ITEM 3 1ITEM 3.1
3601 Thurston Avenue N, Suite 100
Anoka, MN 55303
Phone: 763.231.5840
Facsimile: 763, 427.0520
TPCTPC@) Planni ngCo. com
MEMORANDUM
TO: Otsego Planning Commission
FROM: Daniel Licht, AICP
DATE: 30 April 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. 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 2"d Addition consisting of 132 single family lots and for Zimmer Farms NW
consisting of 58 single family lots. A replat of Pleasant Creek Farms 4th 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 2"d Addition, Zimmer Farms NW and the replat of Pleasant Creek Farms
4th 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.
■ There are 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. But City staff estimate that inflow and
infiltration of stormwater can be as much as 20 percent of the actual flow to the W-
WWTF is at peak periods. As such, actual sewage flow to the W-WWTF is
approximately 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 2 d 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-
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. The City Council also discussed the information outlined
herein and a review of broader growth management policies adopted by the
Comprehensive Plan at a work session on 24 March 2014. The Planning Commission
will consider the draft resolution at their meeting on 5 May 2014. City staff requests a
motion recommending City Council approval of the draft resolution regarding WWTF
capacity within the west sewer district.
C. Lori Johnson, City Administrator
Ron Wagner, City Engineer
Andy MacArthur, City Attorney
Dan Jordet, Administrative Services Director
Kurt Neidermeier, Utility Operations Supervisor
4
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, 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 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:
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
utilizing 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 day of
2014.
CITY OF OTSEGO
Jessica L. Stockamp, Mayor
ATTEST:
Tami Loff, City Clerk
Plat #
Subdivision
0
m 3
N
0
m
o
3
',
o
City
Sewer & Septic/
Water Well # of REC's
# of Lots
/ Units
guilt
%Completed
Balance % Remaining
181
ARBOR CREEK
X
X
97
97
100.00%
0
0.00%
196
ARBOR CREEK 2ND ADDN
X
X
176
173
98.30%
3
1.70%
221
ARBOR CREEK 3RD ADDN
X
X
176
25
14.20%
151
85.80%
230
ARBOR CREEK 4TH ADDITION
X
X
17
17
100.00%
0
0.00%
195
ARBOR PLACE
X
X
11
10
90.91%
1
9.09%
2151
DUERR CREEK
X
X
75
70
93.33%
5
6.67%
211
HERITAGE ESTATES VILLAS CIC 92(1)
X
X
100
100
100.00%
01
0.007/.
220
KITTREDGE CROSSING CONDO CIC97
X
X
33
33
100.00%
0
0.00%
191
KITTREDGE CROSSINGS 2ND ADDN
X
X
22
22
100.00%
0
0.00%
192
KITTREDGE CROSSINGS 3RD ADDN
X
X
20
20
100.00%
0
0.00%
203
KITTREDGE CROSSINGS 5TH ADDN
X
X
11
11
100.00%
0
0.00%
204
KITTREDGE CROSSINGS 6TH ADDN
X
X
49
49
100.00%
0
0.00%
KITTREDGE CROSSINGS 7TH ADDN
X
X
108
30
27.78%
78
72.22%
223
KITTREDGE CROSSINGS 9TH ADDN
X
X
56
18
32.14%
381
67.86%
270
KITTREDGE CROSSINGS 10TH ADDN
X
X
28
28
100.00%
0
0.00%
KITTREDGE CROSSINGS 11TH ADDN
X
X
10
0
0.00%
10
100.00%
197
MARTIN FARMS
X
X
2341
217
92.74%
17
7.26%
MARTIN FARMS 2ND ADDN
X
X
66
0.00%
66
100.00%
194
OTSEGO PRESERVE
X
X
42
38
90.48%
4
9.52%
2051
OTSEGO PRESERVE 2ND ADDN
X
X
65
65
100.00%
0
0.00%
2181
OTSEGO PRESERVE 3RD ADDN
X
X
39
39
100.00%
01
0.00%
187
PLEASANT CREEK FARMS 2ND ADDN
X
X
X
X
66
66
100.00%
0
0.00%
208
PLEASANT CREEK FARMS 3RD ADDN
X
X
X
X
33
33
100.00%
0
0.00%
6
PLEASANT CREEK FARMS 4TH ADDN(2)
X
X
X
X
1311
53
40.46%
78
59.54%
222
REMINGTON COVES(3)
X
X
X
113
61
53.98%
52
46.02%
188
SUNRAY FARM
X
X
89
85
95.51%
4
4.49%
198
SUNRAY FARM 2ND ADDN
X
X
71
70
98.59%
1
1.41%
199
ZIMMER FARMS
X
X
150
150
100.00%
0
0.00%
207
ZIMMER FARMS 2ND ADDN
X
X
3
3
100.00%
0
213
ZIMMER FARMS 3RD ADDN
X
X
47
471
100.00%
0
224
ZIMMER FARMS 4TH ADDN
X
X
581
581
100.00%
0
Updated 5/1/2014
1 Built portion of Zimmer Farms 6th Addition
2 Concept plan presented to replat 74 townhouse units as 47 single family lots. (-27 net du)
3 Includes 35 Detached townhouse units
4 Total includes 240 townhouse units
Updated 5/1/2014
N
n
o
3
City
0
0
m
Sewer & Septic/
# of Lots
Plat # Subdivision
m
�
m o'
Q.
Water Well # of REC's
/Units
guilt
%Completed
Balance
% Remaining
27 ZIMMER FARMS 5TH ADDN
X
X
24
24
100.00%
0
0.00%
234 ZIMMER FARMS 6TH ADDN
X
I
I 1X1
46
0
0.00%
46
100.00%
ZIMMER FARMS 7TH ADDN
X
X
27
01
0.00%
27
100.00%
TOTAL(5)
2293
17121
74.66%
581
1 Built portion of Zimmer Farms 6th Addition
2 Concept plan presented to replat 74 townhouse units as 47 single family lots. (-27 net du)
3 Includes 35 Detached townhouse units
4 Total includes 240 townhouse units
Updated 5/1/2014
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