ITEM 3 West Sewer CapacityITEM 3
TPC3601 Thurston Avenue N, Suite 100
Anoka, MN 55303
Phone: 763.231 .5840
Facsimile: 763.427.0520
TPC(!-�)PlanningCo.com
MEMORANDUM
TO: Mayor and City Council
FROM: Daniel Licht, AICP
DATE: 14 March 2014
RE: Otsego — Comprehensive Plan; West Sewer District Capacity
TPC FILE: 101.01
BACKGROUND
The City adopted a Comprehensive Plan update in 1998 that coincided with
construction of municipal sanitary sewer and water utilities. The 1998 Comprehensive
Plan, as well as the most recent 2012 Otsego Comprehensive Plan update, establishes
a policy that 30 percent of available waste water treatment capacity is to be reserved for
commercial and industrial uses. The Comprehensive Plan also establishes that waste
water treatment capacity is only reserved for subdivisions with approved final plats that
have executed development agreements that include payment of sanitary sewer
availability charges.
With recent increased construction activity, City staff has had discussions with
developers about preliminary and final plat applications for new residential subdivisions.
Based on the development that occurred prior to the economic recession in the latter
part of the last decade, the West Sewer District requires review to establish the amount
of waste water treatment capacity that remains available for allocation. The City
Council discussed this issue and directed City staff to prepare information to allow for
interim use of the capacity reserved for commercial and industrial uses for residential
subdivisions.
Exhibits:
A. Draft Resolution 2014 -XX
B. Summary of West Sewer District Residential Developments
C. Pages from 2012 Comprehensive Plan
D. 2012 Comprehensive Plan Future Land Use Plan Map
ANALYSIS
W-WWTF Capacity. The West Waste Water Treatment Facility (W-WWTF) has
permitted capacity of 600,000 gallons per day (gpd). Seventy percent of the W-WWTF
capacity, or 420,000gpd, is available for residential development in accordance with the
Comprehensive Plan. Based on a residential equivalent connection (REC) factor of
175gpd., the W-WWTF has capacity to serve 2,400 dwelling units. The allocation of
capacity for commercial and industrial uses is 180,000gpd or 1,028RECs.
Residential Development. To date, the City has approved final plats for 2,200
dwelling units within the West Sewer District.
As of February 2014, 1,712 of the total dwelling units final platted (77.8 percent)
have been constructed. There are 272 attached and detached townhouses final
platted but not built within the West Sewer District, which is 12.4 percent of the
final platted dwelling units.
The rate of single family home construction has been increasing since 2010. City
staff estimates that there are less than 250 vacant developed single family lots
remain within West Sewer District and developers are proposing additional single
family subdivisions in response. The City approved a preliminary plat for Martin
Farms 2nd Addition consisting of 132 single family lots and for Zimmer Farms NW
consisting of 58 single family lots. A replat of Pleasant Creek Farms 4t" Addition
with a net decrease of 27 dwelling units has been also been preliminary platted.
The initial developer of these lots has released their option on the property but
there is interest from other developers in the project. After development of Martin
Farms 2nd Addition, Zimmer Farms NW and the replat of Pleasant Creek Farms
4t" Addition, there would be capacity for 37 dwelling units unallocated within the
limit on residential capacity established by the Comprehensive Plan.
Within the West Sewer District north of 1-94, the Future Land Use Plan guides an
additional 150 undeveloped acres for low density residential uses and 75
undeveloped acres of medium to high density residential uses. Assuming an
average density of 3.0 dwelling unit / acre (du/ac.) for single family lots and
5.Odu/ac. for townhouses, we estimate a total of 820 dwelling units could be
developed from the remaining undeveloped parcels within the West Sewer
District. City staff has reviewed a sketch plan for the portion of Martin Farms
west of MacIver Avenue that would result in development of approximately 140
single family lots.
Commercial/Industrial Development. The 30 percent capacity reserved for
commercial and industrial uses within the W-WWTF is equal to 180,000gpd or 1,028
RECs.
■ The City assumes as part of its utility facility planning that commercial and
industrial uses will average 3.5 RECs per gross acre. The capacity of the
2
existing W-WWTF reserved for commercial and industrial uses is therefore
estimated to support 294 acres of development.
