land above the normal water level shall be included in the open area calculation for
storm water detention areas. Planting shall be located above the normal water level in
detention areas. The City may require specific tree species in locations where water
levels vary.
d. Existing trees may be used to fulfill open areas landscaping as described in Section 9.
e. Areas that are included in a project - specific natural resource management plan that
addresses vegetation are not subject to the open areas landscaping standards.
f. All lot areas not used for off- street parking, off- street loading, sidewalks, driveways,
building sites or other requirements shall be landscaped with grass, shrubs, trees or
other acceptable vegetation or treatment as required by this chapter prior to issuance of
a certificate of occupancy. Exceptions to this requirement are listed under "Certificate of
Compliance ".
7 Landscape Screen: The purpose of this requirement is to separate and buffer different land
use types, screen roads and parking, and hide utility and loading areas. Landscape screens
shall meet the following standards.
a. Required screen location, height, and materials are described in the following table:
Location
Required
Screen
Height
Required Screen Materials
Between a parking lot
and
public right of way or
sidewalk
30 inches
• year round continuous planting screen in
accordance with paragraph 7.b.
or
• continuous wall or fence of permanent material
Between a parking lot
and
adjacent residential uses
(this includes across a
30 inches
• continuous berm or wall or fence of permanent
materials to block headlights
and
• plantings shall provide shrub cover for 50% of the
wall or fence on the exterior side
street from residential)
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Attachment 2: Landscaping and Tree Preservation Standards - REVISED JUNE 21, 2010 Page 6
Location
Required
Screen
Height
Required Screen Materials
Between residential uses
• year round continuous planting screen in
and
accordance with 7.b.
arterial or collector road
or
• wall or fence of permanent materials
Between any development
6 feet
and plantings shall provide shrub cover for 50% of
and
the wall or fence on the exterior side
adjacent, less intense,
residential land uses
or
• 6 ft. berm
(this includes across a
or
street from residential
• 4 ft. berm with additional 2 ft. year round
Between loading /service
continuous screen in accordance with paragraph
area
and
public view
7.b.
b. All continuous year round planting screens shall require at a minimum
a double row of plants with triangulated spacing. See illustration.
Plantings shall be spaced so that visibility through the screen is
completely blocked within 5 years of the time of planting. Small
shrubs shall be a planted at a maximum of interval of 3' on center, medium shrubs shall
be planted at a maximum interval of 4' on center, and large shrubs shall be planted at a
maximum interval of 6' on center unless otherwise authorized by the City.
c. A wall or fence intended to provide a continuous year round screen shall block visibility
completely.
d. In addition to the shrub and wall /fence screen rcquircmcntsstandards, all screens shall
be planted with large trees every 50 LF, medium trees ever 35 LF, or small trees every
25 LF or some combination thereof, along the length of the screen.
e. Existing vegetative screens should be left in place unless composed of invasive species or
otherwise directed by the City. Existing screens may be enhanced with new plantings to
comply with the rem-s standards.
f. Berms shall be irrigated and have maximum side slopes of 3:1.
g.
Permanent walls and fences shall be offset by a
minimum of 2' at intervals of 75' maximum length
for stability and visual relief. See illustration.
h. Approved permanent wall /fence_ materials shall include wood, metal, masonry, concrete
and-_stone, or other prefabricated and /or sustainable materials. i=cnces also may be
8. Boulevard Tree Standards:
a. Boulevard trees are required at the rate of one tree per 70 linear feet of road frontage
where property fronts any public road. The City shall collect a standard fee per tree
based on the estimated market rate cost to purchase and install trees within the
development site.
Attachment 2: Landscaping and Tree Preservation Standards - REVISED JUNE 21, 2010 Page 7
b. Existing trees may be used to fulfill boulevard tree requi-Fementsstandards at the City's
discretion.
9. General Landscaping RcquircmcntsStandards:
a. Desirable existing trees may be used to fulfill Canopy Cover, Foundation Landscape and
Open Areas Landscape feetbri-FeffteRtsstandards if applicable by placement. Desirable
existing trees are valued according to the following table:
Tree Size
Deciduous
Tees under 6"
DBH or
Evergreen
trees under
12' tall
Deciduous
trees between
6 " -12" DBH or
Evergreen
trees between
12' -20' tall
Deciduous trees
over 12" DBH or
Evergreen trees
over 20' tall.
