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7.b)3) Staff Report-SolarOrdinance CouncilMemo 6 16 15Memorandum To: 444 Cedar Street, Suite 1500 Copies To: Saint Paul, MN 55101 651.292.4400 tkda.cam Project No TKDA Sherri Buss, RLA AICP, Routing: Memorandum To: Scandia City Council Reference: Copies To: Kristina Handt, City Administrator Brenda Eklund, City Clerk Project No From: Sherri Buss, RLA AICP, Routing: Planner Date: June 9. 2015 Background Proposed Ordinance — Solar Farms and Community Solar Gardens 15745.000 Property owners in Scandia have received inquiries regarding the potential to create solar energy systems such as solar farms and solar gardens that would be principal uses on their properties. This use is not currently permitted as a principal use in the Development Code. The Planning Commission has been working on this issue since April, including: The Planning Commission discussed solar uses at several meetings, and developed an ordinance that would permit solar farms and solar gardens in some zoning districts in Scandia with a Conditional Use Permit. The proposed Ordinance 162 is attached. Scandia's Comprehensive Plan supports the use of alternative energy systems. The proposed ordinance was reviewed by 4 private solar energy system businesses at the request of the Planning Commission. The Planning Commission held a public hearing on the proposed ordinance at its meeting on June 2. Duane Hebert, Novel Energy, submitted comments on the proposed performance standards in the ordinance. The Commission discussed his comments, and made two changes to the ordinance based on the comments. Staff received comments from Geronimo Energy after the Planning Commission meeting. The Geronimo comments were similar to the Novel Energy comments. The Commission recommended that the Council approve Ordinance No. 162, to add solar farms and solar gardens as uses to the Development Code at the meeting on June 2. Commissioner Jan Hogle submitted a comment requesting a minor change to the definition of "solar gardens." The comment was consistent with the content of the proposed ordinance and the Model Ordinance developed for Minnesota. Staff made the change as requested. Since the Planning Commission meeting, Commissioner Hogle has requested further changes to the proposed ordinance, noting that she is concerned that the City's definition of solar gardens match the description of community solar gardens used in the An employee owned company promoting affirmative action and equal opportunity Solar Ordinance Scandia City Council Page 2 June 11, 2015 State Statute that governs the State's incentive program for community solar gardens. She indicated that there is interest in developing a solar facility that may use the incentive program on her property, and she wants the ordinance to permit such solar facilities. This issue related to the definitions used in the ordinance is discussed below. Planning Commission Process and Key Elements of the Proposed Ordinance The Planning Commission consulted several sources to develop the proposed ordinance over the past several months: The Commission reviewed adopted ordinances from several communities in Minnesota to develop the draft, including ordinances from Chisago County and the City of Rosemount. The Planner obtained comments from City and County planners regarding elements of the ordinances that are working in other communities, and those they would recommend for improvement, for discussion by the Commission. The City Administrator and Planning Commission members attended a workshop on planning and zoning for solar facilities, including the Model Ordinance for Minnesota. The Commission requested that solar facility developers review and comment on the ordinance. The Planner contacted four developers to request the review. Two provided detailed comments that were used to develop the ordinance. Key elements of the Ordinance include the following: The ordinance permits solar farms and community solar gardens as primary uses in the Agriculture Core and General Rural Districts, and as accessory uses in the Agriculture Preserves District. The uses are prohibited in the Shoreland District, wetlands, and floodplains. The ordinance requires a CUP for both uses. The minimum lot size for the uses is five acres. Applicants for a CUP must submit detailed site plans and vertical sketch elevations for the proposed facilities. The City may require a payment in lieu of taxes to compensate the City for any prospective tax revenue that may be lost due to reclassification of land for this use. The ordinance includes performance standards, including setbacks, screening, and other standards to manage the potential impacts of the uses on other properties. The draft ordinance was developed based on all of the information noted above. The Commission recommended Ordinance 162 (attached) for Council approval at the June 2 meeting. Definitions Issue The ordinance that the Planning Commission recommended to the Council includes definitions of solar farms and community solar gardens. The definitions are very similar to those used in other City and Council ordinances, and the Model Ordinance developed for Minnesota. The definition of community solar gardens included in the recommended ordinance is the following: Community Solar Garden: A community solar energy system that generates electricity by means of a ground -mounted or building -integrated solar system and that is supplied to multiple community members or businesses residing or located off-site form the 7 Solar Ordinance Scandia City Council Page 3 June 11, 2015 location of the solar energy system under the provisions of Minnesota Statues 216B.1641 or successor statute. The definition of Community Solar in the Model Ordinance for Minnesota is the following: Community Solar: 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, consistent with Minn. Statutes 216B.1641 or success or statute. After the Planning Commission meeting, Planning Commissioner Hogle requested that the definition of Community Solar Garden be changed again to include additional text from the Minn. Statute 216B.1641 description of community solar gardens. For example, she wanted to replace the term "community members and businesses" with the word "subscribers," which is a term used in the statute, but not used in the Model Ordinance or other local ordinances. The Model Ordinance and others probably avoid this specialized terminology in favor the more common and descriptive phrase "community members or businesses, and to avoid needing to define "subscribers" in the ordinance. The Council can recommend changes to the ordinance that was recommended by the Planning Commission to change terminology, include additional descriptive language from the Statute, or other changes. Recommendation for Council Action Staff recommend that the Council approve the ordinance as recommended by the Planning Commission, with the definition of Community Solar Gardens that is included in the ordinance, or the similar definition included in the Model Ordinance, rather than making further additions to the definition based on the following rationale: Either of the definitions references the State Statute. A solar system proposed on Commissioner Hogle's property, or other properties in Scandia, that meets the State Statute definition for eligibility for the solar incentive program will also meet the City's definition of a community solar garden. The solar energy developers who reviewed the draft ordinance did not identify issues or problems with the definitions used, because the definitions are consistent with those used in other ordinances. They provided detailed comments on the proposed performance standards, but identified no concerns with the definitions. The additional text from the Statute is not necessary to provide an effective definition. Ordinance definitions should be as clear as possible to describe the proposed use so it is understandable to residents, businesses, or others using the ordinance. The reference to the statute is provided for those seeking further technical information. The City Administrator noted in correspondence with Commissioner Hogel that making changes to text approved by the Planning Commission at the request of individual members can become problematic. The Planning Commission's recommendation should be forwarded to the Council. Staff can make minor changes to clarify the language but the City cannot have members deciding via email to undo what was approved at an open meeting. The intent in sharing the draft with PC after the meeting was to make sure that the ordinance that went to the Council included all of the items as discussed and voted on, not to introduce new issues. I