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HomeMy WebLinkAboutMinutes i� ��tJV� �ri°t � y � ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... ���� �ri e ar�d PC�� t MINUTES COTTAGE GROVE CITY COUNCIL June 21 , 2017 COUNCIL CHAMBER 12800 RAVINE PARKWAY SOUTH REGULAR MEETING - 7:00 P.M. 1. CALL TO ORDER The City Council of the City of Cottage Grove, Washington County, Minnesota, held a regular meeting on June 21, 2017, at Cottage Grove City Hall, 12800 Ravine Parkway. Mayor Bailey called the meeting to order at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE The audience, staff, Mayor, and City Council Members recited the Pledge of Allegiance. 3. ROLL CALL The following were present: Mayor Myron Bailey, Council Member Steve Dennis, Council Member Wayne Johnson, and Council Member La Rae Mills. Council Member Dave Thiede was not present. Also present were: Charlene Stevens, City Administrator; Korine Land, City Attorney- LeVander, Gillen & Miller, PA; Ryan Burfeind, Assistant City Engineer; John Burbank, Senior Planner; Les Burshten, Public Works Director; Joe Fischbach/HR Manager/City Clerk; Jennifer Levitt, Community Development Director/City Engineer; John McCool, Senior Planner; Robin Roland, Finance Director; Craig Woolery, Director of Public Safety; Bob LaBrosse, Chief Building Official; Samantha Drewry, Code Enforcement Officer. 4. OPEN FORUM Mayor Bailey opened the open forum and asked if anyone in the audience wished to address the Council on any item that was not on the agenda. As no one wished to address the Council, Mayor Bailey closed the open forum. 5. ADOPTION OF AGENDA Motion by Council Member Dennis, second by Council Member Mills, to adopt the agenda. Motion carried: 4-0. CITY OF COTTAGE GROVE • 12800 Ravine Parkway • Cottage Grove, Minnesota 55016 www.cottage-grove.org • 651-458-2800 • Fax 651-458-2897 • Equal Opportunity Employer City Council Meeting Minutes June 21, 2017 Page 2 6. PRESENTATIONS A. 2016 Comprehensive Annual Financial Report Staff Recommendation: Presentation of the 2016 Comprehensive Annual Financial Report by Matt Mayer, BerganKDV. After presentation, motion to accept the report. Finance Director Robin Roland introduced Matt Mayer of BerganKDV to present the the 2016 Comprehensive Annual Financial Report. BerganKDV has been the City's audit firm for the last four years. Mr. Mayer thanked the Council for the ability to present the results of the 2016 audit. The City has a responsibility to prepare financial statements for the public, which also require an independent audit. BerganKDV tests, examines, and gives an opinion on the financial statements so users can be assured that the Comprehensive Annual Financial Report is a true and accurate picture of the City's financial position. They are also required by the State Auditor's Office to do a legal compliance audit; he explained what that audit entailed and stated there were no findings for 2016. Mr. Mayer mentioned the Comprehensive Annual Financial Report is an award-winning document; it's voluntarily submitted annually to the national Government Finance Officers Association for review, and for the 26th consecutive year it met the criteria for an award of Certificate of Excellence and Achievement in Financial Reporting. Mr. Mayer spoke about the performance of the General Fund, as well as each of the City's Enterprise Funds. The General Fund is the main operating fund of the City; it's looked at in terms of the budget. The Council establishes a budget and revenue stream, mostly with property tax dollars, to cover expenses. Revenue was much better than anticipated at $16 million. Licenses and permits and charges for services were increased; development in Cottage Grove has been strong for the last couple of years, and those two revenue streams are directly tied to development. Spending came in under budget for the year by $140,000; he specifically mentioned Public Works and the cost savings realized due to the mild winter. The General Fund balance actually increased about $187,000 for the year. Budgetary goals were also achieved; it was a very successful year for the General Fund. Mr. Mayer reviewed each of the Enterprise Funds, which are run like a business; the revenue is based on a rate structure, as opposed to property taxes, and you need to cover the everyday costs of doing business in these funds. Adjustment to rate structures are necessary in these funds. EMS is a prime example; there was an adjustment of approximately 3% made to the rate structure, and the volume of calls in 2016 increased significantly, so that fund balance increased. There's also been good progress made on paying off the Interfund Loan, used to build the current City Hall/ Public Safety building; there's approximately $1 million owed yet to the Water Fund by the City. City Council Meeting Minutes June 21, 2017 Page 3 Mr. Mayer compared Cottage Grove's financials with those of other local cities; with the revenue stream, Cottage Grove brings in $22 less per capita than a typical city our size. The main reason for that is the property tax levy; Cottage Grove residents pay about $50 less per capita than a typical city in the 20,000-100,000 population range. Cottage Grove spends $70 less on everyday operating costs; a typical city spends $700 per capita to run services and Cottage Grove spends about $632 per capita. Debt service obligations for Cottage Grove are significantly less than a typical city. The tax rate for Cottage Grove in 2016 was 43%; a typical city in the State was 46.5%. A typical city in the seven-county metropolitan area was at 43%, so Cottage Grove is right in line with peer group cities. Mr. Mayer thanked Director Roland and her team for making the audit process very smooth. Mayor Bailey also thanked Director Roland and her staff for their hard work. He also thanked the City Council members for keeping tax rates low while continuing to provide excellent services to our citizens. Mayor Bailey thanked Mr. Mayer for his presentation. Motion by Council Member Johnson to accept the 2016 Comprehensive Annual Financial Report, second by Council Member Mills. Motion carried: 4-0. B. Comprehensive Plan Update Mayor Bailey stated Phil Carlson with Stantec would speak on this issue. Mr. Carlson stated Cottage Grove and every community in the metro area is updating its Comprehensive Plan; the update has to be submitted to the Met Council by the end of 2018. They've been working with a Steering Committee and City Staff, and they also gave an update to the Planning Commission last month. Mr. Carlson indicated there have been a number of ineetings, including a public open house, where they reviewed the Plan process. They feel they're one-third of the way through the process. They're updating the 2030 Comprehensive Plan, which will now become the 2040 Comprehensive Plan. There were a lot of different sources who provided input to them, including the Chamber of Commerce. From that, they determined there were ten areas they'd focus on in the Plan: 1) Commercial retail; 2) Business and Jobs; 3) Transportation Connections; 4) Housing Options; 5) Great Schools; 6) Parks, Trails, and Recreation; 7) Serving All Generations; 8) The Mississippi River and Lower Grey Cloud Island; 9) Environmental Stewardship; and 10) Defining Our Character. They'll begin working this summer with Senior Planners John McCool and John Burbank and Community Development Director/City Engineer Jennifer Levitt to see how the goals they have will actually impact the various elements in the City's Plan. This Fall they'll be providing the alternative section of the Plan, which is a draft; Mr. Carlson stated that's where the real fun happens. They take the information they've City Council Meeting Minutes June 21, 2017 Page 4 gathered and the basic themes, together with the ideas and energy in the community, and put together plans for the future for the community. Those will be discussed at the Steering Committee, the Planning Commission, and the Council will, of course, be updated at key points. Mayor Bailey thanked Mr. Carlson for the update and stated he liked the direction the City was moving on the Comprehensive Plan. 7. CONSENT AGENDA A. Approve the June 7, 2017 City Council Regular Meeting Minutes. B. Authorize issuance of a massage therapist license to Sophia Enriquez- Groess DBA Sports Massage, LLC. C. Authorize issuance of tobacco licenses for the new Hy-Vee (7280 East Point Douglas Road South), and Hy-Vee Gas, 7282 East Point Douglas Road South). D. Adopt Resolution 2017-083 approving the placement of a permanent all- way stop at the intersection of 95th Street and Jamaica Avenue. E. Approve the 2017/2018 Grant Agreement for Municipal Recycling with Washington County in