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04-08-10 SCCCopOdio Council to Adm April 6, 2010 City of Otsego 8899 Nashua. Ave. N.E. Otsego, MN 55330 I resign effective today from the Otsego Heritage Preservation Commission. I have enjoyed my association with the committee members. Sincerely, Joan Vasseur 6187 Rawlings Ave. Rogers, MN 55374 MEMO Date: March 25, 2010 To: Mayor & Council From: City Administrator Mike Robertson Re: Workshop with HPC, Commissioner's Status The seats that were held by Jon and Isabel Stander were up at the end of 2008. Ron Black and Chris Wilson's seats are up at the end of 2010. Shirley Isaacson, Joan Vasseur and Norm Freske's seats are up at the end of 2011. CITY OF OTSEGO HERITAGE PRESERVATION COMMISSION DRAFT - BY-LAWS - DRAFT A. Organization. 1. Membership of the Commission shall consist of five (5) members appointed by the City Council, alternate member(s) as may be appointed by the City Council, and one (1) non-voting City Council representative. 2. The Commission shall elect officers from its membership at its first meeting in February. 3. The officers of the Commission shall be: a. Chair. b. Vice -Chair. C. Secretary. 4. Duties of the officers: a. Chair: 1. The Chair shall preside at all meetings of the Commission. 2. The Chair shall preserve order and decorum and shall decide all questions of order. 3. The Chair shall appoint any necessary committees and shall appoint any committees requested by a majority of the members. b. Vice -Chair: 1. The Vice -Chair shall preside at all meetings in the absence of the Chair and perform such duties as requested by the Chair. C. Secretary: 1. The Secretary shall take minutes of all Commission meetings or special meetings, which are to be distributed to the members prior to the next Commission meeting. Approval of the minutes is by a majority of the members present at the meeting at which the minutes are on the 1 agenda. Upon approval, the minutes shall be signed by the Chair and attested to by the Secretary and forwarded to the City Clerk. B. Work Rules. 1. There shall be one (1) regularly scheduled meeting the second Thursday of each month, unless an alternative is scheduled due to an unforseen conflict or canceled by the Chair due to a lack of business items. Notice of the change must be communicated to the members at least four (4) days prior to the meeting date. 2. A quorum of the Commission shall consist of three (3) members. 3. All meetings shall be open to the public. 4. A special meeting of the Commission may be called by a motion of the majority of the members stating the purpose of such meeting with written notice posted at least twenty-four (24) hours in advance of the meeting. 5. Any site inspection involving three (3) or more members as a group must be scheduled and noticed as a special commission meeting. 6. The alternate member(s) shall sit at the table during any scheduled meeting, but the alternate shall only vote if a member of the Commission is absent. 7. A member may be excused from an individual meeting for reasons of illness, work, or out of town trips. Notice of the member's absence must be communicated to the City staff before 4:00 PM on the date of the meeting. 8. The order of business shall be as listed in the meeting agenda to be prepared by the City Clerk before each meeting. 9. Motions shall be made only by persons recognized by the Chair. 10. Any resolution or motion may be withdrawn at any time before action is taken on it. 11. When a question is under debate, no other motion shall be entertained except to table or call for the questions, act on the question, postpone, refer to committee, or amend. Motions shall take precedence in that order and the first two shall be without debate. 2 12. All motions shall be carried by a majority vote of the members present, except a call for the question. Any members or the Chair may call for a roll call vote on any issue. 13. All commission recommendations shall be sent to the City Council in written meeting minutes and shall include a record of the division of votes on each recommendation. 14. Any Commission member having a personal interest, a financial interest, or a family member with a financial interest in any individual action to be considered by the Commission shall: a. Notify the Chair of the conflict in advance of the meeting. b. Allow the Chair to explain the potential conflict to the Commission. C. At the request of the Chair, the member shall excuse themselves from the Commission in advance of the discussion and voting on this item. 15. Any Commission member who conducts themselves in a manner conflicting with these By -Laws provides grounds for removal by the City Council. 16. Any rule not covered by these By -Laws shall be governed by Robert's Rules of Order. 