Tree Value
1 large tree
2 large trees
3 large trees
b. Ric Standards may be met by grouping different sizes of trees and shrubs.
c. New trees may fulfill Canopy Coverage, Foundation Landscape and Landscape Screen
requirementsstandards simultaneously if applicable by placement.
d. An existing tree is considered to be removed if the tree trunk is damaged or if more than
30% of the dripline area is disturbed during the construction process.
e. The City may allow flexibility in landscape roquircmentsstandards if there are conflicts
with solar power, wind power, water harvesting, food production or other innovative
measures proposed for the site.
f. The landscape plan shall be compared to all applicable CPTED (Crime Prevention
Through Environmental Design) standards and reviewed by the police department.
Trees and shrubs shall not be planted in the right of way without City authorization.
g.
10. Landscaping Guidelines and Technical Requirements: The purpose of the guidelines
and technical requirements is to encourage plant longevity, minimize maintenance, and
mitigate conflicts with other site features. An initial investment in high quality materials,
careful design and planning, and proper construction techniques can result in plant longevity
and long term maintenance cost reduction.
a. Species Selection: Appropriate species selection is critical to maximize the benefits of
plant materials. Healthy, long lived plants well suited to a site will reduce maintenance
and replacement costs, while providing the most aesthetic and environmental gain.
Native species in the built environment will supplement and connect the existing natural
areas. Diversity is also important for an overall healthy and balanced landscape that is
less susceptible to pests and disease.
1) The City shall maintain a list of approved species. The list is based on Lino Lakes
area natural vegetative cover and includes additional hardy, non - invasive species.
Approved species are classified by size. For each site, plants shall be selected based
on mature size and adaptability to site conditions, such as microclimate, salt,
pollution and other factors. The list of approved species is not exhaustive.
Applicants requesting to plant a species not on the list shall submit species name,
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Attachment 2: Landscaping and Tree Preservation Standards - REVISED JUNE 21, 2010 Page 8
height, width, form, hardiness zone, and other relevant information. The City shall
classify new species based on tree size standards. For large projects the City may
require applicants to comply with the following requirements:
i. Species diversity
ii. A minimum percentage of native species
iii. A minimum percentage of large trees
iv. A minimum percentage of evergreen trees.
2) The City shall maintain a list of prohibited species. This list includes species that are
invasive or have other negative characteristics that may lead to ecological damage.
3) Exposed soil is not allowed. All areas not covered by a structure or hardscape shall
be planted and mulched in accordance with the following:
i. In areas with low pedestrian traffic, the use of low maintenance turf, typically
fescue blends, is encouraged. In areas of high pedestrian traffic, the use of turf
mixes with a higher percentage of rye grass is encouraged.
ii. Turf in areas near roads and parking lots shall be salt tolerant.
iii. Groundcovers shall be turf, perennials, annuals, small grasses, or low spreading
shrubs. Type of groundcover should be determined by site conditions and
anticipated use. Mulch is acceptable in landscape beds and areas not suitable for
living groundcovers.
iv. Hardy perennial forbs and ornamental grasses should be used in car overhang
areas and places where snow may be stored.
4) Annual plantings should be minimized within 10' of a tree. The process of frequently
replanting may damage the tree's shallow root system.
5) Seed mixes should be used in large expanses of naturalized areas. The City shall
maintain a list of approved seed mixes. Where seed mixes are used, the City may
request that visible edge treatments be planted with more deliberate groupings of
flowering plants.
6) A permanent solid edge such as a 6" concrete, stone or other barrier is required
between native seeded areas and turf unless otherwise approved by the City.
Attachment 2: Landscaping and Tree Preservation Standards - REVISED JUNE 21, 2010 Page 9
b. Planting Requirements:
1) To promote development of a large, healthy canopy, trees shall be planted in
accordance with the requirements in the following table and illustration:
Tree Size
Minimum
island width
for roots
(back of curb
to back of
curb)
Minimum
tree
opening
Minimum
planting
soil
depth
Minimum
cubic feet
of soil
available
per tree in
a single
bed
Minimum
cubic feet of
soil available
per tree in a
shared bed or
three sided
island
Large Tree
9, -0"
4' x 6' or
5'x5'
30"
440 CF
400 CF
Medium Tree :
6' -0"
5' x 5' or
30"
300 CF
270 CF
Small Tree
5' -0"
4' x 5'
30"
250 CF
225 CF
Minimum Island Width
2'
16' typical car space
Planting Soil
Engineered Planting Soil
Calculate planting soil volume by Length x Width x Depth
Minimum Island Width dimension can be reduced to the Minimum Tree Opening dimension if
engineered planting soils are used beneath adjacent hardscape to achieve required soil volume.
