HomeMy WebLinkAbout10-03-17 Meeting Packet
NOTICE OF MEETING
City Council Meeting
Tuesday, October 3, 2017 7:00 P.M.
City of Lake Elmo | 3800 Laverne Avenue North
AGENDA
A. Call to Order/Pledge of Allegiance
B. Approval of Agenda
C. Approval of Minutes
1. September 19, 2017
D. Public Comments/Inquires E. Presentations
2. Lake Elmo Lions Presentation of Donation for Lions Park - Resolution No 2017-102
F. Consent Agenda
3. Approve Payment of Disbursements and Payroll
4. Approve Landscaping at InWood Booster Station
5. Approve Revision to Wastewater Incentive Program to Apply to 201 Systems
6. Approve Tree City USA Submittal
G. Regular Agenda
7. Financial Management Plan for Utility Funds
8. Enterprise Resource Planning System
9. Lakewood Crossing 2nd Addition Developer Agreement – Resolution 2017-104
10. Zoning Text Amendment, a Zoning Map Amendment, and a request for CUP to allow a Commercial Boarding
Facility as an accessory use at 10880 Stillwater Blvd N – Ordinance 08-187, Resolution 2017-105
11. Front Yard Setback Variance from Rural Single Family Zoning District Standards – 8323 Deer Pond Tr. –
Resolution 2017-103
12. Snow Removal Policy and Winter Parking Ordinance - Ordinance 08-189, Resolution No 2017-XXX
H. Council Reports
I. Staff Reports and Announcements
J. Adjourn
Our Mission is to Provide Quality Public Services in a Fiscally Responsible
Manner While Preserving the City’s Open Space Character
CITY OF LAKE ELMO CITY COUNCIL MINUTES
SEPTEMBER 19, 2017
CALL TO ORDER/PLEDGE OF ALLEGIANCE
Mayor Pearson called the meeting to order at 7:02 pm. PRESENT: Mayor Mike Pearson and Councilmembers Justin Bloyer, Julie Fliflet, Jill Lundgren
and Christine Nelson Staff present: Administrator Handt, City Attorney Sonsalla, City Engineer Griffin, Planning Director Becker, Fire Chief Malmquist, and City Clerk Johnson. APPROVAL OF AGENDA
Item 17, “Approve Hire of Four Part Time Firefighters” and Item 18, “Approve Burn Agreement” were moved to the end of the Regular Agenda.
Councilmember Bloyer, seconded by Councilmember Nelson moved TO APPROVE THE
AGENDA AS AMENDED. Motion passed 5 – 0.
ACCEPT MINUTES Minutes of the September 5, 2017 Regular Meeting were accepted as presented.
PUBLIC COMMENTS/INQUIRIES Isaac Nightingale, Tapestry resident and Mounds Park Academy Jr. High Student Council
President, spoke in favor of mountain biking in Sunfish Lake Park.
PRESENTATIONS None CONSENT AGENDA
2. Approve Payment of Disbursements 3. Accept August 2017 Assessor’s Report 4. Accept August 2017 Building Department Report
5. Accept August 2017 Fire Department Report
6. Accept August 2017 Public Works Department Report 7. Approve Safe Assure Contract Renewal 8. Approve Private Development Security Reductions – Inwood PUD 1st & 2nd Additions;
LAKE ELMO CITY COUNCIL MINUTES
SEPTEMBER 19, 2017
Page 2 of 5
9. Approve Easton Village Park LOC Reduction
10. 2017 Seal Coat Project – Pay Request No. 2 (FINAL).
11. Old Village Ph3 Street & Utility Improvements – Approve Pay Request No. 3. 12. 2017 Street Improvements – Change Order No. 2. 13. 2017 Street Improvements – Approve Pay Request No. 3. 14. Inwood Water Tower (No. 4) – Approve Pay Request No. 12.
15. Street Maintenance and Capital Improvement Program – Authorize Geotechnical
Services. 16. Approve Danielson Settlement Agreement 17. Approve Hire of Four Part Time Firefighters 18. Approve Burn Agreement
19. Approve Hire of City Planner
20. Approve Change Order No. 1-Lions Park Improvement Project 21. Approve Appointment of Michelle Whitman to the Human Resources Committee Councilmember Bloyer, seconded by Mayor Pearson moved TO APPROVE THE CONSENT AGENDA AS PRESENTED. Motion passed 5 - 0.
ITEM 22: Royal Golf Development Agreement Planning Director Becker reviewed the proposed Development Agreement, noting conditions to be met by the developer. Jim Johnston spoke on behalf of the developer and asked for removal of
the condition of additional approval from Valley Branch Watershed District in order to speed up
the process. Administrator Handt and City Engineer Griffin commented on the need for Valley Branch approval. Councilmember Bloyer, seconded by Councilmember Nelson, moved TO ADOPT RESOLUTION 2017-096 APPROVING THE DEVELOPMENT AGREEMENT FOR ROYAL
GOLF CLUB AT LAKE ELMO FINAL PLAT. Motion passed 5 - 0. ITEM 23: Northport Development Agreement
Planning Director Becker reviewed the proposed Development Agreement, noting requirements
added to the standard agreement that are specific to the Northport development. Mayor Pearson, seconded by Councilmember Nelson, moved TO ADOPT RESOLUTION 2017-094 APPROVING THE DEVELOPERS AGREEMENT FOR NORTHPORT. Motion passed 4 – 0 – 1. (Fliflet – abstain)
ITEM 24: Hidden Meadows Denial of Final Plat Extension Planning Director Becker reviewed previous action taken by the City.
Councilmember Bloyer, seconded by Councilmember Lundgren, moved TO ADOPT
RESOLUTION 2017-094 DENYING A FINAL PLAT EXTENSION REQUEST FOR HIDDEN MEADOWS 2ND ADDITION TO APRIL 30, 2018. Motion passed 4 – 1. (Fliflet – nay)
LAKE ELMO CITY COUNCIL MINUTES
SEPTEMBER 19, 2017
Page 3 of 5
Councilmember Fliflet stated that denying the extension is not in the best interest of the City at
his stage in the process with this developer. ITEM 25: 2017 Street Improvements – Call for Hearing on Proposed Assessment
City Planner Griffin provided a brief update on the project, noting that the City is able to reduce
the initial assessment figures due to favorable construction costs. Councilmember Bloyer, seconded by Councilmember Nelson, moved TO APPROVE RESOLUTION 2017-100, A RESOLUTION DECLARING COSTS TO BE ASSESSED, ORDERING PREPARATION OF PROPOSED ASSESSMENT, AND CALLING FOR THE
HEARING ON THE PROPOSED ASSESSMENT FOR THE 2017 STREET
IMPROVEMENTS. Motion passed 5 – 0. ITEM 26: Inwood Trunk Watermain Improvements – Call for Hearing on Proposed Assessment
City Planner Griffin reviewed the project scope and the two properties meeting the threshold for assessment.
Councilmember Lundgren, seconded by Councilmember Bloyer, moved TO APPROVE
RESOLUTION NO. 2017-099; A RESOLUTION DECLARING COSTS TO BE ASSESSED,
ORDERING PREPARATION OF PROPOSED ASSESSMENT, AND CALLING FOR THE HEARING ON THE PROPOSED ASSESSMENT FOR THE INWOOD TRUNK WATERMAIN IMPROVEMENTS. Motion passed 5 – 0.
ITEM 27: Old Village Phase 2 (CSAH 17) Improvements – Call for Hearing on Proposed Assessment City Engineer Griffin reviewed final project costs and assessment methodology.
Councilmember Bloyer, seconded by Councilmember Lundgren, moved TO APPROVE
RESOLUTION NO. 2017-098; A RESOLUTION DECLARING COSTS TO BE ASSESSED, ORDERING PREPARATION OF PROPOSED ASSESSMENT, AND CALLING FOR THE HEARING ON THE PROPOSED ASSESSMENT FOR THE OLD VILLAGE PHASE 2 STREET, DRAINAGE, AND UTILITY IMPROVEMENTS. Motion passed 5 – 0.
ITEM 28: Preliminary 2018 General Fund and Annual Budget, Tax Levy and Public Hearing Date City Administrator Swanson provided background information on the budget process and noted
adjustments made to the initial draft budget at the direction of the City Council and also due to additional information received.
LAKE ELMO CITY COUNCIL MINUTES
SEPTEMBER 19, 2017
Page 4 of 5
Councilmember Bloyer, seconded by Councilmember Nelson, moved TO ADOPT RESOLUTION 2017-095 APPROVING 2018 PRELIMINARY GENERAL FUND BUDGET,
2018 PRELMINARY PROPERTY TAX LEVY, AND SETTING PUBLIC HEARING DATE
FOR THE 2018 BUDGET AND 2018 FINAL PROPERTY TAX LEVY FOR TUESDAY, DECEMBER 5, 2017 AT 7:00 P.M. Councilmember Fliflet, seconded by Councilmember Lundgren, moved TO ADD THE
FOLLOWING ITEMS BACK INTO THE 2018 BUDGET: $17,000 FOR CLEAN UP DAY,
INCREASE THE ENVIRONMENTAL COMMITTEE BUDGET TO $2,500 AND INCREASE THE BUDGET FOR THE NEWSLETTER TO $5,000. Motion failed 2 – 1 – 2. (Pearson, Nelson – nay, Fliflet – abstain)
Councilmember Fliflet, seconded by Councilmember Lundgren, moved TO MAINTAIN THE
SAME TAX LEVY IN 2018 AS THE CURRENT YEAR WITH NO INCREASE. Motion failed 2 – 3. (Pearson, Bloyer, Nelson – nay) Primary motion passed 3 – 2. (Fliflet, Lundgren – nay)
ITEM 17: Approve Hire of Four Part Time Firefighters Brief discussion held concerning availability of the applicants.
Councilmember Lundgren, seconded by Councilmember Nelson, moved TO APPROVE A
JOB OFFER TO PAUL JORGENSEN, JEREMY PENMAN, DOMINIC JARA AND LARRY CORNELL AS PART TIME FIREFIGHTERS. Motion passed 5 – 0. ITEM 18: Approve Burn Agreement
Fire Chief Malmquist provided a summary of the agreement and training to be held at the property
Mayor Pearson, seconded by Councilmember Bloyer, moved TO APPROVE THE TRAINING
BURN BUILDING USE AGREEMENT BETWEEN GREGORY MILLER, THE CITY OF
LAKE ELMO AND THE LAKE ELMO FIRE DEPARTMTNER FOR 8139 38TH ST. N., LAKE ELMO. Motion passed 5 – 0.
COUNCIL REPORTS
Mayor Pearson: No report.
Councilmember Nelson: Attended groundbreaking and board meeting for the Sally Manzara Nature Center.
Councilmember Lundgren: Received calls regarding development questions.
Councilmember Bloyer: No report.
Councilmember Fliflet: Thanked those who sent condolence messages for the loss in her family.
LAKE ELMO CITY COUNCIL MINUTES
SEPTEMBER 19, 2017
Page 5 of 5
STAFF REPORTS AND ANNOUNCEMENTS
Administrator Handt: Attended workshop on the St. Croix River regarding water quality and
will share resources from the workshop on the City’s website.
City Clerk Johnson: Working on transitioning tasks to the new Assistant City Administrator.
City Attorney Sonsalla: Working on Royal Golf documents and related negotiations, Northport development. Reported on the hearing in the Rosso case, expecting a decision in 90 days.
Planning Director Becker: New City Planner will start tomorrow.
City Engineer Griffin: No report.
Finance Director Swanson: Available for questions regarding the 2018 budget.
Meeting adjourned at 8:43 pm.
LAKE ELMO CITY COUNCIL ATTEST: ______________________________ Mike Pearson, Mayor _______________________________
Julie Johnson, City Clerk
STAFF REPORT
DATE: October 3, 2017
PRESENTATION
ITEM #:
AGENDA ITEM: Lions’ Donation TO: Mayor and City Council
SUBMITTED BY: Kristina Handt, City Administrator
BACKGROUND: State statute requires that cities accept donations via resolution. The Lake Elmo Lions will be making a donation of $20,000 to the City of Lake Elmo to be used for the dugouts and other improvements at Lions’
Park. ISSUE BEFORE COUNCIL: Should Council accept the donation of $20,000 from the Lake Elmo Lions? PROPOSAL: The Lake Elmo Lions will be presenting a check for $20,000 to the City Council at the meeting. Lions Club President Mike Mazzara has completed the donation form as well. Included in your packet is a resolution for the Council to officially accept the donation. FISCAL IMPACT: The dugouts and batting cages were removed from the bid award earlier this summer. These funds (along with volunteer hours) will be used to provide for those items. OPTIONS: 1) Approve Resolution No 2017-102 2) Amend and then Approve Resolution No 2017-102
3) Don not accept the donation from the Lake Elmo Lions RECOMMENDATION: Motion to approve Resolution No 2017-102
ATTACHMENTS:
• Resolution No 2017-102
• Monetary Donation Form
CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2017-102 A RESOLUTION ACCEPTING DONATED FUNDS FROM THE LAKE ELMO LIONS WHEREAS, Minnesota Statues Section 465.03 provides that donations to the City be accepted by resolution of the City Council; and
WHEREAS, the City is specifically authorized to accept gifts and bequests for the benefit of recreational services pursuant to Minnesota Statutes Section 471.17; and WHEREAS, the Lake Elmo Lions have proposed donating $20,000 to the City of Lake Elmo for improvements at Lions Park including dugouts and batting cages; and
WHEREAS, the City Council of the City of Lake Elmo agrees that said contribution would be of benefit to the citizens of Lake Elmo; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
Lake Elmo, Minnesota, does hereby acknowledges and agrees to accept said donation of $20,000 from the Lake Elmo Lions on behalf of the citizens of Lake Elmo. BE IT FURTHER RESOLVED that the City Council of the City of Lake Elmo designates the funds should be allocated only for improvements at Lions Park.
APPROVED by the Lake Elmo City Council on this 3rd day of October, 2017.
By: __________________________ Mike Pearson Mayor ATTEST:
________________________________ Julie Johnson City Clerk
STAFF REPORT
-- page 1 --
DATE: October 3, 2017
CONSENT
TO: Mayor and City Council
FROM: Amy La Belle, Accountant
AGENDA ITEM: Approve Disbursements in the amount of $255,380.05
REVIEWED BY: Kristina Handt, City Administrator
BACKGROUND INFORMATION/STAFF REPORT:
The City of Lake Elmo has the fiduciary responsibility to conduct normal business operations.
Below is a summary of current claims to be disbursed and paid in accordance with State law and
City policies and procedures.
FISCAL IMPACT: $255,380.05
Claim # Amount Description
ACH $ 15,332.41 Payroll Taxes to IRS & MN Dept. of Revenue 09/28/17
ACH $ 8,023.04 Payroll Retirement to PERA 09/28/17
ACH $ 700.00 Payroll Retirement to MDCP 09/28/17
n/a $ 0.00 Payroll Checks (none)
Direct Deposits $ 37,212.09 Payroll Deposits 09/28/17
46469-46525 $ 194,112.51 Accounts Payable 10/03/17
$ 0.00 Accounts Payable (Library Checks) NONE
TOTAL $ 255,380.05
RECOMMENDATION:
If removed from the consent agenda, the recommended motion is as follows:
“Motion to approve the aforementioned disbursements in the amount of $255,380.05.”
ATTACHMENTS:
1. Accounts Payable – check register
STAFF REPORT
DATE: 10/3/2017
CONSENT
TO: City Council
FROM: Rob Weldon, Public Works Director
AGENDA ITEM: Booster Station Tree Planting
REVIEWED BY: Chad Isakson, Assistant City Engineer
BACKGROUND: In 2016 the City of Lake Elmo began construction of a water booster station to supply water the Interstate 94 Corridor and discontinue purchasing water from the City of Oakdale for this portion of Lake Elmo. When land was acquired for the booster station along Inwood Ave. there was a request from the land seller to provide screening (plantings) on the south and west side of the newly constructed building as a way mask the Booster Station from view in these directions.
ISSUE BEFORE COUNCIL: Does the City Council support tree planting on the south and west side of the Inwood Ave. Booster Station? PROPOSAL DETAILS/ANALYSIS: Staff is proposing planting 11 Spruce and 3 Dog Wood trees on
the south and west property line to provide screening of the booster station in those directions. This will complete the landscaping portion of the booster station, which was not included in the initial construction contract.
FISCAL IMPACT: Cost of the plantings shall not exceed $5,200 and will be funded by through the Water Utility Budget.
OPTIONS:
• Approve tree planting at Inwood Ave Booster Station
• Deny tree planting at Inwood Ave. Booster Station
• Table for further discussion RECOMMENDATION: If removed from consent agenda…..“Motion to approve tree planting at Inwood Ave. Booster Station from Abrahamson Nursery for an amount not to exceed $5,200” ATTACHMENTS:
• Abrahamson Nursery Quote
• BDT Outdoor Solutions Quote
Name:CITY OF LAKE ELMO Contact:
Street:2576 INWOOD AVE. Cell Phone:
City, State, Zip:LAKE ELMO, MN Email Address:
Date:9/19/2017 Designer:
$5,110.40 WITH CASH/CHECK (ADD 3% IF PAYING WITH CREDIT CARD)
QTY. SIZE
5 6'
6 6'
3 #5
25 3 CF
MATERIALS, TAX, AND LABOR IF PAYING BY CHECK/CASH: $5,110.40
Client Signature: ___________________________________________ Designer Signature: _________________________________
Date Accepted: ____________________________________________
PLEASE NOTE:
A)All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any alteration from specifications
below involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate.B)Any person or company supplying
labor or materials for this improvement to your property may file a lien against your property if that person or company is not paid for the contributions.C)Under
Minnesota law, you have the right to pay persons who supplied labor or materials for this improvement directly and deduct this amount from our contract price, or
withhold the amounts due them from us until 120 days after completion of the improvement unless we give you a lien waiver signed by persons who supplied any labor
or materials for the improvement and who gave you timely notice.D)Payment to be made in full upon completion of work. Plant guarantee is void if paymeny is not
made in full within 30 days of completion of work.
ACCEPTANCE OF PROPOSAL:The above prices, specifications and conditions are satisfactory and are hereby accepted. You are authorized
to do the work as specified.
GRAY DOGWOOD
BAGS CYPRESS MULCH
*2 BAGS MULCH PER EVERGREEN TREE, 1 BAG MULCH PER DOGWOOD
We Propose hereby to furnish material and labor - complete in accordance with specifications below, for the sum of:
DESCRIPTION
NORWAY SPRUCE
BLACK HILLS SPRUCE
ROB WELDON
747-3941
RWELDON@LAKEELMO.ORG
JAKE THOMPSON
638 Price Ave Maplewood MN, 55117
Customer Quote
Rob Weldon 2576 Inwood Ave N
City Of Lake Elmo Lake Elmo
Work Description
Installation of:
11 Black Hills Spruce tress, 6' B&B
3 Gray Dogwoods #5 pots
Hardwood mulch rings around all plants.
Sub Total $7760.00
Tax $552.90
Total $8,312.90
BDI Outdoor Solutions is not responsible for any irrigation damage, repairs or modifications. Any irrigation parts or equipment
in conflict with project are shall be exposed and or/moved outside the work area, with all y
aside whenever possible. All necessary irrigation repairs and/or modifications to be accomplished by the original system installer
and/or current service provider. If no existing irrigation system is in place and is later desired, it wold be most economical to have
sleeves installed at this time.
By signing below, you understand and agree that BDI is not responsible for any irrigation damage, repairs or modifications.
signature x date x
Unforeseen Circumstances:
Occasionally, unforeseen circumstances may arise on a project that were not accounted for in the estimate of a project. These
include, but are not limited to; poor soil/and or drainage conditions, under ground obsticals (i.e.underground pipes/wires,
buried stumps, etc.), necessary add-ons, or acts of God. These unforeseen circumstances may result in additional costs to the
project. BDI is not responsible for these additional costs. Should an unforeseen circumstance arise, the sales person will alert
the customer of the situation, provide an estimate of the additional work and cost of the work, and obtain written permission or
an electronic authorization prior to proceeding with the additional work.
Location of Utilities
BDI will contact Gopher State One to locate all public utilities prior to project start (includes all public utilities marked by gopher
one) BDI is not responsible for damage to any private utilities Customers are responsible for marking all private utilities on the
property that may be inside the project area such as; gas lines, water lines, irrigation lines, dog fences, private electric lines, low
voltage lighting and any other not mentioned here.
We Accept
STAFF REPORT
DATE: October 3, 2017
CONSENT
AGENDA ITEM: Wastewater Incentive Program TO: Mayor and Council SUBMITTED BY: Kristina Handt, City Administrator
BACKGROUND: In June of last year, the Finance Committee recommended and the Council adopted a Wastewater Incentive
Program for properties with an existing private on-site sewage treatment system. To encourage people to connect to the municipal sewer sooner rather than later and potentially eliminate environmental concerns related to some private systems, an incentive of 50% or ($2,000) of the SAC and connection fee is available to those connecting to municipal sewer within one year of the date the connection is available. City ordinance and Met Council rules otherwise allow properties two years to connect. At the time, the finance committee said they would come back and look at options for those on the city owned community septic systems (201s). The City Attorney offered the following opinion at the time. Water and sewer fees are guided by Minnesota Statutes Section 444.075, which provides broad authority to cities to charge “just and equitable” fees for the use and availability of water and sewer service. There is case law that discusses
the broad legislative authority of cities to create and set these fees. Based on that, the City Council could consider and adopt a formal policy or program which lays out how credits will be awarded, who is eligible, etc.
The Mayor asked that we look at extending the incentive to city owned community septic systems earlier this year. The Finance Committee reviewed this at their May meeting but weren’t inclined to recommend
the extension at that time due to the fact that these properties already are exempt from paying the Met Council SAC and the committee was waiting for an updated pro forma. At the September work session, staff was directed to move forward with amending the program to include those on city owned community septic systems. The pro forma was delivered to the finance committee after this council work session and was presented earlier tonight to the Council.
ISSUE BEFORE COMMITTEE: Should the Council extend the Wastewater Incentive Program to 201 users?
PROPOSAL DETAILS/ANALYSIS: Included in your packet is a resolution to extend the wastewater incentive program to those on the city owned 201 community septic systems. The resolution would make the incentive retroactive to Old Village Phase 1 properties. FISCAL IMPACT: An estimated 50 residential equivalent credits (RECs) would be impacted by this. So the impact to the sewer fund would be a loss of future revenue of $100,000. OPTIONS: 1) Approve Resolution 2017-107
2) Amend and then Approve Resolution 2017-107
3) Do not extend the incentive to 201 users
RECOMMENDATION:
Motion to approve Resolution No 2017-107
ATTACHMENTS:
• Resolution No 2017-107
CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2017-107 A RESOLUTION EXTENDING THE WASTEWATER INCENTIVE TO 201 USERS WHEREAS, the City Council approved a Wastewater Incentive Program on June 21, 2016; and
WHEREAS, the program provides a 50% reduction on the Sewer Availability Charge (SAC) and sewer connection charge if those with an existing on-site sewage treatment system connect to municipal sewer within one year from the date the main is available to their property; and
WHEREAS, the incentive was created to address potential environmental concerns; and WHEREAS, the City owned 201 community septic systems also present potential environmental concerns as replacement land is not readily available;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lake Elmo, Minnesota, does hereby extend the Wastewater Incentive Program to those properties served by City owned 201 community septic systems who connect to municipal sewer within one year of its availability to their property.
BE IT FURTHER RESOLVED that this extension of the program is retroactive to include those properties in the Old Village Phase 1 project. APPROVED by the Lake Elmo City Council on this 3rd day of October, 2017. By: __________________________
Mike Pearson
Mayor ATTEST:
________________________________ Julie Johnson City Clerk
STAFF REPORT
DATE: 10/3/2017
CONSENT
ITEM:
TO: City Council
FROM: Rob Weldon, Public Works Director
AGENDA ITEM: Tree City USA Application
REVIEWED BY: Kristina Handt, City Administrator
BACKGROUND: Tree City USA is a national recognition program sponsored by the National Arbor Day Foundation. By meeting four standards, an incorporated municipality of any size becomes eligible to qualify. Until 2013 the City of Lake Elmo participated in the program and is now required to follow the application process to regain its status as a Tree City. ISSUE BEFORE COUNCIL: Does the City Council feel that the city should again gain its status as a Tree City? PROPOSAL DETAILS/ANALYSIS: In order to become a Tree City there are several steps that must be achieved by the city. Those are; establish a tree board or department, create a tree care ordinance, establish
an annual budget of at least $2 per capita, and adopt an annual Arbor Day Proclamation and Observance. In addition to the above steps, the application for Tree City needs to be reviewed by a state forester.