17. These By -Laws shall not be repealed or amended except by a four (4) member vote of the Commission and after notice has been given at a previous meeting. Changes in these By -Laws become effective upon approval of the City Council. ADOPTED by the Otsego Heritage Preservation Commission on this 8th day of April 2010. ATTEST: Secretary BY: Chair 3 APPROVED by the City Council of the City of Otsego on this 8th day of April 2010. BY: Jessica Stockamp, Mayor ATTEST: Tami Loff, City Clerk is3601 Thurston Avenue N, Suite 100 Anoka, MN 55303 Phone: 763.231.5840 Facsimile: 763.427.0520 TPCOPlanningCo.com MEMORANDUM TO: FROM: DATE: RE: TPC FILE: BACKGROUND Otsego Mayor and City Council Daniel Licht, AICP 7 April 2010 Otsego — Riverbend Mobile Home Park; Water connection 101.01 City staff met with Mr. John Darkenwald, Mr. Casey Darkenwald and Mr. Wally O'Dell on 1 April 2010 to receive a proposed offer for connection to City water. ANALYSIS WAC Fee. The City Engineer has calculated the WAC fee for Riverbend based on metered usage numbers of the existing private well: ■ 23,000 gpd/175gpd/REC = 131.4 REC 2010 Water Access Charge (WAC) = $3,935/REC 131.4 REC x $3,935/REC = $517,059 Monthly Usage Charges. The City Engineer also estimated the average monthly usage charges that would be paid to the City if Riverbend connects to City water service as outlined below for $27,230.40 per year. Note that the Finance Department indicates that the existing monthly service charges received for water usage are sufficient to cover operating expenses before Riverbend is connected to the system. Base Rate: 131.4 REC * $3/REC = $ 394.20 Usage Rate: 1,250,000 gpm * $0.0015/gal = $1.875.00 Average Water Usage Charge = $2,269.20 Proposal. Riverbend provided a proposal dated 31 March 2010 summarized as follows: ■ Riverbend pays WAC fee of $400,000 (77.4%) ■ WAC fee is assessed for 15 years at 4%. ■ Payment of assessment is deferred to taxes payable 2014. CONCLUSION The City Council will consider the proposal from Riverbend Mobile Home Park for connection to City water service at a special meeting scheduled for 8 April 2010 at 6:30 PM. C. Mike Robertson, City Administrator Tami Loff, City Clerk Gary Groen, Finance Director Ron Wagner, City Engineer Andy MacArthur, City Attorney 2 darkenwald, inc. Industrial and Commercial Real Estate 113 7535 N.E. River Road Elk River, Minnesota 55330 (763)441-3700 DATE: March 31, 2010 TO: City of Otsego DARKENWALD'S RIVERBEND COMPANY LLLP ID Water Hookup Proposal FROM: Darkenwald's Riverbend Company LLLP RE: Hookup to Otsego city water system Basic Proposal Basic hookup fee to be financed by special assessment amortized over a 15 year term, bearing a 4% interest rate. Assessment to be deferred for a period of 3 years with first installment due and payable with 2014 real estate taxes. Rationale Although the City immediately received real estate valued at $4,500,000 to facilitate the Highway 101 upgrade, there is no foreseeable benefit to Darkenwalds for many years. The supposed benefits provided by the agreement are only available to that parcel when, if and as developed (at which time the City will acquire an additional 10% of the land.) There will be no significant demand for real estate development for many years in this area. Deferral of the proposed assessment is requested because of the immediate necessity of upgrading our interior water lines. Gallonage fluctuation and overall increase in recent years indicate the existence of leakage in the lines (ongoing from time to time — lines were installed in the early 70's.) Based on the forgoing, we believe that a reduction in the hookup fee to $400,000 is warranted. POSSIBLE ACTIONS A. Motion to accept the proposal for connection of Riverbend Mobile Home Park to municipal water utilities subject to execution of an agreement drafted by the City Attorney and the following conditions: 1. The City Council makes this agreement based solely on the positive effect as to the debt service and operating expenses of the municipal water utility. 2. This agreement in no way shall confer or imply any reduction in SAC fees payable at the time of a future connection to municipal sanitary sewer utilities. 3. The property owner shall pay a WAC fee of $400,000.00. 4. The WAC fee shall be assessed for a term of 15 years at 4 percent interest with the first payment deferred (with interest) to taxes payable 2014. 