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HomeMy WebLinkAboutWK - February 23,2016lirti) , Tk Toni rok 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOIA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV City Council Workshop Tuesday, February 23, 2016 Conference Rooms A & B 1. Call to Order — 6:00 p.m. 2. Discuss Emerald Ash Borer Management /15 -28 -Engineering 3. Discuss Hazardous Tree Policy - Engineering 4. Discuss Subordinate Classroom Structures — Planning 5. Discuss Accessory Dwelling Units - Planning 6. Discuss Solar Energy System Regulations - Planning 7. Discuss Animal Regulations - Planning 8. Discuss Four Counties' Metro Governance Proposal — Administration 9. January 2016 Budget Progress Report — Administration 10. January 2016 City Investments Review — Administration 11. Other Business 12. Adjournment C I T Y O F ND OVE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV To: Mayor and Council Members CC: Jim Dickinson, City Administrator David D. Berkowitz, Director of Pub ' ks /City Engineer From: Kameron Kytonen, Natural Resources Subject: Discuss Emerald Ash Borer Management/15 -28 - Engineering Date: February 23, 2016 INTRODUCTION The Emerald Ash Borer (EAB) is a devastating insect that attacks all species of ash trees. It was found in St. Paul in 2009, and since then has popped up in several other cities. It was most recently found in Ham Lake in March, which was the first find in Anoka County. Since first being found near Detroit, Michigan in 2002, this insect has killed millions of ash trees in Minnesota, Michigan, Ohio, Indiana, Wisconsin and some Canadian provinces. The City has an EAB Management Plan that has primarily been on standby for the last few years. Now that EAB has been found in Ham Lake, it's necessary to plan for the eventual appearance in Andover. DISCUSSION The following are some points of discussion: • Should the City REQUIRE the removal and proper treatment of infected ash trees? • Should the City provide financial assistance to residents for chemical treatments? Staff has drafted a potential cost -share assistance program that could be used (see draft "City of Andover Ash Injection Program." • The City will need to decide if chemical treatments should be used on select ash trees on public properties; and • An EAB budget may need to be created to cover costs of management. ACTION REQUESTED The City Council is requested to come ready for discussion, review the updated City ordinance and provide comments as needed. F'fu"Ym subitted, on K en Natural Resources Technician Attach: City Code 4 -3 City of Andover Management Plan/Program Diseased Tree Removal /Sanitation Enforcement Policy City of Andover Ash Injection Program CHAPTER 3 SHADE TREES SECTION: DRAFT 4 -3 -1: Declaration Of Policy 4 -3 -2: Natural Resources Technician (NRT) 4 -3 -3: Tree Commission (Rep. By Ord. 305, 2 -24 -2005) 4 -3 -4: Tree Contractors 4 -3 -5: Epidemic Disease Program 4 -3 -6: Nuisances Declared 4 -3 -7: Nuisances Prohibited 4 -3 -8: Inspections And Investigations 4 -3 -9: Abatement By City Of Epidemic Tree Disease Nuisances 4 -3 -10: Procedure For Abatement Of Infected Trees And Wood 4 -3 -11: Spraying Trees 4 -3 -12: Transporting Epidemic Diseased Wood 4 -3 -13: Requirements For Developers 4 -3 -14: Violation; Penalty 4 -3 -1: DECLARATION OF POLICY: The City Council has determined that the health of elm, oak, ash and pine trees within the city is threatened by fatal diseases known as Dutch elm disease, oak wilt, emerald ash borer and pine bark beetle. It has further determined that the loss of elm, oak, ash, pine and other species of trees growing upon public and private property would substantially depreciate the value of property within the city, and impair the safety, good order, general welfare and convenience of the public. It is declared to be the intention of the City Council to preserve shade trees as well as to control and prevent the spread of these diseases, apd other epidemic diseases of shade trees and hazardous trees by enacting this chapter in conjunction with the Tree Preservation Policy, Diseased Tree Removal /Sanitation Enforcement Policy and Emerald Ash Borer Management Plan /Program . (Ord. 305, 2 -24- 2005) 4 -3 -2: NATURAL RESOURCES TECHNICIAN (NRT): A. Positions Created: The position of Natural Resources Technician is hereby created within the city. The NRT must be a Certified Tree Inspector (CTI) as determined by the Minnesota Oeanmissioner Department of Agriculture and /or Minnesota Department of Natural Resources. DRAFT B. Duties: It is the duty of the NRT to coordinate, under the direction and control of the Council, all activities of the city relating to the control and prevention of Dutch elm disease, and oak wilt, emerald ash borer, the G^F� of the pine bark beetle, a.PA other epidemic diseases of shade trees and hazardous trees. The NRT will be responsible for establishing and prioritizing control areas, promulgate rules, regulations, standards and specifications to be approved by the City Council, and advise the City Council of appropriate actions. C. Interference Prohibited: It is unlawful for any person to prevent, delay or interfere with the NRT or their designee while engaged in the performance of the duties imposed by this chapter. (Ord. 305, 2 -24- 2005) 4 -3 -3: TREE COMMISSION: (Rep. by Ord. 305, 2 -24 -2005) 4 -3 -4: TREE CONTRACTORS: A. License Required: It shall be unlawful for any individual, partnership or corporation to conduct, as a business for profit, the cutting, trimming, pruning, removing, spraying or otherwise treating of trees, shrubs or vines in the city without first having secured a license from the city to conduct such business. B. Application For License: Application for a license under this chapter shall be made at the office of the City Clerk. The application for a license shall be made on a form approved by the city which shows, among other things, the name and address of the applicant, the number and names of the employees of the applicant, the number of vehicles of the applicant, together with a description and license number of each, and the type of equipment proposed to be used. C. Insurance Requirements: No license or renewal of a license shall be granted, nor shall the same be effective, until the applicant has filed with the City Clerk a certificate of insurance evidencing the holding of liability insurance and the limits required by Minnesota Statutes and proof of workers' compensation insurance. The city shall be named and the insurance provided shall include the city as an additional party insured. Said policy shall provide that it may not be canceled by the insurer except after ten (10) days' written notice to the city, and if such insurance is so canceled and licensee shall fail to replace the same with another policy conforming to the provisions of this chapter, said license shall be automatically suspended until such insurance shall have been replaced. DRAFT D. License Fees: Fees shall be in such amounts as set forth by this code'. E. Chemical Treatment Requirements: Applicants who propose to use chemical substances in any activity related to treatment or disease control of trees, shrubs or vines shall file with the City Clerk proof that the applicant or an employee of the applicant administering such treatment has been certified by the Agronomy Division of the Minnesota Department of Agriculture as a commercial pesticide applicator for category "E: Turf and Ornamentals" if the chemical and /or type of application warrants it. Such certification shall include knowledge of tree disease chemical treatment. (Ord. 305, 2 -24 -2005) 1 See section 1 -7 -3 of this code. DRAFT 4 -3 -5: EPIDEMIC DISEASE PROGRAM: It is the intention of the Council to conduct a program of plant pest control pursuant to the authority granted by Minnesota Statutes Chapter 18G, as amended, directed at the control and elimination of Dutch elm disease, oak wilt disease, emerald ash borer aed pine bark beetle other tree diseases and hazardous trees and is undertaken at the recommendation of the Minnesota Commissioner Department of Agriculture and /or Minnesota Department of Natural Resources. (Ord. 305, 2- 24 -2005) 4 -3 -6: NUISANCES DECLARED: The following are public nuisances: A. Any elm tree or part thereof infected to any degree with either of two (2) species of Dutch elm disease fungi, Ophiostoma ulmi and Ophiostoma novo -ulmi, or which harbors any of the elm bark beetles, Scolytus multistriatus or Hylurgopinus rufipes. B. Any dead elm tree or part thereof, including logs, branches, stumps, firewood or other elm material not properly covered and sealed from which the bark has not been removed or sprayed with an effective elm bark beetle insecticide; except, that the stockpiling of uncovered bark bearing elm wood shall be permitted during the period from September 15 to April 1 of any year. C. Any northern red oak (Quercus rubra), northern pin oak (Quercus ellipsoidalis), black oak (Quercus velutina) and scarlet oak (Quercus coccinea), or part thereof, infected to any degree with the oak wilt disease, Ceratocystis fagacearum. D. Any liViRg or sta" white oak (Quercus alba), bur oak (Quercus macrocarpa) and swamp white oak (Quercus bicolor), that poses a threat of transmission of the oak wilt disease to other trees of the same species through interconnected root systems. E. Any diseased material of the red oak group that is potentially spore producing (PSP). F. Any ash tree (Fraxinus spp.) or part thereof, infected to any degree with emerald ash borer, Agrilus planipennis. G. Any standing pine tree infected with the pine bark beetles, Ips pini, Ips perroti or Ips grandicollis. H. Any standing dead pine tree that has been dead under one and one -half (1 1/2) years. DRAFT Any exposed pine tree slash or logs cut from live trees or from trees that have been dead under one and one -half (1 1/2) years. (Ord. 305, 2 -24 -2005) J. Any tree deemed by the NRT as "hazardous." This is a tree that has structural defects in the roots, stem and /or branches, that may cause the tree to fail; where if it fell, would land within a public right -of -way or property owned by another person or entity and has a target that would be compromised. 4 -3 -7: NUISANCES PROHIBITED: It is unlawful for any person to permit the spread of a public nuisance as defined in this chapter across his or her property lines and in any specified control areas as established by the city. Such nuisances shall be abated in the manner prescribed in Section 4 -3 -10 of this chapter. (Ord. 305, 2 -24 -2005) 4 -3 -8: INSPECTIONS AND INVESTIGATIONS: A. Annual Inspections and Investigations Required: 1. The NRT shall inspect all premises and places within the city as often as practicable to determine whether any condition described in Section 4- 3-6 of this chapter exists thereon. 2. The NRT shall investigate all reported incidents of infestation of Dutch elm disease, oak wilt, emerald ash borer, pine bark beetle, other diseases of shade trees and hazardous trees as necessary to determine whether any condition described in section 4 -3 -6 of this chapter exists. B. Entry Powers: The NRT or their designee may enter upon private premises at any reasonable time for the purpose of carrying out any of the duties assigned to them under this chapter. C. Diagnoses: 1. The NRT shall make the initial identification of an infected area whenever possible. 2. The NRT may send appropriate specimens or samples to the Minnesota Commissioner Department of Agriculture, University of Minnesota or any state certified testing lab for analysis. 3. A property owner or contractor who becomes aware of any condition described in Section 4 -3 -6 of this chapter shall notify the NRT within seven DRAFT (7) days. (Ord. 305, 2 -24 -2005) 4 -3 -9: ABATEMENT BY CITY OF EPIDEMIC TREE DISEASE NUISANCES: A. No person shall allow, permit the spread of, or fail to abate a public nuisance as defined in this chapter. Such nuisances shall be abated in the manner prescribed in this chapter. B. The NRT shall enforce the treatment of nuisances by requiring the performance of one or more of the following tasks in order to destroy and prevent the spread of epidemic diseases of shade trees, including, but not limited to, Dutch elm disease, oak wilt disease, emerald ash borer or pine bark beetle and those trees deemed as hazardous. Such abatement procedures shall be carried out in accordance with current technical and expert opinions and plans as may be designated by the Minnesota Commissioner Department of Agriculture, Department of Natural Resources or the University of Minnesota. Abatement procedures are as follows: 1. Root graft barrier installation (vibratory plowing or trenching) at least forty eight inches (48 ") deep in the soil to isolate the diseased trees; 2. Removal of trees; 3. Stump grinding; 4. Burning, chipping, debarking or properly covering and sealing the potentially hazardous wood and /or stumps; 5. Fungicide injections into healthy and /or infected oaks, ash or elms with the appropriate chemical to avoid or minimize the effects of oak wilt, emerald ash borer or Dutch elm disease; 6. Spraying the infected trees and /or all nearby high value trees with an effective disease destroying concentrate. 7. Other treatment methods as approved by the NRT. (Ord. 305, 2 -24- 2005) 4 -3 -10: PROCEDURE FOR ABATEMENT OF INFECTED AND HAZARDOUS TREES AND WOOD: A. Nuisance Declared; Notice; Appeal: Upon the determination of conditions constituting a nuisance as described in Section 4 -3 -6 of this chapter located on property within the City of Andover, excluding city property, the DRAFT NRT shall declare the existence of a public nuisance and order abatement thereof. The process used is outlined in the Diseased Tree Removal /Sanitation Enforcement Policy. The NRT shall send written notification to the owner of the nuisance declaration and the necessary abatement procedures. A property owner who disagrees with the determination of the NRT may appeal the determination to the City Council. Such appeal must be filed in writing with the City Clerk and within ten (10) days of receipt of notice of the determination by the NRT. The City Council shall consider the appeal at the next scheduled regular City Council meeting. The City Council shall affirm, reverse or modify the determination. B. Failure To Abate; Contract For Abatement; Costs: Should a property owner fail to abate the nuisance, or be unwilling or unable to abate the nuisance, as prescribed by the NRT, the NRT or their designee shall then proceed to contract for the prescribed abatement procedure as soon as possible and shall report to the City Clerk all charges resulting from the abatement procedures carried out on such private property. The City Clerk shall list all such charges along with a city administrative cost against each separate lot or parcel by September 1 of each year as special assessments to be collected commencing with the following year's taxes. Administrative costs as set by City Council ordinance shall be assessed for each parcel and shall be added to each assessment. All assessments levied for the repayment of tree disease abatement cost may be repaid over a five (5) year period. Such assessments shall be levied under authority granted by Minnesota Statutes Section 429.101. C. Imminent Danger Of Infestation: If the NRT finds that danger of infestation of epidemic diseases in shade trees is imminent, the NRT shall notify the abutting property owners by mail that the nuisance shall be abated within a specified time. (Ord. 305, 2 -24 -2005) 4 -3 -11: SPRAYING TREES: Whenever the NRT determines that any tree or wood within the city is infected with disease, the NRT may require spraying of all nearby high value trees, as determined by the NRT, with an effective disease destroying concentrate. Spraying activities authorized by this section shall be conducted in accordance with technical and expert opinions and plans of the University of Minnesota or the Minnesota r^^,^ ,e Department of Agriculture and under the supervision of the University of Minnesota or the Minnesota Gemmi66iene Department of Agriculture, or agents thereof, whenever possible. (Ord. 305, 2 -24 -2005) 4 -3 -12: TRANSPORTING EPIDEMIC DISEASED WOOD: It is unlawful for DRAFT any person to transport within the city any diseased wood that is determined to be hazardous, as described in, but not limited to, Section 4 -3 -6 of this chapter, without taking the appropriate precautions. All county, state and federal quarantines shall be respected, and regulated articles may not be brought into or out of the City without an approved compliance agreement with the Minnesota Department of Agriculture. (Ord. 305, 2 -24 -2005) 4 -3 -13: REQUIREMENTS FOR DEVELOPERS: A. Protection Of Trees: A tree protection plan is to be submitted by all developers, builders and soil disturbance project area facilitators in accordance with the city Tree Preservation Policy. B. Required Tree Plantings: 1. Tree Planting Required; Specifications: For lots of record created after the adoption of this chapter, it shall be the responsibility of the developer of said lot to plant a minimum of two (2) live trees or one tree per fifty feet (50') of lot width at the boulevard in the front yard, whichever is greater, up to a maximum of four (4) required trees. Said trees shall be at least one and three - fourths inches (1 3/4 ") in diameter and six feet (6') in height as measured at ground level after the trees are planted. Said tree shall be planted between the months of April and October, and its species and /or type shall be on the list approved by the city. 2. Cash Escrow Or Letter Of Credit: The developer is required to escrow an amount based on that provided in Section 1 -7 -3 of this code for the cost of tree installation with a cash escrow or irrevocable letter of credit. Landscaping improvements may not be deemed complete until the city has verified survivability of all required plantings through one "winter season ", which is defined for the purpose of this chapter as the period October 31 through May 31. 3. Exemptions: The requirements in this subsection shall not apply to a developer if the minimum number of trees prescribed by this subsection are preserved in the front yard of the property and the trees meet the requirements listed above. (Ord. 305, 2 -24 -2005) 4 -3 -14: VIOLATION; PENALTY: Any person, firm or corporation who violates any section of this chapter shall be guilty of a misdemeanor and, upon conviction thereof, shall be subject to a misdemeanor penalty as then defined by Minnesota law. Additionally, the city may exercise any civil remedy available under Minnesota law for the enforcement of this code including civil action, mandamus, injunctive relief, declaratory action, or the levying of assessments. (Ord. 305, 2 -24 -2005) City of Andover Emerald Ash Borer Management Plan/Program PURPOSE The City of Andover supports a proactive approach to identifying and planning for Emerald Ash Borer (EAB) infestations to help spread the costs over a manageable time period and limit the detrimental effect on property value, quality of life and the environment. APPLICABILITY This management plan is applicable to all public and private properties within the City. EAB COORDINATOR The Natural Resources Technician (NRT) shall be responsible for implementing and overseeing this program. HISTORY OF EAB EAB (Agrilus planipennis) is an introduced pest that has been confirmed in fourteen (14) states, including Minnesota, and two (2) Canadian provinces. It was first discovered near Detroit, Michigan in July 2002. Since its initial finding, millions of ash trees have died and it's cost states, municipalities, nurseries, forest industries and property owners millions of dollars. EAB attacks all species of ash trees ( Fraxinus spp.) found in Minnesota, which include green ash ( Fraxinus pennsylvanica), black ash ( Fraxinus nigra) and white ash ( Fraxinus americana). Minnesota is home to more than 900 million ash trees statewide. Mountain ash are not of the Fraxinus genus, so are unaffected by EAB. By the end of 2010, EAB has had been confirmed in three (3) Minnesota counties: Hennepin, Ramsey and Houston. As of July 2015, it's also been found in Anoka County, as it was found in Ham Lake in March of 2015. It is uncertain when EAB will move beyond the known infestation sites and impact Andover. While the adult beetles feed on ash leaves and do little damage, the larvae feed on the inner bark of trees, disrupting its ability to transport water and nutrients up to the canopy. As the number of larvae in a tree increases, less water and nutrients reach the canopy, resulting in dieback in the canopy. Initial attacks tend to be in the upper portions of the canopy. By the time visible symptoms are obvious, the population of EAB has grown and likely spread to other ash trees in the area. RECOGNITION OF EAB Signs /symptoms of EAB that can help detect an infestation include: • Increased woodpecker activity /damage • Bark splitting (vertical slits) • Canopy dieback • D- shaped exit holes created by adult insects as they emerge from the tree • Epicormic branching/shoots near base of tree • Serpentine (s- shaped) larval galleries that are packed with frass EDUCATION The City will continue to educate residents and elected officials concerning EAB using newsletter articles, segments on QCTV, the website and public and group presentations. TRAINING The NRT will stay informed about EAB outbreaks and research, including outcomes of the pilot programs with wasps. City staff will be trained by the NRT to aid in City planning, responsible tree removal and disposal and coordination of City response. INVENTORY A local ash tree inventory will allow the City to determine what is at stake, help determine which areas should rank as priority management areas and help with overall planning efforts. Currently, the NRT has begun recording GPS locations of ash trees while in the field. Data collected includes number, size, condition and management recommendations. Conducting a broader sample survey or complete inventory provides these benefits: • Provide the percentage of public and private trees that consist of ash species • Help plan for budget impacts for removal and replacement of trees • Locate priority areas for tree management plans • To forecast potential impacts of infected trees on private property • Estimate volume of wood potentially requiring disposal • Identify homeowner associations that may benefit from education and planning DETECTION AND MONITORING Staff will continue to inspect public and private properties, both on request and during routine inspections. Suspect trees will be carefully analyzed. Sampling mechanisms to be used will be consistent with Minnesota Department of Agriculture (MDA) guidelines and will include but not be limited to visually looking at all parts of the tree, branch removal and bark shaving with a drawknife. Staff from the MDA will be contacted if EAB is suspected or confirmed in a tree. If staff detects an early infection which is limited to a few trees, the City may encourage tree removal to slow the rate of spread. As in the past, the City will volunteer to allow MDA to set up purple traps in trees on public and private properties (with permission), to determine a presence of beetles in the City. The traps use a sticky substance to trap the beetles. ORDINANCE REVISION The City will revise its diseased tree ordinance to include EAB as a threat to the urban and community forest. The ordinance amendment will specify requirements for proper management of EAB infested trees. ASH TREE REMOVAL • Public trees (as authorized by the EAB Coordinator): • Any boulevard tree found to be positively infected with EAB will be removed • Any park tree in a landscape setting infected with EAB will be removed • Trees in wooded areas in a park that are positively infected with EAB and deemed a safety hazard will be removed. All other cases will be looked at on a case by case basis • Any stressed tree may be removed • Any tree may be removed, if determined appropriate; reasons may include under power line, safety hazard, near infection center, etc. • Private trees: o EAB Coordinator will advise property owners of available options. Details on removal requirements will be specified in approved diseased tree ordinance. TREE DISPOSAL AND UTILIZATION Approved options for proper disposal of wood positively infected with EAB: • Transporting the wood to an approved disposal site • Chipping the wood to dimensions no greater than 1" x 1" x 1" • Burning • De- barking (removing all bark and at least 0.5" of outer wood) • Treatment (including heat treating, kiln drying, fumigating, seasoning or another method approved by the MDA) The NRT will continue to seek creative, cost effective ways to utilize ash trees. Examples may include finding a small scale logger who has a special market for ash or a property owner with a sawmill who makes unique products out of ash. PLANTING Ash will no longer be planted on public properties or recommended to be planted on private properties. Ash trees have been removed from the "City of Andover Tree Planting Recommendations" handout. Staff will encourage planting other species. Native species found from common seed sources are highly recommended. The City will also plant a variety of species, as diverse plantings reduce impacts of insect or disease outbreaks. CHEMICAL TREATMENTS Currently, there are no cost - effective treatments for widespread city consideration. The EAB Coordinator will provide consultation and information to help property owners devise treatment plans, as requested. Information will include the handout "Homeowner Guide to Insecticide Selection, Use and Environmental Protection." Staff will advocate for responsible application of chemicals that can be done by a non lieensed per-so . For chemicals that require professional application, only Certified Pesticide Applicators shall be recommended. BUDGET The City Forestry Fund will include a new category called "EAB Fund" and will may fund this plan beginning in 204-1 2016 with a $5,000 allotment. Each year, an additional $5,000 may be added. The NRT will continue to seek grant opportunities to fund this plan. PARTNERSHIPS /CURRENT ACTIVITIES The City will continue to work with the MDA, DNR, Minnesota Shade Tree Advisory Committee (MnSTAC) and neighboring communities. The NRT is was a board member of MnSTAC and as event chairman of the Forest Health Committee in 2011, is OF!EiRg an hosting hosted a discussion on EAB for communities around the state. The City held a meeting with neighboring communities in August 2009, and plans to hold more meetings in the future. Included local units of government include the Cities of Blaine, Coon Rapids, Ham Lake, Ramsey and Anoka County Parks. Regular meetings will allow for idea and resource sharing and a regional EAB program that is consistent and cost effective. SUMMARY EAB poses a serious threat to Andover's urban and community forest. The City will implement this EAB Management Plan/Program to the extent feasible. This management plan is dynamic and subject to revision(s) as new information about EAB becomes available and/or as new treatment options are identified. Furthermore, this plan is also subject to revision should state and /or federal policies necessitate plan updates. 2044 2015/2016 TASKS /GOALS • Present plan to and train City staff about EAB • Send in f r.. atio on 1; A ZZ t„ A..de or i ; see Tree Care !'..m..anie.. • Meet with neighboring communities (Ramsey, Ham Lake, Blaine, Coon Rapids and Anoka County Parks) • Continue inventory • Remove stressed ash trees in boulevards and parks • Prepare education materials on EAB for public events, newsletter & website • Have booth and/or presentation at Home Show • Establish Budget to be included in the City 24�2 2016 Annual Budget CONTACTS EAB Coordinator: Kameron Kytonen, Natural Resources Technician: 763 - 767 -5137 k.kytonen&andovermn.gov www.andovennn.gov MDA Arrest the Pest Hotline: 651- 201 -6684 ? C I T Y CN Db 06 • A 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV City of Andover Diseased Tree Removal /Sanitation Enforcement Policy Summer 2007 Revised Winter 2016 Table of Contents Page Section I. General Policy Statement Section II. Diseased Tree Enforcement Process Section III. Hiring City Contractor 67 Section IV. Abatement and Assessment Process -78 Diseased Tree Removal/Sanitation Enforcement Policy Section I. General Policy Statement The City of Andover is home to many specimen trees and woodlands of valuable trees including but not limited to oak, maple, ash and pine. Each year, the future of these resources is under increased pressure due to factors including development and insect and disease problems. The City considers diseased and hazardous trees to be public nuisances. This policy outlines the strategies that will be used to ensure that diseased trees will be properly treated. This will help save more trees in the community and offset the effects of all insect and disease problems in our urban and community forests. Currently, oak wilt and Dutch elm disease are two diseases that have wreaked havoc on each species of trees respectively. Each year, hundreds of trees die from these aggressive diseases. Because of the nature of how the diseases spread, proper sanitation of the diseased trees is an important step in preventing further spread to healthy trees. In general terms, sanitation refers to removing and properly treating the wood of the trees, which can be done in one or more of many different ways. Other insect and disease problems, such as the emerald ash borer (EAB), offer additional long -term concerns. This particular insect kills all species of ash trees and has killed millions of ash trees in the Detroit area; it has now been found in several counties in Minnesota including Anoka County. is *hr°°tening to move into Wiseensin and Minnesota. Because of the large populations of ash in Minnesota and the difficulty in controlling this insect, its arfval continued spread in this state could be devastating. Due to these ever - growing concerns, it is critical that local units of government insert policies and work with property owners to increase awareness of these current and potential threats. It is equally important that local units of government take a proactive approach to ensure that diseased trees are properly treated by established deadlines. Finally, this document is subject to modifications and edits as suggested by staff and brought to the City Council for formal approval. 