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7.b3 amend Interim Ordinance for Solar moratorium Staff Report Date of Meeting: June 21, 2016 To: City Council From: Neil Soltis, Administrator Re: Extension of moratorium on applications for Solar Farms or Community Solar Gardens Background: Ordinance 170, which placed a prohibition on application for solar farms or solar gardens, was published on April 28, 2016, the effective date of that ordinance. That ordinance provided for an expiration date without further City Council action of three (3) months from the effective date of this Ordinance (July 28, 2016), or the ordinance could be repealed on an earlier date if the City Council determines that the requisite studies have been completed and adopted, and that appropriate evaluation and action, including any necessary revisions of the City Code or Comprehensive Plan, have been finalized and adopted by the City Council. The Planning Commission has reviewed and discussed the issues related to the performance standards and zoning districts for solar farms and community solar gardens at its May and June, 2016 meetings and has not completed the requisite study or made recommendations to the City Council regarding revisions to the City Code or Comprehensive Plan. At the June meeting the Planning Commission requested that the term of the moratorium be extended for one (1) additional month. Issue: Should the moratorium period for solar farm and solar garden app lication be extended by 30 days? Proposal Details: Since there have been no specific recommendations on changes to the ordinance and since any change to the solar ordinance will require a public hearing by the Planning Commission, there is not sufficient time to enact any changes without calling special meetings before the July 28, 2016 expiration date. Based on a normal meeting schedule, the Planning Commission would need to complete its recommended changes to the ordinance at the July 5 meeting in order to schedule a public hearing on the ordinance at any changes to the ordinance would have a public hearing by the Planning Commission at its August 2 meeting. The recommendation amendments would be considered by the City Council at its August 19 meeting. If the Council approves the amended ordinance, it would be effective upon publication (August 25th), and the City could resume accepting solar garden and solar farm applications on August 28. If the 30 day extension if not approved, the moratorium will expire on July 28. This will create a window for the submittal of applications based on the current development code language from July 29 until the publication of an ordinance approved by the Council which would take place on August 25th. Approval of the 30 day extension will eliminate the window for submittals based on the current development code. The other consideration is the current Public Utility regulations governing soar gardens and community solar gardens expire on September 15, 2016. For projects to be considered under the current rules the projects would need to be approved by outside parties, such as the City, in advance of the expiration date. If the 30-day extension is approve, the action will effectively eliminate the possibility of additional solar projects under Xcel’s current program since an application could not be submitted until August 28, 2016 which is past the deadline for submission for review by the Planning Commission for its September 6 meeting. It is not known what regulations will apply after that date.. At the June 7 Planning Commission meeting, the issue of repealing the solar ordinance was raised as an option to making modifications to the ordinance. There was no support on the Commission for eliminating solar farms or community solar gardens as conditional uses in the City. Options: 1. Approve the interim ordinance extending the moratorium by 30 days 2. Take no action and allow the moratorium period to expire Recommendation: Option 2 – Approving the extension will effectively eliminate the possibility of additional solar applications for the foreseeable future. The current ordinance does provide reasonable standards for applications and a reasonable degree of flexibility for the Planning Commission recommendations and City Council approval. CITY OF SCANDIA, MINNESOTA ORDINANCE NO. TO AMEND ORDINANCE 170, AN INTERIM ORDINANCE TO ESTABLISH A STUDY PERIOD AND MORATORIUM FOR A PERIOD OF UP TO THREE (3) MONTHS PROHIBITING THE ACCEPTANCE OF ANY APPLICATION FOR A SOLAR FARM OR SOLAR GARDEN PURSUANT TO MINN. STAT. §462.355, Subd. 4., TO EXTEND THE STUDY PERIOD AND MORATORIUM FOR ONE (1) ADDITIONAL MONTH. THE CITY COUNCIL OF THE CITY OF SCANDIA HEREBY ORDAINS: Section 1. Purpose, Intent and Background. The purpose and intent of this Ordinance is to prohibit: The filing or acceptance of any land use application for the use of any land located within the City as a solar farm or community solar garden. On June 16, 2015 the City Council approved Ordinance 162, amending the Development Code Chapter 1, Section 4.2, Definitions and Chapter 2, Section 4.0, Standards and Uses, in order to provide a regulatory framework for solar farms and community solar gardens. In review of the initial applications for these solar facilities, issues have arisen whereby the Council and the Planning Commission have determined that further research, study, and consideration are needed of the potential impacts that the use or occupancy of any land within the city for the purpose of a solar farm or community solar garden would have upon the health, safety and general welfare of the public. Section 2. Preliminary Findings. The City Council hereby makes the following preliminary findings to serve as the basis for the necessary study to be made during the moratorium period provided in this Ordinance. These preliminary findings serve as the reasons why it has been determined by the City Council that it is in the public interest for the City to conduct a study and so declare a moratorium by virtue of this Ordinance: 1. The City has determined that current regulations and official controls may not adequately address the effects of the use of land for solar farms or community solar gardens. For example, some of the City’s zoning regulations may be