2) Soils: Landscaped areas need high quality soils that retain moisture for plants to use,
but drain adequately. Soil shall be uncompacted existing soil, new planting soil or
engineered soils designed to allow plant growth. Proper soil preparation helps to
ensure long term survival of the plants and to reduce the need for ongoing
maintenance, additives, and pest control. If soil compaction exceeds 1400 kPa (200
psi) at the time of planting, the soil shall be loosened. Preexisting soils may be used
and should be protected from compaction during construction.
3) Mulch: Mulch helps plant health by keeping the soil moist, protecting soil nutrients,
preventing erosion, encouraging infiltration, and inhibiting weed growth. Mulch from
decomposing materials such as wood chips enriches the soil over time. Although
decomposing mulch needs to be replenished approximately twice a year to maintain
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Attachment 2: Landscaping and Tree Preservation Standards - REVISED JUNE 21, 2010 Page 10
adequate thickness, once plants grow together there is often need for little or no
mulch. Mulch shall comply with the following requirements:
a) Provide mulch at a depth of 3 -4" for wood chips, 4 -6" for shredded bark and 3 -4"
for rocks or other non - organic matter.
b) Provide a 3' minimum diameter mulch ring at the base of trees.
c) Prohibit mounding mulch at the bases of trees, or allowing mulch within 4" of
plant stems and trunks, as this will cause them to rot.
d) If used, only water permeable fabric is permitted as a weed barrier.
e) Leave one inch of space from the top of the mulch layer to adjacent hardscape
surfaces to prevent spilling.
f) The City may limit certain types of mulch in areas where safety or spilling may be
an issue.
Mulch should not be mixed with underlying soil.
g)
4) Fertilizer: When fertilizer is used, organic and slow release fertilizers are
recommended.
5) Drainage: Tree planting pits shall drain adequately. Drainage for trees may be
accomplished through the use of non - compacted and well draining soils. The City
may require the following drainage test: Dig 8" diameter holes 1' deep and fill with
water. If the holes do not drain within 24 hours adjust bed design or composition in
order to achieve proper drainage. If the underlying soils retain water, the applicant
shall provide additional drainage measures.
6) Tree protection after construction: Bollards, barriers, or spacing may be necessary
to protect trees from cars. Bike parking should be included to discourage locking
bikes to trees. For tree protection during construction see Section Q.15.
c. Tree and Infrastructure Placement: Tree placement should be given consideration when
locating overhead and underground utilities. Service utilities should be located outside of
plant beds where they may conflict with tree plantings. Consider using conduits for
buried utilities to allow future work with less disruption to roots. The clearances in the
following table are recommended from the center of the tree trunk to avoid future
conflicts:
Utility
Distance to Center of Tree
Lights, Utility Poles, Fire Hydrants
10'
Water, Sanitary, Storm and Gas lines
6' from the center of the line.
Conduit for dry utilities (electric, cable)
3'
Utility clean outs and access points
3'
Overhead utility lines (consult utility
company for additional requirements)
5' to mature tree canopy (may require
trimming, topping is prohibited, see
Section Q.10.f)
Attachment 2: Landscaping and Tree Preservation Standards - REVISED JUNE 21, 2010 Page 11
d. Clear Vision Area for Local Residential Roads: Shall
mean the triangular area of a corner lot formed by the
intersection of the right -of -way (ROW) lines and a line
connecting them at points 20' from the intersection
unless otherwise directed by the City (see illustration).
Within this area, visibility shall be unobstructed between
a height of 30 inches and 8 feet above the center line
grades of the intersecting roads.
Clear Vision Area for County Roads: Shall be
determined on a case by case basis, depending on the
road alignment, grading, traffic speed and the nature of the intersection and is subject to
County and City review.
-r
I Clear View Area
LL
defined by ROW line
ROW lire
Curb line
e. The minimum plant size requirements are described in the following table:
Minimum Plant Size Requirements
Plant Type
Minimum Size*
Large trees
Bare Root - 1.75"
Balled and Burlapped or Container - 2" caliper
Medium and small trees
Bare Root - 1.5"
Balled and Burlapped or Container - 1.5" caliper
Evergreen trees
6' height
Large shrubs
3 gallon container
Medium shrubs, small shrubs and
groundcovers
1 gallon container
Ornamental grasses and perennials
4" pot
* City may limit bare root plantings in areas of high visibility. In selected situations the City may
allow ten (10) whip bare root plantings, or five (5) 3/4" caliper bare root plantings to be
substituted for 1 large tree. Bare root plantings must be protected with rodent guards.
f. All boulevard trees shall be balled and burlapped and a minimum size of 2" caliper
g.
