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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 SFWJFXJOHUIFmOBODJBMQFSGPSNBODFPGUIF$JUZPG-BLF&M 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 JNQSPWFNFOUT 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 6 507745v1 SJS LA515-34 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 7 507745v1 SJS LA515-34 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 8 507745v1 SJS LA515-34 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 9 507745v1 SJS LA515-34 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 10 507745v1 SJS LA515-34 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. 11 507745v1 SJS LA515-34 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 12 507745v1 SJS LA515-34 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 13 507745v1 SJS LA515-34 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 14 507745v1 SJS LA515-34 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 15 507745v1 SJS LA515-34 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 16 507745v1 SJS LA515-34 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. 17 507745v1 SJS LA515-34 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 18 507745v1 SJS LA515-34 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 19 507745v1 SJS LA515-34 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 20 507745v1 SJS LA515-34 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 21 507745v1 SJS LA515-34 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 22 507745v1 SJS LA515-34 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. 23 507745v1 SJS LA515-34 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. 24 507745v1 SJS LA515-34 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 25 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 26 507745v1 SJS LA515-34 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 2 REGULAR ITEM 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 3 REGULAR ITEM 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): 4 REGULAR ITEM 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. 5 REGULAR ITEM 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 6 REGULAR ITEM 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. 7 REGULAR ITEM 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 8 REGULAR ITEM 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 9 REGULAR ITEM 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. 10 REGULAR ITEM • 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 11 REGULAR ITEM 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. 12 REGULAR ITEM 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. 13 REGULAR ITEM 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. 14 REGULAR ITEM 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.” 15 REGULAR ITEM “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  28958290 111652994 5790 90322959 11320810990558155 98 7111030522258025240 7730109388 840 4 2 0 1 2796 3265 445410010 9831 12088 111203691 115983025 10931860 380508567 5670 568 10755 11210 8468 9 6 3 7 33088312 90705235 58 20153516637580 113064388 5260 3287 8249 10073112929823 5150 5701 8 67382948415 307580954260 4466 5724 974511862 21419999 2846 5290 349089708045 11066 2655 8702920096249295 11392 1 66510079 5034 4990 53 23122268 68 12932 1104780109515 9251 9940 112272783 111629768 5677 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ST N TO SB KEATS AVE NEB 60TH ST N TO NB KEATS AVE N L ANGL EYLARKS PURBLAZIN G S T A R LINDEN JEROMEAVEN U E INWOOD AVE N TO WB I 94 UPPER 42N D C H E R RYWOOD 32ND57THSTREET 32ND 3RD S T R EET 32ND LAMPERT33RDST REETLITTLEBLUESTEMLINDEN M A N N IN G A V E N T O W B I 9 444THSTREETWB I 94 TO KEATS AVE N MARQUESSWB I 94 TO INWOOD AVE N SUNFISH LAKE PARK INBOUNDKIRKWOODPRIVATEMARQU ESSTRAILMARQUESSTRAILKINDR E DKIND REDTAPES T RY T A PE STRY14T H14T HUPPER 7TH LITTL EB L U ES TEMLOWER8TH LISB O N A VE NUEKI NDRE DKINDRE D LIL YMARQ U E S S LAN ELILACLILAC LILACLILAC LISBO NLINDENLINDEN TAP ESTRYTAPESTRY LI N D ENLI NDE NLake Elmo Zoning Map E Data Source: Washington CountyUpdated by LE Planning Dept 2/9/2017 Zoning Districts Watershed Districts A OP BP BP-PUD C C-PUD CC GB HDR HDR-PUD LC LC-PUD LDR LDR-PUD MDR MDR-PUD PF R2-PUD RE ROW RR RS RT VMX Browns Creek Cottage Grove Ravine Valley Branch Lakes Shoreland Buffer General Tributary GCC Agricultural Properties Over Ten Acres in Size 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