the amount of$117,760. F. Approve the Minnesota Department of Health Grant Agreement in the amount of$10,000 to be used to help fund construction of a new monitoring well. G. Appoint Dan Myers to fill the vacated position on the Economic Development Authority, to terms ending on December 31, 2023. H. Adopt Resolution 2017-086 appointing Bond Trust Services as the paying agent for the General Obligation Tax Increment Bonds of 2004A. I. Approve the 2nd Amendment to AT&T/Cingular Wireless Site Lease Agreement on the West Draw Water Tower. J. Adopt Resolution 2017-087 approving Minnesota Law 2017, Chapter 1, Article 6, Section 15; Gateway North TIF District 1-2. K. Adopt Resolution 2017-088 authorizing the preparation of plans and specifications for the construction of Well No. 12. L. Pass Ordinance 983 amending City Code Titles 4-1-5K and 4-1-6 to address potholes and deteriorated pavement surfaces at private commercial access drives and parking areas within the City. M. Authorize issuance of a single occasion gambling permit to Basic Needs Inc. of South Washington County for a raffle at the John P. Furber Farm on August 10, 2017. N. Approve the Agreement for Electrical Inspection Services with Dietrich Electric, Inc. O. Adopt Resolution 2017-092 accepting the donation of a portion of real estate at the southern tip of Joseph Labathe's Settlers Island from Mr. James E. Hard. City Council Meeting Minutes June 21, 2017 Page 5 Council Member Mills wished to pull Item L and Council Member Dennis wished to pull Item K for comment and/or further discussion. Council Member Mills stated she liked seeing this item on the agenda, as she felt it needed to be addressed. She thought perhaps the six-inch pothole width was too small but wasn't sure if the six-inch diameter would be jarring to any vehicles; she proposed 36 square inches, four inch by eight inch and felt that would make more sense on the pothole size. Mayor Bailey stated some of those drives/parking lots are in pretty bad shape with deteriorating asphalt, large potholes, etc. The City's working with the property owners to resolve this issue. City Administrator Charlene Stevens stated they needed an objective measurement, which needs to be defined in the ordinance. City Engineer Jennifer Levitt stated it's difficult to find the correct measurement; she felt if they could define it as 36 square inches of surface area with a two-inch depth they could revise the resolution to make that modification. Council Member Mills stated she'd be happy with that revision. Council Member Dennis added that a former City Council Member, a tire expert, had stated that the average width of tires is eight inches. Council Member Dennis hoped the City would be fair to the stakeholders, the owner of the property and the tenants of the property, as costs tend to be passed on to the tenants. Council Member Dennis stated he pulled this item to give Engineer Levitt an opportunity to speak on the location of the well and safety considerations. Engineer Levitt stated Well No. 12 has been in the Capital Improvement Program for some time; it's needed as the City looks at residential, commercial, and industrial growth in order to supply enough water to our residents. Staff is proposing expediting drilling of Well No. 12; those funds come out of the Utility Funds, not out of the General Levy. Regarding safety, we've consulted with the Minnesota Department of Health, the Pollution Control Agency (PCA), and the Department of Natural Resources regarding the placement and siting of Well No. 12. To the best of their knowledge, it's believed they're upgrading to out of the contamination zone. The PCA will be doing an additional pump test on our monitoring well near the siting of Well No. 12 to ensure the test results are still valid; they'll be reevaluating those test results in mid-July. At that time, there will be final confirmation on the location and that the well that will be drilled will be safe and compliant with all health-based values for PFCs. Motion by Council Member Mills to approve the Consent Agenda without Item L for a separate vote, second by Council Member Johnson. Motion carried: 4-0. Motion by Council Member Mills to amend and pass Ordinance 983 by changing the measurement of surface deterioration to a standard of two inches by a 36 square-inch surface area, second by Council Member Dennis. Motion carried: 4-0. 8. APPROVE DISBURSEMENTS City Council Meeting Minutes June 21, 2017 Page 6 A. Approve payments for the period of 6/7/17-6/22/17 in the amount of $1,456,662.37. Motion to approve disbursements by Council Member Dennis, second by Council Member Mills. Motion carried: 4-0. 9. PUBLIC HEARINGS — None. 10. BID AWARDS — None. 11. REGULAR AGENDA A. Solicitor Application Denial - Appeal by Insight Pest Solutions Staff Recommendation: 1. Hold a hearing to consider the appeal of a solicitor application denial for Insight Pest Solutions. 2. Reject the appeal and uphold the application denial. City Clerk Joe Fischbach asked Mayor Bailey to confirm if the applicant was present; the applicant was not present. Attorney Korine Land stated since the applicant had officially appealed, she asked the Council to uphold the decision of the City Clerk. Motion by Council Member Johnson to reject the appeal and uphold the application denial, second by Council Member Dennis. Motion carried: 4-0. B. Parking Pad Setback Variance Request at 8527 85th Street South Staff Recommendation: Adopt Resolution 2017-084 denying a variance to side yard setback requirements to allow a parking pad to be three feet from the side property line instead of the required six feet. Planner Burbank stated this was a variance request to side yard setbacks and also to allow a parking pad over an easement area. The property is located at 8527 85th Street South; George Panek is the applicant. The property is low-density residential land use, and has an R-4 zoning classification. The property is within the MUSA. The actual request is a variance to the minimum driveway setback to be three feet from the property, instead of six feet, and for a variance to allow the proposed parking pad to be on the side yard drainage and utility easement. He showed photographs of the property with the areas involved identified. The ordinance is pretty specific about setbacks and widths for driveways. Side yard setbacks create minimum areas on property lines for utilities, green space, open space, and snow storage and storm water management occur. There is an existing six-foot drainage utility easement along the side property lines; an encroachment on that could bring future issues. The purpose of those easements is to preserve those from having impacts in the future. The City's Technical Review Committee reviewed this and identified that they couldn't support the variance request because: 1) The requested City Council Meeting Minutes June 21, 2017 Page 7 variance is not caused by distinction or an exceptional situation that relates specifically to the property; 2) The ordinance is specific about setbacks and widths for driveways; 3) Side yard setbacks create minimum areas of property for utility and drainage purposes and an existing six-foot drainage and utility easement. The criteria established, related to variances, are found in Section 11-2-7. The Staff and the Planning Commission are recommending that the variance request be denied. Mayor Bailey stated he knew in some areas of the City there were drainage swales in between the homes; he asked if there was any type of a drainage swale in the back of the property and any of the other homes. Planner Burbank indicated there was no defined swale in that area, although he did not review the topography and grading plan, so he couldn't answer that question. Mayor Bailey felt that pushing a driveway that close to the property line would perhaps cause backup of water; he wondered if there was another way for water to go to the back and down a drain versus emptying out to the street and going through the normal channels. Planner Burbank stated the typical utility easement is five feet; the fact that's it's an actual six-foot easement tells him that there's something going on there. Motion by Council Member Mills to adopt Resolution 2017-084 denying the variance of the side yard setback requirements at 8527 85th Street South, second by Council Member Johnson. Motion carried: 4-0. C. Rental Code Ordinance Amendment Staff Recommendation: Pass Ordinance 982 approving the proposed rental code regulations for better management of the rental program. Code Enforcement Officer (CEO) Samantha Drewry stated she would review the proposed Rental Ordinance amendment; she'll review the purpose of having a Rental Code Ordinance and why