3 Diseased Tree Removal/Sanitation Enforcement Policy Section II. Diseased Tree Enforcement Process Overview: The following outlines the general process of how the Natural Resources Technician (NRT) or designee will handle typical situations as a result of a suspected or positive diagnosis of diseased or hazardous trees on private properties in the City of Andover. These practices are governed by Minnesota Statutes 18G.13. The specific actions taken are based on tree diseases or hazardous trees that are considered through Andover City Code and State Law to be public nuisances. How Property Inspections of Diseased or Hazardous Trees are Initiated. There are generally three different scenarios that trigger an initial property inspection. They are: 1. A property owner (PO) requests the City to perform an inspection on their own property; 2. A complaint is made from another source that requests the City to perform an inspection on a given property; and 3. Diseased or hazardous tree(s) noticed in the field by the City. General Enforcement Process: A general process shall be followed based on how the first inspection was initiated. Under each scenario that triggers the first inspection, a series of steps to be taken by the City will be listed. PO Requests Inspection on Their Property: a. NRT or designee shall visit site, evaluate property and mark tree(s); will consult with PO and explain findings; b. NRT or designee shall send Declaration of Nuisance (see "attachment 1") to PO; and c. Compliance check done by NRT or designee. i. If found to be in compliance: no further action taken at this time ii. If found to be out of compliance: refer to Section IV. 2. An Inspection on a Given Property Stemming From Complaint: a. NRT or designee shall visit site from the street but will not enter property and evaluate propefty fir-s will leave notice (see "attachment 2 ") or send initial letter (see "attachment 3 ") to PO if nuisance(s) deteete suspected; i. Call back (from PO): 1. NRT or designee will consult with PO and explain findings ask for permission to enter property; if granted, will evaluate property, mark tree(s) and explain findings; 2. NRT or designee shall send Declaration of Nuisance to PO; and 3. Compliance check done by NRT or designee 4 a. If found to be in compliance: no further action taken at this time b. If found to be out of compliance: refer to Section IV. ii. No call back (from PO): 1. NRT or designee shall send second letter (see "attachment 4") MA Pteelwratien of Nuisanee to PO ; and a. Call back (from PO): I . NRT or designee will consult with PO and ask for permission to enter property; if granted, will evaluate property, mark tree(s) and explain findings; 2. NRT or designee shall send Declaration of Nuisance to PO; and 3. Compliance check done by NRT or designee 1. If found to be in compliance: no further action taken at this time 2. If found to be out of compliance: refer to Section IV. b. No call back (from PO): 1. NRT or designee shall send third letter (see "attachment 5) and Declaration of Nuisance to PO; 2. Whether the property owner calls back or not, the NRT or designee will contact an Anoka County Sheriff Deputy, evaluate property, mark tree(s) and explain findings (if applicable); and 3. Compliance check done by NRT or designee 1. If found to be in compliance: no further action taken at this time 2. If found to be out of compliance: refer to Section IV. 3. Diseased or Hazardous Trees Noticed in Field by the City: a. NRT or designee shall follow all the same steps as scenario 42 above. 5 Additional details: • "In compliance" refers to property owners who remove the tree(s) and take all of the measures listed in "attachment 6 7;" • NRT or designee may mark diseased or Hazardous trees with tree marking paint, ribbons, etc. and/or map them at any time; • NRT or designee shall promptly notify potentially affected, adjacent property owners of disease existence in area (see "attachment 6 6 "); • NRT or designee will provide adequate literature or indicate where this literature can be found online including, but not limited to, information on the disease(s) present, a list of licensed Andover tree care companies and a handout on proper disposal and treatment of diseased wood (see attachment 6 7); • NRT or designee will may send a reminder letter no later than January 15 to property owners who have diseased trees that are considered public nuisances, which will indicate intentions to inspect (perform compliance check); • If NRT or designee encounters property where there are no trespassing signs and/or there is resistance from a property owner, the accompaniment of a sheriff will be requested prior to inspection; • Standard compliance checks will begin no earlier than February I of each year and will go until all recorded properties have been addressed; • Special compliance checks will begin no earlier than the date on the Declaration of Nuisance for that particular property. rol Diseased Tree Removat/Sanitation Enforcement Policy Section II1. Hiring City Contractor Option A Each year, the City shaft may hire one contractor to perform removals and/or treatments of trees considered by the City to be public nuisances. This contractor will be utilized by the City when property owners have failed to meet the deadline set forth in the Declaration of Nuisance. Additional details on this are as follows: 1. The City will set up a bid opening, inviting all Andover licensed tree care companies to submit sealed bids on removal and proper treatment of diseased trees; 2. Interested contractors will provide bids on tree removal and treatment requirements as specified by the NRT or designee including but not limited to the following: a. Cutting down the tree and leaving the stump no higher than 2 inches above the finished grade; b. Hauling away and properly treating all of the wood and brush 3. The City will formulate a formal contract with the hired contractor, which will outline all of the pertinent details describing expectations, responsibilities, timeframes, penalties, etc.; and 4. The length of the contract will be for one year starting the date of the agreement. There may be situations that have special circumstances. A situation involving a property containing a large volume of diseased trees may be encountered. This may occur on land of a large property owner, such as a farmer. In these instances, the NRT or designee will decide whether or not it's feasible to use the City contractor for the work. These cases may render the need to hire a logger or land - clearing company to perform the work. If this situation occurs, the NRT or designee will have the right to get at least two bids from contractors of this sort and hire it out. If the bid from a contractor exceeds 10% of the land value or a maximum of $5,000, the nuisance abatement will be subject to City Council approval. 7 Option B The City may also operate on a case -by case basis, where three or more contractors are asked to give bids for each situation where a property owner has failed to meet the deadline set forth. In this case, the lowest bid will be accepted. There will be no formal contract set up, but the hired contractor for each job will be held to the same treatment requirements criteria. Diseased Tree Removal/Sanitation Enforcement Policy Section IV. Abatement and Assessment Process For those property owners who fail to abate the public nuisance(s) noted on their property, the City will abate the public nuisance(s) and assess the property as follows: 1. The NRT or designee will quantify the number and sum up the total diameter of all of the trees to be condemned (Option A only); 2. The City contractor will be notified to review the property and will submit a proposal to the City within the timeframe established under the contract; 3. The NRT or designee will provide written authorization to the City contractor (or lowest bidding contractor if working under Option B) to perform the work; 4. Upon completion, the NRT or designee will evaluate the property to ensure conformance to standards and pay the contractor for services provided; and 5. The NRT or designee will send a letter to the property owner summarizing the charges to be paid, and shall report the same to the City Clerk. 6. If the property owner fails to pay the City within the designated time period, the City Clerk shall list all such charges, along with a City administrative cost, against each separate lot or parcel by September 1S` of each year as special assessments under Minnesota Statutes Section 429.101, and other pertinent statutes. These special assessments are to be collected commencing with the following year's taxes, unless provided for otherwise by consent and action of the City Council. All assessments levied for the repayment of tree disease abatement costs shall be pursuant to Minnesota Statutes Section 429.101, Subd. 2. 8 DRAFT 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV City of Andover Ash Injection Program Emerald Ash Borer (EAB) has been found in Anoka County and threatens to move into the City of Andover. Thus, the City has gotten bids and has awarded a contract to _ for injecting eligible ash trees for property owners at a city -wide bulk discount. These are trees determined by the contractor and/or City staff to be acceptable candidates based on but not limited to the following parameters: size, structure, health, condition and location. In addition, the trees shall not have more than 25% canopy loss as a result of EAB infestation. Below is a list of other important program guidelines: • The company is licensed and bonded with the City; • The trees shall be treated with Emamectin benzoate; • Treatments will last up to 3 years; • The company offers a money back guarantee if your treated tree(s) die from EAB while under the company's protection plan (details available upon request); • The price is based off the DBH (Diameter at breast height) of trees in inches; • BONUS CITY DISCOUNT: In addition to the bulk discount found with the hired contractor, the City will contribute a maximum of 20% of the total cost of eligible trees per property with a maximum contribution of $75; • The City has the final say whether or not tree(s) are eligible for treatment and eligible to receive the bonus city discount; • Please fill out the information below and provide a copy of the estimate and a map showing the location of the trees from the company. Email to: k.kylonen@andovennn.gov • City staff will review the application and if it's approved, will sign it, contact you by phone or email and send back the final form. Upon receipt, you may schedule treatment; and • Treatments are not retroactive and the application shall be approved by the City prior to work commencing to be eligible for the bonus city discount. DRAFT City of Andover Ash Injection Program i°Bonus City Discount" Application DATE ADDRESS PHONE EMAIL TOTAL NUMBER OF TREES ESTIMA' PROPERTY OWNER SIGNATURE DATE CITY STAFF SIGNATURE DATE C I T Y O F N 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV To: Mayor and Council Members CC: Jim Dickinson, City Administrator David Berkowitz, Director of Publ' orks /City Engineer�a From: Kameron Kytonen, Natural Resourc echnician Subject: Discuss Hazardous Tree Removal - Engineering Date: February 23, 2016 INTRODUCTION The City has a Diseased Tree Ordinance and a Diseased Tree Removal /Sanitation Enforcement Policy, which outline the process of inspecting, diagnosing, marking trees, notifying property owners, issuing deadlines and condemning trees. Currently staff only considers trees that have the potential of spreading insect and diseases as public nuisances. These trees may be dead or actively dying. Dead and live trees with structural defects that have no threat of spreading a particular disease, such as oak wilt, are not being required for removal. However, these may be constituted as "hazardous," as they may be dangerous to people, animals and property. Should the ordinance and policy be updated to include hazardous trees as public nuisances? DISCUSSION There are many situations around the City where there are standing dead trees. In addition, there are instances where trees are alive, but have certain characteristics that make them more prone to failing because of structural defects (i.e. splits or cracks). These trees are more brittle and less stable. Many of these trees are in locations where failure could be dangerous to people and animals and /or significant damage could take place to houses and property (a target exists). Staff receives several calls a year from property owners who have concerns about these types of trees. Many fear they will fall and damage their property or consider them aesthetically unappealing. Because of the continued threat of new insect and disease problems, such as the Emerald Ash Borer (EAB), more trees will end up dead in our landscapes. This will increase the number of hazardous trees and potentially hurt visual appeal. ACTION REQUESTED Staff is requesting direction from the City Council on whether or not to update our ordinance and policy to include hazardous trees. rRespectfully su mitted, 0 ameron nen Natural Resources Technician Attachments: "How to Recognize Hazardous Defects in Trees" Recognize Hazardous Defects in Trees .mow, United States Forest Service Northeastern Area Department of State & Private r° Agriculture . -.4n How to Recognize Hazardous Tree Defects Contents Page Introduction 1 Inspecting Trees 2 What to Look For 3 Dead Wood 3 Cracks 4 Weak Branch Unions 5 Decay 7 Cankers 8 Root Problems 9 Poor Tree Architecture 11 Multiple Defects 12 Corrective Actions 12 Move the Target 13 Prune the Tree 13 Remove the Tree 14 Cabling and Bracing 14 Topping and Tipping- -Poor Pruning Practices 15 Suggested Reading 16 The United States Department of Agriculture (USDA) Forest Service is a diverse organization committed to equal opportunity in employment and program delivery. USDA prohibits discrimination on the basis or race, color, national origin, sex, religion, age, disability, political affiliation and familial status. Persons believing they have been discriminated against should contact the Secretary, U.S. Department of Agriculture, Washington, DC 20250, or call 202- 720 -7327 (voice), or 202 -720 -1127 (TTY). Introduction Trees add to our enjoyment of outdoor experiences whether in forests, parks, or urban landscapes. Too often, we are unaware of the risks associated with defective trees, which can cause personal injury and property damage. Interest in hazard tree management has increased in recent years due to safety and liability concerns resulting from preventable accidents. Recognizing hazardous trees and taking proper corrective actions can protect property and save lives. A "hazard tree" is a tree with structural defects likely to cause failure of all or part of the tree, which could strike a "target." A target can be a vehicle, building, or a place where people gather such as a park bench, picnic table, street, or backyard. This brochure was created to help home owners and land managers in recognizing hazardous defects in trees and to suggest possible corrective actions. We recommend that corrective actions be undertaken by professional arborists. Because of the natural variability of trees, the severity of their defects, and the different sites upon which they grow, evaluating trees for hazardous defects can be a complex process. This publication presents guidelines, not absolute rules for recognizing and correcting hazardous defects. When in doubt, consult an arborist. Inspecting Trees Inspect trees under your responsibility every year. Tree inspections can be done at any time of year, leaf -on or leaf -off. To be thorough, inspect trees after leaf drop in fall, after leaf -out in spring, and routinely after severe storms. Inspect trees carefully and systematically. Examine all parts of the tree, including the roots, root or trunk flare, main stem, branches, and branch unions. Be sure to examine all sides of the tree. Use a pair of binoculars to see branches high off the ground. Consider the following factors when inspecting trees: Tree Condition: Trees in poor condition may have many dead twigs, dead branches, or small, off -color leaves. Trees in good condition will have full crowns, vigorous branches, and healthy, full-sized leaves; however, green foliage in the crown does not ensure that a tree is safe. Tree trunks and branches can be quite defective and still support a lush green crown. Tree Species: Certain tree species are prone to specific types of defects. For example, some species of maple and ash in the Northeast often form weak branch unions (page 5 ), and aspen is prone to breakage at a young age (50 -70 years) due to a variety of factors, including decay (page 7) and cankers (page 8). Tree Age and Size: Trees are living organisms subject to constant stress. Pay particular attention to older trees, which may have accumulated multiple defects and extensive decay. What to Look For Hazardous defects are visible signs that the tree is failing. We recognize seven main types of tree defects: dead wood, cracks, weak branch unions, decay, cankers, root problems, and poor tree architecture. A tree with defects is not hazardous, however, unless some portion of it is within striking distance of a target. Dead wood Dead wood is "not negotiable " -- dead trees and large dead branches must be removed immediately! Dead trees and branches are unpredictable and can break and fall at any time (Fig. 1). Dead wood is often dry and brittle and cannot bend in the wind like a living tree or branch. Dead branches and tree tops that are already broken off ( "hangers" or "widow makers ") are especially dangerous! Take immediate action if... • A broken branch or top is lodged in a tree. • A tree is dead. • A branch is dead and of sufficient size to cause injury (this will vary with height and size of branch). Figure 2. A serious crack like this one indicates that the tree is already failing! Weak Branch Unions Weak branch unions are places where branches are not strongly attached to the tree. A weak union occurs when two or more similarly- sized, usually upright branches grow so closely together that bark grows between the branches, inside the union. This ingrown bark does not have the structural strength of wood, and the union is much weaker than one that does not have included bark (Fig. 3). The included bark may also 5 Figure 3. This weak branch union has failed, creating a highly hazardous situation. act as a wedge and force the branch union to split apart. Trees with a tendency to form upright branches, such as elm and maple, often produce weak branch unions. Weak branch unions also form after a tree or branch is tipped or topped (page 15), i.e., when the main stem or a large branch is cut at a right angle to the direction of growth leaving a large branch stub. The stub inevitably decays, providing very poor support for new branches ( "epicomzic" branches) that usually develop along the cut branch. Take action if... • A weak branch union occurs on the main stem. • A weak branch union is cracked. • A weak branch union is associated with a crack, cavity, or other defect. Decay Decaying trees can be prone to failure, but the presence of decay, by itself, does not indicate that the tree is hazardous. Advanced decay, i.e., wood that is soft, punky, or crumbly, or a cavity where the wood is missing can create a serious hazard (cover photo). Evidence of fungal activity including mushrooms, conks, and brackets growing on root flares, stems, or branches are indicators of advanced decay. A tree usually decays from the inside out, eventually forming a cavity, but sound wood is also added to the outside of the tree as it grows. Trees with sound outer wood shells may be relatively safe, but this depends upon the ratio of sound to decayed wood, and other defects that might be present. Evaluating the safety of a decaying tree is usually best left to trained arborists (Fig. 4). Take action if... • Advanced decay is associated with cracks, weak branch unions, or other defects. • A branch of sufficient size to cause injury is decayed. 7 Figure 4. This seriously decayed tree should have been evaluated and removed before it failed. • The thickness of sound wood is less than 1" for every 6" of diameter at any point on the stem. Cankers A canker is a localized area on the stem or branch of a tree, where the bark is sunken or missing. Cankers are caused by wounding or disease. The presence of a canker increases the chance of the stem breaking near the canker (Fig. 5). A tree with a canker that encompasses more than half of the tree's circumference may be hazardous even if exposed wood appears sound. Take action if... • A canker or multiple cankers affect more than half of the tree's circumference. Figure 5. The large canker on this tree has seriously weakened the stem. A canker is physically connected to a crack, weak branch union, a cavity, or other defect. Root Problems Trees with root problems may blow over in wind storms. They may even fall without warning in summer when burdened with the weight of the tree's leaves. There are many kinds of root problems to consider, e.g., severing or paving -over roots (Fig. 6); raising or lowering the soil grade near the tree; parking or driving vehicles over the roots; or extensive root decay. Soil mounding (Fig. 7), twig dieback, dead wood in the crown, and off -color or smaller Figure 6. Severing roots decreases support and increases the chance of failure or death of the tree. than normal leaves are symptoms often associated with root problems. Because most defective roots are underground and out of sight, aboveground symptoms may serve as the best warning. Take action if... A tree is leaning with recent root exposure, soil movement, or soil mounding near the base of the tree. • More than half of the roots under the tree's crown have been cut or crushed. These trees are dangerous because they do not have adequate structural support from the root system. 10 Figure 7. The mound (arrow) at the base of this tree indicates that the tree has recently begun to lean, and may soon fail. • Advanced decay is present in the root flares or "buttress" roots. Poor Tree Architecture Poor architecture is a growth pattern that indicates weakness or structural imbalance. Trees with strange shapes are interesting to look at but may be structurally defective. Poor architecture often arises after many years of damage from storms, unusual growing conditions, improper pruning, topping, and other damage (Fig. 8). A leaning tree may be a hazard. Because not all leaning trees are dangerous, any leaning tree of concern should be examined by a professional arborist. Take action if... • tree leans excessively. • large branch is out of proportion with the rest of the crown. 11 Figure 8. This tree is decayed and badly out of balance because of poor maintenance. It is dangerous, and extremely unattractive! Multiple Defects The recognition of multiple defects in a tree is critical when evaluating the tree's potential to fail. Multiple defects that are touching or are close to one another should be carefully examined. If more than one defect occurs on the tree's main stem, you should assume that the tree is extremely hazardous. Corrective Actions Corrective actions begin with a thorough evaluation. If a hazardous situation exists, 12 there are three recommended options for correcting the problem: move the target, prune the tree, or remove the tree. Move the Target Removing the target is often an inexpensive and effective treatment for correcting a hazard tree. Easily moved items like play sets and swings, RV's, and picnic tables can be placed out of the reach of the hazardous tree with little effort and expense. If the target cannot be moved and a serious hazard exists, consider blocking access to the target area until the hazard can be properly eliminated. Prune the Tree A hazardous situation may be caused by a defective branch or branches, even though the rest of the tree is sound. In this case, pruning the branch solves the problem. Prune when • A branch is dead. • A branch of sufficient size to cause injury is cracked or decayed. • A weak branch union exists and one of the branches can be removed. • Branches form a sharp angle, twist, or bend. • A branch is lopsided or unbalanced with respect to the rest of the tree. • A broken branch is lodged in the crown. Remove the branch and prune the stub. 13 Pruning a tree properly early in its life is a good way to effectively avoid many potential problems when the tree is older and larger. When done correctly, routine pruning of trees does not promote future defects. If done improperly, immediate problems may be removed, but cracks, decay, cankers, or poor architecture will be the ultimate result, creating future hazards. We recommend that the "natural target" pruning method be used. This pruning method is fully described in How to Prune Trees (Bedker, O'Brien & Mielke, 1995). Remove the Tree Before cutting a tree down, carefully consider the alternatives. The effects of removing a tree are often pronounced in landscape situations and may result in reduced property values. Tree removal should be considered as the final option and used only when the other two corrective actions will not work. Tree removal is inherently dangerous and is even more serious when homes and other targets are involved. Removal of hazardous trees is usually a job for a professional arborist. Cabling and Bracing Cabling and bracing does not repair a hazard tree, but when done correctly by a trained arborist, it can extend the time a tree or its parts are safe. Done incorrectly, it creates a more serious hazard. We do not recommend cabling or bracing as treatment for a hazard tree unless the tree has significant historic or landscape value. 14 Topping and Tipping - -Poor Pruning Practices Topping is the practice of pruning large upright branches at right angles to the direction of growth, sometimes used to reduce the height of the crown. Tipping is the cutting of lateral branches at right angles to the direction of growth to reduce crown width. Both of these practices are harmful and should never be used. The inevitable result of such pruning wounds is decay in the remaining stub, which then serves as a very poor support to any branches that subsequently form. Trees that are pruned in this manner are also misshapen and esthetically unappealing (see Fig. 8). Conclusions Evaluating and treating hazard trees is complicated, requiring a certain knowledge and expertise. This publication outlines some of the basic problems that may alert you to a hazardous situation. Never hesitate if you think a tree might be hazardous. If you are not sure, have it evaluated by a professional. Consult your phone book under "Arborists" or "Tree Service." Remember that trees do not live forever. Design and follow a landscape plan that includes a cycle of maintenance and replacement. This is the best way to preserve the health of our trees and ensure a safe and enjoyable outdoor experience. 15 Suggested Reading Albers, J.; Hayes, E. 1993. How to detect, assess and correct hazard trees in recreational areas, revised edition. St. Paul, MN: Minnesota DNR. 63 p. Bedker, P.J.; O'Brien, J.G.; Mielke, M.E. 1995. How to Prune Trees. NA- FR -01- 95. Radnor, PA: USDA Forest Service, Northeastern Area State and Private Forestry. 30 pp. Also available on the Internet via FTP or the World Wide Web at: http: / /willow.ncfes.umn.edu. Fazio, J. 1989. How to Hire an Arborist. Tree City USA Bulletin No. 6. Nebraska City, NE: National Arbor Day Foundation; 8 p. Fazio, 11989. How to Recognize and Prevent Hazard Trees. Tree City USA Bulletin No. 15. Nebraska City, NE: National Arbor Day Foundation; 8 pp. Robbins, K. 1986. How to Recognize and Reduce Tree Hazards in Recreation Sites. NA- FR -31. Radnor, PA: USDA Forest Service, Northeastern Area;. 28 P. Shigo, A. L. 1986. A New Tree Biology. Durham, NH: Shigo and Trees, Associates; 595 p. 16 The Authors: Minnesota DNR Jana Albers, Plant Pathologist, Grand Rapids, MN. Tom Eiber, Entomologist, St. Paul, MN. Ed Hayes, Plant Pathologist, Rochester, MN. USDA Forest Service Peter Bedker, Plant Pathologist, St. Paul, MN. Martin MacKenzie, Plant Pathologist, Morgantown, WV. Joseph O'Brien, Plant Pathologist, St. Paul, MN. Jill Pokomy, Plant Pathologist, St. Paul, MN. Mary Torsello, Plant Pathologist, Durham, NH. Please cite this publication as follows: Minnesota Department of Natural Resources, and USDA Forest Service. 1996. How to Recognize Hazardous Defects in Trees. USDA Forest Service NA -FR -01 -96.20 pp. 17 Minnesota DNR Minnesota Department of Natural Resources 500 Lafayette Road St. Paul, MN 55155 -4044 USDA Forest Service Northeastern Area State & Private Forestry Headquarters Office USDA Forest Service Northeastern Area State and Private Forestry 5 Radnor Corporate Center, Suite 200 Radnor, PA 19087 -4585 Durham Field Office USDA Forest Service Northeastern Area State and Private Forestry Louis C. Wyman Forest Sciences Laboratory P.O. Box 640 Durham, NH 03824 -9799 Morgantown Field Office USDA Forest Service Northeastern Area State and Private Forestry 180 Canfield Street Morgantown, WV 26505 -3101 St. Paul Field Office USDA Forest Service Northeastern Area State & Private Forestry 1992 Folwell Ave. St. Paul, MN 55108 -1099 18 Notes How to Recognize Hazardous Defects in Trees was written to help people identify potential problems with trees. Trees with serious defects can pose an extreme hazard and should be treated with caution. The best way to correct a hazardous tree is to hire a professional arborist. Information in this publication can help to identify trees that require attention. 