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,
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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