Installation and Maintenance
1) Installation: Proper planting is the first and most important step toward establishing
healthy and low maintenance vegetation. All plantings shall be installed in
accordance with standard practices of horticultural professionals.
Stem girdling roots are often fatal for trees that have been planted too deep or have
mulch or soil built up around the trunk. All trees shall be planted so that the root
flare (where the trunk widens out just above the roots) is visible above the ground
level and the highest large root is within 1/2" of the ground surface. All adventitious
roots should be cut away at the time of planting to avoid the formation of stem
girdling roots.
2) Maintenance: The property owner or if applicable, the homeowners association, shall
be responsible for maintenance of landscape elements (plants, structures, pavement,
etc.) so as to present a neat and aesthetically pleasing appearance free of any
unhealthy or potentially unsafe conditions. Landscaping shall be maintained to be
weed -free, healthy, trimmed, mown, edged, reseeded, pruned, and replaced with
similar plant species if necessary. Specific requirements for watering and pruning
follow:
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Attachment 2: Landscaping and Tree Preservation Standards - REVISED JUNE 21, 2010 Page 12
i. Watering: All plantings require regular watering for at least the first three years
to get established. Once the root system has developed, many hardy plants,
especially native plants, may only need supplemental watering in drought
conditions.
Cultured turf areas and landscape berms shall be permanently irrigated. The
City may allow low maintenance turf to be non - irrigated if a method for
supplemental watering, such as a spigot or rain barrel, is provided.
For landscape beds ongoing irrigation may be provided through a permanent or
temporary system, or by hand. (Note: typical installed irrigation systems do not
provide adequate water for new trees.) Permanent irrigation systems with an
automatic controller shall utilize rain sensing technology. Overspray should not
fall outside of the landscaped area. Water efficient drip or underground
irrigation is required in shrub and groundcover landscape beds for permanent
systems. Temporary systems may use spray irrigation for shrubs or plugs. See
Water Conservation Ordinance for additional watering requirements.
ii. Pruning: Plants shall be pruned to avoid conflict with other structures, remove
dead or diseased limbs and for optimum shaping. The City recommends that
trees be pruned by a certified arborist every 4 -7 years, which can help reduce
maintenance costs. Topping or extreme crown reduction is prohibited unless the
tree is a safety hazard or such measures are approved by the City.
Trees overhanging walkways should be pruned up to 7' when mature. Trees
overhanging streets should be pruned up to 10' when mature. Smaller trees
should receive limited pruning appropriate to the size and age of the tree.
Branches that are hazardous for any reason shall be removed immediately. The
City may direct pruning.
The property owner or if applicable, the homeowners association, shall be
responsible for removing any trees or shrubs or parts thereof that are dead,
diseased or overhang or interfere with traffic control devices, public sidewalks, or
rights -of -way.
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Attachment 2: Landscaping and Tree Preservation Standards - REVISED JUNE 21, 2010 Page 13
11. Tree Preservation and Mitigation Standards : The purpose of these
requirementsstandards is to protect valuable trees and stands of vegetation, while not
interfering with landowners' reasonable use and development of property. The goal is to
minimize unnecessary loss of habitat, biodiversity and forest resources and to replace
removed trees in areas where tree cover is most critical. Except where Unless specifically
excepted, tree preservation and mitigation standards apply to all plats, site plans, conditional
use permits, interim use permits, excavation grading, building, and er -other activity that
requires a city permit or approval.