19 How to Recognize Hazardous Defects in Trees For further information, contact: A, 1 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: Mayor and Council Members CC: Jim Dickinson, City Administra FROM: David L. Carlberg, Community SUBJECT: Discuss Subordinate Classroom Structures DATE: February 23, 2016 REQUEST a.ctor The City Council is requested to continue discussions on subordinate classroom structures and provide direction to staff on the City Council's desire to regulate these structures. BACKGROUND The City Council discussed subordinate classroom structures at the October 20, 2015 workshop (minutes attached). The Planning and Zoning Commission recommended to the City Council that the City take a stronger position on these structures by allowing an additional five year extension with possibly an additional two year extension if the property owner had plans in place to remove the structure or create a permanent structure. During City Council discussions at the October 201h workshop, the question was raised on how churches were treated versus public schools. Prior to a 2014 code amendment, subordinate classroom structures were allowed by Conditional Use Permit (CUP) where there is a church as the principal use and as a permitted use when located on a licensed primary and/or secondary school property. The code amendment, adopted in 2014, made subordinate classroom structures for both churches and schools allowed by the granting of an Interim Use Permit (IUP). Attached please find historical documentation in the form of staff reports and minutes from meetings on discussions had to date on this topic. ACTION Provide direction to staff on how Council would like to proceed. Attachments October 20, 2015 City Council Staff Report with attachments October 20, 2015 City Council Workshop Minutes Respectfully Submitted, David L. Carlberg CT Y O F 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304'• (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: Mayor and Councilmembers CC: Jim Dickinson, City Administrator's Dave Carlberg, Community Dev opm t Director SUBJECT: Subordinate Classroom Structures - P anning DATE: October 20, 2015 INTRODUCTION At the September 8, 2015 workshop, the Planning and Zoning Commission (P & Z) discussed subordinate classroom structures in regards to other cities requirements, life span of the structures, and quality of the structures. Staff researched codes and spoke with staff from 10 metro cities. The research information and P & Z workshop meeting minutes are attached for your review. DISCUSSION City Requirements Through researching the 10 communities, staff determined it is more common to require either an Interim Use Permit (IUP) or Conditional Use Permit (CUP) with an expiration date. If an extension is requested, it is typical for the city to work with the applicant by extending the permit. 6 of the citiea (Andover, Anoka, Blaine, Elk River, Plymouth, Ramsey) have similar /same code requirements. 3 cities (Coon Rapids, Rogers, Wayzata) do not address temporary structures within the city code. Coon Rapids updated the City Code 2 years ago and the portion referring to temporary classrooms was removed from the code. Rogers does not address theirs; however, it would need to be approved through the site plan review process. Wayzata does not address there and the city does not have these types of structures. 2 cities (Rogers, Shoreview) require the strictures to be approved as part of a site plan review process; however neither of the cities have these type of structures. Life Span of Structure No cities' address the life span of the structures. According to Andover Fire and Building staff, the structure itself should last indefinitely as Iong as it is kept up and continuously updated to address life safety issues. Fire codes don't change very often. There are provisions for existing building that may not require the building to meet the new code but must meet the code that was in effect at the time it was constructed. Currently, the State Fire Marshal's Office is required to inspect all public schools and their "relocatable classrooms" every 3 years. Andover Fire Staff makes an effort to inspect the schools and churches every 2 years. Quality of Structure No cities' address the quality of the structures. These types of structures are constructed according to Building and Fire Codes. Again, according to Andover Fire and Building staff, the structure itself should last indefinitely as long as it is kept up and continuously updated to address life safety issues. Planning and Zoning Commission Recommendation At the September 8, 2015 workshop, P & Z stated concerns with the length of time these structures remain on site and the continuous extension approvals. P & Z recommended allowing subordinate classroom structures for a time period of five (5) years with the possibility of a two (2) year extension with a plan from the property owner to either remove the structure(s) or the conversion to a permanent structure(s). ACTION REQUESTED City Council is requested to discuss the timeframe allowed for existing and future subordinate classrooms and provide P & Z and staff with direction regarding the possibility of a time limit. Attachments Research of City Codes September 8, 2015 P & Z Workshop Meeting Minutes Respectfully ubmi ed, Stephanie L. Hanson Subordinate /Temporary Structures Andover Requires an IUP 5 year permit. Staff is not aware of any instances in which an existing permit was not extended if the request has been made. Public schools are a permitted use in residential districts; there are no restrictions on expansion by construction of temporary classrooms. Places of Worship are a conditional use therefore any expansion of their facilities would require the issuance of an IUP. Anoka Requires an IUP In 2010 the CC approved an NP for temporary classrooms for the Anoka High School, set to expire on 7/1/2020. Part of the conditions does not allow additional classrooms. If an addition to the high school is not completed by 2020, the NP will be extended. Blaine Requires a CUP The City will work with the applicant to determine a timeframe needed for the CUP. The existing CUP structures at the schools and churches have been amended when the request has been made. Coon Rapids Code does not address temporary classrooms Staff is not aware of any of these structures within the City of Coon Rapids A couple years ago the Coon Rapids code was updated — the portion referring to temporary classrooms was removed from the code. Elk River Requires an IUP IUP's have an expiration date of typically 2- 3 years with a condition that the NP will not be extended. Currently, there is one (1) place of worship with an NP for 3 (three) temporary structures. The structure being used as an office will not be granted an NP extension; the 2 (two) structures used for classrooms may apply for an NP extension. Plymouth Requires an NP Are allowed for public or private schools The City will work with the applicant to determine a timeframe needed for the IUP. Extensions for the existing permit would be extended if the request has been made. Ramsey Requires an IUP 5 year permit. Staff is not aware of any instances in which an existing permit was not extended if the request has been made. Ramsey Public Works Department has an NP for use of a modular office. Rozers Code does not specifically address temporary classrooms. Existing "temporary classrooms" have been approved through the site plan review process. Shoreview These types of structures are considered permanent. An applicant would need to go through the formal site plan review process. The structures would need to meet building requirements set forth in the Shoreview code. The City does not have any of these types of structures within the city. Wavzata Code does not address temporary classrooms. Staff is not aware of any of these structures within the City of Wayzata. PLANNING AND ZONING COlVAIISSION WORKSHOP IVEETING SEPTEMBER 8, 201 5 The Workshop Meeting of the Andover Planning and Zoning Commission was called to order by Chairperson Daninger on September 8, 2015, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Commissioners present: Chairperson Daninger, Commissioners Tim Cleven, Bert Koehler, Kyle Nemeth, and Jeff Sims. Commissioners absent: Lynae Gudmundson, Steve Peterson Also present: Community Development Director Dave Carlberg City Planner Stephanie Hanson Others DISCUSS SUBORDINATE CLASSROOA [STRUCTURES a: Other Cities Requirements b. Life Span of the Structure c. Quality of Structures City Planner Hanson stated she looked at ten different metro cities and Andover's code is very similar to them. She stated some cities do not even address subordinate classroom structures. Coon Rapids used to have them in their code and removed them so they are not allowed at all. Chairperson Daninger indicated he did not remember if this item was the Commission's idea to take a look at or was it directed by the City Council. Commissioner Cleven stated the Commission wanted to look at this because the subordinate classroom extensions are never ending. Commissioner Nemeth stated if the structures are temporary, then why are they always getting approved with sidewalks and landscaping. Commissioner Cleven stated even in the report the Fire Department goes in and inspects them and approves them as long as they meet the current safety codes. Andover Planning and Zoning Commission Workshop Afeeting Alimites —September 8, 2015 Page 2 Chairperson Daninger asked what if they changed the wording to portable classrooms. Commissioner Cleven stated they could not call them that because then they would need to be readily moveable which they are not. Chairperson Daninger asked if they should then be called classrooms. City Planner Hanson stated some of the other cities definition states the structures need to be used only for classrooms, not offices or storage. Commissioner Nemeth stated it seems like the applicants need to be given a timeframe or a sunset clause which will make them do something within the specified period of time or they would need to remove the structure. Cormmissioner Koehler asked if the City is going to keep renewing the structures and the Building Department and Fire Department say they are safe, why do we care. He asked if there is some mechanism they could put in place to make these permanent rather than renewing them year after year. Commissioner Cleven stated in order for a piece of property, temporary of any type, for it to be permanent, it has to be set on a foundation with permanent water, sewer and power connected to it. Commissioner Koehler stated when he says permanent he means the City's idea of permanent like a PUD on the property. It could be a lasting permit as long as the Building Department and Fire Department say it is safe. Commissioner Nemeth stated the retoricalness of it is the applicants have been given the opportunity to build but the City keeps approving the subordinate building so there is no real incentive to build within the specified timeframe. He agreed after a set amount of time it needs to have a sunset clause. After a set amount of time then the City needs to tell the owner they need to bring something through as a site plan or something like that and get something done rather than continuing to approve the structure. Chairperson Daninger stated something that bothers him is the never ending extension approvals. Commissioner Koehler stated that is why he is suggesting converting it to permanent at some point. He stated he did not think these structures are safe and he would feel really bad if someone got hurt. Commissioner Cleven indicated he did not think these are safe structures. Commissioner Nemeth thought they were setting a precedent by approving these without setting a sunset clause on them. He thought they needed to start enforcing the time frame of the approval. City Planner Hanson thought Public Schools did not need permitting for the structures. Community Development Director Carlberg stated the old structures did not need permitting but the new ones would need permitting because they will fall under the new IUP rules. I v Andover Planning and Zoning Conantission Workshop j1deeting Minutes — September 8, 2015 Page 3 Chairperson Daninger stated he was ok with approving the structure but only allowing a certain amount of time such as seven years and no longer. Commissioner Nemeth stated they could go with a five year permit with a possible two year extension but no longer. Commissioner Sims thought they would need a reason why not to continue to approve the permit. Commissioner Cleven stated in his mind these structures are not temporary because a temporary structure gets removed after the set number of time that it was approved for. He stated a temporary structure can become permanent if anchored to a concrete slab and can be connected to water, sewer and electricity. Commissioner Koehler stated he liked the idea of approving a permit of five years with a two year extension but he thought it should be longer like another five years because of economic downturns and he thought ten years would be enough for a turn around. City Planner Hanson stated the Fire Chief stated the Fire Department treats these as permanent structures in the City. She indicated she will get a more definitive answer to this. Commissioner Cleven stated Andover does not allow mobile homes in the City and that is what these are. Commissioner Nemeth stated he understood where Councilmember Knight was coming from with schools because of the up and down cycles of the populations. Commissioner Cleven stated if we do not allow mobile homes in the City, why are we allowing kids to spend time in one at school. Community Development Director Carlberg stated the City does not allow mobile homes but they do allow manufactured homes provided they are located in a manufactured home park. Chairperson Daninger asked if this can go before the City Council indicating the Planning Commission would like to change this to a five year permit with a possible extension for two years and then be done. Community Developmen rector ar rg asked if this would be new or existing or both. Chairperson Daninger thought this should include new and existing allowing the extension only once it comes up for renewal. Commissioner Koehler thought they should not require someone to remove the building but have the possibility of converting it to a permanent structure. Community Development Director Carlberg stated he would bring this item forward to the City Council for further direction and come back to the Planning Commission with more direction. ANDOVER CITY COUNCIL WORKSHOP MEETING — OCTOBER 20, 2015 MINUTES The Workshop Meeting of the Andover City Council was called to order by Mayor Julie Trade, October 20, 2015, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present: Mike Knight, Sheri Bukkila, Valerie Holthus and James Goodrich Councilmember absent: None Also present: City Administrator, Jim Dickinson Community Development Director, Dave Carlberg Public Works Director /City Engineer, David Berkowitz Others SUBORDINATE CLASSROOM STRUCTURES Mr. Carlberg explained the Planning and Zoning Commission discussed subordinate classroom structures in regard to other cities requirements, life span of the structures, and quality of the structures. Staff researched codes and spoke with staff from 10 other metro cities. Mr. Carlberg reviewed the information with the Council. Mayor Trade stated she did not think any of the churches planned for the structures to be there as long as they have been. Councilmember Bukkila asked what kind of expense is put into the subordinate classrooms in terms of buying, outfitting, utilities and everything else. Mr. Carlberg stated he is not sure. Mayor Trade stated it depended on the user because Grace Lutheran Church actually poured footings for their structure. Mr. Carlberg stated they have permanent anchoring or foundations and that is the reason why the City changed the name from Temporary to Subordinate Classrooms because they are starting to be more than temporary buildings. Councilmember Bukkila asked when these structures first came into the City were they supposed to be temporary. Mr. Carlberg indicated that was correct. Councilmember Bukkila stated she was at the point where she thought they should sunset all of the subordinate structures and get rid of them and not allow any new ones. Councilmember Holthus thought they should have a moratorium on any new subordinate classroom structures in the City and grandfather in the ones currently in the City, because they basically can last forever. Mayor Trade thought that was an overstatement because the floors do Andover City Council Workshop Meeting Minutes — October 20, 2015 Page 2 fail along with the surrounding structures. Councilmember Bukkila thought these structures have gone to a permanent structure because they are putting significant money into them, they are building these out to last, and she did not think that was the City's original intent. Councilmember Holthus thought some of the subordinate structures are well maintained and she is not sure if she wanted to phase those out because they are needed, the structures do not look bad, and according to the Fire Marshall they can stay viable as long as they are maintained. Councilmember Goodrich stated he is not against rubber stamping them. He stated if the structures are maintained and inspected he is all for letting them do what they want to do with the structures as long as they follow the conditions the City puts on them. He stated he would like to allow them to stay if there is no real downside to it. Mayor Trude stated as she drives around the City she wonders about the outward appearance, they do have building codes and they allowed this, she sees these structures as detractors to the community. Councilmember Holthus asked what the City stance is on mobile homes in the City. Mr. Carlberg stated the City does not allow mobile homes in the City unless in a mobile park, which is an R -5 District and the few that are in the City have been grandfathered in and when they are gone they cannot bring in new. Councilmember Holthus thought they could go by those same criteria for these structures. Councilmember Knight thought they could also go to a deadline program where after five years they need to show they are moving to a permanent structure. Mayor Trude thought that was what the Planning and Zoning Commission was moving towards. Councilmember Bukkila stated she would like to see progress towards building a permanent structure. Councilmember Holthus stated she would like the ones currently in the City to be grandfathered in. Councilmember Bukkila asked if this was unique to the churches or would this include the schools also. Mr. Carlberg stated this would apply to churches only because public schools are permitted in residential districts, the ones put in at Andover High School are permitted. Councilmember Bukkila stated she would have a problem with this because she wanted everything to be equal, if they do not permit them in private then they should not be permitted in public. Mr. Carlberg stated in 2013 they did a complete rewrite of the Use Code, Chapter 12, and they separated them out at that point and indicated schools would be permitted. Mayor Trude thought the schools were another issue that needed to be reviewed for safety reasons. Mayor Trude thought they should go with the Planning and Zoning Commission recommendation because the majority of the Council is for this. She also thought they should Andover City Council Workshop Meeting Minutes —October 20, 2015 Page 3 talk with the churches regarding their plans with the structures. Mr. Carlberg explained at the September 15, 2015 City Council work session, Council discussed an artkle in the Star Tribune "Granny flats" may find a home in Inver Grove Heights and gave the PlahQing and Zoning Commission direction to discuss the possibility of allowing ADU's within the itv of Andover. Mr. Carlberg r6yiewed the staff report with the Council. Mayor Trude thou t they would want to get some public input regarding this item. She stated no one else is doing a onditional Use Permit (CUP) for these and she thought they would want some neighborhood inp \tosure Councilmember Holthu the structures would be like mobile homes. Mr. Carlberg stated the building code quirements that would be used for these types of structures. He stated they would w it is more of a permanent structure rather than a portable type of home. The Council would like the Planning ordinance. SEPTEMBER 2015 GENERAL FUND B Commission to continue to work on a possible PROGRESS REPORTS Mr. Dickinson stated the City of Andover 2015 Ge ral Fund Budget contains total revenues of $9,876,575 and total expenditures of $10,364,730 eludes $26,000 of 2014 budget carry forward); a decrease in fund balance is planned. Mr. Dickinson reviewed the information with the Council. SEPTEMBER 2015 CITYINVESTMENTSREVIEW Mr. Dickinson reviewed the City investments with the Council. Mayor Trude asked how the cash carry forward (Fund Balance) is looking. Mr. Dickinson stated it is looking good. 2016 BUDGET & 2016 -2020 CIP DEVELOPMENT UPDATES Mr. Dickinson reviewed the 2016 budget and CIP development with the Council, in particular available General Fund Balance. ANDOVEA T Y O F 5 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: Mayor and Council Members CC: Jim Dickinson, City Administrator' FROM: David L. Carlberg, Community Development Director SUBJECT: Discuss Accessory Dwelling Units DATE: February 23, 2016 REQUEST The City Council is requested to discuss and provide direction to staff on the City Council's desire to amend the City Code to allow Accessory Dwelling Units (ADUs). BACKGROUND The City Council discussed ADUs at their September 15th and October 201h workshop meetings (minutes attached). Council directed the Planning and Zoning Commission to work on a possible ordinance amendment to allow ADUs. The Planning and Zoning Commission held three work sessions on November 101 2015, December 8, 2015 and January 13, 2016 (minutes attached). The Commission reviewed other city regulations on ADUs and drafted the attached ordinance amendment for Council consideration. The Commission's recommendation is to allow ADUs in the R -1, Single Family Rural Zoning District as a detached accessory structure by the granting of a Conditional Use Permit. ACTION Provide direction to staff on how Council would like to proceed with the proposed ordinance amendment. Attachments Draft Ordinance Amendment September 15, 2015 City Council Workshop Minutes October 20, 2015 City Council Workshop Minutes November 10, 2015 Planning and Zoning Commission Minutes December 8, 2015 Planning and Zoning Commission Minutes January 13, 2016 Planning and Zoning Commission Minutes Other City's ADU Regulations Summary Respectfully Submitted, 2) C/. Cot, David L. Carlberg Accessory Dwelling Unit (ADU). A. Purpose. The purpose of this subdivision is to permit and regulate an accessory dwelling unit (ADU). An ADU may be located accessory to a single - family dwelling in the R -1, Single Family Rural zoning district only as a conditional use subject to the regulations set forth herein. The minimum lot size in the R -1 zoning district ensures that additional housing will have less impact on neighboring properties. Because this use will be located in established one - family residential districts (single family home neighborhoods), the installation and use of an accessory dwelling unit must be strictly controlled to avoid adverse physical, social, economic, environmental and aesthetic impacts. By allowing only those accessory dwelling units that are in compliance with all of the performance standards of this subdivision, the character and quality of existing neighborhoods will be protected. B. Definitions. For the purpose of this chapter, the following definition shall apply unless the context clearly indicates or requires a different meaning. Accessory Dwelling Unit (ADU) means a subordinate habitable dwelling unit, which has its own basic requirements of shelter, heating, cooking and sanitation, accessory to a single - family dwelling (hereinafter principal dwelling unit). C. Performance standards. No property within a single - family residential district shall have more than one dwelling unit, except an ADU may be permitted as conditional use to a single family dwelling when the following requirements are met: 1. The primary residence must be located on a lot within an R -1, Single Family Rural zoning district with a minimum lot size of 2.5 acres. 2. The property owner must reside in either the primary residence or the ADU as their permanent residence according to state law. 3. An ADU may not be subdivided or otherwise segregated in ownership from the primary residence structure. 4. An ADU's total floor area shall be no more than 900 square feet and not less than 400 square feet. 5. An ADU shall be designed and maintained as to be consistent with the architectural design, style, appearance and character of the primary residence as a single - family residence. An ADU shall not extend beyond the height of the primary residence. 6. Two off - street parking spaces shall be required for the ADU, in addition to the off - street parking spaces required for the primary residence. An additional garage may be constructed, provided it complies with all state and city regulations. 7. No more than one ADU shall be permitted on a lot or parcel. 8. An ADU shall have a permanent foundation. Houses on wheels or trailers shall be prohibited. 9. An ADU shall be constructed and maintained in accordance with all state laws, state building, plumbing, electrical, mechanical, and fire code regulations and City Code requirements. 10. The primary residence and ADU shall be constructed and maintained in compliance with the property maintenance regulations set forth in the City Code. 11. Rental of the accessory dwelling unit, or rental of the principal dwelling unit if the property owner resides in the accessory dwelling unit, shall require a City rental license pursuant to the City Code. It is unlawful for a property owner to construct or allow occupancy within an ADU that does not comply with all of the foregoing requirements. Andover City Council Workshop Meeting Minutes — September 15, 2015 Page 2 Mr. Dickinson stated they could do some ponding on the land if they did road 'mprovements in the area. Mayor Trude stated she talked to Gretchen Sabel of the Op/dhas mmission who went out and looked at the property and stated there are a lot of trees enough and they would not have chosen it for open space. The landlocked property le at all from what staff has told her. Mr. Haas indicated the property is landlock lot of water on it. He thought it might have been tax forfeit but did not designate i . Mayor Trude asked if the second property act ually a ed to the City stormwater management system. Mr. Haas stated there would be some co s to do survey work, an easement on the property, a description written on it if they w;;aAas to sell the property. Mr. Dickinson stated there are nine parcels abutting the parcel. Mr. stated the Park and Recreation Commission recommended both properties to b/othe or Trude did not think there would be any money from a sale, if anything it would cmoney. Mr. Haas stated they might get some tax revenue back if someone were to parcels. Councilmember Bukkila stated the cost to do all of the work could be rollerchase price of the parcels. Staff ind icated that is correct. Consensus was to keep the parrXs as passive parks. DISCUSS PARK SIGNAP VER TISEMENT POLICY Mr. Haas explained/iffie City Council is requested to consider amending the Park Advertising Policy to allow bu. ,Xnesses to advertise directly with the City in the parks and /or facilities. Mayor Trude/thought they needed to go back and find out why they originally made the agreement ith the Associations. Mr. Haas stated it was done so the Associations could make money. Goodrich stated he is not interested in cutting out the Associations. The Council ® DISCUSS A CCESSOR Y D WELLING UNITS Mayor Trude stated this item came up at Night to Unite by someone who wanted to build a unit to allow their mother to live with them and stay independent. Mr. Carlberg explained the City Council is requested to discuss and provide direction to staff on the City Council's desire to amend the City Code to allow accessory dwelling units. Councilmember Knight thought if this issue is happening nationwide they should look at this. The Council concurred to have the Planning and Zoning Commission look at this. Councilmember Bukkila stated she would only want to allow this on larger parcels. Andover City Council Workshop Meeting Minutes — September 15, 2015 Page 3 Mayor Trade asked if the current city ordinances allow this type of structure. Mr. Carlberg stated they can have guest home type structures in the City but kitchens in them are not allowed. Councilmember Goodrich asked if there were any downfalls to allowing the accessory dwelling units. Mr. Carlberg stated there has not been enough research done on them as of yet. Councilmember Bukkila stated the concerns are how will people prove a familial relationship and what authority do they carry otherwise. She stated even if the original intent is for a family member, the situation is what will happen down the road. She stated this becomes a property rights issue and they need to look at the parking, congestion, impact to schools and use of services and roads. Mayor Trade stated when she looked at the City of Minneapolis code they had everything covered that Councilmember Bukkila mentioned and more. Mayor Trade thought it would be a good idea for the Planning and Zoning Commission to review this and find any issues with it that might come up for the Council to look at. Councilmember Bukkila stated as a tag along they will end up with a renter situation, they will need an eviction process along with possibly of more domestic issues. Mr. Carlberg stated it could be regulated by a rental license. Fire Chief Streich reviewed his personal situation and the requirements in his community. He stated with the cost of senior housing, many cannot afford it and it would break some people. Councilmember Knight asked if they could put an age limit on it. Mayor Trade stated the person who brought this up has a daughter who has special needs but wants to be independent. Councilmember Bukkila did not think it will happen in volume from the start but they do not want to be so narrow minded as to not look ahead to find out what could happen in thirty years. Mayor Trade thought the Planning and Zoning Commission should look at this and bring it forward to the City Council for discussion. Councilmember Bukkila stated she would like to review this item before it went to the Planning and Zoning Commission and see other city's ordinances regarding this. Councilmember Holthus thought it would be good for the Planning and Zoning Commission to look at this because they may have a different perspective of it. Councilmember Bukkila stated she would like to see more drafts from other cities before it would go to the Planning and Zoning Commission because if they are not comfortable, as a Council with the idea, she wondered if it is worth having the Planning and Zoning Commission spending time on it. She thought the Council could do the first blush with staff's help rather than give it to the Planning and Zoning Commission. Consensus of the Council was to have the Planning and Zoning Commission review this and bring it back to the Council before proceeding with a public hearing on the topic. Andover City Council Workshop Meeting Minutes — October 20, 2015 Page 3 talk with the churches regarding their plans with the structures. 