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7.b ii. Report on Ordinance to amend Chapter 5 of the Development Code - Shoreland Management Regulations(1) Memorandum To: Scandia City Council Reference: Scandia Shoreland Ordinance – Adoption Copies To: Neil Soltis, City Administrator Brenda Eklund, City Clerk Project No.: 16623.000 From: Sherri Buss, RLA AICP, Planner Routing: Date: May 7, 2018 Background—Ordinance Process The Planning Commission has been working on updating the City’s Shoreland Ordinance during the past year. The Commission used the DNR’s new Model Shoreland Ordinance as the basis for the update, and modified the Model Ordinance to meet Scandia’s needs. The Commission held a public hearing on the Draft Shoreland Ordinance at its meeting on April 3 and made its final recommendations regarding the ordinance standards. Staff sent a copy of the draft ordinance that the Commission recommended to the Minnesota DNR for the required agency review. Most of the public comments at the hearing encouraged the City to maintain the higher standards for lot sizes, lot width, and setbacks that it has in its current ordinance, rather than adopt the smaller lot sizes permitted in the state Shoreland rules in the updated ordinance. The Planning Commission recommended the higher standards based on goals in the Comprehensive Plan to protect the City’s lakes and natural resources. The DNR conditionally approved the City’s updated Shoreland Ordinance on April 30, 2018 (letter attached). The conditional approval required some final minor changes to the ordinance. Staff have completed the updates in ordinance that is attached for Council consideration. The Planning Commission recommends that the City Council adopt the updated Ordinance. There is one significant issue remaining for Council discussion—the wetland setback requirements—discussed below. Proposed Changes to the Shoreland Management Regulations The list below identifies the most significant changes proposed in the updated Ordinance from the current ordinance: Shoreland Model Ordinance Page 2 May 15, 2018 City Council Adoption  Expanded list of regulated waters -- The Planning Commission recommended that the City update the ordinance so that it would regulate Shoreland areas around all of the Public Waters in the City, based on the goals in the comprehensive plan to protect the quality of surface waters in Scandia, and to be consistent regarding the types and sizes of water bodies that are regulated by the Shoreland Ordinance. This change will significantly increase the area around public water bodies in Scandia that must meet the Shoreland Ordinance standards.  Wetland Setbacks – The updated ordinance replaces the current requirement for a uniform 75’ setback from the boundaries of all wetlands (called “unclassified water bodies” in the ordinance). The draft ordinance would generally adopt the wetland buffer requirements that are recommended by the Board of Water and Soil Resources and used by local watershed districts as the required setbacks—higher quality wetlands would require larger setbacks than low quality wetlands. The standards use the Washington County setback requirements from wetlands for on-site septic systems (75’). The section also exempts some small wetlands from the setback requirements— consistent with the Minnesota Wetland Conservation Act regulations. The new setback requirements will require that applicants complete a state-approved wetland classification assessment with wetland delineations to determine the wetland classification so that the City can require the appropriate setback.  PUDs -- The draft ordinance would permit residential Planned Unit Developments (PUDs), and adopts the DNR’s standards for PUDs, which require dedication of a significant portion of Shoreland area in exchange for higher densities in some parts of the PUD. The City’s current Shoreland ordinance permits Open Space Developments as PUDs in Shoreland areas, but does not permit other PUDs. DNR Flexibility and Comments on Scandia’s Ordinance The DNR’s approval letter noted that it has granted flexibility to the City from the state’s Model Ordinance standards in several areas:  The DNR will continue to grant flexibility to permit building heights up to 35 feet, which was granted to the City in 2008. The Model Ordinance standard is 25 feet.  The DNR will continue to grant flexibility for lot area and lot width standards on Goose Lake. The flexibility was granted because the lot width and area standards on public waters in Scandia in general are significantly larger that the DNR’s minimum standards.  The DNR will allow the City to permit accessory dwelling units that are not counted as density units within Shoreland areas because Scandia’s lot area and lot width standards for single-family lots are higher than the minimum standards in the Model Ordinance. The DNR’s comments also noted the following:  The DNR appreciates that the City’s ordinance includes higher minimum lot size and width standards in most shoreland areas than the minimums required in the state rules.  The DNR appreciates that some of the required structure setbacks in the City’s ordinance are higher than the minimum standards required in the state rules.  The DNR cited the new standard included in the ordinance that includes stairways and landings in the lot coverage calculation on shoreland lots as innovative. Shoreland Model Ordinance Page 3 May 15, 2018 City Council Adoption Item for Council Discussion and Decision – Wetland Setback Requirements The Carnelian-Marine-St. Croix Watershed District submitted comments on the City’s Draft Shoreland Ordinance last week. The comments noted that there are some differences among the CMSCWD, CLFLWD wetland buffer requirements and the City’s proposed setbacks. Staff have discussed this issue (since the comments came after the Planning Commission’s public hearing and discussion of the ordinance), and suggest the following:  The District’s rules are intended for wetland buffers (vegetated areas that help to protect wetland quality and function) not structure setback requirements. There are similarities in purpose between buffers and setbacks, but the application of these concepts is not identical--there are some differences between the regulation of buffers and setbacks. For example 1) buffers typically permit “averaging” while structure setbacks in zoning ordinances usually do not. Structure setbacks try to maintain consistency among lots in a neighborhood. 2) The required County setbacks from wetlands for on-site septic systems must be used for locating those systems, and cannot be averaged. Septic systems must be located to meet the County setback requirements, not the wetland buffer requirements. Staff recommend that the “averaging” that the Watershed Districts permit for wetland buffers not be adopted for structure setbacks.  