a. Tree preservation and mitigation feq tii-rementsstandards for each level are described in
the following table:
2cquircmentsStandards
Environmentally
Sensitive Area
(ESA) Category
Tree Location:
within Basic
Use Area
Tree Location: not within Basic
Use Area
Deciduous
trees 6" dbh
and over or
Evergreen trees
between 12'-
20' tall
Deciduous trees
Deciduous
trees over 12"
dbh or
Evergreen
trees over 20'
tall
6 -12" dbh or
Evergreen trees
between 12' -20'
tall
Non ESA
no mitigation
required
provide 1 tree per
1 tree removed
Provide 2 trees
per 1 tree
removed
Natural Resource
Conservation Area
or Natural Resource
Corridor
provide 1 tree per
4 removed
provide 2 trees
per 1 tree
removed
provide 3 trees
per 1 tree
removed
Enhancement Area
Natural Resource
Protected Area
provide 1 tree per
2 removed
provide 2 trees
per 1 tree
removed
provide 3 trees
per 1 tree
removed
b. Trees used for mitigation purposes must meet the Landscaping Guidelines and Technical
Requirements in Section Q.10.
c. Trees used for mitigation may also fulfill the Open Areas Landscape Requirement at the
discretion of the City.
d. Trees with thirty percent (30 %) of the roots damaged are considered to be removed and
must be mitigated for at the applicable rates.
e. Undesirable trees are not subject to preservation and mitigation standards.
f. On existing lots with existing buildings where no building or development activity that
requires a permit or approval from the City is occurring, the removal of trees is not
subject to tree preservation and mitigation reguir-ementsstandards.
g. Replacement trees shall be planted on site.
h. The applicant may request to pay a fee per tree in lieu of some or all of the trees
required for mitigation. At the City's discretion, the City may accept the fee for planting
trees within the general area of the development project. The City shall maintain a
standard fee per tree based on the estimated market rate cost to purchase and install
trees.
Attachment 2: Landscaping and Tree Preservation Standards - REVISED JUNE 21, 2010 Page 14
12. Tree Survey:
a. A tree survey is required for all property that contains a deciduous tree greater than 6"
dbh or an evergreen tree greater than 12' tall.
b. The tree survey shall be the basis for the tree preservation plan, tree mitigation
standards, and the use of existing trees to fulfill landscape
regementsstandards.
c. The tree survey shall provide the following information:
1) in the basic use area and other areas where tree removal is proposed, for all
deciduous trees over 6" dbh and all evergreen trees greater than 12' tall:
i. tree species
ii. size
iii. location
iv. dripline
v. tree condition
2) the location of the combined driplines of all tree stands designated for preservation
on the development property
3) on adjacent properties, the dripline of deciduous trees over 6" dbh and evergreen
trees greater than 12' tall where the dripline is within 5' of the development property.
d. For a new plat or new Planned Unit Development, the tree survey shall be one plan sheet
and the tree preservation plan shall be a separate plan sheet.
e. For a building permit for a new structure on an existing lot, the tree survey and
preservation information may be included on the lot survey typically required for a
building permit instead of on a separate document. For a building permit for an addition
to an existing structure, the tree survey information may be provided in an informal
medium that sufficiently conveys the information.
f. At the City's discretion, the tree survey requirement may be waived under the following
circumstances:
1) Deciduous trees greater than 6" dbh or evergreen trees greater than 12' tall will not
be removed and are not likely to be impacted by construction.
2) Deciduous trees greater than 6" dbh or evergreen trees greater than 12' tall will only
be removed within the basic use area and the basic use area is not an ESA.
13. Tree Preservation Plan:
a. A tree preservation plan shall be required for all soil disturbance activities where tree
preservation and mitigation reguifement-sstandards apply in accordance with Q.11.a. A
tree preservation plan shows how preservation and mitigation rem standards will
be met and how preserved trees will be protected during construction and other
potentially harmful activities.
b. The tree preservation plan shall be based on the tree survey.
c. If a tree survey shows that no desirable deciduous trees over 6" dbh or evergreen trees
greater than 12' in height on the development property or adjacent properties are near
the construction area, the City may waive the tree preservation plan requirement.
d. A tree plan shall include identify:
Attachment 2: Landscaping and Tree Preservation Standards - REVISED JUNE 21, 2010 Page 15
1) the basic use area
2) the disturbance area
3) tree size (dbh), species, condition, location, and root protection zone (5' out from the
dripline) for all deciduous trees over 6" dbh or evergreen trees greater than 12' tall
to be preserved, orr
the combined root protection zone of all stands of trees designated for preservation,
whichever is applicable.
4) The pion shall show ILocation and type of tree protection fence,
5) staging areas
6) temporary construction access routes, and
7) concrete washout areas.
soil disturbance.
8) Existing and proposed grading.
9) The plan shall show directional felling and trenching to separate root systems prior to
bulldozing trees or stumps if necessary to avoid damage to adjacent trees.
