01-31-05 WSMEMO
Date: January 27, 2005
To: Mayor & Council
From: City Administrator Mike Robertson
Re: Council Workshop
I've enclosed an agenda for the Council Workshop on
Monday, January 31 at 5:30 p.m. The workshop was
set up both to review some items but also to
provide an opportunity for Council to discuss any
item it wishes on an informal basis.
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At the start of the workshop Gary Groen and I will
review the City's financial systems Gary will be
generating information which will be available at
the meeting. We will also review the final figures
for the 2004 budget, along with any other financial
account you wish to discuss.
Dan Licht, Ron Wagner, and Andy MacArthur will join
us at 6:30 to discuss the proposed,kDevelopment
Plan. I've enclosed information on that proposed
policy for your review.
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I N*
Date: January 27, 2005
To: Mayor & Council
From: City Administrator Mike Robertson
Re: Development Plan
I have enclosed copies of a memo and resolution Dan
Licht has drafted laying out the justification for a
Development Plan which places an anneal restriction on
how many new housing units can be built. This memo
addresses other growth related issues and is intended
to be the official summary of the Development Plan
which can be given to our residents and placed on the
City web site.
SUMARY
The City of Otsego limits development of housing to
400 -600 new units per year, based on;�a need to assure
that community infrastructure (streets, parks, schools,
etc) can keep pace with residential growth.
GROWTH ISSUES
TRAFFIC
Traffic congestion, even in the Otsego area, is not
caused by residential growth in Otsego. The reason is
that the majority of major traffic ways in Otsego are
used by people passing through Otsego. This is
certainly true of Interstate 94 and State Highway 101.
This is also true of all County Highways in Otsego.
Well over half the traffic on any Co my highway in
Otsego originates outside of Otsego and is also going
to a destination outside of Otsego. ,JThe majority of
traffic on County Road 39 originates ''in Monticello and
Monticello Township. The same is true with the
majority of traffic on County Road 19 in Otsego which
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also includes traffic going between the Albertville
area and Highway 10 in Elk River. County Road 37 is
mainly used by traffic going betweeniHighway 101 to I-
94 and the Albertville area. The majority of traffic
on County Road 36 is going between the Dayton area to
Highway 101.
On main city roads, called arterials' such as Odean
Avenue, Kadler Avenue, 85th Street, and MacIver Avenue,
the majority of traffic consists of n k on- Otsego
residents passing through the commun'ty.
Even some minor City roads, called collectors, such as
80th Street, Mason Avenue, and Jaber Avenue, have more
traffic generated by non - residents than residents.
All these streets serve as cut thro
residents. If there was no more gr
these roads would still continue to
increased traffic due to growth out
of alternative routes.
'outes for non -
in Otsego,
rience
Otsego and lack
SCHOOLS
The majority of residential growth in the Otsego area
has been within the Elk River SchoollDistrict in the
past and that will continue to be true in the near
future. The City of Otsego makes uplapproximately 150
of the Elk River School District. Even if Otsego
stopped growing, the School District,
continue to
have to build new schools to keep up with the growth in
Elk River, Rogers, Zimmerman, and Ramsey. The School
District has also indicated it would;jlook at changing
school boundaries if schools in a part of the district
had extra capacity while schools in other parts of the
district were overcrowded. Because of this if there
were ever any extra capacity at a school in Otsego it
is not likely it would be unused forilong. Otsego has
constantly communicated with the School District about
the amount and location of growth it'texpects to see in
the near future, which aids them with' their future
planning.
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PARKS
City parks are one area were residential growth has had
a positive impact. The City obtainsiland and fees for
park improvements from new development. These fees
have been used to improve Prairie Park (behind City
Hall) with new play equipment, a park shelter, and ball
fields. Additional improvements are)planned in the
near future. The City has also built two new parks,
School Knoll Park (just north of Otsego Elementary) and
Lily Pond Park (at Kadler Avenue and`1019t Street). The
City also has one of the few major Wright County parks
(on the Mississippi River just off 96th Street).
The City updates its park fees often so that they keep
up with construction and land inflation. The City
plans several new parks in the near future. The City's
goal is that eventually every neighborhood will be
within one mile of a park.