the City's chosen to revise it. The Rental Ordinance was previously reviewed, in great detail, in a Council Workshop on May 3, 2017. She would address the main changes to the proposed Rental Ordinance. In the past ten years, the City has had a growth of licensed rental properties from 192 to 507; these are single-family rentals, a growth of 164%. This increase is one reason the City needs a Rental Ordinance. It provides a standard for rental properties and protects not only the health and safety of tenants, but also that of the property owners. There are rental inspections of every licensed rental property in the City. The Rental Code Ordinance is being amended because the ordinance needs to evolve to help the City better manage these properties. The current ordinance is unclear and difficult to interpret; the proposed amendment has better language and organization. The current ordinance is quite a bit out of date, having been adopted in 1993 and revised in 2007, so it's time for a revision. There is currently no distinction between the structural maintenance code for existing single-family residential properties and rental properties. City Council Meeting Minutes June 21, 2017 Page 8 Key differences in the amendment include: 1) Separation and distinction of the general property maintenance code from the rental code; it will make the code much clearer and easier to understand. 2) The definition of family will be added, which will simply the process of relative homesteads as designated by Washington County. 3) Property owners for any licensed rental property in the City will be required to have a background check completed. This will help protect the safety and welfare of any tenants in the rental properties. 4) The license term will be slightly altered; it's a two-year term, but the license will now expire at the end of February and renew at the beginning of March. That will help avoid a lapse between the times the licenses expire to when they are renewed with the rental inspection. 5) New City Council responsibilities will include license approval, with the possibility of denial or revocation. The issuance of a provisional license is a possibility. 6) The City will begin charging for re-inspections that are performed. That will help encourage rental property owners to make sure the property is in compliance with all codes at the initial inspection. That will help save valuable staff time and resources. 7) The owner or property manager must be present at the inspections, which will generally allow the saving of staff time and resources. 8) Conduct in rental dwellings will be monitored by requiring that every tenant sign a Minnesota Crime Free Lease Addendum; that will allow the City to deal with problem tenants who are causing issues, breaking laws, etc. Public Safety supports this addendum. Council Member Johnson had questions regarding this ordinance amendment, and he was advised as follows: CEO Drewry stated it's generally one re-inspection that occurs, although she didn't have a percentage of homes requiring re-inspection readily available. Regarding any leeway for somebody who's a first-time landlord, as opposed to a landlord who has many properties and knows what's expected, Community Development Director Levitt stated as part of the application process, they are provided a checklist of what the City will be looking for. They're trying to ensure the property owner is engaged, visits the property, and reviews the checklist provided. Their goal is to educate if there are questions. Director Levitt stated that the past practice has not been to routinely charge for other City inspections where a permit needs to be pulled (e.g., HVAC) if it failed the first inspection. Regarding the Crime Free portion, CEO Drewry stated if the tenant violates the ordinance and needs to be removed, that lease addendum would allow the landlord to terminate the lease because the tenant's in violation of the lease. She deferred to Attorney Korine Land, who stated it's a violation of the lease, which gives the landlord cause for bringing an Unlawful Detainer if the tenant chooses not to leave voluntarily. It could end up in court if the tenant chose to stay. The landlord would have absolute reason and cause for termination of the lease if the tenant violates the Crime Free City Council Meeting Minutes June 21, 2017 Page 9 Lease Addendum. Attorney Land would review the Crime Free Lease Addendum and see if there was truly a violation of the lease; if a crime was committed, the Court would uphold termination of that lease and make the tenant leave. Council Member Johnson stated that it gets put back on the landlord, though, to have the legal battle and costs, etc. Attorney Land stated tenant rights are very strong in the State of Minnesota so, yes, it would end up with the landlord if the tenant chose not to leave voluntarily. Unlawful Detainers can be fast and very efficient in front of a Court. When he asked how quickly a tenant would need to move out, Attorney Land stated that would be up to the City staff if there were a significant number of violations. The landlord would be notified of the problem tenant and told that they needed to address the issue. Attorney Land stated a timeframe had not been specified, so a reasonable time for the landlord to provide adequate notice under the lease to notify the tenant and file an Unlawful Detainer should the tenant choose not to leave. As long as the landlord is working diligently to remove that tenant, the City staff would be satisfied. Mayor Bailey spoke about doing background checks on the property owner to make sure there aren't any issues. There aren't many cities doing that yet, but he spoke with Burnsville and South St. Paul; both of them have cited specific examples of when it's been very helpful to prevent a property owner, who has serious legal issues, from obtaining a rental license. Motion by Council Member Dennis to pass Ordinance 982 approving the proposed rental code regulations for better management of the rental program, second by Council Member Mills. Motion carried: 4-0. D. Summers Landing Concept Plan Staff Recommendation: 1. Open the floor for new public comments on the revised concept plan for the Summers Landing subdivision. 2. Provide direction to the applicant on the revised concept plan. 3. Adopt Resolution 2017-085 approving the Summers Landing concept plan for the phased platting for detached single-family homes including lot widths ranging from 55 to 75 feet. Planner John Burbank stated Villa products are a niche in the market for Millennial and Empty Nester demographics. In 2016, Summergate got approval for a six-phase, 383- lot subdivision, off of Hadley Avenue and 95th Street. They're requesting to modify their phasing plan in the northeast corner of the property, changing from 83 units with 75-feet wide lots, to 108 units, with lots 50- to 65-feet wide. They'd like to continue in 2018 with the smaller-lot concept, as well as the Phase 1 larger lots, which are currently under construction. The land use for this property is low-density residential; the proposed small lot development meets the land use, one to four dwelling units per acre. The applicant is proposing #35 50-foot lots, #33 55-foot lots, and #40 60-foot lots in the northeast phases. Staff is recommending 55-foot lot widths within the project. There were concerns by residents at the neighborhood meeting; they had anticipated City Council Meeting Minutes June 21, 2017 Page 10 that the phasing wouldn't occur until later on in the project. With the proposed smaller lots, they're proposing 5-foot setbacks along the side property lines; staff is recommending 7.5 and 7.5, or 10 and 5, depending on how they need to site the house on the property. Regarding traffic impacts, adjacent roadways were designed to accommodate the additional traffic from the increased density. Casey Wollschlager, of Summergate Development, stated one of the big pieces of feedback they get as a developer has been affordability. The reason behind a developer putting in more lots is usually to make more money; in this case, one of the things they heard from potential buyers was they really couldn't afford housing that starts at $375,000 and more. Only 20% of Americans can afford a home that cost more than $350,000. Rental units are skyrocketing for that very reason. People are looking for something closer to $300,000 to either come to or stay in Cottage Grove. To accommodate that, they could shrink down the house, but the lot price pushes the cost much higher. If the lot is 40%-50% of the price of the home, it makes it impossible to build any kind of home. The reason for the change in phasing is they had to find a place to put a different product