5. The property owner shall escrow funds and agrees that all fees and expenses incurred by the City for the processing of this agreement and review and inspection of the connection to the municipal water system, including costs for professional services, are the responsibility of the property owner to be paid immediately upon receipt or the City may approve a special assessment for which the property owner specifically agrees to be to be assessed for 100 percent per annum and waives any and all appeals under Minnesota Statutes 429.81. B. Motion to refuse the proposal based on a finding that the request is inconsistent with the policies of the Comprehensive Plan regarding municipal utilities. C. Motion to table the proposal. City of Otsego Water and Sewer Debt Analysis Note that the 2009 hookup revenue was $498,189 and the 2008 revenue was $501,796. Based on this 2 year historical information the current projections assume the same level of hookup revenue Total WAC and SAC hookup money received thru April 8, 2010 totals $219,155. Water & Sewer Bonds Bonds Payable 2003B 2005A 2006A 2009A Total Balance, January 1, 2009 $ 9,275,000 $ 9,115,000 $ 8,375,000 $ - $ 26,765,000 Bonds issues - 6,360,000 6,360,000 Bond principal paid (refinanced) 1,415,000 2,255,000 1,715,000 - 5,385,000 Balance, December 31, 2009 $ 7,860,000 $ 6,860,000 $ 6,660,000 $ 6,360,000 $ 27,740,000 Estimated Estimated Water & Sewer Cash Hook Up Interest Bonds - Principal and Interest to be paid by Year Balance Revenue Earned 2003B 2005A 2006A 2009A Total 12/31/09 2.5 °10 Cash Balance Dec. 31, 2009 6,372,675 Year2010 500,000 159,317 294,280 280,669 275,168 260,610 1,110,726 5,921,266 Year2011 500,000 148,032 294,280 280,669 275,168 260,610 1,110,726 5,458,571 Year2012 500,000 136,464 799,280 280,669 275,168 260,610 1,615,726 4,479,309 Year 2013 500,000 111,983 809,130 280,669 275,168 260,610 1,625,576 3,465,715 Year2014 500,000 86,643 812,700 785,669 660,168 260,610 2,519,147 1,533,211 Year 2015 500,000 38,330 819,550 785,469 664,768 260,610 2,530,397 (458,855) Year 2016 500,000 - 825,000 784,469 663,568 260,610 2,533,647 (2,492,502) Year 2017 500,000 - 834,000 782,669 661,767 260,610 2,539,046 (4,531,548) Year 2018 500,000 - 838,800 785,069 669,368 260,610 2,553,847 (6,585,395) Year 2019 500,000 - 842,400 786,469 670,968 260,610 2,560,447 (8,645,842) Year 2020 500,000 - 849,800 791,869 676,768 260,610 2,579,047 (10,724,889) Year2021 500,000 - 855,800 790,262 681,063 260,610 2,587,735 (12,812,624) Year 2022 500,000 - 860,400 792,625 684,200 260,610 2,597,835 (14,910,459) Year 2023 500,000 - 873,600 798,750 685,613 260,610 2,618,573 (17,029,032) Year2024 500,000 - 797,512 685,963 1,010,610 2,494,085 (19,023,117) Year2025 500,000 - 690,250 1,805,610 2,495,860 (21,018,977) Year2026 500,000 - 693,262 1,801,035 2,494,297 (23,013,274) Year 2027 500,000 - - 2,499,000 2,499,000 (25,012,274) $ 10,609,020 $ 9,803,507 $ 9,888,396 $ 10,764,795 41,065,718 Note that the 2009 hookup revenue was $498,189 and the 2008 revenue was $501,796. Based on this 2 year historical information the current projections assume the same level of hookup revenue Total WAC and SAC hookup money received thru April 8, 2010 totals $219,155. L, 3 .g w `4 0 IE w POSSIBLE ACTIONS A. Motion to accept the proposal for connection of Riverbend Mobile Home Park to municipal water utilities subject to execution of an agreement drafted by the City Attorney and the following conditions: 1. The City Council makes this agreement based solely on the positive effect as to the debt service and operating expenses of the municipal water utility. 2. This agreement in no way shall confer or imply any reduction in SAC fees payable at the time of a future connection to municipal sanitary sewer utilities. 3. The property owner shall pay a WAC fee of $400,000.00. 4. The WAC fee shall be assessed for a term of 15 years at 4 percent interest with the first payment deferred (with interest) to taxes payable 2014. 5. The property owner shall escrow funds and agrees that all fees and expenses incurred by the City for the processing of this agreement and review and inspection of the connection to the municipal water system, including costs for professional services, are the responsibility of the property owner to be paid immediately upon receipt or the City may approve a special assessment for which the property owner specifically agrees to be to be assessed for 100 percent per annum and waives any and all appeals under Minnesota Statutes 429.81. B. Motion to refuse the proposal based on a finding that the request is inconsistent with the policies of the Comprehensive Plan regarding municipal utilities. C. Motion to table the proposal. City of Otsego Water and Sewer Debt Analysis Water & Sewer Bonds Bonds Payable 2003B 2005A 2006A 2009A Total Balance, January 1, 2009 $ 9,275,000 $ 9,115,000 $ 8,375,000 $ - $ 26,765,000 Bonds issues - 6,360,000 6,360,000 Bond principal paid (refinanced) 1,415,000 2,255,000 1,715,000 - 5,385,000 Balance, December 31, 2009 $ 7,860,000 $ 6,860,000 $ 6,660,000 $ 6,360,000 $ 27,740,000 Estimated Estimated Water & Sewer Cash Hook Up Interest Bonds - Principal and Interest to be paid by Year Balance Revenue Earned 2003B 2005A 2006A 2009A Total 12/31/09 2' Cash Balance Dec. 31, 2009 6,372,675 Year2010 