Each of the Districts’ buffer standards are based on the state Wetland Classification descriptions developed by the Board of Water and Soil Resources and BWSR’s recommended buffer widths. CLFLWD adopted the BWSR classification descriptions and names directly, but CMSCWD shifted the category names from the BWSR system— the BWSR “Preserve” wetland category description is very similar to the CMSCWD “Manage 1” category description, and so on through the categories. Rather than have different setbacks or naming systems in each Watershed district area in Scandia, staff suggest using the BWSR Classification and naming system, since it is what the state’s assessment tool (called MnRAM) for determining the wetland classifications is based on. The MnRAM assessment tool would be completed with wetland delineations to determine the wetland classification for applying the setback requirements. The BWSR wetland setback recommendations are consistent with the District buffer requirements. Staff have modified the text in the ordinance to take out the reference to the Watershed District regulations and to use the BWSR classification system and buffer recommendations for each category. The City’s setback requirements will be similar to the District buffer requirements, but this will avoid the different naming systems used by the Districts. The revision also specifies that the state’s MnRAM assessment method must be used with wetland delineations to determine the wetland classification. If the City requires wetland setbacks that are based on completion of wetland delineations and the functions and values assessment to determine the wetland classification (and therefore the required setback), applications received during the winter season may need to wait until spring when a wetland delineation can be completed to determine the required setbacks. If the City’s Shoreland Model Ordinance Page 4 May 15, 2018 City Council Adoption goal is to base the required setbacks on wetland quality rather than a one-size-fits-all setback, it is difficult to avoid that issue. One option may be to give owners the an option to accept a 75’ setback in lieu of completing the wetland functions and values assessment, if the City can determine with the Washington Conservation District that the wetland is not a “Preserve” wetland. This delay occurs with existing applications when a wetland delineation is needed, and requests frequently include conditions that a delineation must be completed prior to obtaining a building permit. The DNR’s Model Ordinance does not include wetland setback requirements. The City can determine the setbacks and policies related to wetland setbacks that it will include in the ordinance. Minnesota Department of Natural Resources • Division of Ecological and Water Resources 1200 Warner Road, St. Paul, MN, 55106 Minnesota Department of Natural Resources Ecological and Water Resources Division Central Region Headquarters 1200 Warner Road, St Paul MN 55106 April 30, 2018 Sherri Buss, Scandia City Planning Consultant City of Scandia 14727 209th Street North Scandia, MN 55073 Re: DNR Conditional Approval of City of Scandia’s Shoreland Ordinance Sherri – Thank you for submitting the City of Scandia’s proposed shoreland ordinance to the DNR for conditional approval review. A shoreland ordinance is an important land use regulation that helps to protect surface water quality, near shore habitat and shoreland aesthetics of Minnesota’s public waters. The objective of this review is to evaluate the City’s ordinance for compliance with the state shoreland rules. State rules require DNR approval of shoreland ordinances and amendments for those ordinances to be effective. We have reviewed your proposed ordinance dated 4/4/2018 for compliance with the state shoreland rules (MR 6120.2500 – 6120.3900). The shoreland model ordinance translates these rules into local ordinance language and is used for evaluating proposed ordinances and amendments. We are pleased to inform you that the City’s proposed shoreland ordinance is substantially compliant with the statewide rules and is approved with the following conditions of approval: 1. Modify the City’s shoreland ordinance to reflect changes to provisions requested by DNR shown in red on the attached draft ordinance document. We have also commented in yellow on a number of provisions where intent is not clear. Please provide clarification on these sections prior to DNR’s final review and approval. 2. Return the attached “Ordinance Processing Checklist” and documents identified on the checklist. DNR grants flexibility to the following standards: 1. DNR will continue to grant flexibility for a height standard of 35 feet (approved by DNR in 2008). 2. DNR will grant flexibility to single and duplex lot area and lot width standards on Goose Lake (82-59P), a Natural Environment lake. This flexibility is being granted because the lot width and area standards for all other regulated public waters with shoreland classifications within the City are significantly larger than what is required under the shoreland standards. However, prior to this flexibility being Minnesota Department of Natural Resources • Division of Ecological and Water Resources 1200 Warner Road, St. Paul, MN, 55106 granted, the proposed lot width standards for duplex lots on Recreational Development lakes must be changed to meet the state standards (change duplex riparian lot width from 160 feet to 225 feet and duplex nonriparian lot width from 160 feet to 265 feet). 3. It is acceptable for the City to not count accessory dwelling units as density units because the City’s lot area and lot width standards for single lots are greater than what is required under the shoreland rules for duplex lot sizes. The following are the next steps for completing and receiving final DNR approval for your ordinance: 1. Revise the ordinance based on the conditions listed above under conditional approval. 2. The City adopts the ordinance revised according to the listed conditions. 3. Email the completed Ordinance Processing Checklist (attached) and the documents identified on the checklist within 10 days of the City’s decision to: • Jenifer Sorensen at jenifer.sorensen@state.mn.us and • ordinance.review.dnr@state.mn.us 4. DNR will review the ordinance adopted by the City for consistency with the above conditions. 5. If the adopted ordinance is consistent with the conditions of approval, DNR will send the City of Scandia a final approval letter. The ordinance will not be effective until DNR provides final approval. We appreciate your efforts to protect shoreland resources for all present and future Minnesotans. Area Hydrologist Jenifer Sorensen will continue to be available to help Scandia administer the ordinance and to consult with you on other water-related projects and plans, and their implementation. Sincerely, Jeanne Daniels MN Department of Natural Resources Region 3 South District Manager Ecological & Water Resources Division 1200 Warner Road St. Paul, MN 55106 651-380-2537 jeanne.daniels@state.mn.us CC: Neil Soltis, Scandia City Administrator Jenifer Sorensen, DNR Area Hydrologist Ordinance.review.dnr@state.mn.us Attachments: City of Scandia Shoreland Management Regulations Ordinance (Received 4/4/2018