9 A CCESSOR Y D WELLING UNITS (AD U) Mr. Carlberg explained at the September 15, 2015 City Council work session, Council discussed an article in the Star Tribune "Granny flats" may find a home in Inver Grove Heights and gave the Planning and Zoning Commission direction to discuss the possibility of allowing ADU's within the City of Andover. Mr. Carlberg reviewed the staff report with the Council. Mayor Trude thought they would want to get some public input regarding this item. She stated no one else is doing a Conditional Use Permit (CUP) for these and she thought they would want some neighborhood input to these. Councilmember Holthus wondered if the structures would be like mobile homes. Mr. Carlberg stated the building code has a lot of requirements that would be used for these types of structures. He stated they would want to make sure it is more of a permanent structure rather than a portable type of home. The Council would like the Planning and Zoning Commission to continue to work on a possible ordinance. Mr. Dickinson ed the City of Andover 2015 General Fund Budget contains total revenues of $9,876,575 and tota enditures of $10,364,730 (includes $26,000 of 2014 budget carry forward); a decrease in fim3lbajance is planned. Mr. Dickinson reviewed the information-with the Council. SEPTEMBER 2015 CITYINVESTMENTS Mr. Dickinson reviewed the City investments with the Mayor Trude asked how the cash carry forward (Fund Balance) is looks Mr. Dickinson stated it is looking good. 2016 B UDGET & 2016 -2020 CIP DEVELOPMENT UPDATES Mr. Dickinson reviewed the 2016 budget and CIP development with the Council, in particular available General Fund Balance. PLANNING AND ZONING COMMISSION WORKSHOP MEETING NOVEMBER 10, 2015 The Workshop Meeting of the Andover Planning and Zoning Commission was called to order by Chairperson Daninger on November 10, 2015, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Commissioners present: Chairperson Daninger, Commissioners Lynae Gudmundson, Bert Koehler, Kyle Nemeth, and Jeff Sims. Commissioners absent: Tim Cleven, Steve Peterson Also present: Community Development Director Dave Carlberg Others DISCUSSACCESSORYDWELLING UNITS Mr. Carlberg introduced Mr. Doug Determan, Andover resident and also the Deputy Building Official with the City of Minneapolis who made a presentation to the Planning Commission on accessory dwelling units (ADU) and the experiences the City of Minneapolis has encountered implementing ADU regulations. Mr. Carlberg asked what the pattern was in Minneapolis for the twenty approved ADU. Mr. Determan stated part of the reason zoning wanted to get going on ADU is because the rental licensing department discovered illegal units and there was no pathway to make these legal. He noted some of the twenty approved ADU have been illegal units for years. Mr. Determan stated the ADU has to be owner occupied but the occupant of the other dwelling does not have to be family. It can be a rental situation and a choice the City of Minneapolis made. 800 square feet is the maximum size of the ADU unless it is attic space. Mr. Determan reviewed the regulations for ADU in Minneapolis with the Commission and showed some photos of ADU. Mr. Carlberg stated they will have to talk about if they want to start in the rural area of the City with detached units so they do not start getting into duplex type of housing units because once they have that then they start running into possible rental licensing issues. Chairperson Daninger thanked Mr. Determan for the presentation and thought it was interesting to see how a large city handles these types of units. Andover Planning and Zoning Commission Workshop Meeting Minutes —November 10, 2015 Page 2 Mr. Carlberg reviewed some ADU regulations the Planning Commission might want to review. Chairperson Daninger asked why they are considering regulating ADU. He thought it was in order to make sure they do not get illegal units or uncontrolled structures. Commissioner Nemeth agreed with Commissioner Gudmundson' previous statements regarding requiring a Conditional Use Permit (CUP) and having it come before them to get a CUP for the ADU. This will allow the City to have some input in what is being built. Chairperson Daninger asked what is controlling this discussion. Mr. Carlberg stated this was driven by a question from a resident at Night to Unite and the Council's direction was instead of just guest houses where they can't have kitchen facilities, they should start looking at ADU to accommodate the return of the grandparents, parents or children to the home. There has been some interest from residents but the big picture is this is becoming a trend and they are seeing a lot of cities creating regulations in the past year and this is something that needs to be addressed. Commissioner Gudmundson stated from a research position there are several in Andover that are not legal at this time. Commissioner Nemeth thought it is also a matter of safety. He thought this was like the single family rentals and they will have to rely on people to be honest that they are building or improving a portion of their home and coming to the City for approval. Commissioner Gudmundson thought what Mr. Determan said about tiny houses is a good point and thought they should add the requirement of footings or a foundation. She indicated she did not have a problem with attached units but she thought maybe to help with the issue of becoming more like a duplex maybe they could do a percentage of the above grade part of the house. This might keep it accessory sized. She thought the ADU should be required to match the principal residence. The building codes are another thing that would need to be addressed. Commissioner Koehler asked what defined a kitchen. Mr. Carlberg thought it would be cooking facilities other than a microwave. Mr. Koehler stated if the kitchen is the defining factor, they need to define the kitchen. He did not think that the size of the dwelling should be limited because some couples may need more than one bedroom to live in. Commissioner Nemeth did not think the accessory dwelling should be regulated for related family members only because of the way relationships are today. Commissioner Koehler agreed. Chairperson Daninger thought the home needs to be owner occupied but agreed that the accessory dwelling would not need to be related to the owner of the property. Andover Planning and Zoning Commission Workshop Meeting Minutes — November 10, 2015 Page 3 Mr. Carlberg stated that it might be wise to have the ADU secure a rental license no matter who is living there. The Commission agreed on that. Commissioner Nemeth stated he did not want to box them in too much because of all of the different circumstance that could occur. Commissioner Koehler stated they could put limits on the number of people allowed to live in the accessory dwelling such as two per bedroom. The Commission discussed regulations and size of the dwelling accessory. Commissioner Gudmundson thought they should put a limit of one bedroom because the more bedrooms added makes it more advantageous of making it a rental and they do not necessarily want to go that way. Mr. Carlberg stated some cities did limit the ADU based on the square footage of the unit, but some allowed two bedrooms or a certain number of people to occupy the unit. Commissioner Nemeth stated another point he liked was having the ADU be a certain percentage of the actual primary residence footprint. He was leaning towards twenty -five percent. Mr. Carlberg thought if the Commission wanted to use a percentage of the unit, it should be based on the footprint of the livable portion of the residence otherwise the ADU could be quite large. Commissioner Nemeth stated he would like to see something regarding septic systems and having it certified to handle the additional space. Mr. Carlberg stated there are regulations regarding this as the septic design is based on the number of bedrooms. Mr. Carlberg stated staff will take the information and bring it forward to another worksession meeting in December. OTHER BUSINESS. Community Development Director Carlberg updated the Planning Commission on related items. ADJOURNMENT. Motion by Nemeth, seconded by Koehler, to adjourn the meeting at 6:55 p.m. Motion carried on a 5 -ayes, 0 -nays, 2- absent (Cleven, Peterson) vote. Respectfully Submitted, Sue Osbeck, Recording Secretary Timesaver Off Site Secretarial, Inc. PLANNING AND ZONING COMMISSION WORKSHOP MEETING — DECEMBER 8, 2015 The Workshop Meeting of the Andover Planning and Zoning Commission was called to order by Chairperson Daninger on December 8, 2015, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Commissioners present: Commissioners Timothy Cleven, Bert Koehler IV, Kyle Nemeth, and Jeff Sims (arrived at 6:39 p.m.). Commissioners absent: Commissioners Lynae Gudmundson and Steve Peterson Also present: Community Development Director Dave Carlberg City Building Official Fred Patch Others DISCUSSACCESSORYDWELLING UNITS Mr. Carlberg made a presentation to the Planning Commission on accessory dwelling units (ADU) and the provisions to allow them in the City of Andover. Based on feedback from the Commission, staff prepared a draft ordinance amendment for the Commission's consideration. Research was carried out utilizing the ordinances of several different local cities. Commissioners expressed their desire that a 2.5 -acre minimum lot requirement be maintained in this draft due to an effort to protect the privacy of adjacent neighbors. This clarification should be added to section C.1. Commissioner Cleven asked for clarification on why the draft ordinance would state that the property owner must reside in the home not less than 183 days per calendar year. There was further discussion regarding the number of days. It was determined that 185 is required for Minnesota residency. Commissioner Nemeth inquired as to if requiring residents to homestead would suffice and resolve the issue. Mr. Carlberg replied he believed that was where the draft language came from. Commissioner Koehler inquired if a resident could homestead in an ADU. Andover Planning and Zoning Commission Workshop Meeting Minutes — December 8, 2015 Page 2 The Commission discussed homestead regulations and how the draft ordinance would potentially affect ADU owners and occupants, specifically those with two homes. Mr. Patch indicated that it is important to have good guidelines, but if it came to enforcement, it would be difficult. Commissioner Koehler stated that the ordinance is more for intent than enforcement, for example in the case of someone moving out of state. Mr. Patch stated, in the past, that in order to qualify for homestead, one needed to reside on the property on January 1. Commissioner Nemeth asked to take his comment "off the table," because in the case of a snowbird, they would still "reside" as stated in the draft ordinance. Commissioner Koehler requested that the ordinance be "wordsmithed" to represent the intention to reside. The Commission discussed how to limit the size of an ADU. Mr. Carlberg clarified that one property can have two addresses, e.g. Suite A and Suite B. He further stated, in reference to section CA of the draft ordinance, that staff has a preference for a maximum and minimum size for the ADU. Chairperson Daninger recommended that the ordinance be changed to state that the floor area be limited to 500 — 900 square feet, based on the trend research done by other cities. Mr. Patch recommended that the wording "residential floor area" be used. He further explained that "dwellings" are all kinds of buildings including sheds, etc. So it is useful to distinguish what is residential from a building code standpoint. Commissioner Koehler questioned what would happen if a big garage is attached to a home that included residential space. Mr. Carlberg clarified that only the residential part of the building would be considered an ADU and that the garage itself would not be part of the ADU. Mr. Patch said that the second floor could possibly be a separate dwelling. Commissioner Nemeth expressed his desire to include section C.5 in the draft ordinance amendment, which refers to the ADU not being permitted, if the building coverage exceeds or will exceed, with the ADU, 20 percent of the lot or parcel. Chairperson Daninger requested that section C.5 be re -written for clarity Andover Planning and Zoning Commission Workshop Meeting Minutes —December 8, 2015 Page 3 Mr. Carlberg recommended that the section (C.5) be struck as it applies to a rural lot. Mr. Patch stated that section C.8, regarding the number of bedrooms, is redundant to existing provisions. Chairperson Daninger explained that even though it is redundant, it is good to have all of the details in one place, instead of an asterisk to another ordinance. Commissioner Koehler asked the question, "If everything meets code, why do we care about the number of bedrooms ?" Chairperson Daninger stated that this question could be brought to the Council. Commissioner Koehler expressed that there are examples of families that need affordable housing with more bedrooms, however he is all for limiting the "frat house." Mr. Carlberg stated that this provision was included to make the ADU accessory. Chairperson Daninger asked that the bedroom requirement section be flagged and that the full Commission be in attendance in order to discuss it further as there has been quite a bit of debate. Commissioner Koehler asked if section C.9 would limit two cars to be parked outside. Mr. Carlberg stated that the proposed ordinance amendment would not limit the number of cars that can be parked on a particular property, although cars must be parked on the driveway or other allowed surfaces. In reference to an additional garage being built, Commissioner Nemeth asked if a permit would be required. Mr. Carlberg confirmed that a minimum of two parking spots would be required and that a permit would be required to build a garage. Mr. Patch explained the differentiation between a single and two - family dwelling in reference to section C.11. The key point is what is the separation between the two dwellings. He continued by stating that the change of occupancy is complicated and has a significant number of requirements related to sprinklers, etc. In this case, a home has to remain a single family dwelling. A distinction is that the wiring, plumbing, and fire alarm system is connected. These types of homes are already all over the state. As long as the two living spaces are interconnected, it is considered a single - family dwelling. Mr. Patch showed examples of homes fitting this criterion. The placement of separate exterior doors was discussed as well. He also explained why in some ways this type of Andover Planning and Zoning Commission Workshop Meeting Minutes —December 8, 2015 Page 4 set up can be no different than a master bedroom suite. He said that he needed to spend more time looking at the issue from a building code perspective. Commissioner Sims arrived at 6:39 p.m. Mr. Patch stated that an attached ADU needs to have a door between, and if it is through the garage, that qualifies. He told the Commission to forget about the idea of an attached ADU, because there is already code for that. If an ADU is detached, that is another matter, and that is what the City needs provision for. Mr. Carlberg reminded the Commissioners that guesthouses are permitted, but they do not have kitchens. Commissioner Koehler asked for clarification. If an ADU is attached, was there really a reason to discuss the matter further, because the City already has a code for that. Mr. Patch stated that if an ADU is a completely separate building, current building code will not allow for that. He continued by saying that state building code does not address this situation very well. Commissioner Cleven reiterated by saying that if you put a door inside, between units, it is one residence. Chairperson Daninger inquired if Mr. Patch could come to another workshop meeting, in January, as he did not want to rush through the discussion of the rest of the draft ordinance amendment. Mr. Carlberg indicated that the group could hold another workshop at 6 pm before the January 13, 2016, regular Planning and Zoning Commission meeting. ADJOURNMENT. Motion by Nemeth, seconded by Cleven, to adjourn the meeting at 6:53 p.m. Motion carried on a 5 -ayes, 0 -nays, 2 - absent vote. Respectfully Submitted, Marlene White, Recording Secretary TimeSaver Off Site Secretarial, Inc. 2 3 4 5 6 7 8 PLANNING AND ZONING COMMISSION WORKSHOP MEETING 9 JANUARYI3, 2016 10 11 The Workshop Meeting of the Andover Planning and Zoning Commission was called to 12 order by Vice Chairperson Nemeth on January 13, 2016, 6:00 p.m., at the Andover City 13 Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. 14 15 Commissioners present: Commissioners Lynae Gudmundson, Bert Koehler IV, and 16 Kyle Nemeth. 17 18 Commissioners absent: Chairperson Dean Daninger and Commissioners Timothy 19 Cleven, Steve Peterson, and Jeff Sims. 20 21 Also present: Community Development Director Dave Carlberg 22 Building Official Fred Patch 23 24 25 CONTINUE DISCUSSION ONA CCESSOR Y D WELLING UNITS 26 27 Mr. Carlberg provided a presentation to the Planning Commission regarding accessory 28 dwelling units 29 30 Commissioner Koehler stated that the focus should be on the detached unit and the 31 attached unit that does not meet building specifications, such as separate entries that are 32 completely walled off. 33 34 Mr. Patch statedthatwould ehange the designation from IRC1 to IRC2, noting that it 35 would be inconceivable to make the units one. 36 37 Mr. Carlberg stated that the City only allows a single family home on a single - family lot 38 and does not allow for duplexes on that type of lot. He stated that staff is recommending 39 to residents that wish to have that type of dwelling addition to keep the addition attached 40 to the home and have a common access way in order to comply with the ordinance. 41 42 Mr. Patch stated that the home could have multiple kitchens and could have shared or 43 separate facilities as long as it is all connected. He specified that the Code would allow 44 for up to five unrelated individuals living in the home as a family and still be considered 45 a single family home. 46 Andover Planning and Zoning Commission Workshop Meeting Minutes — danuary 13, 2016 Page 2 1 Mr. Carlberg confirmed the consensus of the Commission to only consider detached units 2 and reviewed the proposed changes to the ordinances per the previous discussion of the 3 Commission. He referenced the requirement that specifies the owner must reside in the 4 home for no less than 185 days per calendar year and asked if the Commission would 5 want to include that in the ordinance. He confirmed that the state statute defines 6 residency as living in a place for no less than six months of the year and that statute 7 would remain in place to govern should this language not be included in the ordinance. It 8 was the consensus of the Commission to leave the first sentence stating "the property 9 owner must reside in either the primary residence or the ADU as their permanent 10 residence as according to state law" and delete the second sentence in its entirety. 11 12 Mr. Carlberg referenced the condition regarding bedrooms for the ADU, which limits 13 bedrooms at two. 14 15 Commissioner Koehler stated that he would be in favor of not including a number of 16 bedrooms as the City Code would guide that aspect and he would not want to limit the 17 design as long as code requirements are met. 18 19 Mr. Patch stated that it is important that the primary structure remain as the primary 20 structure in size. He noted that there are specifications for septic requirements that are 21 tied to the number of bedrooms as well. 22 23 Commissioner Koehler stated that is his point exactly; there are other specifications that 24 will limit that aspect on its own. 25 26 Mr. Patch provided an example of a pool house that a resident was building this past fall 27 that would be used for multiple uses. He stated that his worry would be that the person 28 could then load that small structure with a number of beds. 29 30 Commissioner Koehler stated that if a person is willing to invest the funds to enlarge the 31 septic to the required size to support the number of bedrooms and meet the other Code 32 requirements, the City should not care about the number of bedrooms. 33 34 Mr. Patch stated that he would like to think about that a bit further. He stated that he 35 believes that it would be self - limiting under the current building codes as well but just 36 wants to ensure that mass sleeping "bunk houses" would not be constructed. He noted 37 that there are safety concerns for that type of setup. 38 39 Mr. Carlberg stated that the City would have two opportunities to review the application 40 through the Conditional Use Permit (CUP) review and the building permit review. He 41 noted that it would be a large investment for a resident to build a structure of this size, 42 because of the minimum size of 500 square feet, and to go through the process that will 43 be required with a CUP. It was the consensus of the Commission to not include a 44 maximum number of bedrooms. Mr. Carlberg referenced the item regarding addresses Andover Planning and Zoning Commission Workshop Meeting Minutes — January 13, 2016 Page 3 1 and it was the consensus of the Commission to follow up with the Fire Department to 2 determine their opinion on the matter. 3 4 Mr. Patch noted that it would also be difficult to add in additional addresses as that can 5 cause confusion for mail delivery and GPS use. 6 7 Mr. Carlberg stated that his intent would be to bring this item to the City Council at a 8 February worksession to review. 9 10 Mr. Patch stated that in his opinion perhaps the minimum size for an ADU could be 11 reduced from 500 square feet to 400 square feet based on the availability and design of 12 construction materials. The Commission agreed. 13 14 15 OTHER BUSINESS. 16 17 Mr. Carlberg updated the Planning Commission on related items. He distributed a flyer 18 for an upcoming meeting on Tuesday, January 26`h and will be hosted at the Coon Rapids 19 City Center by the Alliance for Sustainability. He noted that staff will be attending the 20 workshop at 3:30 p.m. He noted that interested Commissioners could also attend or find 21 more information on the website. He stated that staff can collect literature and make a 22 short presentation to the Commission at a future meeting. 23 24 25 ADJOURNMENT. 26 27 Motion by Gudmundson, seconded by Koehler, to adjourn the meeting at 6:40 p.m. 28 Motion carried on a 3 -ayes, 0 -nays, 4- absent (Daninger, Cleven, Peterson, and Sims) 29 vote. 30 31 32 Respectfully Submitted, 33 34 Amanda Staple, Recording Secretary 35 Timesaver Off Site Secretarial, Inc. 36 Accessory Dwelling Units (ADU) Definition A subordinate habitable dwelling unit. An accessory dwelling unit has cooking facilities, sanitary facilities and an independent means of access, attached to the single family dwelling unit/garage (attached or detached). Apple Valley Permitted accessory use Allowed in Zone 1 No more than 2 occupants provided 2 off street surface parking spaces exist Dwelling shall not exceed 900 sf Eagan Permitted accessory use Allowed in Estate District (16,000 so and RI (12,000 so Property owner must reside in primary residence or ADU. Dwelling shall be no more than 960 sf or 33% of the primary residences footprint, whichever is less. An ADU shall not be less than 300 ft. Shall not contain no more than 2 bedrooms Must be located within or attached to the primary residence Must be connected to municipal sewer and water Elk River Permitted accessory use, need license from the Fire Chief and a rental license Property owner must reside on the property Dwelling size must be between 250 ft —1,000 sf No more than 2 bedrooms No front yard entrance Can be attached or detached from the primary residence Farmin on - Allowed with a conditional use permit Allowed in the Ag District, R2 (6,000 so and R5 (40,000 sf —12 units /acre) Property owner must reside on the property Dwelling maximum size is 1,800 sf Lakeville Permitted with an Administrative Permit from the Zoning Administrator Must be attached to primary residence with an interior connection between to the 2 living quarters Must have municipal sewer and water available Must have 3 garage stalls attached to the residence No more than 2 occupants Minneapolis Permitted with an Administrative Permit from Zoning Administrator Can be internal to the principal structure, attached or detached Internal and attached — limited to 800 sf, no external stairs Detached — Limited to 1,000 sf, can have external stairs Property owner must reside on property Plvmouth Allowed in the following districts: Rural (1 acre), urban 12,500 sf- 18,000 so Permitted with an Administrative Permit Must be located above an attached or detached garage Shall not exceed 1,000 sf or the gross floor area of the principal dwelling, whichever is less Property owner must reside on the property 2 off street parking spaces shall be provided Must be connected to municipal sewer and water Richfield Permitted accessory use Can be attached or detached from the primary residence Shall be between 300 ft — 800 sf or the gross floor area of the principal dwelling, whichever is less A minimum of 3 off - street parking spaces is required in order to add an ADU of any kind Roseville Allowed in the LDR -1 District (11,000 sf- 12,500 so Allowed with a nontransferable ADU Occupancy Permit from the Community Development Department Property owner must reside on the property Shall be 300 sf - 650 sf, but in no case shall it exceed 75% of the principal dwellings four season living area Must provide 1 off - street parking space Occupancy is limited to 2 people Maximum of 1 bedroom Shoreview Allowed in Estate and Detached single family district Permitted with an Administrative Permit by the City Manager. Permit must be renewed upon the sale of the home Cannot be more than 30% of the buildings total floor area nor greater than 800 sf with a minimum of 500 sf of living space Maximum 2 bedrooms Property owner must reside on the property No front entrances shall be added to the house to access the apartment 3 off - street parking spaces shall be provided, 2 of which must be enclosed 9 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: Mayor and Council Members CC: Jim Dickinson, City Administra FROM: David L. Carlberg, Community SUBJECT: Discuss Solar Energy System Regulations DATE: February 23, 2016 REQUEST lirector The City Council is requested to discuss and provide direction to staff on the adoption of regulations regarding Solar Energy Systems. BACKGROUND The City has received a recent request to install a freestanding Solar Energy System on a residential property. This request has prompted city staff to investigate other city's regulations regarding Solar Energy Systems. Staff in researching Solar Energy System regulations found the following commonalities: • Are allowed as a permitted accessory use. • Both roof and ground mounted are permitted. • Height and setback requirements apply. • Have abandonment provisions. • Require a building permit. • Require compliance with state building and electrical codes. • Require certifications (Underwriters Laboratories, Inc.) • Rooftop mounted units are required to have color matching piping to roof or solar panel unit and may not hang over edge of roof. • Ground mounted units are required to be screened, located in rear yard, and may not encroach on drainage and utility easements. Staff has attached the City of Lakeville's and the City of Rosemount's ordinances as the most complete examples for Council review and consideration. ACTION Provide direction to staff on how Council would like to proceed with regulating Solar Energy Systems. Attachments City of Lakeville's Ordinance City of Rosemount's Ordinance Respectfully Submitted, w Z/ (194^�e David L. Carlberg Lakeville 11 -29 -5: SOLAR ENERGY SYSTEMS: V) 0 A. Accessory Use: 1. Solar energy systems shall be allowed as a permitted accessory use in all zoning districts in accordance with the standards in this section. 2. The following systems shall be exempt from the requirements of this section and shall be regulated as any other building element: a. Building integrated solar energy systems that are an integral part of a principal or accessory building, rather than a separate mechanical device, replacing or substituting for an architectural element or structural component including, but not limited to, photovoltaic or hot water solar energy systems contained within roofing materials, windows, skylights and awnings. b. Passive solar energy systems that capture solar light or heat without transforming it into another form of energy or transferring the heat via a heat exchanger. B. System Standards: 1. Electrical: a. All utilities shall be installed underground. b. An exterior utility disconnect switch shall be installed at the electric meter serving the property. c. Solar energy systems shall be grounded to protect against natural lightning strikes in conformance with the national electrical code as adopted by the city. d. No solar energy system shall be interconnected with a local electrical utility company until the utility company has reviewed and commented upon it. The interconnection of the solar energy system with the utility company shall adhere to the national electrical code as adopted by the city. 2. Maximum Area: Ground mounted solar energy systems shall be limited to a maximum area of one hundred twenty (120) square feet. 3. Color: All roof mounted solar energy systems shall use colors that are the same or similar with the color of the roof material of the building on which the system is mounted. C. Location: 1. Roof mounting: a. The solar energy system shall comply with the maximum height requirements of the applicable zoning district. b. The solar energy system shall not extend beyond the perimeter of the exterior walls of the building on which it is mounted. 