500,000 159,317 294,280 280,669 275,168 260,610 1,110,726 5,921,266 Year 2011 500,000 148,032 294,280 280,669 275,168 260,610 1,110,726 5,458,571 Year2012 500,000 136,464 799,280 280,669 275,168 260,610 1,615,726 4,479,309 Year2013 500,000 111,983 809,130 280,669 275,168 260,610 1,625,576 3,465,715 Year2014 500,000 86,643 812,700 785,669 660,168 260,610 2,519,147 1,533,211 Year 2015 500,000 38,330 819,550 785,469 664,768 260,610 2,530,397 (458,855) Year 2016 500,000 - 825,000 784,469 663,568 260,610 2,533,647 (2,492,502) Year2017 500,000 - 834,000 782,669 661,767 260,610 2,539,046 (4,531,548) Year 2018 500,000 - 838,800 785,069 669,368 260,610 2,553,847 (6,585,395) Year 2019 500,000 - 842,400 786,469 670,968 260,610 2,560,447 (8,645,842) Year2020 500,000 - 849,800 791,869 676,768 260,610 2,579,047 (10,724,889) Year 2021 500,000 - 855,800 790,262 681,063 260,610 2,587,735 (12,812,624) Year 2022 500,000 - 860,400 792,625 684,200 260,610 2,597,835 (14,910,459) Year 2023 500,000 - 873,600 798,750 685,613 260,610 2,618,573 (17,029,032) Year2024 500,000 - 797,512 685,963 1,010,610 2,494,085 (19,023,117) Year2025 500,000 - 690,250 1,805,610 2,495,860 (21,018,977) Year2026 500,000 - 693,262 1,801,035 2,494,297 (23,013,274) Year 2027 500,000 - - 2,499,000 2,499,000 (25,012,274) $ 10,609,020 $ 9,803,507 $ 9,888,396 $ 10,764,795 41,065,718 Note that the 2009 hookup revenue was $498,189 and the 2008 revenue was $501,796. Based on this 2 year historical information the current projections assume the same level of hookup revenue. Total WAC and SAC hookup money received thru April 8, 2010 totals $219,155. NORTHWEST ASSOCIATED CONSULTANTS, INC. 4800 Olson Memorial Highway, Suite 202, Golden Valley, MN 55422 Telephone: 763.231.2555 Facsimile: 763.231.2561 planners@nacplanning.com MEMORANDUM TO: Otsego Mayor and City Council FROM: Daniel Licht, AICP RE: Otsego —Heritage Preservation Commission REPORT DATE: 18 February 2010 NAC FILE: 176.08 BACKGROUND The City Council has initiated a review of the Heritage Preservation Commission to consider its future role and responsibilities. The Planning Commission held a public hearing on 1 February 2010 for the purpose of considering possible amendments to or repealing of Chapter 96 of the Zoning Ordinance, which establishes the Heritage Preservation Commission and its responsibilities. The City Council discussed the issues raised at the public hearing at their meeting on 8 February 2010 and requested additional information regarding options for the structure of a history advisory committee ANALYSIS Heritage Preservation Commission. The Otsego Heritage Preservation Commission is established under the authority granted by Minnesota Statutes 471.193, which allows cities to engage in a comprehensive program to promote historic preservation of historic properties and places. Otsego enacted its historic preservation ordinance in 1994 and two years later became a Certified Local Government (CLG), which was intended to expand local involvement in preservation issues through a partnership between the City/HPC, the State Historic Preservation Office (SHPO), and the National Park Service. Historic preservations commissions are enabled to utilize zoning to promote (and ultimately require) preservation of public and private historic sites and buildings. Members of a heritage preservation commission are to include qualified individuals with at least two members with professional experience in history, architecture, architectural history, urban planning, landscape architecture, archaeology, curation, conservation , real estate, building trades or law and one member must be a representative of the County Historical Society. Heritage preservation commissions are required to be engaged in actively identifying, recording, designating, and preserving local historic properties and promoting its work through a variety of educational initiatives. City staff contacted SHPO staff regarding the status of the Otsego Historic Preservation Commission. SHPO staff responded that the Otsego Heritage Preservation Commission has never developed a robust local preservation program since being certified and has failed to meet certain minimal reporting requirements. Requirements to maintain the Heritage Preservation Commission includes ■ Submit an annual report to SHPO summarizing the HPC's activities: 1. Listing the number, names and dates of local designations approved. 2. Listing the number of building permits reviewed. 3. Listing the number of nominations to the National Register of Historic Places the HPC has commented on or sponsored. 4. Summary of information inventoried, method and location of storage and description of public accessibility. 