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CITY STREETS
Fees generated by residential growth have helped to
fund the construction of new major streets (78th
Street), the extension of existing streets (Page
Avenue, 70th Street), the reconstructiEon of existing
streets (85th Street, Kadler Avenue), and the paving of
gravel roads (Maclver Avenue). The City has also been
successful in obtaining federal grants to help fund
major road improvements such as Odean and Quaday
Avenue.
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In the near future the City plans to -ave the gravel
stretch of 70th Street between County, i Road 19 and
MacIver Avenue, pave the gravel stretch of Quaday
Avenue between County Road 42 and County Road 37, and
extend 78th Street west to Odean Avenue. In 2006 the
State plans to upgrade Highway 101 i4 Otsego from an
expressway to a freeway.
SEWER & WATER SYSTEMS
Sewer and water systems, including the sewer plant,
sewer lines, lift stations, water towers, wells, and
water lines, are all paid for by new development.
Existing residents and property owners have not paid
for any part of the sewer and water systems. The City
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was very conservative in how it borrowed money to
construct the sewer and water systemsk. Because of that
The City was able to pay the bonds off early, saving
itself millions of dollars in future interest payments.
devplanmps
NORTHWEST ASSOCIATED CONSULTANTS, INC.
4800 Olson Memorial Highway,
Telephone: 763.231.2555 Facsimile:
MEMORANDUM - draft
Suite 202, Golden Valley, MN 55422
763.2312561 planners @nacplanning.com
TO: Otsego Mayor and City Council
FROM: Daniel Licht, AICP
DATE: 20 January 2005
RE: Otsego — Comprehensive Plan; Development policy
NAC FILE: 176.08
BACKGROUND
The City Council has been discussing sanitary sewer policy issues in relation to the
planned expansion of the east WWTP and need to begin the process to expand the
west WWTP for continued implementation of theComprehensive Plan. One issue
raised by the City Council was the need to put on paper what the City has done in
practice in the stagng of urban development and infrastru ture improvements since
1998.
To this end, City staff has drafted the attached development policy for City Council
consideration. The body of the draft resolution is a restatement of existing policies
outlined in the Comprehensive Plan. The five points that the City would establish as
additional development policy with adoption of this resolution expand upon and provide
more specific direction to the Comprehensive Plan. : E
ANALYSIS
The five policy statements outlined by the draft resolution are summarized below:
Preliminary Plat Supply
■ Allows City and developers to plan into next phase ",of WWTP.
■ Developers can better anticipate phasing of large scale projects based on market
considerations. �k
■ City can anticipate capital improvements and service requirements.
■ Allocation of capacity in west WWTP is due largely., to developers final platting
concurrent with construction which advanced schedule for phase 2 expansion
several years.
■ Caps on preliminary and final platted lots create unnecessary competition for
capacity allocation versus market driven project build out.
Phasing Plan I
■ Provides City with more information and greater certainty regarding phasing of
development and need to schedule infrastructure and service expansions.
• Requires developers to provide more forethought i 6to overall project
development.
Sewer Allocation
■ Consistent with current policies to assure the City of payment to finance
construction of utilities.
■ Includes restriction on the amount of capacity allocated to any one project to
ensure competition between developers.
■ Provides exception for City Council to approve greater allocation if no
competition exists or other reasons.
■ Percentage of allowed capacity within any 24 month period based on the pace of
final plat approvals in the west sewer district, but must be reduced as capacity
increases.
Final Plat Approval
■ The City will only maintain a specific inventory of residential lots to avoid
pressure for sanitary sewer allocation and premature facility expansions.
■ Current two -year supply would be approximately 1,200 lots to give flexibility
between projects..
■ Building Department will have to monitor issuance of building permits to maintain
up to date record of available lot supply.
■ Policy may artificially constrain competition within sewer districts and limit
product choices.
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Building Permit Limits
■ Problematic to enforce after final plat approval creating legal lot of record entitled
to development in accordance with the Zoning Ordinance.
■ Building Department will have to monitor issuance of building permits to maintain
up to date record of available lot supply.
■ Policy may artificially constrain competition within sewer districts and limit
product choices.
■ Defining the period over which the average number"lof building permits is to be
evaluated incorporates buildout of current/planned capacity.
■ The current rate of construction within the east and , west sewer districts projects
to 215 dwellings per year.