type inside their plan; the linear park system allows for a break point to allow a different kind of product type but still essentially be located in the same community of homes. They were adding two things to their plan, standard smaller homes and Villa homes. Villa homes are for individuals 55 plus; they have small, low maintenance, association- maintained yards and driveways. The others are standard homes but with smaller lots to keep the prices within the affordable zone. The difference between a 55-foot lot and a 50-foot lot is they gained seven more lots; also, by decreasing that five feet, the affordability factor is about $7,000 per lot. Generally, the lot price is 25% of the home; so a $7,000 difference in lot price translates to about $30,000 in the price of the home, which is a significant impact. The two-story homes would be on 55-foot and 60-foot wide lots. The issue comes from the side setbacks when you're talking about smaller lots. They're really trying to aim for creating choice for buyers or current residents. Mayor Bailey asked if anyone in the audience wanted to speak on this particular project; no one wished to speak. Mayor Bailey confirmed with Mr. Wollschlager the location of the Villas in the revised plan; he was advised the two-story homes would face Hadley Avenue, not the Villas. He also confirmed that there would be an Association involved with the Villas for yard maintenance and snow removal. Mr. Wollschlager stated he met with Fire Department personnel regarding concerns about safety issues with fire safety rescues; a big item that causes problems with safety is fencing. If those are eliminated, that would help decrease the concern. Mayor Bailey felt the closer one house is to another is if one were to catch fire, it would start the next house on fire, etc. Mayor Bailey stated he's concerned about the lot sizes and setbacks and would not be willing to go below 55 feet or change the setbacks. City Council Meeting Minutes June 21, 2017 Page 11 Council Member Dennis stated he agreed with Mayor Bailey that safety concerns are paramount. Not allowing fencing, in and of itself, perhaps indicates that it's not the right thing to do. Council Member Dennis stated he'd like to see an actual neighborhood designed for affordability, not just a portion of one. Council Member Mills stated she liked the mix with using the Villa homes, but she felt they needed 15 feet between the houses, especially with fire risk. She appreciated Mr. Wollschlager presenting the different options. Council Member Johnson stated he agreed with Council Members regarding the closeness of the houses and potential fire safety issues; they need to stay consistent on minimum sizes. He thanked Mr. Wollschlager for the information, but he had to agree with City Staff recommendations. Council Member Dennis stated he had lived in St. Paul, and houses are extremely close together; his grandmother's house was probably seven-or-eight feet away from her neighbor. There was a fire in the neighborhood, which spread to another home. It's a legitimate concern and he felt they should opt for safety. Mayor Bailey confirmed with Mr. Wollschlager that they will continue with the large lot phase and move into an additional Phase 1 to the north with the smaller lots. Mayor Bailey confirmed with Mr. Wollschlager that the intent was to build starting on the corner and the second set of Villas would be a second phase. Mayor Bailey asked what the connections would be; Mr. Wollschlager stated that Phase 1 would initially be off of Hadley Avenue. Mr. Wollschlager stated that this is just the concept plan and they need to sit down with City Staff and determine all of those details, including a pond. The second phase would be near Mississippi Dunes, and Mississippi Dunes Road would be extended. As neighborhoods start coming together, Mayor Bailey wondered about the traffic flow of those particular areas. Motion by Council Member Dennis to Adopt Resolution 2017-085 approving the Summers Landing concept plan for the phased platting for detached single-family homes, including lot widths ranging from 55 to 75 feet; second by Council Member Johnson. Motion carried: 4-0. E. Calarosa 1 st Addition - Zoning Amendment and Preliminary Plat Staff Recommendation: 1. Pass Ordinance No. 984 to rezone approximately 85.165 acres of the 145.575 acres of land located at 8180 and 8190 65th Street from AG-1, Agricultural Preservation, to R-3, Low Density Residential District with a Planned Development Overlay(PDO). 2. Approve the Calarosa 1 st Addition preliminary plat and development plans dated June 1, 2017, as proposed by Lennar Homes. Planner John McCool stated Lennar Homes had made application for the rezoning of approximately 85 acres of a 145-acre site; the westerly 2/3 of that site would be City Council Meeting Minutes June 21, 2017 Page 12 rezoned. The current zoning of the property is AG-1, Agricultural Preservation District, and the applicant is requesting to rezone the property to R-3, Single Family Low Density Residential, with a Planned Development Overlay (PDO). The development name is Calarosa 1st Addition. He indicated the location of the 145 acres, located to the west of Inwood Avenue and north of 65th Street. The City reviewed a concept plan in 2014; at that time, the total number of proposed residential lots was 302 for detached single-family homes. Earlier this year, they had provided a revised concept plan, which proposed 352 lots. The southwest corner of the lot was to have proposed ADU units, 88 attached units. The plan has been revised again for purposes of adding additional Villa lots within the project site itself; the Villa lots would be on lots that would be 55-feet wide, on average. For the first phase, they would have 230 lots developed on the easterly 1/3 of the site. The remaining 60 acres would be a future development and would require additional review and approval by the City. Planner McCool reviewed the development plan for Calarosa 1 st Addition; 65th Street is located to the south of the project. The Pine Cliff residential neighborhood is to the west of the property; Sunnyhill Park is located in the Pine Cliff subdivision. This project proposes the construction of 54 villa lots, 88 lots for detached single-family homes, and the ADU units for the Quad units located in the southwest corner of the project. There will be a Homeowners Association (HOA) for all the open space around the Quad units; they are proposing a HOA center or facility, which would consist of a building structure with an outdoor pool. The HOA Center would be located in Phase 3 of the project. This includes the expansion of Sunnyhill Park for an additional park plan, located along the western property line. The westerly 2/3 of the site would be where the City would provide sewer and water; the easterly side of the site, 60 acres, would require future extension of sanitary sewer from Jamaica Avenue in order for that property to develop. He reviewed an aerial photo of the site; currently, a majority of that property is farmland. There will be an on-site pond. The proposed development by Lennar Homes is very consistent with the future land use map that was provided in the East Ravine Master Plan. The zoning classifications for the general area are currently zoned Agricultural Preservation. Pine Cliff neighborhood, to the west of that site, is currently zone R-2.5, which means there's a minimum lot area of 11,000 square feet with 85-foot lot widths. The Highlands neighborhood, located to the south, is currently zone R-3, single-family residential; that's a 10,000 square foot minimum with a 75-foot minimum lot width. Planner McCool reviewed the breakdown of lot widths. The applicant is proposing to have a minimum lot width of 55 feet, but they're proposing to measure that at the 25- foot front yard setback line versus the 30 that's required in other districts; the purpose is some lots are pie shaped with a narrower frontage and a bit bigger in the back. Moving the setback line to 25 feet, you gain a couple more feet for the lot with measurement. City Council Meeting Minutes June 21, 2017 Page 13 The R-3 district is a 10-foot minimum setback for the living area of the house; the developer is considering 5-foot setbacks. The Planning Commission has recommended that there be a minimum of 7.5 feet on each side of the house or attached garage. Planner McCool stated they'll need to make a modification to include one outlot in the center island of the cul-de-sac street. City Staff is asking for more information and a bit more detail about additional landscaping along what's been proposed to be Ravine Parkway. They are proposing sidewalks throughout the project along the local streets. City