5. Description of other activities, events or publications completed by the HPC. ■ A minimum process of designating one property as a local heritage site per year is required. ■ Documents must be organized and inventoried and public accessible. At least one member of the HPC must attend a SHPO sponsored training each year. SHPO staff indicates that the Otsego Historic Preservation has not met the activity requirements of the CLG program and that most of the activities of a heritage preservation commission require monetary commitments beyond that currently provided for by Otsego. State grants are available to aid in these required activities but often at a 1:1 match. Federal funding is available as well but requires financial commitments from the City as well. SPHO staff said that the Otsego Heritage Preservation Commission is still recognized as a CLG if only because they have been remiss in initiating the decommissioning process. Historical Preservation Society. A more common form of quasi -public historical organization is a historical preservation society. These are incorporated legal entities established under Minnesota Statutes 317A for Non Profit Corporations. As incorporated organizations, historical societies are able to own properties and collections, seek donations and affiliate with cities, counties and/or the Minnesota Historical Society to obtain public funding and grants. Historical Preservation Societies 2 can be more specifically focused on an area of interest, area, or structures than a heritage preservation commission. The process for establishing a historical society involves filing articles of incorporation with the Secretary of State, adoption of bylaws addressing membership, governance, trusties, handling of property and functional requirements. A historical society must be affiliated with the Minnesota Historical Society if it is to receive funding from a city or county government or to participate in State funded grants or other programs. Affiliation with the Minnesota Historical Society requires an annual $25.00 institutional membership and filing of an annual report. As a legally established corporation, there would be minimum administrative tasks required to be reported to the State regarding management of the organization. Advisory Committee. The City Council may establish a historic advisory committee distinct from the broadly State defined requirements and zoning powers of a heritage preservation commission and as an organization internal to the City's government structure unlike a historical society. Within the City's structure, the role, responsibilities and activities of the advisory committee would be defined at the discretion of the City Council. The City is able to establish an institutional membership for itself with the Minnesota Historical Society and is eligible to receive State grant funds and participate in programs. A City historic advisory committee could provide recommendations to the City Council on the management of potentially significant City owned properties, inventory and preserve City owned documents or other activities that may be identified in the future. Unaffiliated Group. The City Council could elect to repeal the heritage preservation provisions of the Zoning Ordinance and disband the Heritage Preservation Commission. The current members could choose to establish a private history club and undertake volunteer activities related to historic places and structures in Otsego, including publicly owned properties. The volunteer group could also inventory and preserve Otsego's existing collection of historic documents. Without affiliation to the City, however, the group may be limited in the funding it can receive from the City and would not be eligible for State grants and programs. CONCLUSION SHPO has stated that the Otsego Preservation Commission has not met the requirements for such organizations and is likely to decertify the City's organization unless more effort is put towards meeting the program requirements. The focus of historic preservation in Otsego primarily relates to City owned properties and documents. There are a limited number of scattered privately owned sites and buildings that may also have historic value. The Planning Commission and City Council have been reluctant to utilize the zoning authority of a Heritage Preservation Ordinance as it may be applied to private properties. Furthermore, the members of Otsego Heritage Preservation Commission have more of an informal experience and interest in documentation and preservation of Otsego's history. A historic advisory committee 3 may be the best form of organization for this group going forward based on the current level of potential historic subjects, as well as the commitment being made in time and funding supporting these efforts. C. Mike Robertson, City Administrator Tami Loff, City Clerk Andy MacArthur, City Attorney Ron Black, Heritage Preservation Commission 4