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A.
Other Notes
■ Expansion of the east WWTP to 1.0 million gpd. creates potential for 1,416 new
dwelling units (at 250gpd. /du) based on approved final plats, policy reserving 30
percent of capacity for commercial or industrial use's and allocation of 40,000gpd.
to the City of Dayton.
■ An additional 1,400 dwelling units (at 250gpd. /du) could be added to the east
sewer district if the east WWTP is expanded to 1.5''million gpd. by 2009 based on
the approved MCPA permit.
■ Potential expansion of the west WWTP to 1.2 million gpd. would allow for final
platting of an additional 1,655 dwelling units (at 250gpd. /du), approximately equal
to the current supply of preliminary platted lots not final platted within the west
sewer district.
• Expansion of the west WWTP to 1.8 million gpd. would allow for an additional
1,680 dwelling units (at 250gpd. /du) to be final platted.
CONCLUSION
It is anticipated that the City Council will continue their disussion of sanitary sewer
policy at their meeting on 14 February 2005.
C. Mike Robertson, City Administrator
Judy Hudson, City Clerk/Zoning Administrator
Andy MacArthur, City Attorney
Ron Wagner, City Engineer
Lucinda Gardner, Farr Development Corporation
John Jackels, Emmerich Development Corporation;.
Dave Sebold, Insignia Development, Inc.
Ron Mullenbach, D.R. Horton, Inc.
Scott Dahlke, Quality Site Design, LLC
DRAFT - 20 JANUARY 2005 - DRAFT I I
RESOLUTION NO: 2005 -
CITY OF OTSEGO
WRIGHT COUNTY, MINNESOTA
RESOLUTION AFFIRMING AND EXPANDING UPON DEVELOPMENT
POLICIES FOR NEW RESIDENTIAL GROWTH WITHIN THE CITY OF OTSEGO.
WHEREAS, on 22 November 2004 the City adopted an updated
comprehensive plan; and,
WHEREAS, the Comprehensive Plan establishes goals, policies and
programs to provide direction, guidance and growth management for on -going
development of the City; and,
WHEREAS, the Comprehensive Plan establishes, in part, the following
polices based on the goal that expansion of urban uses shall occur on a staged
basis providing for a logical extension of related community services in a fiscally
responsible manner:
1. Boundary limits for urban expansion 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 ani orderly
development pattern for urban expansion that capitalizes on
in place utility and service investment.
3. Discourage urban development of parcels not contiguous to
existing development that expand the City's 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.
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6. Establish growth control mechanisms that allow specific
annual levels of residential developmentttthat can be
accommodated in a fiscally responsible ",manner based on
existing service capacities.
7. A maximum five year [land] supply for urban residential
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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 urb �n expansion in the
community.
9. Prevent premature subdivisions in areas that lack adequate
infrastructure such as utilities, streets or parks.
10. Require infrastructure improvements associated with new
development to be financed by those creating the need for
the improvements, except as may be identified by the City's
improvement plans. .!
11. Final plats shall be limited to development that will occur
within two years of City approval.
12. The City shall require financial securities to insure
performances on plats to provide an incentive for timely
development.
WHEREAS, the Comprehensive Plan, in part, establishes an interim land
use plan to provide criteria for evaluation of applicationOto allow development of
those uses guided by the Future Land Use Plan, requiring those making the
request to demonstrate:
1. Consistency with Comprehensive Plan: 'A proposed
development shall be consistent with the goals, policies and
recommendations of the Comprehensive, Plan and which
follow planned public improvement corridors or constitute an
infilling of development shall be deemed�consistent with the
City's growth strategies as outlined in the Comprehensive
Plan.
2. Adequate Waste Disposal Systems: A proposed
development shall be deemed to have adequate waste
disposal systems if within the sanitary sewer service district,
there is adequate sewer capacity in the present system to
support the proposed development if constructed to its
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maximum permissible density after reasonable sewer
capacity is reserved for planned public f6cilities and
commercial and industrial development projected for the
next five (5) years; or if in areas outside of the sanitary
sewer service district, there is adequate on -site sewer
capacity potential to support the development if constructed
to the maximum permissible density indicated in the Otsego
Comprehensive Plan.