utilities will be used in the western 2/3 of the property; future expansion of utility services will be required from Jamaica Avenue for the eastern 1/3 of the property. Fencing may be provided on the single-family lots along Ravine Parkway; it's not required, but if the property owners choose to have fencing, the fencing needs to be the same type, design, color, and materials along Ravine Parkway. Planner McCool reviewed illustrations of proposed residential structures that would be built within the development, along with floor plans, finished square footage range, and exterior stone/brick on each home. There will also be a minimum of 440 square feet for attached garage space; that's a City Ordinance minimum requirement. Minimum side yard setbacks are 7.5 feet for the house and attached garages. They're also proposing a 25-foot front yard setback. They're discussing how much an attached garage can extend to the front of the house. As part of the drafted resolution and as recommended by the Planning Commission, the front extension of the attached garage will be no more than 6 feet. The NextGen home is a single family home, detached home, but there's a separate living quarters within the home that is attached to the primary home. That suite has a private entrance, but it also has an entrance to the principal structure. There is a one- stall attached garage on the front of that home. As part of the condition of approval, we've recommended that there not be more than 10% of this type of home within the block area of the Calarosa 1 st Addition. They're not requiring any rental license for this type of dwelling unit, nor are they requiring a separate address. Those issues were discussed at the Technical Review Committee; the Public Safety Department was involved and they did not see the need for a separate address. The Quad units are four units attached; there are 22 of these buildings, for a total of 88 units within the development. They're proposing to construct 12 buildings during the first phase, for a total of 48 units. The expansion of Sunnyhill Park was recommended to be a part of Phase 1, but they're requesting the expansion of Sunnyhill Park be Phase 2. The proposed HOA facility is a shell building with restroom facilities, kitchenette, and an outdoor pool. The building materials, size, square footage of the pool or the facility itself are all unknown. They're recommending a provision for off-street parking for that facility, approximately ten parking spaces. City Council Meeting Minutes June 21, 2017 Page 14 In the public hearing, held on May 22 by the Planning Commission, they received one letter from Susan Allery on Idsen Avenue concerning traffic from this newly-developing area would use Idsen Avenue as their primary access to 70th Street, which would be additional traffic through their neighborhood. The Planning Commission made a recommendation to approve the rezoning; they also recommended approval of the preliminary plat that has the planned development master plan within that plat, subject to 89 conditions. Of the 89 conditions we identified, there's additional information about landscaping along Ravine Parkway, as the City's requesting uniform fencing materials; tree mitigation; Sunnyhill Park expansion in Phase 2; details of the HOA facility; the NextGen home is limited to not more than 10% of those types of structures within a block area; and a center landscape island be platted as an outlot, which would be owned and maintained by the HOA, not the City of Cottage Grove. There is also a revised storm water management plan for the project itself. They've asked for clarification on whether the City Council is in agreement with the amount of distance of an attached garage can be in front of the living area of the house. Representatives from Lennar Homes were present to answer any questions. Council Member Johnson wanted to confirm that the lots were set to be 50 and 60 feet; Planner McCool stated they range from a low of 50, and there were some lots that were about 80 to 85 feet wide. Council Member Johnson asked where the 50-foot lots would be and felt they just spoke about Summers Landing and adopted a resolution that said those lots would range between 55 and 75, with a minimum of 55. Planner McCool stated that would be the case with this development also. Because of the pie-shaped lots, some villa lots would have 50 foot widths, but the average would be a low of 55 feet. Council Member Johnson confirmed that was the case with Summers Landing also, that it would be an average of 55 feet. He felt we weren't being consistent. Planner McCool stated for this project they're required to have an average 55-foot lot width at the 25-foot front yard setback. Council Member Johnson asked if there were any other proposed projects with Quad units; he was told there were not. He asked where the other Quad units are in Cottage Grove that are surrounded by bigger homes, where Quad homes would be put right in the middle of such a development. Planner McCool stated there might be some Quad units on the corner of 75th Street and Indian Boulevard, north of Kingston Park; those were built back in the late 1980s. Council Member Johnson stated he previously had concerns with these and wondered why the Quad units were not put farther back, away from the road, inside of bigger homes that were put alongside the road instead of putting the Quad homes right next to the homes that already existed. He stated he understood there was a need for it, but wanted to make sure they were meeting the same criteria for other projects. He felt it didn't make sense aesthetically why we'd put the Quad homes right next to the bigger, existing homes but would ask Lennar about that. Council Member Dennis asked Planner McCool about the NextGen homes; he wondered approximately how many of these existed in Cottage Grove. Planner McCool City Council Meeting Minutes June 21, 2017 Page 15 stated he didn't know that any currently existed; they've been proposed to be built in Cayden Glen, but those have not yet been built. Council Member Dennis asked why we'd want to limit the NextGen homes to 10% of the development; Planner McCool stated they could be viewed as a duplex. It's not required that they have a family member in the separate unit; it could be provided for occupancy to someone who's unrelated to the family. Council Member Dennis asked if that, in and of itself, would be cause to want to limit it to 10%. Planner McCool stated for the land use designated for that area, low density residential, it wasn't contemplated that there'd be other types of housing units; it was intended to be detached single-family homes, but these units would have two units. Council Member Mills stated her understanding with a NextGen home was that it would not be rented to somebody outside your family; Planner McCool stated there was no provision that stated they could not rent it. Council Member Mills asked if there wasn't a regulation that if it was to be rented, it had to have certain requirements to be considered a rental. Director Levitt stated that the new Rental Ordinance would state as long as the owner of the property is occupying either the main structure or the suite and was living on the premises they would not need to get a rental license. If the owner is not living on the premises, then that would constitute a rental situation and they'd have to obtain a license. Council Member Mills asked if she owned the property but didn't live there, if she would be able to rent out both of the units; Director Levitt stated she would need to obtain a rental license for the property and both units would be inspected. Council Member Mills stated her understanding with the NextGen was they were not allowed to be a separate unit. She wondered why there would not be two addresses if both units could be rented. Director Levitt stated Public Safety did not think there would be a deterrent or a slower response time if it didn't have a second address; they felt safety would not be compromised if the whole structure was treated as one addressing unit. Council Member Mills was advised the NextGen units also only have one water meter and one furnace. Mayor Bailey confirmed in the end the goal is to have 65th Street become part of the Ravine Parkway; he asked if the road was going to be built right away or if that's something that will occur at a later date. Director Levitt stated they're still working out those details with the applicant as they look at the phasing and staging; a feasibility report has been authorized to be prepared for Ravine Parkway. They're anticipating that will come before the Council shortly; as part of that, they'll work out the details of the most cost effective