inadequate to allow for large solar farms and community solar gardens, as issues have arisen related to required setbacks, screening, and the presence of related interconnection equipment. The City has therefore determined that a study will be necessary to propose adequate additional regulations to assure that the impact and effect of the use of land for solar farms or community solar gardens are fully known and addressed, and appropriate regulations are adopted and conditions imposed so as to best minimize adverse impacts and effects as a result of such uses. 2. The City has not fully researched, analyzed or studied the impacts and effects of whether proposed solar farms and community solar garden uses will be injurious to the use and enjoyment of other property in the immediate vicinity of the solar projects, or whether the projects will substantially diminish and impair property values or scenic views, or will impede the normal and orderly development and improvement of surrounding property for uses permitted in the applicable zoning districts. 3. The Development Code is not sufficiently clear as to how the equipment utilized in a solar farm or community solar garden should be defined. For example, it is not clear whether associated equipment is an “essential service” to be utilized without additional permitting for a solar project, or whether such equipment is best permitted under the City’s telecommunications regulations. 4. The City additionally finds that there is a lack of clarity as to the issues of ownership of the equipment and transmission infrastructure, the utilization of rights-of-way, and identifying the proper permittee. 5. The City finds that zoning districts where solar farms or community solar gardens have been listed as conditional uses may not be eligible for that use due to other restrictions that have been placed on properties within those districts. 6. The public interest and public health, safety and welfare require that the City study, analyze and evaluate the impacts and effects of the use of any land for solar farms or community solar gardens. 7. This interim ordinance will ensure that any changes to the Development Code or Comprehensive Plan amendments will be carefully considered and evaluated and that all issues can be fully examined while protecting the City’s planning process and the public health, safety and welfare during the moratorium period. 8. Minnesota Statute §462.355, subd. 4 allows a municipality to adopt an interim ordinance for the purpose of considering adoption or amendment of official controls including ordinances establishing zoning, subdivision controls, site plan regulations, building codes and official maps. This interim ordinance may regulate, restrict, or prohibit any use, development or subdivision within the City for a period not to exceed one year from the date the ordinance is effective. Section 3. Authorization of Study. The City Council authorizes a land-use planning study for the continued purpose of reviewing the City’s Comprehensive Plan and Development Code to determine if various public concerns noted in this Interim Ordinance are being sufficiently addressed or if changes may be necessary in order to protect the health, safety and welfare of the public from potential negative impacts that may be associated with solar farms or community solar gardens. Section 4. Prohibition of Solar Farm/Community Solar Garden Applications. During the period of the moratorium imposed by this Interim Ordinance, the City shall conduct a study to help determine the regulatory controls which may need to be adopted or revised to protect the public’s health, safety and welfare related to the aforementioned purposes. In addition, the City shall study the Comprehensive Plan to determine whether an amendment to the Comprehensive Plan is necessary or appropriate, all after completion of any other studies ordered by the City Council and/or the Planning Commission. For the duration stated herein, and until the City has completed studies and adopted any ordinance or amendments to the City’s Development Code or Comprehensive Plan, the City shall not accept, issue or process any applications, permits, or otherwise allow the use of any land within the City for solar farms or community solar gardens Section 5. Duration and Termination. Ordinance 170 was published on April 28, 2016, the effective date of that ordinance, and provided for an expiration date without further City Council action of three (3) months from the effective date of this Ordinance, or may be repealed earlier if the City Council determines that the requisite studies have been completed and adopted, and that appropriate evaluation and action, including any necessary revisions of the City Code or Comprehensive Plan, have been finalized and adopted by the City Council. Section 6. Status of study. The Planning Commission has reviewed and discussed the issues related to the performance standards and zoning districts for solar farms and community solar gardens at its May and June, 2016 meetings and has not completed the requisite study and made recommendations regarding revisions to the City Code or Comprehensive Plan. Without a recommendation the Planning Commission cannot hold a public hearing on the proposed ordinance modification at its July meeting and, consequently, the moratorium will expire on July 28, 2016 which is in advance of the August Planning Commission meeting. The Planning Commission has requested that the term of the moratorium be extended for one (1) additional month. Section 7. Modification of the term. The termination of this interim ordinance shall expire without further City Council action four (4) months from the effective date of Ordinance 170 or may be repealed earlier if the City council determines that the requisite studies have been completed and adopted and that appropriate evaluation and action, including any necessary revisions of the City Code or Comprehensive Plan, have been finalized and adopted by the City Council. Section 8. Effective Date. This Ordinance shall take effect upon its adoption and publication. Passed and adopted by the City Council of the City of Scandia, Minnesota, this 21th day of June, 2016. Randall Simonson Mayor ATTEST: Neil Soltis City Administrator