3. Adequate Water Supply: A proposed development shall be
deemed to have an adequate water supply if the proposed
development has adequate sources of water, either from
public systems or private wells, to serve ?he proposed
development if constructed to its maximum permissible
density without causing an unreasonable depreciation of
existing water supplies for surrounding areas.
4. Adequate Drainage: A condition of adequate drainage shall
exist if: �
a. Surface or subsurface water retention and runoff is
such that it does not constitute a danger to the
structural security of structures within the proposed
development.
b. Structures within the proposed development will not
result in pollution of water sources from erosion and
siltation. E
C. The proposed development and related site grading
will not cause harmful and irreparable damage from
erosion and siltation on downhill or downstream land.
d. Factors to be considered in making these
determinations may include: average rainfall for the
area; the relation of the land to the floodplain; the
nature of soils and subsoils and their ability to
adequately support surface water' unoff and waste
disposal systems, the slope of the land and its effect
on effluents, and the presence of streams as related
to effluent disposal. ,
5. Adequate Streets: A proposed development shall be
deemed to have adequate streets to serve the development
when:
a. Streets that serve the proposed development are of
such a width, grade, stability, vertical and horizontal
alignment, site distance and surface condition that an
increase in traffic volume generated by the proposed
development will not create a hazard to public safety
and general welfare, not aggravate an already
hazardous condition, and when, with due regard to
the advice of Wright County and /or the Minnesota
Department of Transportation, said streets are
appropriate for the intended use.
b. The traffic volume generated by the proposed
development would not create unreasonable
congestion or unsafe conditions on streets existing at
the time of the application or proposed for completion
within the next two (2) years.
6. Adequate Public Service Capacity. A proposed
development shall be determined to have necessary public
service capacity when recreational facilities, police
protection, fire protection and other public facilities that must
be provided at public expenses can reasonably be provided
for within the next two (2) years.
7. Consistency with Capital Improvement Plans: A proposed
development shall be deemed consistent with capital
improvement plans when improvements nd /or services
necessary to accommodate the proposed subdivision have
been programmed in the Otsego, Wright 4County or other
regional capital improvement plans or that a revision to
capital improvement programs can be accommodated.
WHEREAS, the Comprehensive Plan establishes a goal that not more than
an average of six hundred (600) building permits for new residential dwelling units
be issued annually within the east and west sewer districts combined.
NOW, THEREFORE, BE IT RESOLVED THAT on -going development in
the City of Otsego shall be guided, directed and managed in accordance with the
goals and polices of the Comprehensive Plan and the following additional
stipulations:
1. The approximate supply of approved preliminary platted lots not final platted
within the east and west sanitary sewer service district shall not exceed two
hundred (200) percent of available waste water treatment capacity
designated for residential use within each sewer district, respectively.
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2. Potential developers within the east and west sewer district shall submit a
phasing plan with each preliminary plat application outlining the anticipated
build -out of a proposed subdivision. The phasing plan is subject to approval
of the City Council, its schedule shall be made a condition of preliminary plat
approval, and it shall be incorporated as part of the terms and conditions of a
development contract executed for the initial final plat of a phased
development. 11
3. Approval of a preliminary plat shall not guarantee access to sanitary sewer
service. Allocation of waste water treatment capacity shall be issued on a
first come, first serve basis, subject to approval of a final plat and execution
of a development contract (including specifically payment of SAC and WAC
fees for receipt of trunk sewer and water services) to assure the City of
timely development, except that not more than twenty (20) percent of the
total waste water treatment capacity designated for residential uses within
each individual sewer district shall be allocated to final plats within a single
development for a twenty -four (24) month period;' unless specifically
approved by the City Council.
4. The approval of final plats within the east and west sewer district combined
shall not exceed maximum two (2) year supply for urban residential
development based upon City estimated demand and City service
capabilities, defined currently as 1,500 dwelling units.
5. The average number of building permits for new residential dwellings within
the east and west sanitary sewer districts combined shall be determined
based on the ten (10) year period from 2000 to 2009.
ADOPTED this 14th day of February, 2005, by the City Council of the City of
Otsego, Minnesota.
CITY OF OTSEGO
BY:
Larry Fournier, Mayor
ATTEST:
Judy Hudson, City Clerk/Zoning Administrator
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