10) Coordination of utility planning so that utilities are installed in a manner that protects
trees intended to be saved.
e. Trees to be preserved shall be tagged in the field and keyed to the tree preservation plan.
The City may inspect the trees to verify compliance with the preservation plan at any
time during construction.
f. The tree preservation plan shall not conflict with natural resource management plan
required for environmentally sensitive areas. See Section 2, Subd. 6.E.2.b.
q. See the Stormwater Ordinance for other construction related requirements.
gh.The following shall occur prior to soil disturbance:
1) The tree preservation plan shall be approved by the City.
2) Fencing and all tree protection measures shall be installed and inspected by the City.
3) Erosion control measures shall be installed and inspected by the City.
4) All required financial securities have been submitted.
5) Any required development agreement has been approved.
14. Tree Preservation During Construction: Trees that are to be preserved must be
protected by the following methods unless otherwise approved by the City.
a.Tree protection fencing shall be installed and maintained 5' out from the identified drip
line of the trees (root protection zone) prior to soil disturbance. Fencing shall be a
minimum of 4' high and of a highly visible material, such as snow fence or polyethylene
laminar safety netting, and must be standing throughout the construction process. Cut
roots with clean, pruning cuts at the fence line prior to fence installation to avoid later
tearing of the roots. Signage shall should be installed to instruct workers to stay out of
the root protection zone.
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Attachment 2: Landscaping and Tree Preservation Standards - REVISED JUNE 21, 2010 Page 16
2)b.Areas where development must encroach upon the root protection zone must be
identified on the tree preservation plan in which case the fencing shall be installed at that
edge.
3)c. No actions that may harm the health of the tree, including, but not limited to
construction, traffic, compaction, storage of equipment or materials, including soil,
grading, or concrete washout areas may occur in the root protection zone.
4)d.Trees damaged by construction, or with more than thirty percent of the roots disturbed,
shall be counted as removed and mitigated at applicable rates.
e. Tree protection measures shall remain in place until all grading and construction activity
is terminated.
15. Certification of Compliance: Prior to the issuance of a certificate of occupancy, the
project developer, builder, or representative shall certify in writing to the city that all
elements of the tree preservation plan and landscaping plan were completed. These must be
confirmed by the city. However, the City may issue a certificate of occupancy prior to
completion of landscaping in the following situations:
a. If winter weather will prevent healthy planting practices, a security may be posted to
ensure the remaining planting is accomplished and all planting must be installed by the
first of June the following spring.
b. A certification of occupancy may be issued by the city on residential lots prior to lawn
seeding or sod provided an escrow security is submitted sufficient to ensure that the
work will be completed and the date of completion is specified.
16. Non - Compliance: If the City finds that the property is not in compliance with the approved
landscaping plan or tree preservation plan, it shall inform the property owner or if applicable,
the homeowners association, regarding the non - compliance and describe, in writing, the
steps needed to bring the property into compliance within a reasonable timeframe, not to
exceed sixty (60) calendar days.
17. Use of Performance Security: If after notification of non compliance, the property owner
eemplianee7 The City may require performance security to ensure conformance with the
requirements of this chapter.
a. The performance security shall extend for two (2) years from the date of planting. The
form of the security—cash, letter of credit, or other form —shall be determined by the
City.
b. If after notification of non - compliance the property owner or, if applicable, the
homeowners association fails to achieve the compliance within sixty (60) calendar days,
the City may exercise its authority to use the performance security to address compliance.
19
ATTACHMENT 3
CONCEPT PLAN
§ 1001.02 -020 GENERAL.
(1) , Prior to submittal of a preliminary
plat. applicants shall prepare and submit a concept plan_ depicting the subdivision proposal for
i,tivicw prior to filing a formal application. The concept plan shall be the product of a
collaborative design process. On the basis of the concept plan, the city shall informally advise
the subdivider as promptly as possible of the extent to which the proposed subdivision generally
conforms to the Comprehensive Plan, to the design standards of this chapter, and to other
applicable requirements, and shall discuss possible modifications.
(Ord. 04 -03, passed 2 -24 -2003)
(2) Purpose. The purpose of the Concept Plan is to provide an opportunity for the applicant
to submit a plan to the City showing the basic intent and the general nature of the entire
development before incurring the substantial cost of preparing a preliminary plat application.
This Concept Plan provides an opportunity for the proposal to be publicly considered at an early
stagy„ e.