Conformation has been received from the State Forester that trees supplied and planted by developers will count toward the $2 per capita amount as well as volunteer hours at any city sponsored tree event.
This topic was unanimously recommended at the September 25, 2017 Environmental Committee for City Council consideration. FISCAL IMPACT: None. All new trees that are planted in ROW’s through developer agreements can be used to offset the $2 per capita amount. In 2017 roughly 1,093 trees were planted in city ROW’s through developer agreements. OPTIONS: - Submit application for Tree City USA - Do not submit application for Tree City USA
- Table for further discussion
RECOMMENDATION: If removed from consent….. “Motion to approve submission of Tree City USA application to National
Arbor Day Foundation”
STAFF REPORT
DATE: October 3, 2017
REGULAR
ITEM #7
NO ACTION REQUIRED
TO: City Council FROM: Brian A. Swanson – Finance Director AGENDA ITEM: Draft Financial Management Plan for Utility Funds
REVIEWED BY: Kristina Handt – City Administrator
BACKGROUND: The City retained the services of Northland Securities, Inc. to prepare an updated draft Financial Management Plan for Water, Sanitary Sewer and Storm Water Funds. The last iteration was presented to
the City Council on October 18, 2016, which included operational costs developed by TKDA that Northland Securities Inc. incorporated into the Financial Management Plan, presented by Ms. Tammy Omdal. The update presented to the City Council this evening builds upon those premises, and incorporates updated
information from the City’s utility billing system, 2016 Comprehensive Annual Financial Report (CAFR), 2017 Budget, proposed 2018-2022 Capital Improvement Plan, and updated utility connection estimates.
On September 21, 2017, Ms. Omdal of Northland Securities, Inc. presented the draft report to the Finance Committee, with both she and City staff available to answer any questions. Based on that meeting, an updated draft Financial Management Plan for Water, Sanitary Sewer and Storm Water Funds is being presented by Ms. Omdal to the City Council this evening for review and comment.
QUESTIONS BEFORE THE CITY COUNCIL:
1) Does the City Council have any questions regarding the process and information?2) Would the City Council like to have any adjustments made to the report?
DISCUSSION: Ms. Omdal will present information contained in the report, with both she and staff will be available to answer questions from the City Council.
FISCAL IMPACT: Timely and accurate information pertaining the Water, Sanitary Sewer and Storm Sewer Funds will allow the City Council to make informed decisions regarding utility rates, and the long-term sustainability impacts
of those rate adjustments.
RECOMMENDATION: None this evening, as this report is an information sharing for both the City Council and community.
ATTACHMENTS: 1)Draft Financial Management Plan for Water, Sanitary Sewer and Storm Water Funds
Northland Securities, Inc.45 South 7th Street, Suite 2000Minneapolis, MN 55402(800) 851-2920Member NASD and SIPC
Letter ofTransmittal
Executive Summary 1
Organization of the Report....................................................................................................................1
Study Approach..........................................................................................................................................1
Conclusions and Recommendations..................................................................................................2
Table A - Growth in Residential Equivalent Units.....................................................................3
Table B - Annual Estimated Rate Increases.................................................................................3
Table B-1 - Utility Rates......................................................................................................................3
Table C-1 -Water Fund Operating Expenses and Unrestricted Cash................................4
Table C-2 - Sanitary Sewer Fund Operating Expenses and Unrestricted Cash..............5
Chart 1 -Year-end Cash Balances ..................................................................................................6
Background 7
Water..............................................................................................................................................................7
Sanitary Sewer............................................................................................................................................7
Storm Sewer.................................................................................................................................................7
Capital Improvement Plan 8
Capital Projects...........................................................................................................................................8
Source of Funding for Capital Projects...............................................................................................8
Debt Service.................................................................................................................................................8
Table D-1 - Capital Improvement PlanWater.................................................................................10
Table D-2 - Capital Improvement Plan Sanitary Sewer ..............................................................11
Table D-3 - Capital Improvement Plan StormWater...................................................................12
Chart 2 - Estimated Debt Outstanding atYear End.....................................................................13
Chart 3 - Estimated Annual Debt Service........................................................................................14
Utility Rates 15
Key Factors.................................................................................................................................................15
Annual Operating Expenditures.........................................................................................................15
Metropolitan Council Environmental Services..............................................................................15
Annual Capital Expenditures...............................................................................................................16
Debt Service...............................................................................................................................................16
Growth in Customers..............................................................................................................................16
Available Other Revenue Sources......................................................................................................16
Historical Utility Rates............................................................................................................................17
Future Utility Rates..................................................................................................................................17
EstimatedVolumes ofWater Sold and Sanitary Sewer Billed..................................................17
Table E - Growth Projections................................................................................................................18
Chart 4 - Sanitary Sewer REU Platted and Connected byYear ................................................19
Chart 5 -Water REU Planned and Connected byYear................................................................19
Table F -Water Fund - Fees and Charges and Customer Data.................................................20
Table G - Sanitary Sewer Fund - Fees and Charges and Customer Data..............................21
Table H - StormWater Fund - Fees and Charges and Customer Data...................................22
Chart 6 - EstimatedVolumes ofWater and Sanitary Sewer......................................................23
Financial Plans 24
Key Assumptions......................................................................................................................................24
Water Fund.................................................................................................................................................25
Table I-1 - Pro Forma.......................................................................................................................26
Table I-2 - Cash Balance.................................................................................................................27
Table I-3 - Operating and Other Expenses.............................................................................28
Chart 7 -Year End Cash Balances...............................................................................................29
Chart 8 - Source and Use of Funds............................................................................................29
Sanitary Sewer Fund..............................................................................................................................30
Table J-1 - Pro Forma......................................................................................................................31
Table J-2 - Cash Balance................................................................................................................32
Table J-3 - Operating and Other Expenses.............................................................................33
Chart 9 -Year End Cash Balances...............................................................................................34
Chart 10 - Source and Use of Funds..........................................................................................34
StormWater Fund....................................................................................................................................35
Table K-1 - Pro Forma.....................................................................................................................36
Table K-2 - Cash Balance...............................................................................................................37
Table K-3 - Operating and Other Expenses............................................................................38
Chart 11 -Year End Cash Balances............................................................................................39
Chart 12 - Source and Use of Funds..........................................................................................39
Appendix 40
Appendix A - Example Quarterly Utility Fees Payable by PropertyTypes...........................40
Appendix B - Chart 13 - Combined Utility Funds Restricted Cash and Debt......................41
This report was prepared by Northland Public Finance, a
division of Northland Securities, Inc., for the purpose of
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mo’s enterprise funds, including theWater Fund, the Sani-
tary Sewer Fund, and the StormWater Fund to determine
the appropriate fees and charges to fund the systems.
The process involved the projection of revenues and ex-
pendituresandincorporationoftheCity’splansforcapital
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BOEQMBOTGPSmOBODJOH
JOUPUIFmOBODJBM
projections along with estimated growth in customers.
Recommendationsincludedinthereportarebasedonin-
GPSNBUJPOQSPWJEFEUP/PSUIMBOEGSPN$JUZTUBõBOEPUIFS
City consultants and certain assumptions as prepared by
Northland and detailed in the report.
To the extent the assumptions in the report change in
the months and years ahead, which they will, the City will
OFFEUPBEKVTUJUTmOBODJBMQMBOTBDDPSEJOHMZ
#FGPSFPõFSJOHDPODMVTJPOTBOESFDPNNFOEBUJPOTGSPN
thestudy,anexplanationoftheorganizationofthereport
BOEUIFTUVEZBQQSPBDIJTPõFSFE
Organization of Report
This report is organized into six sections:
1. Executive Summary provides information on the or-
ganization of the report, study approach, and conclu-
sions and recommendations.
2. Background discusses the historical context, includ-
ing growth and development of the community, and
performance of the utilities.
3. Capital Improvement Plan provides information on
the plans for infrastructure improvements for the
utilities. This includes estimates on project costs and
sources of funds to pay for the improvements. Infor-
mation on debt service is also included.
4. Utility Rates provides current, and future estimated
utility rates that will be necessary to maintain a posi-
UJWFmOBODJBMDPOEJUJPOGPSUIFVUJMJUZGVOET*OGPSNB
tion is provided in the Appendix for impact of rates
changes on customers.
5. Financial Plans are provided for the Water Fund, Sani-
UBSZ4FXFS'VOE
BOE4UPSN8BUFS'VOE5IFmOBO
cial plans provide both historical, current, and future
sources and uses of funds and balance sheet infor-
mation. Financial plans take into account capital im-
provement plans, debt service, and proposed rates.
6. Appendix provides supplemental information to the
report.
Study Approach
The following steps were taken as part of the study:
• City provided information on the following:
-historical spending and revenues, and future capi-
tal improvement plans;
-estimated growth in customer units from residen-
tial and commercial development; and
QSFMJNJOBSZmOBODJBMEBUBBOEUIF$JUZT
Comprehensive Annual Financial Reports as of De-
cember 31, 2016.
• Information provided by the City was organized, ana-
MZ[FE
BOEVTFEUPTVQQPSUUIFEFWFMPQNFOUPGmOBO
DJBMQMBOT0ODFUIFQSFMJNJOBSZmOBODJBMQMBOTXFSF
EFWFMPQFEUIFOEJõFSFOUTDFOBSJPTXFSFDPOTJEFSFE
BOEBOBMZ[FEXJUI$JUZTUBõUPEFUFSNJOFJNQBDUPO
utility rates.
•$JUZTUBõPõFSFEJOQVUBOEGFFECBDLPOUIFBTTVNQ
tions and desired outcomes.
• A draft of the report was prepared.
*UJTJNQPSUBOUUPOPUFBTQFDUTPGmOBODJBMQFSGPSNBODF
not reviewed as part of this study:
•5IFWBMJEJUZPGUIFBTTVNQUJPOTBOEmHVSFTQSPWJEFE
by the City on future estimated growth was not re-
viewed.
• Analysis of the basis for the City’s determination of
current utility fees and charges was not reviewed.
•5IFmOBODJBMJNQBDUPGQPUFOUJBMDIBOHFTUPUIFFYJTU
ing tier structure for charging for water and sanitary
sewer services was not reviewed.
• NorthlanddidnotreviewanyCitypreparedproforma
as part of the study and we are not aware of how this
report may compare to any prior or current City pro
forma.
• The scope of the study did not include a review and
comparison of the City’s utility fees and charges to
other cities.
• TheCityisnotabletoprovidevolumedatabytier. Be-
cause historical volume data is not available, the re-
port makes certain assumptions for future volume of
water and sanitary sewer volume billed by tier and in
total. Changes to the assumption for average volume
QFSDVTUPNFSXJMMJNQBDUUIFmOBODJBMSFTVMUTJODMVEFE
in the report.
Conclusions and Recommendations
The following conclusions and recommendations are of-
fered as a result of the study:
To meet service demands from growth in customers,
the City is planning for capital improvement projects.
It needs to be emphasized that the scope, timing, and
cost of the capital improvement projects included in
this report are preliminary estimates. The City provid-
ed a projection of improvement projects with gross
estimatesforprojectcoststoprovideareasonableba-
sis for the pro forma analysis included in the report.
TheCitywillneedtocontinuetoreviewandrevisethe
capital improvement plans.
Timing for capital projects will be driven by develop-
ment. The planned improvements that are currently
included in the capital improvement plan are antici-
patedtobepaidthroughacombinationofissuanceof
debt, special assessments, grants, and cash.
Inadditiontotheimpactoffuturegrowthonthecapi-
tal improvement plan, the actual timing for the build
out of already approved housing development and
DPNNFSDJBMBSFBTXJMMIBWFBTJHOJmDBOUJNQBDUPOUIF
estimates for future revenues.
TableA on page 3 provides a summary of the total esti-
mated growth for residential equivalent units (platted
and connected).The growth estimates were prepared
CZ$JUZTUBõTableEonpage18providesthedetailedin-
formation on the total estimated growth summarized
in Table A. The estimates for growth in customers has
an impact on the establishment of future utility rates
and the resulting revenue and year-end cash projec-
tions for the utility funds. The City should continue
to carefully monitor its estimates for future growth in
customers against actual development.
/PUFUP5BCMF"5IFSFJTBEJõFSFODFCFUXFFO4FXFSBOE8BUFSVOJUT
showninTableAbecausesomecustomerswillconnecttoeithermunic-
ipal water or sanitary sewer, but not both.The sanitary sewer improve-
NFOUTDPNJOHUPUIF0ME7JMMBHFBMTPBDDPVOUTGPSUIFEJõFSFODF
The report assumes annual increases in the fees and
chargesforutilityservicesbeginninginyear2018.The
increasesareneededtoensuretheCityisabletomain-
UBJOTVöDJFOUDBTIJOUIFGVOETPWFSUIFMPOHUFSN
There is no change estimated in the fees charged for
development (connectionandavailably charges) only
to the base and usage fees for service.TableB provides
information on the annual estimated rate increases.
Table B-1 provides a summary of the utility rates as
included in the report for the next ten years. Actual
mOBODJBMSFTVMUTBOEHSPXUIJODVTUPNFSTXJMMJNQBDU
Note toTable B-1: Table B-1 does not include all of the tier rates. SeeTables F-H
for more information.
year-end unrestricted cash balance and operating ex-
penses (not including depreciation) and unrestricted
cash as a percentage of operating expenses for the
Water Fund.TableC-2 on page 5 provides the same in-
formationfor the Sanitary Sewer Fund.Chart1 on page
6, providesa summary of thetotalestimated year end
cash balances by fund. It is estimated that in future
years the funds will begin to draw on overall cash bal-
ances to cover capital and debt service. The City may
need to consider rate increases beyond what is pres-
FOUMZJODMVEFEJOUIJTSFQPSU"DUVBMmOBODJBMSFTVMUT
will need to be monitored to determine what may be
necessary in the future years.
the actual utility rate increases that may be needed.
TheCityshouldestablishannualuserratesconcurrent
with the development of the following year’s budget.
It is important to maintain a long term, forward look-
ing view for the ongoing management of the utility
funds to avoid potential adjustments to utility rates
CBTFEPOQSJPSZFBSmOBODJBMQFSGPSNBODFBMPOFXJUI
PVUUBLJOHJOUPBDDPVOUGVUVSFmOBODJBMQSPKFDUJPOT
BOEQPUFOUJBMDIBMMFOHFT'VUVSFmOBODJBMDIBMMFOHFT
NBZDPNFGSPNUIFEJõFSFODFCFUXFFOFTUJNBUFE
andactualgrowthincustomers,unanticipatedcapital
funding pressures, and other unanticipated expense
or revenue shortfalls.
There are no changes recommended at this time to
the City’s rate structure (i.e., volume tiers). As the City
gains more experience operating the expanded utili-
UJFTBOENPSFmOBODJBMIJTUPSZCFDPNFTBWBJMBCMF
UIF
City should evaluate whether the current rate struc-
ture is continuing to meet the City’s objectives.
Theutilityratesincludedinthisreport,combinedwith
the estimated volumes for water and sanitary sewer
plus the estimated revenue to be collected from de-
velopment charges, will provide cash needed to op-
erate the utilities, maintain capital assets, and to pay
debt service. The Financial Plan Section of this report
provides a break-down of cash balances for each of
the utility funds based on the following: 1) restricted
cash for planned capital; 2) restricted cash for debt
service/calling of bonds; and 3) unrestricted cash
available equivalent to 35-50% of anticipated operat-
ing expenses.
TableC-1 provides a summary of the estimated annual
Note to Table C-11: Amounts shown are estimates based on the assumptions
and information includedin the report.
Note to Table C-2: Amounts shown are estimates based on the assumptions
and information includedin the report.
Chart1 shows that cash bal-
ances in the utility funds are
estimated to remain stable,
with growth, over the next
several years.
The cash balances will begin to
decline as planned, as revenue
collected from development
(trunk line availability and con-
nections charges) is used to
pay down debt outstanding.
The increase in cash from 2016
actual to 2017 is due to the col-
lection of the approximate $3.4
million receivable from other
governments (state funding) in
2017 for capital improvements
made in 2016.
The City of Lake Elmo is located on the eastern edge of
the Twin Cities metropolitan area. The City’s 2030 Com-
prehensive Plan forecasts and provides for approximately
eighttimesthegrowthinhouseholdsandpopulationdur-
ing the 2000-2030 planning period than was experienced
during the 1980-2000 period.
The City reports an estimated 2010 population of 8,069
and 2,774 households (2010 Census). Population is esti-
mated to increase to 10,500 by 2020 and households to
3,800 (
). The land area for the City en-
compasses approximately 15,250 acres.
The City’s 2030 Comprehensive Plan provides guidance
on the City’s plans for managing future demand for utility
infrastructure. The City is preparing to update to its Com-
prehensivePlan, theupdatedPlan willlikely haveimplica-
tions for the assumptions included in this report.
Water Utility
Lake Elmo owns, operates and maintains a municipal wa-
ter supply and distribution system. The City has a goal to
serve existing population desiring public water supply
while preparing the system to allow people to connect
as development occurs or existing areas request service.
This policy guides the City’s capital improvement plan-
OJOHBOEUIFOFFEUPNBJOUBJOBnFYJCMFBOESFTQPOTJWF
water system. Capital planning includes projects to cor-
SFDUFYJTUJOHEFmDJFODJFTBOEUPFYQBOEUIFTZTUFN
The City uses an enterprise fund to account for its water
operations. The net position in the Water Fund totaled
$13,394,649 and cash balance $135,048 as of December
31, 2016.
SanitarySewer Utility
PropertyownersintheCityareservedbyindividualsewer
systems or in limited areas by municipal sewer. Capital
planswillprovideforanincreaseinthenumberofproper-
ties to be served by municipal sewer and connection to
the RegionalSewerSystem. The Metropolitan Council En-
vironmentalServices (MCES)has extendedregionalsewer
service to serve a greater area of the City.
The City uses an enterprise fund to account for its sewer
operations. The net position in the Sewer Fund totaled
$5,570,928 and cash balance $2,606,515 as of December
31, 2016.
StormWater Utility
TheCityoperatesastormwaterutility. Thesystemofcon-
veyancesisownedandoperatedbytheCityanddesigned
for collecting or conveying storm water.The City collects
anannualfeefrompropertyownersthat isusedtopayfor
the cost of constructing and maintaining the system.
The City uses an enterprise fund to account for its storm
water operations. The net position in the Storm Water
Fund totaled $1,414,436 and cash balance $1,945,366 as
of December 31, 2016.
Thisreportincludesacapitalimprovementplan(the“CIP”)
thatincludescapitalprojectsfundedfromutilityrevenues
and accounted for the in the utility funds.TablesD-1through
D-3 beginningonpage10,providedetailsonplannedcap-
ital spending for each of the utilities.
It is important to emphasize that the CIP included in this
SFQPSUTIPVMECFDPOTJEFSFEBXPSLJOHESBGU5IFTQFDJmD
costestimatesincludedforeachoftheprojectsprovidesa
reasonablebasisfortheproformaanalysisincludedinthis
SFQPSU#VUJUJTJNQPSUBOUUPSFDPHOJ[FUIBUUIFTQFDJmD
projectsthatmayactuallybeauthorizedinthefuture,and
the actual costs, may vary greatly fromwhat is included in
this report.
Capital Projects
The projects included in the CIP include projects to ex-
QBOEUIFDBQBDJUZBOEDPSSFDUEFmDJFODJFTPGUIFXBUFS
and sanitary sewer systems.The City is a developing com-
munity with utility expansion needs. Planned projects in-
clude expansion of the City’s water supply capacity and
distribution system. Sanitary sewer services have been
expandedthroughtheconstructionofconnections tothe
Regional Sewer System.
As a developing community, the City’s capital improve-
ment plans focus on expansion and does not presently
include any material capital spending for maintenance of
existingsystems.Thiswillneedfutureconsiderationbythe
City as the community develops and infrastructure ages
and requires major maintenance and/or replacement.
StormWaterProjects
For the storm water system, it should be noted that the
CIPincludesprojects for Phases2 and3 forregionaldrain-
BHFJNQSPWFNFOUT5IF$JUZ&OHJOFFSIBTJEFOUJmFEUIF
following issues for the storm water utility that are antici-
QBUFEUPCFBEESFTTFEJOUIFOFYUmWFUPUFOZFBST
• Phase 2 Downtown Regional Drainage project
consisting of land acquisition (Shiltgen property
west of Lake Elmo Avenue and north of CSAH 14),
a storm water pond, and storm water diversion
QJQJOHUP4VOmTI-BLF
• Phase 3 Downtown Regional Drainage project
consisting of storm sewer piping south of CSAH
14nearHagbergs.Thepondingmaybedeveloper
paid, but for the purposes of this report it is as-
sumed to be paid from utility revenue.
• KraemerLakeFloodplainstudywillbeneededbe-
foredevelopmentcanoccurinI-94corridor,Phase
3 area (between Keats-Lake Elmo Avenue). The
City anticipates grant funds to pay for the study.
Source of Funding for Capital Projects
The source of funding for the planned capital projects
includes one of the following sources or a combination
thereof: fund balance (cash); bond proceeds; special as-
sessments; and/or grants.
Debt Service
Planned funding for utility infrastructure projects antici-
pates the issuance of debt to undertake certain planned
improvements and to manage annual fee increases.
TheprojectionsassumethattheCitywillissuegeneralob-
ligation bonds secured by revenues from the utility funds
to pay principal and interest. This approach provides the
lowest cost of debt. These bonds will not count against
the City’s debt limit. Debt management is an important
factor in ongoing capital improvements planning.
The estimates for debt service are based on bonds to
be paid over 15 years and level annual debt service. For
bonds supported by special assessments, the special as-
sessments are estimated to be payable over 20 years.
Theestimatedinterestrates usedto calculateannualdebt
service are generally based on today’s current rate envi-
SPONFOU5IFBDUVBMJOUFSFTUSBUFTXJMMEFQFOEPOmOBM
structure and market conditions at time of issuance.
Charts2 and 3 on pages 13 and 14, provide information on
the City’s existing and estimated future debt obligations
supportedbytheutilityfunds.Chart2 includesinformation
on estimated debt (bonds) outstanding as of year-end for
thecombinedutilityfunds.Chart3 includesinformationon
estimatedannualdebtservice(principalandinterest)pay-
ments for the combined utility funds.
The annual debt outstanding
as of year-end shown in Chart
2 includes general obliga-
tion revenue bonds secured
by water, sanitary sewer, and
storm water revenues. The
chart includes both existing
debt outstanding (as of Oc-
tober 2, 2017) and estimated
debt anticipated to be issued
in the future and paid from
utility revenues. Future bond
issuance estimates are based
on the City’s capital improve-
ment plan.
Chart2 includes debt support-
edbyutilityrevenueonlyand
does not include existing or
future estimated debt that is
paid from property tax levy.
Theannualdebtservice(prin-
cipal and interest) shown in
Chart 3 includes general ob-
ligation revenue bonds se-
cured by water, sanitary sew-
er, and storm water revenues.
The annual amounts include
bothexistingdebtservice(on
outstanding bonds) and esti-
mated debt service on bonds
anticipated to be issued in
the future and paid from util-
ity revenues. Future bond is-
suance estimates are based
on the City’s capital improve-
ment plan (seeTable D).
Chart3 includes debt support-
edbyutilityrevenueonlyand
does not include existing or
future estimated debt that is
paid from property tax levy.
Key Factors
1SPKFDUJOHUIFVUJMJUZSBUFTOFDFTTBSZUPNBJOUBJOUIFm
nancialstabilityoftheCity’sutilityoperationsrequiresde-
velopment and analysis of the following key factors:
• Estimates for future annual operating expenditures,
including personnel, materials and supplies, cost of
electricity, and other operating expenses. The City
contracted with TKDA Engineering Firm in 2016 to
perform a review of the City’s operations. The results
of the TKDA review serve as the basis for the future
annualoperatingexpendituresincludedinthisreport.
• Metropolitan Council Environmental Service (MCES)
sewer fee charged to the City by the Metropolitan
Councilforregionalcollectionandtreatmentofwaste
water. This is an operating expense that the City does
not have control over. Future charges payable to the
MCES are calculated based on total estimated annual
sanitary sewer volume and the MCES current rate (as
PG
JOnBUFECZBOOVBMMZ
• Annual capital expenditure to maintain and improve
the utility systems.
• Annual debt servicePOCPOETJTTVFEUPmOBODFDBQJ
tal improvements.
• Growth in customers using and paying for the sys-
tems.Growthincustomerswillprovideadditionalrev-
enue to the systems at time of platting, connection,
and on-going usage, but will also create additional
demand for services.
• Available other revenue sources other than fees and
charges paid by customers of the utility systems.
