ITEM 3.6 West Sewer DistrictP
OtCI�ezoF
MINNESOTA CDP
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Planning
City Planner Licht
12 May 2014
PRESENTER(s):
REVIEWED BY:
ITEM #:
City Planner Licht
City Administrator Johnson
3.6 — West Sewer District
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends approval of a resolution allowing interim suspension of residential capacity limits
within the West Sewer District.
ARE YOU SEEKING APPROVAL OF A CONTRACT? I IS A PUBLIC HEARING REQUIRED?
No. I No.
BACKG RO U N D/J USTI F ICATI O N:
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.
The analysis prepared by City staff shows that there is adequate sewer capacity within the West Sewer
District based on established policies to continue build out of existing residential final plats. 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 land uses
guided by the Comprehensive Plan within 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., meaning 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 those projects currently final platted 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 has drafted a resolution to temporary suspend the policy 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 support the continued increases in building activity within
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-
WWTF, including an opportunity to receive additional evidence of a sustained economic recovery.
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. The
City Council also discussed the analysis prepared by City staff, including a review of broader growth
management policies adopted by the Comprehensive Plan, at a work session on 24 March 2014 and
forwarded the proposed resolution to the Planning Commission. The Planning Commission considered
the draft resolution at their meeting on 5 May 2014 and voted 4-0 to recommend City Council approval.
SUPPORTING DOCUMENTS: ❑ ATTACHED ❑ NONE
A. Resolution 2014-29
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
Motion to approve Resolution 2014-29 interpreting the policies of the 2012 Comprehensive Plan
regarding waste water treatment facility capacity within the West Sewer District.
BUDGET INFORMATION
FUNDING: I BUDGETED: ❑ YES
NA I
o NO
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS:
RESOLUTION NO.: 2014 - 29
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, City staff has reviewed the listing of tax forfeited parcels to make
recommendations as to potential public uses of said properties; 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 has not been allocated to approved developments; and,
WHEREAS, the City Engineer and Utilities Operations Supervisor state that
actual flow to the West Waste Water Treatment Facility is approximately 48 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; and,
WHEREAS, the memorandum dated 30 April 2014 prepared by the City Planner,
The Planning Company LLC, is incorporated herein by reference.
WHEREAS, the Otsego Planning Commission, at their regular meeting on 5 May
2014, considered the West Sewer District capacity issue and by a 4-0 vote recommend
that the City Council approve the proposed resolution based on the aforementioned
findings.
that:
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Otsego
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:
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 12th day of May,
2014.
CITY OF OTSEGO
Jessica L. Stockamp, Mayor
ATTEST:
Tami Loff, City Clerk