1001.021 -§ 1001.024 reserved
& 1001.025 COLLABORATIVE DESIGN PROCESS
(1) City staff and the applicant shall meet to collaborate on the design of the project to
incorporate the goals and public values in the Comprehensive Plan. Specialists with expertise on
the issues and elements of the site shall be included in the process when deemed appropriate by
the City or the applicant. For projects that include land within Environmentally Sensitive Areas
as indicated on the City's landscape scale map, the discussions and meetings shall include
representatives of the Rice Creek Watershed District. The collaborative design process shall
include three steps: initial collaboration meeting. neighborhood meeting, and the collaborative
design meeting.
(2) Purpose. The purposes of the collaborative design process are:
(a) to incorporate into the design of the project . the goals and public values in the
Comprehensive Plan and other elements deemed to serve public purposes:
draft revisions to Chapter 1001 subdivisions draft date June 22, 2010Page 19 of 72
•
•
•
20
(b) to gather information and obtain guidance as to the general suitability of the
proposal for the area in which it is proposed and its conformity to city policies:
(c) to determine as early as possible if a Planned Unit Development is the most
appropriate and effective means of achieving the goals of the Comprehensive Plan and
complying with the City's site performance standards;
(d) to recognize the economic needs of the project and incorporate them into the
project design;
(e) to provide the opportunity to accomplish these purposes before incurring the
substantial public or private expense of preparing detailed plans and information required for
formal application and review of a preliminary plat.
(3) Initial Collaboration Meeting.
(a) Prior to preparing and submitting the concept plan under the requirements of this
chapter. an applicant for a project requiring a plat or Planned Unit Development (PUD) shall
meet with city staff to discuss the proposed development. the requirements for pursuing a
development application, the collaborative design process, and other issues relevant to the
project.
The City strongly recommends that the applicant refrain from preparing any site layout
plans prior the initial collaboration meeting in order to minimize the expense of plan changes.
(b) Inforrnationfor collaborative design process. The City staff shall assemble and
provide at this meeting environmental information it has that is relevant to the project.
(c) At the initial collaboration meeting, City staff. selected specialists. and the
applicant shall discuss elements to be considered and included in the project design when
applicable, including but not limited to:
site
District
1. City goals and public values described in Comprehensive Plan relevant to the
2. the City's Resource Management System Plan
3. Resource Management Plan and Rule RMP -3 of the Rice Creek Watershed
4. the collaborative design process
5. existing conditions and environmental features
6. preservation and /or enhancement of Environmentally Sensitive Areas (ESA)
7. site layout performance standards and other official controls
8. economic needs of the developer
9. potential for flexibility with a PUD
10. general location of streets and utilities
11. general location and extent of public and common open space
draft revisions to Chapter 1001 subdivisions draft date June 22, 2010Page 20 of 72
intensities
12. general location of land use types (residential and non - residential) and
13. architectural themes
14. a staging and time schedule of development
15. other special criteria relevant to development of the site
21
(4) Neighborhood meeting. After the initial collaboration meeting. the City and applicant
shall hold a neighborhood meeting for discussion and feedback prior to submitting a concept plan
application. The purpose of the neighborhood meeting is to discuss the relative issues listed in
paragraph (3) above and gather information and input from the community. This input and
information will be considered during the collaborative design process.
(5) Collaborative design meeting(s). After the neighborhood meeting. collaborative design
meeting(s) shall occur. The applicant. City staff and consultants. and appropriate specialists with
expertise on the issues and elements of the site shall meet to collaborate on designing the concept
plan. The applicant shall incorporate information and recommendations of the meeting(s) and
prepare the concept plan submittal information required in 1001.026.
(a) For projects that include land within Environmentally Sensitive Areas. this design
group shall include a representative of the Rice Creek Watershed District.
(b) The City may waive the need for the collaborative design meeting if. at the
discretion of the City, the site design issues are resolved to a sufficient degree that the concept
plan can be prepared based on information gathered by the initial collaboration meeting and the
neighborhood meeting.
draft revisions to Chapter 1001 subdivisions draft date June 22. 2010Page 21 of 72
• Zoning Ordinance: Section 2 ATTACHMENT 4
Subd. 10. PUD, Planned Unit Development. draft date 5/14/2010
•
•
F. Procedure for Processing a Planned Unit Development.
1. Stages of PUD. All PUD applications shall be subject to the information submittal
requirements and the review process described in Chapter 1001, even if the PUD
does not include a subdivision. As described in this chapter and in Chapter
1001, additional information may be required for a PUD compared to other
development applications. The information and review processing steps for a
PUD are intended to provide for an orderly development and progression of the
PUD project Plan, with the greatest expenditure of developmental funds being
made only after the City has had ample opportunity for informed decisions as to
the acceptability of the various segments of the whole as the plan affects the
public interest. The various steps and applications, outlined in detail in the
, _are:
a. Application Conference and Ncighborhood Meeting. Preliminary
discussions.