The 2012 Comprehensive Plan Future Land Use Plan guides 1,210 acres north
of 1-94 within the West Sewer District for development of commercial, office and
industrial uses. Total capacity needed to serve this area is estimated as
741,125gpd or 4,235 RECs or Only the existing developed uses in the Otsego I-
94 West Industrial Park and Kaleidoscope Charger School within these areas are
connected to sanitary sewer.
■ An additional 308 acres south of 1-94 within the West Sewer District is guided by
the Comprehensive Plan for development of commercial, office and industrial
uses.
Actual W-WWTF Usage. The Utilities Operations Supervisor has provided information
that the average daily flow of wastewater to the W-WWTF was 286,OOOgpd or 48
percent of the permitted capacity of 600,OOOgpd. The Utilities Operations Supervisor
and City Engineer estimate that up to 20 percent of the actual flow to the W-WWTF is
inflow and infiltration of stormwater. As such, actual sewage flow to the W-WWTF is
228,800gpd or 38 percent of permitted capacity.
Policy. The City has adequate sewer capacity within the West Sewer District based on
established policies to continue build out of existing residential final plats and allow final
platting of Martin Farms 2nd Addition, Zimmer Farms NW (to be known as Heritage
Pointe) and the replat of Pleasant Creek Farms 4th Addition. There is no issue currently
with available sewer capacity for commercial and industrial uses with only limited
existing allocation from the available capacity reserved for these uses. Total build out of
the West Sewer District north of 1-94 would require an additional 5,050 RECs or
883,750gpd. of capacity, which exceeds the planned Phase 2 expansion of the W-
WWTF to 1.2 Million gpd. so it is necessary to consider the staged growth within the
current west sewer district as well as possible future expansions beyond the current
boundary. Development of additional residential subdivisions beyond these projects will
require a policy decision related to the capacity reserved for commercial and industrial
uses (absent initiation of plans to expand the W-WWTF). Even if all of the remaining
residentially guided parcels within the West Sewer District were to develop, which is
unlikely, City staff estimates there would still be available capacity for potential
commercial or industrial development if such a project were to emerge.
City staff therefore recommends a temporary suspension as to the limits on residential
development exceeding 70 percent of the current permitted capacity of the W-WWTF.
This action will maintain a supply of vacant developed lots to supply the continued
increases in building activity with the City primarily occurring in the West Sewer District.
This continued activity is important to the City in terms of revenue from utility availability
and connection charges funding debt service for the construction of the sewer and
water systems. A temporary suspension of the 70 percent policy limit will also allow the
City Council sufficient time to consider the timing and process for expansion of the W-
3
WWTF, including an opportunity to receive additional evidence of a sustained economic
recovery.
CONCLUSION
This item was discussed at the Administrative Subcommittee on 12 February 2014,
which indicated its support for the proposed suspension of residential capacity limits
within the West Sewer District. Prior to sending this issue to the Planning Commission
for their input and recommendation, the Administrative Subcommittee requested that
the full City Council consider the information prepared by City staff. The Adminstrative
Subcommittee also requested that City staff provide an overview of the broader growth
management policies adopted by the Comprehensive Plan.
C. Lori Johnson, City Administrator
Ron Wagner, City Engineer
Andy MacArthur, City Attorney
Dan Jordet, Administrative Services Director
Kurt Neidermeier, Utility Operations Supervisor
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RESOLUTION NO.: 2014 - XX
CITY OF OTSEGO
COUNTY OF WRIGHT, MINNESOTA
A RESOLUTION INTERPRETING POLICIES OF THE 2012 COMPREHENSIVE PLAN
REGARDING WASTE WATER TREATMENT FACILITY CAPACITY WITHIN THE
WEST SEWER DISTRICT.