Annual Operating Expenditures
Costs incurred in operating the utility systems, which are
used up in the period in which acquired, are recorded
as operating expenditures. Annual growth in operating
expenditures, not including the MCES charge, has been
modest. It is anticipated that growth in future years will
beapproximately2.0%annually,withsomelimitedexcep-
tions.
The operating expense projections included in this report
are informed by the report prepared by TKDA, consultant
to the City. Depreciation is reported as an operating ex-
penditures and is the process of allocating the costs of
an asset over its useful life in a systematic and rational
manner. Depreciation is estimated to change with capital
spending anddepreciationofbothexistingandfutureac-
quired assets.
MetropolitanCouncil Environmental
Services
TheMCESchargetocitiesforregionalcollectionandtreat-
ment has been volatile in recent years. MCES experienced
SFWFOVFMPTTFTGSPNUIFTJHOJmDBOUESPQJOSFHJPOBMEFWFM
opment during the recession which has caused a corre-
sponding decline in revenue collected by the Council for
Sewer Availability Charges (a one time fee for new con-
nections).Forprojectionpurposes,thestudyassumesthat
future charges paid to MCES for collection and treatment
will increase by 5.5% annually. This is part of the annual
operating expense to the City’s Sewer Fund.
The City accounts for the collection and payment of the
MCES “Sewer Availability Charge” (SAC) through an ac-
counts payable account. The operating expense report
for the Sanitary Sewer Fund (see TablesJ-1andJ-3 on pages
31 and 33 do not include a separate revenue andexpense
line item for the MCES SAC.
Annual Capital Expenditures
TheCIP anticipates paying for futurecapitalimprovement
project costs with a combination of revenue sources. The
City anticipates future development will provide revenue
totheCityforpayingforutilityexpansionthroughthecol-
lection of development fees (an availability and a connec-
tion charge).
Paying for annual planned capital improvement projects
with cash may be a sound strategy depending on the de-
tails of the project. It avoids incurring annual interest ex-
pense. However, this strategy requires advance planning
and implementation of utility fees and charges that pro-
WJEFBEFRVBUFDBTInPX
For large (non-routine) capital expenditures or unantici-
pated capital expenditures, the use of bonding to fund
capital minimizes annual rate increases that otherwise
would be necessary. It also allows the City to charge fu-
ture customers the cost of infrastructure with a longer
useful life, versus putting the entire burden on today’s
customers.The CIP anticipates bonding.The resulting an-
OVBMEFCUTFSWJDFPOUIFCPOETJTJODMVEFEJOUIFmOBODJBM
plans for the funds.
Debt Service
Debt service in the funds is paid from revenue collected
from utility fees, availability and connection charges, and
special assessments. The CIP anticipates debt issuance to
be supported by the revenues within the utility funds. All
DVSSFOUBOEGVUVSFEFCUJTBDDPVOUFEGPSJOUIFmOBODJBM
plans that are included in this report. The estimated debt
service on future bonds is based on 15 years and bonds
payable at current market interest rates. Future estimated
VUJMJUZGFFTBOEDIBSHFTSFnFDUUIFDPTUPGUIFFTUJNBUFE
increase for debt service.
Growth in Customers
Growth in customers from development is the most im-
portant factor in determining the projections for future
utilityrates.Buildoutofapproveddevelopmentswillbring
anincreaseinrevenuetotheutilityfundsthroughthecol-
lection of availability and connection charges and fees
collectedforserviceandusage ofthe systems. Availability
chargesandconnectionchargesareonetimechargescol-
lected at the time of development and connection to the
system. Estimating the increase in future customers is the
NPTUWPMBUJMFGBDUPSJOEFWFMPQJOHmOBODJBMQSPKFDUJPOT
for the utility funds.TableE on page 18 and Charts4and5on
page 19 include information on the estimated growth in
customers or residential equivalent units (“REU”) from de-
velopment. The estimated growth in REU’s was prepared
CZ$JUZTUBõBOEQSPWJEFEUP/PSUIMBOEGPSUIJTSFQPSU
The pace of growth in customers from development will
increase or decrease estimated revenues shown in this
report and impact future utility rates. For this reason it is
DSJUJDBMUIBUUIF$JUZVQEBUFJUTmOBODJBMQMBOTCBTFEPOBD
tual growth.
Available Other Revenues
There is limited other revenue. The majority of the cost
to operate and maintain the system is paid from charges
collected from those using the system. Other revenue in-
cludes interest income, special assessments, and grants.
Historical Utility Rates
Information on historical rates is provided in Tables F-H
beginning on page 20 for each of the utility funds. Rates
shown are billed quarterly, with the exception of the
stormwaterfeewhichisbilledto customersreceivingthis
charge on an annual basis. Prior to 2017, the City charged
a basic service fee for water only.
Future Utility Rates
Information on estimated utility rates for years 2018 to
2026 is included in Tables G-H for each utility fund. The fu-
UVSFSBUFTSFnFDUUIFSBUFTOFDFTTBSZUPNBJOUBJOBEFRVBUF
cash balance in the utility funds. These rates applied
against estimated customers and usage is used to calcu-
late the annual estimated charges for services fees shown
JOUIFmOBODJBMQMBOT QSPGPSNB
GPSFBDIVUJMJUZGVOE
The report assumes a 3.0% annual increase in water rates
anda1.0%annualincreaseinandsewerratesbeginningin
2018.Theannualrateincreaseisassumedonthequarterly
basefeeandusagefees only.Theannualfeeforstormwa-
ter is assumed to increase by $5.00 per year beginning in
2017 and then by $10.00 per year beginning in 2021.The
increases are needed to ensure the City is able to main-
UBJOTVöDJFOUDBTIJOUIFVUJMJUZGVOETPWFSUIFMPOHUFSN
There is no estimated change to the rates charged for de-
velopment, the connection and availably charges.
The tier structure the City uses for charging customers for
water, based on volume of water sold, was not reviewed
aspartofthisstudy.Thecurrentadoptedtierstructureap-
pears to be reasonable.
The City changed the basis for charging sanitary sewer
customers in 2017. Residential customers are charged a
CBTFGFFGPSUIFmSTU
HBMMPOTPGTFXFSWPMVNFCJMMFE
per quarter andthen charged on a per 1,000 gallons basis
for volume billed above this usage.
EstimatedVolumesofWater Sold and
Sanitary Sewer Billed
Annual estimated volume of water sold by tier and esti-
mated sanitary sewer billed by year is included in Table F
andTableG beginning on page 20.The estimated gallons of
watersoldandsanitarysewerbilledissummarizedin Chart
6 on page 23.
The City was not able to provide information on histori-
calvolumesoldpertiersoassumptionsweremadeonthe
volumessoldpertierinordertopreparethisreportandto
project future revenues frombilling of water usage.
The report assumes average annual volume of just under
96,000 gallons per residential customer (or approximately
8,000 gallons per month).This volume is pro-rated across
theCity’stierstructureusingestimatedhistoricaldata(ac-
tual volume data is not available from the City). For com-
mercial customers, annual volume is calculated based on
prior year estimated volumes adjusted by the percentage
increase in commercial and school customers. The report
assumesannualsewervolumebillerpercustomerforboth
residentialandcommercialof48,000gallons(or4,000gal-
lons per month). The MCES reported total sewer volume
for the City of nearly 18 million gallons for year 2016.
The estimates for residential and commercial customers
volume usage for both water and sanitary sewer needs to
be revisited and reviewed as better information becomes
available from the City’s utility billing system.
The estimates for future
growth from development,
shown in residential equiva-
lent units in Chart4andChart5,
XBTQSFQBSFECZ$JUZTUBõ
The data was provided to
Northland as an input for the
study and this report.
Theestimatesforgrowth,and
annual units platted and con-
nected, is an important input
forestimatingfuturerevenue.
Revenue from increased
residential equivalent units
comes from a one time pay-
ment of the City’s availabil-
ity charge and connection
charge and then from on-
going payment for use of
the systems. The availabil-
ity charge is paid at time of
platting and the connection
charge at time of connection.
The estimated annual gallons
of volume will increase as
more customers connect to
the water and sanitary sewer
systems.
This report assumes that the
average annual usage per
customer for residential and
commercial remains fairly
constant.
#BTFEPOIJTUPSJDBMmOBODJBMQFSGPSNBODF
FTUJNBUFEVUJM
JUZSBUFT
BOEGVUVSFDBQJUBMQSPKFDUT
mOBODJBMQMBOT QSP
forma) have been prepared for each the utility funds.
KeyAssumptions
5IFmOBODJBMQMBOTGPSFBDIVUJMJUZGVOETXBTEFWFMPQFE
based on several key assumptions which are as follows:
• Operating expenditures, including personnel costs
and materials supplies and all other operating ex-
pense will increase by approximately 2.0% annually
along with other adjustments as prepared by TKDA,
consultant to the City. The City contracted with TKDA
to perform a review of the City’s operations for the
utility systems and to provide input into future esti-
mated capital improvement projects.
• Nochangeinexistingtierstructureforfeesandcharg-
es.
• Depreciation is estimated based on estimated capital
improvements with new assets assumed to be depre-
ciated over a 40 year term. Information on calculation
of net capital assets, including depreciation is includ-
ed in the Appendix.
• Current capital improvement plan will be implement-
ed at estimated project costs and estimated sources
of funding as included in this report. This includes an
increase in future debt service for payment on bonds
to be issued.
• Utility fees for use of the system are assumed to in-
crease for water and sanitary sewer services, begin-
ning inyear 2018, see TableBon page 3 forannualper-
centageincreasesforwaterandsewerfeesandthefee
adjustment for storm water. The annual rate increase
is assumed on the quarterly base fee and usage fees
only.The annual fee for storm water is assumed to in-
crease by $5.00 per year, beginning in year 2018.
• Connection and availability charges are assumed to
remain constant for years 2017-2026. Revenue from
these charges is used to pay for the system, including
the planned capital projects and related debt service.
• Theestimatedutilityfeesandchargesareshowntobe
at a level that is adequate to maintain cash balances
JOUIFGVOETTVöDJFOUUPDPWFSUIFGPMMPXJOHPWFSUIF
OFYUmWFZFBST
SFTUSJDUFEDBTIGPSQMBOOFEDBQJUBM
2) restricted cash for debt service/calling of bonds;
and 3) unrestricted cash available equivalent to 35-
50% of anticipated operating expenses.
Fund Description
The Water Fund is used to account for the operating and
capital improvement costs of the water utility system.
Background
5IF8BUFS'VOEJTJOTPVOEmOBODJBMDPOEJUJPO'VUVSF
mOBODJBMQFSGPSNBODFXJMMCFJNQBDUFECZUIFUJNJOHPG
development of land in the City and the timing of receipt
of development fees that will support debt service on the
infrastructure and receipt of charges for service for usage
of the system.
Source of Funds
There are two major source of funds: 1) collection of
charges for service fees (base fee and volume usage fees)
and 2) development fees collected at time of platting and
time of connection to the system. Revenue from charges
for service fees will increase as the number of customers
increases and the volume of water sold increases.
5IFmOBODJBMQMBOBTTVNFTOPDIBOHFJOUIF$JUZTFYJTUJOH
rate structure and assumes annual rates increase of 3.0%
beginning in year 2018. The City adopted reductions to
the2017feeschedule,comparedtoprioryear,resultingin
a need to plan for higher increase in the future.
Beginning in2017, the City is no longer depositing there-
ceipt of revenue from a rental fee for access to the City’s
water tower by communication companies to the Water
Fund, this represented about a $50,000 reduction in an-
nual revenue to theWater Fund.
Interest income earned on cash balance is recorded as
revenue. The investment earnings rate is estimated to be
0.5% for future years.
Special assessments levied for water infrastructure im-
provements is recorded as revenue in theWater Fund.
Use of Funds
The use of funds is to pay for the operation of the water
TZTUFN
JOUFSFTUBOEmTDBMFYQFOTFPOEFCU
EFQSFDJBUJPO
and authorized transfers to other funds that may occur
from time to time. Principal payments on bonds sup-
ported by the Water Fund result in a reduction of liability
for the Fund. Operating expense line item details can be
found in TableI-3 on page 28.
Transfers
5IFmOBODJBMQMBOEPFTOPUBOUJDJQBUFBOZGVUVSFUSBOTGFST
in or out of funds fromtheWater Fund to other city funds.
Presently the City does not charge the utility funds for
General Fund overhead but does directly charge the fund
GPSBENJOJTUSBUJWFTUBõUJNF
Balance SheetItems
5IFmOBODJBMQMBOJODMVEFTFTUJNBUFEBTTFUTBOEMJBCJMJUJFT
this includes estimated annual year-end cash balance.
Table I-2 on page 27 provides a detailed summary on esti-
mated change in cash year by year.The City reported $3.4
million as receivable from other governments (the State
of Minnesota) at the end of 2016.This receivable was col-
lected in 2017 resulting an increase in cash balance.
Estimated year end cash bal-
ances are estimated to in-
DSFBTFPWFSUIFOFYUmWFZFBST
and then will be spent down
on debt service and capital
projects.
The source and use of funds
includes depreciation and
capital contributions. The dif-
ference between the annual
source and use of funds is the
change in net assets of the
GVOE5IFEJõFSFODFDPNFT
from the collection of devel-
opmentfees(sourceoffunds)
for payment of debt service
on outstanding bonds (liabil-
ity of the fund) and collection
of revenue for build-out of
the system.
Fund Description
TheSanitarySewerFundisusedtoaccountfortheoperat-
ing and capital improvement costs of the sanitary sewer
utility system.
Background
5IF4BOJUBSZ4FXFS'VOEJTJOTPVOEmOBODJBMDPOEJUJPO
'VUVSFmOBODJBMQFSGPSNBODFXJMMCFJNQBDUFECZUIFUJN
ing of future development of land and the timing of re-
ceipt of development fees (trunk line availability charges
and connection charges) that will support infrastructure
costs and receipt of charges for service for usage of the
system.
Source of Funds
There are two major source of funds: 1) collection of
charges for service fees (base fee and volume usage fees)
and 2) development fees collected at time of platting and
time of connection to the system. Revenue from charges
for service fees will increase as the number of customers
increases and the volume of water sold increases. Future
development of land through platting will result in in-
creased revenue from water availability and connection
charges.
5IFmOBODJBMQMBOBTTVNFTOPDIBOHFJOUIF$JUZTFYJTUJOH
rate structure and assumes a rate increase of 1.0% annu-
allybeginninginyear2018andthen2.0%annuallybegin-
ning in 2024.
Interest income is earned on cash balance is recorded as
revenue. The investment earnings rate is estimated to be
0.5% for future years.
Special assessments levied for sanitary sewer infrastruc-
ture improvements is recorded as revenue in the Sanitary
Sewer Fund.
Use of Funds
The use of funds is to pay for the operation of the sanitary
TFXFSTZTUFN
JOUFSFTUBOEmTDBMFYQFOTFPOEFCU
EFQSF
ciation, and authorized transfers to other funds that may
occur from time to time. Principal payments on bonds
supported by the Water Fund result in a reduction of li-
ability for the Fund. Operating expense line item details
can be found in TableJ-3 on page 33.
Transfers
5IFmOBODJBMQMBOEPFTOPUBOUJDJQBUFBOZGVUVSFUSBOTGFST
in or out of funds from the Sanitary Sewer Fund to other
city funds. Presently the City does not charge the utility
funds forGeneralFund overheadbut does directlycharge
UIFGVOEGPSBENJOJTUSBUJWFTUBõUJNF
Balance SheetItems
5IFmOBODJBMQMBOJODMVEFTFTUJNBUFEBTTFUTBOEMJBCJMJUJFT
for, this includes estimated annual year-end cash balance.
TableJ-2 on page 32 provides a detailed summary on esti-
mated change in cash year by year.
Estimated year end cash bal-
ance is estimated to increase
betweenyears2016and2020
due to development.
The actual year-end cash
balance will be impacted by
changes in planned capital
spending. As projects are im-
plemented, beyond what is
included in the CIP, cash bal-
ance may be lower than what
is estimated in this report.
The source and use of funds
includes depreciation and
capital contributions. The dif-
ference between the annual
source and use of funds is
the change in net assets. The
EJõFSFODFDPNFTGSPNUIF
collection of development
fees (source of funds) for pay-
ment of debt service on out-
standing bonds (liability of
the fund) and collection of
revenue for build-out of the
system.
Fund Description
TheStormWaterFundisusedtoaccountfortheoperating
and capital improvement costs of the storm water utility
system.
Background
5IF4UPSN8BUFS'VOEJTJOTPVOEmOBODJBMDPOEJUJPO'V
UVSFmOBODJBMQFSGPSNBODFXJMMCFJNQBDUFECZUIFUJNJOH
of future development oflandinthe City. Future develop-
ment will increasethe demands onthestormwaterutility
infrastructure and provide opportunity for increased rev-
enue to support the infrastructure and operation of the
system.
Source of Funds
5IFSFJTPOFNBKPSTPVSDFPGGVOE
UIFDPMMFDUJPOPGBmYFE
annual charge for service fee. The City does not charge
an availability fee for the storm water utility system. Build
out ofthe systemhas been paid as part of the developer’s
project costs.
Theannualfee,presentlyat$50.00,isassumedtoincrease
by $5.00 per year beginning in 2018 and then by $10.00
peryearbeginningin2021.An increaseisneededinorder
to maintain cash balance. Beginning in 2017, the City will
begin paying debt service on bonds issued in 2016.
Some cities choose to manage storm water utility fees
UISPVHImOBODJOHDFSUBJODBQJUBMJNQSPWFNFOUTXJUIUBY
levy, the City will have the ability in the future to consid-
er what costs, if any, of the storm water utility should be
spread over the cities entire tax base.
Interest incomeis earnedonthecashbalanceandrecord-
ed as revenue. The investment earnings rate is estimated
to be 0.5% for future years.
Special assessments levied and recorded as revenue to
the StormWater Fund relate to unpaid utility bills and are
not related to project costs.
Use of Funds
The use of funds is to pay for the operation of the storm
XBUFSTZTUFN
JOUFSFTUBOEmTDBMFYQFOTFPOEFCU
EFQSF
ciation, and authorized transfers to other funds that may
occur from time to time. Principal payments on bonds
supported by the Storm Water Fund result in a reduction
of liability for the Fund. Operating expense line item de-
tails can be found in TableK-3 on page 38.
Transfers
5IFmOBODJBMQMBOEPFTOPUBOUJDJQBUFBOZGVUVSFUSBOTGFST
in or out of funds fromthe StormWater Fund to other city
funds. Presently the City does not charge the utility funds
for General Fund overhead but does directly charge the
GVOEGPSBENJOJTUSBUJWFTUBõUJNF
Balance SheetItems
5IFmOBODJBMQMBOJODMVEFTFTUJNBUFEBTTFUTBOEMJBCJMJUJFT
for, this includes estimated annual year-end cash balance.
TableK-2 on page 37 provides a detailed summary on esti-
mated change in cash year by year.
Estimated year end cash bal-
ance is estimated to decline
due to the increase in debt
service expense. Cash bal-
ancesareexpectedtorecover
dueto theestimatedincrease
intheannualstormwaterfee.
The actual year-end cash
balance will be impacted by
changes in planned capital
spending. As projects are
implemented, beyond what
is included in the CIP, cash
balances may be lower than
what is estimated in this re-
port.
The source and use of funds
includes depreciation. The
EJõFSFODFCFUXFFOUIFBO
nual source and use of funds
is the change in net assets.
5IFEJõFSFODFDPNFTGSPN
the collection of charges and
payment of debt service on
outstanding bonds (liability
of the fund).
The increase in cash is due to
thecollectionofchargesfrom
development to pay for debt
JTTVFEUPmOBODFDBQJUBMJN
provement projects.
The CIP anticipates the is-
suance of additional debt
in the future to pay for capi-
tal improvements. Chart 13
includes both existing and
anticipated issuance of new
debt.
The estimated future re-
stricted cash balance for debt
service as a percent of year-
end debt outstanding will in-
crease as cash increases from
the collection of develop-
mentfees. Thecashcollected
will be used to pay future
debt service.
Northland Securities, Inc.45 South 7th Street, Suite 2000Minneapolis, MN 55402(800) 851-2920Member NASD and SIPC
STAFF REPORT
DATE: October 3, 2017
REGULAR
MOTION
TO: City Council FROM: Brian A. Swanson – Finance Director AGENDA ITEM: Enterprise Resource Planning System (ERP) Update and Next Steps REVIEWED BY: Kristina Handt – City Administrator
BACKGROUND: At the July 13 Finance Committee meeting, discussion occurred regarding budgeted expenditures for a new software package for finance and other city related business. Based upon this, staff prepared a Request for Proposals (RFP) for an Enterprise Resource Planning (ERP) System, which the Finance Committee discussed on July 27, 2017, and recommended approval for the City Council to consider. The City Council considered and approved the RFP on August 1, 2017 at the Regular City Council meeting. The RFP went
out on August 2, 2017, with a due date of September 1, 2017. Staff reviewed the proposals, contacted its current provider, Accela for a proposal, and at the September 21, 2017 Finance Committee meeting asked the Committee to consider a resolution authorizing staff to conduct a demonstration with Accela. The
Committee authorized this demonstration, which took place on September 25, 2017, and as such, staff is recommending moving forward with Accela for contract negotiation, and upon agreement, implementation.
QUESTIONS BEFORE THE CITY COUNCIL: 1) Does the City Council have any questions regarding the process and staff recommendation? 2) Is the City Council comfortable rejecting the other four proposals and moving ahead with Accela for contract negotiation, and upon agreement, implementation? DISCUSSION: The City received four proposals by the September 1, 2017 due date. These firms are associated with the software package, listed in parentheses, where applicable: 1) BS&A Software
2) Civic Systems, LLC – (Caselle) 3) Professional Computer Systems, Co. – (Utilit-e) 4) Tyler Technologies, Inc. – (Incode)
Staff analyzed each proposal based on many different criteria such as: 1) Ability to create efficiencies, which are currently limited by the software version in use. 2) Electronic payment capabilities and integration with other electronic payment solutions. 3) Functionality as it pertains to City business for necessary modules. 4) Overall cost based on software, annual maintenance, conversion and setup costs.
5) Comparable client base and sectors served.
Therefore, staff determined that Proposers from Civic Systems, LLC and Professional Computer
Systems, Co. would not meet the needs of the City. BS&A Software and Tyler Technologies, Inc. had very robust, comprehensive ERP solutions, but from a cost perspective, were significantly above the City’s budgeted estimate. As such, staff reached out to the City’s current software provider,
Accela, to get a proposal on their cloud-based solution. As stated in the previous report, the City was many versions behind Accela’s newest cloud based version. Upon review of the list of capabilities and contacting another City who uses the software, the version appears to have many of the same
functionalities of BS&A Software and Tyler Technologies, Inc., but at a better overall price point. For comparison purposes, analyzing the relevant modules for the City, annual maintenance, conversion and setup costs for a vendor or cloud-based solution, the following are the approximate costs in alphabetical order: 1) Accela: $51,691
2) BS&A Software: 94,636 3) Civic Systems, LLC – (Caselle): 90,565 4) Professional Computer Systems, Co. – (Utilit-e): 50,358 5) Tyler Technologies, Inc. – (Incode): 84,533 As shown, Accela is not the low cost option, but with Professional Computer Systems, Co. who was the lowest cost option, staff determined this would not meet its business needs. This is system based on providing ERP solutions for utilities, not for governments as a whole, which utilize different fund types and activities. In addition, client references were all utilities and co-ops, with no local presence.
It is key to note that Proposers 2-5 above all offered a static proposal, while Accela offered a variable proposal. This means that for data conversion, integration/interfaces, project management and
training, Proposers 2-5 offered flat fees, while Accela was based on the actual hours incurred. Further, in staff conversation with Accela, they provided an upper end figure, stating that with the level of staff involvement and amount of data the City wants converted, these costs could be less.
Finally, staff analyzed the cost per year after the ERP system is implemented, which is the annual maintenance cost. The following is the average cost per year for years two through five:
1) Accela: $ 9,800 2) BS&A Software: 5,500 3) Civic Systems, LLC – (Caselle): 18,400
4) Professional Computer Systems, Co. – (Utilit-e): 13,700 5) Tyler Technologies, Inc. – (Incode): 21,600
With the costs shown, BS&A is the lowest Proposer for annual maintenance costs, but factoring in the price difference between BS&A and Accela for implementation of the EFP solution, it would take nearly 10 years to realize the savings from the annual maintenance costs to justify the higher
implementation costs. Based upon all these factors, staff informed BS&A Software, Civic Systems, LLC, Professional
Computer Systems, Co. and Tyler Technologies, Inc. that the City would be exploring options with a different vendor. Therefore, staff reached out to Accela for a demonstration, which took place on September 25, 2017. This demonstration outlined many of the key features that are important to City business and staff efficiencies, as such, staff is recommending the City Council approve moving forward with Accela. It is the goal of a go-live date in the first quarter of 2018 for implementation and training of staff based upon the timing of the contract negotiation.