way to construct that phase of the Ravine Parkway, if it's under a public contract or if it's privately constructed as part of the residential development. When the final plat is before the Council with the developer's agreement, they will have fine tuned all of those details and will have a better schedule and plan. Mayor Bailey stated he knew there were specific designs, setbacks, lighting, etc. for Ravine Parkway. He wanted to make sure if these homes were going to back up to the future Ravine Parkway, if any type of fencing were installed it would have to be something that's more open. He felt the idea of the Ravine Parkway when it was City Council Meeting Minutes June 21, 2017 Page 16 planned was to have more of an open feel; he wanted to be careful with what they'd allow for a fence so that it would fit with the look that they're trying to achieve for Ravine Parkway. Mayor Bailey stated he wasn't even aware that there were any Quads in Cottage Grove and would like to see more of this opportunity within our community. Council Member Dennis asked about the front of the garage extending out over the front of the home; Planner McCool stated that should probably be addressed with more detail in the final plat. With the NextGen home, the garages will be significantly farther in front of the living area of that home; those need to be worked through for the NextGen home. Planner McCool stated they'd get that corrected and the details provided in the final plat process. Paul Tabone, Entitlement Manager with Lennar, 16305-367th Avenue North, Suite 600, Plymouth, Minnesota, thanked the Council for their attention to this matter. He's been working quite extensively with City Staff to get it through. They feel they're bringing a variety of housing options to the area; the underlying theme is to provide multi- generational housing for all types of ages and incomes. They've been looking at this property for at least three years and are excited about this project. The home sites east of Idsen Avenue pretty closely resemble those in the concept plan; a handful of them are 50 feet at the frontage. However, they realize the concern with setbacks so they've set the homes up to fit in a 55-foot width at the front setback line, so side setbacks will be met at the 25-foot line. Regarding Quad home location, they looked at shifting it around, but decided to go with this layout because with a more dense type of product you typically want access right onto the busier streets. With the Pine Cliff community to the west, if you look at the western boundary line there are several lots in Pine Cliff that are facing the wider lots in the northern portion of the site; they range in width from 75 to 92 feet. They tried to have a comparison right across the road. There's a middle portion of Pine Cliff that's the continuation of Sunnyhill Park so there are not home sites in Pine Cliff that are looking right into denser, more narrow home sites across the road. For the lots looking across the street to the Quads, you will only see four Quads there, north of 64th Street South. You'll see two homes sharing a common wall across the road; that will be broken up with landscaping. Mr. Tabone stated they're starting to look at some of the grading for this year, targeting a model home start this Fall and targeting the Spring Parade for opening models next year. They're looking at Phase 1, primarily along Ravine Parkway South, which incorporates portions of the Quads and the Villas, which would be to the east of Idsen Avenue. Staff had a graphic that broke down the various types of Villa versus detached versus Quad versus all the different housing types offered; to keep it simple, everything north of the trail is proposed to be traditional single-family detached homes, not City Council Meeting Minutes June 21, 2017 Page 17 Association maintained, not Villas, not Quads. The lots south of the trail, surrounding the HOA amenity, are anticipated to be two-car and three-car Villas. Although those west of Idsen Avenue were noted as single-family detached homes, they are intended to be three-car Villa products. The ones east of Idsen, at the current farmstead, are intended to be two-car Villas. With the Villas, they're incorporating two-car, three-car, optional basements, and slab on grade; it's a little bit of everything based on the market and the age-targeted product. The landscape plan has pretty dense trees along the south, along Ravine Parkway, that would screen some of the Quad units to the north. They'll look at that further as they move forward with the actual final plans. Mr. Tabone stated he and Joe Jablonski, Land Development Area Manager, would be happy to take questions. Council Member Johnson asked whether or not there was going to be a pool at the HOA amenity center; he was informed there would be a clubhouse and a pool. The pool is intended to be rectangular, used for water classes or as a lap pool. The clubhouse in the preliminary plat would contain a restroom and changing facility, as well as some indoor space where the HOA could program indoor activities. The concept is in place with the details still being finalized. They're also looking at on-site parking. Council Member Johnson asked about the pool size; he was told it would be somewhere between a back yard pool and a City pool size. Council Member Johnson asked if it would be fenced in, with only HOA members having rights to the pool; he was told that was correct, members of the HOA would have key cards. Council Member Johnson asked if there were any other examples of where the 55-foot lot average had been used as a minimum in the City. Planner McCool stated those would be north of 70th Street, East Ridge Woods by D.R. Horton, and the Cayden Glen development. The newly-developed project by D.R. Horton, Grayson Meadows, north of Cayden Glen, is under construction. Council Member Johnson asked if there were any examples of it being a minimum lot of 50 feet, but average of 55 feet. He just wondered if this was blazing new ground to get to a smaller lot by using the word average. Planner McCool stated the conditions of those projects had those minimum setbacks; they oversized the minimum and the lots were bigger and wider. However, the City established a 55-foot minimum width, although most of the lots are 60 to 65 feet wide. Council Member Johnson confirmed we're establishing a new minimum with an average; Planner McCool stated he didn't know of any other project in the community that exists with 55-foot lots. We have projects that have been approved with 55-foot lots; they're under development. Planner McCool stated they have a minimum lot width at the property line of the boulevard to be 50, but the 55-foot average is going to be measured at the 25-foot front yard setback line. Mayor Bailey stated that we've done that in other developments, and that was confirmed by Planner McCool. Motion by Council Member Mills to pass Ordinance No. 984 to rezone approximately 85.165 acres of the 145.575 acres of land located at 8180 and 8190 65th Street from City Council Meeting Minutes June 21, 2017 Page 18 AG-1, Agricultural Preservation, to R-3, Low Density Residential District with a Planned Development Overlay; second by Council Member Dennis. Motion carried: 4-0. Motion by Council Member Dennis to approve the Calarosa 1 st Addition Planned Development Overlay Plan, second by Council Member Mills. Motion carried: 4-0. Motion by Council Member Mills to adopt Resolution 2017-089 approving the Calarosa 1st Addition preliminary plat and development plans dated June 1, 2017, as proposed by Lennar Homes; second by Council Member Dennis. Motion carried: 4-0. F. Temporary Water Treatment Facilities at Wells 3 and 10 Staff Recommendation: 1. Adopt Resolution 2017-090 approving an interim conditional use permit to allow a temporary water treatment facility at We113. 