WHEREAS, the City of Otsego has adopted a Comprehensive Plan most
recently amended on 12 December 2012; and,
WHEREAS, the Comprehensive Plan establishes goals, policies and programs
to provide direction, guidance and management for on-going development of the City;
and,
WHEREAS, the Comprehensive Plan establishes a policy that thirty (30) percent
of available waste water treatment facility capacity within each sewer service district
shall be reserved for commercial and industrial uses; and,
WHEREAS, the intent of this policy is to allow for urban development to occur on
a staged basis providing for logical expansion of City services and promote balance in
the City's tax base; and,
WHEREAS, City staff has completed an analysis identifying that residential
development with approved final plats within the West Sewer District has almost fully
utilized the available capacity within the West Waste Water Treatment Facility allocated
for such uses in accordance with the policy of the Comprehensive Plan; and,
WHEREAS, the City staff analysis identifies that almost all of the capacity
reserved for commercial or industrial uses within the West Sewer District by the
Comprehensive Plan is unallocated; and,
WHEREAS, the City Engineer and Utilities Operations Supervisor state that
actual sewage flow to the West Waste Water Treatment Facility is approximately thirty
eight (38) percent of permitted capacity; and,
WHEREAS, the City Council will need to consider the possible expansion of the
West Waste Water Treatment Facility including factors related to the timing of such
action, projections for continued demand for additional capacity, funding options for the
cost of an expansion, the regulatory approval process and construction schedules; and,
WHEREAS, the City needs to continue to approve development and allocate
sewer capacity for waste water treatment in accordance with the growth management
provisions of the Comprehensive Plan so as to maintain a supply of developable
property for residential, commercial, and industrial uses; and,
WHEREAS, continued development of residential, commercial, office and
industrial uses provides for payment of utility availability and connection charges
required for debt service related to construction of the City's sanitary sewer and water
utilities.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Otsego
that Otsego that:
The City Council will consider approval of additional residential development
within the West Sewer District that would result in allocation of capacity at the
West Waste Water Treatment Facility for such uses in excess of 70 percent of
the currently permitted capacity.
2. Approval of any development proposal shall be consistent with all other
applicable policies of the Comprehensive Plan including, but not limited to, the
following:
Allocate available municipal sanitary sewer and water service only to
lands within the immediate urban service area on a first come, first serve
basis.
Expand the boundaries of the sewer service district only when the criteria
established by the Urban Service Staging Plan are satisfied.
3. Allowance of residential development within the West Sewer District that would
utilize more than 70 percent of the currently permitted capacity at the West
Waste Water Treatment Facility shall be an interim measure expiring upon the
awarding of any contract to expand the treatment capacity of the facility.
MOTION BY:
SECOND BY:
ALL IN FAVOR:
THOSE OPPOSED:
ADOPTED by the City Council of the City of Otsego this 10th day of March,
K11E,>A
ATTEST:
Tami Loff, City Clerk
CITY OF OTSEGO
BY:
Jessica L. Stockamp, Mayor
3
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City of Otsego, Minnesota Comprehensive Plan
Growth Management
Goal #1: Expansion of urban uses shall occur on a staged basis providing for a
logical extension of related community services in a fiscally responsible
manner to maintain the City's current favorable local tax rate.
Policies:
Boundary limits for urban development shall be clearly delineated and expanded
in a staged manner such that urban uses be prohibited from prematurely
encroaching into rural areas.
2. Promote infill development and follow an orderly pattern for urban expansion that
maximizes investment in existing utility and transportation infrastructure.
3. Discourage subdivision of parcels not contiguous to existing urban development
that expand the City's existing service delivery areas and create scattered nodes
of development.
4. Promote commercial and industrial development in order to create more
employment opportunities and strengthen the tax base within Otsego.
5. Thirty (30) percent of available waste water treatment plant capacity within each
sewer service district shall be reserved for commercial and industrial
development.
6. Establish growth control mechanisms that allow specific annual levels of
residential development that can be accommodated in a fiscally responsible
manner based on existing service capacities.
7. A maximum five (5) year supply of land for for urban residential development
shall be provided in the sanitary sewer service district based upon City estimated
demand.
8. The City shall plan its utility service and street extensions to accommodate long
term growth and urban expansion in the community.
9. Prevent premature subdivisions in areas that lack adequate infrastructure such
as utilities, streets or parks.
Policy Plan
Page 17
6 City of Otsego, Minnesota Comprehensive Plan
10. Maintain a Capital Improvement Plan that allows the City to properly plan for,
schedule and finance public improvements and require infrastructure
improvements associated with new development to be financed by the developer
except as identified in the Capital Improvement Plan.
11. Final plats shall be limited to development that will occur within five (5) years of
City approval.
12. The City shall require financial securities to insure performances on plat
construction and to provide an incentive for timely development.
Economic Development
Goal #'I: Attracting, retaining, and expanding businesses and industry is a priority
for diversifying Otsego's tax base.
Policies:
1. Expand Otsego's tax base through economic development promotion of
commercial and industrial opportunities within the City to assist in paying for
needed services and reduce tax impacts on housing costs.