2. Ground mounting: a. The solar energy system shall only be located in the rear yard as defined by this title. b. The solar energy system shall comply with the maximum height requirements for accessory buildings for the applicable zoning district. c. All components of the solar energy system shall be set back a minimum of five feet (5') from interior side lot lines and ten feet (10') from rear lot lines. d. Solar energy systems shall not encroach upon drainage and utility easements. D. Screening: Solar energy systems shall be screened in accordance with the requirements of section 11 -21 -13 of this title to the extent possible without affecting their function. E. Certification: The solar energy system shall be certified by Underwriters Laboratories, Inc., and comply to the requirements of the international building code. F. Abandonment: Any solar energy system which is inoperable for twelve (12) successive months shall be deemed to be abandoned and shall be deemed a public nuisance. The owner shall remove the abandoned system at their expense after obtaining a demolition permit. G. Building Permit: A building permit shall be obtained for any solar energy system prior to installation. (Ord. 867, sec. 81, 5 -17 -2010) 11- 21 -13: SCREENING OF MECHANICAL EQUIPMENT: 4tl 0 All rooftop and ground mounted mechanical equipment of residential buildings having five (5) units or more and of nonresidential buildings shall comply with the following standards: A. All rooftop and ground mounted mechanical equipment shall be screened so as to mitigate noise in compliance with section 11 -16 -25 of this title. B. All rooftop and ground mounted mechanical equipment shall be designed (including exterior color) and located so as to be aesthetically harmonious and compatible with the building. Screening of and landscaping around the equipment may be required where the design, color, and location of the equipment are found to not effectively buffer noise or provide aesthetic harmony and compatibility. Screening shall be constructed of durable materials which are aesthetically compatible with the structure and which may be an integral part of the structure. Applicable requirements for access to the equipment shall be observed in the design and construction of the screening. C. Rooftop mechanical equipment less than three feet (3') in height may be exempt from screening requirements by the zoning administrator. (Ord. 674, sec. 1, 7 -17 -2000) 11- 16 -26: NOISE: 4b 0 Noises emanating from any use shall be in compliance with and regulated by the Minnesota pollution control agency in accordance with Minnesota statutes and rules, but in no case shall noise emanations constitute a nuisance as defined and regulated by this code. (Ord. 897, 12 -3 -2012) Rosemount 1 -2 -12: ALTERNATIVE ENERGY SYSTEMS: Z 0 A. Purpose And Intent: It is the goal of the city council, as expressed in the comprehensive plan, for Rosemount to become a more sustainable community by encouraging activities that conserve energy and result in less /no pollution output such as alternative energy sources. In accordance with that goal, the city finds that it is in the public interest to encourage alternative energy systems that have a positive impact on energy production and conservation while not having an adverse impact on the community. Therefore, the purposes of this section include: 1. To promote rather than restrict development of alternative energy sources by removing regulatory barriers and creating a clear regulatory path for approving alternative energy systems. 2. To create a livable community where development incorporates sustainable design elements such as resource and energy conservation and use of renewable energy. 3. To protect and enhance air quality, limit the effects of climate change and decrease use of fossil fuels. 4. To encourage alternative energy development in locations where the technology is viable and environmental, economic and social impacts can be mitigated. B. Definitions: The following words, terms and phrases, when used in this title, shall have the meanings ascribed to them in this section: ALTERNATIVE ENERGY SYSTEM: A ground source heat pump, wind or solar energy system. COMMUNITY SOLAR GARDEN: A solar electric (photovoltaic) array that provides retail electric power (or a financial proxy for retail power) to multiple community members or businesses residing or located off site from the location of the solar energy system, under the provisions of Minnesota statutes 216B.1641 or successor statute. PHOTOVOLTAIC SYSTEM: An active solar energy system that converts solar energy directly into electricity. SOLAR COLLECTOR: A device, structure or a part of a device or structure for which the primary purpose is to capture sunlight and transform it into thermal, mechanical, chemical, or electrical energy. SOLAR ENERGY: Radiant energy received from the sun that can be collected in the form of heat or light by a solar collector. SOLAR ENERGY SYSTEM: A device or structural design feature, a substantial purpose of which is to provide daylight for interior lighting or provide for the collection, storage and distribution of solar energy for space heating or cooling, electricity generation or water heating. SOLAR ENERGY SYSTEM, ACTIVE: A solar energy system whose primary purpose is to harvest energy by transferring solar energy into another form of energy or transferring heat from a solar collector to another medium using mechanical, electrical, or chemical means. SOLAR ENERGY SYSTEM, BUILDING INTEGRATED: A solar energy system that is an integral part of a principal or accessory building, replacing or substituting for an architectural or structural component of the building. Building integrated systems include, but are not limited to, photovoltaic or hot water solar energy systems that are contained within or substitute for roofing materials, windows, skylights, awnings and shade devices. SOLAR ENERGY SYSTEM, GRID INTERTIE: A photovoltaic solar energy system that is connected to an electric circuit served by an electric utility company. SOLAR ENERGY SYSTEM, GROUND MOUNTED: A freestanding solar system mounted directly to the ground using a rack or pole rather than being mounted on a building. SOLAR ENERGY SYSTEM, OFF GRID: A photovoltaic solar energy system in which the circuits energized by the solar energy system are not electrically connected in any way to electric circuits that are served by an electric utility company. SOLAR ENERGY SYSTEM, PASSIVE: A system that captures solar light or heat without transforming it to another form of energy or transferring the energy via a heat exchanger. SOLAR ENERGY SYSTEM, ROOF MOUNTED: A solar energy system mounted directly or abutting the roof of a principal or accessory building. SOLAR FARM: A commercial facility that converts sunlight into electricity, whether by photovoltaic (PV), concentrating solar thermal devices (CST), or other conversion technology, for the principal purpose of wholesale sales of generated electricity. SOLAR HOT WATER SYSTEM (Also THERMAL SYSTEM): A system that includes a solar collector and a heat exchanger that heats or preheats water for building heating systems or other hot water needs, including residential domestic hot water and hot water for commercial processes. SOLAR RESOURCE: A view of the sun from a specific point on a lot or building that is not obscured by any vegetation, building, or object for a minimum of four (4) hours between the hours of nine o'clock (9:00) A.M. and three o'clock (3:00) P.M. standard time on any day of the year. C. Solar Energy Systems: The following standards apply to solar energy systems, subject to standards of the applicable zoning district in which they are located. 1. Exemptions: Passive or building integrated solar energy systems are exempt from the requirements of this section and shall be regulated as any other building element. 2. Uses: Roof mounted solar energy systems are an accessory use in some districts. Ground mounted solar energy systems are an accessory use in the agricultural, residential, PI - public and institutional, and industrial districts. Community solar gardens or solar farms as defined in this section are an interim use in the following zoning district outside the metropolitan urban service area (MUSA): AG - agricultural, PI - public and institutional, LI - light industrial, GI - general industrial and HI - heavy industrial. 3. Setbacks: Roof mounted solar energy systems shall comply with the setbacks requirement for the applicable zoning district and structure type (principal or accessory) on which they are mounted and may encroach those setbacks per subsection 11-5 - 2C1a, "Special Structural Elements ", of this title. Ground mounted solar energy systems shall comply with the accessory structure setback standards for the applicable zoning district in which they are located. Community solar gardens or solar farms shall comply with the principal structure setback standards for the applicable zoning district in which they are located. 4. Height: Roof mounted solar energy systems shall comply with the height standards of the applicable zoning district. Roof mounted solar energy systems may be mounted at an angle to the roof to improve their efficiency; however, the highest point of a solar panel in any residential district shall not be more than three feet (3'), measured in a straight line, above the roof upon which the panel is mounted. This three foot (3') height limitation does not apply to roof mounted solar energy systems located in nonresidential districts or on nonresidential uses. Ground mounted solar energy systems shall not exceed fifteen feet (16) in height. 5. Aesthetics: Roof mounted solar energy systems shall be designed to blend into the architecture of the building, provided that design considerations shall not diminish energy production. The color of the solar collector is not required to be consistent with other roofing materials. Reflection angles from collector surfaces shall be oriented away from neighboring windows. Where necessary, screening may be required to address glare. 6. Screening: Roof mounted solar energy systems located in nonresidential districts or on nonresidential uses shall be screened in accordance with the requirements of section 11 -2 -5 of this chapter and the screening requirements of the applicable zoning district to the extent possible without reducing their efficiency. Ground mounted solar energy systems, community solar gardens or solar farms shall be screened from view of the public right of way to the extent possible without reducing their efficiency by setback, berming, landscaping, walls or a combination thereof. 7. Coverage: Roof mounted solar energy systems shall not cover more than eighty percent (80 %) of the south facing or flat roof upon which the panels are mounted and shall be set back a minimum of one foot (1') from the edge of the roof. The surface area of ground mounted systems shall not exceed the maximum lot coverage standard of the applicable zoning district. 8. Feeder Lines: All power lines shall be placed underground within the interior of each parcel. 9. Compliance With Building Code: All active solar energy systems shall meet approval of local building code officials, consistent with the state of Minnesota building code, and solar thermal systems shall comply with HVAC related requirements of the energy code. 10. Compliance With State Electric Code: All photovoltaic systems shall comply with the Minnesota state electric code. 11. Compliance With State Plumbing Code: Solar thermal systems shall comply with applicable Minnesota state plumbing code. 12. Certifications: Solar electric system components shall be certified by Underwriters Laboratories, Inc., and solar thermal systems shall be certified by the Solar Rating And Certification Corporation, or other appropriate certification(s) as determined by the city. The city reserves the right to deny a building permit for proposed solar energy systems deemed to have inadequate certification. 13. Utility Connection: All grid intertie systems shall have an agreement with the local utility prior to the issuance of a building permit. A visible external disconnect must be provided if required by the utility. Off grid systems are exempt from this requirement. 14. Abandonment: If the solar energy system remains nonfunctional or inoperative for a continuous period of one year, the system shall be deemed to be abandoned and shall constitute a public nuisance. The owner shall remove the abandoned system at their expense after a demolition permit has been obtained. Removal includes the entire structure including transmission equipment. 15. Permits: No solar energy system shall be erected, altered, improved, reconstructed, maintained or moved in the city without first securing a permit from the city. Community solar gardens or solar farms as defined in this section shall also require an interim use permit. 16. Deviations: Deviations from the required standards for a solar energy system may be addressed though a variance. (Ord. B -231, 3 -4 -2014) • F A 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV TO: CC: FROM: SUBJECT: DATE: Mayor and City Councilmembers Jim Dickinson, City Administrator Dave Carlberg, Community Develc Brett Angell, Associate Planner Discuss Animal Regulations - Planning February 23, 2016 INTRODUCTION The City of Andover recently was contacted by a resident regarding a neighboring property which keeps chickens. The report stated that during the warmer weather months, the chickens are often allowed to roam freely across property lines and onto the adjacent roadways and properties. Upon research of the Andover City Code, there are no ordinances that currently restrict animals, beyond cats and dogs, from running at large. A courtesy letter was sent to the property with chickens on February 8, 2016, asking the property owners to ensure any poultry are not allowed to roam beyond property lines. RESEARCH City staff is currently researching the animal regulations for the cities of Blaine, Eagan, Eden Prairie, Lakeville and Rosemount to see how each city regulates animals. Upon review of each city, the regulations vary in terms of the types of animals regulated and what requirements must be met for each animal. ACTION If requested by the City Council, staff will look to create a new section of the City Code in regards to the general care of animals. The new section of the code will likely be placed under Title 5: Police Regulations, Chapter 1: Animal Control and Article E: Care of Animals (5 -IE). A copy of a draft ordinance is attached. Respectfully, Brett Angell Attachments: Draft Ordinance ARTICLE E. CARE OF ANIMALS SECTION 5 -1 E -1: General Provisions 5 -1 E -2: Animal Restraint 5 -1 E -3: Nuisances 5 -1 E -4: Violation; Penalty 5 -1 E -1: General Provisions: A. Animals kept within the City shall be properly cared for by a person of sufficient age, knowledge and experience to adequately and safely care for and control the animal(s). B. No owner of any animal shall fail to provide with: 1. Sufficient food, potable water, or proper diet appropriate for its species. 2. Proper shelter and protection from the weather appropriate for its species. 3. Veterinary care when needed to prevent suffering and maintain the normal health of the animal. 4. Humane care and treatment. C. No person shall: 1. Abandon any animal anywhere within the city. 2. Beat, treat cruelly, torment or otherwise abuse any animal. 3. Cause or permit any animal fights. 4. Leave any animal unattended in a standing or parked motor vehicle in a manner that endangers the animal's health or safety. 5 -1 E -2: Animal Restraint: A. No person owning or keeping an animal may permit the animal to run at large or enter upon the premises of another without permission, nor may any such animal be kept raised or permitted to go on any street, park, lake or public pond area without proper restraint. B. Animals which are permitted to roam and /or graze about a property must have a suitable fencing system in place so as to restrain the animals from roaming and /or grazing to the property of the person keeping or maintaining the animals. 1. The fence shall be of sufficient type so as to effectively control the animals therein and to prevent an animal from crossing the boundaries established by the fence. 2. Such a fence shall also be in compliance with all fencing regulations as set forth in City Code Title 12 Chapter 7. 5 -1 E -3: Nuisances: A. No person shall keep or harbor any animal in any unsanitary place or condition, or in a manner that results in noisome odors or that annoys others by barking, crying, howling, fighting or other similar noises. B. No person shall feed animals in a manner that attracts wild animals, causes property damage, allows for excessive amounts of feed to accumulate, or poses a public health threat. C. Property owners are required to clean all feces from their property as often as necessary to prevent contamination to animals or humans and to avoid nuisances from odors and breeding of insects, but in no case less than weekly. 5 -1 D -3: VIOLATION; PENALTY: Any person who shall violate any provision of this article shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished as defined by state law. • ,.� � _ 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV TO: FROM: SUBJECT: DATE: Mayor and Council Members Jim Dickinson, City Administrator Discuss Four Counties' Metro Governance Proposal February 23, 2016 ACTION REQUESTED The Council is requested to discuss the attached Four Counties' Governance Proposal that was recently distributed to individual City Council Members and then provide direction to City Administration on how the Andover City Council would like to respond /react. DISCUSSION Attached to this staff report is what was distributed to individual Council Members via the Anoka County Board of Commissioners Chair, Rhonda Sivarajah on behalf of the Four Counties. Included is: 1. Cover letter 2. Template Resolution: Supporting Principles for Reform of the Metropolitan Council 3. Twin Cities' Local Government Coalition - Statement of Objectives & Principles 4. Frequently Asked Questions: Metropolitan Council Reform Principles Within the documents provided by the Four Counties', a reference is made to the Metro Cities Policy position. The City of Andover is a member of Metro Cities, Council Member Knight is on the Metro Cities Board and I am the Current Chair of the Metropolitan Agencies Committee. I have attached the Metro Cities Metropolitan Agencies legislative policy (in particular review 4- B Regional Governance Structure) for your reference and have also include a recent email distributed to Metro Cities members from Metro Cities Executive Director, Patricia Nauman that responds to the Four Counties Proposal. The last attachment is the North Metro Mayors Association 2016 Legislative Action Plan, the Governance section of this document identifies the North Metro Mayor's Association legislative position on Metropolitan Council Governance. ed, Rhonda Sivaralah Chair. District #6 Anoka County COUNTY ADMINISTRATION Respectful, Innovative, Fiscally Responsible February 8, 2016 Dear Council Member: We are part of a coalition of county and city leaders from the suburban metropolitan area who have become increasingly concerned with a lack of accountability from the Metropolitan Council, especially as its scope of authority and involvement in regional issues continue to expand. It is our belief that an updated Metropolitan Council governance structure, one that makes the Council accountable to the regional constituency of those impacted by its decisions, would benefit this region greatly. We seek your support for the attached principles for reform that would increase local participation and collaboration to help guide orderly growth and economic development in our region. We ask that you adopt the attached resolution calling for substantive change to the Council. Structure Limits Local Representation Metropolitan Council members are non - elected individuals answerable only to the Governor, an office that has often been elected without majority support from metropolitan -area voters. We believe the Council, which has the ability to levy taxes on metropolitan-area residents, should be answerable to the citizens and taxpayers of the area it represents rather than a single officeholder and should feature strong county representation and representation from other local elected officials. This call for reform echoes the 2011 conclusion of the nonpartisan Office of the Legislative Auditor. In the evaluation report Gournance of'Transit in the Twin Cities Region, Legislative Auditor Nobles recommended a Council with a mix of gubernatorial appointees and elected officials from the region. Substantial Changes in Role of Council Since 1967 The Metropolitan Council was established in 1967 to provide regional planning services for the Twin Cities area. However, at the same time the Council's management of growth, and in particular its coordination of regional services, has changed dramatically. The Council's scope has increased, but not its level of accountability to the local governments and citizens of the metropolitan area. Many citizens and local government officials feel disconnected from the present Metropolitan Council, undermining its credibility and preventing it from functioning as an effective regional governance body. In closing, we hope you will join us in our call for reform by adopting the attached resolution with principles to strengthen regional planning and development. We welcome the opportunity to meet with you and your colleagues to present this and discuss further. Please contact Claire Pritchard at 651- 438 -4540 (or at Claire.Pritchard(a co.dakota.mn.us) for more information or to schedule a presentation by an elected official to votu Council or Board. We look forward to working with you in this effort to unite the region for continued growth and prosperity. Please make every effort to return the adopted resolution to Claire.Pritchard@co.dakota.mn.us by Tuesday, March 8, or as early as possible given your approval process. Sincerely, Rhonda Sivarajah, Chair Brian Kirkham e Reinert Anoka County Board of Commissioner Bethel City Council Mayor, Lino Lakes Government Center A 2100 31d Avenue, Suite 700 ♦ Anoka. MN 55303 -5024 ♦ www.anokacounty.us Office: 763- 323 -5700 ♦ Fax: 763- 323 -5682 . TDDrF Y: 763- 323 -5289 Affirmative Action / Equal Opportunity Employer TEMPLATE RESOLUTION: Supporting Principles for Reform of the Metropolitan Council WHEREAS, regional planning and local government cooperation is vital to the continued success of the Minneapolis -St. Paul Metropolitan Area; and WHEREAS, the Metropolitan Council is, by statute, the regional planning agency for the Minneapolis -St. Paul Metropolitan Area, with broad authority, including the ability to levy taxes, charge fees and set regional policy; and 50 WHEREAS, cities and counties are the entities most directly affected by policies and financial decisions of the Metropolitan Council, making them the primary constituents of the Metropolitan Council; and WHEREAS, the Metropolitan Council's scope of authority and involvement in regional issues has expanded significantly over the years; and WHEREAS, a governmental entity, particularly one with taxing authority, to be effective, must be credible, and responsive and accountable to those it represents; and WHEREAS, the appointment of Metropolitan Council members resides solely with the Governor, effectively making the Governor the primary constituent of the Metropolitan Council; and WHEREAS, many cities and counties believe that the Metropolitan Council lacks accountability and responsiveness to them as direct constituents; and WHEREAS, many cities and counties believe that the authority to impose taxes and set regional policy should be the responsibility of local government elected officials; and WHEREAS, reform is necessary to ensure that the Metropolitan Council is an effective, responsive, and accountable partner for regional development and progress. NOW, THEREFORE, BE IT RESOLVED, That the Metropolitan Council, due to its taxing and policy authority, should be accountable to a regional constituency of those impacted by its decisions; and BE IT FURTHER RESOLVED, That the Metropolitan Council should not operate as a state agency answerable to only one person, the Governor, as it does in its current form; and BE IT FURTHER RESOLVED, That the supports reform of the Metropolitan Council that adheres to the following principles: A majority of the members of the Metropolitan Council shall be elected officials, appointed from cities and counties within the region; II. Metropolitan cities shall directly control the appointment process for city representatives to the Metropolitan Council; III. Metropolitan counties shall directly appoint their own representatives to the Metropolitan Council; IV. The terms of office for any Metropolitan Council members appointed by the Governor shall be staggered and not coterminous with the Governor; V. Membership on the Metropolitan Council shall include representation from every metropolitan county government; VI. The Metropolitan Council shall represent the entire region, therefore voting shall be structured based on population and incorporate a system of checks and balances. 1 C4) Metropolitan Governance Reform Twin Cities' Local Government Coalition - Statement of Objectives- A coalition of local governments throughout the metropolitan area has joined together to develop a position statement and a set of principles for improving metropolitan governance in the Twin Cities. The Coalition supports the need for regional planning, collaboration and coordination, but seeks to expand local government representation on the Metropolitan Council. The Coalition's objectives for its collective effort to improved governance are: 1. To articulate a vision of responsive and effective metropolitan governance —as represented by a Statement of Belief and Principles for Reform of the Metropolitan Council 2. To align local government interests behind a reform effort — through formation of a broad coalition of metropolitan Cities and Counties —and a common position. 3. To be prepared for any efforts— legislative and otherwise —to reform the governance structure and functioning of the Metropolitan Council. Attached is the Coalition's Statement of Belief and Principles for Reform. Twin Cities' Local Government Coalition Principles for Metropolitan Council Reform The following principles were developed by a coalition of cities and counties in the metropolitan area, a coalition created to advocate for reform of the Metropolitan Council. The group believes that an effective Metropolitan Council should reflect the following principles, which were developed based on the group's core Statement of Belief (printed below). STATEMENT OF BELIEF: The Metropolitan Council, due to its taxing and policy authority, should be accountable to a regional constituency of those impacted by its decisions. It should not operate as a state agency —as it does in its current form — answerable to only one person, the Governor. Principles for Metropolitan Council Reform: I. A majority of the members of the Metropolitan Council shall be elected officials, appointed from cities and counties within the region. II. Metropolitan cities shall directly control the appointment process for city representatives to the Metropolitan Council. III. Metropolitan counties shall directly appoint their own representatives to the Metropolitan Council. IV. The terms of office for any Metropolitan Council members appointed by the Governor shall be staggered and not coterminous with the Governor. V. Membership on the Metropolitan Council shall include representation from every metropolitan county government. VI. The Metropolitan Council shall represent the entire region, therefore voting shall be structured based on population and incorporate a system of checks and balances. FA O Background and Justification of Position 0 The Metropolitan Council was created to provide for the orderly and economic development of the Twin Cities metropolitan area. It has the responsibility and authority to guide the region's growth and to provide important regional services. The Counties of Anoka, Carver, Dakota, and Scott support the concept of a regional approach, and have no wish to abolish the Council or diminish the importance of regional collaboration. However, the Council's management of growth, and in particular the coordination and delivery of regional services has changed dramatically. At the same time, the role of counties has evolved. Increasingly, Counties have undertaken direct provision of regional services including: hazardous and solid waste management, transit funding and transitway development, regional parks, regional highways, water resources planning and watershed management, greenway and bikeway development, farmland and open space preservation, the regional library system, fiber communications networks, and the 800 MHz radio network. The Council's recent focus on reducing poverty and disparities makes it even more essential that within the governance structure there is understanding and improved coordination with county programs-- - which exclusively provide economic assistance, social services, workforce development /employment, counseling, public health, nutrition and family "home visiting" services, workforce and specialized housing programs and many other anti - poverty and human services. In these and many other circumstances, the State, Metropolitan Council and city governments have all looked to counties to provide both the financial and political leadership needed to address key regional issues. Thus, while a strong regional approach is necessary for many issues, it is necessary for the regional governing body to feature strong county representation, as well as representation from other local elected officials. Currently, the members of the Council are non - elected individuals answerable only to the Governor, an office that has often been elected without majority support from metropolitan -area voters. The Council, which has the ability to levy taxes on metropolitan -area residents, should be answerable to the citizens and taxpayers of the area it represents rather than a single officeholder. The best way to ensure that the interests of citizens of the metropolitan -area are represented is to have a preponderance of locally elected officials on the Council -- individuals that do not serve exclusively at the pleasure of the Governor. This will have the added benefit of allowing the Council to meet federal guidelines to serve as the region's Metropolitan Planning Organization, a move encouraged by Federal Transit Administration (FTA) and Federal Highway Administration (FHA) to make the Council "more directly accountable to its publics." Regional governance is vital to the metropolitan area's continued success. However, in order for a regional body to be effective it must be credible, meaning that regional citizens must feel that the body effectively represents their goals and values. Citizens currently feel disconnected from the Metropolitan Council, preventing it from functioning as an effective regional governance body. The coalition of suburban counties is working to join the Metropolitan Council with the people it represents, so the region as a whole can unite for continued growth and prosperity. 