2. Adopt Resolution 2017-091 approving an interim conditional use permit to allow a temporary water treatment facility at Well 10. Engineer Levitt stated the City of Cottage Grove is actually the applicant for the conditional use permit to construct two temporary water treatment facilities at Well 10 and Well 3. Because of Minnesota State Statute 12.37, the City has power to perform public work functions without compliance with time-consuming procedures and formalities prescribed by law. This interim conditional use permit has not gone before the Planning Commission because the City had declared a state of emergency on May 23, and the City is acting aggressively to address the emergency situation to get water treatment facilities constructed. The City is not pumping at full capacity of our well field; there are a number of wells that are currently offline, and we're only pumping at full capacity with three wells. We're at an approximately 50% reduction of our pumping capacity. We're in desperate need of these treatment facilities and we're trying to bring them online quickly. The two wells that will optimize our volume of water supply will be Well 10 and Well 3. Well 10 will be situated adjacent to the existing well house and will connect to it. As part of this project, we were able to work out temporary and permanent easements with Werner Electric; we're also looking at a lease agreement with CP Rail for the adjacent land where numerous laborers can park, lay down materials, and bring in materials specifically for the building of the actual steel structure. We'll be going over our actual property line with the actual facility. Werner Electric is not charging the City for these easements and they're allowing us to go over the property line to construct this building. Engineer Levitt showed a sketch of what the treatment plan will look like; it's a steel structure with a steel roof, not compliant with the City's architectural standards in the interim phase. The treatment will take place in the inside; the tanks and the piping will actually be exposed until approximately early October because a fence will need to be constructed around the perimeter in the interim to provide security. There will also be additional cameras to ensure the protection of the facility. The tanks will be recessed, about three feet. Construction has been proceeding aggressively; the contractor worked over the weekend to be able to provide for the forming and tying of steel. Inspector Bob LaBrosse was on site this morning, City Council Meeting Minutes June 21, 2017 Page 19 providing the final inspection of the footing before the concrete arrived. Much has been accomplished in a very short amount of time. Engineer Levitt showed a graphic of security fencing, which will tie into the existing building and go around the site. That will be in place until early October when the actual steel structure is in place and it is enclosed and winterized, in order for us to operate the facility year round. There are a lot of variances being granted to this construction with the state of emergency. Due to the secure nature of the site, we cannot vegetate per City standards as open sight lines need to be kept for security. The building is made of steel, a Class IV material, which is not compliant with the City's architectural standards. Due to the necessity to expedite construction, workers have been working Monday through Sunday, 7 a.m. to 9:00 p.m., and they're also able to work holidays. There will be security lighting on an interim basis until the structure is in place; we will not be abiding by the City's actual light levels at the property line, which is an interim condition. As there aren't a lot of residents in close proximity, we don't see that will be an issue; the security of the site is our first priority. The start-up date for the system is most likely going to be the week of July 24, when it can be tested, approved, and put into service. Well 3 is situated in Ideal Park. There are trees that will need to be removed, and a sanitary sewer pipe will be constructed out to the road for the discharge of the bypass water and backwashing. Engineer Levitt showed a rendering of Well 3's treatment plant; there will be four treatment tanks inside of it. It will be much smaller in dimension than Well 10. There will be no landscaping with that, again for security purposes. The building will be made of steel. Security lighting will be downward directed and shielded to ensure that a nuisance is not created with the lighting. The extended work hours will also be provided at this site, and that will be monitored if it becomes problematic for the residents. This will be approximately three weeks behind Well 10, so the anticipated start up and testing of this treatment facility will occur in mid-August, during the week of August 14. Engineer Levitt stated she'd take any questions. Council Member Johnson asked if these tanks were designed to be outside but were inside due to freezing temperatures. Engineer Levitt stated they're using PVC piping so there's some UV degradation that could occur related to the piping; therefore, the PVC has to be enclosed or treated to ensure the UV doesn't break it down. If we used a different pipe material, it wouldn't have the UV issues, but we need to be able to operate it year round. Council Member Johnson asked if these were made to hold up against hail and high winds. Engineer Levitt stated there is no variation to the City to be able to install this structure so this building will have to be compliant with all other regulations. The architect has been working with Morton Builders and the City's building officials to ensure this is a compliant building. Council Member Johnson stated he was concerned about the pipes being fully exposed to the elements. Engineer Levitt stated there's a higher risk associated with the pipes being fully exposed until the structure is built and they are enclosed; our goal is to get the system operational as soon as possible and restore water supply. City Council Meeting Minutes June 21, 2017 Page 20 Mayor Bailey thanked Werner Electric for stepping to the plate as quickly as they did. He also thanked City Staff and stated that this issue was dropped on us, but within three months we're going to be building two treatment facilities to help alleviate concerns about water restrictions. With all of the details that needed to be taken care of, he felt City Staff had done everything necessary to ensure the safety of the community and did so in a timely manner. Motion by Council Member Johnson to adopt Resolution 2017-090 approving an interim conditional use permit to allow a temporary water treatment facility at Well 3, second by Council Member Dennis. Motion carried: 4-0. Motion by Council Member Dennis to adopt Resolution 2017-091 approving an interim conditional use permit to allow a temporary water treatment facility at Well 10, second by Council Member Mills. Motion carried: 4-0. Motion by Council Member Mills to approve permanent utility easement and temporary construction easement agreement with Werner Electric for Well 10, second by Council Member Johnson. Motion carried: 4-0. Motion by Council Member Johnson to approve lease agreement with CP Rail for Well 10 with authorization given to City Attorney to finalize the final terms of the lease, second by Council Member Mills. Motion carried: 4-0. 12. COUNCIL COMMENTS AND REQUESTS Council Member Mills stated the next Fare For All will be on Thursday, July 13, at All Saints Church. It's open to the public; produce and meat packs can be purchased at reasonable prices. Council Member Mills stated she received an email from a resident who wanted to remind citizens to not put too much softened water on their plants, as that might harm them. A better option might be to get a rain barrel and get a $20 rebate on a rain barrel from the City of Cottage Grove; there's more information about that on the Cottage Grove website. Council Member Dennis stated he and the Mayor had a meeting with some senior staff members and talked about some things they could do to help the community. The staff got right on the rain barrel rebate idea; they noted a lot of citizens had been asking for this and that gives them a tool to get through this difficult time period. Council Member Dennis stated with the watering ban a lot of staff time has been devoted to working on this, but there are also other initiatives going on. The community should know that we haven't abandoned other things we've been working on for the past three years. Council Member Johnson stated, regarding softened water, if you use cold water in the City Council Meeting Minutes June 21, 2017 Page 21 kitchen faucet, that should bypass your water softener. Council Member Johnson wanted to thank everyone who marched or walked with the Beyond the Yellow Ribbon group in the Strawberry Festival parade; it was a beautiful day. He wanted to thank Representatives Jurgens and Franke for walking with them. The Hastings Police Department had responded to help, Senator Schoen was there, and the Fire Department was also present; he wanted to thank all of them. Mayor Bailey thanked the volunteers, workers, and companies for their help with this year's Strawberry Fest; many people attended, even despite the rain, and the fireworks still went off. It was a huge success. Mayor Bailey stated there will be a fundraiser on June 24, at the Wag Farms Dog Park, sponsored by Thrivent, who is donating $10,000 to help bring water to the dog park and also possibly a paved parking lot. A grant from another