h General PUD Concept Plan Application. Collaborative design of and
consideration of the overall concept and plan, including the information
and process required in this chapter and the information and process
required for a concept plan in § 1001. This includes the information,
Zoning Ordinance Sec. 2, Subd. 10—PUD--Page 13 of 25
Zoning Ordinance: Section 2
Subd. 10. PUD, Planned Unit Development.
draft date 5/14/2010
meetings, and process for collaborative design described in § 1001.The
eb. Development Stage PUD Preliminary Plan Application. One or more
Consideration of plans and
documents establishing the uses, densities, architectural themes,
conditions, management structure and duties, staging, layout of streets,
utilities, open space, and building sites, and other elements of the project,
including information and process required in this chapter and the
information and process required for a preliminary plat in 5 1001.
4c. PUD Final Plan Application. The summary of the entire concept and each
•-.- ee - -- - -e - - e": - - .-e
planConsideration of the Final Plan, which is to serve as a complete, final,
detailed, and permanent public record of the PUD and the manner in
which it is to be developed. It shall incorporate all prior approved plans
and all approved modifications thereof resulting from the PUD process,
including the information and process required in this chapter and the
information and process required for a final plat in 5 1001.
Application Conference. Prior to filing of an application for PUD, the
Neighborhood Meeting. The City strongly recommends the property
23. The person applying for a planned unit development shall fill out and submit to
the Zoning Administrator an application form together with a fee as established
by the City_
Zoning Ordinance Sec. 2, Subd. 10— PUD —Page 14 of 25
•
•
•
• Zoning Ordinance: Section 2
Subd. 10. PUD, Planned Unit Development. draft date 5/14/2010
•
34. RA planned unit developmentlr, ng- _application shall be posted and
advertised as required by city code for a zoning amendment. in accordance with
Section 2, Subd. 1 of this Ordinance.
46.PA public hearings shall be held at-for the PUD Preliminary Plan development
stage
57. General Concept Plan Application.
a. Purpose. The purpose of the PUD Concept Plan is to provide an
opportunity for the applicant to submit a plan to the City showing the basic
intent and the general nature of the entire development before incurring
the substantial cost of preparing a preliminary plat application. This
Concept Plan provides an opportunity for the proposal to be publicly
considered at an early stage.
staff note: these "immediately significant elements" have been incorporated into
collaborative design discussion points at 1001.025
1) Overall Maximum PUD Density Range.
2) General Location of Major Streets and Pedestrian Ways.
3) General Location and Extent of Public and Common Open
Space.
/1)
General Location of Residential and Non Residential Land
- ' -- - --
Development
5) A Staging and Timc Schedule of Development.
staff note: submittal information to be listed in platting chapter, not PUD chapter
Zoning Ordinance Sec. 2, Subd. l0— PUD —Page 15 of 25
•
•
WS — Item 10
WORK SESSION STAFF REPORT
Work Session Item 10
Date: 6 July 2010
To: City Council
From: Dan Tesch, Director of Administration / Interim C.A.
Re: English as Official Language
Background
Several months ago, members of the council were asked to provide staff with their ideas
for potential cost saving measures. Council Member Roeser proposed the city adopt a
policy that English be the official language of the City. This policy would prevent the
city from printing materials and documents in multiple languages — thus saving in
printing and translation costs.
If the council would like to proceed with this initiative, the question becomes whether
this would be adopted in the form of a resolution or an ordinance.
A resolution would be a statement of policy outlining why English as the official
language has been adopted. This is a document that could be created by staff with a
quick review by our city attorney.
An ordinance would be amending the city code and would require that our attorney draft
the ordinance and that would be an expense not anticipated in the 2010 budget.
Our city attorney is on sabbatical until the end of July. The council should hear from your
attorney the pros and cons from a legal standpoint of adopting this policy — i.e. possible
future litigation and ramifications for federal grants.
Requested Council Direction
• If the council wishes to . proceed, would the policy be outlined in resolution form or
ordinance form.