'Letter from representatives of FTA and FHA to Ann R. Goering of Ratwik, Roszak, & Maloney, P.A., Aug-3 2015 3 FREQUENTLY ASKED QUESTIONS: METROPOLITAN COUNCIL REFORM PRINCIPLES 1) Why now? Reform of the Metropolitan Council has been an issue on the minds of many local governments for many years. However, political realities have created obstacles that thwarted many previous attempts at reform. The release of ThriveMSP2040 reinvigorated the drive for reform in many cities and counties who were unhappy with aspects of the plan. However, our call for change is not a reaction to the specifics of the plan, or to how it allocates resources. Instead, the experience drove home what little incentive the Council has to take into account the opinions of local governments. Councilmembers do not answer to the local constituency, but rather to a constituency of one: the Governor. We realized this was the core problem, and the release of Thrive2040 was the catalyst that renewed our efforts to build a coalition for governance reform. 2) Who makes up the coalition? The coalition originated with officials from Anoka, Carver, Dakota, and Scott Counties, who share a collective opinion that the Metropolitan Council must be more accountable to the regional constituency. They made the decision to develop principles for reform, and, knowing it was important to have the perspective of cities represented as well, invited certain city officials with interest in reform to join the group. The city officials (listed in Attachment A) represent themselves alone, and do not necessarily represent the views of their entire councils. Together this group developed a mutually- agreed -upon set of principles for reform. 3) You're asking cities to adopt these principles, knowing that they go against the position of Metro Cities. Doesn't this undermine the work of the Metro Cities organization? We believe that Metro Cities plays a vital role in advocating for city interests, and we did invite them to play a part in the development of the shared principles. However, they ultimately decided to withdraw from the group due the incompatibility of our positions. We had hoped to work together toward reform, and we hope to work together in the future if the position of the organization changes. However, in the meantime we are aware of many cities with positions on Metropolitan Council reform that contradict the official Metro Cities position, and we believe that those cities should have their voices heard in the Legislature. 1 4) What are the next steps? These draft principles have been distributed to every city and county in the metropolitan area, and we hope to have as many as possible adopt these principles. We are happy to discuss the principles, along with our reasons for wanting reform, with any Board or Council in the area. During the Legislative Session we will present these adopted resolutions to Legislators to illustrate how important reform is to local governments in the metro -area, and we will work with Legislators to advance reform proposals that meet the adopted principles. 5) How do other cities do it? Every other major metropolitan area's regional planning organization (see Attachment B), as well as every other regional planning organization in Minnesota, is made up of a majority of local elected officials. 6) Is this an effort to get rid of the Metropolitan Council? Absolutely not. Regional governance is important, but it would be more effective and credible with local representation. In the current system, Metropolitan Council members are non- elected individuals answerable only to the Governor, an office that has often been elected without majority support from metropolitan -area voters. The Council, which has the ability to levy taxes on metropolitan -area residents, should be answerable to the citizens and taxpayers of the area it represents rather than a single officeholder and should feature strong county representation from local elected officials. 7) Is this a reaction to the ThriveMSP2040 plan? No. Many cities and counties were unhappy with aspects of the Council's plan. However, our call for reform is not a reaction to the specifics of the plan, or to how it allocates resources. Instead, the experience drove home to many what little incentive the Council has to take into account the opinions of local governments. The Council does not answer to the local constituency, but rather to a constituency of one- the Governor. We realized that this was the core problem, and the release of Thrive2040 was the catalyst to renew our efforts to build a coalition for governance reform. 8) Is there other support for this? Yes, many other entities and organizations have come out in support for reform. In 2011, for example, the Office of the Legislative Auditor released a report recommending that the Metropolitan Council be composed of a majority elected officials, citing the Council's "limited credibility" due to a governance structure that limits accountability. 04 1� The City of Minneapolis also passed a resolution on January 14, 2011, asking the Legislature to reform the Council so that a "majority of council members shall be locally elected city and county officials." Furthermore, representatives of the Federal Highway Administration and Federal Transit Administration, responsible for certifying the Council as eligible to receive federal transportation and transit funding, have encouraged reform of the Council to make it "more directly accountable to its public." 9) Would these principles turn the Metropolitan Council into a Council of Governments (COG)? No. Councils of Governments have little authority beyond transportation planning and regional coordination of service. The level of authority that the Legislature has granted the Metropolitan Council, including the authority to levy taxes, is unique. None of the proposed principles diminish Council authority in any way, and will not transform the Council into a COG. 10) Do you oppose the Governor? No. This is not a partisan issue- we would feel the same way whether the Governor was a Republican or a Democrat. What troubles us is that the entire membership and focus of the Council can shift depending on who is in power. The Council should represent the interests of the region, not a single individual. 11) Is this about the suburbs complaining? No. This is about ensuring that the entire region feels represented by the Metropolitan Council. 12) Is the Met Council accountable to their constituents? No. Although the Met Council has the power to levy taxes on metropolitan area residents, it is not accountable to those residents and is instead solely accountable to the Governor, an individual that over the last five election cycles was only once elected with majority support from metro -area voters. 3 lo. QUESTIONS ABOUT THE PRINCIPLES THEMSELVES: 13) Aren't local elected officials too busy to serve on the Council? There is a time commitment to serving on the Council, true, but it is only a part-time engagement. Many current Metropolitan Council members hold other full -time jobs. Furthermore, local elected officials serve on the metropolitan planning organizations of every other large city in the country. If these principles are enacted it will be part of cities and counties' role to ensure that those appointed to the Council are comfortable with the time commitment. 14) Isn't it a conflict of interest to ask an official elected by one specific city or county to represent an entire region? Local elected officials already serve in many capacities where they must consider regional interests. The Council's Transportation Advisory Board, for example, which recommends allocation of transportation and transit funding throughout the region, is made up of majority of local elected officials. The Counties Transit Improvement Board and the Metropolitan Mosquito Control District Board are two other examples where local elected officials serve and represent the interests of an entire region. Even the structure of County Boards and City Councils requires local elected officials to represent the interests of the entire city /county, rather than the specific district that elected them. 15) What happens if a local elected official leaves office in the middle of his /her Metropolitan Council appointment? We purposely made these principles high - level. We do not want to get into the details of a specific plan; that is the job of the Legislature. These issues will be considered as a plan develops. 16) What about the criticisms of the role of the Council? These principles don't address any of that. True, and many of us do have thoughts on the role of the Council. However, we believe that the first step is to reform the governance of the Council. Once the Council is accountable to its metropolitan constituency we can consider the role that it should play in the region's future. 17) You mention a system of voting and checks and balances- can you elaborate? We purposely made these principles high - level. We do not want to get into the details of a specific plan; that is the job of the Legislature. However, we do believe that the Council should represent all citizens in the area, without allowing the large urban core to drive all decision making. 4 ATTACHMENT A: PARTICIPANTS IN THE METROPOLITAN GOVERNANCE WORKING GROUP Participating County Officials: Anoka County: Commissioner Matt Look Commissioner Scott Schulte Commissioner Rhonda Sivarajah County Administrator Jerry Soma Carver County: Commissioner Randy Maluchnik Commissioner Tom Workman County Administrator Dave Hemze Dakota County: Commissioner Chris Gerlach Commissioner Nancy Schouweiler Commissioner Liz Workman County Manager Brandt Richardson Scott County: Commissioner Mike Beard Commissioner Jon Ulrich County Administrator Gary Shelton Participating City Officials: Bethel: Burnsville: Chanhassen: Elko New Market: Jordan: Lino Lakes: Prior Lake: Rosemount: Shakopee: Councilmember Brian Kirkham Councilmember Bill Coughlin Mayor Denny Laufenburger Mayor Bob Crawford Councilmember Mike Franklin Mayor Jeff Reinert Mayor Ken Hedberg Councilmember Jeff Weisensel Mayor Bill Mars Attachment Metropolitan Planning Agencies in Large Metropolitan Areas OQ The Board includes 20 local elected officials as well as non - voting members from various San Diego Association of state and federal agencies and other organizations. Governments Summary: All voting members are local elected officials. There are no citizen members. Metropolitan Council The Council consists of 16 citizens appointed by the Governor. Summary: All voting members are citizens. There are no elected officials on the Council. The Board consists of 15 local elected officials, 4 other government representatives, and 1 citizen representative (position is currently vacant). North Jersey Transportation The 3 other government representatives are from the Port Authority, the NJ Governor's Planning Authority Authorities Unit, NJ Department of Transportation, and NJ TRANSIT. Summary: The majority of voting members are local elected officials. There is one citizen member. The Board consists of 16 local elected officials, 2 representatives of the federal government, 1 representative of state government, and 2 representatives of local organizations. Metropolitan Transportation The state representative is from the California State Transportation Agency. Commission (Oakland CA) The 1 organizations are the San Francisco Bay Conservation and Development Commission and the Association of Bay Area Governments. Summary: The majority of voting members are local elected officials. There are no citizen members. The Board consists of 30 local elected officials, 6 judges, and 1 representative of the Independent School Districts. Houston - Galveston Area Council The local elected officials represent cities and counties in the metro area, although some cities and counties are represented by judges. Summary: The majority of voting members are local elected officials. There are no citizen members. t3 Attachment Metropolitan Planning Agencies in Large Metropolitan Areas The Board consists of 9 local elected officials, 3 judges, and a non - voting member of the Texas Legislature. North Central Texas Council of The metro -area cities are represented by mayors or councilmembers; the counties are Governments represented by judges. Boston Region MPO Summary: The majority of voting members are local elected officials (although there are no county elected officials- counties are represented by judges). There are no citizen members. The Board consists of 14 local elected officials, 8 representatives from other governments and organizations, and 2 nonvoting representatives from the federal government. The elected officials are all mayors and selectmen of local towns; there are no county representatives. There are 2 representatives from regional planning organizations, as well as representatives from regional transit and transportation authorities and the Massachusetts Department of Transportation. Summary: The majority of the voting members are local elected officials. There are also no citizen members. The Board consists of 23 local elected officials, 15 citizens, and 1 non- voting representative from the Georgia Department of Community Affairs. Atlanta Regional Commission There is 1 citizen representative from each of 15 districts in the metro area, elected by the 23 public officials. Summary: All voting members are either local elected officials or are citizen members selected by local elected officials. The Council has a general assembly consisting of all elected officials from all member jurisdictions. The Assembly establishes the budget and elects representatives to the Executive Board. Puget Sound Regional Council The Executive Board consists of 30 elected officials and 2 representatives from the Washington State Transportation Commission and the Washington State Department of Transportation. Summary: All voting members are either local elected officials or are selected by local elected officials. There are no citizen members. Attachment B Metropolitan Planning Agencies in Large Metropolitan Areas The Board consists of 32 local elected officials and 2 representatives from state government. National Capital Region The 2 state representatives are legislators from the Maryland and Virginia General Transportation Planning Board Assemblies. S Summary: The majority of voting members are elected officials. There are no citizen members. The Council consists of 32 local elected officials, 4 state representatives, and 1 member of a citizen organization. The elected officials are mayors, councilmembers, etc. from metro towns, cities, and reservations. Maricopa Association of Governments There are also 2 representatives each from the State Transportation Board and the Arizona Department of Transportation. Finally, there is a representative from the Citizens Transportation Oversight Commission. Summary: The majority of voting members are local elected officials. There is one citizen member, a representative of a citizen oversight commission. The Executive Committee consists of 11 local elected officials, 3 at -large members, and representatives from the Pennsylvania Department of Economic Development, Southwestern Pennsylvania Department of Transportation, and Governor's Office. Commission Summary: The majority of voting members are local elected officials. There are 3 at -large members. The Board consists of 16 state government appointees, 24 local government elected officials and staff, and 2 attorneys. as well as a number of non - voting members. There are 4 representatives from the PA Department of Transportation and 3 from the NJ Delaware Valley Regional Department of Transportation. Planning Commission There are also 3 representatives from the PA Governor's Policy Office, 1 other PA Governor's appointee, 3 from the NJ Department of Community Affairs, and 2 appointees from the NJ Governor. Summary: The majority of voting members are either local elected officials or local government staff members. There are no citizen members. Attachment B 6 Planning Agencies in Large Metropolitan Areas The Board consists of 5 local elected officials, 3 city representatives, 1 state representative, and 7 non - voting members from various federal and state agencies. New York Metropolitan The 5 local elected officials are the County Executives of the 5 metro counties. The city Transportation Council representatives are heads of the New York City Transportation Authority, Department of Transportation, and Department of City Planning. The state representative is from the New York State Department of Transportation. Summary: The majority of voting members are local elected officials or representatives from city government. There are no citizen members. The Board consists of 7 local elected officials and 4 representatives from state Baltimore Regional departments (3 non - voting). Transportation Board A representative from the Maryland Department of Transportation has voting privileges. _ Summary: All voting members, except one, are local elected officials. _ The Council has a general assembly consisting of delegates from all local governments in the region. The Executive Committee consists of local elected officials as well as Southeast Michigan Council of representatives from community colleges and the Regional Transit Authority of Southeast Governments Michigan. Summary: The majority of voting members are local elected officials. There are no citizen members. The Board consists of appointments from each of the metro counties- the members are a combination of elected officials and representatives of nonprofits and private industry. Chicago Metropolitan Agency for There are also 2 non - voting Governor's appointees and a non - voting representative of the Planning Regional Transportation Authority. Summary: The majority of voting members are elected officials and all are appointed by local jurisdictions. There is a Citizens' Advisory Committee created by the Board. The Regional Council consists of elected local officials representing 67 districts, all members of the Los Angeles City Council and the Mayor, as well as 1 elected representative from each of the 6 counties in the district, and representatives from Southern California Association regional transportation commissions and tribal governments. of Governments Summary: The majority of voting members are local elected officials. There are no citizen members. Attachment B Metropolitan Planning Agencies in Minnesota 16 The Board consists of 15 local elected officials from Minnesota and Wisconsin, 2 citizens, and one representative from the Duluth Transit Authority. Duluth- Superior Metropolitan There are two citizen members, one representing the City of Duluth and one the City of Interstate Council Superior. Summary: The majority of voting members are local elected officials. There are two citizen representatives. _ The Board consists of 6 local elected officials as well as 2 representatives from the Grand Forks East Grand Forks Planning Commissions of the City of Grand Forks and the City of East Grand Forks. Metropolitan Planning Minnesota Transportation Alliance and St. Cloud Metro Bus. Organization Summary: The majority of voting members are local elected officials. There are no _ citizen representatives. The Board consists of 11 elected officials and 3 representatives from the Fargo and Moorhead Planning Commissions. Fargo- Moorhead Metropolitan Council Summary: All voting members are citizens. There are no elected officials on the Council. Summary: The majority of voting members are elected officials. There are no citizen _ representatives. The Board consists of 11 local elected officials as well as representatives from the Central Minnesota Transportation Alliance and St. Cloud Metro Bus. St. Cloud Area Planning Organization - Summary: The majority of voting members are elected officials. There are no citizen representatives. The Council consists of 16 citizens appointed by the Governor. Metropolitan Council Summary: All voting members are citizens. There are no elected officials on the Council. The Board consists of 16 local elected officials, including 2 representatives from school districts, and 2 citizen members. Rochester - Olmsted Council of Governments Summary: The majority of voting members are elected officials. There are two citizen representatives. La Crosse Area Planning The Board consists of 10 local elected officials. Committee Summary: All voting members are elected officials. There are no citizen representatives. Mankato /North Mankato Area The Board is made up of 6 local elected officials. Planning Organization All voting members are elected officials. There are no citizen PA f�fn Metropolitan Agencies 4 -A Goals and Principles for Regional Governance The Twin Cities metropolitan region is home to the majority of our state's population and businesses and is poised for significant growth in the next two decades. At the same time, our metropolitan region faces significant challenges and opportunities. The responses to these opportunities and challenges will determine the future success of the region and its competitiveness in our state, national and world economies. The Metropolitan Council was created to manage the growth of the metropolitan region, and cities are responsible for adhering to regional plans as they plan for local growth and service delivery. The region's cities are the Metropolitan Council's primary constituency, with regional and local growth being primarily managed through city comprehensive planning and implementation, and the delivery of a wide range of public services. To function successfully, the Metropolitan Council must be accountable to and work in collaboration with city governments. The role of the Metropolitan Council is to set broad regional goals and to provide cities with technical assistance and incentives to achieve those goals. City governments are responsible and best suited to provide local zoning, land use planning, development and service delivery. Any additional roles or responsibilities for the Metropolitan Council should be limited to specific statutory assignments or grants or authorization, and should not usurp or conflict with local roles or processes, unless such changes have the consent of the region's cities. • Metro Cities supports an economically strong and vibrant region, and the effective, efficient and equitable provision of regional infrastructure, services and planning throughout the metropolitan area. Metro Cities supports the provision of approved regional systems and planning that can be provided more effectively, efficiently or equitably on a regional level than at the local level by individual local units of government. The Metropolitan Council must involve cities in the delivery of regional services and planning and be responsive to local perspectives on regional issues, and be required to provide opportunities for city participation on Council advisory committees and task forces. 2016 Legislative Policies 37 D)gq Metropolitan Agencies The Metropolitan Council must involve cities at all steps of planning, review and implementation around the regional development guide, policy plans, systems statements, and local comprehensive plan requirements to ensure transparency, balance and Council adherence to its core mission and functions. These processes should allow for stakeholder input before policies and plans are released for comment and finalized. 4 -113 Regional Governance Structure Metro Cities supports the appointment of Metropolitan Council members by the Governor with four year, staggered terms for members. The appointment of the Metropolitan Council Chair should coincide with the term of the Governor. Metro Cities supports a nominating committee process that maximizes participation and input by local officials. Consideration should be given to the creation of four separate nominating committees, with committee representation from each quadrant of the region. Members of each committee should include three city officials, appointed by Metro Cities, one county commissioner appointed by the Association of MN Counties or a comparable entity, and three citizens appointed by the Governor. At least three of the local officials should be elected officials. Metro Cities supports the appointment of Metropolitan Council members who have demonstrated the ability to work with cities in a collaborative manner and commit to meet with local government officials regularly, and who understand the diversity and the commonalities of the region, and the long -term implications of regional decision - making. 4 -C Comprehensive Analysis of Metropolitan Council Our region will continue to expand while simultaneously facing significant challenges around the effective, efficient and equitable provision of resources and infrastructure, Metro Cities believes that a comprehensive analysis of the Metropolitan Council is timely and appropriate, to assure that the region is equipped to address the future needs of a rapidly changing and growing metropolitan region. Metro Cities supports an objective, forward thinking analysis of the Metropolitan Council that includes the Council's authority, activities, services, and its geographical jurisdiction, and includes analysis of whether the Council is positioned to be effective in the coming decades. 4 -D Oversight of Metropolitan Council Metro Cities supports the bipartisan Legislative Commission on Metropolitan Government, or another entity, to monitor and review the Metropolitan Council's activities and to provide transparency and accountability of the Metropolitan 38 2016 Legislative Policies Metropolitan Agencies Council operations and functions. The Metropolitan Council should examine its scope of services to determine their benefit and efficiency, and be open to alternative methods of delivery to assure that services are provided at high levels of effectiveness for the region. 4 -E Funding Regional Services The Metropolitan Council should continue to fund its regional services and activities through a combination of user fees, property taxes, and state and federal grants. The Council should set user fees via an open process that includes public notices and public hearings. User fees should be uniform by type of user and set at a level that supports effective and efficient public services based on commonly accepted industry standards, and allows for sufficient reserves to ensure long -term service and fee stability. Fee proceeds should be used to fund regional services or programs for which they are collected. Metro Cities supports the use of property taxes and user fees to fund regional projects so long as the benefit conferred on the region is proportional to the fee or tax, and the fee or tax is comparable to the benefit cities receive in return. 4 -F Regional Systems Regional systems are statutorily defined as transportation, aviation, wastewater treatment and recreational open space. The purpose of these regional systems and the Metropolitan Council's authority over them is clearly outlined in state statute. In order to alter the focus or expand the reach of any of these systems, the Metropolitan Council must seek a statutory change. The system plans prepared by the Metropolitan Council for the regional systems should be specific in terms of the size, location and timing of regional investments in order to allow for consideration in local comprehensive planning. System plans should clearly state the criteria by which local plans will be judged for consistency and the criteria that will be used to find that a local plan is more likely than not to have a substantial impact on or contain a substantial departure from metropolitan system plans. Additional regional systems should be established only if there is a compelling metropolitan problem or concern that can best be addressed through the designation. Common characteristics of the four existing regional systems include public ownership of the system and its components and an established regional or state funding source. These characteristics should be present in any new regional system that might be established. Water supply does not fit these criteria. Any proposed additional regional system must have an established regional or state funding source. 