FISCAL IMPACT:
The City put in a tentative budget amount of $40,000 for the upgrade costs. There also was approximately
$6,000 in the existing operating budget for annual maintenance costs for the current system. Based on timing of the implementation, approximately $10,000 would be required upon signing of the contract in 2017, plus any monthly invoices to be paid as implementation occurs in 2017. Therefore, the $40,000
budgeted in 2018 is sufficient to cover the implementation in the fiscal year, with any costs incurred in 2017 being paid from fund balance.
RECOMMENDATION: 1) “Motion to Adopt Resolution No. 2017-101 approving formal rejection of BS&A Software, Civic
Systems, LLC, Professional Computer Systems, Co. and Tyler Technologies, Inc., and enter into contract negotiations with Accela, which upon acceptable terms, to begin implementation of an Enterprise Resource Planning (ERP) System solution for the City of Lake Elmo.” ATTACHMENTS: 1) Resolution No. 2017-101 – Approve Negotiation with Accela for ERP System and Implementation
CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. 2017-101 RESOLUTION APPROVING FORMAL REJECTION OF BS&A SOFTWARE, CIVIC SYSTEMS, LLC, PROFESSIONAL COMPUTER SYSTEMS, CO. AND TYLER TECHNOLOGIES, INC., AND TO ENTER INTO CONTRACT NEGOTIATIONS WITH ACCELA, WHICH UPON ACCEPTABLE TERMS, TO BEGIN IMPLEMENTATION OF AN ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM SOLUTION FOR THE CITY OF LAKE ELMO. WHEREAS, The City of Lake Elmo is formally rejecting proposals from the following firms:
1) BS&A Software 2) Civic Systems, LLC – (Caselle) 3) Professional Computer Systems, Co. – (Utilit-e) 4) Tyler Technologies, Inc. – (Incode) WHEREAS, the City of Lake Elmo is entering into contract negotiations with Accela,
which upon acceptable terms, to begin implementation of an Enterprise Resource Planning
(ERP) System solution. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Lake Elmo, that it will formally reject the four firms listed above and enter into contract negotiations
with Accela.
ADOPTED, by the Lake Elmo City Council on the 3rd day of October, 2017. ______________________________ Mike Pearson
Mayor ATTEST:
__________________________________ Julie Johnson City Clerk
STAFF REPORT
DATE: 10/3/2017
REGULAR
MOTION
TO: City Council
FROM: Emily Becker, Planning Director
AGENDA ITEM: Lakewood Crossing 2nd Addition Development Agreement
REVIEWED BY: Jack Griffin, City Engineer Sarah Sonsalla, City Attorney
BACKGROUND:
On June 20, 2017, Council approved Preliminary and Final Plat and Planned Unit Development
Plans for Lakewood Crossing 2nd Addition by adoption of Resolution 2017-063. A development
agreement is required prior to recording the plat with Washington County.
ISSUE BEFORE COUNCIL:
The City Council is being asked to adopt Resolution 2017-104 approving the Development Agreement for Lakewood Crossing 2nd Addition.
REVIEW/ANALYSIS:
Staff has drafted the proposed Development Agreement which is attached for consideration by the
City Council. The key aspects of the agreement include the following components:
•The Developer shall install the final wear course of asphalt on the streets for required turn
lane improvements by October 31, 2018.
•Hudson Boulevard must remain open to traffic at all times during construction of the turnlane improvements, and street sweeping must be done daily during heavy tracking days
nad at a minimum weekly throughout the construction duration.
•No construction parking is allowed along Hudson Blvd including loading and unloadingof equipment.
•The Hudson Blvd turn lane must be completed prior to the issuance of a Certificate of
Occupancy for any building permit.
•Required park dedication is a fee in lieu of land at $4500 per acre at 3.82 acres, totaling$17,190.
•That the developer provide a cash deposit of $67,265.00 for parkland dedication,
engineering administration, and other City fees. Sewer availability charges and water
City Council – Staff Report
Meeting date: 10/3/2017
Page 2
availability charges will be paid at the time of building permit, as Residential Equivalency
Charges will not be determined until the time tenants are chosen for each building.
•That the developer provide security in the amount of $235,101.00 for sanitary sewer,watermain, surface water facilities, landscaping improvements, erosion and sedimentationcontrol, construction of the right turn lane on Hudson Boulevard, and developers recorddrawings.
•Security costs do not include grading, storm sewer, streets and sidewalks, trails, streetlighting, street and traffic signs, private utilities, tree preservation, wetland mitigation andbuffers, or monuments, as would normally be included in a residential subdivision, as theseimprovements are not applicable to this development.
The final construction plans for the project have not been approved. Once approved, the Plan
approval dates will be incorporated into this document prior to its execution by the developer and
the City. Only after execution of this Agreement, receipt of all fees and securities, insurance,
recording of the final plat other and the completion of a pre-construction meeting with the City,
construction can commence.
FISCAL IMPACT:
The future financial impacts include sanitary sewer mains, watermains, surface water facilities
(infiltration basin), landscaping improvements, erosion and sedimentation control, and other
public financial responsibilities typically associated with a new development. The City will collect
building permit fees, Sewer Accessibility Charges and Water Accessibility Charges at the time of
building permit, and special assessments and parkland dedication will be due prior to the recording
of the plat.
OPTIONS:
The City Council is being asked to consider the approval of the Developer’s Agreement and has
the following options:
1)Adopt Resolution 2017-104 approving the Development Agreement for LakewoodCrossing 2nd Addition.
2)Direct Staff to amend the draft Developer Agreement to bring back to the 10/17/2017 City
Council meeting.
RECOMMENDATION:
Staff recommends the City Council adopt Resolution 2017-104 approving the Development
Agreement for Lakewood Crossing 2nd Addition with the following motion:
“Move to adopt Resolution 2017-104 approving the developer’s agreement for Lakewood
Crossing 2nd Addition Plat and Planned Unit Development.”
ATTACHMENTS:
City Council – Staff Report
Meeting date: 10/3/2017
Page 2
•Resolution 2017-104
•Lakewood Crossing 2nd Addition Development Agreement
1
507745v1 SJS LA515-34
(reserved for recording information)
DEVELOPMENT AGREEMENT
(Public sewer and water) Lakewood Crossing 2nd Addition
THIS DEVELOPMENT AGREEMENT is dated ______________, 2017, by and between the
CITY OF LAKE ELMO, a Minnesota municipal corporation (the “City”) and CM PROPERTIES
94 LIMITED PARTNERSHIP (the “Developer”).
1. REQUEST FOR PLAT APPROVAL. The Developer has asked the City to approve a
plat for Lakewood Crossing 2nd Addition (referred to in this Agreement as the “Subdivision”). The
property being platted is situated in the County of Washington, State of Minnesota, and is legally
described on Exhibit A.
2. CONDITIONS OF PLAT APPROVAL. The City hereby approves the Subdivision on
condition that the Developer enter into this Agreement, furnish the security required by it, and
record the plat with the County Recorder or Registrar of Titles within 120 days after the City
Council approves the final plat.
3. RIGHT TO PROCEED. This Agreement is intended to regulate the development of the
Property and the construction therein of certain public and private improvements. The Developer
2
507745v1 SJS LA515-34
may not grade or otherwise disturb the earth, remove trees or construct public or private
improvements or any buildings within the Subdivision until all the following conditions precedent
have been satisfied:
A. the Developer has executed and recorded with Washington County all drainage and
utility easements required for the Subdivision by the City Engineer and Public Works
Director in the City’s standard form;
B. the Developer has executed and recorded with Washington County the storm water
maintenance and easement agreement in the City’s standard form;
C. this Agreement has been executed by the Developer and the City;
D. the required Security (as hereinafter defined) have been received by the City from or on
behalf of the Developer;
E. final construction plans and specifications have been submitted by the Developer and
approved by the City Engineer;
F. the Developer has paid the City for all legal, engineering, and administrative expenses
incurred by the City regarding the City approvals and has given the City the additional
City Engineering Administration Escrow required by this Agreement;
G. the Developer has paid any outstanding assessments and taxes for the property or
property being deeded to the City;
H. the Developer has fulfilled any park dedication requirements as specified under this
Agreement;
I. the Developer has received all necessary permits from the Minnesota Pollution Control
Agency (“MPCA”), the Minnesota Department of Health (“MDH”), the Department of
Natural Resources (“DNR”), applicable watershed districts, Washington County, and any
other agency having jurisdiction over the Subdivision;
3
507745v1 SJS LA515-34
J. the Developer has provided the City with a certificate of insurance required by this
Agreement;
K. the Developer or the Developer’s engineer and the Developer’s contractor(s) have
initiated and attended a preconstruction meeting with the City Engineer, and City staff;
L. the final plat has been recorded with Washington County;
M. legal documents regarding easement and maintenance agreements, covenants, and
restrictions have been submitted, reviewed, and approved by the City Attorney;
N. the Developer has provided a title policy for all land being deeded to the City or dedicated
to the City in the plat; and
O. the City has issued a written notice that all above conditions have been satisfied and that
the Developer may proceed;
4. PHASED DEVELOPMENT. If the plat is a phase of a multi-phased preliminary plat,
the City may refuse to approve final plats of subsequent phases of the development if the
Developer is not in compliance with any term of this Agreement and the non-compliance has not
been remedied. Development of subsequent phases of the development may not proceed until
development agreements for such phases are approved by the City. Park dedication charges
and availability charges for sewer and water referred to in this Agreement are not being imposed
on outlots that are designated in the plat for future subdivision into lots and blocks, if any, in the
plat. Such charges will be calculated and imposed when these outlots, if any, are platted into lots
and blocks.
5. PRELIMINARY PLAT STATUS. If the Subdivision is a phase of a multi-phased
preliminary plat, the preliminary plat approval for all phases not final platted shall lapse and be
void unless final platted into lots and blocks, not outlots, within five years after preliminary plat
approval.
6. CHANGES IN OFFICIAL CONTROLS. For five years from the date of this Agreement,
4
507745v1 SJS LA515-34
no amendments to the City's Comprehensive Plan or official controls shall apply to or affect the
use, development density, lot size, lot layout or dedications of the approved final plat unless
required by state or federal law or agreed to in writing by the City and the Developer. Thereafter,
notwithstanding anything in this Agreement to the contrary, to the full extent permitted by state
law, the City may require compliance with any changes to the City's Comprehensive Plan, official
controls, platting or dedication requirements enacted after the date of this Agreement.
7. DEVELOPMENT PLANS. The Developer agrees to develop the Property in
accordance with the City approvals, including the terms and conditions of approval of the final plat
as detailed in City Council Resolution No. 2017-063, and to construct all improvements in
accordance with the approved construction plans and specifications (collectively, the “Plans”)
prepared by a professional engineer registered in the State of Minnesota at its sole expense. All
terms and conditions of the City approvals are hereby incorporated by reference into this
Agreement. The documents which constitute the Plans are those on file with and approved by
the City and are listed on Exhibit B attached hereto. The Plans may not be modified by the
Developer without the prior written approval of the City.
8. IMPROVEMENTS. In developing the Subdivision in accordance with the Plans, the
Developer shall make or install at its sole expense the following public and private improvements
(collectively, the “Subdivision Improvements”):
A. Grading and erosion control;
B. Sanitary sewer;
C. Water system improvements;
D. Stormwater improvements (storm sewer pipe, control structures, ponds, BMPs,
etc.)
E. Streets and sidewalks;
F. Trails;
G. Underground private utilities;
H. Landscaping;
I. Street lighting and signage;
5
507745v1 SJS LA515-34
J. Intersection improvements (turn lanes, by-pass lanes, traffic control, etc.);
K. Tree preservation and reforestation;
L. Wetland mitigation and buffers; and
M. Monuments required by Minnesota Statutes.
All improvements shall be installed in accordance with the approved Plans, the City
approvals, the City Code, the City’s Engineering Design and Construction Standards Manual, and
the City’s Landscape and Irrigation Standards. The Developer shall instruct its engineer to
provide adequate field inspection personnel to assure an acceptable level of quality control to the
extent that the Developer's engineer will be able to certify that the construction work meets the
approved Plans, the City approvals, the City Code, the City’s Engineering Design and
Construction Standards Manual, and the City’s Landscape and Irrigation Standards as a condition
of City acceptance. In addition, the City may, at the City's discretion and at the Developer's
expense, have one or more City inspectors or a soil engineer inspect the Developer’s work on a
full or part-time basis. The Developer's engineer shall provide for on-site project management.
The Developer's engineer is responsible for design changes and contract administration between
the Developer and the Developer's contractor.
9. CITY ADMINISTRATION AND CONSTRUCTION OBSERVATION. At the time of the City’s approval of the final plat for the Subdivision, the Developer shall submit
to the City an amount to be escrowed by the City for City administration and construction
observation costs in an amount provided under paragraph 34 of this Agreement - Summary of
Cash Requirements. Thereafter, the Developer shall reimburse the City each month, within 30
days of receiving an invoice, for all administration and construction observation costs incurred by
the City during the construction of the Subdivision Improvements by the City’s engineering, public
works, planning, and landscape architecture staff and consultants. After 30 days of the invoice,
the City may draw upon the escrow and stop the work on site until the escrow has been
replenished in its full amount. City administration and oversight will include monitoring of
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construction progress and construction observation, consultation with the Developer and the
Developer’s professionals on status or problems regarding the project, coordination for testing,
final inspection and acceptance, project monitoring during the warranty period, and processing of
requests for reduction in the Security. Construction observation shall include, at the discretion of
the City, part or full time inspection of proposed public utilities and street construction. Services
will be billed by the City on an hourly basis.
The direction and review provided by the City through the inspection of the Subdivision
Improvements should not be considered a substitute for the Developer-required management of
the construction of the Subdivision Improvements. The Developer must require the Developer’s
contractor(s) to furnish the City with a schedule of proposed operations at least five days prior to
the commencement of construction of each type of Subdivision Improvement. The City shall
inspect all Developer-installed Subdivision Improvements during and after construction for
compliance with the Plans, the City approvals, the City Code, the City’s Engineering Design and
Construction Standards Manual, and the City’s Landscape and Irrigation Standards. The
Developer will notify the City at such times during construction as the City requires for inspection
purposes. Such inspection is pursuant to the City’s governmental authority, and no agency or
joint venture relationship between the City and the Developer is thereby created.
10. CONTRACTORS/SUBCONTRACTORS. City Council members, City employees,
and City Planning Commission members, and corporations, partnerships, and other entities in
which such individuals have greater than a 25 percent ownership interest or in which they are an
officer or director may not act as contractors or subcontractors for the Subdivision Improvements
identified in paragraph 8 above.
11. TIME OF PERFORMANCE. The Developer shall install all required Subdivision
Improvements by October 31, 2018, including the final wear course of asphalt on streets (turn
lanes). The Developer may, however, request an extension of time from the City. If an extension
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is granted, it shall be conditioned upon updating the Security posted by the Developer to reflect
cost increases and amending this Agreement to reflect the extended completion date.
12. MAINTENANCE DURING CONSTRUCTION. The Developer shall be responsible for
all maintenance of the Subdivision Improvements until the Subdivision Improvements are
accepted by the City in writing. The Developer is also responsible to locate all underground
utilities until the Subdivision is accepted in writing by the City. Warning signs shall be placed by
the Developer when hazards develop in streets to prevent the public from traveling on same and
to direct attention to detours. Hudson Boulevard must remain open to traffic at all times to ensure
that the streets are passable for traffic and emergency vehicles. The Developer shall be
responsible for keeping streets within and outside of the Subdivision clean and clear of dirt and
debris that may spill, track, or wash onto the street from the Developer’s operations. The
Developer shall contract for street cleaning for streets within and immediately adjacent to the
Subdivision. Street sweeping must be done daily during heavy tracking days and at a minimum
weekly throughout the duration of the construction.
13. LICENSE. The Developer hereby grants the City, its agents, employees, officers, and
contractors a license to enter the Property to perform all work and inspections deemed
appropriate by the City in conjunction with the development of the Property and this Agreement.
14. CONSTRUCTION ACCESS. Construction traffic access and egress for grading, public
utility construction, and street construction is restricted to access the Subdivision via Hudson
Boulevard North. No construction traffic is permitted on other adjacent local streets. No
construction parking is allowed along Hudson Boulevard including loading and unloading of
equipment. Construction parking must occur on the property within the Subdivision.
15. CONSTRUCTION SEQUENCE AND COMPLIANCE. The City will require the
Developer to construct the Subdivision Improvements in a sequence which will allow progress
and compliance points to be measured and evaluated. The Developer and the Developer’s
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representatives are required to supervise and coordinate all construction activities for all
Subdivision Improvements and must notify the City in writing stating when the work is ready for
the inspection at each of the measurable points defined in the following paragraphs.
16. EROSION CONTROL. All construction regarding the Subdivision Improvements shall
be completed in a manner designed to control erosion and in compliance with the City Code, the
City’s Engineering Design and Construction Standards Manual, all watershed district permits, the
MPCA’s best management practices, and other requirements including the City’s permit with the
MPCA for the municipal separate storm sewer system program. Prior to initiating any work on
the site, an erosion control plan must be implemented by the Developer and inspected and
approved by the City. Erosion and sediment control measures shall be coordinated with the
various stages of development. The City may impose additional erosion control requirements at
any stage in development as deemed necessary to maintain a compliant site. All areas disturbed
for site improvements must be reseeded by the Developer promptly after the work in the area is
complete unless construction of the next stage of the improvements will begin in that area within
seven days. The parties recognize that time is of the essence in controlling erosion.
If the Developer does not comply with the erosion control plan and schedule or
supplementary instructions received from the City, the City may take such action as it deems
appropriate to control erosion. The City will endeavor to notify the Developer in advance of any
proposed action, but failure of the City to do so will not affect the Developer's and City's rights or
obligations hereunder. If the Developer does not reimburse the City for any cost the City incurred
for such work within 10 days, the City may draw down the Security to pay any costs. No
development, utility, or street construction will be allowed and no building permits will be issued
by the City unless the Subdivision is in full compliance with the approved erosion control plan.
If building permits are issued prior to the acceptance of public Subdivision Improvements,
the Developer assumes all responsibility for erosion control compliance throughout the
Subdivision and the City may take such action as allowed by this Agreement against the
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Developer for any noncompliant issue as stated above. Erosion control plans for individual lots
will be required in accordance with the City’s building permit requirements, or as required by the
City or City Engineer.
17. SITE GRADING. In order to construct the Subdivision Improvements and otherwise
prepare the Property for development, it will be necessary for the Developer to grade the
Subdivision. All grading must be done in compliance with this Agreement and the approved
grading plans. Within 30 days after completion of the grading, the Developer shall provide the
City with an “as built” grading plan and a certification by a registered land surveyor or engineer
as required in the City’s Engineering Design and Construction Standards Manual.
18. STREET AND UTILITY IMPROVEMENTS. All sanitary sewers, watermain, and turn
lane improvements, shall be installed in accordance with the approved Plans, the City approvals,
the City Code, and the City’s Engineering Design and Construction Standards Manual. Once the
work is completed, the Developer or the Developer’s representative shall submit a written request
to the City asking for an inspection of the initial improvements. The City will then schedule a walk-
through to create a punch list of outstanding items to be completed. Upon receipt of the written
punch list provided by the City, the punch list items must be completed by the Developer and the
City notified to re-inspect the improvements.
19. LANDSCAPING AND TREE REPLACEMENT IMPROVEMENTS.
A. The Developer agrees to install landscaping in accordance with the approved Plans,
the City approvals, the City Code, the City’s Engineering Design and Construction
Standards Manual, and the City’s Landscape and Irrigation Standards. All
landscaping materials such as trees, shrubs, grasses, or other vegetation installed
by the Developer must be warrantied and maintained for a period of two years. The
two year warranty period shall be deemed to start once all required landscaping
identified as responsibility of Developer in the approved Plans has received
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acceptance by the City. The Developer agrees to have the installer of the
landscaping complete an inspection 30 days prior to the end of the two year warranty
period and provide the City with a written report identifying the condition of all
landscaping. In the event any landscaping installed by the Developer is deemed to
be in poor condition or dead, the Developer is to replace the landscaping with like
kind materials or as otherwise approved by the City.
B. The Developer shall be responsible for maintaining regular watering, fertilizing, and
over-seeding necessary to establish final lawns and yards as identified in the
approved Plans for outlots, public rights-of-way, and any disturbed areas outside the
Subdivision boundaries according to a landscape maintenance plan approved by the
City. The Developer agrees to achieve “substantial performance” on all seeded or
sodded areas disturbed during the construction of Subdivision Improvements. For
the purpose of this agreement “substantial performance” shall be defined for areas
seeded or sodded with a turf or lawn mix as “square foot turf areas with an average
blade height of three inches free of eroded, bare, or dead spots and free from
perennial weeds or unwanted grasses with no visible surface soil.” For areas seeded
with a native grass or flower mix “substantial performance” shall be defined as
“square foot native grass or flower areas with an average height of eight inches free
of eroded, bare, or dead spots and no visible surface soil.”
20. SIGNAGE, STREET LIGHTING AND OTHER UTILITIES. The Developer agrees to
install street signs, traffic and parking signs, and pavement markings within the Subdivision all in
accordance with the approved Plans and the City Engineering Design Standards Manual. Street
and traffic sign details shall be submitted by the Developer to the City for approval prior to
installation. In addition, the Developer shall be responsible for the cost and all coordination work
to extend private utilities along with street lighting within the Subdivision all in accordance with
the approved plans and right-of-way permits.
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21. OWNERSHIP OF IMPROVEMENTS. Upon completion of the work and construction
required by this Agreement, the Subdivision Improvements lying within public easements shall
become City property. Prior to acceptance of the public Subdivision Improvements by the City,
the Developer must furnish the City with a complete set of reproducible "record" plans and an
electronic file of the "record" plans in accordance with the City’s Engineering Design and
Construction Standards Manual together with the following affidavits:
- Developer/Developer Engineer’s Certificate - Land Surveyor’s Certificate certifying that all construction has been completed in accordance with the terms of this
Agreement. All necessary forms will be furnished by the City. Upon receipt of “record plans” and
affidavits, and upon review and verification by the City Engineer that the public Subdivision
Improvements have been completed in accordance with the terms of this Agreement, the City
Engineer will accept the completed public Subdivision Improvements.
22. PARK DEDICATION. The Developer shall pay a cash contribution of $17,190.00 in
satisfaction of the City's park dedication requirements. The charge was calculated as follows:
3.82 acres at $4,500.00 per acre.
23. SANITARY SEWER AND WATER UTILITY AVAILABILITY CHARGES (SAC AND
WAC). The Developer shall be responsible for the payment of all sewer availability charges
(SAC) and all water availability charges (WAC) with respect to the Subdivision Improvements
required by the City and any state or metropolitan government agency.
The sewer availability charge (SAC) in the amount of $3,000.00 per REC will be payable
and collected by the City at the time the building permit is issued for each building.
The water availability charge (WAC) in the amount of $3,000.00 per REC will be payable
and collected by the City at the time the building permit is issued for each building.
In addition, a sewer connection charge in the amount of $1,000.00 per REC, a
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Metropolitan Council sewer availability charge in the amount of $2,485.00 per REC, and a water
connection charge in the amount of $1,000.00 per REC will be payable and collected by the City
at the time the building permit is issued for each building.
24. BUILDING PERMITS/CERTIFICATES OF OCCUPANCY.
A. No building permit shall be issued for any lot within the Subdivision, or within a
completed phase of the Subdivision in a City preapproved phasing plan, until such
time that sanitary sewer, water, storm sewer, and grading as-built plans have been
submitted and approved by the City. A “preapproved phasing plan” is defined as a
phased construction plan that has been submitted by the Developer and approved
by the City in advance of the preconstruction meeting for the Subdivision. Once the
construction has started, the City will not consider revisions to the phasing plan for
the purpose of issuing building permits.
B. Breach of the terms of this Agreement by the Developer, including nonpayment of
billings from the City, shall be grounds for denial of building permits, certificates of
occupancy, and withholding of other permits, inspection or actions and the halting of
all work in the Subdivision.
C. If building permits are issued prior to the acceptance of the public Subdivision
Improvements by the City, the Developer assumes all liability and costs resulting in
delays in completion of public Subdivision Improvements and damage to public
Subdivision Improvements caused by the City, Developer, the Developer’s
contractors, subcontractors, materialmen, employees, agents, or any third parties.