outside agency will be used for the dog park. There will be food, prizes, a best dog-dressing contest, and a K9 demonstration by Washington County. He encouraged everyone to attend. Mayor Bailey stated the Fourth of July fireworks display will take place at Kingston Park; that is being sponsored by both the City of Cottage Grove and the Cottage Grove Lions. He thanked the Cottage Grove Lions for working in partnership with the City to put on the annual fireworks display, as well as other activities during that event. Mayor Bailey stated there are a lot of housing developers coming into Cottage Grove; they're bringing different concepts and housing styles. Because Cottage Grove isn't quite accustomed to having some developments being next to each other, and as we're now looking at the Comprehensive Plan, he suggested at some point City Staff arrange for some type of a tour for Council Members, the Planning Commission, or anyone else who wants to come along to take us to communities that are putting these projects next to each other, especially those with smaller lots, and how they're mirroring each other with different ideas and concepts. He wants to ensure we're not being too restrictive but also doesn't want to give away the farm. He felt it's easier to see how it looks when it's built rather than looking at concepts on paper. Administrator Stevens stated that this Fall would probably be a good time to do that. Administrator Stevens stated the City Council will not be meeting on Wednesday, July 5, due to the Fourth of July holiday. 13. WORKSHOPS — OPEN TO PUBLIC — CONFERENCE ROOM A. Solar Ordinance Amendment Planner McCool described solar devices, solar gardens, solar farms, and other systems and terminology. The current solar ordinance was adopted in October 2015; the Planning Commission and Environmental Commission were involved in that process, City Council Meeting Minutes June 21, 2017 Page 22 and there were a number of workshops. There were areas that would allow for community solar gardens or solar farms. During that time, there were five applications for conditional use permits for community solar gardens. Four of five applications were approved. There were two applications to have the zoning text amended; the purpose was to allow for solar garden systems and solar farms in the transition planning areas of the community and possibly in the MUSA itself. The current ordinance prohibits those types of units within the MUSA or the transition planning areas of the Comprehensive Plan. The applicant withdrew their application for the amendments. Last year the City Council adopted an ordinance that the City would no longer accept applications for additional solar community gardens until we went through a process to evaluate the current zoning ordinance that pertains to solar. When reviewing the current ordinance, there were two questions: 1) If there were appropriate setbacks for community solar gardens or solar farms within the districts; 2) If it should be a conditional use permit or an interim (time specific) conditional use permit. These types of operations typically span 25 to 30 years. If it was an interim conditional use permit, the City could reevaluate at the end of that time period to see if it would be renewed. The Planning Commission held a public hearing on May 22; they recommended approval of the text amendment. Planner McCool gave the locations of the approved solar sites: • Lamar Fields, 37 acres; • Lehigh Avenue, about a half mile north of 100th Street, on the east side, 80 acres, but only 60 acres is being used; • John Myer's property on Manning Avenue, for a 10 kilowatt system. • Steve Geis' property east of Old Cottage Grove and one-quarter mile south of 70th Street. Mayor Bailey asked if any of them had yet been built; Planner McCool stated they have not, as developers are in the process of getting necessary agreements signed with Xcel Energy. They're looking for direction from the Council on the following: • Whether to change designated areas that allow for solar systems; • Whether to increase the minimum setback on any property for a solar system; the Planning Commission recommended a 300-foot setback. • If solar should be limited based on Xcel's existing capacities; the Planning Commission did not recommend that to be a regulation in the text amendment. • If solar gardens and solar farms should be within one-half mile to the electric distribution line; the Planning Commission did not recommend that they be within one-half mile. • Whether to allow community solar systems on flat roofs of non-residential structures (e.g., churches, schools, government buildings) within the MUSA as long as interconnection and power lines are below ground. The Planning City Council Meeting Minutes June 21, 2017 Page 23 Commission recommended that if it doesn't create glare, it doesn't have to be screened. • Whether to allow solar systems on flat roofs of non-residential structure accessory buildings (e.g., canopy over gas station pumps) if it's flat mounted and not elevated, as recommended by the Planning Commission. • Whether to require a minimum one-quarter mile spacing between solar farms and solar gardens as recommended by the Planning Commission. • Whether to use an interim conditional use permit for community solar gardens or solar farms instead of a conditional use permit. Planner McCool asked for the Council's direction in order to prepare the ordinance amendment for community solar systems. The deadline date is July 20, so the City Council will need to take action at their next meeting, on July 19. Engineer Levitt asked if they wanted to increase the minimum setback on a property between the ground-mounted solar system and the site's property lines to 300 feet; significant discussion ensued amongst the Council Members regarding this issue. Council Member Dennis felt 300 feet was not enough and felt 500 feet was more appropriate. Mayor Bailey said he was not as concerned about the 300 foot setback. Engineer Levitt asked if a compromise would be 500 feet. Mayor Bailey felt that was too large of a setback. They were informed if a setback is more than 300 feet, it would add significant costs for the land needed and a lower number of panels. Engineer Levitt said topography often determines how you can effectively screen; in some cases, you cannot screen them. Council Member Mills felt it didn't need to be 300 feet. Council Member Johnson felt 300 feet was adequate. Engineer Levitt summarized the Planning Commission and staff recommendations on the other items: not mandating alignment with distribution system capacity; not mandating proximity to the distribution system, but enforcing a one-quarter mile separation between systems. Council Member Johnson didn't support mandating a quarter-mile separation; Mayor Bailey, Council Member Mills, and Council Member Dennis agreed. Council and staff discussed flat mounting only on horizontal accessory structure roofs, but concluded that would be an impractical application since panels need to be angled to function. Council Member Mills didn't have an issue with an angled structure on a rooftop as long as it didn't create glare. Council Member Dennis didn't have any issues allowing it on accessory structures in industrial areas. Mayor Bailey asked if the ordinance could specify allowing accessory structure roof mounting in non-residential districts only. Attorney Bridget McCauley Nason noted that that could be specified in the ordinance and Council concurred with that position. Council Member Johnson and Mayor Bailey agreed with issuing interim conditional use permits for these project. Engineer Levitt stated with the interim conditional use permit, if they go 25 to 30 years, it gives an opportunity to reevaluate. Council Member Johnson City Council Meeting Minutes June 21, 2017 Page 24 noted that such a time period would provide sufficient return on investment for a system installation. Attorney Nason summarized that roof mounting would be allowed in all districts with flush mounting only on pitched roofs. Angle mounted panels would be allowed in non- residential districts, including on accessory structures, with a five-foot maximum height. Ground mounted systems would be allowed only in specific areas with the required 300- foot minimum setbacks. An interim conditional use permit would be required for all solar farms, community solar gardens and ground mounted solar energy systems larger than 6 square feet in area. 14. WORKSHOPS — CLOSED TO PUBLIC — None. 15. ADJOURNMENT Motion by Council Member Mills, second by Council Member Johnson, to adjourn the meeting at 10:32 p.m. Motion carried: 4-0. Minutes prepared by Judy Graf and reviewed by Joe Fischbach, HR Manager/City Clerk.