2016 Legislative Policies 39 a6 Metropolitan Agencies 4 -G Regional Water Supply Planning The 2005 Legislature authorized the Metropolitan Council to carry out regional planning activities to address the water supply needs of the Metro Area. A Metropolitan Area Water Supply Advisory Committee that includes state agency representatives and local officials was concurrently established to assist the Council in developing a master water supply plan that includes recommendations for clarifying the roles of local, regional and state governments, streamlining and consolidating approval processes and recommending future planning and capital investments. The Master Water Supply Plan serves as a framework for assisting and guiding communities in their water supply planning, without usurping local decision making processes. Many cities also conduct their own analyses for use in water supply planning. The extension of the committee, which includes five metro area municipal officials, allows the committee to continue to play a key role in the development and direction of water supply planning activities as the Master Plan is updated and implemented with additional information and data as they become available. As the Met Council continues its assessment of the region's water supply and issues around sustainability, the Council must work cooperatively with local policymakers and professional staff throughout the region on an on -going and structured basis, to ensure a base of information for water supply decision making that is sound, credible and verifiable, and that takes into account local information, data, cost - benefit analyses and projections before any resulting policy recommendations are issued. Metro Cities encourages the Metropolitan Council to consider the inter - relationships of wastewater treatment, storm water management and water supply. Any state and regional regulations and processes should be clearly stated in the Water Supply Plan. Further, regional monitoring and data collection benefits should be borne as shared expenses between the regional and local units of government. Metro Cities supports Metropolitan Council planning activities which address regional water supply needs and water planning activities as prescribed in statute. Metro Cities opposes the insertion of the Metropolitan Council as another regulator in the water supply arena. Metro Cities further opposes the elevation of water supply to "Regional System" status, or the assumption of Met Council control and management of municipal water supply infrastructure. Metro Cities supports new laws that expand municipal representation on the water supply advisory committee, creates a technical advisory committee with municipal officials, and eliminates the requirement that city comprehensive plans be consistent with the regional water supply plan. These changes will strengthen input and collaboration around water supply planning, and help to ensure that sound scientific analyses and models are developed before legislative solutions to these issues are considered. 40 2016 Legislative Policies 2f Metropolitan Agencies Metro Cities supports efforts to identify capital funding sources to assist with municipal water supply projects. Any fees or taxes for regional water supply planning activities must be consistent with activities prescribed in MN Statutes 473. 1565, and support activities specifically within the region. 4 -H Review of Local Comprehensive Plans In reviewing local comprehensive plans and plan amendments, the Metropolitan Council should: • Recognize that its role is to review and comment, unless it is found that the local plan is more likely than not to have a substantial impact on or contain a substantial departure from one of the four system plans; • Be aware of the statutory time constraints imposed by the Legislature on plan amendments and development applications; • Provide for immediate effectuation of plan amendments that have no potential for substantial impact on systems plans; • Require the information needed for the Metropolitan Council to complete its review, but not prescribe additional content or format beyond that which is required by the Metropolitan Land Use Planning Act (LUPA); • Work in a cooperative and timely manner toward the resolution of outstanding issues. When a city's local comprehensive plan is deemed incompatible with the Met Council's systems plans, Metro Cities supports a formal appeals process that includes a peer review. Metro Cities opposes the imposition of sanctions or monetary penalties when a city's local comprehensive plan is deemed incompatible with the Met Council's systems plans or the plan fails to meet a statutory deadline when the city has made legitimate efforts to meet Met Council requirements; • Work with affected cities and other organizations such as the Pollution Control Agency, Department of Natural Resources, Department of Health and other stakeholders to identify common ground and resolve conflicts between respective goals for flexible residential development and achieving consistency with the Council's system plans and policies; and • Require entities, such as private businesses, nonprofits, or local units of government, among others, whose actions could adversely affect a comprehensive plan, to be subject to the same qualifications and /or regulations as the city. 2016 Legislative Policies 41 ■ Metropolitan Agencies 4 -1 Comprehensive Planning Process Metro Cities supports an examination of the comprehensive planning process to make sure that the process is streamlined and efficient, so as to assist in alleviating excessive cost burdens or duplicative or unnecessary planning requirements by municipalities in the comprehensive planning process. Metro Cities supports resources to assist cities in meeting regional goals as part of the comprehensive planning process. 4-J Comprehensive Planning Schedule Cities are required to submit comprehensive plan updates to the Metropolitan Council every 10 years, the most recent of which was due in 2008. A city's comprehensive plan represents a community's vision of how the city should grow and develop or redevelop, ensure adequate housing, provide essential public infrastructure and services, protect natural areas and meet other community objectives. Metro Cities recognizes the merit of aligning comprehensive plan timelines with the release of census data. However, the comprehensive plan process is expensive, time consuming and labor intensive for cities, and the timing for the submission of comprehensive plans should not be altered solely to better align with census data. If sufficient valid reasons exist for the schedule for the next round of comprehensive plans to be changed or expedited, cities should be provided with financial resources to assist them in preparing the next round of plans. Metro Cities opposes cities being forced into a state of perpetual planning as a result of regional and legislative actions. Should changes be made to the comprehensive planning schedule, Metro Cities supports financial and other resources to assist cities in preparing and incorporating policy changes in local planning efforts. Metro Cities supports a 10 -year time frame for comprehensive plan submissions. 4 -K Local Zoning Authority Local governments are responsible for zoning and local officials should have full authority to approve variances to remain flexible in response to the unique land use needs of their own community. Local zoning decisions, and the implementation of cities' comprehensive plans, should not be conditioned upon the approval of the Metropolitan Council or any other governmental agency. Metro Cities supports local authority over land use and zoning decisions, and opposes the creation of non -local appeals boards with the authority to supersede city zoning decisions. 42 2016 Legislative Policies (03 Metropolitan Agencies 4 -L Regional Growth The most recent regional population forecasts projects a population of 3,743,000 people by 2040. Metro Cities recognizes cities' responsibility to plan for sustainable growth patterns that integrate transportation, housing, parks, open space and economic development that will result in a region better equipped to manage population growth, to provide a high quality of life for a growing and increasingly diverse metropolitan area population and improved environmental health. In developing local comprehensive plans to fit within a regional framework, adequate state and regional financial resources and incentives, and maximum flexibility around local planning decisions are imperative. The regional framework should assist cities in managing growth while being responsive to the individual qualities, characteristics and needs of metropolitan cities, and should encourage sub - regional cooperation and coordination. In order to accommodate this growth in a manner that preserves the region's high quality of life: • Natural resource protection will have to be balanced with growth and development/reinvestment; • Significant new resources will have to be provided for transportation and transit; and • New households will have to be incorporated into the core cities, first and second -ring suburbs, and developing cities through both development and redevelopment. In order for regional and local planning to result in the successful implementation of regional policies: • The State of Minnesota must contribute additional financial resources, particularly in the areas of transportation and transit, reinvestment, affordable housing development, and the preservation of parks and open space. If funding for regional infrastructure is not adequate, cities should not be responsible for meeting the growth forecast set forth by the Metropolitan Council; • The Metropolitan Council and Legislature must work to pursue levels of state and federal transportation funding that are adequate to meet identified transportation and transit needs in the metropolitan area; • The Metropolitan Council must recognize the limitations of its authority and continue to work with cities in a collaborative, incentives -based manner; • The Metropolitan Council must recognize the various needs and capacities of its many partners, including but not limited to cities, counties, economic development 2016 Legislative Policies 43 Metropolitan Agencies authorities and nonprofit organizations, and its policies must be balanced and flexible in their approach; Metropolitan counties, adjacent counties and school districts must be brought more thoroughly into the discussion due to the critical importance of facilities and services such as county roads and public schools in accommodating forecasted growth; and Greater recognition must be given to the fact that the "true" metropolitan region extends beyond the traditional seven - county area and the need to work collaboratively with adjacent counties in Minnesota and Wisconsin, and the cities within those counties. The region faces environmental, transportation, and land use issues that cannot be solved by the seven - county metro area alone. Metro Cities supports an analysis to determine the impacts of Metropolitan Council's growth management policies and infrastructure investments on the growth and development of the collar counties, and the impacts of growth in the collar counties on the metropolitan area. 4 -M Natural Resource Protection Metro Cities supports the Metropolitan Council's efforts to compile and maintain an inventory and assessment of regionally significant natural resources for the purpose of providing local communities with additional information and technical assistance. The state and region play significant roles in the protection of natural resources. Any steps taken by the state or Metropolitan Council regarding the protection of natural resources must recognize that: The protection of natural resources is significant to a multi- county area that is home to more than 50 percent of the state's population and a travel destination for many more. Given the limited availability of resources and the artificial nature of the metropolitan area's borders, neither the region nor individual metropolitan communities would be well served by assuming primary responsibility for financing and protecting these resources; • The completion of local Natural Resource Inventories and Assessments (NRUA) is not a regional system nor is it a required component of local comprehensive plans under the Metropolitan Land Use Planning Act; The protection of natural resources should be balanced with the need to accommodate growth and development, reinvest in established communities, encourage more affordable housing and provide transportation and transit connections; and Decisions about the zoning or land use designations, either within or outside a public park, nature preserve or other protected area are, and should remain, the responsibility of local units of government. Metro Cities supports the Metropolitan Council's efforts to compile and maintain an inventory and assessment of regionally significant natural resources for the 44 2016 Legislative Policies Metropolitan Agencies purpose of providing local communities with additional information and technical assistance. The Metropolitan Council's role with respect to climate change, as identified in the 2040 regional development guide, should be focused on the stewardship of its internal operations (wastewater, transit) and working collaboratively with local governments to provide information, best practices, technical assistance and incentives around responses to climate change. Metro Cities urges the Legislature and /or the Metropolitan Council to provide financial assistance for the preservation of regionally significant natural resources. 4 -N Inflow and Infiltration (Ill) The Metropolitan Council has identified nearly half of all sewered communities in the metropolitan region to be contributing excessive inflow and infiltration into the regional wastewater system. Inflow and infiltration are terms for the ways that clear water (ground and storm) makes its way into sanitary sewer pipes and gets treated, unnecessarily, at regional wastewater plants. The number of identified communities is subject to change, depending on rain events, and any city in the metropolitan area can be affected. Another 19 cities have been identified as being near the threshold, or at risk, for contributing excessive 1/I into the system. The Metropolitan Council establishes a surcharge on cities determined to be contributing unacceptable amounts of 1/I into the wastewater system. The charge is waived when cities meet certain parameters through local mitigation efforts. Metro Cities recognizes the importance of controlling I/I because of its potential environmental and public health impacts, because it affects the size, and therefore the cost, of wastewater treatment systems and because excessive 1/I in one city can affect development capacity of another. However, there is the potential for cities to incur increasingly exorbitant costs in their ongoing efforts to mitigate excessive I /1. Metro Cities continues to monitor the surcharge program and supports continued reviews of the methodology used to measure excess 1/I to ensure that the methodology appropriately normalizes for precipitation variability and the Council's work with cities on community specific issues around I /I. Metro Cities supports state financial assistance for Metro Area M mitigation through future Clean Water Legacy Act appropriations or similar legislation and encourages the Metropolitan Council to partner in support of such appropriations. Metro Cities supports continued state capital assistance to provide grants to metro area cities for the purpose of mitigating inflow and infiltration problems into municipal wastewater collection systems. 2016 Legislative Policies 45 Metropolitan Agencies 4 -0 Service Availability Charge (SAC) Metro Cities supports a SAC program that emphasizes equity, transparency, simplification and lower rates. Metro Cities supports a "growth pays for growth" approach to SAC as recommended by a 2010 Task Force of Met Council members and city officials, and that was subsequently adopted by the Met Council. This approach requires a statutory change. If state statutes are modified to effect a "growth pays for growth" method for SAC, the Metropolitan Council should convene a group of local officials to identify any technical changes necessary for implementing the new structure. Metro Cities supports allowing the Council to utilize the SAC `transfer' mechanism provided for in state statute, when the SAC reserve fund is inadequate to meet debt service obligations. Any use of the transfer mechanism must be done so within parameters prescribed by state law and with appropriate notification and processes to allow local official input and should include a timely `shift back' of any transferred funds from the wastewater fund to the SAC reserve fund. Metro Cities supports principles for SAC recommended by a 2014 work group that examined the overall SAC program and structure. These include support for program transparency and simplicity, equity for all served communities and between current and future users, support for cities' sewer fee capacities, administrative reasonableness, and weighing any program uses for specific goals with the impacts to the program's equity, transparency and simplicity. As such, Metro Cities opposes the use of the SAC mechanism to subsidize particular Metropolitan Council goals and objectives. Metro Cities supports the Metropolitan Council providing details on how any changes to the SAC rate are determined. Metro Cities supports a periodic review of MCES' customer service policies, to ensure that its processes are responsive and transparent to communities, businesses and residents. Metro Cities supports continued outreach by MCES to users of the SAC program to promote knowledge and understanding of SAC charges and policies. 4 -P Funding Regional Parks & Open Space In the seven - county metropolitan area, regional parks essentially serve as state parks, and the state should continue to provide capital funding for the acquisition, development and improvement of these parks. State funding apart from Legacy funds should equal 40 percent of the operating budget for regional parks. Legacy funds for parks and trails should be balanced between metro and greater Minnesota. 46 2016 Legislative Policies C())-) Metropolitan Agencies 4 -0 Livable Communities The Livable Communities Act (LCA), administered by the Metropolitan Council, provides a voluntary, incentive -based approach to affordable housing development, tax base revitalization, job growth and preservation, brown field clean up and mixed -use, transit - friendly development and redevelopment. Metro Cities strongly supports the continuation of this approach, which has been widely accepted and is fully utilized by local communities. Since its inception in 1995, the LCA program has generated billions of dollars of private and public investment, created thousands of jobs and added thousands of affordable housing units in the region. Metro Cities supports a review of the LCA programs, and any necessary statutory changes, to ensure that the LCA program criteria are flexible and promote the participation of all participating communities, and to ensure that all metropolitan area cities are eligible to participate in the Livable Communities Demonstration Account (LCDA). Metro Cities supports increased funding and flexible eligibility requirements in the LCDA in order to assist communities with development that may not be exclusively market driven or market proven in their particular location and in order to support important development and redevelopment goals. Metro Cities supports the statutory goals and criteria established for the Livable Communities Act, and opposes any changes to LCA programs that constrain flexibility around statutory goals, program requirements and criteria. Metro Cities opposes funding reductions to the Livable Communities Program and the transfer or use of these funds for purposes outside of the LCA program. Metro Cities supports statutory modifications in the LCDA to reflect the linkages among the goals, municipal objectives, and Met Council system objectives. Metro Cities supports the use of LCA funds for projects in transit improvement areas, as defined in statute, as long as funding levels for general LCA programs are adequate to meet program goals and the program remains accessible to participating communities. Use of interest earnings from LCA funds should be limited to covering the costs of administering the program. Remaining interest earnings not used for program administration should be considered part of the LCA funds and used to fund grant requests from the established LCA accounts, according to established funding criteria. 4 -R Density Any Met Council density policy and density determination must take into account the impacts of market trends on city development and redevelopment activities. 2016 Legislative Policies 47 Metropolitan Agencies Metro Cities supports a reasonable Met Council density policy and density determination that bases density projections on local data, actual development patterns, is flexible and accommodates cities at various development stages. 48 2016 Legislative Policies 2R James Dickinson From: Patricia Nauman [patricia @metrocitiesmn.org] Sent: Friday, February 12, 2016 2:58 PM To: Patricia Nauman Subject: Four Counties' Metro Governance Proposal - Metro Cities Policy Position C ••�IEsT� r�••� Representatives from Dakota, Carver, Scott, and Anoka counties have sent a request to metro area city officials seeking support for their proposal to restructure the governance of the Metropolitan Council to one made up of county and city officials. Metro Cities has received requests by city officials for clarification of our policy positions on this topic. I am sending this communication so that you have an understanding of Metro Cities' policy positions and how they were generated, and Metro Cities' perspective on the four counties' proposal. Metro Cities supports the current statutory appointment process for the appointment of Metropolitan Council members by the Governor, and in contrast with current law, supports staggered terms and modifications to the selection process for Metropolitan Council members to more fully involve local officials in the selection process. Metro Cities has initiated and continues to support these legislative changes. Such changes would enhance the governance of the Council by providing more local official input into member selection and stabilize ideological shifts in Council membership. These are pragmatic changes that could reasonably be accepted by the Governor and Legislature. On the surface, the proposal by Dakota, Anoka, Scott and Carver county officials, to have the Metropolitan Council made up of local officials, would appear to be a solution to the tensions that exist between a regional level of government and local governments in the metro area. However, a 2011 Metro Cities Governance Task Force identified several problematic implications for this structure and did not recommend this model of metropolitan governance. Metro Cities subsequently has not recommended this model in its positions on the governance of the Metropolitan Council. Task force members identified several concerns, primarily related to the incompatibility of holding the offices of local official and Metropolitan Council member. Concerns centered on: • Local officials who are elected in one community and are appointed to serve other communities through Metropolitan Council membership could face actual conflicts of interest or the appearance of conflicts in determining regional investments, funding and policy. • Local officials would be serving and voting on two political subdivisions, generally considered to be incompatible functions. • The Metropolitan Council could become overly parochial and politicized, which could hamper regional planning, and service delivery effectiveness and efficiency. • Appointments to the Metropolitan Council could potentially be geographically imbalanced. • There could be an infusion of special interests and political campaigns into the selection process for Metropolitan Council members. • Local officials would serve as both the "regulator" and "regulated" party, which are generally considered to be incompatible roles. • This governance structure could result in less scope of expertise on regional issues on the Metropolitan Council. • A Metropolitan Council with this structure could be more resistant to legislative oversight. The 2011 Task Force also identified a concern about the impracticality of having sitting city officials serve as (9 Metropolitan Council members. Unlike county commissioners, most city officials are not full time mayors or city council members. The Task Force concluded that the practical result could be to narrow the pool of potential candidates from which to draw future Metropolitan Council members. Metro Cities' policies do align with the counties' proposal in support of staggered terms for Metropolitan Council members. Staggered terms would confer significant benefits for regional governance, providing more knowledge continuity on the Council, more political and philosophical diversity, and fewer possibilities for narrow policy agendas to emerge from the Metropolitan Council. Metro Cities' governance policies on the Metropolitan Council recognize the importance of a separate regional government, more input by local officials into the selection process for Metropolitan Council members, staggered terms, and a high and consistent level of collaboration and engagement between local governments. Metro Cities, through its representation of metro cities' shared interests, works to ensure that city needs are accounted for all Council functions and planning, and for local officials to have adequate input and opportunities to contribute their expertise and perspectives on regional issues. Please let me know if you would further information or if you would like to discuss these issues. I can be reached at 651- 215 -4002 or email: Patricia metrocitiesmn.org Sincerely, Patricia Nauman Executive Director Metro Cities 2 Noxth Metro 6D Mayors North Metro Mayors Association 2016 Legislative Action Plan Transportation System Improvements Transportation Funding • Work with the Minnesota Department of Transportation, legislative leadership and transportation committees, Governors administration, Metropolitan Council, Minnesota Transportation Alliance and key congressional members and staff to secure increased transportation funding as recommended by the Governors Transportation Finance Advisory Committee. North Metro Highway Construction Projects Assist Champlin to secure funding to reconstruct Trunk Highway 169 from Hayden Lake Road to the Anoka /Champlin bridge over the Mississippi River. • Assist Coon Rapids and Anoka to secure funding to construct third lanes on Trunk Highway 10 between Hanson Boulevard and 7`h Avenue in Anoka. Assist Ramsey and Anoka to secure funding to construct all recommended Trunk Highway 10 Access Planning Study improvements. Work with Maple Grove and surrounding communities, the Minnesota Department of Transportation and the Metropolitan Council to resolve area transportation system improvement issues, including completion of Trunk Highway 610. • Work with Brooklyn Center, the Minnesota Department of Transportation and the Metropolitan Council to resolve Trunk Highway 252 transportation system safety and congestion issues. Assist the North Metro 1 -35W Corridor Coalition in securing funding for implementation of recommendations of the Managed Lane Study between Minneapolis and Forest Lake. North Metro Intersection Improvement Projects Work with Blaine to support efforts to provide significant capacity enhancements to Trunk Highway 65 including upgrading major intersections along the Trunk Highway 65 corridor. Transportation Advocacy • Work to secure funding to rename Old Highway 10/ Ramsey County Road 10 roadway through Mounds View to Northtown Boulevard and install new signage. Work to secure funding for Mounds View soundwall along Trunk Highway 10 at 1 -35W. Work to secure funding for New Brighton soundwall along 1 -35W. • Support efforts to build a Trunk Highway 65 coalition. Support efforts to build a Trunk Highway 10 coalition. • Work to secure wayfinding signage on recent road improvements to assist motorists in navigating to Osseo. Obtain street /roadway improvements at Highway 169 and County Road 81 within the Osseo boundary that reflect the character of Osseo. Work to improve bike /pedestrian access between Osseo and neighboring communities. Work with Blaine and the National Sports Center to resolve traffic issues related to 105th Avenue in Blaine. Rail Crossings and Rail Safety Support funding for modernization and separation of rail - vehicle traffic as a critical matter of public safety and congestion relief in the North Metro. Fiscal Policy • Work with the NMMA legislative delegation, League of Minnesota Cities, Metro Cities, Anoka County, Ramsey County and other stakeholders to be sure the collective North Metro voice is heard and ensure that the Local Government Aid and Metro Area Fiscal Disparities programs remain intact. Advocate for NMMA perspectives in debates over comprehensive tax reform proposals. • Support opportunities for member cities' economic development and TIF initiatives. • Continue to join with other county and city organizations opposing legislation providing for a future reverse referendum if a county or city increases its property tax levy. • Support legislation creating early voting opportunities that create administrative and financial efficiencies for local governments. • Oppose the delay of the effective date for the extension of the general sales tax exemption for joint powers entities and special taxing districts. 15a� Governance • Work with the League _of Minnesota Cities, Metro Cities and other local government partners in a collaborative manner to advance key local governmental legislative objectives. Support legislation for staggered terms for Metropolitan Council members. Conduct legislative candidate forums in NMMA member city districts to inform candidates on NMMA issues and to assist voters in determining their choices. Host NMMA legislative delegation meetings early in each legislative session and as needed while working with the delegation to advance NMMA legislative goals and objectives. Engage NMMA Community Partners in legislative efforts to more effectively carry the NMMA message to elected officials and the governor's administration. Water Support efforts of the NMMA Water Work Group to establish policy positions on water issues. Engage NMMA stakeholders to endorse and promote � c • F LNDOVEA 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV TO: FROM: SUBJECT: DATE: Mayor and Councilmembers Jim Dickinson, City Administrator January 2016 General Fund Budget Progress Report February 23, 2016 INTRODUCTION The City of Andover 2016 General Fund Budget contains total revenues of $10,390,411 and total expenditures of $10,697,788 (2015 budget carry forwards will be addressed with the February 2016 report); a decrease in fund balance is planned. Monthly reporting of the City Budget progress to the Governing body is a recommended financial practice and often viewed positively by rating agencies. DISCUSSION Attached is the General Fund Revenue & Expenditure Budget Summary - Budget Year 2016 reflecting year to date actual through January 2016. The attachment provided is to assist discussion in reviewing 2016 progress; other documents may be distributed at the meeting. The following represents Administration's directives and departmental expectations that are in place again for 2016: 1. Expenditure budgets while approved, expenses are to meet with the spirit that needs are fulfilled first, expansions of service and special requests are to be reviewed with City Administration before proceeding. 