D. No sewer and water connection permits may be issued until the streets needed for
access have been paved with a bituminous surface and the utilities are tested and
approved by the City Engineer.
E. The Hudson Boulevard turn lane must be completed prior to the issuance of a
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certificate of occupancy for any building permit.
25. RESPONSIBILITY FOR COSTS.
A. In the event that the City receives claims from labor, materialmen, or others that work
required by this Agreement has been performed and the amounts due to them have
not been paid, and the laborers, materialmen, or others are seeking payment from
the City, the Developer hereby authorizes the City to commence an Interpleader
action pursuant to Rule 22, Minnesota Rules of Civil Procedure for the District
Courts, to draw upon the Security in an amount up to 125 percent of the claim(s) and
deposit the funds in compliance with the Rule, and upon such deposit, the Developer
shall release, discharge, and dismiss the City from any further proceedings as it
pertains to the funds deposited with the District Court, except that the Court shall
retain jurisdiction to determine attorneys' fees pursuant to this Agreement.
B. Except as otherwise specified herein, the Developer shall pay all costs incurred by
it or the City in conjunction with the development of the Subdivision, including but
not limited to legal, planning, engineering, and inspection expenses incurred in
connection with the City’s approval and acceptance of the plat and the Subdivision,
the preparation of this Agreement, the City’s review of construction plans and
documents, and all costs and expenses incurred by the City in monitoring and
inspecting development of the Subdivision. All amounts incurred and due to the City
at the time of the recording of the final plat must be fully paid by the Developer prior
to the City executing and releasing the final plat for recording.
C. The Developer shall hold the City and its officials, employees, and agents harmless
from claims made by itself and third parties for damages sustained or costs incurred
resulting from the City’s approval of the plat and the development of the Subdivision.
The Developer shall indemnify the City and its officials, employees, and agents for
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all costs, damages, or expenses which the City may pay or incur in consequence of
such claims, including attorneys' fees.
D. The Developer shall reimburse the City for costs incurred in the enforcement of this
Agreement, including reasonable engineering and attorneys' fees.
E. The Developer shall pay, or cause to be paid when due, and in any event before any
penalty is attached, all special assessments referred to in this Agreement. This is a
personal obligation of the Developer and shall continue in full force and effect even
if the Developer sells one or more lots, the entire Property, or any portion of it.
F. The Developer shall pay in full all bills submitted to it by the City for obligations
incurred under this Agreement within 30 days after receipt. Bills not paid within 30
days shall be assessed a late fee per the City adopted fee schedule. Upon request,
the City will provide copies of detailed invoices of the work performed by the City
and its consultants.
26. SPECIAL PROVISIONS. The following special provisions shall apply to the
Subdivision:
A. The Developer must obtain a sign permit from the City prior to installation of any
sign.
27. MISCELLANEOUS. A. The Developer may not assign this Agreement without the written permission of the
City Council. The Developer's obligations hereunder shall continue in full force and
effect even if the Developer sells one or more lots, the entire Property, or any portion
of it.
B. Retaining walls that require a building permit shall be constructed in accordance with
plans and specifications prepared by a professional engineer licensed by the State
of Minnesota. Following construction, a certification signed by the design engineer
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shall be filed with the City Engineer evidencing that the retaining wall was
constructed in accordance with the approved Plans. All retaining walls identified on
the Plans or by special conditions referred to in this Agreement shall be constructed
before any other building permit is issued for a lot on which a retaining wall is
required to be built.
C. Legal documents regarding covenants and restrictions shall be submitted to the City
prior to recording of the final plat for review and approval by the City Attorney.
D. The Developer shall take out and maintain or cause to be taken out and maintained
until six months after the City has accepted the public Subdivision Improvements,
public liability and property damage insurance covering personal injury, including
death, and claims for property damage which may arise out of Developer's work or
the work of its subcontractors or by one directly or indirectly employed by any of
them. Limits for bodily injury and death shall be not less than $500,000 for one
person and $1,500,000 for each occurrence; limits for property damage shall be not
less than $200,000 for each occurrence; or a combination single limit policy of
$1,500,000 or more. The City shall be named as an additional insured on the policy,
and the Developer shall file with the City a certificate of insurance evidencing
coverage prior to the City signing the plat. The certificate shall provide that the City
must be given 30 days’ advance written notice of the cancellation of the insurance.
E. Third parties shall have no recourse against the City under this Agreement.
F. If any portion, section, subsection, sentence, clause, paragraph, or phrase of this
Agreement is for any reason held invalid, such decision shall not affect the validity
of the remaining portion of this Agreement.
G. The action or inaction of the City shall not constitute a waiver or amendment to the
provisions of this Agreement. To be binding, amendments or waivers shall be in
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writing, signed by the parties and approved by written resolution of the City Council.
The City's failure to promptly take legal action to enforce this Agreement shall not be
a waiver or release.
H. This Agreement shall run with the land and may be recorded against the title to the
Property at the Developer’s expense. The Developer covenants with the City, its
successors and assigns, that the Developer has fee title to the Property being final
platted and has obtained consents to this Agreement, in the form attached hereto,
from all parties who have an interest in the Property, including, but not limited to,
mortgagees; that there are no unrecorded interests in the Property being final
platted; and that the Developer will indemnify and hold the City harmless for any
breach of the foregoing covenants.
I. Each right, power, or remedy herein conferred upon the City is cumulative and in
addition to every other right, power or remedy, express or implied, now or hereafter
arising, available to City, at law or in equity, or under any other agreement, and each
and every right, power and remedy herein set forth or otherwise so existing may be
exercised from time to time as often and in such order as may be deemed expedient
by the City and shall not be a waiver of the right to exercise at any time thereafter
any other right, power, or remedy.
J. The Developer represents to the City that the Subdivision and the Subdivision
Improvements comply or will comply with all City, County, metropolitan, state, and
federal laws and regulations, including but not limited to: subdivision ordinances,
zoning ordinances, and environmental regulations. If the City determines that the
Subdivision is not in compliance, the City may, at its option, refuse to allow
construction or development work in the Subdivision until it is brought into
compliance. Upon the City’s demand, the Developer shall cease work until there is
compliance.
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28. EVENTS OF DEFAULT. The following shall be "Events of Default" under this
Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement,
any one or more of the following events:
A. Subject to unavoidable delays, failure by the Developer to commence and complete
construction of the public Subdivision Improvements pursuant to the terms,
conditions, and limitations of this Agreement.
B. Failure by the Developer to substantially observe or perform any material covenant,
condition, obligation, or agreement on its part to be observed or performed under
this Agreement.
29. REMEDIES ON DEFAULT. Whenever any Event of Default occurs, the City, subject
to any rights of third parties agreed to by the City pursuant to this Agreement, or otherwise by
written, executed instrument of the City, may take any one or more of the following:
A. The City may suspend its performance under the Agreement until it receives
assurances from the Developer, deemed adequate by the City, that Developer will
cure its default and continue its performance under the Agreement. Suspension of
performance includes the right of the City to withhold permits including, but not
limited to, building permits.
B. The City may initiate such action, including legal or administrative action, as is
necessary for the City to secure performance of any provision of this Agreement or
recover any amounts due under this Agreement from the Developer, or immediately
draw on the Security, as set forth in this Agreement.
30. ENFORCEMENT BY CITY; DAMAGES. The Developer acknowledges the right of
the City to enforce the terms of this Agreement against the Developer, by action for specific
performance or damages, or both, or by any other legally authorized means. In the event of a
default by the Developer as to construction or repair of any of the Subdivision Improvements or
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any other work or undertaking required by this Agreement, the City may, at its option, perform the
work and the Developer shall promptly reimburse the City for any expense incurred by the City.
This Agreement is a license for the City to act, and it shall not be necessary for the City to seek
an order from any court for permission to enter the Subdivision for such purposes. If the City
does such work, the City may, in addition to its other remedies, levy special assessments against
the land within the Subdivision to recover the costs thereof. For this purpose, the Developer, for
itself and its successors and assigns, expressly waives any and all procedural and substantive
objections to the special assessments, including, but not limited to, hearing requirements, and
any claim that the assessments exceed the benefit to the land so assessed. The Developer, for
itself and its successors and assigns, also waives any appeal rights otherwise available pursuant
to Minnesota Statutes Section 429.081.
The Developer also acknowledges that its failure to perform any or all of the Developer’s
obligations under this Agreement may result in substantial damages to the City; that in the event
of default by the Developer, the City may commence legal action to recover all damages, losses
and expenses sustained by the City; and that such expenses may include, but are not limited to,
the reasonable fees of legal counsel employed with respect to the enforcement of this Agreement.
31. WARRANTY. During the warranty period, the Developer warrants that all Subdivision
Improvements will be free from defects and that they will continue to meet all technical
specifications and standards. During the warranty period, the Developer agrees to repair or
replace any Subdivision Improvement, or any portion or element thereof, which shows signs of
failure, normal wear and tear excepted. If the Developer fails to repair or replace a defective
Subdivision Improvement during the warranty period, the City may repair or replace the defective
portion and may use the Security to reimburse itself for such costs. The Developer agrees to
reimburse the City fully for the cost of all Subdivision Improvement repair or replacement if the
cost thereof exceeds the remaining amount of the Security. Such reimbursement must be made
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within 45 days of the date upon which the City notifies the Developer of the cost due under this
paragraph. The Developer hereby agrees to permit the City to specially assess any unreimbursed
costs against any lots in the Subdivision which have not been sold to buyers if the Developer fails
to make required payments to the City. The Developer, on behalf of itself and its successors and
assigns, acknowledges the benefit to the lots within the Subdivision of the repair or replacement
of the Subdivision Improvements and hereby consents to such assessment and waives the right
to a hearing or notice of hearing or any appeal thereon under Minnesota Statutes, Chapter 429.
A. The required warranty period for all work relating to the public sewer and water shall
be two years from the date of final written City acceptance of the work.
B. The required warranty period for all work relating to the Hudson Boulevard turn lane
shall be one year from the date of final written City acceptance of the work.
C. The required warranty period for sod, trees, and landscaping shall be two years from
the date of final written City acceptance of the installation.
32. SUMMARY OF SECURITY REQUIREMENTS. To guarantee compliance with the
terms of this Agreement, payment of special assessments, payment of the costs of all public
Subdivision Improvements, and construction of all public Subdivision Improvements, the
Developer shall furnish the City with an irrevocable letter of credit or a cash escrow or a
combination of a cash escrow and letter of credit (the “Security") in the amount of $235,100.00.
The bank originating the letter of credit shall be determined by the City to be solvent and
creditworthy. The letter of credit shall substantially be in the form attached to this Agreement and
must be approved by the City. The amount of the Security was calculated as itemized on Exhibit
C. If at any time the City reasonably determines that the bank issuing the letter of credit no longer
satisfies the City’s requirements regarding solvency and creditworthiness, the City shall notify the
Developer and the Developer shall provide to the City within 45 days a substitute for the letter of
credit from another bank meeting the City’s requirements. If the Developer fails to provide the
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City within 45 days with a substitute letter of credit from an issuing bank satisfactory to the City,
the City may draw under the existing letter of credit.
This breakdown is for historical reference; it is not a restriction on the use of the Security.
The City may draw down the Security, without notice, for any violation of the terms of this
Agreement or if the Security is allowed to lapse prior to the end of the required term. If the required
public Subdivision Improvements are not completed at least 30 days prior to the expiration of the
Security, the City may also draw it down. If the Security is drawn down, the proceeds shall be
used by the City to cure the default.
33. REDUCTION OF SECURITY. Upon written request by the Developer and upon receipt
of proof satisfactory to the City Engineer that work has been completed in accordance with the
approved Plans and the terms of this Agreement and that all financial obligations to the City have
been satisfied, the City Engineer may approve reductions in the Security in the following
instances:
A. Upon completion of grading operations, including temporary site restoration. The
Developer must submit an as-built grading survey to the City that at a minimum
establishes the as-built grades at all lot corners and downstream drainage
conveyance systems and storm water ponds. Upon inspection of the site and
approval of the as-built survey by the City, 100 percent, or $0, of the Security
associated with grading may be released. This Security reduction does not include
amounts related to erosion and sedimentation control.
B. Up to 75 percent of the Security associated with the itemization on Exhibit C may
be released upon completion of the following key milestones of the project as
determined by the City Engineer:
1. Construction Categories 2 and 3: The amount of $73,410.00 may be released
when all sanitary sewer and watermain utilities have been installed, all testing
and televising has been successfully completed, sanitary sewer as-built inverts
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have been verified, and the utilities are considered ready for use by the City
Engineer.
2. Construction Categories 4 and 5: The amount of $0 may be released when the
Hudson Boulevard turn lane has been installed, the drainage system within the
right-of-way has been installed and tested, and both have been found to be
complete to the satisfaction of the City Engineer including all corrective work
for any identified punch list items and including verification of storm sewer as-
built inverts.
3. Construction Categories 6-10 and 14-17: The amount of $10,571.00 may be
released when all remaining Developer’s obligations under this Agreement
have been completed including: (1) bio retention facilities; (2) iron monuments
for lot corners have been installed, if required; (3) all financial obligations to the
City satisfied; (4) the required "record" plans in the form of the City standards
have been received and approved by the City; and (5) the public Subdivision
Improvements are accepted by the City Engineer and the City Council.
4. Construction Categories 11, 12, and 13: The amount of $28,125.00 may
be released when landscaping Subdivision Improvements have been installed
to the satisfaction of the City including all corrective work for any identified
punch list items.
C. Twenty-five percent of the original Security amount, excluding grading and
landscaping improvements shall be retained until: (1) all Subdivision
Improvements have been fully completed and accepted by the City, including all
corrective work and warranty punch list items; (2) all financial obligations to the
City have been satisfied; and (3) the warranty period has expired.
D. Twenty-five percent of the original Security amount associated with landscaping
shall be retained by the City until: (1) all landscaping Subdivision Improvements
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have been fully completed and accepted by the City, including all corrective work
and warranty punch list items being completed by the Developer; (2) all financial
obligations to the City have been satisfied; and (3) the warranty period has expired.
E. It is the intent of the parties that the City at all times have available to it Security in
an amount adequate to ensure completion of all elements of the Subdivision
Improvements and other obligations of the Developer under this Agreement,
including fees or costs due to the City by the Developer. To that end and
notwithstanding anything herein to the contrary, all requests by the Developer for
a reduction or release of the Security shall be evaluated by the City in light of that
principle.
34. SUMMARY OF CASH REQUIREMENTS. The following is a summary of the cash
requirements under this Agreement which must be paid to the City prior to recording the final plat:
Park Dedication: $17,190 Special Assessments Due: $0
City Base Map Upgrading ($25.00 per parcel): $75 City Engineering Administration Escrow: $50,000 TOTAL CASH REQUIREMENTS: $67,265
35. NOTICES. Required notices to the Developer shall be in writing, and shall be either hand
delivered to the Developer, its employees or agents, or mailed to the Developer by certified mail
at the following address: 3460 Washington Drive, Suite 100, Eagan, MN 55122. Notices to the
City shall be in writing and shall be either hand delivered to the City Administrator, or mailed to
the City by certified mail in care of the City Administrator at the following address: Lake Elmo City
Hall, 3800 Laverne Avenue N. Lake Elmo, Minnesota 55042.
36. EVIDENCE OF TITLE. The Developer shall furnish the City with evidence of fee
ownership of the property being platted by way of a title commitment dated not earlier than 30
days prior to the execution of the plat.
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37. COMPLIANCE WITH LAWS. The Developer agrees to comply with all laws,
ordinances, regulations, and directives of the state of Minnesota and the City applicable to the
Subdivision. This Agreement shall be construed according to the laws of the Minnesota.
38. SEVERABILITY. In the event that any provision of this Agreement shall be held invalid,
illegal, or unenforceable by any court of competent jurisdiction, such holding shall pertain only to
such section and shall not invalidate or render unenforceable any other provision of this
Agreement.
39. NON-WAIVER. Each right, power, or remedy conferred upon the City by this Agreement
is cumulative and in addition to every other right, power or remedy, express or implied, now or
hereafter arising, or available to the City at law or in equity, or under any other agreement. Each
and every right, power, and remedy herein set forth or otherwise so existing may be exercised
from time to time as often and in such order as may be deemed expedient by the City and shall
not be a waiver of the right to exercise at any time thereafter any other right, power, or remedy.
If either party waives in writing any default or nonperformance by the other party, such waiver
shall be deemed to apply only to such event and shall not waive any other prior or subsequent
default.
40. COUNTERPARTS. This Agreement may be executed simultaneously in any number of
counterparts, each of which shall be an original and shall constitute one and the same Agreement.
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CITY OF LAKE ELMO By: ____________ __________________ Mike Pearson Its: Mayor By: __________________ _____________ Julie Johnson Its: City Clerk
STATE OF MINNESOTA ) ) ss. COUNTY OF WASHINGTON ) The foregoing instrument was acknowledged before me this ___ day of ________________, 20___, by Mike Pearson and Julie Johnson, the Mayor and City Clerk, respectively, of the City of Lake Elmo, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council.
NOTARY PUBLIC
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507745v1 SJS LA515-34
DEVELOPER
By: ___________________________________
Its: ___________________________________
STATE OF MINNESOTA ) ) ss. COUNTY OF )
The foregoing instrument was acknowledged before me this ___, day of _________________, 20___, by _______________________, the _______________________of CM PROPERTIES 94 LIMITED PARTNERSHIP, a Minnesota limited partnership on behalf of the partnership.
NOTARY PUBLIC
DRAFTED BY: City of Lake Elmo 3800 Laverne Avenue North Lake Elmo, MN 55042 (651) 747-3901
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A-1
507745v1 SJS LA515-34
EXHIBIT A TO DEVELOPMENT CONTRACT Legal Description of Property Being Final Platted Outlot A, Lakewood Crossing, according to the recorded plat thereof, Washington County, Minnesota.
B-1
507745v1 SJS LA515-34
EXHIBIT B TO DEVELOPMENT CONTRACT List of Plan Documents
The following documents prepared by Carlson McCain constitute the Plans: THOSE DOCUMENTS BY AS FOLLOWS: SHEET TITLE REVISION DATE C1 of 12 Title Sheet
C2 of 12 Existing Conditions & Removals Plan
C3 of 12 Site & Sign Plan C4 of 12 Grading, Drainage & Erosion Control Plan
C5 of 12 Stormwater Pollution Prevention Plan
C6 of 12 Utility Plan
C7 of 12 Details
C8 of 12 Details
C9 of 12 Details
C10 of 12 Details (CMP System)
C11 of 12 Details (CMP System)
C12 of 12 Turn Lane Construction
L1 of 2 Landscape Plan
L2 of 2 Landscape Details
C-1
507745v1 SJS LA515-34
EXHIBIT C TO DEVELOPMENT CONTRACT Subdivision Improvements Cost/Security Amount Estimate CONSTRUCTION CATEGORY COST 125percent
1 Grading $0 $0
2 Sanitary Sewer $25,650 $32,063
3 Watermain $52,655 $65,819
7 Surface Water Facilities
(ponds, infiltration basins, other BMPs)
$11,275 $14,094
11 Landscaping Improvements $30,000 $37,500
15 Erosion and Sedimentation Control
$16,500 $20,625
16 Right Turn Lane $47,000 $58,750
17 Developer’s Record Drawings $5,000 $6,250
TOTALS $188,080 $235,101
507745v1 SJS LA515-34
FORM OF IRREVOCABLE LETTER OF CREDIT
No.__________________
Date: ________________
TO: City of Lake Elmo
Dear Sir or Madam:
We hereby issue, for the account of (Name of Developer) and in your favor, our
Irrevocable Letter of Credit in the amount of $___________ available to you by your draft drawn on sight on the undersigned bank. The draft must: a) Bear the clause, "Drawn under Letter of Credit No.____________, dated ______________, 20___, of (Name of Bank)" ;
b) Be signed by the Mayor or City Administrator of the City of Lake Elmo. c) Be presented for payment at (Address of Bank) , on or before 4:00 p.m. on November 30, 20___. This Letter of Credit shall automatically renew for successive one-year terms unless, at least forty-five (45) days prior to the next annual renewal date (which shall be November 30 of each year), the Bank delivers written notice to the Lake Elmo City Administrator that it intends to modify the terms of, or cancel, this Letter of Credit. Written notice is effective if sent by certified mail, postage prepaid, and deposited in the U.S. Mail, at least forty-five (45) days prior to the next annual renewal date addressed as follows: City Administrator, City Hall, 3800 Laverne Ave. N. Lake Elmo Minnesota 55042 and is actually received by the City Administrator at least thirty (30) days prior to the renewal date. This Letter of Credit sets forth in full our understanding which shall not in any way be modified, amended, amplified, or limited by reference to any document, instrument, or agreement, whether or not referred to herein. This Letter of Credit is not assignable. This is not a Notation Letter of Credit. More than one draw may be made under this Letter of Credit. This Letter of Credit shall be governed by the most recent revision of the Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce Publication No. 500. We hereby agree that a draft drawn under and in compliance with this Letter of Credit shall be duly honored upon presentation.
BY:
Its
CITY OF LAKE ELMO WASHINGTON COUNTY
STATE OF MINNESOTA RESOLUTION NO. 2017-104
A RESOLUTION APPROVING A DEVELOPMENT AGREEMENT FOR THE LAKEWOOD CROSSING 2ND ADDITION UNIT DEVELOPMENT WHEREAS, the City of Lake Elmo is a municipal corporation organized and existing
under the laws of the State of Minnesota; and WHEREAS, CM Properties 94 LP, c/o MFC Properties, 3460 Washington Drive, Suite 100, Eagan, MN 55112 (“Applicant”) has previously submitted an application to the City of
Lake Elmo (“City”) for a Final Plat for Lakewood Crossing 2nd Addition Planned Unit Development (PUD); and WHEREAS, the Lake Elmo City Council considered and approved the Lakewood Crossing 2nd Addition General PUD Concept Plan on March 21, 2017; and
WHEREAS, the Lake Elmo City Council adopted Resolution 2017-063 approving the Lakewood Crossing 2nd Addition Preliminary and Final Plat and PUD Plans on June 20, 2017; and
WHEREAS, Section 153.08: Final Plat of the Lake Elmo Municipal Code requires that approval of a final plat is conditioned upon execution of a development agreement for basic improvements, public dedication, bonding, and other requirements determined necessary or appropriate by Council.
WHEREAS, the Applicant and the City have agreed to enter into such a contract and a copy of the Development Agreement was submitted to the City Council for consideration at its October 3, 2017 meeting; NOW, THEREFORE, BE IT RESOLVED THAT the City Council does hereby
approve the Developement Agreement for Lakewood Crossing 2nd Addition Final Plat and PUD Plans and authorizes the mayor and city Clerk to execute the document. Passed and duly adopted this 3rd day of October, 2017 by the City Council of the City of Lake Elmo, Minnesota.
___________________________________ Mike Pearson, Mayor
ATTEST: ____________________________________ Julie Johnson, City Clerk
STAFF REPORT
DATE: 10/3/2017 REGULAR ITEM
ITEM#: TO: City Council FROM: Emily Becker, Planning Director AGENDA ITEM: Zoning Text Amendment to allow Commercial Boarding Facilities as a Conditional Accessory Use in the Agricultural Zoning District; Zoning Map Amendment to rezone a property to Agricultural; Conditional Use Permit
request to allow a Commercial Boarding Facility as an accessory Use in the Agricultural Zoning District; and a Conditional Use Permit to Allow Expansion of an Existing Feedlot within the Shoreland District REVIEWED BY: Joan Ziertman, Planning Program Assistant
BACKGROUND:
The City Council is being asked to consider a request by Mare Affair Farm, LLC (Peter Schiltgen and Molly Schiltgen) for the following:
• A Zoning Text Amendment to allow Commercial Boarding Facility as a conditional
accessory use within the Agricultural Zoning District.
• A Zoning Map Amendment to rezone 10880 Stillwater Blvd N (PID# 14.02.292.21.11.0001) from Rural Development Transitional to Agricultural.
• A Conditional Use Permit to allow a Commercial Boarding Facility as an accessory use at the property located at 10880 Stillwater Blvd N (PID# 14.02.292.21.11.0001).
• A Conditional Use Permit for expansion to an existing feedlot within a shoreland area.
GENERAL INFORMATION:
Applicant: Mare Affair Farm, LLC
Property Owners: Schiltgen Farms Inc.
Location: 10880 Stillwater Blvd N
Existing Land Use: Single Family Residential and Agricultural
Surrounding Land Use: Vacant land zoned Rural Development Transitional to the North; Open Space Development and Sunfish Lake to West; Vacant land
zoned Rural Development Transitional to the South; and school and daycare zoned Public Facilities and Village Mixed Use, respectively, to the East.