2. Encourage commercial and industrial development to create new job
opportunities within Otsego. and expand the local tax base
3. Utilize the Economic Development Commission to establish specific economic
development goals, policies for the use of financial incentives and assistance
related to commercial and industrial development and implement programs to
promote Otsego through outreach to existing and potential businesses.
4. Streamline the development review process for proposed commercial and
industrial developments.
5. Promote identification of individual commercial areas within Otsego through a
continuing program of high visibility corridor enhancements, civic beautification,
tree planting, requirements for businesses and industries uses to provide for high
quality building materials and site landscaping and other measures that will
promote an aesthetically pleasing environment.
Policy Plan
Page 18
City of Otsego, Minnesota Comprehensive Plan
Urban Service Area
The urban service area, as graphically illustrated on the Growth Staging Map, is defined
as the area of the City where sanitary sewer and water utilities are to be made available
in accordance with the Urban Service Staging Plan and includes the following elements:
Sewer Service District. The Sewer Service District identifies lands to which
City sanitary sewer and water service is to be made immediately available and is
comprised of two sub -districts. The immediate urban service area identifies
lands that have received City entitlements to development, have made a financial
commitment to obtain municipal utilities, and have been allocated sewer
capacity. The intermediate urban service area identifies the remaining lands
within the Sewer Service District that are eligible to access municipal utilities, but
have not had development entitlements approved or provided the financial
commitments to obtain sanitary sewer and water services.
There are two designated Sewer Service Districts. The East Sewer Service
District generally overlays that area adjacent to the TH 101 corridor and is served
by a waste water treatment facility with a capacity of 1,000,000 gpd., collection
system and potable water system. The City has also established a West Sewer
Service District overlaying the area adjacent to Interstate 94 and surrounding the
City of Albertville served by a second waste water treatment facility with a current
capacity of 600,000 gpd., collection system and water facilities. The City will
consider the expansion of the Sewer Service District boundaries only when:
Land to be included in the sanitary sewer service district is not enrolled in
an agricultural preservation program.
2. The land lies within one-quarter mile of the existing sanitary sewer service
district boundary or presents environmental problems that can be
alleviated by the delivery of City water and sewer service.
3. The land is located within the designated urban service expansion area
and the expansion is in accordance with the order of the staging plan.
4. The potential sewer discharge of the land area to be included is within
available capacity of the City's existing facilities.
5. The developer shall hold the City harmless should limitations on sewer
hookups be imposed.
Natural Environment Plan
Page 63
rr.
City of Otsego, Minnesota Comprehensive Plan
6. The developer and/or benefiting property owners assume the significant
majority of improvement/service costs.
7. The land does not qualify as a premature development or subdivision as
regulated by the Subdivision Ordinance.
8. Inclusion of the land in the sanitary sewer service district is necessary to
achieve a five year supply and respond to a shortage of land to which
service is available.
9. Commercial/industrial development and requests for service to existing,
unsewered residential areas shall be given priority over new residential
development for service district expansion requests.
Urban Service Expansion Area. The urban service expansion area shown on
the Urban Service Staging Plan defines areas of the City where the sanitary
sewer and water utilities are to be expanded in the future. It is anticipated that as
the sanitary sewer service district(s) reach near saturation, they will be expanded
into the designated urban service expansion area. No timetable for expansion of
the sanitary sewer service district is established or implied as part of the
Comprehensive Plan.
As a transitional district, densities of one dwelling unit per ten acres of land are to
be allowed in the urban service expansion areas until these lands are brought
into the sanitary sewer service district for development at urban densities in
accordance with the Future Land Use Plan.
The numerical designations of subdistricts within the urban service expansion
area signifies the waste water treatment facility intended to provide service as
well as the order these areas are to be served when capacity is available. The
order for expanding the sanitary sewer service districts is based on minimizing
infrastructure investments and maintenance of concentrated service areas.
Long Range Urban Service Area. The long range urban service area is
designated for that portion of the community where one plus acre unsewered
single family residential development has occurred. The extension of municipal
sewer and water service to this area is not anticipated until it may be mandated
by pollution concerns or specifically requested by property owners (via petition).
Further unsewered development in the area is not recommended and residential
development density is limited to one dwelling unit per 40 acres unless the City
Council finds that one or more of the following criteria are met:
The development will result in completion of an unfinished street network.
Land Use Plan
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