2. Departments are to be committed to search for the best possible prices when purchasing goods and services. 3. Departments are to be committed to continually searching out new efficiencies and to challenge the status quo of how the City provides services. 4. Departments are to be committed to searching out collaborative opportunities to facilitate efficient and cost - effective utilization of governmental assets and personnel. 5. Departments are to be committed to developing effective, consistent and ongoing communications with City residents, businesses and other stakeholders. 6. Departments are to be cognizant that services provided are subject to available revenues and should not commit to services that are not sustainable. ACTION REQUESTED The Council is requested to receive a presentation and provide direction to staff. CM' OF ANDOVER General Fund Budget Summary Totals Budget Year 2016 2015 2016 REVENUES Budget Jan YTD % Bud YE- Unaudited Budget Jan YTD % Bud General Property Tax $ 7,706,892 $ - 0% $ 7,634,714 $ 8,113,528 $ - 0% Licenses and Permits 316,588 18,181 6°! 452,422 346,205 13,928 4% Intergovernmental 633,015 - 00% 749,571 673,248 (36,945) -5% Charges for Services 748,550 34,687 5% 749,416 767,950 28,052 4% Fines 100,750 150 0% 99,304 100,750 - 0% Investment Income 75,000 - 00/0 40,690 75,000 - 0% Miscellaneous 98,850 57,756 58% 154,889 116,800 57,811 49% Transfers In 196,930 196,930 1000. 196,930 196,930 196,930 100% Total Revenues S 9,876,575 S 307,704 3% $ 10,077,936 $ 10,390,411 $ 259,776 3% 2016 2015 EXPENDITURES Budget Jan YTD % Bud YE- Unaudited Budget Jan YTD % Bud GENERAL GOVERNMENT Mayor and Council $ 87,154 $ 31,990 37% $ 85,060 $ 88,780 $ 32,582 37% Administration 180,888 17,373 10% 172,296 192,778 18,977 10% Newsletter 26,000 5,109 20% 21,042 26,000 3,300 13% Human Resources 34,643 4,886 14% 15,909 35,260 5,171 15% Attorney 182,000 - 0% 180,313 187,640 - 0% City Clerk 135,359 17,241 13% 134,776 157,075 19,202 12% Elections 32,492 824 3% 14,496 57,919 9,698 17% Finance 245,494 37,455 15% 240,317 261,016 39,053 15% Assessing 150,000 - 0% 146,315 150,000 - 0% Information Services 172,239 9,209 5% 131,745 173,483 9,671 6% Planning & Zoning 412,937 39,400 10% 406,045 435,606 40,849 9% Engineering 470,631 45,248 10% 464,842 509,514 47,901 9% Facility Management 564,802 30,992 5% 498,815 553,201 23,347 4% Total General Gov 2,694,639 239,727 9% 2,511,971 2,828,272 249,751 9% PUBLIC SAFETY Police Protection 2,918,308 - 0% 2,918,308 2,936,467 734,117 25% Fire Protection 1,182,330 87,889 7% 1,165,221 1,284,795 111,840 9% Protective Inspection 423,161 38,605 9% 391,948 441,807 34,233 8% Civil Defense 39,189 3,941 10% 24,352 22,982 3,945 17% Animal Control 9,950 ISO 2% 3,498 7,950 - 0% Total Public Safety 4,572,938 130,585 3% 4,503,327 4,694,001 884,135 19% PUBLIC WORKS Streets and Highways 625,664 60,556 10% 629,724 650,237 59,730 9% Snow and Ice Removal 533,770 106,082 20% 442,077 563,587 86,955 15% Street Signs 203,533 14,621 7% 204,494 204,193 15,188 7% Traffic Signals 35,000 - 0% 30,169 35,000 - 0% Street Lighting 36,400 - 0% 30,664 36,400 - 0% Street Lights - Billed 216,000 - 0% 201,501 217,500 - 0% Park & Recreation 1,185,338 93,841 8% 1,151,313 1,257,247 98,462 8% Natural Resource Preservation - - 0% - 10,096 50 0% Recycling 135,120 3,950 3% 128,038 130,927 5,769 4% Total Public Works 2,970,825 279,050 9% 2,817,980 3,105,187 266,154 9% OTHER Miscellaneous 231,728 15,328 7% 221,478 31,728 - 0% Youth Services 38,600 16,000 41% 35,242 38,600 8,500 22% Total Other 270,328 31,328 12% 256,720 70,328 8,500 12% Total Expenditures $ 10,508,730 $ 680,690 6% S 10,089,998 $ 10,697,788 S 1,408,540 13% NET INCREASE (DECREASE) S (632,155) $ (372,986) S (12,062) S (307,377) $ (1,148,764) 0 J 0 TT Y TO F )OVE. 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV TO: FROM: SUBJECT: DATE: Mayor and Councilmembers Jim Dickinson, City Administrator January 2016 City Investments Review February 23, 2016 INTRODUCTION Summary reporting of the City Investment portfolio to the Governing body is a recommended financial practice and often viewed positively by rating agencies. Furthermore, the City of Andover Investment Policy recommends the Finance Director presents to the City Council at least quarterly the type of investments held by the City. DISCUSSION Attached is the Investment Maturities Summary for January 2016, the January 2016 Investment Detail Report, and the January 2016 Money Market Funds Report. These attachments are intended to assist with discussion when reviewing the January 2016 investments. ACTION REQUESTED Informational. The Council is requested to review and provide feedback to staff. tf illy submitted, A-�- Dickinson Investment Maturities - January 2016 Investment Maturities (in Years) Credit Fair Less Than More Than Investment Type Rating Value 1 1 - 5 6-10 10 Money market funds N/A $ 1,285,090 $ 1,285,090 $ $ $ MN Municipal Money Market Fund (4M) N/A 4,994 4,994 - Premier Banks Money Market Fund N/A 260,115 260,115 Certificates of deposit FDIC 11,395,018 7,385,184 4,009,834 - Local governments A /Al /A2 590,781 - 486,231 - 104,550 AAl /AA2 /AA3 7,869,628 1,171,518 4,760,195 1,417,508 520,407 AAA 3,411,017 335,184 2,548,829 527,005 - 229,262 21,686 _ - - State governments A /Al /A2 200,670 200,670 - AAI /AA2 /AA3 1,719,021 508,974 980,785 U.S. agencies AAA 760,462 403,610 335,166 AAA 3,237,623 130,807 2,481,315 400,893 224,608 FNMA REMIC N/A 7,927 - 7,927 - - U.S. agencies N/A 1,151,224 1,151,224 - Total investments $ 31,893,570 $ 11,686,146 $ 16,761,505 $ 2,596,353 $ 849,565 Deposits 2,385,152 Total cash and investments $ 34,278,722 January 2016 Investment Detail Description Cusip Number Credit Rating /F DIC # Type Purchase Price Carrying Cost Maturity Amount Interest Rate Current Market Value Interest Paid Date Acquired Coupon Date Maturity I Due Date Pacific Western Bank 69506YCG2 24045 CD 249,000.00 249,000.00 249,000.00 0.400% 248,980.08 maturity maturity 03/06/15 12/09/15 none none 03/04/16 03/09/16 First National Comm Bank 32107NBS2 7472 CD 248,000.00 248,000.00 248,000.00 0.350% 247,942.96 Beal Bank 07370WNF9 32574 CD 249,000.00 249,000.00 249,000.00 0.400% 248,975.10 maturity 03/11/15 none 03/09/16 Bank ofBaroda New York 06062QFQ2 33681 CD 248,000.00 248,000.00 248,000.00 0.350% 247,942.96 maturity 12/09/15 none 03/09/16 RBS Citizens NA 75524KEF7 57957 CD 248,000.00 248,000.00 248,000.00 0.350% 247,942.96 maturity 12/09115 none 03/09/16 Merchants Bnk of Indiana _ 588493FW1 8056 CD 248,000.00 248,000.00 248,000.00 0.450% 247,940.48 maturity 12/11/15 none 03/11/16 Medallion Bank Utah 5840362T2 57449 CD 248,000.00 248,000.00 248,000.00 0.400% 247,930.56 maturity 12/18/15 none 03/18/16 Farmers State Bank 31034RBD6 12855 CD 248,000.00 248,000.00 248,000.00 0.350% 247,893.36 maturity 12/15115 none 04/15/16 Cadence Bank 12738RCF9 4999 CD 249,000.00 249,000.00 249,000.00 0.350% 248,900.40 maturity 10/23/15 none 04/22/16 Bank of India NY 06279HBZ5 .33648 CD 249,000.00 249,000.00 249,000.00 0.400%1 248,892.93 maturity 10/30/15 none 04/27/16 BMO Harris Bank 05573J6A7 16571 CD 249,000.00 249,000.00 249,000.00 0.350% 248,890.44 maturity 10/28/15 none 04/28/16 Sallie Mae Bank 795450W04 56177 CD 249,000.00 249,000.00 249,000.00 0.400% 248,890.44 maturity 10/28/15 none 04/28/16 Compass Bk 20451PPEO 19048 CD 248,000.00 248,000.00 248,000.00 0.450% 247,799.12 maturity 12/09/15 none 06/09/16 National Cooperative Bank 635573AG3 32612 CD 248,000.00 248,000.00 248,000.00 0.500% 247,809.04 maturity 12/09/15 none 06/09/16 BerkshireBk 084601EX7 23621 CD 248,000.00 248,000.00 248,000.00 0.500% 247,796.64 maturity 12/11/15 none 06/10/16 First Niagra Bk Nall Assn 33583CTB5 16004 CD 248,000.00 248,000.00 248,000.00 0.550% 247,789.20 maturity 12/11/15 none 06/13/16 Safra National Blk 78658QSQ7 26876 CD 248,000.00 248,000.00 248,000.00 0.500% 247,752.00 maturity 12/14/15 none 06/14/16 First Source Bank 33646CGA6 9087 CD 248,000.00 248,000.00 248,000.00 0.450% 247,791.68 maturity 12/15/15 none 06/15/16 Santander Bank NA 80280JKY6 29950 CD 249,000.00 249,000.00 249,000.00 200,000.00 248,000.00 248,000.00 245,000.00 245,000.00 250,000.00 248,000.00 245,000.00 0.650% 249,032.37 maturity semi- annual semi- annual semi - annual maturity maturity maturity maturity 01/20/16 08/14/13 08/16/13 09/10/14 01/28/16 none 02/14/14 02116/14 03/04/15 none 07/20/16 08/15/16 08/16/16 09/06/16 09/28/16 Lake Forest Bank & Trust 509685ES8 27589 CD 200,000.00 200,000.00 0.850% 0.750% 200,204.00 248,121.52 248,153.76 245,049.00 244,524.70 250_,00_0.00 Luana Savings Bank Synovus Bank GA Mountainone Bank Mizuho Bank USA 1 Year CD - Premier Bank TCF National Bank 1 Year CD - Premier Bank Rochester 1 Year CD - Premier Bank MN 549103MY2 253 CD CD CD CD CD CD CD 248,000.00 248,000.00 245,000.00 245,000.00 250,000.00 248,000.00 248,000.00 87164DFL9 62452AAT7 60688MSH8 1091003210 872278RE8 873 248,000.00 245,000.00 245,000.00 250,000.00 248,000.00 245,000.00 0.800% 0.600% 0.700% 0.600% 90253 21843 01/20/16 none 10/20/16 21714_ 28330 12/16/15 12/16/15 none none 12/16/16 12/16/16 0.700% 247,536.24 2055214401 3041574901 33202 245,000.00 0.600% 245,000.00 maturity 12/16/15 none 12116/16 33204 CD CD 245,000.00 245,000.00 245,000.00 0.600% 245,000.00 maturity 12/16/15 none 12116/16 Wax Bank 92937CDJ4 34697 248,000.00 248,000.00 248,000.00 0.750% 247,556.08 maturity 12/16/15 none 12/16/16 Whitney Bk New Orleans LA 966594AP8 12441 CD 247,000.00 247,000.00 247,000.00 0.850% 247,145.73 maturity 01/27/16 none 01/27/17 Prattville AL 740019LG7 AA local 154,417.50 154,417.50 150,000.00 4.000% 152,911.50 semi - annual 10/27/15 none 09/01/16 Chaska MN 161664DU8 AA local 76,434.00 76,434.00 75,000.00 2.000% 75,876.75 semi - annual 08/15/13 06/01/14 12/01/16 Lake Mills WI 510192FAO AA- local 65,000.00 65,000.00 21,269.40 65,000.00 20,000.00 0.700% 65,032.50 semi - annual semi - annual 06/22/15 08/02/11 none 09/01/16 Minneapolis Minn 60374YP35 AA1 local 21,269.40 3.250% 20,055.00 135,421.20 none 03/01/16 Des Moines IA Area Cmnty Col 250097A85 AA1 local 137,668.95 137,668.95 135,000.00 1.376% semi - annual 07/30/12 12/01/12 06/01/16 Duluth Minn ISD #709 264474CK1 AA2 local 74,939.20 74,939.20 70,000.00 4.000% 70,010.50 semi- annual 01/18/11 none 02/01/16 Duluth MN 264438ZB1 AA2 local 105,652.05 105,652.05 105,000.00 1.000% 105,005.25 semi- annual 12/05/12 08/01/13 02/01/16 Keller TX ISD Zero Coupon 487694DW8 AA2 local 249,000.00 249,000.00 250,000.00 249,977.50 maturity 03/24/15 none 02/15/16 Rowlett TX 77969861­17 AA2 local 101,905.55 101,905.55 95,000.00 3.000% 95,113.05 semi- annual 07/10/12 08/15/12 02/15/16 Grand Forks ND Sales Tax Raven 385492GQO AA2 local 104,082.00 104,082.00 100,000.00 4.000% 102,103.00 semi - annual 06/23/15 09/01/12 09/01/16 East Bethel Minn 271074HRO AA3 local 100,941.00 100,941.00 100,000.00 3.200% 100,012.00 semi- annual 12/15/10 08/01/11 02/01/16 Three Rivers MN Park Dist 885718GG5 AAA local 210,828.00 210,828.00 200,000.00 3.000% 200,032.00 semi- annual 12/12/13 08/01/14 02101/16 Danbury TX SID 236037ES2 AAA local 40,348.00 40,348.00 40,000.00 4.000% 40,065.60 semi - annual 11/19/15 none 02/15/16 Richardson TX 763227EC5 AAA local 98,031.45 98,031.45 951 000.00 3.150% 95,086.45 semi - annual 11/12/14 none 02/15/16 7,385,183.75 CD 1,506,702.30 local January 2016 Investment Detail Description Cusip Number Credit RatinglF DIC # Type Purchase Price Carrying Cost Maturity Amount Interest Rate Current Market Value Interest Paid Date Acquired Coupon Date Maturity I Due Date Illinois State 452152HR5 A- state 217,312.00 217,312.00 200,000.00 4.961% 200,670.00 semi - annual 07/16/12 09/01/11 03/01/16 Oregon State 68608URVO AA1 state 70,194.60 70,194.60 70,000.00 0.890% 70,163.80 semi - annual 07/29114 08/01/13 08/01/16 Nevada State 641461NKO AA2 state 258,305.00 258,305.00 250,000.00 4.000% 253,230.00 semi - annual 06/18/15 06/01/11 06/01116 Mississippi State 605581BV8 AA2 state 25,000.00 25,000.00 25,000.00 1.116% 25,137.00 semi- annual 09/12/13 none 12/01/16 Florida St Hurricane 34074GDF8 AA3 state 160,836.80 160,836.80 160,000.00 1.298% 160,443.20 semi - annual 08/14/15 07/01/13 07/01/16 Ohio State Water DevAuth Zero Coupon 67766WKK7 AAA state 199,412.00 199,412.00 200,000.00 199,792.00 maturity 07/28/15 none 06/01116 Texas State 882723BT5 AAA state 211,414.00 211,414.00 200,000.00 4.000% 203,818.00 semi - annual 01/14/15 none 08/01/16 Fed Nat Mtg Assn 3136G1YP8 AAA US 130,130.00 130,130.00 130,000.00 0.800% 130,807.30 semi - annual 07/08/15 none 12/30/16 10,135,947.35 Amex Centurion Bank 02587DE61 27471 CD 248,000.00 248,000.00 248,000.00 0.900% 247,749.52 semi - annual 10/28/15 04/28/16 04/28/17 Capital One 14042E4Q0 4297 CD 248,000.00 248,000.00 248,000.00 1.150% 247,672.64 semi - annual 07/15/15 01/15/16 07/17/17 Farmers & Merchants Svgs Bk 30856PAGJ 9298 CD 249,000.00 249,000.00 249,000.00 1.050% 249,453.18 monthly 01/22/16 02/22/16 10/23/17 Valley Cent Svgs Bk Reading OH 91944RAE8 28555 CD 150,000.00 150,000.00 150,000.00 1.250% 149,974.50 monthly 12/22/14 01 /22115 12/22/17 B -Bay, LLC 05580ADR2 35141 CD 245,000.00 245,000.00 245,000.00 1.600% 246,313.20 semi - annual 01/22/16 07/22/16 01/22/19 Barclays Bank 06740KHB6 57203 _CD CD 247,000.00 247,000.00 247,000.00 247,000.00 2.050% 248,812.98 semi - annual 07/03/14 01/02/15 07/02/19 Synchrony Bank 87164WBT4 27314 247,000.00 247,000.00 2.050% 248,682.07 semi- annual 07111/14 01/11/15 07/11/19 PrivateBank &Trust Co 74267GUQ8 33306 CD 247,000.00 247,000.00 247,000.00 2.000% 248,625.26 semi - annual 07/21/14 01/21/15 07/22/19 Goldman Sachs Bank USA 38147JU59 33124 CD 247,000.00 247,000.00 247,000.00 2.050% 248,286.87 semi - annual 07/23/14 01/23/15 07/23/19 Bangor Savings Bank 060243DV1 18408 CD 245,000.00 245,000.00 1.000% 245,247.45 semi - annual monthly semi - annual semi - annual semi - annual semi- annual 07/30/14 01/21/16 09/24/14 11/24/14 12/20/13 12/26/14 01/30/15 02/21/16 03/24/15 05/24/15 06/20/14 07/30/19 08/21/19 09/24/19 11/25/19 12120/19 First Federal Svgs Bk _ _ _ _ Victory Bank Third Federal Sav & Loan Celtic Bank Steams Bank NA Citizens Alliance Bank 32021YCH4 92644LAB8 884130AW8 15118RJMO 857894PB9 17318LAP9 29690 CD CD CD CD CD CD _245,000.00 249,000.00 249,000.00 249,000.00 1.500% 250,658.34 248,244.88 128,904.96 249,973.88 248,645.02 58615 247,000.00 128,000.00 247,000.00 247,000.00 249,000.00 247,000.00 128,000.00 247,000.00 247,000.00 249,000.00 247,000.00 128,000.00 247,000.00 247,000.00 2.000% 2.000% 2.050% 1.000% 30012 57056 10988 06/26/15 12/26/19 1402 249,000.00 2.000% 251,298.27 monthly 06/27114 07/27/14 06/26/20 Enerbank USA 29266NA31 57293 CD 249,000.00 249,000.00 249,000.00 2.100% 251,290.80 monthly 07/18/14 08/18/14 07/20/20 Elbow Lake MN 284281KC5 A local 170,045.70 170,045.70 165,000.00 2.750% 171,657.75 semi- annual 12/08/14 none 12/01/19 Oshkosh Wis Storm Wtr Util 68825RBD1 Al local 101,003.00 101,003.00 100,000.00 3.250% 103,362.00 semi - annual 10/05/10 05/01/11 05/01/18 Oneida County NY 6824543R2 Al local 91,510.40 91,510.40 80,000.00 100,000.00 6.250% 85,576.80 semi - annual semi - annual 08/16/10 none 04/15/19 Junction City Kansas 481502F72 A2 local 101,558.00 101,558.00 5.500% 110,116.00 05128108 03/01109 09/01/18 Augusta ME 051411ND4 A3 local 16,875.00 16,875.00 15,000.00 5.250% 15,518.40 semi - annual none 10/01/17 North Mankato MN Port Auth Cam 660760AG4 AA local 107,657.00 107,657.00 100,000.00 4.000% 102,574.00 semi- annual _03/07/12 09/20/13 none 02/01/17 Philadelphia PA Auth Zero Coupon 71781LBJ7 AA local 161,700.00 161,700.00 245,000.00 239,695.75 maturity 01/12/10 none 04115/17 Rice Cnty MN 762698GK8 AA local 45,466.80 45,466.80 40,000.00 4.400% 43,790.00 semi - annual 03/07/12 none 02/01/19 Racine WI 7500216D4 AA- local 101,792.00 101,792.00 100,000.00 2.100% 102,267.00 semi - annual 01/24/12 06/01/12 06/01/18 Minnetrista MN 604229KE3 AA+ local 10,000.00 10,000.00 10,000.00 2.450% 10,013.30 semi- annual 10/10/13 08/01/14 Ramsey AN 751813PB6 AA+ local 158,677.85 158,677.85 145,000.00 4.500% 145,888.85 semi - annual 02116/12 04/01/16 _02/01/19 04/01/19 Steams Cc MN 857896MH4 AA+ local 276,875.00 276,875.00 250,000.00 4.500% 258,912.50 26,291.75 semi- annual semi - annual 04/17/13 12/22/11 none 06/01/20 Osseo MN ISO #279 688443,127 AA1 local 30,103.25 30,103.25 25,000.00 6.000% none 02/01/17 McKinney TX 581646Y91 AA1 local 126,856.25 126,856.25 125,000.00 1.4721/0 126,041.25 semi - annual 05/20/15 none 08/15/17 Dane County WI 236091M92 AA1 local 106,487.00 106,487.00 100,000.00 2.450% 102,588.00 semi - annual 07/16/12 none 12101/17 Minneapolis MN 60374YF93 AA1 local 220,938.00 220,938.00 200,000.00 4.000% 213,332.00 semi- annual 03/04/14_ none 03/01/18 Scott County IA 809486EZ2 AA1 local r 114,450.33 1 112,617.00 100,000.00 4.400% 105,824.00 semi - annual 10/31/12 12/01/12 06/01/18 1,113,254.00 state 130,807.30 US Less Than 1 Year 4,009,833.82 CD January 2016 Investment Detail Description Cusip Number Credit Rating /F DIC # Type Purchase Price Carrying Cost Maturity Amount Interest Rate Current Market Value Interest Paid Date Acquired Coupon Date Maturity/ Due Date King Cnty WA _ 49474E3L5 AA1 local 224,634.00 224,634.00 200,000.00 3.980% 214,462.00 semi- annual 03/27/12 none 12101/18 Minneapolis MN 60374YS73 AA1 local 111,898.00 111,898.00 100,000.00 3.250% 106,712.00 semi- annual 06/05/12 12/01/11 12101/18 Cedar Rapids IA 150528RM1 AA1 local 217,672.00 217,672.00 200,000.00 3.000% 211,554.00 semi - annual 06/11/13 12/01/13 06/01/19 Minneapolis MN 60374YS81 AA1 local 278,632.50 278,632.50 250,000.00 3.500% 270,135.00 semi - annual 02/26/13 none 12/01/19 Hampton VA 4095582,11 AA1 local 100,836.00 100,836.00 100,000.00 2.209% 102,142.00 semi- annual 01/20/16 none 04/01/20 Middleton WI 596782RX2 AA1 local 106,979.00 100,000.00 3.750% 106,621.00 semi- annual 02124/15 none 09/01/20 Buffalo MN ISD #877 119655PS1 AA2 local 264,250.00 250,000.00 4.050% 258,175.00 semi - annual 03/10/15 none 02/01/17 Wated001A 941647KEB AA2 local 105,594.00 100,000.00 3.500% 103,178.00 semi - annual 02/24/15 none 06/01/17 Prior Lake MN 742617CB7 AA2 local 230,000.00 F264,250.00 230,000.00 1.000% 230,223.10 semi - annual 05/14/15 12/15/15 12/15/17 Hopkins Minn ISD #270 439881HC0 AA2 local 95,278.40 0 80,000.00 5.250% 86,376.00 semi - annual 04/30/12 08/01/09 02/01/18 Orange Beach ALA 68406PHF1 AA2 local 241,689.60 240,000.00 4.400% 255,784.80 semi - annual 08/05/10 02/01/11 02/01/19 Waterloo IA 941647PAl AA2 local 50,559.50 50,559.50 50,000.00 2.000% 51,258.00 semi - annual 06/27/13 12/01/13 06/01/19 Western Lake Superior MN 958522WU4 AA2 local 100,000.00 100,000.00 100,000.00 3.150% 105,503.00 semi- annual 08/16/11 04/01/12 10/01/19 Portsmouth VA 73723RSL8 AA2 local 286,268.00 286,268.00 295,000.00 2.400% 305,885.50 semi - annual 07/17/13 02/01/14 02/01/20 Brunswick Cnty 117061VH1 AA2 local 108,967.10 108,967.10 110,000.00 1.740% 111,205.60 semi- annual 08/21/15 none 05/01/20 Tucson AZ 898711Q33 AA3 local 254,202.50 254,202.50 250,000.00 2.139% 254,867.50 semi - annual 12/09/15 none 07/01/17 Kane McHenry Cook & De Kalb Zero Cpn 484080MB9 AA3 local 157,328.00 157,328.00 200,000.00 188,258.00 maturity 07/16/12 none 12/01/18 Moorhead MN 6161412R7 AA3 local 108,820.00 108,820.00 100,000.00 3.800% 103,189.00 semi - annual 11/14/11 none 02/01/20 Davenport Iowa 238388GS5 AA3 local 111,948.00 111,948.00 100,000.00 4.650% 104,647.00 semi - annual 09/13/11 none 06/01/20 WhitewaterWis Maple Grove MN _ _ Ramsey Cnty MN Tennessee Valley Auth Washington County MN Saint Louis Park MN Brownsville TX ISD Zero Coupon Minnetonka MN ISD #276 966204KA6 AA3 local 109,541.00 109,541.00 100,000.00 4.850% 112,800.00 222,409.00 100,151.00 90,705.20 118,907.70 semi - annual semi - annual semi - annual semi- annual 06/09/11 01/10/13 08/12/14 06/01/09 07/01/10 none 08/01113 02/01/15 01/18/08 01/01/11_ 12/01/20 02/01/17 02/01117 07/18/17 01/01/18 02/01/18 08/15/18 02/01119 5651_6PNY5_ 751622JG7 880591EA6 937791KL4 791740WC3 116421E46 60_4195RA7 AAA 230,520.40 230,520.40 220,000.00 1.00,000.00 85,000.00 115,000.00 100,000.00 2.000% 1.130% 5.500% AAA AAA AAA AAA AAA _local local local local local 100,000.00 93,153.11 115,000.00 112,114.00 100,000.00 93,153.11 115,000.00 112,114.00 3.750% semi- annual 105,490.00 semi - annual 12/22/11 none local 229,640.00 229,640.00 250,000.00 _ _3.850% 241,512.50 maturity 06/26113 none AAA local 37,433.20 37,433.20 35,000.00 3.100% 36,201.20 semi - annual 12122/11 none Palm Beach Cnty FLA 696497TR7 AAA local 256,504.60 256,504.60 220,000.00 5.898% 237,846.40 semi - annual 07/06/11 none 06/01/19 Tenn Val Auth Cpn Strip Zero Cpn 88059EWZ3 AAA local 262,890.00 262,890.00 300,000.00 285,894.0_0 maturity 12127/13 none 06/15/19 Norwalk Conn 668844DS9 AAA local 122,464.80 122,464.80 120,000.00 4.050% 128,982.00 semi - annual 08/04/10 08/01/11 08/01/19 Greensboro NC 39546OV21 AAA local 366,832.80 366,832.80 360,000.00 3.263% 378,493.20 semi - annual 07/15/11 none 10/01119 Woodbury MN 97913PCQ7 AAA local 123,037.35 123,037.35 115,000.00 3.250% 119,112.40 semi - annual 12/22/11 none 02/01/20 Dallas TX Indpt Sch Dist 235308QK2 AAA local 116,900.00 116,900.00 100,000.00 4.450% 110,128.00 semi - annual 04/16/12 08/15/11 02/15/20 Tenn Valley Auth Zero Cpn 88059EHD9 AAA local 263,970.00 263,970.00 300,000.00 280,125.00 maturity 03/11/13 none 05/01/20 Tenn Val Auth Cpn Strip Zero Cpn 88059EMX9 AAA local 88,133.00 88,133.00 100,000.00 92,871.00 maturity 03118/13 none 07/15/20 Washington State 939758DL9 AA state 205,804.00 205,804.00 200,000.00 4.500% 213,588.00 semi- annual 01/24/12 04/01/12 10/01/18 Massachusetts State 57582P2T6 AA1 state 199,744.00 199,744.00 200,000.00 2.090% 205,068.00 semi - annual 12/17/14 11/01114 05/01/20 New Hampshire St Hag 64469DWUl AA2 state 250,952.50 250,952.50 250,000.00 1.789% 252,075.00 semi - annual 12/09/15 07/01/16 01/01/18 New Hampshire St Hsg 64469DWV9 AA2 state 135,804.60 135,804.60 135,000.00 100,000.00 1.939% 136,404.00 semi - annual 12/09/15 07/01116 07/01/18 Minnesota St Colleges & Univ 60414FPJ3 AA2 state 100,000.00 100,000.00 2.000% 101,228.00 semi - annual 02/26/15 10/01/15 10/01/20 Florida St Hurricane 34074GDH4 AA3 state 71,507.80 71,507.80 70,000.00 2.995% 72,422.00 semi - annual 11/10/15 07/01/13 07101/20 Tennessee State 880541QM2 AAA state 201,894.00 201,894.00 200,000.00 2.326% 204,330.00 semi - annual 10/26/11 02/01/12 08/01/17 Georgia State 373384RQ1 AAA state 26,742.50 26,742.50 25,000.00 2.970% 26,153.00 semi - annual 02108/12 none 10/01/18 Texas State 882722,151 AAA state 103,089.00 103,089.00 100,000.00 2.894% 104,683.00 1 semi - annual 08/10/11 04/01/12 10/01/18 7,795,254.45 local 1,315,951.00 state 1 January 2016 Investment Detail Description Cusip Number Credit Rating /F DIC # Type Purchase Price Carrying Cost Maturity Amount Interest Rate Current Market Value Date Acquired Coupon Date Maturity I Due Date Fed Farm Credit Bank 3133EE6A3 AAA US 200,000.00 200,000.00 200,000.00_ 100,000.00 0.590% 0.900% 199,654.00 semi - annual 12/09/15 02/06/16 02/06/17 Fed Farm Credit Bank 3133EATE8 AAA US 99,647.00 99,647.00 100,189.00 semi- annual 11/04/13 12/08/12 06/08/17 Fed Farm Credit Bank 3133ECA95 AAA US 199,800.00 199,800.00 200,000.00 0.790% 199,786.00 semi- annual 12/08/15 03/18/13 09/18/17 Fed Farm Credit Bank 3133ECFA7 AAA US 100,000.00 100,000.00 100,000.00 1.080% 100,000.00 semi - annual 02/13/13 08/13/13 02/13/18 Fed Home Ln Mtg Corp 3134G46D5 AAA US 198,000.00 198,000.00 200,000.00 1.200% 200,022.00 semi- annual 06/12/13 12/12/13 06/12/18 Fed Home Ln Mtg Corp Med Term Note 3134G3ZK9 AAA US 200,000.00 200,000.00 200,000.00 1.200% 200,814.00 semi- annual 07/30/12 01/30113 07/30/18 Fed Farm Credit Bank 31331Y4S6 AAA US 114,000.00 114,000.00 100,000.00 5.050% 109,903.00 semi - annual 09/11/13 none 08/01/18 Fed Net Mtg Assn 3136GORB9 AAA US 294,999.00 294,999.00 300,000.00 1.375% 300,420.00 semi - annual 12/05/13 12/28/12 12/28/18 Fed Nall Mtg Assn 3136GOY70 AAA US 199,300.00 199,300.00 200,000.00 1.080% 200,234.00 semi- annual 10/30/12 01130/13 01/30/19 Fed Farm Credit Bank jCpn 3133EC5N0 AAA US 99,587.00 99,587.00 100,000.00 1.250% 99,926.00 semi- annual 01/07/13 03/04/13 03/04/19 RFCSP Strip Principal Zer76116FAA5 AAA US 185,568.00 185,568.00 200,000.00 189,336.00 maturity 07/22/15 none 10/15/19 Fed Home Ln Mtg Corp Ze313400BV4 AAA US 278,625.00 278,625.00 300,000.00 280,860.00 maturity 11/02/15 none 11/29/19 Fed Home Ln Bank 313OA3XL3 AAA US 99,500.00 99,500.00 100,000.00 1.500% 100,153.00 semi - annual 07/22/15 08/10/15 02/10/20 Fed Farm Credit Bank 3133ECQ64 AAA US 191,812.00 191,812.00 200,000.00 1.740% 200,018.00 semi- annual 07/23/13 11/21/13 05/21/20 Fed Nall Mtg Assn Remic 31393EAL3 US 204,187.50 7,857.67 7,696.52 4.500% 7,927.42 monthly 07/30/03 none 08125/18 FICO Strip Prin Zero Coupon 31771 KAC1 US 295,932.00 295,932.00 300,000.00 294,606.00 maturity 10/23/15 none 10/06/17 FICO Strip Prn-4 Zero Coupon 31771 EAD3 US 194,572.00 194,572.00 200,000.00 196,404.00 maturity 03/16/15 none 10/06/17 FICO Strip Cpn -E Zero Coupon _ 31771JXM7 US 215,452.16 215,452.16 224,000.00 219,717.12 maturity 12/11/14 none 11/02/17 FICO Strip Cpn Zero Coupon 31771EAA9 US 236,235.00 236,235.00 250,000.00 244,195.00 maturity 06/09114 none 05/11/18 Fed Home Ln Mtg Corp 31393VMQ1 US 153,656.25 4,392.32 93_,140.00 4,287.79 4.500% 4.000% 4,408.53 monthly maturity _ maturity semi - annual semi- annual 06/30/03 12/29/14 04/17/15 none none _ 06/15/18 12/27/18 02/01/19 FICO Strip Cpn13 Zero Coupon FICO Strip Cpn Zero Coupon Chaska MN Mitchell SD Sch Dist #17 -2 _ Minnetrista MN 31771C2G9 31358BAA6 161663653 606687EHO AA AA US 93,140.00 94,480.00 115,122.70 100,000.00 100,000.00 110,000.00 96,540.00 95,353.00 16,761,505.34 _ US_ local 94,480.00 115,122.70 115,053.40 09/08114 none 02/01/24 local 116,702.00 116,702.00 100,000.00 6.000%_ 110,718.00 12/20/11 06/15/19 06/15/24 604229KG8 AA+ local 161,038.40 161,038.40 160,000.00 3.100% 160,198.40 semi- annual 10/10/13 08/01/14 02/01/21 Greenway MN ISO #31 39678LDF6 AA+ local 27,593.50 27,593.50 25,000.00 5.000% 27,679.50 semi- annual 07/09/13 none 03/15/21 Minnetrista MN 604229KJ2 AA+ local 40,000.00 40,000.00 40,000.00 3.850% 40,055.20 semi - annual 10/10/13 08/01114 02101123 Savage Minn 80465PAN4 AA+ local 198,018.00 198,018.00 200,000.00 4.800% 212,252.00 annual 06/17/10 02/01/11 02/01/24 Lake City Minn ISO #813 508084DW7 AA+ local 103,933.00 103,933.00 100,000.00 5.000% 106,175.00 _semi- semi - annual 05111/11 none 02/01/25 Des Moines IA Area Cmnty Col 2500971-121 AA1 local 50,606.00 50,606.00 50,000.00 2.450% 52,424.00 semi - annual 11/10/14 12/01/14 06/01/21 Minneapolis MN 60374YG68 AA1 local 110,419.00 110,419.00 100,000.00 4.700% 108,906.00 semi- annual 10/31/11 none 03/01/23 Minneapolis MN 60374YG76 AA1 local 72,201.35 72,201.35 65,000.00 4.800% 70,694.00 semi - annual 12/09/14 none 03/01/24 Alexandria MNISD #206 015131LQ6 AA2 local 279,760.50 279,760.50 270,000.00 3.000% 277,573.50 semi- annual 01/21/15 none 02/01123 Duluth NIN 264438ZL9 _ AA2 local 29,767.20 29,767.20 30,000.00 2.625% 29,596.50 semi - annual 12/05112 08/01/13 02101/25 Hawkins Cnty TN 420218PL7 AA3 local 111,480.00 111,480.00 100,000.00 4.800% 106,182.00 semi- annual 03/13/12 none 05/01/24 New York St Mtge Agy 64988RHGO AAA local 100,000.00 100,000.00 100,000.00 2.375% 100,634.00 semi- annual 10/27/15 04/01/16 10/01/21 Columbus OH 199492CS6 AAA local 39,956.40 39,956.40 40,000.00 2.133% 41,292.80 semi - annual 02/20/15 none 12/01/21 Tennessee Valley Auth Serf 880591CJ9 AAA local 121,500.00 121,500.00 100,000.00 6.750% 135,078.00 semi - annual 03/19/09 none 11/01/25 Ice Deposit - National Sports Center none local 250,000.00 250,000.00 250,000.00 250,000.00 maturity 02/06/08 none 01/01/26 Florida St Dept Environmental 34160WUA0 AA3 state 217,800.00 217,800.00 200,000.00 6.206% 229,262.00 semi - annual 08/30/10 07/01110 07/01122 Virginia State 928109XD4 AAA state 22,126.00 22,126.00 20,000.00 4.100% 21,686.00 semi - annual 02/07/12 none 06/01/21 Fed Home Ln Mtg Corp 3128X4S36 AAA US 105,712.00 105,712.00 100,000.00 5.400% 100,539.00 semi - annual 01/26/15 none 03117/21 3,640,466.07 US L - 5 Years 1,944,512.30 local 250,948.00 state January 2016 Investment Detail Description Cusip Number Credit Rating /F DIC # Type Purchase Price Carrying Cost Maturity Amount Interest Rate Current Market Value Interest Paid Date Acquired Coupon Date Maturity / Due Date Fed Home Ln Bank 3130A6VA2 AAA US 300,000.00 300,000.00 300,000.00 2.450% 300,354.00 semi - annual 12/16/15 06/16116 12/16/22 2,596,353.30 Itasca County Minn 465452GP9 A local 105,024.00 105,024.00 100,000.00 5.550% 104,550.00 semi - annual 07112/11 none 02/01/28 Milaca Minn ISD #912 598699NT9 AA+ local 106,941.00 106,941.00 100,000.00 5.650% 107,651.00 semi- annual 07/22/11 none 02/01/27 Van Buren Mich Public Schools 920729HD5 AA1 local 102,750.00 102,750.00 100,000.00 6.430% 112,656.00 semi - annual 07/17/09 11/01/09 05/01/29 Will County IL Cmnty Zero Coupon 969078QM9 AA2 local 159,000.00 159,000.00 500,000.00 300,100.00 maturity 08/25/09 none 11/01/27 Fed Home Ln Bank Fed Farm Credit Bank 313381D51 AAA US 93,750.00 93,750.00 100,000.00 2.000% 98,816.00 semi- annual 12/23/14 none 11/23/27 31331VLC8 AAA US 106,030.45 106,030.45 100,000.00 5.250% 125,792.00 semi - annual 02/26/10 none 04/21/28 849,565.00 30,343,370.99 400,893.00 US 6 - 30 Years 624,957.00 local 224,608.00 US 10+ Years INVESTMENT SCHEDULE - Money Market Funds January 31, 2016 Current Market Description YTD Interest Value Wells Fargo I Wells Farao Government Monev Market Fund 1 $1,285,090.341 $34.24 4M' I 4M 1,892.52 - 4M PLUS I 4M Plus 3,101.161 0.31 Premier Bank 1 Premier Bank Money Market 260,114.70 77.30 Grand Total Money Market Funds 1 $1,550,198.72 1 $111.85 Updated: 211012016