Existing Zoning: Rural Development Transitional
Comprehensive Plan: Rural Area Development
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History: Property is 137.18 acres of a historic Dairy farm that has been such since area was settled. Property is currently used as a horse farm with animals housed in non-utilized dairy barn.
Deadline for Action: Application Complete – 8/18/2017 60 Day Deadline – 10/17/2017 Extension Letter Mailed – N/A 120 Day Deadline – N/A
Applicable Regulations: Article III – Administration and Enforcement Article XII – Specific Development Standards Article V – General Regulations Article VI – Environmental Performance Standards
Article XI – Rural Districts ISSUE BEFORE THE COUNCIL:
The Council is being asked to hold a public hearing, review and make recommendation on the
following requests:
• A Zoning Text Amendment to allow Commercial Boarding Facility as a conditional accessory use within the Agricultural Zoning District.
• A Zoning Map Amendment to rezone 10880 Stillwater Blvd N (PID# 14.02.292.21.11.0001) from Rural Development Transitional to Agricultural.
• A Conditional Use Permit to allow a Commercial Boarding Facility as an accessory use at the
property located at 10880 Stillwater Blvd N (PID# 14.02.292.21.11.0001).
• A Conditional Use Permit to allow expansion of an existing feedlot within the shoreland.
PROPOSAL DETAILS/ANALYSIS:
ZONING TEXT AMENDMENT
History-Removal of Commercial Stables from Zoning Code. On June 14, 2016, the Council voted
to remove cemeteries, commercial kennels, commercial stables, and golf courses from the Zoning Code as allowed uses. Prior to this, commercial stables were allowed as a principal conditional use in the Agricultural Zoning District. This Zoning Text Amendment was originally initiated by a request by the City to remove cemeteries as an allowed use within the Rural zoning districts, which lead to a larger look at the uses within the Rural zoning districts. During consideration of the aforementioned
request, the City also removed previously mentioned uses within the rural districts.
Justification by the Comprehensive Plan. The Comprehensive Plan specifically states that existing agricultural uses and qualifying alternative uses that preserve the open space within the community shall be support, and that these uses shall be encouraged to continue operations and to retain large
land holdings that contribute to operating efficiency. Commercial stables as accessory conditional uses would allow properties zoned Agricultural to do just this.
Use of the term Commercial Boarding Facility Instead of Commercial Stable. In order to be
considered an agricultural property by State Statute definition, the property is limited to uses as outlined in 273.13: Subd. 23.Class 2, which allows commercial boarding of horses, which may
include related horse training and riding instruction, if the boarding is done on the property that
is also used for raising pasture to graze horses or raising or cultivating other agricultural products
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as defined in clause (1). As such, the Applicant wishes to use the term Commercial Boarding
Facility rather than Commercial Stable, as was previously used within the Zoning Code.
Proposed Definition. The definition of Commercial Stable that previously existing within the Zoning Code is as follows: the boarding, breeding or raising of horses or ponies not owned by the
owner or occupant of the property or riding of horses by other than the owner or occupant of the
property and their non-paying guests. Included in this definition are riding academies. The proposed definition of Commercial Boarding Facility amends the previous definition as follows:
“The boarding, breeding or raising of horses or ponies not owned by the owner or occupant of the property, or in addition to horses owned by the owner or occupant, which may include related
horse training and riding instruction of horses by for those other than the owner or occupant of
the property and their non-paying guests. Included in this definition are riding academies.” Note:
Riding academies was eliminated from this definition, as the code does not provide a definition of riding academies, and the thought is to provide riding instruction exclusively for horses that are boarded on site, in order to prevent constant transportation of new horses in to the site.
Standards. While the definitions and allowed use categories of commercial stables were removed from the Zoning Code in 2016, the standards for commercial stables still remain. The following are the standards for commercial stables:
Commercial Kennel, Commercial Stable, or Accessory Kennel or Stable, RT, A, RR Districts. The
facility shall occupy a site at least ten (10) acres in size. Outdoor exercise areas shall be located at least 100 feet from adjacent properties; landscaping or other screening may be required.
Because of State Statute definitions, Staff also recommends that a standard be included:
Boarding must be done on property that is also used for raising pasture to graze horses or raising or
cultivating other agricultural products.
Zoning Text Amendment Proposed Language. Please see attached draft proposed Ord. 08-___ for specific proposed language.
Properties to Which This Text Amendment Would Apply. If commercial boarding facilities were
to be allowed as a conditional accessory use within the Agricultural zoning district for properties over ten acres, the attached map shows properties this zoning text amendment would affect.
ZONING MAP AMENDMENT
Rezoning. The property is currently zoned Rural Development Transitional, and the Applicant is proposing to rezone the property to Agricultural.
Allowed uses include (P=Permitted, C=Conditional, and I=Interim):
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Consistency with the Comprehensive Plan. The Comprehensive Plan guides this parcel as Rural Area Development. This category represents the large areas of rural residential development and
agricultural uses within the City. Common uses found in these areas include working farms, alternative agricultural uses as defined by City Code, and rural single family detached residences. Development in these areas requires 10+ acres, or a conditional use permit to authorize a cluster development meeting the City’s Preserved Open Space regulations. Corresponding zoning districts include Agricultural and Rural Residential.
Additionally, the property is within the Village Open Space Overlay District. Specifically, the area surrounding Sunfish Lake is designated as a Natural Resource Preservation Area, which is an area considered to be of high environmental and aesthetic value, which allows uses such as passive recreation, trails, natural areas, and other activities or uses that are consistent with passive recreation.
The remaining area of the property is designated as a Rural Preservation Area, which is an area within the Village historically utilized for agricultural purposes, and allows uses including active farming, passive recreation, trails, public gathering spaces, natural areas, natural water courses and other amenities that are consistent with agricultural use or character.
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The Comprehensive Plan specifically states that “For all parcels that are designated with rural land use categories (RAD and RS), the open space overlay does not impact the use of the property. In other words, lands that are guided and zoned for rural use may function normally under the same
rural zoning districts as before the inclusion of the open space overlay. For example, parcels that are within Rural Preservation or Natural Preservation Areas will maintain their Agricultural, Rural Residential or Rural Single Family zoning designation. The regulations of these zoning districts will remain the same regardless of the Village Open Space Overlay.”
Metropolitan Urban Service Area (MUSA). This parcel is within the City’s MUSA. It does not
make good sense for properties within the MUSA to be guided as Rural Area Development, as properties within the MUSA need to be developed at a minimum density of three units per acre. This is something that has come up in discussions regarding the City’s 2040 Comprehensive Plan update. If the property were to develop, it would require connecting to sewer, and a Comprehensive Plan
Amendment to re-guide the parcel in the Land Use Plan to a higher density use classification and then be rezoned to a higher density to accommodate the city’s overall average units per acres within the MUSA.
Stormwater Ponds. The property owner has previously been approached about stormwater ponding
to serve the Village Area in the past. A previously proposed stormwater pond on the southeast portion of the site was quite large and almost approached the existing home. The applicant was recently re-approached about this ponding and communicated that it may be amenable to work with
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the City on providing area for a stormwater pond, provided the design works for both the City and property owner.
Trail. The County’s trail plan indicates a trail along Lake Elmo Avenue (CSAH 17). The Applicant
has indicated that providing a trail would not be in the property’s best interest, as the increase in foot traffic could negatively affect the horses.
CONDITIONAL USE PERMIT – COMMERCIAL BOARDING FACILITY
Definition Comparison Private vs. Commercial.
• Stable, Private. The keeping, breeding, or raising of horse or ponies exclusively for the personal use and enjoyment of the owner or occupant of the property or the riding of horses or ponies by the owner or occupant of the property and their guests.
• Commercial Boarding Facility. The Zoning Code used to define a commercial stable as the boarding, breeding or raising of horses or ponies not owned by the owner or occupant of the property or riding of horses by other than the owner or occupant of the property and
their non-paying guests. Included in this definition are riding academies.
Because the applicant has specifically requested that there be horses on the property other than the owner’s horses, including the trainer’s horses, farm hands’ horses or boarders to offset the operating costs, the proposed use is a commercial boarding facility, which, if the previously discussed Zoning Text Amendment and Zoning Map Amendment are approved, would be
allowed as a conditional use within the Agricultural Zoning District.
Property Size. The property consists of 158.18 acres. The City has received a Concept Planned Unit Development Plan for the properties to the north, which will include a subdivision of the subject property, decreasing the total number of acres of the subject property. The Comprehensive Plan Land Use Map, below, shows generally how the parcel will be split, though the exact remaining number of acres is unknown. The recommended Zoning Text Amendment creates a standard that a property housing a commercial stable be at least ten acres in size, and this parcel would meet that standard.
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Proposed Buildings. The applicant is proposing to remove two existing sheds and construct 72’ x 200’
indoor riding arena with an attached 72’ x 96’ horse barn, a 3000 square foot commodities storage building and a 3000 square foot equipment storage building. The barn would have 12 box stalls, wash stalls, groom stalls, tack room, rest rooms, office/lounge and short term feed and hay storage, and would
primarily house owner’s horses. There may be some non-owner’s horses housed i.e.: trainer’s horses, farm hands horses or boarders to offset operating costs.
Setbacks. The Applicant has indicated that the proposed setbacks of the agricultural buildings are at least
200 feet as required by the Zoning Code. Outdoor exercise areas are shown to located at least 100 feet from adjacent properties as required.
Septic Permit. Because the applicant is proposing bathrooms in the barn area, a septic permit will likely be required by the county. As such, it is a recommended condition of approval that the applicant obtain all applicable, required permits from Washington County.
Number of Accessory Structures. The size and number of accessory structures on rural properties of over 40 acres is generally unregulated. To be allowed additional accessory buildings beyond two
total buildings, the buildings must be agricultural buildings as long as the buildings meet the
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definition of agricultural buildings, which are defined as accessory buildings or clearly serve an agricultural purpose by the judgement of the city. The Building Official comments below outline that the proposed indoor riding arena, horse barn, commodities storage building and equipment storage
building would be considered agricultural buildings, provided they include no living space or have spectators. Impervious Surface. 8,541 square feet of current impervious surface will be removed through the removal of two sheds from the site. The proposed riding arena, attached barn, and two storage
buildings will total 29,379 square feet, resulting in a 20,835 square feet net increase of impervious surface. Addition of impervious surface of over 6,000 square feet requires a Valley Branch Watershed District permit.
Parking Requirements. 1 space per employee on the largest shift plus 1 space per 6 animals. The site
currently has sufficient parking spaces for a residential use, as two spaces are required for residential uses, and there exists a driveway and garage on the property. There will be one trainer and 15 horses, so four additional parking spaces are needed. The Applicant has indicated there will be ten parking spaces in
front of the barn, and so this standard has been met.
Animal Ordinance. Section 95.060 of Chapter 95: Animals of the City Code prohibits horses from traveling on any hard-surfaced street or public road or within any public right-of-way and running at
large. The number of horses one property may have is limited to one horse per two grazable acres. It is a recommended condition of approval that the applicant provide the number of grazable acres, verified by a reliable source, and that the number of horses allowed be based on this number.
Manure Management. Manure will have substantial amounts of absorptive bedding materials mixed in with manure. Manure will be stored/composted in a concrete bunker until conditions are favorable for manure to be spread for fertilizer on adjacent fields. The University of Minnesota Extension Services recommends this methodology, provided proper composting practice is followed. The applicant has not provided the location of where manure will be stockpiled and composted. It is a recommended condition of approval that the applicant provide clarification regarding the composting activities and locations on the site so that the conditional use permit accurately reflects activities occurring on the site.
Landscaping. The narrative indicates that none of the current landscaping items will be removed, there will be no additional landscape items added. It is a standard that landscaping may be required to screen outdoor riding areas.
Caretakers. The narrative indicates that caretakers will live on the site. There will be no additional human living space in the new building. Caretakers will either live in one of the two Applicant’s existing homes (one on the north side of Stillwater Blvd and one on the south side of Stillwater Blvd (on a different parcel)), or they will live offsite.
Shoreland District – Minnesota Department of Natural Resources (MNDNR) Review. The application was sent the MNDNR, as the proposed commercial boarding facility is within the Sunfish Lake shoreland district. The MNDNR replied that they had no comment regarding the application. The proposed buildings setbacks are well over the required 100 feet from the Ordinary High Water Level of Sunfish Lake (924).
Minnesota Pollution Control Agency (MPCA) Review. The MPCA reviewed the application and
confirmed that feedlot permit is not required under Minnesota Rules Chapter 7020 (feedlot rules) of a feedlot unless there will be 300 or more horses on the site. The MPCA did, comment, however that the rules prohibit a feedlot, including a stable or paddock, within a shoreland or floodplain. The Chapter 7020
definition is below. The City’s Zoning Code’s Shoreland Overlay Management District does allow
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expansion of an existing feedlot, however. This is explained further in the next section entitled
Conditional Use Permit – Expansion of an Existing Feedlot within a Shoreland.
Subp. 3. Animal feedlot.
"Animal feedlot" means a lot or building or combination of lots and buildings intended for the confined feeding, breeding, raising, or holding of animals and specifically designed as a
confinement area in which manure may accumulate, or where the concentration of animals is such that a vegetative cover cannot be maintained within the enclosure. For purposes of these parts, open lots used for the feeding and rearing of poultry (poultry ranges) shall be considered to be animal feedlots. Pastures shall not be considered animal feedlots under these parts.
Traffic - Washington County Review. The application was sent to Washington County for review. The
narrative indicates that the existing driveway will be utilized without the need for any modifications. Additional truck traffic loads will be limited to horse transport vehicles and purchased feed/ bedding delivery trucks. Additional truck traffic will be less than 2 per week. Care takers will live on the property, so passenger vehicle traffic will be no more than a typical residential driveway. The farm is dissected by Stillwater Blvd. Currently equipment and commodities are located on both sides of Stillwater Blvd. which requires movement of farm equipment across Stillwater. Proposed plan would locate commodities and equipment on north side of Stillwater Blvd. to reduce the need for farm equipment to cross Stillwater Blvd. Washington County was sent the application but at the time of writing this memo, Staff has not received review comments but had received clarifying questions, which were answered immediately. It is a recommended condition of approval that conditions outlined in a Washington County Review Memo be adhered to.
Building Official Review. The Building Official reviewed the initial application, which showed that there would be a break room with a kitchen, which could be interpreted to be a living space, which would not allow the building to be considered an agricultural building by state statute. It was also unclear at the time if there would be spectators in the arena. Connection to water and sufficient sanitary sewer, as well as proper fire protection requirements per the use and occupancy per the
Minnesota State Building Code (including fire sprinkler and fire hydrants) and apparatus access to and around the site would be required. The plans have since been updated, and the area has been converted to a meeting room as shown on the plans being reviewed tonight. Additionally, the applicant has indicated that there will be no spectators or public events in the arena. The Building
Official has indicated that the updated plans and clarification about spectators and stated that the building may be considered an agricultural building according to the definition below from state statute. A recommended condition of approval is that there be no spectators or public events in the arena.
Engineering Comments. The City Engineer has reviewed the proposed conditional use permit and summarily has the following comments. Comments can be viewed on the attached 10880 Stillwater Blvd – Mare Affair Farm Site Improvements Plan Review memorandum dated August 18, 2017.
• Engineering Review. Will be required for engineering site improvements.
• Stormwater Management.
o The applicant must submit a copy of the Valley Branch Watershed District (VBWD)
permit application, hydroCAD model and permit approval to the City. o A stormwater management plan (SWMP) is not required by the City, as the new impervious surface is less than one acre. o Site improvements will require a grading plan and erosion control plan meeting all City and VBWD requirements.
• Water Supply. Any site plan must include the location of all wells on the site.
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• Wastewater Management. Any site plan must include the location of capacity of any on‐site
septic systems.
• Streets and Transportation. The application should be provided to Washington County Public Works for review and comment.
Recommended Findings. In order to approve a conditional use permit, the city is required to find the proposal compliant with the following (staff comments in bold): 1. The proposed use will not be detrimental to or endanger the public health, safety, comfort,
convenience or general welfare of the neighborhood or the city. The proposed use will not increase truck traffic my more than two trucks per week. There currently exist horses on the property, and the building will house them indoors, decreasing the likelihood that horses will escape. 2. The use or development conforms to the City of Lake Elmo Comprehensive Plan. The
proposal is consistent with the Comprehensive Plan in that the property is guided for Rural Area Development and is within the a Rural Preservation Area, which allow for uses such as passive recreation, alternative agricultural uses, public gathering spaces and other amenities that are consistent with agricultural use or character. 3. The use or development is compatible with the existing neighborhood. The use is compatible with the existing neighborhood, as the property is currently used as a farm and houses horses. The proposed use will be an expansion of the existing use. 4. The proposed use meets all specific development standards for such use listed in Article 7 of
this Chapter. The proposed use meets specific development standards currently set forth within the Zoning Code for a commercial stable in that it is at least ten acres in size, and the City does not find it necessary that the outdoor exercise area be screened through landscaping or other means. 5. If the proposed use is in a flood plain management or shoreland area, the proposed use meets
all the specific standards for such use listed in Chapter 150, §150.250 through 154.800 (Shoreland Regulations) and Chapter 152 (Flood Plain Management). The proposed use is within the City’s shoreland, which prohibits new feedlots. Expansions to an existing feedlot are allowed by conditional use permit.
6. The proposed use will be designed, constructed, operated and maintained so as to be compatible in appearance with the existing or intended character of the general vicinity and will not change the essential character of that area. The proposed project will be similar in character and design to the existing home and barn on the property 7. The proposed use will not be hazardous or create a nuisance as defined under this Chapter to
existing or future neighboring structures. The proposed use will not be hazardous or create a nuisance on the property provided all the rules and regulations set forth by the City and other applicable agencies are met and all applicable permits are obtained. 8. The proposed use will be served adequately by essential public facilities and services,
including streets, police and fire protection, drainage structures, refuse disposal, water and sewer systems and schools or will be served adequately by such facilities and services provided by the persons or agencies responsible for the establishment of the proposed use. The applicant has not provided a hydroCAD model; information on potable water
supply to the facilities; information on wastewater management for the facilities; and slightly increases driveway use to an existing private driveway. It is a recommended condition of approval that the applicant include this information on updated plans to be reviewed and approved by the City Engineer so that this may be determined. Provided
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this information is supplied, reviewed and approved by the City Engineer and other applicable agencies, the use will be adequately served by the aforementioned. 9. The proposed use will not create excessive additional requirements at public cost for public
facilities and services and will not be detrimental to the economic welfare of the community. The proposed use will not create additional requirements for public facilities and services, provided the use does not include spectators. 10. The proposed use will not involve uses, activities, processes, materials, equipment and conditions of operation that will be detrimental to any persons, property or the general
welfare because of excessive production of traffic, noise, smoke, fumes, glare or odors. Traffic to the site is expected to be minimal, and visits are expected to be short. Minimal noise is expected to come from the site, short of the sounds of unloading and loading items. Hazardous materials are prohibited from being stored on site, and lighting has been evaluated and determined to not cause a nuisance as proposed. 11. Vehicular approaches to the property, where present, will not create traffic congestion or interfere with traffic on surrounding public thoroughfares. The Applicant has indicated that additional truck traffic will increase by only two trips per week. 12. The proposed use will not result in the destruction, loss or damage of a natural or scenic feature of major importance. The proposed use will be a modernization and expansion of an existing scenic feature within Lake Elmo. Recommended Conditions. Based on the aforementioned, Staff and the Planning Commission
recommend approval of the requested Conditional Use Permit for a Commercial Boarding Facility for the property located at 10880 Stillwater Blvd, subject to the following conditions of approval:
1) The City shall approve the Zoning Text Amendment to allow commercial boarding facilities as conditional accessory uses within the Agricultural zoning district; the Zoning Map
Amendment to rezone the property from Rural Development Transitional to Agricultural; and a Conditional Use Permit to allow for an expansion to an existing feedlot within the shoreland district. 2) Applicant shall obtain all necessary permits including but not limited to all applicable city
permits (building, grading, sign, etc.), MPCA approvals and/or permits, NPDES/SWPPP
permits, Valley Branch Watershed District (VBWD) approval. 3) Applicant must address all engineering review comments outlined in the Engineering Memo dated August 18, 2017. 4) Applicant shall update the plans to address potable water supply to the facilities, indicating
the location of all wells on site; include the location and capacity of any on-site septic systems; and include grading and erosion control plan meeting all City and VBWD requirements. All plans must be approved by the City. 5) The Applicant shall provide written confirmation from the Minnesota Pollution Control
Agency (MPCA) that no MPCA permits are required for the proposed use. The Applicant shall obtain all applicable, required MPCA permits and/or approvals and submit a copy to the City. 6) The Applicant shall obtain a septic permit from Washington County if necessary or provide verification from Washington County that a septic permit is not required.
7) The Applicant shall provide the number of grazable acres, verified by a reliable source, and the number of horses allowed shall be based on this information, as allowed by the City’s Animal Ordinance. Any expansion to the feedlot will require an amendment to this Conditional Use Permit.
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8) The Applicant shall adhere to requirements outlined in the Washington County Review memo dated September 7, 2017. 9) Any significant change to the site plan dated September 6, 2017 shall require an amendment
to this conditional use permit. 10) A manure management plan clarifying composting activities and locations on the site shall be provided to the city, and such activities on the site shall be carried out according to this plan. 11) The arena must not be available to spectators and must not include bleachers or seating of any kind. Public events or shows will require an amendment to this Conditional Use Permit.
CONDITIONAL USE PERMIT – EXPANSION OF AN EXISTING FEEDLOT WITHIN A SHORELAND
Reason for Request. As previously mentioned, expansion of an existing feedlot within a shoreland requires a conditional use permit per Section 154.800: Shoreland Management Overlay District of
the Zoning Code. The specific language regarding expansion of existing feedlots is as follows:
c. New animal feedlots are not allowed in shoreland. Modifications or expansions to existing feedlots or resumption of old feedlots are conditional uses and must meet the following standards. Responses
to these standards in regards to the proposed application are italicized below:
i. Feedlots must be designed consistent with Minnesota Rules Chapter 7020;
Staff Comment: It is a recommended condition of approval that the applicant submit
and have reviewed by the MPCA to determine there are no conflicts with their
regulations a Notice of Construction or Expansion of an Animal Feedlot with less than 300 Animal Units. The applicant has provided the MPCA such notice, but at the time of writing this memo, the notice was incomplete, as the MPCA required more information.
ii. Feedlots must not further encroach into the existing ordinary high water level setback or the bluff impact zone and must not expand to a capacity of 1,000 animal units or more; and,
Staff Comment: The proposed expansion to a feedlot does not further encroach into
the existing ordinary high water level setback or bluff impact zone and is not
expanding to a capacity of 1,000 animal units.
iii. Old feedlots not currently in operation may resume operation consistent with Minnesota
Statute Section 116.0711.” Staff Comment: The feedlot is currently in operation, so this standard does not apply. Recommended Findings. In order to approve a conditional use permit, the city is required to find
the proposal compliant with the following (staff comments in bold): 1. The proposed use will not be detrimental to or endanger the public health, safety, comfort, convenience or general welfare of the neighborhood or the city. Provided the MPCA sees no issues with the proposed expansion, the proposed expansion of an existing feedlot will not be detrimental to or endanger the public health, safety, comfort, convenience or general welfare of the neighborhood or the city. 2. The use or development conforms to the City of Lake Elmo Comprehensive Plan. The proposal is consistent with the Comprehensive Plan in that the property is guided
for Rural Area Development and is within the a Rural Preservation Area, which allow for uses such as passive recreation, alternative agricultural uses, public gathering spaces and other amenities that are consistent with agricultural use or character. Provided the MPCA sees no issues and a Valley Branch Watershed District permit is obtained, it will not negatively impact natural resources.
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3. The use or development is compatible with the existing neighborhood. The use is compatible with the existing neighborhood, as the property is currently used as a farm and houses horses. The proposed use will be an expansion of the existing use. 4. The proposed use meets all specific development standards for such use listed in Article 7 of this Chapter. The proposed expansion meets standards set forth for expansions to existing feedlots as set forth in Section 154.800 (C) (6) (c) of the Zoning Code. 5. If the proposed use is in a flood plain management or shoreland area, the proposed use meets all the specific standards for such use listed in Chapter 150, §150.250 through
154.800 (Shoreland Regulations) and Chapter 152 (Flood Plain Management). The property is located within the City’s Shoreland District but meets standards required for an expansion to an existing feedlot within the City’s shoreland district. 6. The proposed use will be designed, constructed, operated and maintained so as to be
compatible in appearance with the existing or intended character of the general vicinity and will not change the essential character of that area. The proposed project will be similar in character and design to the existing home and barn on the property 7. The proposed use will not be hazardous or create a nuisance as defined under this
Chapter to existing or future neighboring structures. The proposed use will not be hazardous or create a nuisance on the property provided all the rules and regulations set forth by the City and other applicable agencies are met and all applicable permits are obtained. 8. The proposed use will be served adequately by essential public facilities and services,
including streets, police and fire protection, drainage structures, refuse disposal, water and sewer systems and schools or will be served adequately by such facilities and services provided by the persons or agencies responsible for the establishment of the proposed use. The applicant has not provided a hydroCAD model; information on
potable water supply to the facilities; information on wastewater management for the facilities; and slightly increases driveway use to an existing private driveway. It is a recommended condition of approval that the applicant include this information on updated plans to be reviewed and approved by the City Engineer so that this may be determined. Provided this information is supplied, reviewed and approved by the City Engineer and other applicable agencies, the use will be adequately served by the aforementioned. 9. The proposed use will not create excessive additional requirements at public cost for public facilities and services and will not be detrimental to the economic welfare of the
community. The proposed use will not create additional requirements for public facilities and services, provided the use does not include spectators. 10. The proposed use will not involve uses, activities, processes, materials, equipment and conditions of operation that will be detrimental to any persons, property or the general
welfare because of excessive production of traffic, noise, smoke, fumes, glare or odors. Traffic to the site is expected to be minimal, and visits are expected to be short. Minimal noise is expected to come from the site, short of the sounds of unloading and loading items. Hazardous materials are prohibited from being stored on site, and lighting has been evaluated and determined to not cause a nuisance as proposed. 11. Vehicular approaches to the property, where present, will not create traffic congestion or interfere with traffic on surrounding public thoroughfares. The Applicant has indicated that additional truck traffic will increase by only two trips per week.
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12. The proposed use will not result in the destruction, loss or damage of a natural or scenic feature of major importance. The proposed use will be a modernization and expansion of an existing scenic feature within Lake Elmo. Recommended Conditions. Based on the aforementioned, Staff and the Planning Commission recommend approval of the requested Conditional Use Permit for expansion to an existing feedlot for the property located at 10880 Boulevard North, subject to the following conditions:
1. The Applicant shall provide the Minnesota Pollution Control (MPCA) a complete Notice of
Construction or Expansion of an Animal Feedlot with less than 300 Animal Units and provide the City proof from the MPCA that there are no issues with this expansion. 2. Applicant must address all engineering review comments outlined in the Engineering Memo dated August 18, 2017.
Planning Commission Review. The Planning Commission reviewed the proposed Zoning Text Amendment, Zoning Map Amendment and two Conditional Use Permits at its meeting on September 11, 2017. The Planning Commission had the following comments:
• There was concern about the manure storage and that it should be located outside of the
shoreland district. However, it was ultimately decided as a majority that requiring manure storage outside of the shoreland would cause difficulty for the applicant in dealing with transporting the manure to a fairly far distance from the barn.
• That a finding should be added to the Conditional Use Permit for the Commercial Boarding Facility that the parcel should be removed from the MUSA. This was added to the proposed
Resolution approving the Conditional Use Permit for the Commercial Boarding Facility, attached.
• That the outdoor exercise area does not need to be screened with landscaping or other means.
• Three people spoke at the public hearing: one questioned impact to his landlocked parcel and two expressed support of the project.
• The Commission recommended approval of the proposed Zoning Text Amendment, Zoning Map Amendment and two Conditional Use Permits subject to recommended conditions of
approval, all with votes of 7-0.
RECOMMENDATION:
Staff and the Planning Commission recommend approval of the requested Zoning Text Amendment, Zoning Map Amendment, and Conditional Use Permits, subject to applicable recommended conditions of approval as recommended by Staff. The Staff-recommended recommendation may be
made through the following motions:
“Move to adopt Ordinance 08-188, approving a Zoning Text Amendment to allow Commercial
Boarding Facility as a conditional accessory use within the Agricultural Zoning District.”
“Move to adopt Ordinance 08-187 approving a Zoning Map Amendment to rezone 10880 Stillwater Blvd N (PID# 14.02.292.21.11.0001) from Rural Development Transitional to Agricultural.”
“Move to adopt Resolution 2017-106, approving a Conditional Use Permit to allow a Commercial
Boarding Facility as an accessory use for the property located at 10880 Stillwater Blvd N (PID# 14.02.292.21.11.0001), subject to the recommended conditions of approval.”
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“Move to adopt Resolution 2017-105, approving a Conditional Use Permit to allow expansion of an existing feedlot within the shoreland for the property located at 10880 Stillwater Blvd N (PID#
14.02.292.21.11.0001), subject to the recommended conditions of approval.”
ATTACHMENTS:
• CUP Application and Materials
• Engineering Comments dated 8/18/17
• Map Showing Agricultural Properties Over Ten Acres in Size
• Ord. 08-188 Adding Commercial Boarding Facility as Conditional Accessory Use
• Ord. 08-187 Zoning Map Amendment to Rezone the Property from Rural Development Transitional to Agricultural
• Resolution 2017-106 Approving a Conditional Use Permit to Allow a Commercial Boarding Facility as An Accessory Use
• Resolution 2017105 Approving a Conditional Use Permit to Allow Expansion of an Existing
Feedlot within the Shoreland
PAGE 1 of 1
MEMORANDUM
Date: August 18, 2017
To: Emily Becker, Planning Director Re: 10880 Stillwater Blvd –Mare Affair Farm
Cc: Site Improvements Plan Review
From: Jack Griffin, P.E., City Engineer
The following plans for 10880 Stillwater Boulevard were received on August 18, 2017 consisting of the following
documentation:
Narrative for Site upgrades, not dated.
Site Plan; not dated, no identification of site improvements, or preparer.
Certificate of Survey dated December 12, 2014 prepared by Folz, Freeman and Erickson, Inc.
Engineering has reviewed the information submitted have the following review comments:
1. The application does not include engineering documents for review. As the application moves forward and
engineering site improvements are submitted additional engineering reviews will be required.
2. Stormwater Management. The proposed improvements will create 29,379 sq. ft. of new impervious surface,
eliminate 8,541 sq. ft. of impervious surface for a net increase of 20,835 sq. ft or 0.63 acres.
A VBWD permit will be required for the proposed improvements. A copy of the VBWD permit
application, hydroCAD model and permit approvals, once received, must be submitted to the City.
A storm water management plan (SWMP) is not required by Lake Elmo ordinance since the new
impervious surface is less than 1 acre.
The site improvements will require a grading plan and erosion control plan meeting all City and VBWD
requirements.
3. Water supply. The application does not address potable water supply to the facilities, whether public or
private. Any site plan must include the location of all wells on the site.
4. Wastewater management. The application does not address sanitary sewer and on‐site wastewater septic
systems for the facilities. Any site plan must include the location of capacity of any on‐site septic systems.
5. Streets and Transportation. The application does not include public streets or access changes to public
streets. The application does increase driveway use to an existing private driveway to CSAH 14 (Lake Elmo
Avenue). The application should be provided to Washington County Public Works for review and comment.
FOCUS ENGINEERING, inc.
Cara Geheren, P.E. 651.300.4261
Jack Griffin, P.E. 651.300.4264
Ryan Stempski, P.E. 651.300.4267
Chad Isakson, P.E. 651.300.4285
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1
CITY OF LAKE ELMO COUNTY OF WASHINGTON
STATE OF MINNESOTA ORDINANCE NO. 08-188 AN ORDINANCE AMENDING THE LAKE ELMO CITY CODE OF ORDINANCES BY
ADDING COMMERCIAL BOARDING FACILITY AS A CONDITIONAL ACCESSORY USE WITHIN THE AGRICULTURAL ZONING DISTRICT.
SECTION 1. The City Council of the City of Lake Elmo hereby amends Title XV: Land Usage; Chapter 154: Zoning Code; Article II; Section 154.012; Subd. (B) (12) by adding
definition of Commercial Boarding Facility:
The boarding, breeding or raising of horses or ponies not owned by the owner or occupant of the property in addition to horses owned by the owner or occupant, which may include related horse training and riding instruction for those other than the owner or occupant of the property and their non-paying guests.
SECTION 2. The City Council of the City of Lake Elmo hereby amends Title XV: Land Usage; Chapter 154: Zoning Code; Article XI: Rural Districts; Section 154.401: Permitted, Conditional, and Interim Uses; Table 9-1: Permitted, Conditional, and Interim Uses, Rural
Districts to read as follows.
Accessory Uses RT A RR RS RE
Bed and Breakfast C C C - - 154.012 (B) (12)
Domestic Pets P P P P P 154.012 (B) (12)
Family Day Care P P P P P 154.012 (B) (12)
Home Occupation P P P P P 154.012 (B) (12)
Kennel, Private C C C - - 154.012 (B) (12)
Solar Equipment P P P P P 154.310 (C)
Stable, Private C C C - - 154.012 (B) (12)
Commercial Boarding Facility - C - - - 154.404 (I)
Swimming Pools, Hot Tubs, Etc. P P P P P 154.012 (B) (12)
Temporary Sales P P P P P 154.012 (B) (12)
SECTION 3. The City Council of the City of Lake Elmo hereby amends Title XV: Land Usage; Chapter 154: Zoning Code; Article XI: Rural Districts; Section 154.404: Site Design and Development Standards, to read as follows.
I. Commercial Kennel, Commercial Stable Boarding Facility , or Accessory Kennel or Stable, RT, A,
RR Districts. The facility shall occupy a site at least ten (10) acres in size. Outdoor exercise areas
shall be located at least 100 feet from adjacent properties; landscaping or other screening may be
required. Boarding within commercial boarding facilities must be done on property that is also used
for raising pasture to graze horses or raising or cultivating other agricultural products.
SECTION 4. Effective Date. This ordinance shall become effective immediately upon adoption and publication in the official newspaper of the City of Lake Elmo.
2
SECTION 5. Adoption Date. This Ordinance 08-188 was adopted on this ______ day of ___
2017, by a vote of ___ Ayes and ___ Nays.
LAKE ELMO CITY COUNCIL
_________________________________ Mike Pearson, Mayor
ATTEST:
_________________________________
Julie Johnson, City Clerk
This Ordinance 08-188 was published on the ____ day of ___________________, 2017.
CITY OF LAKE ELMO COUNTY OF WASHINGTON
STATE OF MINNESOTA ORDINANCE NO. 08-187 AN ORDINANCE TO AMEND THE LAKE ELMO CITY CODE
BY AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF LAKE ELMO The City Council of the City of Lake Elmo ordains that Lake Elmo City Code, Section 154.032 Zoning District Map, of the Municipal Code, shall be amended by adding
Ordinance No. 08-__, as follows:
Section 1: Zoning Map Amendment. The following property with the PID# 14.029.21.11.0001 (Property) is hereby rezoned from RT – Rural Development Transitional to A – Agricultural, subject to the condition outlined in Section 2 of this
Ordinance:
NE1/4 OF SEC 14 SUBJECT TO A HIGHWAY EASEMENT FOR COUNTY STATE AID HIGHWAY 17 OVER EAST 50.00 FEET THEREOF AS DESCRIBED IN SAID BOOK 258
OF DEEDS PAGES 39 AND 40-ALSO SUBJECT TO A HIGHWAY EASEMENT FOR TRUNK HIGHWAY 5 AS DESCRIBED IN BOOK 246 OF DEEDS PAGE 592 Section 14 Township 029 Range 021
Section 2: The City Council of the City of Lake Elmo approves the aforementioned Zoning Map Amendment, subject to the following condition: 1) If the Property develops, the City must approve a Comprehensive Plan
Amendment to either remove the property from the Metropolitan Urban Service
Area (MUSA), and the Property must be developed as an Open Space Preservation Planned Unit Development, or, alternatively, the City may approve a Comprehensive Plan Amendment to re-guide the Property to an Urban Residential Land Use designation as well as a Zoning Map Amendment to re-
zone the Property to a related Urban Residential zoning district if the Property is
developed within the MUSA. Section 3: The City Council of the City of Lake Elmo also hereby ordains that the Zoning Administrator shall make the applicable changes to the official zoning map of the
City of Lake Elmo.
Section 4: Effective Date. This ordinance shall become effective immediately upon adoption and publication in the official newspaper of the City of Lake Elmo.
This Ordinance No. 08-187 was adopted on this 3rd day of October 2017, by a vote of
__ Ayes and __ Nays. _____________________________ Mike Pearson, Mayor
ATTEST:
___________________________ Julie Johnson, City Clerk
Resolution 2017-106 1
CITY OF LAKE ELMO WASHINGTON COUNTY
STATE OF MINNESOTA RESOLUTION 2017-106 A RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR A COMMERCIAL
BOARDING FACILITY FOR THE PROPERTY LOCATED AT 10880 STILLWATER
BOULEVARD NORTH WHEREAS, the City of Lake Elmo is a municipal corporation organized and existing
under the laws of the State of Minnesota; and
WHEREAS, Mare Affair Farm, LLC, 10880 Stillwater Blvd N, Lake Elmo, MN 55042 (the “Applicant”) has submitted an application to the City of Lake Elmo (the “City”) for a Conditional Use Permit for a commercial boarding facility for the property located at 10880
Stillwater Blvd N (PID# 14.029.21.11.0001) (the “Property”); and
WHEREAS, notice has been published, mailed and posted pursuant to the Lake Elmo Zoning Ordinance, Section 154.102; and WHEREAS, the Lake Elmo Planning Commission held a public hearing on said matter
on September 11, 2017; and WHEREAS, the Lake Elmo Planning Commission has submitted its report and recommendation to the City Council as part of a Staff Memorandum dated October 3, 2017, and
WHEREAS, the City Council considered said matter at its October 3, 2017 meeting. NOW, THEREFORE, based on the testimony elicited and information received, the City Council makes the following:
FINDINGS 1) That the procedures for obtaining said Conditional Use Permit are found in the Lake Elmo Zoning Ordinance, Section 154.106.
2) That all the submission requirements of said Section 154.106 have been met by the Applicant. 3) That the proposed Conditional Use Permit includes the following components:
a) A Conditional Use Permit for a commercial boarding facility for the property located at 10880 Stillwater Blvd N.
Resolution 2017-106 2
4) That the Conditional Use Permit for a commercial boarding facility will be for the
Property legally described as follows: NE1/4 OF SEC 14 SUBJECT TO A HIGHWAY
EASEMENT FOR COUNTY STATE AID HIGHWAY 17 OVER EAST 50.00 FEET THEREOF AS DESCRIBED IN SAID BOOK 258 OF DEEDS PAGES 39 AND 40-ALSO SUBJECT TO A HIGHWAY EASEMENT FOR TRUNK HIGHWAY 5 AS DESCRIBED IN BOOK 246 OF DEEDS PAGE 592 SECTION 14 TOWNSHIP 029 RANGE 021.
5) The proposed use will not be detrimental to or endanger the public health, safety, comfort, convenience or general welfare of the neighborhood or the city. The proposed use will not increase truck traffic my more than two trucks per week. There currently exist horses on the property, and the building will house them indoors, decreasing the likelihood that horses will escape. 6) The use or development conforms to the City of Lake Elmo Comprehensive Plan. The proposal is consistent with the Comprehensive Plan in that the property is guided for
Rural Area Development and is within the a Rural Preservation Area, which allows for uses such as passive recreation, alternative agricultural uses, public gathering spaces and other amenities that are consistent with agricultural use or character. 7) The use or development is compatible with the existing neighborhood. The use is
compatible with the existing neighborhood, as the property is currently used as a farm and houses horses. The proposed use will be an expansion of the existing use. 8) The proposed use meets all specific development standards for such use listed in Article 7 of this Chapter. The proposed use meets specific development standards currently set forth
within the Zoning Code for a commercial stable in that it is at least ten acres in size, and the City does not find it necessary that the outdoor exercise area be screened through landscaping or other means.
9) If the proposed use is in a flood plain management or shoreland area, the proposed use meets all the specific standards for such use listed in Chapter 150, §150.250 through 154.800 (Shoreland Regulations) and Chapter 152 (Flood Plain Management). The proposed use is within the City’s shoreland, which prohibits new feedlots. Expansions to an existing feedlot are allowed by conditional use permit. 10) The proposed use will be designed, constructed, operated and maintained so as to be compatible in appearance with the existing or intended character of the general vicinity and will not change the essential character of that area. The proposed project will be similar in
character and design to the existing home and barn on the property. 11) The proposed use will not be hazardous or create a nuisance as defined under this Chapter to existing or future neighboring structures. The proposed use will not be hazardous or create
a nuisance on the property provided all the rules and regulations set forth by the City and other applicable agencies are met and all applicable permits are obtained. 12) The proposed use will be served adequately by essential public facilities and services, including streets, police and fire protection, drainage structures, refuse disposal, water and sewer systems and schools or will be served adequately by such facilities and services
provided by the persons or agencies responsible for the establishment of the proposed use.
Resolution 2017-106 3
ProvThe applicant has not provided a hydroCAD model; information on potable water supply to the facilities; information on wastewater management for the facilities; and slightly increases driveway use to an existing private driveway. It is a recommended condition of approval that the applicant include this information on updated plans to be reviewed and approved by the City Engineer so that this may be determined. Provided this information is supplied, reviewed and approved by the City Engineer and other applicable agencies, the use will be adequately served by the aforementioned.
13) The proposed use will not create excessive additional requirements at public cost for public facilities and services and will not be detrimental to the economic welfare of the community. The proposed use will not create additional requirements for public facilities and services, provided the use does not include spectators. 14) The proposed use will not involve uses, activities, processes, materials, equipment and conditions of operation that will be detrimental to any persons, property or the general welfare because of excessive production of traffic, noise, smoke, fumes, glare or odors.
Traffic to the site is expected to be minimal, and visits are expected to be short. Minimal noise is expected to come from the site, short of the sounds of unloading and loading items. Hazardous materials are prohibited from being stored on site, and lighting has been evaluated and determined to not cause a nuisance as proposed.
15) Vehicular approaches to the property, where present, will not create traffic congestion or interfere with traffic on surrounding public thoroughfares. The Applicant has indicated that additional truck traffic will increase by only two trips per week.
16) The proposed use will not result in the destruction, loss or damage of a natural or scenic feature of major importance. The proposed use will be a modernization and expansion of an existing scenic feature within Lake Elmo.
17) That the City should consider removing this property from the Metropolitan Urban Service
Area in order to preserve the property as an agricultural use. 18) That the Applicant has expressed interest in allowing the City to utilize a portion of the property as stormwater ponding and will further explore these options with Staff.
CONCLUSIONS AND DECISION
Based on the foregoing, the Applicant’s application for a Conditional Use Permit for a self-service storage facility and outdoor vehicle storage is granted, subject to the following conditions:
1) The City shall approve the Zoning Text Amendment to allow commercial boarding facilities as conditional accessory uses within the Agricultural zoning district; the Zoning Map Amendment to rezone the property from Rural Development Transitional to Agricultural; and a Conditional Use Permit to allow for an expansion to an existing feedlot within the
shoreland district.
Resolution 2017-106 4
2) Applicant shall obtain all necessary permits including but not limited to all applicable city permits (building, grading, sign, etc.), MPCA approvals and/or permits, NPDES/SWPPP permits, Valley Branch Watershed District (VBWD) approval.
3) Applicant must address all engineering review comments outlined in the Engineering Memo dated August 18, 2017. 4) Applicant shall update the plans to address potable water supply to the facilities, indicating the location of all wells on site; include the location and capacity of any on-site septic
systems; and include grading and erosion control plan meeting all City and VBWD requirements. All plans must be approved by the City. 5) The Applicant shall provide written confirmation from the Minnesota Pollution Control
Agency (MPCA) that no MPCA permits are required for the proposed use. The Applicant shall obtain all applicable, required MPCA permits and/or approvals and submit a copy to the City.
6) The Applicant shall obtain a septic permit from Washington County if necessary or provide verification from Washington County that a septic permit is not required. 7) The Applicant shall provide the number of grazable acres, verified by a reliable source, and the number of horses allowed shall be based on this information, as allowed by the City’s
Animal Ordinance. Any expansion to the feedlot will require an amendment to this Conditional Use Permit. 8) The Applicant shall adhere to requirements outlined in the Washington County Review
memo dated September 7, 2017. 9) Any significant change to the site plan dated September 6, 2017 shall require an amendment to this conditional use permit.
10) A manure management plan clarifying composting activities and locations on the site shall be provided to the city, and such activities on the site shall be carried out according to this plan. 11) The arena must not be available to spectators and must not include bleachers or seating of
any kind. Public events or shows will require an amendment to this Conditional Use Permit.
Passed and duly adopted this 3rd day of October, 2017 by the City Council of the City of Lake Elmo, Minnesota.
__________________________________
Michael Pearson, Mayor ATTEST: ________________________________
Julie Johnson, City Clerk
Resolution 2017-105 1
CITY OF LAKE ELMO WASHINGTON COUNTY STATE OF MINNESOTA
RESOLUTION 2017-105 A RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR EXPANSION OF AN EXISTING FEEDLOT WITHIN THE SHORELAND MANAGEMENT OVERLAY DISTRICT
WHEREAS, the City of Lake Elmo is a municipal corporation organized and existing under the laws of the State of Minnesota; and WHEREAS, Mare Affair Farm, LLC, 10880 Stillwater Blvd N, Lake Elmo, MN 55042
(the “Applicant”) has submitted an application to the City of Lake Elmo (the “City”) for a
Conditional Use Permit for the expansion of an existing feedlot within the City’s Shoreland Management Overlay District for the property located at 10880 Stillwater Blvd N (PID# 14.029.21.11.0001) (the “Property”); and WHEREAS, notice has been published, mailed and posted pursuant to the Lake Elmo
Zoning Ordinance, Section 154.102; and WHEREAS, the Lake Elmo Planning Commission held a public hearing on said matter on September 11, 2017; and
WHEREAS, the Lake Elmo Planning Commission has submitted its report and recommendation to the City Council as part of a Staff Memorandum dated October 3, 2017; and WHEREAS, the City Council considered said matter at its October 3, 2017 meeting.
NOW, THEREFORE, based on the testimony elicited and information received, the City Council makes the following: FINDINGS
1) That the procedures for obtaining said Conditional Use Permit are found in the Lake Elmo Zoning Ordinance, Section 154.106. 2) That all the submission requirements of said Section 154.106 have been met by the
Applicant.
3) That the proposed Conditional Use Permit includes the following components: a) A Conditional Use Permit for a commercial boarding facility for the property
located at 10880 Stillwater Blvd N.
4) That the Conditional Use Permit for a commercial boarding facility will be for the Property legally described as follows: NE1/4 OF SEC 14 SUBJECT TO A HIGHWAY EASEMENT FOR COUNTY STATE AID HIGHWAY 17 OVER EAST 50.00 FEET THEREOF AS DESCRIBED IN SAID BOOK 258 OF DEEDS PAGES 39 AND 40-ALSO
Resolution 2017-105 2
SUBJECT TO A HIGHWAY EASEMENT FOR TRUNK HIGHWAY 5 AS DESCRIBED
IN BOOK 246 OF DEEDS PAGE 592 SECTION 14 TOWNSHIP 029 RANGE 021.
5) The proposed use will not be detrimental to or endanger the public health, safety, comfort, convenience or general welfare of the neighborhood or the city. Provided the MPCA sees no issues with the proposed expansion, the proposed expansion of an existing feedlot will not be detrimental to or endanger the public health, safety, comfort, convenience or general welfare of the neighborhood or the city. 6) The use or development conforms to the City of Lake Elmo Comprehensive Plan. The proposal is consistent with the Comprehensive Plan in that the property is guided for
Rural Area Development and is within the a Rural Preservation Area, which allow for uses such as passive recreation, alternative agricultural uses, public gathering spaces and other amenities that are consistent with agricultural use or character. Provided the MPCA sees no issues and a Valley Branch Watershed District permit is obtained, it will not negatively impact natural resources. 7) The use or development is compatible with the existing neighborhood. The use is compatible with the existing neighborhood, as the property is currently used as a farm and houses horses. The proposed use will be an expansion of the existing use.
8) The proposed use meets all specific development standards for such use listed in Article 7 of this Chapter. The proposed expansion meets standards set forth for expansions to existing feedlots as set forth in Section 154.800 (C) (6) (c) of the Zoning Code.
9) If the proposed use is in a flood plain management or shoreland area, the proposed use meets all the specific standards for such use listed in Chapter 150, §150.250 through 154.800 (Shoreland Regulations) and Chapter 152 (Flood Plain Management). The property is located within the City’s Shoreland District but meets standards required for an expansion to an existing feedlot within the City’s shoreland district. 10) The proposed use will be designed, constructed, operated and maintained so as to be compatible in appearance with the existing or intended character of the general vicinity and will not change the essential character of that area. The proposed project will be similar in
character and design to the existing home and barn on the property. 11) The proposed use will not be hazardous or create a nuisance as defined under this Chapter to existing or future neighboring structures. The proposed use will not be hazardous or create
a nuisance on the property provided all the rules and regulations set forth by the City and other applicable agencies are met and all applicable permits are obtained. 12) The proposed use will be served adequately by essential public facilities and services, including streets, police and fire protection, drainage structures, refuse disposal, water and
sewer systems and schools or will be served adequately by such facilities and services
provided by the persons or agencies responsible for the establishment of the proposed use. The applicant has not provided a hydroCAD model; information on potable water supply to the facilities; information on wastewater management for the facilities; and slightly increases driveway use to an existing private driveway. It is a recommended condition of approval that the applicant include this information on updated plans to be reviewed and approved by the City Engineer so that this may be determined. Provided this information is supplied, reviewed and approved by the City Engineer and other applicable agencies, the use will be adequately served by the aforementioned.
Resolution 2017-105 3
13) The proposed use will not create excessive additional requirements at public cost for public facilities and services and will not be detrimental to the economic welfare of the community. The proposed use will not create additional requirements for public facilities and services, provided the use does not include spectators. 14) The proposed use will not involve uses, activities, processes, materials, equipment and conditions of operation that will be detrimental to any persons, property or the general welfare because of excessive production of traffic, noise, smoke, fumes, glare or odors.
Traffic to the site is expected to be minimal, and visits are expected to be short. Minimal noise is expected to come from the site, short of the sounds of unloading and loading items. Hazardous materials are prohibited from being stored on site, and lighting has been evaluated and determined to not cause a nuisance as proposed.
15) Vehicular approaches to the property, where present, will not create traffic congestion or interfere with traffic on surrounding public thoroughfares. The Applicant has indicated that additional truck traffic will increase by only two trips per week. 16) The proposed use will not result in the destruction, loss or damage of a natural or scenic
feature of major importance. The proposed use will be a modernization and expansion of an existing scenic feature within Lake Elmo. CONCLUSIONS AND DECISION Based on the foregoing, the Applicant’s application for a Conditional Use Permit for a self-
service storage facility and outdoor vehicle storage is granted, subject to the following
conditions: 1. The Applicant shall provide the Minnesota Pollution Control (MPCA) a complete Notice of Construction or Expansion of an Animal Feedlot with less than 300 Animal Units and
provide the City proof from the MPCA that there are no issues with this expansion. 2. Applicant must address all engineering review comments outlined in the Engineering Memo dated August 18, 2017.
Passed and duly adopted this 3rd day of October, 2017 by the City Council of the City of Lake Elmo, Minnesota.
__________________________________ Michael Pearson, Mayor ATTEST:
________________________________ Julie Johnson, City Clerk
PUBLIC HEARING ITEM 4C – ACTION ITEM
STAFF REPORT
DATE: 10/3/17
REGULAR
MOTION
TO: City Council FROM: Emily Becker, Planning Director
AGENDA ITEM: Front Yard Setback Variance from Rural Single Family Zoning District Standards REVIEWED BY: Joan Ziertman, Planning Program Assistant
BACKGROUND:
The City has received a request from Ben Ostarello for a variance from the minimum front setback standards for the Rural Single Family zoning district in order to add an additional stall to an existing attached garage on the property located at 8323 Deer Pond Trail North.
ISSUE BEFORE COUNCIL:
The Council is being asked to review and consider approval of the above-mentioned request.
REQUEST DETAILS/ANALYSIS:
Existing Land Use/Zoning: Single-family detached residential home guided for Rural Single
Family / Rural Single Family.
Surrounding Land Use/ Zoning: Surrounded by single family homes and guided for Rural Single Family / Rural Single Family.
History: The property has long been used as a single-family detached
dwelling.
Deadline for Action: Application Complete – 8/28/2017 60 Day Deadline – 10/27/2017 Extension Letter Mailed – N/A 120 Day Deadline – N/A
Applicable Regulations: • Article V - Zoning Administration and Enforcement
• Article IX – Rural Districts
Variance Request. The applicant is requesting a setback from the minimum front property line setback required within the Rural Single Family (RS) Zoning District. Per Section 154.033 (D) of the
Zoning Code, the RS district requires a minimum 30 foot setback from the property line.
2
PUBLIC HEARING ITEM 4C – ACTION ITEM
Reason for Request. The reason for the request is to construct a third stall addition on to the existing two stall garage. The encroachment in to the front yard setback would be 8’6”. The applicant’s home was built in 1973, prior to the existence of current zoning standards and is sited at an angle. Any
garage addition that would not require a variance from the front setback standards would drastically change the look of the existing property as well as significantly increase the amount of impervious surface on the site.
All other standards of the Zoning Code are met. The proposed impervious surface is 11.5%, which is under the 15% maximum allowed impervious surface in the shoreland district. Additionally,
the garage is not larger than the footprint of the principal structure, as required by Section 154.406. Further, the Rural District code does not prohibit attached garages from being nearer the front lot line than the principal structure; this standard only applies to detached structures.
REVIEW AND ANALYSIS:
An applicant must establish and demonstrate compliance with the variance criteria set forth in Lake Elmo City Code Section 154.017 before an exception or modification to city code requirements can be granted. These criteria are listed below, along with comments from Staff regarding applicability of these criteria to the applicant’s request.
1) Practical Difficulties. A variance to the provision of this chapter may be granted by the Board of Adjustment upon the application by the owner of the affected property where the strict enforcement of this chapter would cause practical difficulties because of circumstances unique to the individual property under consideration and then only when it is demonstrated that such actions will be in keeping with the spirit and intent of this chapter. Definition of
practical difficulties - “Practical difficulties” as used in connection with the granting of a variance, means that the property owner proposes to use the property in a reasonable manner not permitted by an official control.
FINDINGS: The house, which was built prior to current zoning standards, is unique in that the
house is sited at an angle, whereas surrounding the faces of garages of surrounding houses are perpendicular to the street. Had the face of the garage been perpendicular to the street, an addition to the garage could have been constructed without the need for a variance. It is not proposed that the principal structure expand in to the front setback, only a portion of the attached garage.
2) Unique Circumstances. The plight of the landowner is due to circumstances unique to the
property not created by the landowner.
FINDINGS: The house was constructed prior to current zoning standards and is sited at an angle, requiring any expansion of the existing garage to require a variance from the minimum front yard
setback requirements.
3) Character of Locality. The proposed variance will not alter the essential character of the locality in which the property in question is located.
FINDINGS: The proposed variance will allow an expansion of an existing garage, only requiring a minor alteration to the existing structure, as opposed to requiring construction of an entirely new
garage. One of two trees will require removal, but the remaining pine tree provides some screening from the garage. The design and color of the exterior building materials of the addition are similar or compatible with the existing garage and principal building.
4) Adjacent Properties and Traffic. The proposed variance will not impair an adequate supply of light and air to properties adjacent to the property in question or substantially
3
PUBLIC HEARING ITEM 4C – ACTION ITEM
increase the congestion of the public streets or substantially diminish or impair property values within the neighborhood.
FINDINGS. The proposed variance will not impair an adequate supply of light and air to
properties adjacent to the subject property, increase congestion of public streets or substantially diminish or impair property values within the neighborhood.
Planning Commission Review. The Planning Commission considered the above-mentioned request at its September 25, 2017 meeting and recommended approval with a vote of 7-0. No one spoke at the public hearing, but two written comments were received in advance of the public hearing
expressing support for the requested variance.
FISCAL IMPACT:
Staff has not found that the proposed variance will have any fiscal impact to the City.
OPTIONS:
The Council may:
• Recommend approval of the proposed variance.
• Recommend approval of the proposed variance with conditions.
• Recommend denial of the variance, citing recommended findings of fact for denial.
RECOMMENDATION:
Staff and the Planning Commission recommend approval of the request from Ben Ostarello for a variance from the City’s Rural Single Family front yard minimum setback requirements for the property located at 8323 Deer Pond Trail N.
“Move to adopt Resolution 2017-103 approving the request from Ben Ostarello for a variance from the City’s Rural Single Family minimum front yard setback requirements for the property located at 8323 Deer Pond Trail N.”
ATTACHMENTS:
1) Variance application and narrative 2) Proposed Site Plan 3) Resolution 2017-103
W. E. McCrum, Architect1998 Arkwright StreetMaplewood, Minnesota 55117(651) 329-6966bmc55105@gmail.com 11
Resolution 2017-103 1
CITY OF LAKE ELMO
WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION 2017-103
A RESOLUTION APPROVING A VARIANCE FROM MINIMUM FRONT YARD SETBACK
STANDARDS WITHIN THE RURAL SINGLE FAMILY ZONING DISTRICT WHEREAS, the City of Lake Elmo is a municipal corporation organized and existing
under the laws of the State of Minnesota; and
WHEREAS, Ben Ostarello, 8323 Deer Pond Trail N, Lake Elmo, MN 55042 (“Applicant”), has submitted an application to the City of Lake Elmo (the “City”) for a variance from the minimum front yard setback requirements of the Rural Single Family zoning district.
WHEREAS, notice has been published, mailed and posted pursuant to the Lake Elmo Zoning Ordinance, Section 154.109; and WHEREAS, the Lake Elmo Planning Commission held a public hearing on said matter
on September 25, 2017; and
WHEREAS, the Lake Elmo Planning Commission has submitted its report and recommendation to the City Council as part of a Staff Memorandum dated September 25, 2017; and
WHEREAS, the City Council considered said matter at its October 3, 2017 meeting. NOW, THEREFORE, based on the testimony elicited and information received, the City Council makes the following:
FINDINGS 1) That the procedures for obtaining said Variance are found in the Lake Elmo Zoning Ordinance, Section 154.109.
2) That all the submission requirements of said Section 154.109 have been met by the Applicant. 3) That the proposed variance includes the following components:
a) A variance from the minimum front yard setback requirements of the Rural Single Family zoning district to allow a front yard setback for a garage of 21 feet 6 inches.
Resolution 2017-103 2
4) That the Variance will be located on property legally described as follows: OACE
ACRES 5TH ADD Lot 2 Block 1 Subdivision Cd 37549. PID# 09.029.21.34.0002.
5) That the strict enforcement of Zoning Ordinance would cause practical difficulties and that the property owner proposes to use the property in a reasonable manner not permitted by an official control. Specific findings: The house, which was built prior to current
zoning standards, is unique in that the house is sited at an angle, whereas the faces of
garages of the surrounding houses are perpendicular to the street. Had the face of the
garage been perpendicular to the street, an addition to the garage could have been constructed without the need for a variance. It is not proposed that the principal structure expand in to the front setback, only a portion of the attached garage.
6) That the plight of the landowner is due to circumstances unique to the property not created by the landowner. Specific findings: The house was constructed prior to current zoning standards and is sited at an angle, requiring any expansion of the existing garage to require a variance from the minimum front yard setback requirements.
7) That the proposed variance will not alter the essential character of the locality in which the property in question is located. Specific findings: The proposed variance will allow an expansion of an existing garage, only requiring a minor alteration to the existing structure, as opposed to requiring construction of an entirely new garage. One of two trees
will require removal, but the remaining pine tree provides some screening from the garage. The design and color of the exterior building materials of the addition are similar or compatible with the existing garage and principal building. 8) That the proposed variance will not impair an adequate supply of light and air to properties
adjacent to the property in question or substantially increase the congestion of the public streets or substantially diminish or impair property values within the neighborhood.
Specific findings: The proposed variance will not impair an adequate supply of light and air to properties adjacent to the subject property, increase congestion of public streets or
substantially diminish or impair property values within the neighborhood.
CONCLUSIONS AND DECISION Based on the foregoing, the Applicant’s application for a Variance is granted.
Passed and duly adopted this 3rd day of October 2017 by the City Council of the City of Lake Elmo, Minnesota.
__________________________________ Mike Pearson, Mayor ATTEST: ________________________________
Julie Johnson, City Clerk
STAFF REPORT
DATE: 10/3/2017
REGULAR
TO: City Council
FROM: Rob Weldon, Public Works Director
AGENDA ITEM: Snowplowing and Ice Control Policy / Winter Parking Ordinance
REVIEWED BY: Kristina Handt, City Administrator
BACKGROUND: An effective tool for any city is a policy that relates to snow an ice control practices and winter parking on city roadways. Such policies are effective for all city staff and residents in such a way that detailed information is available in writing that outlines how and why a city will carry out winter weather operations. Numerous cities in the Twin Cities metro area and in Washington County have snow removal policies and winter parking ordinances in place, and have for many years. The snowplowing policy being brought forward for your consideration is structured from a draft policy provided by the League of Minnesota Cities and is encouraged to have in place by LMC. Additionally, the proposed winter parking ordinance for your consideration is modeled from neighboring cities that have successfully followed for years.
With the continued development throughout Lake Elmo and additional miles of streets requiring maintenance this policy and ordinance will aid Public Works, Public Safety and residents by establishing
priorities, staffing and efficiencies on how to safely handle snow and ice conditions during winter months.
ISSUE BEFORE COUNCIL: Should the City adopt a Snowplowing/Ice Control Policy and Winter Parking Ordinance? PROPOSAL DETAILS/ANALYSIS: With the adoption of the proposed policy several items of topic that occur each winter related to snow plowing will have a definitive answer as to what is being done, why it is being done and how it is carried out.
Within the policy items such as; Winter Parking, Plowing Priorities, Movement of Snow, Starting Times and Property Damage will be addressed. Neighboring cities such as Oakdale, Mahtomedi, Oak Park Heights, Stillwater, Hugo and Bayport all have some type of winter parking ordinance and/or policy relating to snow and ice control.
Once adoption of the policy and ordinance takes place, city staff will work with the Sherriff’s Department and residents in an effort to educate and communicate aspects of this policy that may cause questions and concerns, such as on-street parking. Conversations have been held with both the Fire Chief and Sherriff’s Sargent and they are supportive of the winter parking ordinance in terms of public safety and enforcement measures. Staff will also share the policy through outlets such as the City Website, Fresh, Facebook and Source Newsletter in an attempt to reach the vast majority of residents.
City Council Meeting
October 3, 2017
Page 2
All answers to questions regarding snow and ice removal shall be uniform based on the information in the
policy and could be answered by staff at City Hall or Public Works. FISCAL IMPACT: No increased fiscal impact is anticipated. OPTIONS:
• Approve Snowplowing/Ice Control Policy and Winter Parking Ordinance
• Amend and then Approve Snowplowing/Ice Control Policy and Winter Parking Ordinance
• Deny Snowplowing/Ice Control Policy and Winter Parking Ordinance
• Table Snowplowing/Ice Control Policy and Winter Parking Ordinance
RECOMMENDATION: “Motion to adopt Snowplowing and Ice Control Policy and Ordinance #08-189 prohibiting parking on
any public street from November 1st to March 31st between the hours of 2am and 7am” ATTACHMENTS:
• Snowplowing and Ice Control Policy
• Proposed Winter Parking Ordinance
CITY OF LAKE ELMO
Snowplowing and Ice Control Policy
Introduction
The city of Lake Elmo, Minnesota, finds that it is in the best interest of the residents of the city to
assume basic responsibility for control of snow and ice on city streets. Reasonable ice and snow control is necessary for routine travel and emergency services. The city will attempt to provide such control in a safe and cost effective manner, keeping in mind safety, budget, personnel, and environmental concerns. The city will use city employees, equipment and/or private contractors
to provide this service. This policy does not relieve the operator of private vehicles, pedestrians,
property owners, residents and all others that may be using public streets, of their responsibility to act in a reasonable, prudent and cautious manner, given the prevailing street conditions. 1. Commencement The Public Works Director or designee will decide when to begin snow or ice control operations.
The criteria for that decision are:
A. Snow accumulation of two (2) inches or more; B. Drifting of snow that causes problems for travel; C. Icy conditions which seriously affect travel; and
D. Time of snowfall in relationship to heavy use of streets.
Snow and ice control operations are expensive and involve the use of limited personnel and equipment. Consequently, full street width snowplowing operations will not generally be conducted for snowfall of less than two (2) inches. Night-time plowing will usually begin at
approximately 2:00 A.M. However, starting time may vary according to weather conditions.
2. Winter Parking Restrictions Winter Parking Restrictions
It shall be unlawful for any person to stop, stand or park any vehicle or trailer or permit the same
to stand on any street or alley within the city between the hours of 2:00 a.m. and 7:00 a.m. from
November 1 until March 31 of the following year.
Parking is also restricted at any time that snow accumulation equals or exceeds 2" or more until the street is cleared of snow. The winter parking ordinance does not apply to private streets (marked with a blue street sign),
only to public roadways.
Social media, city website and local news stations will be used to communicate emergency parking restrictions.
3. Movement of snow
Snow will be plowed in a manner so as to minimize traffic obstructions. Streets will be plowed
from the center outward to the boulevard areas. In times of extreme snowfall, streets will not always immediately be able to be completely cleared of snow. Snow will be removed from main arterial streets first, starting at centerline and
plowed to the curb. Plow district units may work together in the cleaning of these streets, (i.e.
tandem plowing). Every effort will be put forth to maintain these streets during major snow event. For safety reasons, Cul-de-sacs will be plowed from the center outward to the boulevard when
possible.
4. Snow Removal
The Public Works Director or designee will determine if and when snow will be removed from
an area by truck. Such snow removal will occur in areas where there is no room on the boulevard for snow storage and in areas where accumulated piles of snow create a hazardous condition. Snow removal operations will not commence until other snowplowing operations have been completed. Snow removal operations may also be delayed depending on weather conditions,
personnel and budget availability. The snow will be removed and hauled to a snow storage area.
The snow storage area will be located so as to minimize environmental problems. 5. Snow on streets and sidewalks.
§ 96.03 PUBLIC NUISANCES AFFECTING PEACE AND SAFETY All snow and ice not removed from public sidewalks 12 hours after the snow and ice has stopped
precipitating. Snow plowed or shoveled into a public street shall be declared a nuisance. 6. Priorities and Schedule of Streets to be Plowed
The city has classified city streets based on the street function, traffic volume and importance to the welfare of the community. I. First Priority: “Main Arterial Streets” These are high volume routes, which connect
major sections of the city and provide access for emergency fire, police, and medical
services. They also provide access to schools and commercial businesses. Priority will also be given to parking lots and access to City Hall and Fire Stations. II. Second Priority: Lower volume residential streets.
III. Third Priority: Alleys, city parking lots and cul-de-sacs.
During significant and severe storms, the city must be prepared to move personnel and
equipment to maintain priority routes first. In fulfilling the need to have all priority streets safe and passable, when resources are limited, plowing of all other streets may be stopped at any time so resources can be shifted to priority routes.
Unforeseeable circumstances may cause delays in completing assigned plow routes. Such
circumstances may include weather conditions that endanger the safety of snowplow operators and/or safe and effective operation of equipment, commuter traffic, disabled vehicles, poor visibility conditions, parked cars along streets, assistance to emergency response vehicles, equipment breakdown, and personnel shortages.
6. Work Schedule for Snowplow Operators
Snowplow operators will be expected to work their assigned shifts. In severe snow emergencies, operators sometimes have to work longer shifts in excess of 40 per week. While work breaks are not guaranteed, generally operators will take breaks in accordance with city policy, provided the
breaks do not interfere with city services or operations. In addition, operators will be allowed
sufficient time to eat a meal during any shift which is eight or more hours. After a twelve-hour shift, the operators will be replaced if additional qualified personnel are available.
7. Traffic Regulations
The city recognizes that snowplow operators are exempt from traffic regulations set forth in
Minnesota Statutes, Chapter 169 while actually engaged in work on streets, except for regulations related to driving while impaired and the safety of school children. Pursuant to this authority, snowplow operators engaged in snow removal or ice control on city streets have discretion to safely disregard traffic laws set forth in Chapter 169, except for laws relating to
impaired driving and school children safety.
The privileges granted herein to operators of snow removal and ice control vehicles shall apply only if the vehicle is equipped with one lighted lamp displaying a flashing, oscillating, or rotating amber light placed in such a position on the vehicle as to be visible throughout an arc of
360 degrees,
8. Weather Conditions
Snow and ice control operations will be conducted only when weather conditions do not endanger the safety of snowplow operators and equipment. Factors that may delay snow and ice control operations include: severe cold, significant winds, and limited visibility.
9. Use of Sand, Salt, and Other Chemicals
The city will use sand, salt, and other chemicals when there are hazardous ice or slippery conditions. The city is concerned about the effect of such chemicals on the environment and will
limit its use for that reason.
10. Mailboxes and other private property
It is the responsibility of property owners to keep their mailbox clear of snow for postal deliveries. Damage to a mailbox is a risk that snowplow operators face during winter plowing requirements. The city will conduct a review of each mailbox damage claim to determine, whether the city has any legal responsibility for the damage and if so replace the mailbox. The mailbox and/or post
must show signs of physical damage characteristic of being struck by city snow removal equipment. The act of snow itself coming off a plow and dislodging any component of a mailbox shall not be the responsibility of the city to repair. If the city, in its discretion, determines replacement is appropriate, the city will replace the mailbox with a standard size, non-decorative metal mailbox and replace the support post as necessary with a 4” x 4”, decay resistance wood
support post, both which will be installed by the city. *Please refer to Attachment #1 for tips on a properly installed mailbox from the United States Postal Service.
Replacement or repair of objects in the right-of way area (ROW) is the responsibility of the
property owner. This includes but is not limited to any landscaping, boulders, posts, fences,
irrigation systems or improperly installed mail boxes as well as any other substantial objects in
the ROW. If your lawn (grass/sod) is physically damaged by city snow removal equipment
repairs will be made with black dirt and grass seed in the spring.
11. Garbage and Recycling Containers
Please do not place garbage or recycling containers in the street during a snow fall event until
your street is plowed to full width. Containers can be placed in your driveway adjacent to the
street and still be accessible for pick-up.
12. Fire Hydrants
Residents are encouraged to help the Public Works Department and Fire Department by clearing
snow away from fire hydrants. This will allow the Fire Department adequate access to the hydrant in
the event of an emergency. We ask you to clear the snow in a 5’ area around the fire hydrant.
13. Deviation from Policy
The Public Works Director or designee may deviate from this policy when in his or her judgment
it is in the best interest of the city or is necessary because of budget needs or other
circumstances. Changes in priorities (lasting more than 4 hours) will be documented as to what caused such.
Attachment #1
Placing the Mailbox
Here are some helpful guidelines to follow when installing your mailbox:
• Position your mailbox 41" to 45" from the road surface to the bottom of the mailbox or point of mail entry.
• Place your mailbox 6" to 8" back from the curb. If you do not have a raised curb, contact your local
postmaster for guidance.
• Put your house or apartment number on the mailbox.
• If your mailbox is on a different street from your house or apartment, put your full street address on the
box.
• If you are attaching the box to your house, make sure the postal carrier can reach it easily from your
sidewalk, steps, or porch.
Installing the Post
The best mailbox supports are stable but bend or fall away if a car hits them. The
Federal Highway Administration recommends:
• A 4" x 4" wooden support or a 2"-diameter standard steel or aluminum pipe.
• Avoid unyielding and potentially dangerous supports, like heavy metal pipes, concrete posts, and farm equipment (e.g., milk cans filled with concrete).
• Bury your post no more than 24" deep.
CITY OF LAKE ELMO COUNTY OF WASHINGTON
STATE OF MINNESOTA ORDINANCE NO. 08-189
AN ORDINANCE TO AMEND THE LAKE ELMO CITY CODE
BY ADDING A WINTER PARKING ORDINANCE
The City Council of the City of Lake Elmo ordains that Lake Elmo City Code, Chapter 72
of the Municipal Code, shall be amended by adding Ordinance No. 08-189, as follows:
72.03 WINTER PARKING
(A) It shall be unlawful for any person to stop, stand or park any vehicle or trailer
or permit the same to stand on any street or alley within the city between the hours of
2:00 a.m. and 7:00 a.m. from November 1 until March 31 of the following year.
(B) Parking is also restricted at any time that snow accumulation equals or exceeds 2" or more until the street is cleared of snow.
(C) The winter parking ordinance does not apply to private streets (marked with a
blue street sign), only to public roadways.
Effective Date: This ordinance shall become effective immediately upon adoption and publication in the official newspaper of the City of Lake Elmo.
This Ordinance No. 08-189 was adopted on this 3rd day of October 2017, by a vote of
__ Ayes and __ Nays.
_____________________________ Mike Pearson, Mayor ATTEST:
___________________________
Julie Johnson, City Clerk